(1) There is a "state 'on' indicator" for this State for a week if the commission determines, in accordance with the regulations of the U. S. Secretary of Labor, that for the period consisting of such week and the immediately preceding twelve weeks the rate of insured unemployment (not seasonally adjusted) under Chapters 27 through 41 of this title:

1. (a) Equaled or exceeded one hundred twenty percent of the average of such rates for the corresponding thirteen week period ending in each of the preceding two calendar years, and

2. (b) Equaled or exceeded five percent. With respect to benefits for weeks of unemployment beginning after July 1, 1977, the determination of whether there has been a "state 'on' or 'off' indicator" for this State beginning or ending any extended benefit period must be made under this section as if

   1. (i) paragraph (1) did not contain subparagraph (a); and
   2. (ii) the word "five" contained in subparagraph (b) thereof were "six" except that, notwithstanding any such provision of this section, any week for which there would otherwise be a "state 'on' indicator" for this State must continue to be such a week and shall not be determined to be a week for which there is a "state 'off' indicator" for this State.