Unemployment Insurance System Revitalization Act of 1979

Unemployment Insurance System Revitalization Act of 1979 - Title I: Unemployment Compensation Cost Equalization Program - Unemployment Compensation Cost Equalization Act of 1979 - Entitles, under the Social Security Act, any State, whose rates of insured unemployment is at least six percent to partial reimbursement on an ascending sliding scale of unemployment compensation costs incurred above a certain amount.

Title II: Federal-State Extended Unemployment Compensation Act of 1979 - Federal-State Extended Unemployment Compensation Act of 1979 - Replaces the Federal-State Extended Unemployment Compensation Act of 1970 with an extended unemployment benefit program which includes both regular extended benefits of up to 13 weeks and supplemental extended benefits of up to 13 additional weeks.

Directs that benefits be made available when unemployment exceeds specified trigger levels which are similar to those used under present law. Revises the method for determining unemployment rates for the purpose of such triggers.

Provides for 50 percent Federal funding of regular extended benefits and for full Federal funding of supplemental benefits.

Title III: Financing Amendments for Unemployment Compensation Programs - Authorizes the Secretary of Labor to extend the payback period of a State having an outstanding balance of loans and to permit a State to pay as little as 20 percent of the outstanding balance in a year upon determining that the State is taking sufficient steps to restore the fiscal soundness of its trust fund.

Waives any repayment requirement for States in which the insured unemployment rate exceeds a specified level.

Restricts the penalty tax in a State which defaults to only insured employers and provides that the rate of such tax shall remain constant even if the outstanding balance owed is not entirely repaid.