HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1702, 1709, 1712,        PRINTER'S NO. 2371
        1737, 2283

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1222 Session of 1987


        INTRODUCED BY RHOADES, SHUMAKER, WILT, SALVATORE, REGOLI,
           HELFRICK, CORMAN, REIBMAN, PECORA, AFFLERBACH, LYNCH,
           ANDREZESKI, O'PAKE, LEWIS, STEWART, JONES, ROMANELLI AND
           ZEMPRELLI, DECEMBER 23, 1987

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

                                  A SUPPLEMENT                            <--
                                     AN ACT                               <--

     1  To the act of July 3, 1987 (P.L.459, No.9A), entitled "An act to  <--
     2     provide from the General Fund for the expenses of the
     3     Executive, Legislative and Judicial Departments of the
     4     Commonwealth, the public debt and for the public schools for
     5     the fiscal year July 1, 1987, to June 30, 1988, and for the
     6     payment of bills incurred and remaining unpaid at the close
     7     of the fiscal year ending June 30, 1987; to provide
     8     appropriations from the Lottery Fund, the Pennsylvania
     9     Economic Revitalization Fund and the Energy Conservation and
    10     Assistance Fund to the Executive Department; to provide for
    11     the appropriation of Federal funds to the Executive and
    12     Judicial Departments of the Commonwealth and for the
    13     establishment of restricted receipts accounts for the fiscal
    14     year July 1, 1987, to June 30, 1988, and for the payment of
    15     bills incurred and remaining unpaid at the close of the
    16     fiscal year ending June 30, 1987; itemizing appropriations
    17     required from the Motor License Fund for the fiscal year July
    18     1, 1987, to June 30, 1988, for the proper operation of the
    19     several departments of the Commonwealth authorized to spend
    20     Motor License Fund moneys; and to further provide from the
    21     General Fund for the expenses of the Executive Department and
    22     Judicial Department of the Commonwealth, the public debt and
    23     for the public schools for the fiscal year July 1, 1986, to
    24     June 30, 1987, and for the payment of bills incurred and
    25     remaining unpaid at the close of the fiscal year ending June
    26     30, 1986," making supplemental appropriations; imposing
    27     additional restrictions on the appropriations for the Human
    28     Services Development Fund; and making repeals.


     1  MAKING AN APPROPRIATION FROM THE STATE STORES FUND TO PROVIDE     <--
     2     FOR LIQUOR CONTROL ENFORCEMENT EXPENSES FOR THE FISCAL YEAR
     3     JULY 1, 1988, TO JUNE 30, 1989, AND FOR THE PAYMENT OF BILLS
     4     INCURRED AND REMAINING UNPAID AT THE CLOSE OF THE FISCAL YEAR
     5     ENDING JUNE 30, 1988.
     6  AMENDING THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937          <--
     7     P.L.2897, NO.1), ENTITLED "AN ACT ESTABLISHING A SYSTEM OF
     8     UNEMPLOYMENT COMPENSATION TO BE ADMINISTERED BY THE
     9     DEPARTMENT OF LABOR AND INDUSTRY AND ITS EXISTING AND NEWLY
    10     CREATED AGENCIES WITH PERSONNEL (WITH CERTAIN EXCEPTIONS)
    11     SELECTED ON A CIVIL SERVICE BASIS; REQUIRING EMPLOYERS TO
    12     KEEP RECORDS AND MAKE REPORTS, AND CERTAIN EMPLOYERS TO PAY
    13     CONTRIBUTIONS BASED ON PAYROLLS TO PROVIDE MONEYS FOR THE
    14     PAYMENT OF COMPENSATION TO CERTAIN UNEMPLOYED PERSONS;
    15     PROVIDING PROCEDURE AND ADMINISTRATIVE DETAILS FOR THE
    16     DETERMINATION, PAYMENT AND COLLECTION OF SUCH CONTRIBUTIONS
    17     AND THE PAYMENT OF SUCH COMPENSATION; PROVIDING FOR
    18     COOPERATION WITH THE FEDERAL GOVERNMENT AND ITS AGENCIES;
    19     CREATING CERTAIN SPECIAL FUNDS IN THE CUSTODY OF THE STATE
    20     TREASURER; AND PRESCRIBING PENALTIES," ESTABLISHING A
    21     SEPARATE FUND TO SUPPLEMENT THE UNEMPLOYMENT COMPENSATION
    22     FUND; PROVIDING FOR THE TRANSFER OF CERTAIN INVESTMENT
    23     EARNINGS IN THE STATE WORKMEN'S INSURANCE FUND; FURTHER
    24     PROVIDING FOR THE RATE OF CONTRIBUTION BY EMPLOYERS AND
    25     EMPLOYEES; FURTHER PROVIDING FOR THE RATE AND AMOUNT OF
    26     BENEFITS; FURTHER PROVIDING FOR ADMINISTRATIVE MATTERS AND
    27     FOR THE RECOUPMENT OF FAULT OVERPAYMENTS; AND MAKING REPEALS.

