Chap. 269.—An ACT to amend and re-enact Sections 3, 4, 5, 6, 7, 8, 9, and 14
of Chapter 1 of the Acts of the General Assembly of Vingigia, extra session,
1936-1937, approved December 18, 1936, as heretofore amended, and known,
designated and cited as the Virginia Unemployment Compensation Act, said
sections relating to benefits, benefit eligibility, conditions, disqualifications
for benefits, claims for benefits, contributions and determinations with respect
to whether an employing unit is an employer, period, election and termination
of employers’ coverage, unemployment compensation fund, and collection of
contributions, so as, among other purposes, to make changes therein, es-
pecially to change the disqualification provisions of the act, to make certain
changes relating to initial determinations and appeals, and the experience rating
provisions of the act, and to provide a new section designated as 13-A creating
a supplemental administrative fund from the interest collected on contributions.

(S B 116]
Approved March 25, 1946

Be it enacted by the General Assembly of Virginia:

1. That chapter one of the Acts of the General Assembly of Vir-
ginia, extra session, nineteen hundred thirty-six-nineteen hundred thirty-
seven, approved December eighteenth, nineteen hundred thirty-six, as
heretofore amended, and known, designated and cited.as the Virginia
Unemployment Compensation Act, be amended so as to contain a new
section designated and numbered as section thirteen-a, and that sections
three, four, five, six, seven, eight, nine, and fourteen thereof be amended
and re-enacted so as to read as follows:

Section 3. Benefits—(a) Payment of Benefits—Twenty-four
months after the first day of the first period with respect to which contri-
butions are required under this act, benefits shall become payable from the
fund. All benefits shall be paid through employment offices, in accord-
ance with such regulations as the Commission may prescribe.

(b) (1) Weekly benefit amount.——Commencing July first, nine-
teen hundred forty-six, an eligible individual’s weekly “benefit amount”
shall be the amount appearing in Column B in the “Benefit Table” in this
subsection on the line on which in Column A of such table, there ap-
pears the total wages for insured work earned by such individual in that
quarter of his base period in which such total wages were highest. Not-
withstanding any provisions of this section, whenever it appears that a
claimant will be denied benefits for the lack of sufficient “Qualifying
Earnings” as shown in Column C of the Benefit Table, he shall not for
that reason alone be denied benefits, but shall be entitled to have the
claim processed according to the line on such “Benefit Table” next above
the line in which his “Highest Quarter Earnings” are found.

(2) Weekly Benefit for Unemployment.—Each eligible individual
who is unemployed in any week shall be paid with respect to such week
a benefit in an amount equal to his weekly benefit amount less that part
of the wages (if any) payable to him with respect to such week which is in
excess of two dollars.

(3) Benefit rights of individuals shall be based solely upon the
benefit year as defined in subsection (d) of section two.

(c) Duration of Benefits—The maximum total amount of benefits
payable to any individual during any benefit year shall be determined
from the “Benefit Table” shown in this section, but in no case shall the
maximum exceed twenty times such individual’s weekly benefit amount.
Such determination shall be based only upon wages earned in insured
work during such individual’s base period. The Commission shall main-
tain a separate account for each individual who subsequent to January
first, nineteen hundred thirty-seven, earns wages in insured work. After
the expiration of each calendar quarter the Commission shall credit each
individual’s account with the wages earned by him in insured work in
said calendar quarter.
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Section 4. Benefit Eligibility Conditions—An unemployed indi-
vidual shall be eligible to receive benefits with respect to any week only if
the Commission finds that—

(a) He has registered for work and thereafter has continued to
report at an employment office in accordance with such regulations as
the Commission may prescribe, except that the Commission may, by
regulation, waive or alter either or both of the requirements of this sub-
section as to such types of cases or situations with respect to which it
finds that compliance with such requirements would be oppressive, or
would be inconsistent with the, purpose of this act.

(b) He has made a claim for benefits in accordance with the pro-
visions of section six (a) of this act.

(c) He is able to work, and 1s available for work.

(d) Prior to any week for which he claims benefits, he has been
unemployed during his benefit year for a waiting period of one week
with respect to which he received no benefits, but during which he was
eligible for benefits in all other respects and was not disqualified for
benefits under any provision of section five of this act. If the benefit year
ends during consecutive weeks of compensable unemployment for any
individual, such individual shall not be required to serve a new waiting
period before benefits shall accrue in the new benefit year and be payable.

(e) He has within his base period earned wages in employment for
employers equal to not less than the amount appearing in Column C of
the ‘Benefit Table’ appearing in section three on the line which extends
through Division D on which in Column B of said “Benefit Table” ap-
pears his weekly benefit amount.

Section 5. Disqualification for Benefits—An individual shall be
disqualified for benefits:

(a) For not less than one nor more than five consecutive weeks,
beginning with the first day after the disqualifying act occurs, and with-
out regard to the date the claim for benefits is filed, if it is determined by
the Commission that such individual is, during any week for which he
claims benefits, unemployed because he left work voluntarily without
good cause,

(b) For not less than one nor more than nine consecutive weeks,
beginning with the first day after the disqualifying act occurs, and with-
out regard to the date the claim for benefits is filed, if it 1s determined by
the Commission that such individual is, during any week for which he
claims benefits, unemployed because he has been discharged for miscon-
duct connected with his work.

(c) For not less than one nor more than five consecutive weeks, if
it is determined by the Commission that such individual has registered
for work or has made a claim for benefits and thereafter has failed, with-
out good cause, either to apply for available, suitable work when so di-
rected by the employment office or the Commission or to accept suitable
work when offered him, or to return to his customary self-employment, if
any, when so directed by the Commission. <A disqualification under this
subsection shall be imposed for weeks following the weeks during which
any disqualification may have been imposed under subsections (a) or (b)
of this section.

(1) In determining whether or not any work is suitable for an in-
dividual, the Commission shall consider the degree of risk involved to
his health, safety, and morals, his physical fitness and prior training, his
experience and prior earnings, his length of unemployment and prospects
for securing local work in his customary occupation, and the distance of
the available work from his residence.

(2) Notwithstanding any other provisions of this act, no work
shall be deemed suitable and benefits shall not be denied under this act
to any otherwise eligible individual for refusing to accept new work
under any of the following conditions: (A) if the position offered 1s
vacant due directly to a strike, lockout, or other labor dispute; (B) if
the wages, hours or other conditions of the work offered are substantially
less favorable to the individual than those prevailing for similar work in
the locality ; (C) if as a condition of being employed the individual would
be required to join a company union or to resign from or refrain from
joining any bona-fide labor organization.

