Chap. 1.—An ACT to provide for unemployment compensation in Virginia;
to that end to create an unemployment compensation commission and to
define and provide for the functions, duties and powers thereof; to provide
for the appointment, removal, compensation, costs and expenses of such
commission and its members, officers, agents and employees; to provide
for the appointment, compensation and expenses of others whose services
are required under this act or required by law for such commission; to
levy certain taxes on certain designated employers and to provide for the
collection, appropriation, distribution and disbursement of the same and all
moneys which may be received by the said commission or the Commonwealth
pursuant to the provisions of the act; to appropriate money for the
administration of the act and for the payment of benefits hereunder; to
require employers to keep records and make reports; to provide penalties
for violations; and to provide that this act shall constitute and be designated
and cited as the “Virginia Unemployment Compensation Act.” [SB 1]

Approved December 18, 1936

1. Be it enacted by the General Assembly of Virginia as follows:

Section 1. Short title—This act shall be known and may be cited
as the “Virginia Unemployment Compensation Act.”

Section 2. Definitions—As used in this act, unless the context
clearly requires otherwise: ,

(a) (1) “Annual pay roll’ means the total amount of wages
payable by an employer, regardless of the time of payment, for
employment during a calendar year.

(2) “Average annual pay roll’ means the average of the annual
pay rolls of any employer for the last three or five preceding calendar
years, whichever is higher.

(b) The “base period” means the first eight of the last nine
completed calendar quarters immediately preceding the first day of
an individual’s benefit year.

(c) “Benefits” means the money payments payable to an individual,
as provided in this act, with respect to his unemployment.

(d) “Benefit year,” with respect to any individual, means the
fifty-two consecutive week period beginning with the first day of the
week with respect to which benefits are’ first payable to him, and
thereafter, the fifty-two consecutive week period beginning with the
first day of the first week with respect to which benefits are next
payable to him after the termination of his last preceding benefit year.

(e) “Calendar quarter’ means the period of three consecutive
calendar months ending on March thirty-first, June thirtieth, Septem-
ber thirtieth or December thirty-first, excluding, however, any calendar
quarter or portion thereof which occurs prior to January first, nineteen
hundred and thirty-seven, or the equivalent thereof as the commission
may by regulation prescribe. :
(3) Any employing unit which acquired the organization, trade,
or business, or substantially all the assets thereof, of another employing
unit and which, if treated as a single unit with such other employing
unit, would be an employer under paragraph (1) of this sub-section ;

(4) Any employing unit which together with one or more other
employing units, is owned or controlled, by legally enforcible means
or otherwise, directly or indirectly by the same interests, or which
owns or controls one or more other employing units, by legally en-
forcible means or otherwise, and which, if treated as a single unit with
such other employing unit, would be an employer under paragraph
(1) of this sub-section ; ,

(5) Any employing unit which, having become an employer under
paragraph (1), (2), (3), or (4) of this sub-section, has not, under
section eight, ceased to be an employer subject to this act; or

(6) For the effective period of its election pursuant to section
eight (c) any other employing unit which has elected to become fully
subject to this act.

(j) (1) Subject to the provisions of this sub-section (j) “employ-
ment’? means service, including service in interstate commerce, per-
formed for remuneration or under any contract of hire, written or
oral, express or implied. .

(2) The term “employment” shall include an individual’s entire
service, performed within or both within and without this State if:

(A) the service is localized in this State; or

(B) the service is not localized in any state but some of the
service is performed in this State and (1) the base of operations, or,
if there is no base of operations, then the place from which such
service is directed or controlled, is in this State; or (ii) the base of
operations or place from which such service is directed or controlled
is not in any state in which some part of the service is performed,
but the individual’s residence is in this State.

(3) Services performed within this State but not covered under
paragraph (2) of this sub-section shall be deemed to be employment
subject to this act if contributions are not required and paid with
respect to such services under an unemployment compensation law of
any other state or of the Federal government.

(4) Services not covered under paragraph (2) of this sub-section,
and performed entirely without this State, with respect to no part
of which contributions are required and paid under an unemployment
compensation law of any other state or of the Federal government,
shall be deemed to be employment subject to this act if the individual
performing such services is a resident of this State and the commission
approves the election of the employing unit for whom such services
are performed that the entire service of such individual shall be deemed
to be employment subject to this act.

(5) Service shall be deemed to be localized within a state if

(A) the service is performed entirely within such state; or

(B) the service is performed both within and without such state,
but the service performed without such state is incidental to the
6 ACTS OF ASSEMBLY [VA.

individual’s service within the state, for example is temporary or transi-
tory in nature or consists of isolated transactions.

(6) Services performed by an individual for remuneration shall
be deemed to be employment subject to this act unless;

(A) such individual has been and will continue to be free from
control or direction over the performance of such services, both under
his contract of service and in fact; and »

(B) such service is either outside the usual course of the business
for which such service is performed, or that such service is performed
outside of all the places of business of the enterprise for which such
service is performed; or such individual, in the performance of such
service, is engaged in an independently established trade, occupation,
profession or business.

