"(2) If an advance or advances have been made to the unemployment account of a State under title XII of the Social Security Act, and if any balance of such advance or advances Ante, p. 671. has not been returned to the Federal unemployment account as provided in that title before December 1 of the taxable year, then the total credits (after other reductions under this section) otherwise allowable under this section for such taxable year in the case of a taxpayer subject to the unemployment compensation law of such State shall be reduced "(A) in the case of a taxable year beginning with the fourth consecutive January 1 on which such a balance of unreturned advances existed, by 5 per centum of the tax imposed by section 1600 with respect to the wages paid by 26 USC 1600. such taxpayer during such taxable year which are attributable to such State; and 68 Stat. 672. "(B) in the case of any succeeding taxable year beginning 68 Stat. 673. For the purposes of this paragraph, wages shall be attributable to Wages. SEC. 5. (a) (1) Section 303 (a) (5) of the Social Security Act is 60 Stat. 991. hereby amended by striking out the semicolon and inserting in lieu 42 USC 503(a) (5). thereof a colon and the following: "Provided further, That the amounts specified by section 903 (c) (2) may, subject to the conditions Ante, p. 670. prescribed in such section, be used for expenses incurred by the State for administration of its unemployment compensation law and public employment offices;". (2) Section 1603 (a) (4) of the Internal Revenue Code is hereby 26 USC 1603 amended by striking out the semicolon and inserting in lieu thereof (a)(4). a colon and the following: "Provided further, That the amounts speci fied by section 903 (c) (2) of the Social Security Act may, subject to Ante, p. 670. the conditions prescribed in such section, be used for expenses incurred by the State for administration of its unemployment compensation law and public employment offices;". (3) Section 1607 (f) of the Internal Revenue Code is hereby 26 USC 1607(f). amended by striking out the period at the end thereof and inserting in lieu thereof a colon and the following: "Provided further, That the amounts specified by section 903 (c) (2) of the Social Security Act Ante, p. 670. may, subject to the conditions prescribed in such section, be used for expenses incurred by the State for administration of its unemploy ment compensation law and public employment offices.". (b) Section 904 (a) of the Social Security Act is hereby amended 58 Stat. 789. by striking out "or deposited pursuant to appropriations to the Federal 42 USC 1104(a). unemployment account" and inserting in lieu thereof ", or otherwise deposited in or credited to the Fund or any account therein". (c) Section 904 (b) of the Social Security Act is hereby amended 49 Stat. 641. by adding at the end thereof the following new sentence: "Advances 42 USC 1104(b). to the Federal unemployment account pursuant to section 1202 (c) Ante, P. 672. shall not be invested." 42 USC 1104(e). Ante P. 671, Ante, p. 672. 42 USC 1104(g). 61 Stat. 794; 64 Stat. 560. (d) Section 904 (e) of the Social Security Act is hereby amended by adding at the end thereof the following new sentence: "For the purposes of this subsection, the average daily balance shall be computed"(1) in the case of any State account, by reducing (but not below zero) the amount in the account by the aggregate of the outstanding advances under section 1201 from the Federal unemployment account, and 8 "(2) in the case of the Federal unemployment account, (A) by adding to the amount in the account the aggregate of the reductions under paragraph (1), and (B) by subtracting from the sum so obtained the aggregate of the outstanding advances from the Treasury to the account pursuant to section 1202 (c)." (e) Section 904 (g) of the Social Security Act is hereby repealed. (f) (1) Clause (2) of the second sentence of section 904 (h) of the Social Security Act is hereby amended to read as follows: "(2) the excess of taxes collected under the Federal Unemployment Tax Act 42 USC 1104(h)./ after June 30, 1946, and prior to July 1, 1953, over the unemployment administrative expenditures made after June 30, 1946, and prior to July 1, 1953". 68 Stat. 673. 68 Stat. 674. (2) The third sentence of such section 904 (h) is hereby repealed. Approved August 5, 1954. Chapter 1139 2d Session S. 3482 AN ACT All 68 Stat. 988. To amend the District of Columbia Unemployment Compensation Act, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the District District of of Columbia Unemployment Compensation Act, approved August Columbia. 