(d) For any week with respect to which the Commission finds
that his total or partial unemployment is due to a stoppage of work which
exists because of a labor dispute at the factory, establishment, or other
premises at which he is or was last employed, provided that this subsec-
tion shall not apply if it 1s shown to the satisfaction of the Commission
that—

(1) He is not participating in or financing or directly interested
in the labor dispute which caused the stoppage of work ; and

(2) He does not belong to a grade or class of workers of which, 1m-
mediately before the commencement of the stoppage, there were mem-
bers employed at the premises at which the stoppage occurs, any of whom
are participating in or financing or directly interested in the dispute.

Provided, that 1f in any case separate branches of work which are
commonly conducted as separate businesses in separate premises are
conducted in separate departments of the same premises, each such de-
partment shall, for the purposes of this subsection, be deemed to be a sep-
arate factory, establishment, or other premises.

(e) For any week with respect to which or a part of which he has
received or 1s seeking readjustment allowances under Title V of the
Servicemen’s Readjustment Act of nineteen hundred forty-four, Public
Law three hundred forty-six, seventy-eight Congress or unemployment
benefits under an unemployment compensation law of any other state or
of the United States; provided, if the appropriate agency of such other
state or of the United States finally determines that he is not entitled to
such unemployment benefits, this disqualification shall not apply.

(f) When an individual is disqualified for benefits under subsec-
tions (a) or (b) or (c) or (d) of this section, the total amount of bene-
fits to which he may otherwise be entitled in accordance with section
three of this act shall be reduced by an amount equal to the product of
the number of weeks for which he shall be disqualified multiplied by his
weekly benefit amount.
Section 6. Claims for Benefits—(a) Filing.—Claims for benefits
shall be made in accordance with such regulations as the Commission
may prescribe. Each employer shall post and maintain printed state-
ments of such regulations in places readily accessible to individuals in
his service and shall make available to each such individual at the time he
becomes unemployed, a printed statement of such regulations. Such
printed statements shall be supplied by the Commission to each employer
without cost to him.

(b) Determinations and Decisions by a Deputy—Appeals There-
from.—A representative designated by the Commission, and hereinafter
referred to as a deputy, shall promptly examine the claim and. on the
basis of the facts found by him, shall either determine whether or not
such claim is valid, and if valid, the week with respect to which benefits
shall commence, the weekly benefit amount payable and the maximum
duration thereof, or shall refer such claim or any question involved therein
to any appeal tribunal or to the Commission, which tribunal or Commis-
sion shall make its determination with respect thereto in accordance with
the procedure described in subsection (c) of this section, except that in
any case in which the payment or denial of benefits will be determined
by the provisions of section five (d) of this act, the deputy shall prompt-
ly transmit his full finding of fact with respect to that subsection to the
Commission, which, on the basis of the evidence submitted and such
additional evidence as it may require, shall affirm, modify, or set aside
such findings of fact and transmit to the deputy a decision upon the issues
involved under that subsection. The deputy shall promptly notify the
claimant, and in any claim involving the application of section five of this
act he shall also notify the most recent employer of the claimant of the
determination or decision and the reasons therefor. The deputy shall
promptly notify the claimant of any decision made by him at any time
which in any manner denies benefits to the claimant for one or more
weeks. Unless the claimant or any such interested party, within five cal-
endar days after the delivery of such notification, or within seven calen-
dar days after such notification was mailed to his last known address, or
within ten days after such notification was mailed to the last known ad-
dress of an interstate claimant, files an appeal from such determination or
decision, such determination or decision shall be final and benefits shall be
paid or denied in accordance therewith. If an appeal is duly filed from any
such determination or decision, benefits with respect to the weeks involv-
ed in the appeal shall be paid only after a final determination of the issue
involved ; provided, that if an appeal tribunal affirms a determination of a
deputy, or the Commission affirms a decision of an appeal tribunal, allow-
ing benefits, such benefits shall be paid regardless of any appeal which
may thereafter be taken, except that should further appeal be taken bene-
fits so paid shall result in benefit wage charges to the accounts of the em-
ployer or employers under section seven (d) of this act only when and as
of the date on which, as a result of a further appeal, the courts finally
determine that the Commission should have awarded benefits to the
claimant or claimants involved in such appeal.

(c) Appeals—Appeals filed under subsection (b) of this section
shall be heard by an appeal tribunal appointed pursuant to subsection
(d) of this section. Such appeal tribunal, after affording the claimant
and any other proper parties thereto reasonable opportunity for a fair
hearing, shall have jurisdiction to consider all issues with respect to the
claim since the initial filing thereof, and shall affirm, set aside, reverse,
modify, or alter the findings of fact and decision of the Commission or
the deputy, and may enter such order or decision with respect to the claim
since the initial filing thereof as said appeal tribunal finds should have
been entered; provided, however, that no such order or decision shall
affect benefits already paid except in accordance with the provisions of
section sixteen (d) of the act. The parties shall be duly notified of such
tribunal’s decision, together with its reasons therefor, which shall be
deemed to be the final decision of the Commission, unless within ten
days after the date of notification or mailing of such decision, further
appeal is initiated pursuant to subsection (e) of this section. Any further
decision by an appeal tribunal involving whether an employing unit con-
stitutes an employer or whether services performed for or in connection
with the business of an employing unit constitute employment for such
employing unit from which no appeal is initiated shall be conclusive in
any subsequent judicial proceedings involving liability for contributions
by the Commission against any employing unit which was a party to the
proceedings had before such appeal tribunal.

(d) Appeal Tribunals—To hear and decide disputed claims, the
Commission shall establish one or more impartial appeal tribunals con-
sisting in each case of either a salaried examiner or a body consisting of
three members, one of whom shall be a salaried examiner, who shall
serve as chairman, one of whom shall be a representative of employers,
and the other of whom shall be a representative of employees; each of
the latter two members shall serve at the pleasure of the Commission and
be paid a fee of not more than ten dollars per day of active service on such
tribunal plus necessary expenses. No person shall participate on behalf
of the Commission in any case in which he is an interested party. The
Commission may designate alternates to serve in the absence or dis-
qualification of any member of an appeal tribunal. The chairman shall
act alone in the absence or disqualification of any other member and his
alternates. In no case shall the hearings proceed unless the chairman of
the appeal tribunal is present.

