r **OFFICE OF**  **THE A-ITORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

. .

Hen. Olauae **A.** roilliaas ahairman and ExsoutiTo~Pfreotor

departnyaut pon.thhe

**, 1944,**  rh&oh we quote **8iO raOt8**  Md the exact

**iA** Vermn'a- dioil ompon@etioti

Aot, on nta.rsade as iollowst

p pgtentlal‘rlght5 to beneilts aooumulated under.-ths:snplojnrarrt opmpeneatlOn

**Lana** oi.severalStates **Or ’**  **andOr i3UOh**  **8 ~.h?itW**  **Or the**  **mkfIi aOVOWZUId**  **Or** both, ma~r oenatlt~te.@s~b&s Z&r; the payment OS **benet~ts through**  **a** &ngU appropriabe agenay- antler term% whloh the -Commission ffitde'will

be.fair~an&~rsasonable as to all artsctad interests and~dll not be llabls in any substantialloss to the Fund.*

### 52

Bon, Cleudk **A.** Wflliams,page 2

vThls seatlon oontaina two authorisationd~, the firet permittingraoiproaalooveregeagreements with respeot to tar liabilityand the seoond, dealingwith benefit payments,reading aa iollows:
v*The Commissionie hereby authorizedto enter into arrangenants

with the appropriate agenoise of other 3tatss or the FederalCovernmant

. . . whereby potential rights to benefits eoouavil.ated under the employmentoompensation law of several States or under suoh a law of the Federal Govertient,or both, any oonstitutathe basis'rorthe paymsnt or benefits througha ringle appropriateagency **under** terms whloh.

the Cammleei~ Sindswill be fair and reasonableas to aJ.Laffaoted intarestaand will not **result** in any substantial~loss to the FIX&*
"The ~unamployment

oompensatlon

laws of other states hqve,the sama or stroller provisionsand under euoh provisions the Intsrstate~Con$!srenoe f EmploymentSeourltyAgenolee hasprepared,a plan whereby,oleimants who,here aooumulated waga are(U.~s

in several ciffarentstates may be paid benefits through a single.sgsnoy. This plan will be operative with respeot to any particularstate only after the.agenoyof suoh state subscribesto suoh plan. U&es this arrangement when e~olaimis filed in one stats; thatstate is to seoure trausaripte~

of the slaimant.~s

wage oredlta from other states in whioh he may have aooumulateii oredits. The state having the largeat. proportionof his wagaorsdlts will be known es the 'payingateta.' On the basis of the olelmant(stotal wage oredits, the *payingatats'will make a determination ok %be olalm in eooordanoswith its awn laws and will pay the oleimantaooordingly. The.other stateswhere the olalmant **had** wage oreditswill reimbursethe 'paying state* for pert or the benefitspaid ta the olelmanton a prop r&t+ basle. That Is, it will transmit that portion OS ths total benerits paid to olaimant ourrespoading.to the ratio of olaI.mant*s wage oreOLts in that state to his totalwage oredits. Wonegs reqtzlaltioned from the aooount of the~stete of Texas In tha,.Unamployment Trust Fun& In tha United States Treesury,are

depoeitedvith the Treesurarof th6 State of Texae to be us&by this Caaunfselon for the -payment

or unemploymsntbenefits., ::r‘e requaet your edvloe es to whether or not th.f.s

Gommlasionmay enter gnto suoh reofprooelagreements as ara outlinedabove and, if we do enter into suah agreements,. . . 

### 53

Hohr Claude **A.** Wllllena,pegs 3

we may transnlt,**by aeena**  or a warrant drawn by the Uomptralleron **the State**  **Treaaorer, to**  other **atatea** auoh amottnta

au laay be due them by meson of their having paid bsnafita to olelmnta, beasd in part on auoh wage oradlta ea auah olaimtmtsnay have with i&La OcmmIaaion.~
Our raaaerohdlsoloaea that thea haa baan little, ii any,judIoial detamin5tlon or oonetruoti~ of Seation 17a, (Artlola5221~15a, 7. A. 0. 8.) of our Texea Unemploymant Cam~atlon **Aot, or**  aimiler aota of other states, all er~whloh era aubatantlally

