                                 CODE OF VIRGINIA

CONTINGENCIES AFFECTING OPERATION OF TITLE (§ 60.2-103)

A. In the event that Chapter 23 of the Internal Revenue Code (26 U.S.C. &#xA7;
3301 et seq.) is repealed, amended or otherwise changed by the Congress of the
United States, or is finally adjudged invalid or unconstitutional by the Supreme
Court of the United States, with the result that no portion of the taxes
required by this title can be credited against any tax imposed by Chapter 23 of
the Internal Revenue Code (26 U.S.C. &#xA7; 3301 et seq.), the Governor shall,
within sixty days from the date of such repeal, amendment or change, or from the
date that such act is so finally adjudged invalid or unconstitutional, by
proclamation so state. Upon the issuance of such proclamation, the provisions of
this title shall expire by limitation and thereafter have no force and effect,
except that the Commission shall thereupon requisition all moneys standing to
the credit of the Commonwealth in the Unemployment Trust Fund established by
Section 904 of the Social Security Act (42 U.S.C. &#xA7; 1104). All such moneys
so refunded, repaid or returned to the Commonwealth, together with such other
money paid to the Commonwealth as taxes under the terms of this title and then
held by the Commonwealth, less the cost of making the refund and repayment,
shall forthwith be refunded or repaid by the State Treasurer, upon warrants of
the Comptroller, issued upon vouchers signed by the Commissioner, or by such
other person as the Commissioner may designate for that purpose, to the
individual employers, ratably in proportion to the amounts paid by each such
employer, who have paid taxes under the terms of this title.

B. In the event that the Secretary of Labor of the United States shall withdraw
his approval of this title, with the result that no portion of the taxes
required by this title with respect to employment during any year can be
credited against any tax imposed by Chapter 23 of the Internal Revenue Code (26
U.S.C. &#xA7; 3301 et seq.) with respect to employment for such year, the
provisions of this title requiring the payment of taxes shall become and remain
suspended until such credit can be had.

HISTORY: Code 1950, § 60-25; 1956, c. 440; 1968, c. 738, § 60.1-29; 1986, c.
480.