(e) Commission Review.—The Commission may on its own motion
afhrm, modify, or set aside any decision of an appeal tribunal on the basis
of the evidence previously submitted in such case, or direct the taking
of additional evidence, or shall permit any of the parties to such decision
to initiate further appeals before it. The Commission may remove to it-
self or transfer to another appeal tribunal the proceedings on any claim
pending before an appeal tribunal. Any proceeding so removed to the
Commission shall be heard in accordance with the requirements of sub-
section (c) of this section. The Commission shall promptly notify the
interested parties of its findings and decision.

Any decision of the Commission, upon a hearing on appeal, shall
become final ten days after the date of notification or mailing thereof,
and judicial review thereof shall be permitted the claimant or any inter-
ested party claiming to be aggrieved thereby. The Commission shall be
deemed to be a party to any judicial action involving any such decision,
and shall be represented in any such judicial action by the Attorney
General. Any such decision by the Commission involving whether an
employing unit constitutes an employer or whether services performed for
or in connection with business of an employing unit constitute employ-
ment for such employing unit from which no judicial review is had pur-
suant to subsection (h) of this section shall be conclusive in any sub-
sequent judicial proceedings involving liability for contributions by the
Commission against any employing unit which was a party to the pro-
ceedings had before the Commission.

The Commissioner appointed pursuant to section ten (10) of this
act, shall have the power to designate a Special Examiner to hear appeals
to the Commission under this subsection, and may authorize and em-
power such special examiner to decide any such appeal so heard, in
which event the decision of such special examiner shall be the final de-
cision of the Commission under this subsection, subject to judicial re-
view under subsection (h) of this section.

(f{) Procedure—The manner in which disputed claims shall be
presented, the reports thereon required from the claimant and from em-
ployers, and the conduct of hearings and appeals before any deputy, ap-
peal tribunal or the Commission shall be in accordance with regulations
prescribed by the Commission for determining the rights of the parties,
whether or not such regulations conform to common law or statutory
rules of evidence and other technical rules of procedure. A full and
complete record shall be kept of all proceedings in connection with a
disputed claim. All testimony at any hearing upon a disputed claim
shall be recorded, but need not be transcribed unless the disputed claim
is further appealed. ;

(g) Witness Fees.—Witness subpoenaed pursuant to this section
shall be allowed fees at a rate fixed by the Commission. Such fees shall
be deemed a part of the expense of administering this act.

(h) Judicial Review.—Within ten days after the decision of the
Commission upon a hearing pursuant to subsection (e) of this section has
become final, any party aggrieved thereby may secure judicial review
thereof by commencing an action in the circuit court of the county or in
the corporation or hustings court of the city, or if the city has no cor-
poration or hustings court, then in the circuit court of the city, or if no
circuit court, then in the circuit court of the county in which such city is
geographically located in which the individual who filed the claim was
last employed, against the Commission for the review of its decision, in
which action any other party to the proceedings before the Commission
shall be made a defendant. In such action, a petition which need not be
verified, but which shall state the grounds upon which a review is sought,
shall be served upon a member of the Commission or upon such person
as the Commission may designate and such service shall be deemed com-
pleted service on all parties, but there shall be left with the party so
served as many copies of the petition as there are defendants and the
Commission shall forthwith mail one such copy to each such defendant.
With its answer, the Commission shall certify and file with said court
all documents and papers and a transcript of all testimony taken in the
matter, together with its findings of fact and decision therein. The Com-
Mission may also, in its discretion, certify to such court questions of law
involved in any decision by it. In any judicial proceedings under this
‘section, the findings of the Commission as to the facts, if supported by
evidence and in the absence of fraud, shall be conclusive, and the juris-
diction of said court shall be confined to questions of law. Such actions
and the questions so certified, shall be heard in a summary manner at the
earliest possible date. An appeal may be taken from the decision of such
court to the Supreme Court of Appeals in conformity with general law
governing appeals in equity cases, and from any such decision involving
the provisions of sections four or five of this act or whether an employ-
ing unit constitutes an employer or whether services performed for or in
connection with the business of an employing unit constitute employment
for such employing unit, the Supreme Court of Appeals shall have juris-
diction to review such decision regardless of the amount involved in any
claim for benefits. It shall not be necessary, in any proceeding under
this section, to enter exceptions to the rulings of the Commission or an
appeal tribunal, and no bond shall be required upon an appeal to any
court. Upon the final determination of such judicial proceeding, the
Commission shall enter an order in accordance with such determination.
A petition for judicial review shall operate as a supersedeas.

(1) Re-determination of Claims.—Notwithstanding any other pro-
visions of this act, the Commission may, at any time within one year from
the date the deputy’s determination becomes final pursuant to section six
(b) of this act, re-determine any claim decided by a deputy respecting
which no appeal was taken by the claimant from the determination of such
deputy. Notice of any such redetermination shall be given promptly to
the interested parties, and an appeal may be had from such redetermina-
tion within the time and in the manner prescribed for an appeal from
any original determination, and if no such appeal is filed such redeterm-
ination shall be final. Any redetermination hereunder shall be limited
to claims concerning which an error in computation has occurred, or
that wages of the claimant pertinent to such determination but not con-
sidered in connection therewith have been newly discovered.

(j) Board of Review.—The Commission, in its discretion, is here-
by authorized to appoint a Board of Review, consisting of three members,
one of whom shall be designated chairman, for a term of six years, except
that the terms of the members first taking office shall be two, four, and
six years, respectively, as designated by the Commission at the time of
the appointment, and except that vacancies shall be filled by appointment
by the Commission for the unexpired term. During his term of member-
ship on the Board of Review no member shall serve as an officer or com-
mittee member of any political organization. The members of the board
shall be paid a compensation to be determined by the Commission. The
Commission shall furnish the board such stenographic and clerical assist-
ance as the board may require. All compensation of the members of the
board and all necessary expenses for the operation thereof shall be paid
out of the administrative fund provided for in section thirteen of this act.
The Commission may at any time, after notice and hearing, remove any
member for cause. The Commission may, after thirty days’ notice to the
members of said board, and upon a finding that said board is no longer
needed, abolish the same. Said board of review shall meet upon the call of
the chairman and shall have the same powers and perform the same func-
tions vested in the Commission in this act for review of decisions of an
appeal tribunal, including the power to administer oaths and affirmations,
take depositions, certify to official acts, and issue subpoenas to compel
the attendance of witnesses and the production of books, papers, cor-
respondence, memoranda, and other records deemed necessary as evi-
dence in connection with disputed claims. The board of review may
hold its hearings in the county or city where the claimant was last em-
ployed, except that hearings involving the provisions of section five (d) of
this act shall be held in the county or city where the claimant was last
employed, and when the same or substantially similar evidence 1s relevant
and material to matters in issue in claims by more than one individual or
in claims by a single individual with respect to two or more weeks of
unemployment, the same time and place for considering each such claim
may be fixed, hearings thereon jointly conducted, and a single record of
the proceedings made. The Commission may issue such regulations as
it deems necessary for the procedure of the board of review in the con-
duct of its hearings. During the time said board of review is organized
under authority for the Commission, the Commission shall have no juris-
diction under subsection (e) of this section. Any decision of the board
of review shall become final ten days after the date of notification or mail-
ing thereof and judicial review thereof shall be permitted the claimant,
the Commission, or any interested party claiming to be aggrieved thereby,
and in any judicial action involving any such decision the Commission
shall be represented by the Attorney General. Any decision of the board
of review from which no judicial review is sought within the time pre-
scribed in subsection (h) of this section shall be conclusive against any
party to the hearing before said board and the Commission in any sub-
sequent judicial proceedings involving liability for contributions under
this act.