(7) The term “employment” shall not include:

(A) Service performed in the employ of this State, or of any
political sub-division thereof, or of any instrumentality of this State
or its political sub-divisions ;

(B) Service performed in the employ of any other state or its
political sub-divisions, or of the United States government, or of any
instrumentality of any other state or states or their political sub-
divisions or of the United States; |

(C) Service with respect to which unemployment compensatio
is payable under an unemployment compensation system established
by an Act of Congress; provided, that the commission is hereby
authorized and directed to enter into agreements with the proper
agencies under such Act of Congress, which agreements shall become
effective ten days after publication thereof in the manner provided
in section eleven (b) of this act for general rules, to provide reciprocal
treatment to individuals who have, after acquiring potential rights to
benefits under this act, acquired rights to unemployment compensation
under such Act of Congress, or who have, after acquiring potential
rights to unemployment compensation under such Act of Congress,
acquired rights to benefits under this act;

(D) Agricultural labor ;

(E) Domestic service in a private home;

(F) Service performed as an officer or member of the crew of
a vessel on the navigable waters of the United States;

(G) Service performed by an individual in the employ of his son,
daughter, or spouse, and service performed by a child under the age
of twenty-one in the employ of his father or mother;

(H) Service performed in the employ of a corporation, community
chest, fund, or foundation, organized and operated exclusively for
religious, charitable, scientific, literary, or educational purposes, or
for the prevention of cruelty to children or animals, no part of the
net earnings of which inures to the benefit of any private shareholder
or individual.

(k) “Employment office” means a free public employment office,
or branch thereof, operated by this State or maintained as a part of
a State-controlled system of public employment offices.
(1) “Fund” means the unemployment compensation fund established
by this act, to which all contributions required and from which all
benefits provided under this act shall be paid.

(m) “Partial unemployment”—an individual shall be deemed “par-
tially unemployed” in any week of less than full-time work if his
wages payable for such week are less than six-fifths of the weekly
benefit amount he would be entitled to receive if totally unemployed
and eligible.

(n) “State,” when not referring to the Commonwealth of Virginia,
includes, in addition to the states of the United States of America,
Alaska, Hawaii, and the District of Columbia.

(o) “Social Security Act” means the act enacted by the Congress
of the United States, approved the fourteenth day of August, nineteen
hundred and thirty-five, entitled “An act to provide for the general
welfare by establishing a system of Federal old-age benefits, and by
enabling the several states to make more adequate provision for aged
persons, blind persons, dependent and crippled children, maternal and
child welfare, public health, and the administration of their unemploy-
ment compensation laws; to establish a Social Security Board; to
raise revenue; and for other purposes,’ and amendments thereof.

(p) “Total unemployment”—an individual shall be deemed “totally
unemployed” in any week during which he performs no services with
respect to which wages are payable to him. An individual’s week
of total unemployment shall be deemed to commence only after his
registration pursuant to section four (a) of this act.

(q) “Unemployment compensation administration fund” means the
unemployment compensation administration fund established by this
act, from which administrative expenses under this act shall be paid.

(r) “Wages” means all remuneration payable for personal services,
including commissions and bonuses and the cash value of all remunera-
tion payable in any medium other than cash. Gratuities customarily
received by an individual in the course of his employment from persons
other than his employing unit shall be treated as wages payable by his
employing unit. The reasonable cash value of remuneration payable
in any medium other than cash, and the reasonable average amount of
gratuities, shall be estimated and determined in accordance with rules
prescribed by the commission.

(s) “Week” means calendar week, ending at midnight Saturday,
or the equivalent thereof as determined in accordance with regulations
prescribed by the commission.

(t) “Weekly benefit amount’—an individual’s “weekly benefit
amount’ means the amount of benefits he would be entitled to receive
for one week of total unemployment. An individual’s ‘weekly benefit
amount, as determined for the first week of his benefit year, shall
constitute his weekly benefit amount throughout such year.

Section 3. Benefits—(a) Payment of benefits.—Twenty-four
months after the first day of the first period with respect to which
contributions are required under this act, benefits shall become payable
from the fund. All benefits shall be paid through employment offices,
in accordance with such regulations as the commission mav prescribe.
(b) Weekly benefit amount for total unemployment.—Each eligible
individual who is totally unemployed, as defined in section two (p),
in any week shall be paid with respect to such week, benefits at the
rate of fifty per centum of his full-time weekly wage but not more
than fifteen dollars per week, nor less than either five dollars or three-
fourths of his full-time weekly wage, whichever is the lesser.

(c) Weekly benefit for partial unemployment.—Each eligible indi-
vidual who is partially unemployed, as defined in section two (m),
in any week shall be paid with respect to such week a partial benefit.
Such partial benefit shall be an amount equal to the difference between
his weekly benefit amount, as defined in section two (t), and five-
sixths of his wages, as defined in section two (r), for such week.

(d) Determination of full-time weekly wage—(1) The full-time
weekly wage of any individual means the weekly wages that such
individual would receive if he were employed at the most recent wage
rate earned by him in employment for an employer in his base period
and for the customary scheduled full-time week prevailing for his
occupation in the enterprise in which he last earned wages in employ-
ment for an employer during his base period.

(2) If the commission finds that the full-time weekly wage, as above
defined, would be unreasonable or arbitrary or not readily determinable
with respect to any individual, the full-time weekly wage of such indi-
vidual shall be deemed to be one-thirteenth of his total wages earned
by him in employment for an employer in that quarter in which such
total wages were highest during his base period.

(e) Duration of benefits——The maximum total amount of benefits
payable to any eligible individual during any benefit year shall not
exceed the balance credited to his account with respect to wages earned
in employment for employers during his base period or sixteen times
his weekly benefit amount, whichever is the lesser. The commission
shall maintain a separate account for each individual who subsequent
to January first, nineteen hundred and thirty-seven, earns wages in
employment for an employer. After the expiration of each calendar
quarter, the commission shall credit each such account with one-sixth
of such wages earned by such individual during such quarter, or
sixty-five dollars, whichever is the lesser. Benefits paid to an eligible
individual shall be charged against amounts, credited to his account
on the basis of such wages earned during his base period, which have
not previously been charged hereunder, in the same chronological order
as the wages on the basis of which such amounts were computed, were
earned.