    28     The General Assembly of the Commonwealth of Pennsylvania
    29  hereby enacts as follows:
    30     Section 1.  The following amounts, or as much thereof as may   <--
    31  be necessary, are hereby appropriated to the indicated
    32  departments for the fiscal period July 1, 1987, to June 30,
    33  1988:
    34     (1)  Department of Health.--The
    35  following amounts are appropriated to
    36  the Department of Health:
    37     For a State supplement to the
    38  Federal Special Supplemental Food
    39  Service Program for Women, Infants and
    40  Children.
    41             State appropriation........               $15,000,000
    42     (2)  Department of Public
    43  Welfare.--The following amounts are
    19870S1222B2371                  - 2 -

     1  appropriated to the Department of
     2  Public Welfare:                            Federal       State 
     3     For the Human Services Development
     4  Fund. The total appropriation shall be
     5  allocated to counties as follows: 50%
     6  shall be allocated by per capita and
     7  50% shall be allocated by poverty.
     8  Poverty shall be defined as the
     9  average number of Aid to Families with
    10  Dependent Children, General Assistance
    11  and State Blind Pension recipients in
    12  fiscal year 1985-1986 as a proportion
    13  of the Statewide average number of Aid
    14  to Families with Dependent Children,
    15  General Assistance and State Blind
    16  Pension recipients in this
    17  Commonwealth for fiscal year 1985-
    18  1986. No county shall receive a grant
    19  of less than $50,000 in State and
    20  Federal dollars combined.
    21  Under no circumstances shall any
    22  county receive less in State and
    23  Federal funds combined than that
    24  county received in fiscal year 1986-
    25  1987.
    26             State appropriation........                13,955,000
    27     The following SSBG amounts, or as
    28  much thereof as may be necessary, are
    29  hereby specifically appropriated for
    30  the Human Services Development Fund:
    19870S1222B2371                  - 3 -

     1     (1)  "Social Services - Human
     2  Services Development Fund." The total
     3  appropriation shall be allocated to
     4  counties as follows: 50% shall be
     5  allocated by per capita and 50% shall
     6  be allocated by poverty. Poverty shall
     7  be defined as the average number of
     8  Aid to Families with Dependent
     9  Children, General Assistance and State
    10  Blind Pension recipients in fiscal
    11  year 1985-1986 as a proportion of the
    12  Statewide average number of Aid to
    13  Families with Dependent Children,
    14  General Assistance and State Blind
    15  Pension recipients in this
    16  Commonwealth for fiscal year 1985-
    17  1986. No county shall receive a grant
    18  of less than $50,000 in State and
    19  Federal dollars combined. Under no
    20  circumstances shall any county receive
    21  less in State and Federal funds
    22  combined than that county received in
    23  fiscal year 1986-1987.
    24             Federal appropriation......   14,339,000            
    25     Section 2.  (a)  As much of section 215 of the act of July 3,
    26  1987 (P.L.459, No.9A), known as the General Appropriation Act of
    27  1987, as relates to an appropriation for a State supplement to
    28  the Federal Special Supplemental Food Service Program for Women,
    29  Infants and Children, is repealed.
    30     (b)  As much of section 219 of the act of July 3, 1987
    19870S1222B2371                  - 4 -

