THE RAILROAD UNEMPLOYMENT INSURANCE ACT, 1938 WITH AMENDMENTS, 1939 + JULY 15, 1939 THE LIBRARY OF THE SEP 11939 UNIVERSITY OF. ILLINOIS UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1939 *< r* ^ TABLE OF CONTENTS ULyi C 0 |0 , 'l •s-C o r j rc C3 C/3 Section 1. 2 . 3. 4. 5. 6 . 7. 8 . 9. 10 . 11 . 12 . 13. 14. 15. 16. 17. Definitions: (a) Employer_ (b) Carrier_ (c) Company_ (cl) Employee_ (e) Service_ (f) Employee representative (g) Employment_ (h) Half-montb_ (i) Compensation_ (j) Remuneration_ (k) Day of unemployment. _ (l) Base year_ (m) Benefits_ (n) Benefit year Employment office_THE JU3EU2V-QF- -T+F _ Account_^ ____ Fund _SEP Z-H939_ United States__tiii/iGG'_ State_ Reference to other Acts_ (o) (P) (q) (r) (s) (t) (u) Benefits_ Qualifying conditions_ Disqualifying conditions_ Claims for benefits_ Conclusiveness of returns of compensation and of failure to make returns of compensation_ Free transportation_ Contributions_ Penalties_ Railroad unemployment insurance account_ __ Railroad unemployment insurance administration fund_ Duties and powers of the Board_ Exclusiveness of provisions; transfers from State unemployment com¬ pensation accounts to railroad unemployment insurance account_ District of Columbia unemployment compensation act_ Transitional provision_ Separability- Short title_ Pago 1 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 5 5 7 10 10 10 11 12 13 13 19 22 22 22 22 Ll o fS Jr J fsO AN ACT To regulate interstate commerce by establishing an unemployment insurance system for individuals employed by certain employers engaged in interstate commerce, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled , DEFINITIONS Section 1. For the purposes of this Act, except when used in amending the provisions of other Acts—■ (a) The term “employer” means any carrier (as defined in sub¬ section (b) of this section), and any company which is directly or ( 1 ) 2 indirectly owned or controlled by one or more such carriers or under common control therewith, and which operates any equipment or facility or performs any service (except trucking service, casual serv¬ ice, and the casual operation of equipment or facilities) in connection with the transportation of passengers or property by railroad, or the receipt, delivery, elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad, and any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of any such employer: Provided, however , That the term “employer” shall not include any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general steam-railroad system of transportation, but shall not exclude any part of the general steam-railroad system of transportation now or hereafter operated by any other motive power. The Interstate Com¬ merce Commission is hereby authorized and directed upon request of the Board, or upon complaint of any party interested, to determine after hearing whether any line operated by electric power falls within the terms of this proviso. The term “employer” shall also include railroad associations, traffic associations, tariff bureaus, demurrage bureaus, weighing and inspection bureaus, collection agencies, and other associations, bureaus, agencies, or organizations controlled and maintained wholly or principally by two or more employers as here¬ inbefore defined and engaged in the performance of services in con¬ nection with or incidental to railroad transportation; and railway labor organizations, national in scope, which have been or may be organized in accordance with the provisions of the Railway Labor Act, and their State and National legislative committees and their general committees and their insurance departments and their local lodges and divisions, established pursuant to the constitution and bylaws of such organizations. (b) The term “carrier” means an express company, sleeping-car company, or carrier by railroad, subject to part I of the Interstate Commerce Act. (c) The term “company” includes corporations, associations, and joint-stock companies. (d) The term “employee” (except when used in phrases establish¬ ing a different meaning) means any individual who is or has been (i) in the service of one or more employers for compensation, or (ii) an employee representative. The term “employee” shall include an employee of a local lodge or division defined as an employer in section 1 (a) only if he was in the service of a carrier on or after August 29, 1935. The term “employee” includes an officer of an employer. (e) An individual is in the service of an employer whether his service is rendered within or without the United States if he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, which service he renders for compensation: Provided, however, That an individual shall be deemed to be in the service of an employer not conducting the principal part of its business in the United States only when he is rendering service to it in the United States: Provided further, That an individual not a citizen or resident of the United States shall not be deemed to 3 be in the service of an employer when rendering service outside the United States to an employer who is required under the laws appli¬ cable in the place where the service is rendered to employ therein, in whole or in part, citizens or residents thereof. (f) The term “employee representative” means any officer or offi¬ cial represenative of a railway labor organization other than a labor organization included in the term employer as defined in section 1 (a) who before or after August 29, 1935, was in the service of an em¬ ployer as defined in section 1 (a) and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act, and any individual who is regularly assigned to or regularly employed by such officer or official representative in con¬ nection with the duties of his office. (g) The term “employment” means service performed as an employee. (h) The term “half-month” means such period of any fifteen con¬ secutive days as the Board may by regulation prescribe. (i) The term “compensation” means any form of money remuner¬ ation, including pay for time lost but excluding tips, payable for services rendered as an employee to one or more employers, or as an employee representative: Provided , however , That in computing the compensation payable to any employee with respect to any calendar month, no part of any compensation in excess of $300 shall be recognized. (j) The term “remuneration” means pay for services for hire, including pay for time lost, and tips, but pay for time lost shall be deemed earned on the day on which such time is lost. The term “remuneration” does not include (i) the voluntary payment by another, without deduction from the pay of an employee, of any tax or contribution now or hereafter imposed with respect to the re¬ muneration of such employee, or (ii) any money payment received pursuant to any nongovernmental plan for unemployment insurance. (k) Subject to the provisions of section 4 of this Act, a day of unemployment, with respect to any employee, means a calendar day on which he is able to work and is available for work and with respect to which (i) no remuneration is payable to him, and (ii) he has, in accordance with such regulations as the Board may prescribe, registered at an employment office: Provided , however, That, with respect to any employee whose normal work shift includes a part of each of two consecutive calendar days, the term “calendar day,” as heretofore used in this subsection, shall mean such equivalent period of twenty-four hours as the Board may by regulation prescribe. (l) The term “base year” means the year with respect to which an employee’s compensation is used in determining his qualification for, and the amounts of, benefits; and, with respect to any employee, shall be the last completed calendar year before the beginning of his benefit year if his benefit year begins on or after July 1 of any calendar year, and the next to the last completed calendar year before the beginning of his benefit year if his benefit year begins before July 1 of any calendar year. (m) The term “benefits” (except when used in the term “unemploy¬ ment benefits”) means the money payments payable to an employee as provided in this Act, with respect to his unemployment. 