Section 4. Benefit eligibility conditions——An unemployed individual
shall be eligible to receive benefits with respect to any week only if
the commission finds that—

(a) He has registered for work at and thereafter has continued
to report at an employment office in accordance with such regulations
as the commission may prescribe.

(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 is available for work.
(d) Prior to any week for which he claims benefits, he has been
totally unemployed for a waiting period of two weeks with respect to
which he received no benefits but during which he was eligible for
benefits in all other respects, except for the requirements of sub-
sections (b) and (e) of this section, and was not disqualified for
benefits under any provision of section five of this act. Such two
weeks of total unemployment need not be consecutive, but shall be
accumulated over the period of thirteen consecutive weeks preceding
any week for which he claims benefits, provided that this requirement
shall not interrupt the payment of benefits for consecutive weeks of
unemployment; and provided further that such two weeks of total
unemployment occur after benefits first could become payable to any
individual under this act. For the purpose of computing such waiting
period, two weeks of partial unemployment shall be counted as one
week of total unemployment.

(e) He has within the first four out of the last five completed
calendar quarters immediately preceding the first day of his benefit
year, earned wages in employment for employers equal to not less
than sixteen times his weekly benefit amount.

Section 5. Disqualification for benefits——An individual shall be dis-
qualified for benefits—

(a) For the week in which he has left work voluntarily without
good cause, if so found by the commission, and for not less than
the one or more than the five weeks which immediately follow such
week (in addition to the waiting period), as determined by the com-
mission according to the circumstances in each case.

(b) For the week in which he has been discharged for misconduct
connected with his work, if so found by the commission, and for not
less than the one nor more than the nine weeks which immediately
follow such week (in addition to the waiting period), as determined
by the commission in each case according to the seriousness of the
misconduct. .

(c) If the commission finds that he has failed, without good
cause, either to apply for available, suitable work when so directed
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. Such disqualification shall
continue for the week in which such failure occurred and for not less
than the one nor more than the five weeks which immediately follow
such week (in addition to the waiting period) as determined by the
commission according to the circumstances in each case.

(1) In determining whether or not any work is suitable for an
individual, 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
is 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 wou'd 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 sub-section shall not apply if it is 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,
immediately before the commencement of the stoppage, there were
members 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 if 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
department shall, for the purposes of this sub-section, be deemed to be
a separate factory, establishment, or other premises.

(e): For any week with respect to which he is receiving or has
received remuneration in the work of—

(1) Wages in lieu of notice; ,

(2) Compensation for temporary partial disability under the work-
men’s compensation law of any state or under a similar law of the
United States; or

(3) Old-age benefits under title II of the Social Security Act, or
similar payments under any Act of Congress; provided, that if such
remuneration is less than the benefits which would otherwise be due
under this act, he shall be entitled to receive for such week, if other-
wise eligible, benefits reduced by the amount of such remuneration.

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 em-
ployer without cost to him.

(b) Initial determination—A representative designated by the com-
mission. 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 clair
or any question involved therein to an appeal tribunal or to the com-
mission, which tribunal or commission shall make its determination with
respect thereto in accordance with the procedure described in sub-
section (c) of this section, except that in any case in which the pay-
ment or denial of benefits will be determined by the provisions of sec-
tion five (d) of this act, the deputy shall promptly transmit his full
finding of fact with respect to that sub-section 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 sub-section. The deputy shall promptly notify the claimant and
any other interested party of the decision and the reasons therefor.
Unless the claimant or any such interested party, within five calendar
days after the delivery of such notification, or within seven calendar
days after such notification was mailed to his last-known address, files
an appeal from such decision, such decision shall be final and benefits
shall be paid or denied in accordance therewith. If an appeal is duly
filed, benefits with respect to the period prior to the final determination
of the commission shall be paid only after such determination; provided,
that if an appeal tribunal affirms a decision of a deputy, or the com-
mission affirms a decision of an appeal tribunal, allowing benefits, such
benefits shall be paid regardless of any appeal which may thereafter
be taken.

(c) Appeals.——Unless such appeal is withdrawn, an appeal tribunal,
after affording the parties reasonable opportunity for fair hearing, shall
affirm or modify the findings of fact and decision of the deputy. 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 sub-
section (e) of this section.

(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 ser-
vice on such tribunal plus necessary expenses. No person shall par-
ticipate on behalf of the commission in any case in which he is an in-
terested party. The commission may designate alternates to serve in
the absence or disqualification 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 pro-
ceed unless the chairman of the appeal tribunal is present.

(e) Commission review.—The commission may on its own motion
affirm, 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 may permit any of the parties to such de-
cision to initiate further appeals before it. The commission shall per-
mit such further appeal by any of the parties interested in a decision
of an appeal tribunal which is not unanimous and by the deputy whose
decision has been overruled or modified by an appeal tribunal. The
commission may remove to itself 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 by a quorum
thereof in accordance with the requirements in sub-section (c) of this
section. The commission shall promptly notify the interested parties of
its findings and decision.

(f{) Procedure—The manner in which disputed claims shall be pre-
sented, the reports thereon required from the claimant and from em-
ployers, and the conduct of hearings and appeals before any deputy,
appeal tribunal or the commission shall be in accordance with regula-
tions 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 dis-
puted claim is further appealed.