Within the time specified in subsection (h) of this section, the
Commission, or any party to the proceedings before the board of review.
may obtain judicial review thereof by filing in the circuit court of the
county or in the corporation court or hustings court of the city, or if the
city has no corporation court or hustings court, then in the circuit court
of the city, or if the city has no circuit court, then in the circuit court of
the county in which such city is geographically located, in which the in-
dividual who filed the claim was last employed, in the State of Virginia.
a petition for review of such decision and in any such proceeding anv
other party to the proceeding shall be made a party respondent. The
Commission shall be deemed to be a party to any such proceeding. The
petition nced not be verifed. A copy of such petition shall be served
upon the Commission and each party to the proceeding had before the
board of review at least thirty days prior to the placing of said petition
upon the docket. The mailing of a copy of such petition to each party
thereto at his last known address shall be sufficient service thereof. The
Commission shall file along with its petition or answer a certified copy
of the record of the case, including all documents and papers and a tran-
script of all testimony taken in the matter, together with the board of
review’s findings, conclusions and decision therein. In any proceeding
under this subsection the findings of the board of review as to the facts, if
supported by the evidence and in the absence of fraud, shall be conclusive
and the jurisdiction of the said court shall be confined to questions of
law. The court may order additional evidence to be taken by the board
of review, which said additional evidence, findings of fact or conclusions,
together with the additional transcript of the record, shall be certified by
the chairman of the board of review and filed by him with the court.
Such petition for review shall be heard in a summary manner and shall
have preference over all other cases on the docket, except cases in which
the Commonwealth is a party. An appeal may be taken from the de-
cision of such court to the Supreme Court of Appeals, in conformity
with general law governing appeals in equity cases, and from any such
decision involving the provisions of sections four or five of this act or
whether an employing unit constitutes an employer or whether services
performed for or in connection with the business of an employing unit
constitute employment for such employing unit, the Supreme Court of
Appeals shall have jurisdiction to review such decision regardless of the
amount involved in any claim for benefits. It shall not be necessary, in
any proceeding before the board of review, to enter exceptions to the
ruling of the board of review, and no bond shall be required upon any
appeal to any court. Upon the final determination of such judicial pro-
ceedings, the board of review shall enter an order in accordance with such
determination. <A petition for judicial review shall operate as a super-
sedeas.

Section 7. Contributions and determinations with respect to wheth-
er an employing unit is an employer. (a) The Commission may, upon
its own motion or upon application of an employing unit, and after not
less than ten days’ notice in writing mailed to the last known address of
such employing unit and an opportunity for hearing, make findings of
fact, and on the basis thereof, determination with respect to whether an
employing unit constitutes an employer and whether services performed
for or in connection with the business of an employing unit constitute
>mployment for such employing unit. All testimony at any hearing pur-
suant to this subsection shall be recorded but need not be transcribed un-
ess a petition for judicial review from such determination ts filed in the
nanner herein prescribed. At such hearing the interests of the Common-
vealth shall be represented by the Attorney General. Judicial review
at any such determination may be had within thirty days after the mail-
ng of notice of such findings and determination to the employing unit or,
n the absence of mailing, within thirty days after the delivery of such
10tice and determination, in either of the courts of the City of Richmond,
is set forth 1n section fifty-nine hundred twelve of the Code of Virginia,
except the Hustings Court of the City of Richmond, part two. Such
judicial review shall be commenced by the filing of a petition, which need
not be verified, but which shall state the grounds upon which a review is
sought. Service of two copies of such petition upon the Commissioner
shall be deemed completed service and such petition shall be filed with
the clerk of the court within five days after service thereof. With its
answer the Commission shall certify and file with said court all docu-
ments and papers and a transcript of all testimony taken in the matter,
together with its findings of fact and decision therein. In any judicial
proceedings under this section, the findings of the Commission as to the
facts, if supported by the evidence and in the absence of fraud, shall be
conclusive, and the jurisdiction of said court shall be confined to questions
of law. Such actions shall be given preference on the docket over all
other cases except cases to which the Commonwealth is a party. An ap-
peal may be taken from the decision of such court to the Supreme Court
of Appeals, in conformity with general law governing appeals in equity
cases, and without regard to the amount involved. In any such pro-
ceedings for judicial review, the Commission shall be represented by the
Attorney General. A determination by the Commission from which no
judicial review has been had shall be conclusive in any subsequent judi-
cial proceeding involving liability for contributions against said employing
unit or its successor under the provisions of sections two (i) (2) and
fourteen (c) (1) of this act.

(b) Every employer shall, on or before January thirty-first, nine-
teen hundred thirty-seven, or in the event the time be extended for filing
the return of the tax imposed by Title IX of the Social Security Act for
the taxable year nineteen hundred thirty-six, then before the expiration
of such extension, pay to the Commission with respect to employment (as
defined in section two (j) of this act) during the year beginning Janu-
ary first, nineteen hundred thirty-six a tax equal to nine-tenths of one
(0.9%) per centum of wages paid and payable by him, regardless of the
time payment, with respect to employment during the calendar year nine-
teen hundred thirty-six.

It is expressly provided that, any other provision or provisions in
this act to the contrary notwithstanding, this act shall not be construed
as imposing upon any employer a tax with respect to employment during
the calendar year nineteen hundred thirty-six greater in amount than such
employer shall be entitled to have allowed as a credit upon the taxes 1m-
posed by the Social Security Act with respect to such employment ; pro-
vided. however, that the foregoing shall not be construed as relieving
any emplover from liability for any tax imposed by this act where there
has been a failure to obtain a credit on said Federal tax due to any act
or fault of commission or omission on the part of the said employer.

