OFFICE OF THE ATTORNEY GENERAL OF TEXAS **AUSTIN**

Ronorabls Olvllle 8, cupaltar Chairmanand lhmoutlve Dlreator Texua Un%mploym%nt Gwnponsation Cdeufon Aimtin, Texan
War Slrr

Vember 21, 1939, reion of uubreat4ona It+17 P%Tnon*~Annofact 6ituutiw* whleh

rstlan is ame by A. k of the Z

0 that u 00rpor~th~ k&f&d &It snaftidUcli6 in wup1oymwlt bukiag; the NT& nineteen weaka of 1938, and that Z Go~at$,on had three **illd%ti&Uti6 in**  **tmiplapent** during the whole of the peer 1938.EonorablaC&d116 s. Carpd6r, **mw** 2

During tho nineteenthweek of 1938, **A** aoquIr.6 the stock of the Z Corporation, and M Corporation reduces the number of individuals In Its WI loyraent

to fly% and oontlnueaduring the rema f nIng week6 ot the **year** with five lndlridaals In Its employment. Do bl and Z Corporation6 be- ;;";" subjeot employers**by** virtue of Seation19(f)

, and, if 80, i&en?" Subseotion (1) and (4) ot aeotiac (f) of the 'Poxas T.Jncmploymcnt

Conrwnsation

Aot, 6ame baine Artfolc 5221b-17, 6upra,reads, 'In

part, 66 follow6: "(f) lDztployer'

mean8 "(1) Any employingUnit whloh~ Por soin%

por**tion** of a dny but not neOeS6arIly6iElUltall%oU6lp, in each of twenty (20) diff6tcntmaks, whether or not suah woeks am or were aonaaoutlvs, wIthin either the CUrrent or the haa or had In emplojnn6nt I) ramdine calsnda~ year, % ght (8) or more indivlduals (Irresgeative of whether the SRT% lndiYidU416are OF were sa~ploysd in each 6UOh **dey1.t** "(4) by employmentunit whioh together with on6 or pore other %LNpl%ying !iIiItB, I6 Olrn%d

or Bontrolled (by legally enforosabls mean6 or othsni6s) direotlyor lndfreotlyby the same Interest, or which owna or oantmls one or hor6 other %aploying units **‘ (by**  leeally enioroeable m%an6 or otherwleet, and whloh, If traatsd aS a aIngle.unIt with auoh other employing

unit, would be m emloyer tmdcr paMLgFaph (1) Of thf6 6Ub86otIOn;

. . .*
In the first raot altuationmantloncd In your lcttsri it la clear that eq%h Oogoratlon I6 6~ *6!ap~opIn?~ unit" **afihin** 6Ubseotlons (1) and (4) of as%tIon t,f) of ArtI%l% $i22lb-l7,~:~&upre.

An %mployIngun1.t is derimd in reotion (e) ot Artisle 5221-b-17,as follow%t

*'E#oying, tinItv

means any Individualor type of or~izstlon, inoludlnga>y . .:'.oorparation,

. l . which has or rubeequcntto fanuary 1, 1936, had in its %m$toy m.16 or mope indi-, viduals p~riomfne sorvioos Par it within t.b,fs &z&e.*

### 552

~mb-able Orville 3. Carpenter,Page 3

**In** subseotlon (&), aupti,we Tin4 that two or mom er?:loyinc

units are to be treate4 ss one If they are owzo4 or oontrolledby the eeme interest. The two ooFporatlonsmentioned in your first faot situation,are owue4 or co&rolled by the sme Interestau4 togetherhave ei,ght (8) or zore,

inditldunlsin their enploymnt. IJnder the provisionsof subsection (1) of eeation (f) of Artlole 5221b-17,we find that the eight (8) or more employees nust have Men employed for some portfon of a 4ag but not necessarilysimultaneously, in caoh of twenty (20) afsfort3nt

wco!cs, whether or not such weeks em or were oonseoutlve,within either the current or yrsoeding year.

In applyinKt!:ie

above paragraphto your Tirst feat sibuatlon,

we are of the opinionthat it is the two aorporatlons, together,to hevo the more lndivfduelsin their employmentior e (20) weeks, In the manner as spsclflsQ in said subrreotlon tl), beglnnlngfrom the time they were owue.4 or eontrolle4 by the same interest**and** not prior to that time.

**Subaeotlon** (1) of motion (f) provides that the twenty (20)weeka of em@oyment are those @within either the ourrentor preoediw oalenbaryear." We oonetrue this. provisionto mean twenty (20)weeks wholly within the current or the preasdingyear. slnoe there urs not twenty (20) weeks remeininc:

in the year 1938 (subsequent to the fortyfirstwaek), we oonoludethat the two oorporations aantioned in your first feat sltuatlonare liable for taxes under the Texss Uumployment Compensation Act after the tenainetlonof the twent$eth (20th)week or 1939* esmmlng that there are eight (8) or more indlvlduslsemployad for a part of sash of the said twenty (20) weeks.

**In** answering the.quest$.ons raise4 in your seaond faot situation we eoncluae that the two aor,orstioneoome within subaeotiona (1) an4 (&) of seoti6n for taxes under se14 &?%%%I the (f f 5221b-l7;!and

are liebl terminationof twenty r (19th'week of 1938. poret 1 20) weeks subsequentto the nineteenth

Thfa would make the two mentionea aorone liable for said taxes at the termlnntionof the thirtyAninth(39th)week of 1938 in the same manner and ior

### 553

ffanorable

Orville S. Carpenter,Page 4

the ssme reasons ea set out in the **f ’** **lrst** faot sltuntion.

**iye** wish to as11 **yaw attontlon**  to tha fact that there is o varianoabetween the~nunhcrsof the soot-ions of Artiole 522lh Vernon*.s Annotat@ Civil Statute8and the numberedSeodons rsfofiadto in your letter. 2e have used the nUnbeF6 as sot out In Vornon'a .L?notated Civil Statut.68.

Trusting that this is the Information desired, we remain Youra very truly ATTORN-EY

G~ERAL OF TEXAS

Glenn R. Lewis Aaal5tont

**Lea shoptew** 

ATTORNEYGEI\'ERA-L

OF Tz&$$