PRIOR PRINTER'S NO. 3541                      PRINTER'S NO. 3570

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2583 Session of 1988


        INTRODUCED BY COHEN, BELFANTI, PRESSMANN, KASUNIC, FREEMAN,
           CARN, LEVDANSKY, DeLUCA, WOZNIAK AND BILLOW, JUNE 22, 1988

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 28, 1988

                                     AN ACT

     1  Amending the act of June 2, 1915 (P.L.762, No.340), entitled "An  <--
     2     act providing for the creation and administration of a State
     3     Fund for the insurance of compensation for injuries to
     4     employes of subscribers thereto; declaring false oaths by the
     5     subscribers to be misdemeanors; and providing penalties for
     6     the violation thereof," providing for the transfer of certain
     7     investment earnings; and making appropriations.
     8  AMENDING THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937          <--
     9     P.L.2897, NO.1), ENTITLED "AN ACT ESTABLISHING A SYSTEM OF
    10     UNEMPLOYMENT COMPENSATION TO BE ADMINISTERED BY THE
    11     DEPARTMENT OF LABOR AND INDUSTRY AND ITS EXISTING AND NEWLY
    12     CREATED AGENCIES WITH PERSONNEL (WITH CERTAIN EXCEPTIONS)
    13     SELECTED ON A CIVIL SERVICE BASIS; REQUIRING EMPLOYERS TO
    14     KEEP RECORDS AND MAKE REPORTS, AND CERTAIN EMPLOYERS TO PAY
    15     CONTRIBUTIONS BASED ON PAYROLLS TO PROVIDE MONEYS FOR THE
    16     PAYMENT OF COMPENSATION TO CERTAIN UNEMPLOYED PERSONS;
    17     PROVIDING PROCEDURE AND ADMINISTRATIVE DETAILS FOR THE
    18     DETERMINATION, PAYMENT AND COLLECTION OF SUCH CONTRIBUTIONS
    19     AND THE PAYMENT OF SUCH COMPENSATION; PROVIDING FOR
    20     COOPERATION WITH THE FEDERAL GOVERNMENT AND ITS AGENCIES;
    21     CREATING CERTAIN SPECIAL FUNDS IN THE CUSTODY OF THE STATE
    22     TREASURER; AND PRESCRIBING PENALTIES," ESTABLISHING A
    23     SEPARATE FUND TO SUPPLEMENT THE UNEMPLOYMENT COMPENSATION
    24     FUND; PROVIDING FOR THE TRANSFER OF CERTAIN INVESTMENT
    25     EARNINGS IN THE STATE WORKMEN'S INSURANCE FUND; FURTHER
    26     PROVIDING FOR THE RATE OF CONTRIBUTION BY EMPLOYERS AND
    27     EMPLOYEES; FURTHER PROVIDING FOR THE RATE AND AMOUNT OF
    28     BENEFITS; FURTHER PROVIDING FOR ADMINISTRATIVE MATTERS AND
    29     FOR THE RECOUPMENT OF FAULT OVERPAYMENTS; MAKING
    30     APPROPRIATIONS; AND MAKING A REPEAL.

    31     The General Assembly of the Commonwealth of Pennsylvania

     1  hereby enacts as follows:
     2     Section 1.  The act of June 2, 1915 (P.L.762, No.340),         <--
     3  referred to as the State Workmen's Insurance Fund Law, is
     4  amended by adding a section to read:
     5     Section 12.1.  For the fiscal year beginning July 1, 1988,
     6  the board is hereby authorized and empowered to transfer to the
     7  unemployment compensation trigger reserve account moneys which
     8  were received by the State Workmen's Insurance Fund in any prior
     9  year as earnings on investments held by the fund. The maximum
    10  amount which may be transferred to the unemployment compensation
    11  trigger reserve account shall be one hundred and fifty million
    12  dollars.
    13     Section 2.  The following sums, or as much thereof as may be
    14  necessary, are hereby appropriated from the State Workmen's
    15  Insurance Fund for the fiscal year beginning July 1, 1988:
    16         (1)  The sum of $25,000,000 is appropriated to the
    17     Treasury Department for transfer to the Sunny Day Fund.
    18         (2)  The sum of $25,000,000 is appropriated to the
    19     Treasury Department for transfer to the Tax Stabilization
    20     Reserve Fund.
    21         (3)  The sum of $25,000,000 is appropriated to the
    22     Department of Transportation for urban mass transportation
    23     assistance for grants to local transportation organizations.
    24     Section 3.  This act shall take effect July 1, 1988.
    25     SECTION 1.  SECTIONS 301.2, 301.4 AND 301.5 OF THE ACT OF      <--
    26  DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS
    27  THE UNEMPLOYMENT COMPENSATION LAW, AMENDED OR ADDED JULY 21,
    28  1983 (P.L.68, NO.30), ARE AMENDED TO READ:
    29     SECTION 301.2.  ADDITIONAL CONTRIBUTIONS.--NOTWITHSTANDING
    30  ANY OTHER PROVISION OF THIS ACT, ALL EMPLOYERS REQUIRED TO PAY
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     1  CONTRIBUTIONS UNDER SECTION 301 OR 301.1, EXCEPT THOSE SUBJECT
     2  TO THE PROVISIONS OF SECTION 301(A)(3) AND (4) OR 301.1(G),
     3  SHALL PAY ADDITIONAL CONTRIBUTIONS [EQUAL TO SEVEN-TENTHS OF ONE
     4  PER CENTUM (0.7%) FOR CALENDAR YEAR 1984, SIX-TENTHS OF ONE PER
     5  CENTUM (0.6%) FOR CALENDAR YEAR 1985 AND FIVE-TENTHS OF ONE PER
     6  CENTUM (0.5%) FOR CALENDAR YEAR 1986 AND THEREAFTER] AT A RATE
     7  AS SET FORTH IN SECTION 301.7 ON WAGES PAID WITH REGARD TO THE
     8  LIMITATION SPECIFIED UNDER SECTION 4(X)(1) OF THIS ACT.
     9     SECTION 301.4.  CONTRIBUTIONS BY EMPLOYES.--(A)
    10  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, [FOR CALENDAR
    11  YEAR 1984 AND EVERY CALENDAR YEAR THEREAFTER] EACH EMPLOYE SHALL
    12  CONTRIBUTE TO THE UNEMPLOYMENT COMPENSATION FUND [ONE-TENTH OF
    13  ONE PER CENTUM (0.1%)] AT A RATE AS SET FORTH IN SECTION 301.7
    14  OF ALL WAGES PAID FOR "EMPLOYMENT" AS DEFINED BY THE ACT WITHOUT
    15  REGARD TO THE LIMITATION SPECIFIED IN SECTION 4(X)(1) OF THIS
    16  ACT.
    17     (B)  EACH EMPLOYER SUBJECT TO THIS ACT SHALL BE RESPONSIBLE
    18  FOR WITHHOLDING AND SHALL WITHHOLD, IN TRUST, SUCH CONTRIBUTIONS
    19  FROM THE WAGES OF HIS EMPLOYES AT THE TIME SUCH WAGES ARE PAID,
    20  AND SHALL REPORT AND TRANSMIT SUCH DEDUCTIONS TO THE DEPARTMENT
    21  FOR DEPOSIT INTO THE UNEMPLOYMENT COMPENSATION FUND, IN
    22  ACCORDANCE WITH RULES AND PROCEDURES ESTABLISHED BY THE
    23  DEPARTMENT.
    24     (C)  ANY EMPLOYER WHO IS AN INDIVIDUAL, OR ANY OFFICER OR
    25  AGENT OF ANY EMPLOYER, WHO VIOLATES THE TRUST PROVISION OF THIS
    26  SECTION, FAILS TO WITHHOLD, HOLD IN TRUST OR FAILS TO TRANSMIT
    27  TO THE DEPARTMENT ALL CONTRIBUTIONS WITHHELD FROM THE WAGES OF
    28  HIS EMPLOYES IN ACCORDANCE WITH THE RULES AND PROCEDURE
    29  ESTABLISHED BY THE DEPARTMENT SHALL BE SUBJECT TO THE PROVISIONS
    30  OF CLAUSE (2) OF SUBSECTION (A) OF SECTION 301 AND SECTIONS 308,
    19880H2583B3570                  - 3 -