4 (n) The term “benefit year ? ” with respect to any employee, means the twelve months’ period which begins with the first day of the first half-month containing days of unemployment for which benefits are payable to him, and thereafter the twelve months’ period which begins with the first day of the first half-month, after the termination of his last preceding benefit year, containing days of unemployment for which benefits are payable to him. (o) The term “employment office” means a free employment office operated by the Board, or designated as such by the Board pursuant to section 12 (i) of this Act. (p) The term “account” means the railroad unemployment insur¬ ance account established pursuant to section 10 of this Act in the unemployment trust fund. (q) The term “fund” means the railroad unemployment insurance administration fund, established pursuant to section 11 of this Act. S Tlie term “Board” means the Railroad Retirement Board. The term “United States,” when used in a geographical sense, means the States, Alaska, Hawaii, and the District of Columbia. (t) The term “State” means any of the States, Alaska, Hawaii, or the District of Columbia. (u) Any reference in this Act to any other Act of Congress, in¬ cluding such reference in amendments to other Acts, includes a refer¬ ence to such other Act as amended from time to time. BENEFITS Sec. 2. (a) A qualified employee shall be paid benefits for each day of unemployment in excess of seven during any half-month which begins after June 30, 1939. The benefits payable to any such employee for each such day of unemployment shall be the amount appearing in the following table in column II on the line which, in column I, appears the compensation- range containing the total amount of compensation payable to him with respect to employment in his base year: Column I Column II Daily benefit Total compensation amount $150 to $190.99_$1.75 $200 to $474.99_ 2.00 $475 to $749.99_ 2. 25 $750 to $1,024.99_ 2. 50 $1,025 to $1,290.99___ 2. 75 $1,300 and over_ 3.00 (b) The benefits provided for in this section shall be paid to an employee at such reasonable intervals as the Board may prescribe. (c) The maximum benefits payable to an employee for unemploy* ment within his benefit year shall not exceed eighty times the daily benefits payable to him. (d) The provisions of section 9 of the Railroad Retirement Act of 1937 shall be applicable to benefits under this Act to the same extent and in the same manner as therein provided with respect to annuities, death benefits, and pensions. (e) No benefits shall be assignable or be subject to any tax or to garnishment, attachment, or other legal process under any circum¬ stances whatsoever, nor shall the payment thereof be anticipated. (f) If (i). benefits are paid to any employee with respect to any period, and there is later determined to be payable to such employee any remuneration with respect to such period, and (ii) the person or company from whom such remuneration is payable has, before payment thereof, notice of the payment of such benefits, the re¬ muneration so payable shall not be reduced by reason of such benefits but the remuneration so payable, to the extent of such benefits, shall be held to be a special fund in trust for the Board. The amount of such special fund shall be paid to the Board and in the collection thereof the Board shall have the same authority, and the same penalties shall apply, as are provided in section 8 of this Act with respect to contributions. The proceeds of such special fund shall be credited to the account. The amount of such benefits, to the extent that it is represented in such a special fund which has been collected by the Board, shall be disregarded for the purposes of subsection (c) of this section. (g) Benefits accrued to an individual but not yet paid at death shall, upon certification by the Board, be paid, without necessity of filing further claims therefor, to the same individual or individuals to whom any death benefit that may be payable under the provisions of section 5 of the Railroad Retirement Act of 1937 or any accrued annuities under section 3 (f) of the Railroad Retirement Act of 1937 are paid; and in the event that no death benefit or accrued annuity is so paid, such benefits accrued under this Act shall be paid as though this subsection had not been enacted. QUALIFYING CONDITIONS Sec. 3. An employee shall be qualified to receive benefits in ac¬ cordance with section 2 of this Act only if the Board finds that— (a) There was payable to him compensation of not less than $150 with respect to employment during his base year; and (b) Within six months prior to his benefit year and after June 15, 1939, he has had a waiting period of at least one half-month dur¬ ing which he had at least eight days of unemployment. No such period shall be counted for the purposes of this subsection if un¬ employment benefits have been paid with respect to the whole or any part thereof under this Act, any other Act of Congress, or under any other unemployment-compensation law. DISQUALIFYING CONDITIONS Sec. 4 (a) There shall not be considered as a day of unemploy¬ ment, with respect to any employee— (i) any of the thirty days beginning with the day with respect to which the Board finds that he left work voluntarily without good cause; (ii) any of the thirty days beginning with the day with respect to which the Board finds that he failed, without good cause, to accept suitable work available on such day and offered to him; (iii) subject to the provisions of subsection (b) of this section, any day with respect to which the Board finds that his unem¬ ployment was due to a stoppage of work because of a strike in 6 the establishment, premises, or enterprise at which he was last employed, and the Board finds that such strike was commenced in violation of the provisions of the Railway Labor Act or in violation of the established rules and practices of a bona fide labor organization of which he was a member; (iv) any of the seventy-five days beginning with the first day of any half-month with respect to which the Board finds that he knowingly made or aided m making or caused to be made any false or fraudulent statement or claim for the purpose of causing benefits to be paid; (v) any day in any period with respect to which the Board finds that he is receiving, has received, or has a right to receive compensation or other wages in lieu of notice, annuity payments, or pensions under the Railroad Retirement Act of 1935 or the Railroad Retirement Act of 1937, or old-age benefits under title II of the Social Security Act, or payments for similar purposes under any other Act of Congress; or he is receiving or has received unemployment benefits under an unemployment com¬ pensation law of any State or of the United States other than this Act; (vi) any day in any half-month with respect to which the Board finds that, pursuant to a contract of employment provid¬ ing for the determination of his compensation, wholly or par¬ tially, on a mileage basis, he earned at least tlie equivalent of eight times the schedule daily rate of compensation for the service in which he was last employed during that half-month. (b) The disqualification provided in section 4 (a) (iii) of this Act shall not apply if the Board finds that— (i) the employee is not participating in or financing or directly interested in the strike which causes the stoppage of work: Provided , That payment of regular union dues shall not be con¬ strued to constitute financing a strike or direct interest in a strike within the meaning of this and the following paragraphs; and (ii) he does not belong to a grade or class of workers of which, immediately before the commencement of the stoppage, there were members employed in the establishment, premises, or enter¬ prise at which the stoppage occurs, any of whom are participat¬ ing in or financing or directly interested in the dispute: Provided , That if separate types of work are commonly conducted in sep¬ arate departments of a single enterprise, each such department shall, for the purposes of this subsection, be deemed to be a separate establishment, enterprise, or other premises. (c) No work shall be deemed suitable for the purposes of section 4 (a) (ii) of this Act, and benefits shall not be denied under this Act to any otherwise qualified employee for refusing to accept work if— (i) the position offered