Salt Lake Telegram | 1936-03-02 | Page 11 | Validity of Job Insurance Act under Question

VALIDITY OF JOB INSURANCE ACT UNDER JESTION QUESTION Six Sections of Utah Law Are at Variance With U. U S. S Statute William M. M Knerr chairman n of the state industrial commission Monday questioned validity o of Utah's unemployment insurance act and expressed a belief belie it sHould not become operative until amended by the state legislature Mr Knerr Kner returned from conferences conferences confer conter- with the national social se securIty security security se- se board at Washington on D. D C C. with word six sections of ot the Utah act are at variance with the federal federal fed fed- eral cral law a w. w The state act known as the thc unemployment unemployment unemployment un un- un- un employment reserve act was passed In advance of the federal law It will become effective upon proclamation proclamation proclamation procla procla- mation by Governor Henry H. H Blood Urges Delay Mr Knerr predicted the state act I if f placed in operation might be bethe bethe bethe the subject of litigation and said he would advise Governor Blood not not to proclaim it effective unless Attorney General Joseph Chez Is satisfied the act can be defended in court I went over our act In Jn detail with the staff of tho the social security board in Washington Mr Knerr said Thomas H. H Elliott chief counsel of the board said he would rely largely on the Utah attorney generals general's interpretation of the Utah act He indicated he would be in inclined inclined in- in dined to approve the Utah act if it the tho state attorney general could reconcile its provisions reported sections 23 24 D 27 29 30 and 42 are at variance with provisions of the federal act Section 42 gives the governor power Dower to proclaim the act effective after passage by congress of federal legislation Mr Knerr questioned legality of delegation of such power without naming of ot a date for the proclamation At Variance Section 29 he said makes the state tre treasurer surer custodian of ot unemployment unemployment reserve funds which would be collected by the industrial commission The federal act re requires requires requires re- re quires that s such ch funds be turned over to the federal government he explained Section 30 according to Mr Knerr permits the industrial commission commission com corn mission to invest surplus funds in U. U S S. land hand bank city town county or school district bonds while the thc federal act places such power with tho the federal government giving states no voice in how funds may maybe maybe be 36 invested Mr Knerr said section D 27 accepts accepts accepts ac ac- ac- ac for Utah provisions of the Wagner Wagner-Peyser employment act of 1933 and gives the Industrial commission commission com corn mission power to cooperate with the federal employment service He said ho he 10 doubted i if the commission could accept federal grants for employment employment employment employ employ- ment service without more specific legislation The Utah act would levy a 3 per percent percent percent cent payroll assessment against employers em em- coming within the province of the tho act