     1  308.1, 308.2, 308.3 AND 309 OF THIS ACT.
     2     (D)  THIS SECTION SHALL NOT BE DEEMED TO AFFECT OR IMPAIR THE
     3  OPERATION OF ANY STATE STATUTE OR ORDINANCE OR RESOLUTION OF A
     4  POLITICAL SUBDIVISION WHICH LEVIES OR COLLECTS ANY WAGE TAX OR
     5  SIMILAR TAX. CONTRIBUTIONS MADE PURSUANT TO THIS SECTION ARE NOT
     6  INTENDED TO REDUCE OR OTHERWISE AFFECT ANY TAX ON WAGES OR
     7  SIMILAR TAX.
     8     SECTION 301.5.  SURCHARGE.--[(A)  NOTWITHSTANDING ANY OTHER
     9  PROVISIONS OF THIS ACT, ALL EMPLOYERS SUBJECT TO THIS ACT (OTHER
    10  THAN EMPLOYERS WHO HAVE ELECTED, PURSUANT TO SECTION 1102 OR
    11  1202.2, TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS) SHALL BE
    12  ASSESSED A SURCHARGE OF FIFTEEN PER CENTUM (15%) OF THE
    13  CONTRIBUTIONS DUE FOR 1983 WITHOUT REGARD TO THE TAX CREDIT
    14  GRANTED UNDER SUBSECTION (C) OF SECTION 301.3. ADDITIONAL
    15  CONTRIBUTIONS DUE UNDER THIS SECTION FOR THE PERIOD OF JANUARY
    16  THROUGH SEPTEMBER 1983 SHALL BE PAYABLE ON OR BEFORE OCTOBER 31,
    17  1983. ADDITIONAL CONTRIBUTIONS DUE UNDER THIS SECTION FOR THE
    18  PERIOD OF OCTOBER THROUGH DECEMBER 1983 SHALL BE PAYABLE ON OR
    19  BEFORE JANUARY 31, 1984. SUCH ADDITIONAL CONTRIBUTIONS DUE UNDER
    20  THIS SECTION SHALL BE COLLECTIBLE IN THE MANNER PROVIDED IN
    21  SECTIONS 308.1, 308.2, 308.3 AND 309 OF THIS ACT.
    22     (B)  THIS SECTION SHALL NOT APPLY TO CONTRIBUTIONS ON WAGES
    23  PAID DURING THE PERIOD JANUARY 1, 1983, THROUGH JUNE 30, 1983,
    24  BY JOBBERS, MANUFACTURERS, CONTRACTORS OR SUBCONTRACTORS WITH A
    25  STANDARD INDUSTRIAL CODE CLASSIFICATION OF 23 FOR WORK ON THE
    26  GOODS OR PREMISES OF THE JOBBER OR MANUFACTURER OR PERFORMING
    27  PARTS OF AN INTEGRATED PROCESS OF PRODUCTION IN THE APPAREL
    28  INDUSTRY.]
    29     NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, ALL
    30  EMPLOYERS SUBJECT TO THIS ACT (OTHER THAN EMPLOYERS WHO ARE
    19880H2583B3570                  - 4 -