is vacant due directly to a strike, lock¬ out, or other labor dispute: (ii) the remuneration, hours, or other conditions of work offered are substantially less favorable to the employee than those 7 prevailing for similar work in the locality, or the rate of remun¬ eration is less than the union wage rate, if any, for similar work in the locality; (iii) as a condition of being employed he would be required to join a company union or to resign from or refrain from join¬ ing any bona fide labor organization; (iv) acceptance of the work would require him to engage in activities in violation of law or which, by reason of their being in violation of reasonable requirements of the constitution, bylaws, or similar regulations of a bona fide labor organization of which he is a member, would subject him to expulsion from such labor organization; or (v) acceptance of the work would subject him to loss of sub¬ stantial seniority rights under any collective bargaining agree¬ ment between a railway labor organization, organized in accord¬ ance with the provisions of the Railway Labor Act, and any other employer. (d) In determining, within the limitations of section 4 (c) of this Act, whether or not any work is suitable for an employee for the purposes of section 4 (a) (ii) of this Act, the Board shall consider, in addition to such other factors as it deems relevant, (i) the current practices recognized by management and labor with respect to such work; (ii) the degree of risk involved to such employee’s health, safety, ana morals; (iii) his physical fitness and prior training; (iv) his experience and prior earnings; (v) his length of unemployment and prospects for securing work in his customary occupation; and (vi) the distance of the available work from his residence and from his most recent work. (e) For the purposes of section 4 (a) (i) of this Act, no voluntary leaving^ of work shall be deemed to have been without good cause if the Board finds that such work would not have been suitable for the purposes of section 4 (a) (ii) of this Act. CLAIMS FOR BENEFITS Sec. 5. (a) Claims for benefits and appeals from determinations with respect thereto shall be made in accordance with such regula¬ tions as the Board shall prescribe. Each employer shall post and maintain, in places readily accessible to employees in his service, such printed statements concerning such regulations as the Board supplies to him for such purpose, and shall keep available to his employees copies of such printed statements. Such printed state¬ ments shall be supplied by the Board to each employer without cost to him. (b) The Board is authorized and directed to make findings of fact with respect to any claim for benefits and to make decisions as to the right of any claimant to benefits. The Board is further author¬ ized to hold such hearings, to conduct such investigations and other proceedings, and to establish, by regulations or otherwise, such pro¬ cedures as it may deem necessary or proper for the determination of a right to benefits. 163624°—39- 2 8 (c) Each claimant whose claim for benefits has been denied upon an initial determination with respect thereto, shall be granted an opportunity for a fair hearing thereon before a district board. The Board shall establish such district boards as it may deem necessary to provide for such hearings. Each district board shall consist of three members, one of whom shall be a representative of the Board, who shall serve as chairman, one of whom shall be appointed by the Board from recommendations made by representatives of employees, and one of whom shall be appointed by the Board from recommenda¬ tions made by representatives of employers. Each of the latter two members shall not be subject to the civil-service laws or rules and shall be paid a per diem salary of such amount as the Board finds reasonable for each day of active service on such district board, plus necessary expenses. The Board may designate an alternate for each member of a district board to serve in the absence or disqualification of such member. In no case shall a hearing before a district board proceed unless the chairman thereof is present. In the absence or disqualification of any other member and his alternate, the chairman shall act alone as the district board. (d) The Board shall prescribe regulations governing the filing of cases with and the decision of cases by district boards, and the review of such decisions. The Board may provide for intermediate reviews of such decisions by such bodies as the Board may establish or assign thereto. The Board may (i) on its own motion review a decision of a district board or of an intermediate reviewing body on the basis of the evidence previously submitted in such case, and may direct the taking of additional evidence, or (ii) permit such parties as it finds properly interested in the proceedings to take appeals to the Board. Unless a review or an appeal is had pursuant to this subsection, the decision of a district board or of an intermediate reviewing body shall, subject to such regulations as the Board may prescribe, be deemed to be the final decision of the Board. (e) In any proceeding other than a court proceeding, upon a claim for benefits, the rules of evidence prevailing in courts of law or equity shall not be controlling, but a full and complete record shall be kept of all proceedings and. testimony, and the Board’s final de¬ termination allowing or denying benefits, together with its findings of fact and conclusions of law in connection therewith, shall be com¬ municated to the claimant within fifteen days after the date of such final determination. (f) Any claimant, and any railway labor organization organized in accordance with the provisions of the Railway Labor Act, of which such claimant is a member, may, only after all administrative remedies within the Board have been availed of and exhausted, obtain a review of any final decision of the Board with reference to a claim for benefits by filing a petition for review within ninety days after the mailing of notice of such decision to the claimant, or within such further time as the Board may allow, in the United States district court for the judicial district in which the claimant resides, or in the United States District Court for the District of Columbia. A copy of such petition, together with initial process, shall forthwith be served upon the Board or any officer designated by it for such 9 purpose. Service may be made upon the Board by registered mail addressed to the Chairman. Within fifteen days after receipt of service, or within such additional time as the court may allow ? the Board shall certify and file with the court in which such petition has been filed a transcript of the record upon which the findings and decision complained of are based. Upon such filing the court shall have exclusive jurisdiction of the proceeding and of the question determined therein, and shall give precedence in the adjudication thereof over all other civil cases not otherwise entitled by law to precedence. It shall have power to enter upon the pleadings and transcript of the record a decree affirming, modifying, or reversing the decision of the Board, with or without remanding the cause for rehearing. The findings of the Board as to the facts, if supported by evidence and in the absence of fraud, shall be conclusive. No additional evidence shall be received by the Court, but the court may order additional evidence to be taken before the Board, and the Board may, after hearing such additional evidence, modify its findings of fact and conclusions and file such additional or modified findings and conclusions with the court, and the Board shall file with the court a transcript of the additional record. The judgment and decree of the court shall be final, subject to review as in equity cases. An applicant for review of a final decision of the Board concern¬ ing a claim for benefits shall not be liable for costs, including costs of service, or costs of printing records, except that costs may be assessed by the court against such applicant if the court determines that the proceedings for such review have been instituted or con¬ tinued without reasonable ground. (g) Findings of fact and conclusions of law of the Board in the determination of any claim for