     1  (P.L.459, No.9A), known as the General Appropriations Act of
     2  1987, as relates to a State appropriation and a Federal SSBG
     3  appropriation to the Human Services Development Fund, is
     4  repealed.
     5     Section 3.  This act shall take effect immediately.
     6     SECTION 1.  THE SUM OF $13,261,000, OR AS MUCH THEREOF AS MAY  <--
     7  BE NECESSARY, IS HEREBY APPROPRIATED FROM THE STATE STORES FUND
     8  TO THE PENNSYLVANIA STATE POLICE FOR THE OPERATION OF THE BUREAU
     9  OF LIQUOR CONTROL ENFORCEMENT FOR THE FISCAL YEAR BEGINNING JULY
    10  1, 1988, AND FOR THE PAYMENT OF BILLS INCURRED AND REMAINING
    11  UNPAID AT THE CLOSE OF THE FISCAL YEAR ENDING JUNE 30, 1988.
    12     SECTION 2.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
    13     SECTION 1.  SECTIONS 301.2, 301.4 AND 301.5 OF THE ACT OF      <--
    14  DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS
    15  THE UNEMPLOYMENT COMPENSATION LAW, AMENDED OR ADDED JULY 21,
    16  1983 (P.L.68, NO.30), ARE AMENDED TO READ:
    17     SECTION 301.2.  ADDITIONAL CONTRIBUTIONS.--NOTWITHSTANDING
    18  ANY OTHER PROVISION OF THIS ACT, ALL EMPLOYERS REQUIRED TO PAY
    19  CONTRIBUTIONS UNDER SECTION 301 OR 301.1, EXCEPT THOSE SUBJECT
    20  TO THE PROVISIONS OF SECTION 301(A)(3) AND (4) OR 301.1(G),
    21  SHALL PAY ADDITIONAL CONTRIBUTIONS [EQUAL TO SEVEN-TENTHS OF ONE
    22  PER CENTUM (0.7%) FOR CALENDAR YEAR 1984, SIX-TENTHS OF ONE PER
    23  CENTUM (0.6%) FOR CALENDAR YEAR 1985 AND FIVE-TENTHS OF ONE PER
    24  CENTUM (0.5%) FOR CALENDAR YEAR 1986 AND THEREAFTER] AT A RATE
    25  OF ZERO PER CENTUM (0.0%) FOR CALENDAR YEAR 1989 AND AT A RATE
    26  AS SET FORTH IN SECTION 301.7 FOR EACH CALENDAR YEAR THEREAFTER
    27  ON WAGES PAID WITH REGARD TO THE LIMITATION SPECIFIED UNDER
    28  SECTION 4(X)(1) OF THIS ACT.
    29     SECTION 301.4.  CONTRIBUTIONS BY EMPLOYES.--(A)
    30  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, [FOR CALENDAR
    19870S1222B2371                  - 5 -

