Section 4 (a-2) of such ast is amended by renumbering subsection (iv) thereof as "(vi)" and by inserting after subsection (iii) the following:

"(iv) any of the days beginning with the day with respect to which the Board finds that he was discharged or suspended for misconduct connected with his work and ending with the fourth calendar week with respect to each of which the Board finds he shall have earned compensation of not less than $25. "(v) any of the days which the Board finds is in a maternity period of the employee."

Section 4 of such act is amended by inserting after section 4 (a-2) the following:

"(a-3) There shall not be considered a day of sickness with respect to any employee

"(i) any day which is a Sunday or which the Board finds is generally observed as a holiday in the locality in which he registered for such day, unless such day was immediately preceded by a day of unemploment or sickness and immediately followed by a day of unemployment or sickness or was the last day in a registration period and was immediately preceded by a day of unemployment or sickness: Provided, That if two or more consecutive days are a Sunday and one or more holidays, then with respect to any employee shall not be considered as days of sickness unless they were immediately preceded by a day of unemployment or sickness and immediately followed by a day of unemployment or sickness, or the last of such days was the last day of a registration period and such days were immediately preceded by a day of unemployment or sickness.

"(ii) any day which is disregarded as a day of unemployment of the employee as determined by the Board pursuant to subsection (a-2).

"(iii) any day which is in a maternity period unless the Board finds that sickness on such day is unrelated to the normal consequences of pregnancy or childbirth.

"(iv) any of the days which the Board finds to have occurred more than 90 days after the last day with respect to which the individual will have earned compensation, excluding from such 90 days any period beginning before the expiration thereof with respect to which the Board finds he was unemployed due to a stoppage of work described in section 4 (a−1) (iii) and excluding any registration period which begins, or any continuous registration periods the first of which begins before the expiration of such 90 days. For purpose of the preceding sentence a 'regulation period' shall be deemed continuous with the preceding registration period if established within 10 days after the last day of such preceding period."

DEFINITION OF DAY OF SICKNESS

SEC. 6. Section 1 (k) (2) of the Railroad Unemployment Insurance Act is amended by inserting "but would otherwise be available for work" after the phrase "he is not able to work."

DISCONTINUING MATERNITY BENEFITS

SEC. 7. Section 1 (k) of the Railroad Unemployment Insurance Act is amended by deleting from the first sentence thereof "or which is included in a maternity period."

Section 1 (1) (i) of such act is amended by deleting ", and the term 'statement of maternity sickness' means a statement with respect to a maternity period of a female employee, in each case."

Section 2 (a) of such act is amended by striking out ", and (iii) for each day of sickness in a maternity period" in the first sentence thereof, and by striking out the fourth, fifth, and sixth sentences thereof.

Section 2 (c) of such Act is amended by deleting both before the proviso and following the proviso, the identical phrases ", other than days of sickness in a maternity period," and by deleting "; and the total amount of benefits which may be paid to an employee for days of sickness in a maternity period shall in no case exceed the employee's compensation in the base year on the basis of which the employee was determined to be qualified for benefits in such maternity period."

Section 12 (i) of such Act is amended by deleting from the seventh sentence thereof "and, in the case of maternity sickness, the expected date of birth and the actual date of birth of the child."

Section 12 (n) of such Act is amended by deleting “or maternity” in each place such words occur and by deleting from the fourth sentence "or as to the expected date of birth of a female employee's child, or the birth of such child."

DISCONTINUING DIRECTIONS TO ENGAGE IN ACCIDENT RESEARCH, ETC.

SEC. 8. Section 12 (q) of the Railroad Unemployment Insurance Act is deleted.

PAYMENT OF CONTRIBUTIONS

SEC. 9. Section 8 (g) of the Railroad Unemployment Insurance Act is amended by inserting the following before the period at the end of the first sentence thereof: "Provided, That in any event such regulations shall permit any employer at his option to pay before the end of the quarter ending September 30 of any year contributions with respect to the first month, the first and second month or the first and second and any part of the third month of such quarter."

EFFECTIVE DATE

SEC. 10. The amendments made by this Act shall become effective with respect to all benefits paid in benefit years beginning after June 30, 1957, except that (a) maternity benefits in a maternity period established before and extending beyond such date shall be paid pursuant to the law as in effect prior to the amendments made by this Act and (b) the calendar year 1956 shall be the base year for a benefit year beginning July 1, 1957, in the case of any individual who would otherwise not be a qualified employee with respect to such year. The effective date of other provisions, except as otherwise specifically provided, shall be the date of enactment of this Act.

Senator MORSE. The hearing is recessed.

(Whereupon, at 12: 15 p. m., the hearing was recessed.)

SUBCOMMITTEE ON RAILROAD RETIREMENT, OF THE

COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D. C. The subcommittee met, pursuant to recess, at 10:05 a. m., in room F-39, the Capitol, Senator Strom Thurmond presiding pro tempore. Present: Senators Thurmond (presiding), Allott, and Cooper. Committee staff members present: Stewart E. McClure, chief clerk; Roy E. James, assistant chief clerk; Michael J. Bernstein, professional staff member; and Merton Bernstein, special counsel to the Subcommittee on Railroad Retirement.

