77TH CONG. , 2D SESS.-CH. 227-APR . 8, 1942 brother or sister such amount shall be paid to the person determined by the Board to be his grandchild, by blood or through legal adoption, and alive on the day the death benefit becomes due, and if there be more than one such grandchild they shall share equally. If there be no such persons enumerated above in this subsection the Board may compensate other persons to the extent and in the proportions that they have borne the expenses of the last illness or funeral or both of such individual in an amount or amounts, and upon such conditions, as the Board may fix as equitable, but the total of such amounts shall not exceed the amount of the death benefit. "(c) No payment shall be made to any person under this section unless application therefor, in such manner and form as provided by the Board, shall have been filed, by or on behalf of any such person (whether or not legally competent), prior to the expiration of two years after the date the death benefit becomes due as provided in subsection (b) of this section. For the purpose of this subsection, if the death benefit became due as provided in subsection (b) of this section before the enactment of this amendment, such death benefit shall be considered to have become due on the date of the enactment hereof." SEC. 13. The first proviso in subsection (c) of section 1 of said Act of June 24, 1937, is hereby amended to read as follows: "Provided, however, That an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general com- mittee of a railway-labor-organization employer, not conducting the principal part of its business in the United States only when he is rendering service to it in the United States; and an individual shall be deemed to be in the service of such a local lodge or division only if (1) all, or substantially all, the individuals constituting its mem- bership are employees of an employer conducting the principal part of its business in the United States; or (2) the headquarters of such local lodge or division is located in the United States; and an indi- vidual shall be deemed to be in the service of such a general com- mittee only if (1) he is representing a local lodge or division described in clauses (1) or (2) immediately above; or (2) all, or substantially all, the individuals represented by it are employees of an employer conducting the principal part of its business in the United States; or (3) he acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer, but in such case if his office or headquarters is not located in the United States and the individuals represented by such general committee are employees of an employer not conducting the principal part of its business in the United States, only such proportion of the remunera- tion for such service shall be regarded as compensation as the propor- tion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its juris- diction, unless such mileage formula is inapplicable, in which case the Board may prescribe such other formula as it finds to be equitable :". The amendment in this section shall operate in the same manner and have the same effect as if it had been part of the Railroad Retirement Act of 1937 when that Act was enacted on June 24, 1937. SEC. 14. The first proviso in subsection (d) of section 1532 of the Internal Revenue Code, approved February 10, 1939 (53 Stat. 1), is hereby amended to read as follows: "Provided, however, That an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general committee of a railway- labor-organization employer, not conducting the principal part of its business in the United States only when he is rendering service to it 65714°-43-PT. I-14 Expenses of last ill- ness and funeral. Application for pay- ment. 50 Stat. 308 . 45U.S. . I228a(c). Proviso. Individual deemed to be in service of employer. In service of local lodge or division. In service of general committee. Retroactive provi- sion. 50 Stat. 307. 45 U. S. C .I§228a- 228r. Employment taxes. 53 Stat. 182. 26 .. C.§ 1532(d). Proviso. Individual deemed to be in service of employer. 56 STAT.] 209
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