benefits or refund and the determi¬ nation of the Board that the unexpended funds in the account are available for the payment of any claim for benefits or refund under this Act, shall be, except as provided in subsection (f) of this section, binding and conclusive for all purposes and upon all persons, includ¬ ing the Comptroller General and any other administrative or account¬ ing officer, employee, or agent of the United States, and shall not be subject to review m any manner other than that set forth in subsection (f) of this section. (h) Except as may be otherwise prescribed by regulations of the Board, benefits payable with respect to any period prior to the date of a final decision of the Board with respect to a claim therefor, shall be paid only after such final decision. (i) No claimant claiming benefits shall be charged fees of any kind by the Board, its employees or representatives, with respect to such claim. Any such claimant may be represented by counsel or other duly authorized agent, in any proceeding before the Board or its representatives or a court, but no such counsel or agent shall either charge or receive for such services more than an amount approved by the Board or by the court before whom the proceedings of the Board are reviewed. Any person who violates any provision of this subsection shall be punished by a fine of not more than $10,000 or by imprisonment not exceeding one year. 10 CONCLUSIVENESS OF RETURNS OF COMPENSATION AND OF FAILURE TO MAKE RETURNS OF COMPENSATION Sec. 6 . Employers shall file with the Board, in such manner and at such times as the Board by regulations may prescribe, returns under oath of monthly compensation of employees, and, if the Board shall so require, shall distribute to employees annual statements of compensation prepared by the Board: Provided , That no returns shall be required of employers which would duplicate information contained in similar returns required under any other Act of Con¬ gress administered by the Board. Any such return shall be conclu¬ sive as to the amount of compensation earned by an employee during the period covered by the return, and the fact that no return was made of the compensation claimed to be earned by an employee dur¬ ing a particular period shall be taken as conclusive that no com¬ pensation was earned by such employee during that period, unless the error in the amount of compensation returned in the one case, or failure to make return of the compensation in the other case, is called to the attention of the Board within eighteen months after the date on which the last return covering any portion of the cal¬ endar year which includes such period is required to have been made. free transportation Sec. 7. It shall not be unlawful for carriers to furnish free trans¬ portation to employees qualified for benefits or serving waiting periods under this Act. contributions Seo. 8. (a) Every employer shall pay a contribution, with respect to having employees in his service, equal to 3 per centum of so much of the compensation as is not in excess of $300 for any calendar month payable by him to any employee with respect to employment after June 30, 1939: Provided , however , That if compensation is payable to an employee by more than one employer with respect to any such calendar month, the contributions required by this sub¬ section shall apply to not more than $300 of the aggregate com¬ pensation payable to said employee by all said employers with re¬ spect to such calendar month, and each such employer shall be liable for that proportion of the contribution with respect to such compensation which the amount payable by him to the employee with respect to such calendar month bears to the aggregate com¬ pensation payable to such employee by all employers with respect to such calendar month. (b) Each employee representative shall pay, with respect to his income, a contribution equal to 3 per centum of so much of the com¬ pensation of such employee representative as is not in excess of $300 for any calendar month, paid to him for services performed as an employee representative after June 30, 1939. The compensa¬ tion of an employee representative and the contribution with respect thereto shall be determined in the same manner and with the same effect as if the employee organization by which such employee rep¬ resentative is employed were an employer as defined in this Act. 11 (c) In the payment of any contribution under this Act, a frac¬ tional part of a cent shall be disregarded unless it amounts to one- half cent or more, in which case it shall be increased to one cent. (d) If more or less than the correct amount of the contribution required by this section is paid with respect to any compensation, then, under regulations prescribed under this Act by the Board, proper adjustments with respect to the contribution shall be made, without interest, in connection with subsequent contribution pay¬ ments made under this Act by the same employer or employee rep¬ resentative. (e) If more or less than the correct amount of the contribution required by this section is paid with respect to any compensation and the overpayment or underpayment of the contribution cannot be adjusted under subsection (d) of this section, the amount of the overpayment shall be refunded from the account, or the amount of the underpayment shall be collected, in such manner and at such times (subject to the statute of limitations properly applicable thereto) as may be prescribed by regulations of the Board. (f) The contributions required by this Act shall be collected by the Board and shall be deposited by it with the Secretary of the Treasury of the United States, 90 per centum thereof to the credit of the account and 10 per centum thereof to the credit of the fund. (g) The contributions required by this Act shall be collected and paid quarterly or at such other times and in such manner and under such conditions not inconsistent with this Act as may be prescribed by regulations of the Board, and shall not be deducted, in whole or in part, from the compensation of employees in the employer’s em¬ ploy. If a contribution required by this Act is not paid when due. there shall be added to the amount payable (except in the case of adjustments made in accordance with the provisions of this Act) interest at the rate of 1 per centum per month or fraction of a month from the date the contribution became due until paid. Any interest collected pursuant to this subsection shall be credited to the account. (h) All provisions of law, including penalties, applicable with respect to any tax imposed by section 600 or section 800 of the Reve¬ nue Act of 1926, and the provisions of sections 607 of the Revenue Act of 1934, insofar as applicable and not inconsistent with the provisions of this Act, shall be applicable with respect to the contri¬ butions required by this Act: Provided , however , That all authority and functions conferred by or pursuant to such provisions upon any officers or employees of the United States, except the authority to institute and prosecute, and the function of instituting and prosecut¬ ing, criminal proceedings, shall, with respect to the contributions required by this Act, be vested in and exercised by the Board or such officers and employees of the Board as it may designate therefor. PENALTIES Seo. 9. (a) Any officer or agent of an employer, or any employee representative, or any employee acting in his own behalf, or any person whether or not of the character hereinbefore defined, who shall willfully fail or refuse to make any report or furnish any in- 12 formation required by the Board in the administration of this Act, or who shall knowingly make or aid in making or cause to be made any false or fraudulent statement or report vffien a statement or report is required to be made for the purposes of this Act, or who shall knowingly make or aid in making or cause to be made any false or fraudulent statement or claim for the purpose of causing benefits or other payment to be made or not to be made under this Act, shall be punished by a fine of not more than $10,000 or by imprisonment not exceeding one year, or both. (b) Any agreement by an employee to pay all or any portion of the contribution required of his employer under this Act shall be void, and it shall be unlawful