the eew aa our own. Of oour5et judIoiel aonatruotion

and oonilrnetIon

would be helpful, but wa do hot daea it aaaantlal to support the oonoluaiona wa have hare reaohedr Sootion 196 Subaaatloua 1 , (2) and (3) (Artlaio 5221~17g, subaeotion8 t1,, (21, and 3 ) v. d. 0. 8.) ‘0r Our 11 uttStE.pl5ymOrlt ~tXitpCUl8&tiOtt Ad dm.ttO8 “Om~~oytwnt”, and it is Obaemed that Subaeotlona (a) and (3) tharaor~daal prlaurI.ly with servIoe8parformed under oartain oo@itIona both wIthIn **and. wltfmut**  the **Stat06** They read aa rollaa, quoting: ~~OIQ the orrioial oopy of the Taxa UnamploymaatOompenaation Aott v(2) The term tamploymant* shall iholude en indIviduol’a entire 8er~lo0,perrormedwithin or both within atta dtht this ‘atate, tit *.(A) The sarvIoe Is looallaed in this etatat or: v(B) The aervfoe is not looallaad In eny stats but aone or ths senloe Is puforaed in this state and (I) the baaa of oparatlona,or if there la 110base of operations than the plaos from w hi oh au& 8WvIaa la direoted or oontrolled, fa in thla state; or (Ii) the baas of operations or plaoa from whioh suoh seniee la direoted ore aontrolled Is not in any state In whloh awe part of the **aenioe** is petiormadbut the lndlvlduelta resIdenos la It~thia stats.

“ (3) (A) Servioe not ooverad under Paragraph (2) of **thla sub-5eotion**  end parfarn89d antirelywithout this stats,ulth reapeot to no pert or whioh oontrlbutions are required end paid under en,unamployment oomponaatlonlew or eny other state shall be deemad to be amployment subjeot to this Aoi if the Individualperformingauoh aenIoe8 la a resident of’ this atate end tha Commission approvea the eleotionof the amploylngunit for whom auoh aervloes are parrormaa that the entire aervioe of suoh indlviduel shall be deemed to be employmentsub&at to this Aot.mm. Claude **A.** Wuliaas, **Page 4** 

“(B) Sarviaae oovatiad by raalpraaalagreemanta authartiadbp thle **dot** batwaen, the CbmaUsion and the aeana~ ahargedwith the adminlWu8ion o f any other a&da of Iaderal tU+aplaymant oompansation

law, pursuant to whloh all sartiaesperfarmedby an individualtar an amplayingunit ara deamad to ba perform&dantirelywithin this (Ibute,

shall be daamed to ba anploymqnt, if th. Cammilralon

haa approved an aleotionof the amplow unit for whom suoh earrioas ware uhioh the ~nntiti

mrvloe of suoh ~~~lp~~‘t~ pariod oovaradby suoh bleationis deemed to be smploymant subjaat to thla **Aot. ”** 
It im to be noted that Subsaotfon (3) ‘ipi Qi+idad into psrsgraphs**A** and B, reclpsotfoely. ParagrQh A is obviously daaignad to oo?er eerrtcras purformadantiraly without tha State by **a ’**  **reddant oi**  **this State,**  **but** with **respectt** to whioh **oontribu** tiona ere not.

raquirad0.tka

paid under an amploymantoonpan8atian aot **or anj**  othar **&ate,** In **other worda**  it is designed to provide that a rbs%didefit or this State is not ta ba.daprivad of the benefits OS the law, **although** ~a.1 of the serviooaperrormadby him may ba in another state* Paragraph B of Sub$aotlon (.3) apaoifi~ally owers aerrioaspariormadunder reoiprooalagreamante authoriaad by Saotion L7a, auprn, or **our State**  UnampleymantGampansation **Aet, and**  **under this**  **may rall**  oarvioaa performedin two or mere states, and in euoh ouaes a8 the amployaadose not qua$lfy under any of the praoading oonditions,that is, the **errvioa ”**  **ia** not looalixad in **this** Stats there la no base or operationor plaoa from whioh said eenfaa 1

s oontraotadin this Statej tha base oil operation or plaoe from whiiah such servioesam **direotad** la not in any abate,but the amp&oyaa is a resiaant of **thle** State; that tha I)eMiOe is~

peri'omdd ~tiral~ Without thi8 .State bUtZ with raspaob to whloh oantributiona are not required uu& paid under the laua of any other state, buttha employee 16 a rasidant of this State. To exprase it anotherway, the raaiprooal provisionproridad In Saatian l7a and paragraphB of 178, Subeaotion3, supra, affords a math&d OS aooordingbanafite to employeeanat OthaXWiSa prwided for in the other defined tlefinitionsl of aamploymenta oontained in the **Aot.**

In the last analyaie,the purpose of thane inter&ate raolprooalprovisiona,oommoa to moat all the atatas* unemployment oompensation

aota, IO to prwitla a feasible and workablemethod by whioh one state **my pay**  benefits **aooruing in**  **one or**  **Bulre other** lion.

