Page:United States Statutes at Large Volume 52.djvu/1152

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 680 -JUNE 25, 1938 person in its employ: Provided, That no provision of this Act shall be construed to affect the payment of unemployment benefits with respect to any period prior to July 1, 1939, under an unemployment compensation law of any State based upon employment performed prior to July 1, 1939, and prior to such date employment as defined in this Act shall not constitute "Service with respect to which unem- ployment compensation is payable under an [or "service under any"] unemployment compensation system [or "plan"] established by an Act of Congress" [or "a law of the United States"] or "employment in interstate commerce, of an individual who is covered by an unem- ployment compensation system established directly by an Act of Congress," or any term of similar import, used in any unemployment compensation law of any State. (c) The Social Security Board is hereby directed to determine for each State, after agreement with the Railroad Retirement Board, and after consultation with such State; the total (hereinafter referred to as the "preliminary amount") of (i) the amount remaining as the balances of reserve accounts of employers as of June 30, 1939, if the unemployment compensation law of such State provides for a type of fund known as "Reserve Accounts", plus (ii) if the unemployment compensation law of such State provides for a type of fund known as "Pooled Fund" or "Pooled Account", that proportion of the balance of such fund or account of such State as of June 30, 1939, as the amount of taxes or contributions collected from employers and their employees prior to July 1, 1939, pursuant to its unemployment com- pensation law and credited to such fund or account bears to all such taxes or contributions theretofore collected from all persons subject to its unemployment compensation law and credited to such fund or account; and the additional amounts (hereinafter referred to as the "liquidating amount") of taxes or contributions collected from employers and their employees from July 1, 1939 to December 31, 1939, pursuant to its unemployment compensation law. (d) The Social Security Board shall withhold from certifi- cation to the Secretary of the Treasury for payment the amounts determined by it pursuant to section 302 (a) of the Social Security_ Act to be necessary for the proper administration of each States unemployment-compensation law, until an amount equal to its "preliminary amount" plus interest from July 1, 1939, at 21/2 per centum per annum on such portion thereof as has not been used as the measure for withholding certification for payment, has been so withheld from certification pursuant to this paragraph: Provided, however, That if a State shall, prior to whichever is the later of (i) thirty days after the close of the first regular session of its legislature which begins after the approval of this Act, and (ii) July 1, 1939, authorize and direct the Secretary of the Treasury to transfer from its account in the unemployment trust fund to the railroad unemployment-compensation account in the unemployment trust fund an amount equal to its "preliminary amount", no amount shall be withheld from certification for payment to such State pursuant to this paragraph. The Social Security Board shall withhold from certification to the Secretary of the Treasury for payment the amounts determined by it pursuant to section 302 (a) of the Social Security Act to be necessary for the proper administration of each State's unemployment compensation law, until an amount equal to its "liquidating amount" plus interest from January 1, 1940, at 2, per centum per annum on such portion thereof as has not been used as the measure for with- holding certification for payment has been so withheld from certifi- 1111 Provso. Payments under State laws for any period prior to July 1, 1939. Determination of " preliminary amount" for each State. Determination of "l iquidating amount. '" Withholdings from certification until "preliminary amount" equaled, etc. 49 Stat. 626. 42 U. S. C., Supp. III, § 502. Proviso. If State authorizes transfer, certification not to be withheld. Withholdings from certification until "liq- uidating amount" equaled, etc.

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