(c) On and after January first, nineteen hundred thirty-seven,
taxes, as hereinafter set forth in this section, shall accrue and become
payable by each employer for each calendar year in which he is subject
to this act, with respect to wages payable for employment (as defined in
section two (j) of this act) occurring in such calendar year. Such taxes
shall become due and be paid by each employer to the Commission for the
fund in accordance with such regulations as the Commission may pre-
scribe. The Commission is hereby expressly authorized to require filing
of payroll and contribution reports and payment of the taxes aforesaid
in monthly, quarterly, semi-annual or annual payments as shall be de-
termined by the Commission, but the aggregate amount of taxes shall be
fully paid to the Commission on or before January thirty-first of each
year next succeeding the year with respect to employment during which
year such taxes are imposed, or in the event the time be extended for
filing the return of the taxes imposed by Title IX of the Social Security
Act for the year for which such taxes are'imposed, then before the ex-
piration of such extension.

If any employing unit fails to file with the Commission any report
which the Commission deems necessary for the effective administration
of this act within thirty days after the Commission requires the same by
written notice mailed to the last known address of such employing unit,
the Commission may determine on the basis of such information as it
may have whether such employing unit is an employer, unless such de-
termination has already been made, and may assess the amount of con-
tribution due from such employer and shall give written notice of such
determination and assessment to such employer. Such determination and
assessment shall be final unless such employer shall, within twenty days
after the mailing to the employer at his last known address or other
service of the notice of such determination and/or assessment, apply to
the Commission for a review of such determination and assessment or un-
less the Commission shall, of its own motion, set aside, reduce or in-
crease the same.

Each employer shall pay taxes equal to the following percentages
of wages payable by him with respect to employment:

(1) One and eight-tenths (1.8%) per centum with respect to em-
ployment during the calendar year nineteen hundred thirty-seven ;

(2) Except as otherwise provided in subsection (d) of this section
of this act, two and seven-tenths (2.7% ) per centum with respect to em-
ployment during the calendar year nineteen hundred thirty-eight and
during each succeeding calendar year, after December thirty-first, nine-
teen hundred thirty-nine, wages payable beyond the last pay period in
December shall be considered as wages earned and payable in the first
pay period of the succeeding year, and included in reports required for
the first reporting period of such year.

(3) If the “Federal Unemployment Tax Act” is at any time amend-
ed to permit a higher maximum rate of credit against the Federal tax
now levied under section sixteen hundred of the Federal Internal Rev-
enue Code, or that may hereafter be levied under any subsequent amend-
ment, or amendments thereto, than is now permitted under section six-
teen hundred one (c) of said Federal Internal Revenue Code, to an
employer with respect to any State unemployment compensation law
whose standard contribution rate on payroll under said law is more
than two and seven-tenths (2.7% ) per centum, in that event the standard
contribution rate as to all employers under this act shall, by commission
rule promulgated under section eleven (b) of this act, be increased from
two and seven-tenths (2.7%) per centum on wages to that percentage
on wages which corresponds to the higher maximum rate of credit thus
permitted against the Federal unemployment tax ; and such increase shall
become effective on the same date as such higher maximum rate of
credit becomes permissible under such Federal amendment.

(4) If section three hundred three (a) (5) of Title III of the So-
cial Security Act and section sixteen hundred three (a) (4) of the
Internal Revenue Code are amended to permit a state agency to use, in
financing administrative expenditures incurred in carrying out its employ-
ment security functions, some part of the monies collected or to be col-
lected under the state unemployment compensation law, in partial or
complete substitution for grants under said Title III, in that event this
act shall, by Commission proclamation and rules to be issued with the
Governor’s approval, be modified in the manner and to the extent and
within the limits necessary to permit such use by the Commission under
this act; and such modifications shall become effective on the same date
as such use becomes permissible under such Federal amendments.

(5) Ifthe Federal Unemployment Tax Act is at any time amended
so as to increase the rate of excise tax each employer shall pay with re-
spect to having individuals in his employ, the Commission may by rules
promulgated under section eleven (b) of this act, increase the rate of
contributions under this act to the rate which corresponds to the highest
maximum rate of credit permitted against such higher Federal unem-
ployment excise tax ; and such increase shall become effective on the same
date as such higher rate of Federal unemployment excise tax becomes
effective.

(d) Taxes imposed by this act shall not be deducted, in whole or
in part, from the wages of individuals in the employ of any employer.
In the payment of any taxes, a fractional part of a cent shall be disre-
garded, unless it amounts to one-half cent or more in which case it shall
be increased to one cent.

(e) For each calendar year commencing after December thirty-
first, nineteen hundred forty, the contribution rate of each employer,
with respect to whom during the most recent three consecutive completed
calendar years, throughout which any individual in his employ could have
received benefits, if eligible, shall be computed as hereinafter provided.
For the purposes of this subsection the payrolls, contributions and bene-
fit experience of all employers subject to the provisions of the Railroad
Unemployment Insurance Act shall be excluded in all computations
to determine contribution rates. The Commission shall notify each such
employer of his contribution rate for such calendar year not later than
fifteen days prior to the due date of the first contribution with respect to
employment in such calendar year, but the failure of any such employer
to receive such notice shall not relieve him from liability for such con-
tribution.

(1) When, in any benefit year, an individual is first paid benefits
for total or partial unemployment, his wages during his base period shall
be termed the individual’s “benefit wage”, and shall be treated for the pur-
poses of this subsection as though they had been paid by his employer
or employers in the calendar year in which such benefits are first paid.
For the purposes of this subsection, benefit wages shall include only the
first nine hundred sixty dollars ($960.00) of wages received by any one
individual from any one employer in such individual base period.

(2) The employer’s benefit wages for a given calendar year shall
be the total of the benefit wages of all his employees, or former em-
ployees, which become benefit wages during such calendar year.

(3) The “benefit wage ratio” of each employer shall be the per-
centage equal to the total of the benefit wages of his employees or for-
mer employees, allocated as provided in subparagraph (1) to the most
recent three consecutive completed calendar years, divided by the total
of his annual payrolls (on which contributions have been paid on or
before January thirty-first of the calendar year with respect to which
his contribution rate is being computed) for the same three years.

(+) For any calendar year the “State experience factor” shall be
the total benefits paid from the fund during the most recent three con-
secutive completed calendar years, less all amounts credited to the fund
in such years other than employers’ contributions, divided by the total
of the benefit wages of all employers during the same three consecutive
completed calendar years. In such computation any fraction shall be
adjusted to the nearest multiple of one per centum (1%).