for any employer, or officer or agent of an employer, to make, require, or permit any employee to bear all or any portion of such contribution. Any employer, or officer or agent of an employer, who violates any provision of this subsection shall be punished for each such violation by a fine of not more than $10,000 or by imprisonment not exceeding one year, or both. (c) Any person who violates any provision of this Act, the pun¬ ishment for which is not otherwise provided, shall be punished for each such violation by a fine of not more than $1,000 or by imprison- ment not exceeding one year, or both. (d) All fines and penalties imposed by a court pursuant to this Act shall be paid to the court and be remitted from time to time by order of the judge to the Treasury of the United States to be credited to the account. RAILROAD UNEMPLOYMENT INSURANCE ACCOUNT Sec. 10. (a) The Secretary of the Treasury shall maintain in the unemployment trust fund established pursuant to section 904 of the Social Security Act an account to be known as the railroad unem¬ ployment insurance account. This account shall consist of (i) 90 per centum of all contributions collected pursuant to section 8 of this Act, together with all interest thereon collected pursuant to section 8 of this Act; (ii) all amounts transferred or paid into the account pursuant to section 13 or section 14 of this Act; (iii) all additional amounts appropriated to the account in accordance with any provision of this Act or with any provision of law now or hereafter adopted; (iv) a proportionate part of the earnings of the unemployment trust fund, computed in accordance with the provisions of section 904 (e) of the Social Security Act; (v) all amounts realized in recoveries for over¬ payments or erroneous payments of benefits; (vi) all amounts trans¬ ferred thereto pursuant to section 11 of this Act; (vii) all fines or penalties collected pursuant to the provisions of this Act; and (viii) all amounts credited thereto pursuant to section 2 (f) or section 12 (g) of this Act. Notwithstanding any other provision of law, all moneys credited to the account shall be mingled and undivided, and are hereby permanently appropriated to the Board to be continu¬ ously available to the Board without further appropriation, for the payment of benefits and refunds under this Act, and no part thereof shall lapse at any time, or be carried to the surplus fund or any other fund. (b) All moneys in the account shall be used solely for the pay¬ ment of the benefits and refunds provided for by this Act. The 13 Board shall, from time to time, certify to the Secretary of the Treas¬ ury the name and address of each person or company entitled to receive benefits or a refund payment under this Act, the amount of such payment, and the time at which it shall be made. Prior to audit or settlement by the General Accounting Office, the Secretary of the Treasury, through the Division of Disbursements of the Treas¬ ury Department, shall make payments from the account directly to such person or company of the amount of benefits or refund so certified by the Board: Provided , however , That if the Board shall so request, the Secretary of the Treasury, through the Division of Disbursements of the Treasury Department, shall transmit benefits payments to the Board for distribution by it through employment offices or in such other manner as the Board deems proper. (c) The Board shall include in its annual report to Congress a statement with respect to the status and operation of the account. (d) The Secretary of the Treasury is hereby directed to advance to the credit of the account such sums, but not more than $25,000,000, as the Board requests for the purpose of paying benefits. Such sums shall be repaid from the account on January 1, 1941, or at such earlier time as the Board may, by agreement with the Secretary of the Treasury, determine. (e) Section 904 (a) of the Social Security Act is hereby amended to read as follows: “There is hereby established in the Treasury of the United States a trust fund to be known as the ‘unemployment trust fund, 5 herein¬ after in this title called the ‘fund. 5 The Secretary of the Treasury is authorized and directed to receive and hold in the fund all moneys deposited therein by a State agency from a State unemployment fund, or by the Railroad Retirement Board to the credit of the rail¬ road unemployment insurance account. Such deposit may be made directly with the Secretary of the Treasury or with any Federal Reserve bank or member bank of the Federal Reserve System desig¬ nated by him for such purpose.” (f) Section 904 (e) of the Social Security Act is hereby amended to read as follows: “The fund shall be invested as a single fund, but the Secretary of the Treasury shall maintain a separate book account for each State agency and the railroad unemployment insurance account and shall credit quarterly on March 31, June 30, September 30, and December 31 of each year, to each account, on the basis of the average daily balance of such account, a proportionate part of the earnings of the fund for the quarter ending on such date.” (g) Section 904 (f) of the Social Security Act is hereby amended by adding thereto the following sentence: “The Secretary of the Treasury is authorized and directed to make such pa}unents out of the fund as the Railroad Retirement Board may duly certify, not exceeding the amount standing to the railroad unemployment insur¬ ance account at the time of such payment.” RAILROAD UNEMPLOYMENT INSURANCE ADMINISTRATION FUND Seo. 11. (a) There is hereby established in the Treasury of the United States a fund to be known as the railroad unemployment insurance administration fund. This fund shall consist of (i) 10 14 per centum of all contributions collected pursuant to section 8 of this Act; (ii) all amounts advanced to the fund by the Secretary of the Treasury pursuant to this section; (iii) all amounts appropri¬ ated by subsection (b) of this section; and (iv) such additional amounts as Congress may appropriate for expenses necessary or incidental to administering this Act. Such additional amounts are hereby authorized to be appropriated. (b) In addition to the other moneys herein provided for expenses necessary or incidental to administering this Act, there is hereby appropriated to the fund such amount as the Secretary of the Treas¬ ury and the Board shall jointly estimate to have been collected or to be collectible with respect to the calendar years 1936, 1937, 1938. and 1939, from employers subject to this Act, under title IX ox the Social Security Act, less such amount as the Secretary of the Treasury and the Board shall jointly estimate will be appropriated or has been appropriated to States or Territories pursuant to the Act of Congress approved August 24, 1937 (Public, Numbered 353, Seventy-fifth Congress), as proceeds of taxes paid by employers pursuant to title IX of the Social Security Act. Until the amount appropriated by this subsection is credited to the fund, the Secretary of the Treasury is hereby directed to advance to the credit of the fund such sums, but not more than $2,000,000 J as the Board requests for the purpose of financing the costs of administer¬ ing this Act. Such advance shall be repaid from the fund at such time after the amount appropriated by this subsection is credited to the fund as the Board by agreement with the Secretary of the Treasury may determine, but not later than January 1, 1940. (c) Notwithstanding any other provision of law, all moneys at any time credited to the fund are hereby permanently appropriated to the Board to be continuously available to the Board without fur¬ ther appropriation for any expenses necessary or incidental to admin¬ istering this Act, including personal services in the District of Columbia and elsewhere; travel expenses, including expenses of at¬ tendance at meetings when authorized by the Board; actual trans¬ portation expenses and not to exceed $10 per diem to cover subsistence and other expenses while in attendance at and en route to and from the place to wtich he is invited, to any person other than an employee of the Federal Government who may, from time to time, be invited to the city of Washington or elsewhere for conference or advisory purposes m furthering the work of the Board; when