28, 1935 (49 Stat. 946), as amended (title 46, ch. 3, D. C. Code, 1951 Unemployment edition), is further amended as follows: Oompensation. Section 1 (b) (2) (B) is amended by adding at the end thereof the 57 Stat. 100. following: "Service shall be deemed to be localized within a State if "(i) the service is performed entirely within such State; or (ii) the service is performed both within and without such State, but the service performed without such State is incidental to the individual's service within the State, for example, is temporary or transitory in nature or consists of isolated transactions.' Section 1 (b) (4) is amended to read as follows: D. C. Code 46- Service within a "(4) Notwithstanding any other provisions of this subsection, the Service on vesterm employment shall also include all service performed after the sels. effective date of this amendment by an officer or member of the crew of an American vessel on or in connection with such vessel, provided that the operating office, from which the operations of such vessel operating on navigable waters within or within and without the United States are ordinarily and regularly supervised, managed, directed, and controlled, is within the District." Section 1 (b) (5) is amended by adding at the end thereof the following subsections: 66 "(Q) service performed on or in connection with a vessel not an American vessel by an individual if he performed service on and in connection with such vessel when outside the United States; "(R) service performed by an individual in (or as an officer or member of the crew of a vesssel while it is engaged in) the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life (including service performed by any such individual as an ordinary incident to any such activity), except (A) service performed in connection with the catching or taking of salmon or halibut, for commercial purposes, and (B) service performed on or in connection with a vessel of more than ten net tons (determined in the manner provided for determining the register tonnage of merchant vessels under the laws of the United States)." Section 1 (b) is amended by adding at the end thereof the following subsections: re "(7) Notwithstanding any of the provisions of subsection 1 (b) (5) Services in emof this Act, services shall be deemed to be in employment if with ployment. spect to such services a tax is required to be paid under any Federal law imposing a tax against which credit may be taken for contributions required to be paid into a State unemployment compensation fund. (8) (i) Any service performed for an employing unit, which is excluded under the definition of employment in section 1 (b) (5) and with respect to which no payments are required under the employment security law of another State or of the Federal Government may be deemed to constitute employment for all purposes of this Act: Pro- Election by vided, That the Board has approved a written election to that effect employing unit. filed by the employing unit for which the service is performed, as of All 68 Stat. 989. D. C. Code 46301. "Benefit year." the date stated in such approval. No election shall be approved by the Board unless it (A) includes all the service of the type specified in each establishment or place of business for which the election is made, and (B) is made for not less than two calendar years. "(ii) Any service which, because of an election by an employing unit under section 1 (b) (8) (i), is employment subject to this Act shall cease to be employment subject to the Act as of January 1 of any calendar year subsequent to the two calendar years of the election, only if not later than March 15 of such year, either such employing unit has filed with the Board a written notice to that effect, or the Board on its own motion has given notice of termination of such coverage.' Section 1 (c) is amended by repealing subsection (1) and renumbering subsection (2) to be subsection (1) and subsection (3) to be subsection (2) and subsection (4) to be subsection (3). Section 1 (h) is amended to read as follows: "(h) 'Benefit year' with respect to any individual means the fiftytwo consecutive-week period beginning with the first day of the first week with respect to which the individual first files a valid claim for benefits, and thereafter the fifty-two consecutive-week period beginning with the first day of the first week with respect to which the individual next files a valid claim for benefits after the termination of his last preceding benefit year. Any claim for benefits made in accordance with section 11 of this Act shall be deemed to be a 'valid claim' for the purposes of this subsection if the individual has during his base period "Valid claim." been paid wages for employment by employers as required by the pro D. C. Code 46311. Post, P. 993. "Employment office." "American vessel." "Principal base period employer." D. C. Code 46303. Interest on reserve. visions of section 7 of the Act." Section 1 (m) is amended to read as follows: "(m) 'Employment office' means a free public employment office or branch thereof operated by this or any other State as a part of a Statecontrolled system of public employment offices or by a Federal agency or any agency of a foreign government charged with the