     1  SUBJECT TO SECTION 1003 OR WHO HAVE ELECTED, PURSUANT TO SECTION
     2  1102 OR 1202.2 TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS) SHALL
     3  BE ASSESSED A SURCHARGE ON CONTRIBUTIONS DUE FROM EMPLOYERS AT A
     4  RATE AS SET FORTH IN SECTION 301.7. SUCH ADDITIONAL
     5  CONTRIBUTIONS DUE UNDER THIS SECTION SHALL BE COLLECTIBLE IN THE
     6  MANNER PROVIDED IN SECTIONS 308.1, 308.2, 308.3 AND 309 OF THIS
     7  ACT.
     8     SECTION 2.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
     9     SECTION 301.7  TRIGGER DETERMINATION.--(A)  ON JULY 1 OF
    10  EVERY YEAR, THE SECRETARY SHALL CALCULATE THE TRIGGER PERCENTAGE
    11  TO BE USED IN SETTING SURCHARGE AND CONTRIBUTION RATES FOR THE
    12  CONTRIBUTIONS REQUIRED UNDER SECTIONS 301.2, 301.4 AND 301.5 AND
    13  IN SETTING THE BENEFIT REDUCTION REQUIRED UNDER SECTION
    14  404(E)(4) FOR THE FOLLOWING CALENDAR YEAR. THE SECRETARY SHALL:
    15     (1)  DETERMINE THE BALANCE IN THE UNEMPLOYMENT COMPENSATION
    16  FUND;
    17     (2)  DETERMINE THE AVERAGE OF THE BENEFIT COSTS FOR THE THREE
    18  IMMEDIATELY PRECEDING FISCAL YEARS; AND
    19     (3)  CALCULATE THE PERCENTAGE THAT THE UNEMPLOYMENT
    20  COMPENSATION FUND REPRESENTS OF THE AVERAGE OF THE BENEFIT
    21  COSTS.
    22     (B)  SURCHARGE AND CONTRIBUTION RATES SHALL BE ANNOUNCED BY
    23  THE SECRETARY ON JULY 1 OF EVERY YEAR IN ACCORDANCE WITH THE
    24  FOLLOWING SCHEDULE:
    25     (1)  WHEN THE TRIGGER PERCENTAGE IS ONE HUNDRED AND FIFTY PER
    26  CENTUM (150%) OR HIGHER, THE RATE OF THE SURCHARGE ASSESSED
    27  UNDER SECTION 301.5 SHALL BE A NEGATIVE ONE AND ONE-HALF PER
    28  CENTUM (1.5%).
    29     (2)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST ONE HUNDRED AND
    30  TWENTY-FIVE PER CENTUM (125%), BUT LESS THAN ONE HUNDRED AND
    19880H2583B3570                  - 5 -

     1  FIFTY PER CENTUM (150%), THERE SHALL BE NO SURCHARGE OR
     2  CONTRIBUTION UNDER SECTION 301.2, 301.4 OR 301.5.
     3     (3)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST ONE HUNDRED TEN
     4  PER CENTUM (110%), BUT LESS THAN ONE HUNDRED TWENTY-FIVE PER
     5  CENTUM (125%):
     6     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
     7  SHALL BE FOUR PER CENTUM (4%); AND
     8     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
     9  SHALL BE FIVE HUNDREDTHS OF ONE PER CENTUM (.05%).
    10     (4)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST NINETY-FIVE PER
    11  CENTUM (95%), BUT LESS THAN ONE HUNDRED TEN PER CENTUM (110%):
    12     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    13  SHALL BE EIGHT PER CENTUM (8%); AND
    14     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    15  SHALL BE ONE-TENTH OF ONE PER CENTUM (0.1%).
    16     (5)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST SEVENTY-FIVE PER
    17  CENTUM (75%), BUT LESS THAN NINETY-FIVE PER CENTUM (95%):
    18     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    19  SHALL BE EIGHT PER CENTUM (8%);
    20     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    21  SHALL BE FIFTEEN HUNDREDTHS OF ONE PER CENTUM (0.15%); AND
    22     (III)  THE RATE OF ADDITIONAL CONTRIBUTIONS ASSESSED UNDER
    23  SECTION 301.2 SHALL BE TWENTY-FIVE HUNDREDTHS OF ONE PER CENTUM
    24  (0.25%).
    25     (6)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST FIFTY PER CENTUM
    26  (50%), BUT LESS THAN SEVENTY-FIVE PER CENTUM (75%):
    27     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    28  SHALL BE EIGHT PER CENTUM (8%);
    29     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    30  SHALL BE TWO TENTHS OF ONE PER CENTUM (0.2%); AND
    19880H2583B3570                  - 6 -

     1     (III)  THE RATE OF ADDITIONAL CONTRIBUTION ASSESSED UNDER
     2  SECTION 301.2 SHALL BE FIVE TENTHS OF ONE PER CENTUM (0.5%).
     3     (7)  WHEN THE TRIGGER PERCENTAGE IS LESS THAN FIFTY PER
     4  CENTUM (50%):
     5     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
     6  SHALL BE EIGHT PER CENTUM (8%); AND
     7     (II)  THE RATE OF ADDITIONAL CONTRIBUTION ASSESSED UNDER
     8  SECTION 301.2 SHALL BE SEVENTY-FIVE HUNDREDTHS OF ONE PER CENTUM
     9  (0.75%); AND
    10     (III)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    11  SHALL BE TWO TENTHS OF ONE PER CENTUM (0.2%).
    12     (C)  WHENEVER THE TRIGGER PERCENTAGE DETERMINED UNDER
    13  SUBSECTION (A) IS LESS THAN FIFTY PER CENTUM (50%), THE
    14  SECRETARY SHALL ANNOUNCE A REDUCTION IN THE WEEKLY BENEFIT RATE
    15  UNDER SECTION 404(E)(4).
    16     (D)  WHENEVER THE TRIGGER PERCENTAGE IS LESS THAN TWENTY-FIVE
    17  PER CENTUM (25%), ANY BALANCE REMAINING IN THE UNEMPLOYMENT
    18  COMPENSATION TRIGGER RESERVE ACCOUNT CREATED UNDER THE ACT OF
    19  JUNE 2, 1915 (P.L.762, NO.340), REFERRED TO AS THE STATE
    20  WORKMEN'S INSURANCE FUND LAW, SHALL BE TRANSFERRED TO THE
    21  UNEMPLOYMENT COMPENSATION FUND.
    22     SECTION 301.8  TRIGGER RATE REDETERMINATIONS.--(A)  BEGINNING
    23  IN 1992 AND EACH FIFTH YEAR THEREAFTER, THE SECRETARY SHALL
    24  REDETERMINE THE RATES OF THE SURCHARGE, EMPLOYE TAX, ADDITIONAL
    25  CONTRIBUTIONS AND BENEFIT REDUCTION OTHERWISE APPLICABLE UNDER
    26  SECTIONS 301.7 AND 404(E)(4). THE SECRETARY SHALL REDETERMINE
    27  THE RATES SO THAT THE UNROUNDED RATES YIELD CONTRIBUTION
    28  INCREASES AND BENEFIT REDUCTIONS, ON A CALENDAR YEAR BASIS,
    29  APPROXIMATELY EQUAL TO THE DOLLAR AMOUNTS SPECIFIED IN
    30  SUBSECTION (B). THE RATES AS REDETERMINED SHALL TAKE EFFECT ON
    19880H2583B3570                  - 7 -