found by the Board to be in the interest of the Government not exceeding 3 per centum, in any fiscal year, of the amounts credited during such year to the fund, for engaging persons or organizations, by contract or otherwise, for any special technical or professional services, deter¬ mined necessary by the Board, including but not restricted to account¬ ing, actuarial, statistical, and reporting services, without regard to section 3709 of the Revised Statutes (U. S. C., title 41, sec. 5) and the provisions of other laws applicable to the employment and com¬ pensation of officers and employees of the United States; services; advertising, postage, telephone, telegraph, teletype, and other com¬ munication services and tolls; supplies; reproducing, photographing, and all other equipment, office appliances, and labor-saving devices, including devices lor internal communication and conveyance; pur- 15 chase and exchange, operation, maintenance and repair of motor- propelled passenger-carrying vehicles to be used only for official pur¬ poses in the District of Columbia and in the field; printing and binding; purchase and exchange of law books, books of reference, and directories; periodicals, newspapers and press clippings, in such amounts as the Board deems necessary, without regard to the pro¬ visions of section 192 of the Revised Statutes; manuscripts and spe¬ cial reports; membership fees or dues in organizations which issue publications to members only, or to members at a lower price than to others, payment for which may be made in advance; rentals ? includ¬ ing garages in the District of Columbia or elsewhere; alterations and repairs; if found by the Board to be necessary to expedite the certifi¬ cation to the Board by the Civil Service Commission of persons elegi- ble to be employed by the Board and to the extent that the Board finds such expedition necessary, meeting the expenses of the Civil Service Commission in holding examinations for testing the fitness of applicants for admission to the classified service for employment by the Board pursuant to the second paragraph of section 12 (1) of this Act, but not to exceed the additional expenses found by the Board to have been incurred by reason of the holding of such exami¬ nations ; and miscellaneous items, including those for public instruc¬ tion and information deemed necessary by the Board: Provided , That section 3709 of Revised Statutes (U. S. C., title 41, sec. 5) shall not be construed to apply to any purchase or procurement of supplies or services by the Board from moneys in the fund when the aggregate amount involved does not exceed $300. Determinations of the Board whether the fund or an appropriation for the administration of the Railroad Retirement Act of 1937 and the Railroad Retirement Act of 1935. is properly chargeable with the authorized expenses, or parts thereof, incurred in the administration of such Acts, or of this Act, shall be binding and conclusive for all purposes and upon all persons, including the Comptroller General and any other administrative or accounting officer, employee, or agent of the United States, and shall not be subject to review in any manner. (d) No part of the fund shall lapse at any time or be carried to the surplus fund or any other fund, except that at the expiration of the fiscal year 1946, and of each fiscal year thereafter, there shall be transferred from the fund and credited to the account such part as the Board deems proper of the excess, if any, of the amount credited to the fund during the preceding seven fiscal years pursuant to section 8 (f) of this Act over the total amount expended by the Board during the same period for the purpose of administering this Act. DUTIES AND POWERS OF THE BOARD Sec. 12. (a) For the purpose of any investigation or other pro¬ ceeding relative to the determination of any right to benefits, or relative to any other matter within its jurisdiction under this Act, the Board shall have the power to issue subpenas requiring the attend¬ ance and testimony of witnesses and the production of any evidence, documentary or otherwise, that relates to any matter under investiga¬ tion or in question, before the Board or any member, employee, or 16 representative thereof. Any member of the Board or any of its employees or representatives designated by it may administer oaths and affirmations, examine witnesses, and receive evidence. Such at¬ tendance of witnesses and production of evidence may be required from any place in the United States or any Territory or possession thereof at any designated place of hearing. All subpenas may be served and returned by anyone authorized by the Board in the same manner as is now provided by law for the service and return by United States marshals of subpenas in suits in equity. Such service may also be made by registered mail and in such case the return post-office receipt shall be proof of service. Witnesses summoned in accordance with this subsection shall be paid the same fees and mile¬ age as are paid witnesses in the district courts of the United States. (b) In case of contumacy by, or refusal to obey a subpena lawfully issued to, any person, the Board may invoke the aid of the district court of the United States or the United States courts of any Terri¬ tory or possession, where such person is found or resides or is other¬ wise subject to service of process, or the District Court of the. United States for the District of Columbia if the investigation or proceeding is being carried on in the District of Columbia, in requiring the attendance and testimony of witnesses and the production of evidence. Any such court shall issue an order requiring such person to appear before the Board or its specified employee or representative at the place specified in the subpena of the Board, whether within or without the judicial district of the court, there to produce evidence, if so ordered, or there to give testimony concerning the matter under inves¬ tigation or in question; and any failure to obey such order of the court may be punished by said court as a contempt thereof. All orders, writs, and processes in any such proceeding may be served in the judicial district of the district court issuing such order, writ, or process, except that the orders, writs, and processes of the District Court of the United States for the District of Columbia in such pro¬ ceedings may run and be served anywhere in the United States. (c) No person shall be excused from attending or testifying in obedience to a subpena issued under this Act or from complying with any subpena duces tecum issued under this Act, 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 person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, but such person so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. (d) Information obtained by the Board in connection with the administration of this Act shall not be revealed or open to inspec¬ tion nor be published in any manner revealing an employee’s identity: Provided , however , That (i) the Board may arrange for the exchange of any information with governmental agencies engaged in functions related to the administration of this Act; (ii) the Board may dis¬ close such information in cases in which the Board finds that such disclosure is clearly in furtherance of the interest of the employee 17 or his estate; and (iii) any claimant of benefits under this Act shall, upon his request, be supplied with information from the Board’s records pertaining to his claim. (e) The Board shall provide for the certification of claims for benefits and refunds and may arrange total or partial settlements at such times and in such manner as may appear to the Board to be expedient. The Board shall designate and authorize one or more of its employees to sign vouchers for the payment of benefits and refunds under this Act. Each such employee shall give bond, in form and amount fixed by the Board, conditioned upon the faithful per¬ formance of his duties. The premiums due on such bonds shall be paid from the fund and deemed to be a part of the expense of administering this Act. (f) The Board may cooperate with or enter into agreement with the appropriate agencies charged with the administration of State, Territorial, Federal, or foreign unemployment-compensation laws or employment