administration of an unemployment-insurance program or free public employment offices." Section 1 is amended by adding at the end thereof the following subsections: "(t) The term 'American vessel' means any vessel documented or numbered under the laws of the United States; and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew performs service solely for one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any State. "(u) The term 'principal base period employer' means the employer that paid a claimant the greatest amount of wages used in the computation of his claim. In the event two or more employers paid the claimant identical amounts, the employer in such group for whom the claimant most recently worked shall be the principal base period employer." Section 3 (c) (1) is amended by adding at the end thereof the following: "Each year the Board shall credit to each of such accounts having a positive reserve on the computation date, the interest earned by such accounts from the Federal Government. This shall be done by averaging the interest rate paid for the four quarters ending on the computation date and crediting to each such account the amount which the reserve on such computation date would earn at such average rate of interest." Section 3 (c) (2) is amended by adding at the end thereof the following: All 68 Stat. 990. ment. 60 Stat. 527. "The principal base period employer shall be notified of each pay- Notice of payment of benefits to a claimant at the time of such payment." Section 3 (c) (7) (a) is amended to read as follows: "(a) If 25 per centum or more of the business of any employer is D. C. Code 46transferred, the transferee shall be determined a successor for the purposes of this section. "(i) If the Board is unable to get information upon which to determine whether or not 25 per centum of the business has been transferred, it may, in its discretion, make such determination based upon the quarterly payrolls of the employers involved for the last complete calendar quarter prior to the transfer and the first complete calendar quarter after such transfer. "(ii) In the event of a transfer of 25 per centum or more of the assets of a covered employer's business by any means whatever, otherwise than in the ordinary course of trade, such transfer shall be deemed a transfer of business and shall constitute the transferee a successor hereunder, unless the Board, on its own motion or on application of an interested party, finds that all of the following conditions exist: "(1) The transferee has not assumed any of the transferor's obligations; "(2) The transferee has not continued or resumed transferor's goodwill; "(3) The transferee has not continued or resumed the business of the transferor, either in the same establishment or elsewhere; and "(4) The transferee has not employed substantially the same employees as those the transferor had employed in connection with the assets transferred." Section 3 (c) (7) (c) is amended to read as follows: "(c) The successor shall take over and continue the employer's account, including its reserve and all other aspects of its experience under this section, in proportion to the payroll assignable to the transferred business as determined for the purposes of this section by the Board. However, his successor shall take over only the reserve actually credited to the account of the transferor or for which the transferor has filed a claim with the Board at the date of transfer. The successor shall be secondarily liable for any amounts owed by the employer to the fund at the time of such transfer; but such liability shall be proportioned to the extent of the transfer of business and shall not exceed the value of the assets transferred." Section 3 (c) (7) (d) is amended to read as follows: 303. Transfer of business; suooessor. "(d) The benefit chargeability of a successor's account under sec- Benefit chargetion 3 (c), if not accrued before the transfer date, shall begin to accrue ability. on the transfer date in case the transferor's benefit chargeability was then accruing; or shall begin to accrue on the date otherwise applicable to the successor, or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor's benefit chargeability was not accruing on the transfer date. Similarly, benefits from a successor's account, if not chargeable before the transfer date, shall become chargeable on the transfer date, in case the transferor was then chargeable for benefit payments; or shall become chargeable on the date otherwise applicable to the successor or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor was chargeable for benefit payments on the transfer date." Section 3 (c) (7) (f) is amended to read as follows: "(f) Notwithstanding any other provisions of this section, if the Successor's successor employer was an employer subject to this Act prior to the rate of contridate of transfer, his rate of contributions the remainder of the calendar butions. |