(5) Subject to the provision of paragraph six of this subsection,
the contribution rate for each employer shall be the percentage at the
lowest numbered column in the following table, in which on the same
line as the current state experience factor, there appears a percentage
equal to or in excess of such employer’s benefit wage ratio. If no per-
centage equal to or in excess of such employer’s benefit wage ratio ap-
pears on said line, then such employer’s contribution rate shall be two
and seven-tenths (2.7%) per centum.

(6) At the end of the calendar year, starting on December thirty-
first. nineteen hundred forty, the balance which shall stand to the credit
of the account of the Commonwealth of Virginia in the Unemployment
Trust Fund in the Treasury of the United States, including amounts with-
drawn therefrom but not expended at December thirty-first, and exclud-
ing any amounts transferable to the Railroad Unemployment Compensa-
tion Fund, shall be compared with the total amount of payrolls upon
which contributions were paid, in the calendar year in which contributions
were paid on the largest amount of payrolls, disregarding, however, the
amount of payrolls upon which contributions were paid in any calendar
year more than nine years prior to the most recently completed calendar
year.
If such balance is less than four and one-half per centum (412%) of
the largest total amount of payrolls upon which such contributions were
paid in any calendar year, the amount by which such balance is less than
such four and one-half (442%) per centum shall be divided by the sum
of the payrolls of all employers upon which contributions were paid in
the most recently completed calendar year and the quotient adjusted to
the nearest multiple of one-tenth of one (1/10%) per centum. The
contribution rate of each employer computed or determined in accordance
with the previous provisions of this subsection shall be increased by such
adjusted quotient, provided that no employer’s contribution rate shall
thereby be increased to a total of more than two and seven-tenths (2.7% )
per centum.

(7) As used in this subsection (e) the term “contribution rate”
means the tax or percentage of wages payable by an employer with re-
spect to employment.

TABLE
When the Column Column Column Column
State
experience If the employer’s benefit wage ratio does
factor 1s not exceed:

1% or less 100% 150% 200% 250%
2 50 75 100 125
3 33 50 66 83
4 25 38 50 63
5 20 30 40 50
6 17 25 34 42
7 14 21 29 36
8 13 19 25 31
9 1] 16 22 28
10 10 15 20 25
]1 9 14 18 23
12 8 13 17 21
13 8 12 15 19
14 7 11 14 18
15 7 10 13 17
16 6 9 12 16
17 6 9 12 15
18 6 8 11 14
19 5 8 11 13
20 5 8 10 13
21 5 7 10 12
22 5 7 9 11
23 4 7 9 11
24 4 6 8 10
25 + 6 3 10

The employer’s contribution rate shall be:
1.0% 1.5% 2.0% 2.5%

(8) Whenever any employing unit in any manner succeeds to or
acquires the organization, trade, separate establishment or business, or
substantially all the assets thereof, (whether or not the succeeding or ac-
quiring unit was an “employing unit”, as that term is defined in section
two of this act, prior to such acquisition) of another which at the time
of such acquisition was an employer subject to this act, and such pred-
ecessor employing unit has executed and filed with the Commission on a
form approved by the Commission a waiver relinquishing all rights to
prior experience for the purpose of obtaining a reduced rate and re-
questing the Commission to permit such experience to inure to the bene-
fit of the successor employing unit, upon request of the successor em-
ploying unit, the experience record for rate computation purposes of the
predecessor shall thereupon be deemed the experience record of the
successor as of the first day of January of the calendar year in which
said waiver is filed with the Commission prior to March fifteenth of such
year. Such successor, unless already an employer subject to this act,
shall, during the remainder of the current calendar year upon the filing
of the waiver herein mentioned not later than March fifteenth of the
succeeding calendar year, be subject to the rate of taxation of the pred-
ecessor, but if such successor is at the time of such transfer an employer
subject to this act, such successor’s rate of tax to which it 1s then subject
shall remain the same until the next determination of rates under this
section for all employers. The experience of the predecessor and the
successor shall be deemed to be the experience of a single employing unit
for the purpose of determining the rate of contributions for the successor
as of the first day of January of any calendar year subsequent to the
calendar year in which the acquisition occurred in which the waiver
herein required, together with such information regarding the prior ex-
perience of the seller as may be required by the Commission, is filed not
later than March fifteenth of such year.

(9) Notwithstanding any other provisions of this section, the con-
tribution rate of any employer which first became an employer as of
January first, nineteen hundred forty, or January first, nineteen hun-
dred forty-one, with respect to whom during the thirty-six month period
immediately preceding the first day of any calendar quarter throughout
which any individual in his employ could have received benefits, if eligi-
ble, shall be computed as provided in this section, provided, however, no
contribution rate of less than two and seven-tenths per centum shall be
allowed any such employer except upon wages earned in his employment
subsequent to the last day of such thirty-six month period.

Section 8. Period, Election, and Termination of Employer’s Cov-
erage.—(a) Any employing unit which 1s or becomes an employer
subject to this act within any calendar year shall be subject to this act
during the whole of such calendar year.

(b) Except as otherwise provided in this subsection and subsection
(c) of this section, an employing unit shall cease to be an employer sub-
ject to this act as of the first day of January of any calendar year, only
if it files with the Commission, prior to the second day of February of
such year, a written application for termination of coverage and the
Commission finds that there were no twenty different days, each day
being in a different week within the preceding calendar year, within
which such employing unit employed eight or more individuals in em-
ployment subject to this act. For the purpose of this subsection, the two
or more employing units mentioned in paragraphs (3) or (4) of section
two (i) shall be treated as a single employing unit. On and after Janu-
ary first. nineteen hundred forty, the provisions of this subsection shall
not apply to any employing unit which is an organization exempt from
income tax under section one hundred one of the Federal Internal Reve-
nue Code.

Any employing unit which is an employer at the end of any calendar
year solely by acquisition (during said year) as provided in paragraph
two of section two (i) shall cease to be an employer subject to this act
as of January first of the succeeding calendar year without the filing of
the written application required of all other employers, provided the
Commission finds that there were no twenty different days, each day
being in a different week within the preceding calendar year, within
which such employing unit and its predecessors in title (treated as a
single employing unit) employed eight or more individuals subject to
this act.

After December thirty-first, nineteen hundred forty-five, when-
ever any employer shall, during any completed calendar year, fail to be
subject to the payment of contributions solely because no individual
has earned wages from such employer during such calendar year, the
Commission may, after not less than thirty days’ notice in writing mailed
to such employer at his last known address of its intention so to do,
cause such employer to cease to be an employer subject to this act as of
the first day of January of the calendar year in which such notice is given.