offices, with respect to investigations, the exchange of information and services, the establishment, maintenance, and use of free employment service facilities, and such other matters as the Board deems expedient in connection with the administration of this Act, and may compensate any such agency for services or facilities supplied to the Board in connection with the administration of this Act. The Board may enter also into agreements with any such agency, pursuant to which any unemployment benefits provided for by this Act or any other unemployment-compensation law, may be paid through a single agency to persons who have, during the period on the basis of which eligibility for and duration of benefits is deter¬ mined under the law administered by such agency or under this Act, or both, performed services covered by one or more of such laws, or performed services which constitute employment as defined in this Act: Provided , That the Board finds that any such agreement is fair and reasonable as to all affected interests. (g) In determining whether an employee has qualified for benefits in accordance with section 3 (a) of this Act, and in determining the amount of benefits to be paid to such employee in accordance with sections 2 (a) and 2 (c) oi this Aot, the Board is authorized to con¬ sider as employment (and compensation therefor) services for hire other than employment (and remuneration therefor) if such services for hire are subject to an unemployment-compensation law of any State, provided that such State has agreed to reimburse the United States such portion of the benefits to be paid upon such basis to such employee as the Board deems equitable. Any amounts collected pur¬ suant to this paragraph shall be credited to the account. If a State, in determining whether an employee is eligible, with respect to unemployment after June 30,1939, for unemployment bene¬ fits under an unemployment-compensation law of such State, and in determining the amount of unemployment benefits to be paid to such employee pursuant to such unemployment-compensation law, considers as services for hire (and remuneration therefor) included within the provisions of such unemployment-compensation law, em¬ ployment (and compensation therefor), the Board is authorized to reimburse such State such portion of such unemployment benefits as the Board deems equitable; such reimbursements shall be paid from 18 tlie account, and are included within the meaning of the word “bene¬ fits” as used in this Act. (h) The Board may enter into agreements or arrangements with employers, organizations of employers, and railway-labor organiza¬ tions which are duly organized m accordance with the provisions of the Railway Labor Act, for securing the performance of services or the use of facilities in connection with the administration of this Act, and may compensate any such employer or organization therefor upon such reasonable basis as the Board shall prescribe, but not to exceed the additional expense incurred by such employer or organiza¬ tion by reason of the performance of such services or making avail¬ able the use of such facilities pursuant to such agreements or arrange¬ ments. Such employers and organizations, and persons emploj^ed by either of them, shall not be subject to the Act or Congress approved March 3,1917 (39 Stat. 1108, ch. 163, sec. 1). (i) The Board may establish, maintain, and operate free employ¬ ment offices, and may designate as free employment offices facilities maintained by (i) a railway labor organization which is duly author¬ ized and designated to represent employees in accordance with the Railway Labor Act, or (ii) any other labor oragnization which has been or may be organized in accordance with the provisions of the Railway Labor Act, or (iii) one or more employers, or (iv) an organ¬ ization of employers, or (v) a group of such employers and labor organizations, or (vi) a State, Territorial, foreign, or the Federal Government. The Board may also enter into agreements or arrange¬ ments with one or more employers or railway labor organizations organized in accordance with the provisions of the Railway Labor Act, pursuant to which notice of the availability of work and the rights of employees with respect to such work under agreements between such employers and railway labor organizations may be filed with employment offices and pursuant to which employees regis¬ tered with employment offices may be referred to such work. The Board shall prescribe a procedure for registration of un¬ employed emplo} T ees at employment offices. Such procedure for regis¬ tration shall be prescribed with a view to such registration affording substantial evidence of the days of unemployment of the employees who register. The Board may, when such registration is made per¬ sonally by an employee, accept such registration as initial proof of unemployment sufficient to certify for payment a claim for benefits. The regulations of the Board concerning registration at employ¬ ment offices by unemployed persons may provide for group regis¬ tration and reporting, through employers, and need not be uniform with respect to different classes of employees. The operation of any employment facility operated by the Board shall be directed primarily toward the reemployment of employees who have theretofore been substantially employed by employers. (j) The Board may appoint national or local advisory councils composed of equal numbers of representatives of employers, repre¬ sentatives of employees, and persons representing the general public, for the purpose of discussing problems in connection with the admin¬ istration of this Act and aiding the Board in formulating policies. The members of such councils Stall serve without remuneration, but 19 shall be reimbursed for any necessary traveling* and subsistence expenses or on a per diem basis in lieu of subsistence expenses. (k) The Board, with the advice and aid of any advisory council appointed by it, shall take appropriate steps to reduce and prevent unemployment and loss of earnings ; to encourage and assist in the adoption of practical methods of vocational training, retraining, and vocational guidance; to promote the reemployment of unemployed employees; and to these ends to carry on and publish the results of investigations and research studies. (i) In addition to the powers and duties expressly provided, the Board shall have and exercise all the powers and duties necessary to administer or incidental to administering this Act, and in con¬ nection therewith shall have such of the powers, duties, and remedies provided in section 10 (b) (4) of the Railroad Retirement Act of 1937, with respect to the administration of said Act, as are not in¬ consistent with the express provisions of this Act. A person in the employ of the Board under section 205 of the Act of Congress approved June 24, 1937 (50 Stat. 307), shall acquire a competitive classified civil-service status if, after recommendation by the Board to the Civil Service Commission, he shall pass such noncompetitive tests of fitness as the Civil Service Commission may prescribe. The Board may employ such persons and provide for their remu¬ neration and expenses, as may be necessary for the proper administra¬ tion of this Act. Such persons shall be employed and their remu¬ neration prescribed in accordance with the civil-service laws and the Classification Act of 1923, except that the Board may fix the salary of a Director of Unemployment Insurance at $10,000 per annum: Provided , That in the employment of such persons the Board shall give preference, as between applicants attaining the same grades, to persons who have had experience in railroad service, and notwith¬ standing any other provisions of law, rules, or regulations, no other preference shall be given or recognized: And provided further , That certification by the Civil Service Commission of persons for appoint¬ ment to any positions at minimum salaries of $4,600 per annum, or less, shall, if the Board so requests, be upon the basis of competitive examinations, written, oral, or both, as the Board may request. (m) The Board is authorized to delegate to any member, officer, or employee of the Board any of the powers conferred upon the Board, by this Act, excluding only the power to prescribe rules and