(g) Witness fees——Witnesses 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) Appeal to courts——Any decision of the commission in the ab-
sence of an appeal therefrom as herein provided shall become final ten
days after the date of notification or mailing thereof, and judicial re-
view thereof shall be permitted only after any party claiming to be
agerieved thereby has exhausted his remedies before the commission
as provided by this act. ‘The commission shall be deemed to be a party
to any judicial action involving any such decision, and shall be repre-
sented in any such judicial action by the Attorney General.

(1) Court review.—Within ten days after the decision of the com-
mission has become final, any party aggrieved thereby may secure judi-
cial 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 corporation 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 re-
view 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 completed 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 find-
ings of fact and decision therein. The commission may also, in its
discretion, certify to such court questions of law involved in any de-
cision by it. In any judicial proceeding 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 jurisdiction 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 civil cases. It shall not be necessary, in any judicial pro-
ceeding under this section, to enter exceptions to the rulings of the
commission and no bond shall be required for entering such appeal.
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 not act as a supersedeas.

Section 7. Contributions—(a) Every employer shall, on or before
January thirty-first, nineteen hundred and 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
and 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 January first, nineteen hundred
and 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 of payment,
with respect to employment during the calendar year nineteen hundred
and 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 dur-
ing the calendar year nineteen hundred and thirty-six greater in amount
than such employer shall be entitled to have allowed as a credit upon
the taxes imposed by the Social Security Act with respect to such em-
ployment ; provided, however, that the foregoing shall not be construed
as relieving any employer 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.

(b) On and after January first, nineteen hundred and 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 sub-
ject to this act, with respect to wages payable for employment (as de-
fined 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 prescribe. The commission is hereby expressly au-
thorized to require payment of the taxes aforesaid in monthly, quar-
terly, semi-annual or annual payments as shall be determined 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 suc-
ceeding 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 expira-
tion of such extension.

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 and thirty-seven ;

(2) Two and seven-tenths (2.7%) per centum with respect to em-
ployment during the calendar year nineteen hundred and thirty-eight
and during each succeeding calendar year.

(c) 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 dis-
regarded, unless it amount to one-half cent or more, in which case it
shall be increased to one cent.

Section 8. Period, election, and termination of employer’s cover-
age.—(a) Any employing unit which is or becomes an employer sub-
ject to this act within any calendar year shall be subject to this act dur-
ing the whole of such calendar year.

(b) Except as otherwise provided in sub-section (c) of this sec-
tion, an employing unit shall cease to be an employer subject to this
act as of the first day of January of any calendar year, only if it files
with the commission, prior to the fifth day of January 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 dif-
ferent week within the preceding calendar year, within which such
employing unit employed eight or more individuals in employment sub-
ject to this act. For the purpose of this sub-section, the two or more
employing units mentioned in paragraph (2) or (3) or (4) of sec-
tion two (1) shall be treated as a single employing unit.

(c) (1) An employing unit, not otherwise subject to this act, which
files with the commission its written election to become an employer
subject hereto for not less than two calendar years, shall, with the
written approval of such election by the commission, become an em-
ployer subject hereto to the same extent as all other employers, as of
the date stated in such approval, and shall cease to be subject hereto
as of January first of any calendar year subsequent to such two calen-
dar years, only if at least thirty days prior to such first day of January,
it has filed with the commission a written notice to that effect.

(2) Any employing unit for which services that do not constitute
employment as defined in this act are performed, may file with the
commission a written election that all such services performed by in-
dividuals in its employ in one or more distinct establishments or places
of business shall be deemed to constitute employment for all the pur-
poses of this act for not less than two calendar years. Upon the writ-
ten approval of such election by the commission, such services shall be
deemed to constitute employment subject to this act from and after
the date stated in such approval. Such services shall cease to be deemed
employment subject hereto 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 com-
mission 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 ac-
count.

(a) All contributions, together with any interest collected thereon,
and other moneys required 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 collection, be paid into the State treasury and credited
to the clearing account. Refunds 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 established 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
accordance with regulations prescribed by the commission. The com-
mission shall, from time to time, requisition from the unemployment
trust fund such amounts, not exceeding the amount standing to its credit
therein, as it deems necessary for the payment of benefits for a reason-
able 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 requisitioned 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 estimates for, and may be utilized for the payment of, benefits
during succeeding 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 sub-section (a) of this section. All benefits shall be
paid through public 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
16 ACTS OF ASSEMBLY [vA.

commission designated by the commission for such purpose, or by such
other person or persons as the commission may designate for such
purpose.

Section 10. Unemployment Compensation Commission.—(a) There
is hereby created a commission, to be known as the Unemployment
Compensation Commission of Virginia. The commission shall consist
of the Commissioner of Labor and two members who shall be appointed
by the Governor, subject to confirmation by the General Assembly, if
in session when such appointment is made, and if not in session, then
at its next succeeding session. One of the members appointed by the
Governor shall be appointed for a term of two years and the other
member appointed by the Governor shall be appointed for a term of
four years; subsequent appointments by the Governor shall be for a
term of four years, except appointments to fill vacancies, which shall be
for the unexpired terms. The Governor shall designate annually as
chairman of the commission one of tthe members appointed by the
Governor. The members of the commission appointed by the Gov-
ernor may be suspended or removed by the Governor at his pleasure.
The commission, under regulations adopted by itself, may elect one
of its members chairman pro tempore and another, or some other per-
son, as secretary. Two members of the commission shall constitute
a quorum; but no vacancies shall impair the right of the remaining com-
missioners to exercise all of the powers of the commission. Each of
the members of the commission appointed by the Governor shall re-
ceive as compensation for their services the sum of fifty-four hundred
dollars per annum. The Commissioner of Labor shall receive, in addi-
tion to the compensation which he receives as Commissioner of Labor,
such sum as shall be necessary to make his totel1 annual compensation,
received as Commissioner of Labor and as a member of the commission.
equal to fifty-four hundred dollars per annum. |

(b) Each member of the commission shall, before entering upon
the discharge of his duties, give bond payable to the Commonwealth
of Virginia, in form approved by the Attorney General, in such pen-
alty as shall be fixed, from time to time, by the Governor, with some
surety or guaranty company duly authorized to do business in this
State and approved by the Governor as security, conditioned upon the
faithful discharge of his duties; the premium of such bonds shall be
paid by the commission, and the bonds shall be filed with and pre-
served by the Comptroller.