     1  JANUARY 1 OF THE FOLLOWING CALENDAR YEAR AND SHALL REMAIN IN
     2  EFFECT FOR FIVE YEARS.
     3     (B)  THE RATES SHALL BE ADJUSTED TO YIELD THE AMOUNTS
     4  INDICATED AT THE FOLLOWING TRIGGER PERCENTAGES:
     5     (1)  AT LEAST ONE HUNDRED FIFTY PER CENTUM (150%), THE
     6  NEGATIVE SURCHARGE ASSESSED UNDER SECTION 301.5 SHALL RESULT IN
     7  AN EMPLOYER CONTRIBUTION REDUCTION OF EIGHTEEN MILLION DOLLARS
     8  ($18,000,000);
     9     (2)  AT LEAST ONE HUNDRED TEN PER CENTUM (110%) BUT LESS THAN
    10  ONE HUNDRED TWENTY-FIVE PER CENTUM (125%), THE SURCHARGE
    11  ASSESSED UNDER SECTION 301.5 SHALL YIELD FIFTY MILLION DOLLARS
    12  ($50,000,000) AND THE EMPLOYE TAX UNDER SECTION 301.4 SHALL
    13  YIELD THIRTY-THREE MILLION THREE HUNDRED THIRTY-THREE THOUSAND
    14  THREE HUNDRED THIRTY-THREE DOLLARS ($33,333,333);
    15     (3)  AT LEAST NINETY-FIVE PER CENTUM (95%) BUT LESS THAN ONE
    16  HUNDRED TEN PER CENTUM (110%), THE SURCHARGE ASSESSED UNDER
    17  SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
    18  ($100,000,000) AND THE EMPLOYE TAX UNDER SECTION 301.4 SHALL
    19  YIELD SIXTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX
    20  HUNDRED SIXTY-SIX DOLLARS ($66,666,666);
    21     (4)  AT LEAST SEVENTY-FIVE PER CENTUM (75%) BUT LESS THAN
    22  NINETY-FIVE PER CENTUM (95%), THE SURCHARGE ASSESSED UNDER
    23  SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
    24  ($100,000,000), THE ADDITIONAL CONTRIBUTIONS UNDER SECTION 301.2
    25  SHALL YIELD SEVENTY-FIVE MILLION DOLLARS ($75,000,000), AND THE
    26  EMPLOYE TAX UNDER SECTION 301.4 SHALL YIELD ONE HUNDRED SIXTEEN
    27  MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX
    28  DOLLARS ($116,666,666);
    29     (5)  AT LEAST FIFTY PER CENTUM (50%) BUT LESS THAN SEVENTY-
    30  FIVE PER CENTUM (75%), THE SURCHARGE ASSESSED UNDER SECTION
    19880H2583B3570                  - 8 -

     1  301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS ($100,000,000),
     2  THE ADDITIONAL CONTRIBUTION UNDER SECTION 301.2 SHALL YIELD ONE
     3  HUNDRED FIFTY MILLION DOLLARS ($150,000,000), AND THE EMPLOYE
     4  TAX UNDER SECTION 301.4 SHALL YIELD ONE HUNDRED SIXTY-SIX
     5  MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX
     6  DOLLARS ($166,666,666);
     7     (6)  LESS THAN FIFTY PER CENTUM (50%), THE SURCHARGE ASSESSED
     8  UNDER SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
     9  ($100,000,000), THE ADDITIONAL CONTRIBUTION UNDER SECTION 301.2
    10  SHALL YIELD TWO HUNDRED TWENTY-FIVE MILLION DOLLARS
    11  ($225,000,000), THE EMPLOYE TAX UNDER SECTION 301.4 SHALL YIELD
    12  ONE HUNDRED SIXTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX
    13  HUNDRED SIXTY-SIX DOLLARS ($166,666,666), AND THE BENEFIT
    14  REDUCTION UNDER SECTION 404(E)(4) SHALL YIELD FIFTY-TWO MILLION
    15  DOLLARS ($52,000,000).
    16     (C)  FOR THE PURPOSE OF REDETERMINING THE RATES UNDER THIS
    17  SECTION, THE SECRETARY SHALL UTILIZE THE NECESSARY CONTRIBUTION
    18  AND BENEFIT ACTIVITY DATA FROM THE CALENDAR YEAR IMMEDIATELY
    19  PRECEDING THE YEAR IN WHICH THE REDETERMINATION IS TO BE DONE.
    20     (D)  THE FIRST REDETERMINATION SHALL BE DONE BY JUNE 30,
    21  1992, AND THE RATES SHALL BE REDETERMINED EACH FIFTH SUCCEEDING
    22  JUNE 30 AND THE APPLICABLE REDETERMINED RATES SHALL TAKE EFFECT
    23  THE NEXT JANUARY 1.
    24     (E)  THE REDETERMINED RATES SHALL BE ROUNDED IN ACCORDANCE
    25  WITH THE FOLLOWING SCHEDULE:
    26     (1)  IF THE RATE FOR THE SURCHARGE ASSESSED UNDER SECTION
    27  301.5 IS NOT A MULTIPLE OF ONE TENTH OF ONE PER CENTUM (0.1%),
    28  IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE TENTH OF
    29  ONE PER CENTUM (0.1%);
    30     (2)  IF THE RATE FOR THE EMPLOYE TAX UNDER SECTION 301.4 IS
    19880H2583B3570                  - 9 -