regulations. EXCLUSIVENESS OF PROVISIONS; TRANSFERS FROM STATE UNEMPLOYMENT COMPENSATION ACCOUNTS TO RAILROAD UNEMPLOYMENT INSURANCE account Sec. 13. (a} Effective July 1, 1939, section 907 (c) of the Social Security Act is hereby amended by substituting a semicolon for the period at the end thereof, and by adding: u (8) service performed m the employ of an employer as defined in the Railroad Unemploy¬ ment Insurance Act and service performed as an employee repre¬ sentative as defined in said Act.” (b) By enactment of this Act the Congress makes exclusive pro¬ vision for the payment of unemployment benefits for unemployment occurring after June 30, 1939, based upon employment (as defined 20 in this Act). hTo employee shall have or assert any right to unem¬ ployment benefits under an unemployment compensation law of any State with respect to unemployment occurring after June 30, 1939, based upon employment (as defined in this Act). The Congress finds and declares that by virtue of the enactment of this Act, the applica¬ tion of State unemployment compensation laws after June 30, 1939, to such employment, except pursuant to section 12 (g) of this Act, would constitute an undue burden upon, and an undue interference with the effective regulation of, interstate commerce. In furtherance of such determination, after June 30, 1939, the term “person” as used in section 906 of the Social Security Act shall not be construed to include any employer (as defined in this Act) or any 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 unemplojnnent 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 unemployment com¬ pensation is payable under an [or ‘service under any’] unemploy¬ ment compensation system [or ‘plan’] established by an Act of Congress” [or “a law of the United States”] or “employment in inter¬ state commerce, of an individual who is covered by an unemployment 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 re¬ ferred 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 unem¬ ployment compensation law of such State provides for a type of fund known as “Pooled Fund” or “Pooled Account,” that propor¬ tion 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 em¬ ployers and their employees prior to July 1, 1939, pursuant to its unemployment compensation law and credited to such fund or ac¬ count 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 (here¬ inafter referred to as the “liquidating amount”) of taxes or con¬ tributions collected from employers and their employees from July 1, 1939, to December 31, 1939, pursuant to its unemployment compen¬ sation law. (d) The Social Security Board shall withhold from certification to the Secretary of the Treasury for payment the amounts deter¬ mined by it pursuant to section 302 (a) of the Social Security Act to be necessary for the proper administration of each State’s unem¬ ployment-compensation law, until an amount equal to its “prelim¬ inary amount” plus interest from July 1, 1939, at 2y 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 21 certification pursuant to this paragraph: Provided , hoivever , 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, author¬ ize and direct the Secretary of the Treasury to transfer from its account in the unemployment trust fund to the railroad unemploy¬ ment insurance 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 neces¬ sary 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 y 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 cer¬ tification 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) January 1, 1940, authorize and direct the Secretary of the Treasury to transfer from its account in the unemployment trust fund to the railroad unemployment in¬ surance account in the unemployment trust fund an amount equal to its “liquidating amount,” no amount shall be withheld from cer¬ tification for payment to such State pursuant to this paragraph. The withholdings from certification directed in each of the fore¬ going paragraphs of this subsection shall begin with respect to each State when the Social Security Board finds that such State is unable to avail itself of the condition set forth in the proviso contained in such paragraph. (e) The transfers described in the provisos contained in the several paragraphs of subsection (d) of this section shall not be deemed to constitute a breach of the conditions set forth in sections 303 (a) (5) and 903 (a) (4) of the Social Security Act; nor shall the withdrawal by a State from its account in the unemployment trust fund of amounts, but not to exceed the total amount the Social Security Board shall have withheld from certification with respect to such State pur¬ suant to subsection (d) of this section, be deemed to constitute a breach of the conditions set forth in sections 303 (a) (5) and 903 (a) (4) of the Social Security Act, provided the moneys so withdrawn are expended solely for expenses which the Social Security Board deter¬ mines to be necessary for the proper administration of such State’s unemployment compensation law. (f) The Social Security Board is authorized and directed to certify to the Secretary of the Treasury for payment, and the Secretary shall pay, into the railroad unemployment insurance account, such amounts as the Social Security Board withholds from certification pursuant to subsection (d) of this section and the appropriations authorized in section 301 of the Social Security Act shall be available for payments authorized by this subsection. The Secretary shall transfer from the account of a State in the unemployment trust fund to the railroad unemployment insurance account in the unemployment trust fund 22 such amounts as the State authorizes and directs him so to transfer pursuant to subsection (d) of this section. (g) Section 303 of the Social Security Act is hereby amended by adding thereto the following additional subsection : “(c) The Board shall make no certification; for payment to any State if it finds, after reasonable notice and opportunity for hearing to the State agency charged with the administration of the State law— “(1) That such State does not make its records available to the Railroad Retirement Board, and furnish to the Railroad Retire¬ ment Board at the expense of the Railroad Retirement Board such copies thereof as the Railroad Retirement Board deems necessary for its purposes; or “ (2) That such State is failing to afford reasonable cooperation with every agency of the United States charged with the admin¬ istration of any unemployment insurance law.” DISTRICT OF COLUMBIA UNEMPLOYMENT COMPENSATION ACT Sec. 14. (a) Effective July 1, 1939, section 1 (b) of the District of Columbia Unemployment Insurance Act is amended by substituting a semicolon for the period at the end thereof and by adding: “(8) service performed in the employ of an employer as defined in the Rail¬ road Unemployment Insurance Act and service performed as an employee representative as defined in said Act.” This amendment shall not be construed to affect the payment of unemployment benefits at any time with respect to any period prior to July 1,1939, based upon employment performed prior to July 1, 1939. (b) The Secretary of the Treasury is authorized and directed to transfer from the account of the District of Columbia in the unem¬ ployment trust fund to the railroad unemployment insurance account in the unemployment trust fund, an amount equal to the “preliminary amount” and an amount equal to the “liquidating amount,” whenever such amounts, respectively, have been determined, with respect to the District of Columbia, pursuant to section 13 of this Act. TRANSITIONAL PROVISION Sec. 15. The restrictions in the second sentence of section 3 (b) and in section 4 (a) (v) of this Act, insofar as they involve the receipt of unemployment benefits under an unemployment compensation law of any State, shall not be applicable to any day of unemployment which occurs after June 15, 1939, but before July 1, 1939. SEPARABILITY Sec. 16. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the application of such provision to other persons or circumstances, and the remainder of this Act, shall not be affected thereby. SHORT TITLE Sec. 17. This Act may be cited as the “Railroad Unemployment Insurance Act.” Approved, June 25, 1938. (Amendments approved, June 20, 1939.) o