
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC363]

 
                           TITLE 45--RAILROADS
 
               CHAPTER 11--RAILROAD UNEMPLOYMENT INSURANCE
 
Sec. 363. Exclusiveness of provisions; transfers from State 
        unemployment compensation accounts to railroad unemployment 
        insurance account
        

(a) Omitted

(b) Effect on State unemployment compensation laws

    By enactment of this chapter the Congress makes exclusive provision 
for the payment of unemployment benefits for unemployment occurring 
after June 30, 1939, and for the payment of sickness benefits for 
sickness periods after June 30, 1947, based upon employment (as defined 
in this chapter). No employee shall have or assert any right to 
unemployment benefits under an unemployment compensation law of any 
State with respect to unemployment occurring after June 30, 1939, or to 
sickness benefits under a sickness law of any State with respect to 
sickness periods occurring after June 30, 1947, based upon employment 
(as defined in this chapter). The Congress finds and declares that by 
virtue of the enactment of this chapter, the application of State 
unemployment compensation laws after June 30, 1939 or of State sickness 
laws after June 30, 1947, to such employment, except pursuant to section 
362(g) of this title, 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 1106 of title 42 shall not be 
construed to include any employer (as defined in this chapter) or any 
person in its employ: Provided, That no provision of this chapter 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 chapter shall not 
constitute ``Service with respect to which unemployment 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 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) Determination of ``preliminary amount'' for States

    The Social Security Board is 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 compensation 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) Withholding amounts from certification to States; transfers to 
        railroad unemployment compensation account

    The Social Security Board shall withhold from certification to the 
Secretary of the Treasury for payment the amounts determined by it 
pursuant to section 502(a) of title 42 to be necessary for the proper 
administration of each State's unemployment-compensation law, until an 
amount equal to its ``preliminary amount'' plus interest from July 1, 
1939, at 2\1/2\ 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 chapter, 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 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 502(a) of title 42 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\1/2\ 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 chapter, 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 insurance account in the unemployment trust fund 
an amount equal to its ``liquidating amount'', no amount shall be 
withheld from certification for payment to such State pursuant to this 
paragraph.
    The withholdings from certification directed in each of the 
foregoing 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: Provided, however, That if the Social Security Board finds 
with respect to any State that such State (1) is unable to avail itself 
of such conditions solely by reason of prohibitions contained in the 
constitution of such State, as determined by a decision of the highest 
court of such State declaring invalid in whole or in part the action of 
the legislature of the State purporting to provide for transfers from 
the State's account in the Unemployment Trust Fund to the railroad 
unemployment insurance account, and (2) for similar reasons is unable to 
use amounts withdrawn from its account in the Unemployment Trust Fund 
for the payment of expenses incurred in the administration of its State 
unemployment compensation law, the Social Security Board shall not begin 
to withhold from certification to the Secretary of the Treasury for 
payment to such State the amounts determined by it pursuant to section 
502 of title 42 and to certify to the Secretary of the Treasury for 
payment into the railroad unemployment insurance account the amount so 
withheld from such State until July 1, 1944, or until a date one hundred 
and eighty days after the adjournment of the first session of the 
legislature of such State beginning after July 1, 1942, whichever date 
is the earlier, and then only if the Social Security Board finds that 
such State had not prior thereto effectively authorized and directed the 
Secretary of the Treasury to transfer from such State's account in the 
Unemployment Trust Fund to the railroad unemployment insurance account 
amounts equal to such State's ``preliminary amount'' and ``liquidating 
amount'' less such parts thereof, if any, as the State may have, within 
the periods set forth in the provisos contained in the first two 
paragraphs of this subsection, effectively authorized and directed the 
Secretary of the Treasury so to transfer, plus interest on such 
difference, if any, with respect to each amount, at 2\1/2\ per centum 
per annum from the date the State's ``preliminary amount'' or 
``liquidating amount'', as the case may be, is determined by the Social 
Security Board; and with respect to any such State the amount withheld 
shall equal the State's ``preliminary amount'' and ``liquidating 
amount'' less such parts thereof, if any, as the State may have, within 
the periods set forth in the provisos contained in the first two 
paragraphs of this subsection effectively authorized and directed the 
Secretary of the Treasury to transfer, plus interest from July 1, 1939, 
at 2\1/2\ per centum per annum on so much of the ``preliminary amount'' 
and ``liquidating amount'', as the case may be, as has not been so 
transferred or has not been used as the measure for withholding. An 
enactment of any State legislature providing for the transfer (from the 
State's account in the Unemployment Trust Fund to the railroad 
unemployment insurance account) of all interest earned upon 
contributions which are collected with respect to employment occurring 
after such enactment by such State pursuant to its unemployment 
compensation law and credited to its account in the Unemployment Trust 
Fund (until the total of such transfers equals the amounts which 
otherwise would be required to be withheld from certification under this 
subsection), shall be deemed an effective authorization and direction to 
the Secretary of the Treasury as required by this subsection; and for 
purposes of computing the interest to be so transferred, amounts 
withdrawn by such State from its account in the Unemployment Trust Fund 
after the date of such State enactment shall be considered to be first 
charged against the amounts credited to such State's account prior to 
the date of such State enactment: Provided, however, That if at any time 
after such enactment the provision for transfer therein contained for 
any reason fails to be operative to effect the transfers of interest as 
therein prescribed, and such State has not otherwise made an effective 
authorization and direction to the Secretary of the Treasury as required 
by this subsection, the Social Security Board shall immediately after 
such failure or, on the date otherwise provided in this subsection for 
the beginning of withholdings from certification, whichever is later, 
begin to make the withholdings from certification provided for in this 
subsection in the same manner and to the same extent as if such 
enactment by such State had not been enacted, except that the amounts of 
the certifications withheld shall be reduced by the total amount, if 
any, which has been transferred from interest pursuant to such 
enactment.