(c) (1) Any employing unit, not otherwise subject to this act,
which files with the Commission its written election to become an employ-
er subject hereto for not less than two calendar years, shall, with the writ-
ten approval of such election by the Commission, become an employer sub-
ject hereto to the same extent as all other employers, as of January first
of the calendar year in which such election 1s approved, and shall cease
to be subject hereto as of January first of any calendar year subsequent
to such two calendar years, if prior to the second day of the next suc-
ceeding February, it has filed with the Commission a written notice to
that effect; provided, however, that the Commission may, on its own
motion, and after ten days’ written notice mailed to such employing unit
at its last known address, without regard to said two year calendar period,
revoke such written approval of such election and, as of the date of such
revocation, such employing unit shall cease to be an employer.

(2) Any employing unit for which services that do not constitute
employment as defined in this act are performed, may file with the Com-
mission a written election that all such services performed by individuals
in its employ in one or more distinct establishments or places of business
shall be deemed to constitute employment for all the purposes of this
act for not less than two calendar years. Upon the written approval of
such election by the Commission, such services shall be deemed to con-
stitute employment subject to this act from and after the date stated in
such approval. Such services shall cease to be deemed employment sub-
ject thereto as of January first of any calendar year subsequent to such
two calendar years, only if at least thirty days prior to such first day of
January such employing unit has filed with the Commission a written
notice to that effect.

Section 9. Unemployment compensation fund.—There is hereby
established as a special fund in the State treasury an unemployment
compensation fund. The Comptroller shall maintain within the fund two
separate accounts: (1) a clearing account, and (2) a benefit account.

(a) All contributions, together with any interest collected thereon
prior to July first, nineteen hundred forty-six, and other moneys re-
quired by this act to be paid to the unemployment compensation fund
and collected by the Commission, and any interest or earnings upon any
moneys or property belonging to the fund shall, immediately upon col-
lection, be paid into the State treasury and credited to the clearing ac-
count. Any interest collected on contributions from July first, nineteen
hundred forty-six, shall be paid into the special unemployment com-
pensation administration fund created by section thirteen A. Refunds,
except for interest collected from July first, nineteen hundred forty-six,
payable pursuant to section fourteen of this act, may be paid from the
clearing account. After clearance thereof, all other moneys in the clearing
account shall immediately be paid over to the Secretary of the Treasury
of the United States, to the credit of the unemployment trust fund estab-
lished by the Social Security Act, to be held for the State upon the terms
and conditions provided in the Social Security Act.

(b) Moneys shall be requisitioned from this State’s account in the
unemployment trust fund solely for the payment of benefits and in ac-
cordance with regulations prescribed by the Commission. The Commis-
sion shall, from time to time, requisition from the unemployment trust
fund such amounts, not exceeding the amount standing to its credit there-
in, as it deems necessary for the payment of benefits for a reasonable
future period. Upon receipt thereof, the same shall be paid into the State
treasury to the credit of the benefit account, and shall be used solely
to pay the benefits provided for in this act. Any balance of moneys req-
ulsitioned from the unemployment trust fund which remains unclaimed
or unpaid in the benefit account after the expiration of the period for
which such sums were requisitioned shall either be deducted from esti-
mates for, and may be utilized for the payment of, benefits during suc-
ceeding periods, or, in the discretion of the Commission, shall be paid
over to the Secretary of the Treasury of the United States, as provided
in subsection (a) of this section. All benefits shall be paid through pub-
lic employment offices provided for in this act.

(c) All moneys paid into the State treasury and credited to the
unemployment compensation fund are hereby appropriated to the Com-
mission for the purposes hereinabove set forth.

(d) All payments and disbursements from the unemployment com-
pensation fund shall be made by the State Treasurer upon warrants of
the Comptroller issued upon vouchers signed by some member of the
Commission designated by the Commission for such purpose, or by such
other person or persons as the Commission may designate for such pur-
pose.

(e) Notwithstanding any requirements of the foregoing subsections
of this section, the Commission shall, within thirty days after the close
of this session of the Legislature, authorize and direct the Secretary of
the Treasury of the United States to transfer from this State’s account
in the Unemployment Trust Fund, established and maintained pursuant
to section nine hundred four of the Social Security Act as amended, to
the Railroad Unemployment Insurance Account, established and main-
tained pursuant to section ten of the Railroad Unemployment Insurance
Act, an amount hereinafter referred to as the preliminary amount; and
shall, prior to thirty days after the close of the present session of the
General Assembly, authorize and direct the Secretary of the Treasury of
the United States to transfer from this State’s account in said Unemploy-
ment Trust Fund to said Railroad Unemployment Insurance Account
an additional amount, hereinafter referred to as the liquidating amount.
The Social Security Board shall determine both such amounts after con-
sultation with the Commission and the Railroad Retirement Board.
The preliminary amount shall consist of that proportion of the balance in
the Unemployment Compensation Fund as of June thirtieth, nineteen
hundred thirty-nine, as the total amount of contributions collected from
employers (as defined by section one (a) of the Railroad Unemployment
Insurance Act) and credited to the Unemployment Compensation Fund
bears to all contributions theretofore collected pursuant to this act and
credited to the Unemployment Compensation Fund. The liquidating
amount shall consist of the total amount of contributions collected from
employers (as defined in section one (a) of the Railroad Unemployment
Insurance Act) pursuant to the provisions of this act during the period
July first, nineteen hundred thirty-nine, to December thirty-first, nine-
teen hundred thirty-nine, inclusive.

Section 13-A. Special Unemployment Compensation Administra-
tion Fund: There is hereby created in the State treasury a special fund
to be known as the Special Unemployment Compensation Administra-
tion Fund. All interest and penalties, regardless of when the same be-
came payable, collected from employers under the provisions of this act,
shall be paid into this fund. No part of said fund shall be expended or
available for expenditure in lieu of federal funds made available to the
Commission for the administration of this act. Said fund shall be used by
the Commission for the payment of costs and charges of administration
which are found by the Commission not to be proper and valid charges
payable out of any funds in the Unemployment Compensation Adminis-
tration Fund received from any source. Refunds of interest, allowable
under section fourteen (d) of the Virginia Unemployment Compensa-
tion Act, shall be made from this special fund, provided such interest was
deposited in said fund. All payments and disbursements from said Spe-
cial Unemployment Compensation Administration Fund shall be made
by the State Treasurer upon warrants of the State Comptroller issued
upon vouchers signed by the Commissioner, or such other person as the
Commissioner may designate for such purpose. The moneys in the Spe-
cial Unemployment Compensation Administration Fund shall be con-
tinuously available to the Commission for expenditure in accordance with
the provisions of this section. This section shall be effective from July
first, nineteen hunded forty-six.