(c) The commission shall establish two coordinate divisions: the
Virginia State Employment Service, created pursuant to section twelve
of this act, and the Unemployment Compensation Division. Each di-
vision shall be responsible for the discharge of :ts distinctive functions.
Each division shall be a separate administrative unit, with respect to
personnel, budget, and duties, except in so far as the commission may
find that such separation is impracticable. , ,

Section 11. Administration—(a) Duties and powers of commis-
sion.—It shall be the duty of the commission to administer this act;
and it shall have power and authority to adopt, amend, or rescind such
rules and regulations, to employ such persons, make such expenditures,
require such reports, make such investigations, and take such other
action as it deems necessary or suitable to that end. Such rules and
regulations shall be effective upon publication in the manner, not in-
consistent with the provisions of this act, which the commission shall
prescribe. The commission shall determine its own organization and
methods of procedure in accordance with the provisions of this act,
and shall have an official seal which shall be judicially noticed. Not
later than the first day of February of each year, the commission shall
submit to the Governor a report covering the administration and opera-
tion of this act during the preceding calendar year and shall make such
recommendations for amendments to this act as the commission deems
proper. Such report shall include a balance sheet of the moneys in
the fund and in the Unemployment Trust Fund to the credit of the
State in which there shall be provided, if possible, a reserve against
the liability in future years to pay benefits in excess of the then cur-
rent contributions, which reserve shall be set up by the commission in
accordance with accepted actuarial principles on the basis of statistics
of employment, business activity, and other relevant factors for the
longest possible period. Whenever the commission believes that a
change in contribution or benefit rates will become necessary to pro-
tect the solvency of the fund, it shall promptly so inform the Governor
and the General Assembly, and make recommendations with respect
thereto. ,

(b) Regulations and general and special rules——General and special
rules may be adopted, amended, or rescinded by the commission only
after public hearing or opportunity to be heard thereon, of which proper
notice has been given. General rules shall become effective ten days
after filing with the Secretary of the Commonwealth and publication
in one or more newspapers of general circulation in this State. Special
rules shall become effective ten days after notification to or mailing
to the last known address of the individuals or concerns affected thereby.
Regulations may be adopted, amended, or rescinded by the commission
and shall become effective in the manner and at the time prescribed
by the commission.

(c) Publication——The commission shall cause to be printed for dis-
tribution to the public the text of this act, the commission’s regulations
and general rules, its annual reports to the Governor, and any other
material the commission deems relevant and suitable and shall furnish
the same to any person upon application therefor. | ,

(d) Personnel.—Subject to other provisions of this act, the com-
mission is authorized to appoint, fix the compensation, and prescribe
the duties and powers of such officers, accountants, experts, and other
persons as may be necessary in the performance of its duties. All
positions shall be filled by persons selected and appointed on a
nonpartisan merit basis. All salaries or remunerations in excess of
one thousand dollars per annum shall first be approved by the Gov-
ernor.' The commission may delegate to any such person so appointed
such power and authority as it deems reasonable and proper for the
effective administration of this act, and may in its discretion require
bond, payable to the State, from any person handling moneys or sign-
ing checks hereunder.

(e) Advisory councils—The commission may appoint a State ad-
visory council and local advisory councils, composed in each case of
an equal number of employer representatives and employee representa-
tives who may fairly be regarded as representatives because of their
vocation, employment, or affiliations, and of such members represent-
ing the general public as the commission may designate; the members
of such councils shall serve at the pleasure of the commission. Such
councils shall aid the commission in formulating policies and discuss-
ing problems related to the administration of this act and in assuring
impartiality and freedom from political influence in the solution of such
problems. Such advisory councils shall serve without compensation,
but shall be rermbursed for any necessary expenses.

(f) Employment stabilization—-The commission, with the advice
and aid of such advisory councils as it may appoint, and through its
appropriate divisions, shall take all appropriate steps to reduce and
prevent unemployment; to encourage and assist in the adoption oi
practical methods of vocational training, retraining and vocational guid-
ance; to investigate, recommend, advise, and assist in the establishment
and operation, by municipalities, counties, school districts, and the
State, of reserves for public works to be used in times of business de-
pression and unemployment; to promote the re-employment of un-
employed workers throughout the State in every other way that may
be feasible; and to these ends to carry on and publish the results of
investigations and research studies.