Senator THURMOND. The subcommittee will come to order, please. This hearing is the resumption of the hearings on March 12, 13, and 14 on S. 360, S. 945, and S. 1313, proposals to amend the Railroad Retirement Act and the Railroad Employment Insurance Act.

Since the last hearings, two additional bills have been introduced, S. 1630 by the subcommittee chairman at the request of the American Association of Railroads, and S. 1651 by Senator Martin of Iowa. They are identical for all practical purposes. They are to be printed in the record at this point with the report of the Railroad Retirement Board.

(The documents referred to follows:)

[S. 1630, 85th Cong., 1st sess.]

A BILL To amend the Railroad Unemployment Insurance Act so as to protect benefits of bona fide railroad employees, remove certain inequities, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Railroad Unemployment Insurance Act is amended as set forth below.

DEFINITIONS OF BASE YEAR AND BENEFIT YEAR

SECTION 1. Section 1 (m) of the Railroad Unemployment Insurance Act is amended to read as follows:

"(m) The term 'benefit year' with respect to any individual means the period of three hundred and sixty-five consecutive days beginning with the first day of the first registration period after June 30, 1957, with respect to which the individual first files a valid claim for benefits, and thereafter the period of three hundred and sixty-five days beginning with the first day of the first registration period with respect to which the individual next files a valid claim for benefits after the termination of his last preceding benefit year. Any claim for benefits made in accordance with section 5 (a) shall be deemed to be a 'valid claim' for the purposes of this subsection if the individual is with respect to his base period a 'qualified employee' as defined in section 3 with respect to his base year."

Section 1 (n) of such Act is amended to read as follows:

"(n) The term 'base year' means the twelve completed calendar months immediately preceding the first day of the individual's benefit year."

DEFINITION OF QUALIFIED EMPLOYEE

SEC. 2. Section 3 of the Railroad Unemployment Insurance Act is amended to read as follows:

"SEC. 3. An individual shall be a 'qualified employee' if the Board finds that his compensation with respect to his base year will have been not less than an amount equal to the product of eighty-seven and his daily wage computed pursuant to section 2 (a), and that during his base year more than five calendar months will have been months of service used in computing his years of service for purposes of the Railroad Retirement Act of 1937, and more than one of such months of service shall have been in the last half of such base year.

"No individual who, since earning substantial compensation has received one hundred and thirty daily unemployment benefits, or exhausted his unemployment benefit rights, shall be a qualified employee with respect to further unemployment benefits until he has again earned substantial compensation, and no individual who, since earning substantial compensation has received one hundred and thirty daily sickness benefits or exhausted his sickness benefit rights, shall be a qualified employee with respect to further sickness benefits until he has again earned substantial compensation. As used in the preceding sentence, 'substantial compensation' means compensation in an amount not less than the product of 20 and the amount of the individual's last daily benefit."

WAITING PERIOD

SEC. 3. Clauses (i) and (ii) of section 2 (a) of the Railroad Unemployment Insurance Act are each amended by striking out "seven" and inserting "nine" in lieu thereof.

BENEFIT COMPUTATION AND LIMITATIONS

SEC. 4. Section 2 (a) of the Railroad Unemployment Insurance Act is amended by striking out the second sentence thereof, including the schedule, and inserting in lieu thereof the following: "The daily benefit rate of any qualified employee shall be an amount equal to 60 per centum of the daily rate of compensation after withholding taxes, for the employee's last employment in which he engaged for an employer in the base year, but not to exceed $8.50." For purposes of the preceding sentence, an employee's daily rate of compensation after withholding taxes shall be, as determined by the Board, such employee's daily rate after reduction by the amount equal to the sum of

"(1) the amount equal to the same percentage of such daily pay rate as shall be imposed by section 3201 of the Internal Revenue Code on compensation at the time of such last employment, and

(2) the amount equal to one-fifth the amount which shall be required to be withheld at the time of such last employment by section 3402 (c) of such Code on a weekly pay period basis, on wages paid in a weekly pay period in an amount equal to the product of five and such daily rate."

DISQUALIFYING CONDITIONS

SEC. 5. Section 4 (a-1) (ii) of the Railroad Unemployment Insurance Act is amended by adding, after "Social Security Act, or", "meets the qualifying work and the age or disability requirements for full annuity payments, pensions, or benefits, under one or both of such Acts and upon applying therefor could receive them, and any day in any period with respect to which the Board finds that he is receiving or will have received." Such section is further amended by striking out the colon preceding the words "Provided further" and striking out the remainder of this section after the colon and preceding the semicolon at the end thereof.

Sections 4 (a−2) (i) and 4 (a-2) (ii) are each amended by striking out "thirty" and by adding before the semicolon at the end thereof: "and ending with the fourth calendar week with respect to each which the Board finds he shall have earned compensation of not less than $25."

Section 4 (a-2) (iii) of such Act is amended by striking out ", and the Board finds that such strike was commenced in violation of the provisions of the Rail