     1  NOT A MULTIPLE OF ONE HUNDREDTH OF ONE PER CENTUM (0.01%) IT
     2  SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE HUNDREDTH OF
     3  ONE PER CENTUM (0.01%);
     4     (3)  IF THE RATE FOR THE ADDITIONAL CONTRIBUTION UNDER
     5  SECTION 301.2 IS NOT A MULTIPLE OF FIVE HUNDREDTHS OF ONE PER
     6  CENTUM (0.05%) IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE
     7  OF FIVE HUNDREDTHS OF ONE PER CENTUM (0.05%);
     8     (4)  IF THE RATE FOR THE BENEFIT REDUCTION UNDER SECTION
     9  404(E)(4) IS NOT A MULTIPLE OF ONE TENTH OF ONE PER CENTUM
    10  (0.1%) IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE
    11  TENTH OF ONE PER CENTUM (0.1%).
    12     SECTION 3.  SECTION 314 OF THE ACT IS REPEALED.
    13     SECTION 4.  THE INTRODUCTORY PARAGRAPH AND SUBSECTIONS (D)
    14  AND (E)(2) AND (4) OF SECTION 404 AND SECTION 804(A) OF THE ACT,
    15  AMENDED OR ADDED DECEMBER 5, 1974 (P.L.771, NO.262) AND JULY 21,
    16  1983 (P.L.68, NO.30), ARE AMENDED TO READ:
    17     SECTION 404.  RATE AND AMOUNT OF COMPENSATION.--COMPENSATION
    18  SHALL BE PAID TO EACH ELIGIBLE EMPLOYE IN ACCORDANCE WITH THE
    19  FOLLOWING PROVISIONS OF THIS SECTION EXCEPT THAT COMPENSATION
    20  PAYABLE WITH RESPECT TO WEEKS ENDING IN BENEFIT YEARS WHICH
    21  BEGIN PRIOR TO THE FIRST DAY OF [JANUARY 1984] JANUARY 1989
    22  SHALL BE PAID ON THE BASIS OF THE PROVISIONS OF THIS SECTION IN
    23  EFFECT AT THE BEGINNING OF SUCH BENEFIT YEARS.
    24     * * *
    25     (D)  (1)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
    26  SECTION EACH ELIGIBLE EMPLOYE WHO IS UNEMPLOYED WITH RESPECT TO
    27  ANY WEEK ENDING SUBSEQUENT TO JULY 1, 1980 SHALL BE PAID, WITH
    28  RESPECT TO SUCH WEEK, COMPENSATION IN AN AMOUNT EQUAL TO HIS
    29  WEEKLY BENEFIT RATE LESS THE TOTAL OF (I) THE REMUNERATION, IF
    30  ANY, PAID OR PAYABLE TO HIM WITH RESPECT TO SUCH WEEK FOR
    19880H2583B3570                 - 10 -

     1  SERVICES PERFORMED WHICH IS IN EXCESS OF HIS PARTIAL BENEFIT
     2  CREDIT[;] AND (II) VACATION PAY, IF ANY, WHICH IS IN EXCESS OF
     3  HIS PARTIAL BENEFIT CREDIT, EXCEPT WHEN PAID TO AN EMPLOYE WHO
     4  IS PERMANENTLY OR INDEFINITELY SEPARATED FROM HIS EMPLOYMENT
     5  [AND (III) AN AMOUNT EQUAL TO THE AMOUNT OF A GOVERNMENTAL OR
     6  OTHER PENSION, RETIREMENT OR RETIRED PAY, ANNUITY, OR ANY OTHER
     7  SIMILAR PERIODIC PAYMENT WHICH IS BASED ON THE PREVIOUS WORK OF
     8  SUCH INDIVIDUAL, WHICH IS REASONABLY ATTRIBUTABLE TO SUCH WEEK,
     9  IN ACCORDANCE WITH THIS SUBSECTION. THE PROVISIONS OF THIS
    10  SUBSECTION SHALL BE APPLICABLE WHETHER OR NOT SUCH VACATION PAY,
    11  RETIREMENT PENSION OR ANNUITIES, OR WAGES ARE LEGALLY REQUIRED
    12  TO BE PAID. IF SUCH RETIREMENT PENSION OR ANNUITY PAYMENTS
    13  DEDUCTIBLE UNDER THE PROVISIONS OF THIS SUBSECTION ARE RECEIVED
    14  ON OTHER THAN A WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE
    15  ALLOCATED AND PRO-RATED IN ACCORDANCE WITH THE RULES AND
    16  REGULATIONS OF THE DEPARTMENT. VACATION PAY, OR OTHER
    17  REMUNERATION DEDUCTIBLE UNDER THE PROVISIONS OF THIS SUBSECTION
    18  SHALL BE PRO-RATED ON THE BASIS OF THE EMPLOYE'S NORMAL FULL-
    19  TIME WEEKLY WAGE AND AS SO PRO-RATED SHALL BE ALLOCATED TO SUCH
    20  PERIOD OR PERIODS OF UNEMPLOYMENT AS SHALL BE DETERMINED BY
    21  RULES AND REGULATIONS OF THE DEPARTMENT. SUCH COMPENSATION, IF
    22  NOT A MULTIPLE OF ONE DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT
    23  LOWER MULTIPLE OF ONE DOLLAR ($1)].
    24     (2)  (I)  IN ADDITION TO THE DEDUCTIONS PROVIDED FOR IN
    25  CLAUSE (1), FOR ANY WEEK WITH RESPECT TO WHICH AN INDIVIDUAL IS
    26  RECEIVING A PENSION, INCLUDING A GOVERNMENTAL OR OTHER PENSION,
    27  RETIREMENT OR RETIRED PAY, ANNUITY OR ANY OTHER SIMILAR PERIODIC
    28  PAYMENT, UNDER A PLAN MAINTAINED OR CONTRIBUTED TO BY A BASE
    29  PERIOD OR CHARGEABLE EMPLOYER, THE WEEKLY BENEFIT AMOUNT PAYABLE
    30  TO SUCH INDIVIDUAL FOR SUCH WEEK SHALL BE REDUCED, BUT NOT BELOW
    19880H2583B3570                 - 11 -