(g) Records and reports.—Each employing unit shall keep true
and accurate work records, containing such information as the com-
mission may prescribe. Such records shall be open to inspection and
be subject to being copied by the commission or its authorized
representatives at any reasonable time and as often as may be necessary.
The commission may require from any employing unit any sworn or
unsworn reports, with respect to persons employed by it, which the
commission deems necessary for the effective administration of this
act. Information thus obtained shall not be published or be open
to public inspection, other than to public employees in the performance
of their public duties. in any manner revealing the employing unit’s
identity, but any claimant at a hearing before an appeal tribunal or
the commission shall be supplied with information from such records
to the extent necessary for the proper presentation of his claim. Any
member or employee of the commission who violates any provision
of this section shall be fined not less than twenty dollars nor. more
than two hundred dollars, or confined in jail for not longer than ninety
days, or both. |

(h) Study.—The commission shall investigate and study the opera-
tion of this act upon the basis of the actual contributions and _ benefit
experience hereunder with a view to classifying or grouping employers,
employments, occupations and industries with respect to the frequency
and severity of unemployment of each taking due account of any
relevant and measurable factors relating thereto for the purpose of
determining the practicability of establishing a rating system which
will most equitably operate to rate the unemployment risk and fix the
contribution to such fund of each employer, group of employers, em-
ployment, occupation and industry, and to encourage the stabilization
of employment therein. The commission shall report its findings and
recommendations concerning this matter to the Governor not later than
December first, nineteen hundred and thirty-nine, for transmission
to the next succeeding session of the General Assembly.

(1) Oaths and witnesses.—In the discharge of the duties imposed
by this act, the chairman of an appeal tribunal and any duly authorized
representative or member of the commission shall have power to ad-
minister oaths and affirmations, take depositions, certify to official
acts, and issue subpoenas to compel the attendance of witnesses and
the production of books, papers, correspondence, memoranda, and other
records deemed necessary as evidence in connection with a disputed
claim or the administration of this act.

(J) Subpoenas.—In case of contumacy by, or refusal to obey a
subpoena issued to any person, any court of this State within the
jurisdiction of which the inquiry is carried on or within the jurisdiction
of which said person guilty of contumacy or refusal to obey is found
or resides or transacts business, upon application by the commission
or its duly authorized representative, shall have jurisdiction to issue
to such person an order requiring such person to appear -before an
appeal tribunal, a commissioner, the commission, or its duly authorized
representative, there to produce evidence if so ordered or there to
give testimony touching the matter under investigation or in question;
and any failure to obey such order of the court may be punished by
said court as a contempt thereof. Any person who shall, without just
cause, fail or refuse to attend and testify or to answer to any lawful
inquiry or to produce books, papers, correspondence, memoranda and
other records, if in his power so to do, in obedience to the subpoena
of the commission shall be guilty of a misdemeanor, and, upon con-
viction shall be subject to a fine of not more than one thousand
dollars or to imprisonment for a term of not more than one year, or
both; each day such violation continues shall be deemed to be a
separate offense.

(k) Protection against self-incrimination—No person shall be ex-
cused from attending and testifying or from producing books, papers,
correspondence, memoranda, and other records before the commission
or in obedience to the subpoena of the commission or any member
thereof or any duly authorized representative of the commission in
any cause or proceeding before the commission, on the ground that
the testimony or evidence, documentary or otherwise, required of him
may tend to incriminate him or subject him to a penalty or forfeiture;
but no individual shall be prosecuted or subjected to any penalty or
forfeiture for or on account of any transaction, matter, or thing con-
cerning which he is compelled, after having claimed his privilege
against self-incrimination, to testify or produce evidence, documentary
or otherwise, except that such individual so testifying shall not be
exempt from prosecution and punishment for perjury committed in
so testifying.

(1) State-Federal cooperation—In the administration of this act,
the commission shall cooperate to the fullest extent consistent with
the provisions of this act, with the Social Security Board, created by
the Social Security Act; shall make such reports, in such form and
containing such information as the Social Security Board may from
time to time require, and shall comply with such provisions as the
Social Security Board may from time to time find necessary to assure
the correctness and verification of such reports; and shall comply with
the regulations prescribed by the Social Security Board governing the
expenditures of such sums as may be allotted and paid to this State
under Title III of the Social Security Act for the purpose of assisting
in the administration of this act.

Upon request therefor, the commission shall furnish to any agency
of the United States charged with the administration of public works
or assistance through public employment, the name, address, ordinary
occupation, and employment status of each recipient of benefits and
such recipient’s rights to further benefits under this act.

Section 12. Employment service—(a) Virginia State Employment
Service.—All rights, powers and duties heretofore vested in the De-
partment of Labor and Industry, the free employment bureau of the
said department, and in the Commissioner of Labor, with respect to the
establishment, maintenance and operation of free employment offices
in this State, are hereby transferred to and vested in the commission,
which shall possess, exercise and perform the same through a division
known as the Virginia State Employment Service. The Commissioner
of Labor, as a member of the commission, shall be the chief executive
officer of the Virginia State Employment Service and shall have such
supervision and control over the same as the commission shall prescribe.
The commission through the division shall establish and maintain free
public employment offices in such number and in such places as may
be necessary for the proper administration of this act. The provisions
of an act passed by the Congress of the United States and approved
on June sixth, nineteen hundred and thirty-three, entitled “An act
to provide for the establishment of a national employment system and
for cooperation with the states in the promotion of such system, and
for other purposes,” having heretofore been accepted by and on behalf
of this State, the commission, through the Virginia State Employment
Service, is hereby designated, in lieu of the Department of Labor and
Industry through the free employment bureau thereof, as the State
agency and vested with all powers necessary, to cooperate with the
United States Employment Service in accordance with the terms and
conditions expressed in said act of the Congress of the United States
herein referred to.

(b) Financing——The Treasurer of Virginia is hereby authorized
and empowered to receive all grants of money apportioned to this State
under the act of the Congress of the United States referred to in the
next preceding paragraph of this act. All such funds so received shall
be paid into the separate employment service account in the unemploy-
ment compensation administration fund, and are hereby specifically
appropriated to the commission for the purpose or purposes for which
they are granted unto this State. The disposition and control of all
unexpended appropriations standing to the credit of the Department of
Labor and Industry for the maintenance of public employment service
is hereby transferred to and vested in the commission, to be credited
by the Comptroller to the said employment service account in the un-
employment compensation administration fund.