Section 14. Collection of Contributions.—(a) Interest on Past-
Due Contributions.—Contributions unpaid on the date on which they
are due and pavable, as prescribed by the Commission pursuant to the
provisions of section seven, shall bear interest at the rate of one per
centum per month from and after such date until payment plus accrued
interest is received by the Commission. Interest collected pursuant to
this subsection shall from July first, nineteen hundred forty-six be paid
into the special unemployment compensation administration fund created
by section thirteen-A.

(b) Collection—If, after due notice, any employer defaults in any
payment of contributions or interest thereon, the amount due shall be
collected by civil action in the name of the Commission, and the employer
adjudged in default shall pay the costs of such action. Civil actions
brought under this section to collect. contributions or interest thereon
from an employer shall be heard by the court at the earliest possible date.
In addition to the foregoing remedy the Commission shall have such
other remedies as are available to the State Tax Commissioner and
county and city treasurers for the collection of taxes generally. The
Commission is hereby authorized to compromise, settle and adjust any
tax or taxes assessed against any employer where in the judgment of the
Commission the best interests of the Commonwealth of Virginia will be
promoted or served thereby and may in such cases accept in full settle-
ment of the tax assessed an amount less than that assessed.

(1) Injunction—When an execution has been returned by an of-
ficer unsatisfied, and the employer against whom the judgment has been
obtained on which the execution was issued continues in default of pay-
ment of the contributions, or any portion thereof, covered by the execu-
tion, such employer may be enjoined from operating and doing business
in this State until such contributions have been paid. The circuit court
of the City of Richmond shall have exclusive original jurisdiction to grant
such injunction upon the complaint of the Commission. At least fifteen
days’ notice of the time and place when the application for the injunction
will be made shall be served on the employer, and a copy of the bill of
complaint shall be served with the notice.

(c) Priorities Under Legal Dissolutions or Distributions.—In the
event of any distribution of an employer's assets, contributions then or
thereafter due shall be a lien against such assets, prior to all claims of lien
and general creditors. Contributions accruing by reason of an employ-
ment for an employer who is a receiver, trustee or other fiduciary shall
he a lien against all the assets in the custody or control of such receiver,
trustee or other fiduciary, prior and paramount to all other claims of lien
and general creditors. Nothing in this section shall be construed in
derogation of any prior lien of the Commonwealth of Virginia or any of
its political subdivisions now existing or hereafter created by law, nor
any mortgage, deed of trust or other lien duly perfected prior to the
date the contributions or any part thereof first accrued, provided that no
such lien in favor of the Commonwealth of Virginia or any of its sub-
divisions, nor any mortgage, deed of trust or other lien shall in any
case be preferred, paramount or prior to the lien for contributions due by
any such receiver, trustee or other fiduciary upon payrolls earned in the
employment of such receiver, trustee or other fiduciary.

(1) The contributions or tax imposed by section seven and subsec-
tions thereunder, of this act shall be a lien upon the assets of the business
of any employer subject to the provisions hereof who shall lease, transfer
or sell out his business, or shall cease to do business and such employer
shall be required, by the next reporting date as prescribed by the Com-
mission, to file with the Commission all reports and pay all contributions
due with respect to wages payable for employment up to the date of such
lease, transfer, sale or cessation of the business and such employer's suc-
cessor in business shall be required to withhold sufficient of the purchase
money to cover the amount of said contributions due and unpaid until
such time as the former owner or employer shall produce a receipt from
the Commission showing that the contributions have been paid, or a cer-
tificate that no contributions are due. If the purchaser of a business of a
successor of such employer shall fail to withhold purchase money or any
money due to such employer in consideration of a lease or other transfer
and the contributions shall be due and unpaid after the next reporting
date, as above set forth, such successor shall be personally liable to the
extent of the assets of the business so acquired for the payment of the
contributions accrued and unpaid on account of the operation of the
business by the former owner or employer. Whenever the purchaser or
successor of such employer shall file with the Commission a written re-
quest for a statement showing the amount of tax, if any, due by
such emplover, unless such statement is furnished to such purchaser or
successor of such employer within ninety days from the date such written
request was filed, such purchaser or successor shall not be liable for any
tax or taxes due by such employer, and the lien created by this subsec-
tion shall thereupon be released and discharged.

(d) Refund—If not later than two years after the date on
which any contributions or. interest thereon are paid, an employing unit
which has paid such contributions or interest thereon shall make applica-
tion for adjustment thereof in connection with subsequent contribution
payments, or for a refund thereof because such adjustment cannot be
made, and the Commission shall determine that such contributions or
interest or any portion thereof was erroneously collected, the Commis-
sion shall allow such employing unit to make an adjustment thereof,
without interest, in connection with subsequent contribution payments by
him, or if such adjustment cannot be made the Commission shall refund
said amount, without interest, from the fund. For like cause and within
the same period, adjustment or refund may be so made on the Commis-
sion’s own initiative.

(1) Any employing unit which the Commission finds has erroneous-
lv paid prior to June thirtieth, nineteen hundred forty-one such contribu-
tions or interest for the calendar year nineteen hundred thirty-six, nine-
teen hundred thirty-seven, nineteen hundred thirty-eight, nineteen hun-
dred thirty-nine, nineteen hundred forty, or nineteen hundred forty-one,
applying for refund or adjustment before the sixtieth day after the effec-
tive date of this amendment, shall, without regard to the due date thereof,
be entitled to a refund or adjustment thereof, without interest, from the
fund.

(2) In any case where the Commission finds that any employing
unit has erroneously paid to this State contributions or interest upon
wages earned by individuals in employment in another state, or under
the provisions of the Federal Railroad Unemployment Insurance Act,
refund or adjustment thereof shall be made, without interest, and with-
out regard to the due date thereof, upon satisfactory proof to the Com-
mission that payment of such contribution or interest has been made to
such other jurisdiction.

(3) In any case where the Commission finds that an instrumentality
of the United States has paid to this State contributions or interest upon
wages for any year with respect to which this State is not certified by the
Social Security Board under section sixteen hundred three of the Fed-
eral Internal Revenue Code, refund thereof shall be made to such instru-
mentality, without interest, and without regard to the date of payment.

2. This act shall become effective on July first, nineteen hundred
forty-six.