     1  ZERO, BY THE PRO-RATED WEEKLY AMOUNT OF THE PENSION AS
     2  DETERMINED UNDER SUBCLAUSE (II).
     3     (II)  IF THE PENSION IS ENTIRELY CONTRIBUTED TO BY THE
     4  EMPLOYER, THEN ONE HUNDRED PER CENTUM (100%) OF THE PRO-RATED
     5  WEEKLY AMOUNT OF THE PENSION SHALL BE DEDUCTED. IF THE PENSION
     6  IS CONTRIBUTED TO BY THE INDIVIDUAL, IN ANY AMOUNT, THEN FIFTY
     7  PER CENTUM (50%) OF THE PRO-RATED WEEKLY AMOUNT OF THE PENSION
     8  SHALL BE DEDUCTED.
     9     (III)  NO DEDUCTION SHALL BE MADE UNDER THIS CLAUSE BY REASON
    10  OF THE RECEIPT OF A PENSION IF THE SERVICES PERFORMED BY THE
    11  INDIVIDUAL DURING THE BASE PERIOD OR REMUNERATION RECEIVED FOR
    12  SUCH SERVICES FOR SUCH EMPLOYER DID NOT AFFECT THE INDIVIDUAL'S
    13  ELIGIBILITY FOR, OR INCREASE THE AMOUNT OF, SUCH PENSION,
    14  RETIREMENT OR RETIRED PAY, ANNUITY OR SIMILAR PAYMENT. THIS
    15  SUBCLAUSE SHALL NOT APPLY TO PENSIONS PAID UNDER THE SOCIAL
    16  SECURITY ACT (PUBLIC LAW 74-271, 42 U.S.C. § 301 ET SEQ.), OR
    17  THE RAILROAD RETIREMENT ACT OF 1974 (PUBLIC LAW 93-445, 88 STAT.
    18  1305), OR THE CORRESPONDING PROVISIONS OF PRIOR LAW. PAYMENTS
    19  MADE UNDER SUCH ACTS SHALL BE TREATED SOLELY IN THE MANNER
    20  SPECIFIED BY SUBCLAUSE (I) OF THIS CLAUSE.
    21     (3)  THE PROVISIONS OF THIS SUBSECTION SHALL BE APPLICABLE
    22  WHETHER OR NOT SUCH VACATION PAY, RETIREMENT PENSION OR
    23  ANNUITIES OR WAGES ARE LEGALLY REQUIRED TO BE PAID. IF SUCH
    24  RETIREMENT PENSION OR ANNUITY PAYMENTS DEDUCTIBLE UNDER THE
    25  PROVISIONS OF THIS SUBSECTION ARE RECEIVED ON OTHER THAN A
    26  WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE ALLOCATED AND PRO-
    27  RATED IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE
    28  DEPARTMENT. VACATION PAY OR OTHER REMUNERATION DEDUCTIBLE UNDER
    29  THE PROVISIONS OF THIS SUBSECTION SHALL BE PRO-RATED ON THE
    30  BASIS OF THE EMPLOYE'S NORMAL FULL-TIME WEEKLY WAGE AND AS SO
    19880H2583B3570                 - 12 -

     1  PRO-RATED SHALL BE ALLOCATED TO SUCH PERIOD OR PERIODS OF
     2  UNEMPLOYMENT AS SHALL BE DETERMINED BY RULES AND REGULATIONS OF
     3  THE DEPARTMENT. SUCH COMPENSATION, IF NOT A MULTIPLE OF ONE
     4  DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT LOWER MULTIPLE OF ONE
     5  DOLLAR ($1).
     6     * * *
     7     (E)  * * *
     8     (2)  THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE AND
     9  AMOUNT OF BENEFITS SHALL BE EXTENDED OR CONTRACTED ANNUALLY,
    10  AUTOMATICALLY BY REGULATIONS PROMULGATED BY THE SECRETARY IN
    11  ACCORDANCE WITH THE FOLLOWING PROCEDURE: FOR CALENDAR YEAR ONE
    12  THOUSAND NINE HUNDRED SEVENTY-TWO AND FOR ALL SUBSEQUENT
    13  CALENDAR YEARS, TO A POINT WHERE THE MAXIMUM WEEKLY BENEFIT RATE
    14  EQUALS SIXTY-SIX AND TWO-THIRDS PER CENTUM OF THE AVERAGE WEEKLY
    15  WAGE FOR THE TWELVE-MONTH PERIOD ENDING JUNE 30 PRECEDING EACH
    16  CALENDAR YEAR. IF THE MAXIMUM WEEKLY BENEFIT RATE IS NOT A
    17  MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE INCREASED BY ONE DOLLAR
    18  ($1) AND THEN ROUNDED TO THE NEXT [HIGHER] LOWER MULTIPLE OF ONE
    19  DOLLAR ($1): PROVIDED, HOWEVER, THAT EFFECTIVE WITH BENEFIT
    20  YEARS BEGINNING THE FIRST SUNDAY AT LEAST THIRTY DAYS AFTER THE
    21  EFFECTIVE DATE OF THIS AMENDATORY ACT, THE PER CENTUM STATED IN
    22  THIS PARAGRAPH FOR ESTABLISHING THE MAXIMUM WEEKLY BENEFIT RATE
    23  SHALL BE SIXTY-TWO AND TWO-THIRDS PER CENTUM FOR THE REMAINDER
    24  OF CALENDAR YEAR ONE THOUSAND NINE HUNDRED SEVENTY-FOUR, SIXTY-
    25  FOUR AND TWO-THIRDS PER CENTUM FOR THE CALENDAR YEAR ONE
    26  THOUSAND NINE HUNDRED SEVENTY-FIVE, AND SIXTY-SIX AND TWO-THIRDS
    27  PER CENTUM FOR THE CALENDAR YEAR ONE THOUSAND NINE HUNDRED
    28  SEVENTY-SIX AND FOR ALL SUBSEQUENT CALENDAR YEARS.
    29     THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE AND AMOUNT
    30  OF BENEFITS AS SO EXTENDED OR CONTRACTED SHALL BE EFFECTIVE ONLY
    19880H2583B3570                 - 13 -