Section 13. Unemployment compensation administration fund.—
(a) There is hereby created in the State treasury, a special fund to
be known as the unemployment compensation administration fund.
All moneys which are deposited or paid into this fund are hereby
appropriated and made available to the commission. All moneys in
this fund shall be expended solely for the purpose of defraying the cost
of the administration of this act and for no other purpose whatsoever.
The fund shall consist of all moneys appropriated by this State, and
all moneys received from the United States of America, or any agency
thereof, including the Social Security Board and the United States
Employment Service, or from any other source, for such purpose.

(b) A special employment service account shall be maintained as
a part of the unemployment compensation administration fund for
the purpose of maintaining the public employment offices established
pursuant to section twelve of this act, and for the purpose of cooperating
with the United States Employment Service.

(c) For the purpose of paying the salaries and remuneration of
the members of the commission, and of the officers, agents and em-
ployees of the commission, and all costs and expenses incurred by the
commission in administering the provisions of this act until moneys
are received for such purpose from the United States or some officer
or agency thereof, there is hereby appropriated, from funds in the
State treasury not otherwise appropriated, the sum of ten thousand
dollars or so much thereof as shall be necessary. To reimburse the
State for the sum herein appropriated, or so much thereof as shall be
expended, there shall be deducted from moneys received by the com-
mission, before the end of the fiscal year ending June thirtieth, nineteen
hundred and thirty-eight, from the United States under Title III of
the Social Security Act the sum of ten thousand dollars, or such part
thereof as shall be expended hereunder, which sum shall be credited
to the general fund of the State treasury.

(d) All payments and disbursements from the unemployment com-
pensation administration 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 purpose.

(e) All expenses incurred by the Auditor of Public Accounts in
auditing the books, records and accounts of the commission and in
rendering other services to the commission and all expense incurred
by the Comptroller and the State Treasurer in performing the services
22, ACTS OF ASSEMBLY [vA.

required by this act, may be treated as administrative expense of the
commission and accordingly paid by the commission.

Section 14. Collection of contributions.—(a) Interest on past-due
contributions.—Contributions unpaid on the date on which they are due
and payable, as prescribed by the commission pursuant to the pro-
visions 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
rae sub-section shall be paid into the unemployment compensation

und.

(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 com-
mission shall have such other remedies as are available to the State Tax
Commissioner and county and city treasurers for the collection of taxes
generally.

(c) Priorities under legal dissolutions or distributions——In the
event of any distribution of any employer’s assets pursuant to an order
of any court under the laws of this State, including any receivership,
assignment for benefit of creditors, adjudicated insolvency, composition,
or similar proceeding, contributions then or thereafter due shall be
paid in full prior to all other claims except taxes and claims for wages
of not more than two hundred and fifty dollars to each claimant, earned
within six months of the commencement of the proceeding. In the
event of an employer’s adjudication in bankruptcy, judicially confirmed
extension proposal, or composition, under the Federal Bankruptcy Act
of eighteen hundred and ninety-eight, as amended, contributions then
or thereafter due shall be entitled to such priority as is provided in
section sixty-four (b) of that act (U. S. C,, title 11, section 104
(b) ), as amended.

(d) Refunds.—If not later than one year after the date on which
any contributions or interest thereon became due, an employer who has
paid such contributions or interest thereon shall make application for
an adjustment thereof in connection with subsequent contribution pay-
ments, 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 com-
mission shall allow such employer 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 commission’s own initiative.

Section 15. Protection of rights and benefits—(a) Waiver of rights
void—Any agreement by an individual to waive, release, or commute
his rights to benefits or any other rights under this act shall be void.
Any agreement by any individual in the employ of any person or con-
cern to pay all or any portion of an employer’s contributions, required
under this act from such employer, shall be void. No employer shall
directly or indirectly make or require or accept any deduction from
wages to finance the employer’s contributions required from him, or
require or accept any waiver of any right hereunder by any individual
in his employ. Any employer or officer or agent of any employer who
violates any provision of this sub-section shall, for each offense, be
guilty of a misdemeanor and upon conviction thereof shall be pun-
ished accordingly.

(b) Limitation of fees—No individual claiming benefits shall be
charged fees of any kind in any proceeding under this act by the com-
mission or its representatives. Any individual claiming benefits in any
proceeding before the commission or a court may be represented by
counsel or other duly authorized agent; but no such counsel or agent
shall either charge or receive for such services more than an amount
approved by the commission. Any person who violates any provision
of this sub-section shall, for each such offense, be guilty of a mis-
demeanor and upon conviction thereof be punished accordingly.

(c) No assignment of benefits; exemptions.——Any assignment,
pledge, or encumbrance of any right to benefits which are or may
become due or payable under this act shall be void; and such rights to
benefits shall be exempt from levy, execution, attachment, or any other
remedy whatsoever provided for the collection of debt; and benefits
received by any individual, so long as they are not mingled with other
funds of the recipient, shall be exempt from any remedy whatsoever
for the collection of all debts except debts incurred for necessaries
furnished to such individual or his spouse or dependents during the
time when such individual was unemployed. Any waiver of any
exemption provided for in this sub-section shall be void.

Section 16. Penalties—-(a) Whoever makes a false statement
or representation knowing it to be false or knowingly fails to disclose
a material fact, to obtain or increase any benefit or other payment
under this act, either for himself or for any other person, shall be
guilty of a misdemeanor and on conviction thereof shall be punished
accordingly; each such false statement or representation or failure to
disclose a material fact shall constitute a separate offense.

