The Secretary shall participate in an arrangement for payment of benefits that are based on a combination of covered employment and employment that is covered under the unemployment insurance law of another state if:

(1) the United States Secretary of Labor, in consultation with the agency responsible for administration of that law, approves the arrangement as reasonably calculated to ensure prompt and full payment of compensation in cases in which there is a combination of employments; and

(2) the arrangement includes a provision to:

(i) apply a base period that is determined under the law of a single state;

(ii) avoid duplication of wages in computation of benefits that are based on the employments;

(iii) reimburse the Unemployment Insurance Fund for benefits that are based on employment that is covered under the unemployment insurance law of another state; and

(iv) use the Unemployment Insurance Fund as the Secretary finds to be fair and reasonable to reimburse the fund of another state for benefits that are based on covered employment.