     1  FOR THOSE CLAIMANTS WHOSE BENEFIT YEARS BEGIN ON OR AFTER THE
     2  FIRST DAY OF JANUARY OF SUCH CALENDAR YEAR.
     3     FOR THE PURPOSE OF DETERMINING THE MAXIMUM WEEKLY BENEFIT
     4  RATE, THE PENNSYLVANIA AVERAGE WEEKLY WAGE IN COVERED EMPLOYMENT
     5  SHALL BE COMPUTED ON THE BASIS OF THE TOTAL WAGES REPORTED
     6  (IRRESPECTIVE OF THE LIMIT ON THE AMOUNT OF WAGES SUBJECT TO
     7  CONTRIBUTIONS) FOR THE TWELVE-MONTH PERIOD ENDING JUNE 30 AND
     8  THIS AMOUNT SHALL BE DIVIDED BY THE AVERAGE MONTHLY NUMBER OF
     9  COVERED WORKERS (DETERMINED BY DIVIDING THE TOTAL COVERED
    10  EMPLOYMENT REPORTED FOR THE SAME FISCAL YEAR BY TWELVE) TO
    11  DETERMINE THE AVERAGE ANNUAL WAGE. THE AVERAGE ANNUAL WAGE THUS
    12  OBTAINED SHALL BE DIVIDED BY FIFTY-TWO AND THE AVERAGE WEEKLY
    13  WAGE THUS DETERMINED ROUNDED TO THE NEAREST CENT.
    14     * * *
    15     (4)  (I)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT,
    16  EACH CLAIMANT ELIGIBLE FOR A WEEKLY BENEFIT RATE OF SEVENTY-FIVE
    17  DOLLARS ($75) OR MORE SHALL HAVE HIS WEEKLY COMPENSATION AS
    18  DETERMINED BY APPLICATION OF SUBSECTIONS (A) THROUGH (E) REDUCED
    19  BY FIVE PER CENTUM (5%)[, OR MORE IF AND WHEN THE PROVISIONS OF
    20  SECTION 314(C)(1)(III) APPLY]. IF SUCH REDUCED WEEKLY
    21  COMPENSATION IS NOT AN EVEN MULTIPLE OF ONE DOLLAR ($1), IT
    22  SHALL BE ROUNDED TO THE NEXT LOWER MULTIPLE OF ONE DOLLAR ($1):
    23  PROVIDED, THAT NO CLAIMANT WHOSE WEEKLY BENEFIT RATE, DETERMINED
    24  IN ACCORDANCE WITH SUBSECTION (A), IS IN EXCESS OF SEVENTY-FOUR
    25  DOLLARS ($74) SHALL HAVE HIS WEEKLY COMPENSATION REDUCED BELOW
    26  SEVENTY-FIVE DOLLARS ($75) EXCEPT THROUGH THE COMBINED
    27  APPLICATION OF THIS PARAGRAPH AND SUBSECTION (D). THE BALANCE IN
    28  THE CLAIMANT'S COMPENSATION ACCOUNT AS INDICATED IN PART D OR E
    29  OF THE TABLE CONTAINED IN SUBSECTION (E)(1) OF THIS SECTION
    30  SHALL BE REDUCED BY HIS WEEKLY BENEFIT AMOUNT WITHOUT REGARD TO
    19880H2583B3570                 - 14 -

     1  THE REDUCTION PROVIDED HEREIN. THIS CLAUSE SHALL BE OF NO EFFECT
     2  AFTER DECEMBER 31, 1989.
     3     (II)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, EACH
     4  CLAIMANT SHALL HAVE HIS WEEKLY COMPENSATION AS DETERMINED BY
     5  APPLICATIONS OF SUBSECTIONS (A) THROUGH (E) REDUCED BY FIVE PER
     6  CENTUM (5%) IF AND WHEN THE PROVISIONS OF SECTION 301.7(C)
     7  APPLY, OR BY THE PER CENTUM REDETERMINED UNDER SECTION 301.8, IF
     8  AND WHEN APPLICABLE. IF SUCH REDUCED WEEKLY COMPENSATION IS NOT
     9  AN EVEN MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE ROUNDED TO THE
    10  NEXT LOWER MULTIPLE OF ONE DOLLAR ($1): PROVIDED, THAT NO
    11  CLAIMANT WHOSE WEEKLY BENEFIT RATE, DETERMINED IN ACCORDANCE
    12  WITH SUBSECTION (A), IS IN EXCESS OF THE WEEKLY BENEFIT RATE
    13  IMMEDIATELY BELOW THE WEEKLY BENEFIT RATE THAT IS ONE-HALF OF
    14  THE MAXIMUM WEEKLY BENEFIT RATE DETERMINED IN CLAUSE (2) OF THIS
    15  SUBSECTION SHALL HAVE HIS WEEKLY COMPENSATION REDUCED BELOW ONE-
    16  HALF OF THE MAXIMUM WEEKLY BENEFIT RATE EXCEPT THROUGH THE
    17  COMBINED APPLICATION OF THIS CLAUSE AND SUBSECTION (D). THE
    18  BALANCE IN THE CLAIMANT'S COMPENSATION ACCOUNT AS INDICATED IN
    19  PART D OR E OF THE TABLE CONTAINED IN SUBSECTION (E)(1) OF THIS
    20  SECTION SHALL BE REDUCED BY HIS WEEKLY BENEFIT AMOUNT WITHOUT
    21  REGARD TO THE REDUCTION PROVIDED HEREIN.
    22     (III)  FOR PURPOSES OF THIS SUBSECTION ONLY, IF ONE-HALF OF
    23  THE MAXIMUM WEEKLY BENEFIT RATE IS NOT A MULTIPLE OF ONE DOLLAR
    24  ($1), SUCH AMOUNT SHALL BE ROUNDED DOWN TO THE NEXT LOWER
    25  MULTIPLE OF ONE DOLLAR ($1) AND THEN APPLIED AS REQUIRED BY THIS
    26  SUBSECTION.
    27     * * *
    28     SECTION 5.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    29     SECTION 601.3.  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE
    30  ACCOUNT.--(A)  THERE IS HEREBY ESTABLISHED WITHIN THE GENERAL
    19880H2583B3570                 - 15 -