(b) Any employing unit or any officer or agent of an employing
unit or any other person who makes a false statement or representa-
tion knowing it to be false, or who knowingly fails to disclose a
material fact, to prevent or reduce the payment of benefits to any
individual entitled thereto, or to avoid becoming or remaining sub-
ject hereto or to avoid or reduce any contribution or other payment
required from an employing unit under this act, or who wilfully fails
or refuses to furnish any reports required hereunder or to produce or
permit the inspection or copying of records as required hereunder,
shall be guilty of a misdemeanor and upon conviction thereof shall
be punished accordingly; each such false statement or representation
or failure to disclose a material fact, and each day of such failure or
refusal shall constitute a separate offense.
(c) Any person who shall wilfully violate any provision of this act
or any valid rule or regulation thereunder, the violation of which
is made unlawful or the observance of which is required under the
terms of this act, and for which a penalty is neither prescribed herein
nor provided by any other applicable statute, shall be guilty of a mis-
demeanor and upon conviction thereof shall be punished accordingly ;
each day such violation continues shall be deemed to be a separate
offense.

(d) Any person who, by reason of the non-disclosure or misrep-
resentation by him or by another, of a material fact (irrespective of
whether such non-disclosure or misrepresentation was known or fraud-
ulent) has received any sum as benefits under this act while any
conditions for the receipt of benefits imposed by this act were not ful-
filled in his case, or while he was disqualified from receiving benefits,
shall, in the discretion of the commission, either be liable to have such
sum deducted from any future benefits payable to him under this act
or shall be liable to repay to the commission for the unemployment
compensation fund, a sum equal to the amount so received by him,
and such sum shall be collectible in the manner provided in section
fourteen (b) of this act for the collection of past-due contributions.

Section 17. Representation in court—(a) In any civil action to
enforce the provisions of this act the commission and the State may
be represented by the Attorney General.

(b) All criminal actions for violation of any provision of this act,
or of any rules or regulations issued pursuant thereto, shall be prose-
cuted by the attorney for the Commonwealth of the county or city in
which the offense, or a part thereof, was committed. If, in the opinion
of the commission, in any case, the prosecution should be conducted
by the Attorney General, the Attorney General, upon request of the
commission, shall have authority to conduct or supervise such pros-
ecution. ,

(c) Where in this act any duty is required to be performed or
any service to be rendered by the Attorney General, it may be per-
formed or rendered by him through assistants or special counsel em-
ployed by the commission upon the recommendation of the Attorney
General. For the purpose of enabling the Attorney General to per-
form the duties required of him under this act and other duties re-
quired by law to be performed by him for the commission, he is
hereby authorized to appoint one or more assistants, and to require
of them the performance of such duties as he may assign to them.
The compensation of the said assistants shall be fixed by the Attorney
General, with the approval of the Governor, and, together with their
proper expenses incurred in the performance of their duties, shall be
chargeable as administrative expense of the commission and paid in
the manner in which the compensation and expenses of employees of
the commission are paid.

Section 18. Nonliability of State——Benefits shall be deemed to be
due and payable under this act only to the extent provided in this
act and to the extent that moneys are available therefor to the credit
of the unemployment compensation fund, and neither the State nor
the commission shall be liable for any amount in excess of such sums.

Section 19. Saving clause——The General Assembly reserves the
right to amend or repeal all or any part of this act at any time; and
there shall be no vested private right of any kind against such amend-
ment or repeal. All the rights, privileges, or immunities conferred by
this act or by acts done pursuant thereto shall exist subject to the
power of the General Assembly to amend or repeal this act at any
time.

Section 20. Separability of provisions—lI{ any provision of this
act, or the application thereof to any person or circumstance, is held
invalid, the remainder of this act and the application of such provision
to other persons or circumstances shall not be affected thereby.

Section 21. Effective date; contingencies—An emergency exist-
ing, this act shall be in force from its passage. In the event, however,
that Title IX of the Social Security Act is repealed, amended, or
otherwise changed by the Congress of the United States, or is finally
adjudged invalid or unconstitutional by the Supreme Court of the
United States, with the result that no portion of the contributions re-
quired by this act can be credited against any tax imposed by Title IX
of the Social Security Act, then the Governor of the State shall,
within sixty days from the date of such repeal, amendment or change,
or from the date that such act is so finally adjudged invalid or un-
constitutional, by proclamation so state, and upon the issuance of
such proclamation, the provisions of this act shall expire by limita-
tion and thereafter have no force and effect, except that the com-
mission shall thereupon requisition all moneys standing to the credit
of the State in the unemployment trust fund established by section
nine hundred and four (904) of the Social Security Act and all such
moneys so refunded, repaid or returned to the State, together with
such other money paid to the State as contributions under the terms
of this act and then held by the State, less the cost of making the re-
fund and repayment, shall forthwith be refunded or repaid by the
State Treasurer, upon warrants of the Comptroller, issued upon vouchers
signed by the chairman of the commission, or such other person or
persons as the commission shall designate for such purpose, to the
individual employers who have paid contributions under the terms
of this act ratably in proportion to the amounts contributed by each
such employer.

In the event that the Social Security Board shall fail or refuse
to approve this act, or, having approved the same, shall thereafter,
withdraw its approval, with the result that no portion of the contribu-
tions required by this act with respect to employment during any
year can be credited against any tax imposed by Title IX of the Social
Security Act with respect to employment for such year, the provisions
of this act requiring the payment of contributions shall become and
remain suspended until such credit can be had.