Olauda A. WULlanua, page 9 

### 55

I **&ate6 through**  **a** efmtrallg **oonstituted agsnop**  **I i**  

### both **as to**  ooteiage'&aamant8 with respaot ta Y i?%%%ty

I and in the papant of bmeitt liabilitJr, thus iaoilltatiug and ~~iE~llfyl6g the aUmh56tmtlon af the law where interstate ralatiaf#hip

beaamas sn imports& fuator.
We have tien at **S&IW** pains to 6mdysa what we oonoeiva to be t.ha

partinant provisionsof ouy UnamployaantCoaensstlonAat defining a~loynauzt~, not with the thought that % ey are not as r6ll undarrtoodby you as by 06, but 66 a pr6d.b oate for our oonolu8ions upondab we oonoaiva to be the two Pain qua6tlonofirr u6 to deeida,, Even ii we should be mistaken in some detail **ih** our **6milpl6 bf**  **our st6tutea**  defining wasu&oyaant", es they are samewhsb lntriaste,~it w4J.l not neoessarkly ! datrsot frastha two asin quastisnswe~ must! daaide and the oanelusions we have raaohad. These qwstioxu are:

Flrat '- Bass tha’raeipraoal plan proposed run oountar in sny psrtloulsr to.Saatfon303a of the Sooial SaourityAot and Seotion 16O’)a of **the** IdhrnaX R~vmua 60607

Seoand“- 18 thera 6 osnfliot,or passlbilityor oonfliot,

rith,.fxir

law prariding 

### isr the 

### oharging of unaaplop

1 ment benefitsagainst amployers~aooounts for **experlanoe** rating pprpOSOS? We shsll iirst oonslderwhether or not Saotioa 301s of tha.SooialSaourltyAot and Sastion 1603a of the Internal \ Revenue Oods oontsin provisions uhioh night present lagsl bsrriars to entering **into** suoh oooparatlresnd interstate plan. Thasa tuo **protl6le~ set**  **but the**  **requirement6** to be inoorpixstad in state lsws in onier that the state may **raoaive** htieral funds for unemploymantoampansstion administration,

and in order that the employersof the state msy qtmlify for the ninety per **oant** iadarsl oredit. An examinationof the Sooisl SsOtLrity Aot snd of the InternalRavanua Oode will not in our view di601066eny prohlbitarylimitation6that would disqualifyour State by the adoption of a multi-statearrsngsmantundar the authority speoifloslly oanfarreaupoqthe Oasunission by Seation 17a, auprs, oi our Unamployraant

Osmpsnsation

Aot. Tha second question is more diffioult to salve fsr there is aoma laok of uniformity**under** the **various** State sots as to the order in whish the employers'aooounta sra ohargad for axpsrianoarating purpoa~as.We believe,however, that thieOlasde A. ~Wi$liams, psga 6

may be obdatad and 6afaguarded by the &~mi6si6n in aedcing **raoi** ootd agraeimnts+ith aa6tJur state or 6tate6 by that port r on 13s Sbotlon 17a, sup~m; cd iOilOW6Z ".

. . under taras whioh the hI5ai66ion finds will be fair &sd r6aeosmbla q to all affeotad 1ntara6ts and will not result in any rub686ntial loss $6 the 

### Fund.*
That part of the apprapsiatlcm bill oovarlng the payaant of b6nefits 

### enaoted by 

### the 48th Le&alatwe reads as fOl3.*lorS

1 "It;

i6 6pOOifiOSuF grwided th6t 6ll 

### money8 now on deposl~ **to** the **oradlti of**  the Uneaployll)snt hapan6ati~n Bpltd, and 'aai stoneye r66eir6d ior the,

### areilit o? suoh fun!, sr& hereby appropflated fsr tl&a Qsymsnt of bansiits and refunds as autthoriaed by the prwf6ion6 of the 'Dnaaploywnt Uaapensatian Law.*
Z'rom the 

### foregolo&

it tollaws thstwa hale resohad the oonolwion that the Texas ~nes@~oymentfhupeneationOodesioa is authoriced to enter into reotproasl agraanant6with othar states, suoh 66 outlinad'ln yollr letter, and that the. Comptrsllar

of Publio A666u686 would be autharieadto issue warrants, .upon

proper 

### oertirioate from the U~mi1i6sion, ta reimburse'suahoooparatingstates,for:thci pro rata sbsra paid by thea 

### in our beheli, aoting as 

### the da6lgu6tadoentr6.l and alasring agoner, ma you are aooordis& 66 ad*lsed.

_ ;” P7-Lollar Aeeistant