(e) Transfers and withdrawals, effect upon social security provisions

    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 503(a)(5) 
and 1103(a)(4) of title 42; 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 pursuant to subsection (d) of 
this section, be deemed to constitute a breach of the conditions set 
forth in sections 503(a)(5) and 1103(a)(4) of title 42, provided the 
moneys so withdrawn are expended solely for expenses which the Social 
Security Board determines to be necessary for the proper administration 
of such State's unemployment compensation law.

(f) Payments to railroad unemployment insurance account; transfers from 
        unemployment trust fund of States

    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 501 of title 42 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 such amounts as the 
State authorizes and directs him so to transfer pursuant to subsection 
(d) of this section.

(June 25, 1938, ch. 680, Sec. 13(b)-(f), 52 Stat. 1110; June 20, 1939, 
ch. 227, Sec. 17, 53 Stat. 848; July 2, 1940, ch. 530, 54 Stat. 741; 
June 30, 1942, ch. 463, 56 Stat. 465; July 31, 1946, ch. 709, Sec. 324, 
60 Stat. 741; Pub. L. 90-257, title II, Sec. 207, Feb. 15, 1968, 82 
Stat. 25.)

                       References in Text

    Sections 1106 and 1103(a)(4) of title 42, referred to in subsecs. 
(b) and (e), respectively, which were in the original references to 
sections 906 and 903(a)(4), respectively, of the Social Security Act, as 
in existence prior to February 10, 1939, were omitted from the Code 
pursuant to section 4 of act Feb. 10, 1939, ch. 2, 53 Stat. 1, which 
provided that all laws and parts of laws codified into the Internal 
Revenue Code of 1939, to the extent that they related exclusively to 
internal revenue laws, were repealed. For further details, see Prior 
Provisions note preceding section 1101 of Title 42, The Public Health 
and Welfare. For provisions similar to sections 1106 and 1103(a)(4), see 
sections 3305 and 3304, respectively, of Title 26, Internal Revenue 
Code.

                          Codification

    Section 13(a) of act June 25, 1938, amended former section 1107 of 
Title 42, The Public Health and Welfare. Section 13(g) of act June 25, 
1938, amended section 503 of Title 42.


                               Amendments

    1968--Subsec. (b). Pub. L. 90-257 struck out all references to 
maternity benefits.
    1946--Subsec. (b). Act July 31, 1946, inserted phrases extending 
provisions of that subsection to State sickness and maternity laws and 
benefits after June 30, 1947.
    1942--Subsec. (d). Act June 30, 1942, affected provisos in third 
par.
    1940--Subsec. (d). Act July 2, 1940, affected provisos in third par.
    1939--Subsec. (e). Act June 20, 1939, substituted references to 
unemployment insurance account for references to unemployment 
compensation account wherever appearing.


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-257 effective as of July 1, 1968, see 
section 208 of Pub. L. 90-257, set out as a note under section 352 of 
this title.


                    Effective Date of 1946 Amendment

    Amendment by act July 31, 1946, effective July 31, 1946, see section 
401 of act July 31, 1946.