     1  FUND OF THE STATE TREASURY A SPECIAL ACCOUNT, WHICH SHALL BE
     2  KNOWN AS THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT,
     3  FOR THE PURPOSE OF SUPPLEMENTING THE UNEMPLOYMENT COMPENSATION
     4  FUND ESTABLISHED UNDER SECTION 601. THERE SHALL BE DEPOSITED IN
     5  THIS SPECIAL ACCOUNT SUCH MONEYS AS ARE TRANSFERRED FROM THE
     6  STATE WORKMEN'S INSURANCE FUND PURSUANT TO SUBSECTION (B). ANY
     7  AMOUNTS IN THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT
     8  SHALL BE MAINTAINED SEPARATE AND APART FROM THE UNEMPLOYMENT
     9  COMPENSATION FUND UNLESS AND UNTIL TRANSFERRED TO THE
    10  UNEMPLOYMENT COMPENSATION FUND IN ACCORDANCE WITH SECTION
    11  301.7(D). ANY INTEREST EARNED ON THE PRINCIPAL OF THE
    12  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE
    13  DEPOSITED INTO THE GENERAL FUND. ANY AMOUNTS TRANSFERRED FROM
    14  THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT TO THE
    15  UNEMPLOYMENT COMPENSATION FUND SHALL BECOME AVAILABLE FOR ANY
    16  PURPOSE PERMITTED UNDER SECTION 601.
    17     (B)  FOR THE FISCAL YEAR BEGINNING JULY 1, 1988, THE STATE
    18  WORKMEN'S INSURANCE BOARD IS HEREBY AUTHORIZED AND EMPOWERED TO
    19  TRANSFER TO THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE
    20  ACCOUNT, MONEYS WHICH WERE RECEIVED BY THE STATE WORKMEN'S
    21  INSURANCE FUND IN ANY PRIOR YEAR AS EARNINGS ON INVESTMENTS HELD
    22  BY THAT FUND. THE MAXIMUM AMOUNT WHICH MAY BE TRANSFERRED TO THE
    23  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE ONE
    24  HUNDRED AND FIFTY MILLION DOLLARS ($150,000,000).
    25     SECTION 6.  SECTION 804(A) OF THE ACT, AMENDED JULY 21, 1983
    26  (P.L.68, NO.30), IS AMENDED TO READ:
    27     SECTION 804.  RECOVERY AND RECOUPMENT OF COMPENSATION.--(A)
    28  ANY PERSON WHO BY REASON OF HIS FAULT HAS RECEIVED ANY SUM AS
    29  COMPENSATION UNDER THIS ACT TO WHICH HE WAS NOT ENTITLED, SHALL
    30  BE LIABLE TO REPAY TO THE UNEMPLOYMENT COMPENSATION FUND TO THE
    19880H2583B3570                 - 16 -

     1  CREDIT OF THE COMPENSATION ACCOUNT A SUM EQUAL TO THE AMOUNT SO
     2  RECEIVED BY HIM AND INTEREST AT THE RATE DETERMINED BY THE
     3  SECRETARY OF REVENUE AS PROVIDED BY SECTION 806 OF THE ACT OF
     4  APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE," PER
     5  MONTH OR FRACTION OF A MONTH FROM FIFTEEN (15) DAYS AFTER THE
     6  NOTICE OF OVERPAYMENT WAS ISSUED UNTIL PAID. SUCH SUM SHALL BE
     7  COLLECTIBLE (1) IN THE MANNER PROVIDED IN SECTION 308.1 OR
     8  SECTION 309 OF THIS ACT, FOR THE COLLECTION OF PAST DUE
     9  CONTRIBUTIONS, OR (2) BY DEDUCTION FROM ANY FUTURE COMPENSATION
    10  PAYABLE TO THE CLAIMANT UNDER THIS ACT: PROVIDED, THAT INTEREST
    11  ASSESSED UNDER THIS SECTION CANNOT BE RECOUPED BY DEDUCTION FROM
    12  ANY FUTURE COMPENSATION PAYABLE TO THE CLAIMANT UNDER THIS ACT:
    13  PROVIDED FURTHER, THAT NO ADMINISTRATIVE OR LEGAL PROCEEDINGS
    14  FOR THE COLLECTION OF SUCH SUM SHALL BE INSTITUTED AFTER THE
    15  EXPIRATION OF SIX YEARS FOLLOWING THE END OF THE BENEFIT YEAR
    16  WITH RESPECT TO WHICH SUCH SUM WAS PAID.
    17     * * *
    18     SECTION 7.  THE FOLLOWING SUMS, OR AS MUCH THEREOF AS MAY BE
    19  NECESSARY, ARE HEREBY APPROPRIATED FROM THE STATE WORKMEN'S
    20  INSURANCE FUND FOR THE FISCAL YEAR BEGINNING JULY 1, 1988:
    21         (1)  THE SUM OF $25,000,000 IS APPROPRIATED TO THE
    22     TREASURY DEPARTMENT FOR TRANSFER TO THE SUNNY DAY FUND.
    23         (2)  THE SUM OF $25,000,000 IS APPROPRIATED TO THE
    24     TREASURY DEPARTMENT FOR TRANSFER TO THE TAX STABILIZATION
    25     RESERVE FUND.
    26         (3)  THE SUM OF $25,000,000 IS APPROPRIATED TO THE
    27     DEPARTMENT OF TRANSPORTATION FOR URBAN MASS TRANSPORTATION
    28     ASSISTANCE FOR GRANTS TO LOCAL TRANSPORTATION ORGANIZATIONS.
    29     SECTION 8.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    30         (1)  THE AMENDMENTS TO SECTION 404(D) SHALL TAKE EFFECT
    19880H2583B3570                 - 17 -

     1     BEGINNING WITH THE FIRST COMPENSABLE WEEK THAT ENDS ON OR
     2     AFTER JANUARY 1, 1989.
     3         (2)  SECTION 301.7(A) SHALL TAKE EFFECT JULY 1, 1989.
     4         (3)  THE AMENDMENTS TO SECTIONS 301.2, 301.4, 301.5,
     5     301.7(B), (C) AND (D), 301.8 AND 404(E) SHALL TAKE EFFECT ON
     6     JANUARY 1, 1990.
     7         (4)  THE AMENDMENT ADDING SECTION 601.3 AND THE
     8     APPROPRIATION IN SECTION 7 SHALL TAKE EFFECT JULY 1, 1988.
     9         (5)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
    10     IMMEDIATELY.














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