                          Transfer of Functions

    Functions of all other officers of Department of Labor and functions 
of all agencies and employees of Department, with exception of functions 
vested by Administrative Procedure Act (sections 551 et seq. and 701 et 
seq. of Title 5, Government Organization and Employees) in hearing 
examiners employed by Department, transferred to Secretary of Labor, 
with power vested in him to authorize their performance or performance 
of any of his functions by any officers, agencies, and employees of 
Department of Labor, by Reorg. Plan No. 6 of 1950, Secs. 1, 2, 15 F.R. 
3174, 64 Stat. 1263, set out in the Appendix to Title 5.
    Functions of Federal Security Administrator with respect to 
unemployment compensation transferred to Secretary of Labor by Reorg. 
Plan No. 2 of 1949, Sec. 1, eff. Aug. 19, 1949, 14 F.R. 5225, 63 Stat. 
1065, set out in the Appendix to Title 5. Section 1 of Reorg. Plan No. 2 
of 1949, also provided that functions transferred by this section shall 
be performed by Secretary of Labor, or subject to his direction and 
control, by officers, agencies, and employees of Department of Labor as 
he shall designate.
    Social Security Board abolished and its functions and those of its 
chairman transferred to Federal Security Administrator to be performed 
by him or under his direction and control by such officers and employees 
of Federal Security Agency as designated, by Reorg. Plan No. 2 of 1946, 
eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095, set out in the Appendix 
to Title 5. For transfer of personnel, property, records, and funds, see 
section 12 of the Reorganization Plan.


                Effect of Social Security Act Amendments

    Act Aug. 10, 1939, ch. 666, title IX, Sec. 901, 53 Stat. 1399, 
provided as follows: ``Except as provided in section 906, no provision 
of this act shall be construed as amending or altering the effect of 
section 13(b), (c), (d), (e), or (f) of the Railroad Unemployment 
Insurance Act [this section].''
    Section 906 of act Aug. 10, 1939, provided as follows: ``If the 
Social Security Board finds with respect to any State that the first 
regular session of such State's legislature which began after June 25, 
1938, and adjourned prior to thirty days after the enactment of this act 
[Aug. 10, 1939] (1) had not made provision to authorize and direct the 
Secretary of the Treasury, prior to thirty days after the close of such 
session or July 1, 1939, whichever date is later, to transfer from its 
account in the Unemployment Trust Fund to the railroad unemployment 
insurance account in the Unemployment Trust Fund an amount equal to such 
State's `preliminary amount,' or to authorize and direct the Secretary 
of the Treasury, prior to thirty days after the close of such session or 
January 1, 1940, whichever date is later, to transfer from its account 
in the Unemployment Trust Fund to the railroad unemployment insurance 
account in the Unemployment Trust Fund an amount equal to such State's 
`liquidating amount,' or both; and (2) had not made provision for 
financing the administration of its unemployment-compensation law during 
the period with respect to which grants therefor under section 302 of 
the Social Security Act [section 502 of Title 42, The Public Health and 
Welfare] are required under section 13 of the Railroad Unemployment 
Insurance Act [this section] to be withheld by the Social Security 
Board, notwithstanding the provisions of section 13(d) of the Railroad 
Unemployment Insurance Act, the Social Security Board shall not begin to 
withhold from certification to the Secretary of the Treasury for payment 
to such State the amounts determined by it pursuant to section 302 of 
the Social Security Act [section 502 of Title 42] and to certify to the 
Secretary of the Treasury for payment into the railroad unemployment-
insurance account the amount so withheld from such State, as provided in 
section 13 of the Railroad Unemployment Insurance Act [this section], 
until after the thirtieth day after the close of such State's first 
regular or special session of its legislature which begins after the 
date of enactment of this act and after the Social Security Board finds 
that such State had not, by the thirtieth day after the close of such 
legislative session, authorized and directed the Secretary of the 
Treasury to transfer from such State's account in the Unemployment Trust 
Fund to the railroad unemployment insurance account in the Unemployment 
Trust Fund such State's `preliminary amount' plus interest thereon at 
2\1/2\ per centum per annum from the date the amount thereof is 
determined by the Social Security Board, and such State's `liquidating 
amount' plus interest thereon at 2\1/2\ per centum per annum from the 
date the amount thereof is determined by the Social Security Board. 
Notwithstanding the provisions of section 13(e) of the Railroad 
Unemployment Insurance Act [this section], any withdrawal by such State 
from its account in the Unemployment Trust Fund for purposes other than 
the payment of compensation of the whole or any part of amounts so 
withheld from certification with respect to such State pursuant to this 
act shall be deemed to constitute a breach of the conditions set forth 
in sections 303(a)(5) of the Social Security Act [section 503 of Title 
42] and 1603(a)(4) of the Internal Revenue Code [section 1603 of former 
Title 26, Internal Revenue Code of 1939]. The terms `preliminary amount' 
and `liquidating amount', as used herein, shall have the meanings 
defined in section 13 of the Railroad Unemployment Insurance Act [this 
section].''


                                Kentucky

    Act Oct. 26, 1945, ch. 434, 59 Stat. 550, as amended by Reorg. Plan 
No. 2 of 1946, Sec. 4, eff. July 16, 1946, 11 F.R. 7873, 60 Stat. 1095, 
provided that $1,260,000 should constitute the total amount withheld by 
the Federal Security Administrator under subsec. (d) of this section for 
payment for the administration of Kentucky's Unemployment Compensation 
Law, KRS 341.010-341.990.

                  Section Referred to in Other Sections

    This section is referred to in sections 360, 363a, 364 of this 
title.