     1  YEAR 1984 AND EVERY CALENDAR YEAR THEREAFTER] EACH EMPLOYE SHALL
     2  CONTRIBUTE TO THE UNEMPLOYMENT COMPENSATION FUND [ONE-TENTH OF
     3  ONE PER CENTUM (0.1%)] AT A RATE OF ZERO PER CENTUM (0.0%) FOR
     4  CALENDAR YEAR 1989 AND AT A RATE AS SET FORTH IN SECTION 301.7
     5  FOR EACH CALENDAR YEAR THEREAFTER OF ALL WAGES PAID FOR
     6  "EMPLOYMENT" AS DEFINED BY THE ACT WITHOUT REGARD TO THE
     7  LIMITATION SPECIFIED IN SECTION 4(X)(1) OF THIS ACT.
     8     (B)  EACH EMPLOYER SUBJECT TO THIS ACT SHALL BE RESPONSIBLE
     9  FOR WITHHOLDING AND SHALL WITHHOLD, IN TRUST, SUCH CONTRIBUTIONS
    10  FROM THE WAGES OF HIS EMPLOYES AT THE TIME SUCH WAGES ARE PAID,
    11  AND SHALL REPORT AND TRANSMIT SUCH DEDUCTIONS TO THE DEPARTMENT
    12  FOR DEPOSIT INTO THE UNEMPLOYMENT COMPENSATION FUND, IN
    13  ACCORDANCE WITH RULES AND PROCEDURES ESTABLISHED BY THE
    14  DEPARTMENT.
    15     (C)  ANY EMPLOYER WHO IS AN INDIVIDUAL, OR ANY OFFICER OR
    16  AGENT OF ANY EMPLOYER, WHO VIOLATES THE TRUST PROVISION OF THIS
    17  SECTION, FAILS TO WITHHOLD, HOLD IN TRUST OR FAILS TO TRANSMIT
    18  TO THE DEPARTMENT ALL CONTRIBUTIONS WITHHELD FROM THE WAGES OF
    19  HIS EMPLOYES IN ACCORDANCE WITH THE RULES AND PROCEDURE
    20  ESTABLISHED BY THE DEPARTMENT SHALL BE SUBJECT TO THE PROVISIONS
    21  OF CLAUSE (2) OF SUBSECTION (A) OF SECTION 301 AND SECTIONS 308,
    22  308.1, 308.2, 308.3 AND 309 OF THIS ACT.
    23     (D)  THIS SECTION SHALL NOT BE DEEMED TO AFFECT OR IMPAIR THE
    24  OPERATION OF ANY STATE STATUTE OR ORDINANCE OR RESOLUTION OF A
    25  POLITICAL SUBDIVISION WHICH LEVIES OR COLLECTS ANY WAGE TAX OR
    26  SIMILAR TAX. CONTRIBUTIONS MADE PURSUANT TO THIS SECTION ARE NOT
    27  INTENDED TO REDUCE OR OTHERWISE AFFECT ANY TAX ON WAGES OR
    28  SIMILAR TAX.
    29     SECTION 301.5.  SURCHARGE.--[(A)  NOTWITHSTANDING ANY OTHER
    30  PROVISIONS OF THIS ACT, ALL EMPLOYERS SUBJECT TO THIS ACT (OTHER
    19870S1222B2371                  - 6 -

     1  THAN EMPLOYERS WHO HAVE ELECTED, PURSUANT TO SECTION 1102 OR
     2  1202.2, TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS) SHALL BE
     3  ASSESSED A SURCHARGE OF FIFTEEN PER CENTUM (15%) OF THE
     4  CONTRIBUTIONS DUE FOR 1983 WITHOUT REGARD TO THE TAX CREDIT
     5  GRANTED UNDER SUBSECTION (C) OF SECTION 301.3. ADDITIONAL
     6  CONTRIBUTIONS DUE UNDER THIS SECTION FOR THE PERIOD OF JANUARY
     7  THROUGH SEPTEMBER 1983 SHALL BE PAYABLE ON OR BEFORE OCTOBER 31,
     8  1983. ADDITIONAL CONTRIBUTIONS DUE UNDER THIS SECTION FOR THE
     9  PERIOD OF OCTOBER THROUGH DECEMBER 1983 SHALL BE PAYABLE ON OR
    10  BEFORE JANUARY 31, 1984. SUCH ADDITIONAL CONTRIBUTIONS DUE UNDER
    11  THIS SECTION SHALL BE COLLECTIBLE IN THE MANNER PROVIDED IN
    12  SECTIONS 308.1, 308.2, 308.3 AND 309 OF THIS ACT.
    13     (B)  THIS SECTION SHALL NOT APPLY TO CONTRIBUTIONS ON WAGES
    14  PAID DURING THE PERIOD JANUARY 1, 1983, THROUGH JUNE 30, 1983,
    15  BY JOBBERS, MANUFACTURERS, CONTRACTORS OR SUBCONTRACTORS WITH A
    16  STANDARD INDUSTRIAL CODE CLASSIFICATION OF 23 FOR WORK ON THE
    17  GOODS OR PREMISES OF THE JOBBER OR MANUFACTURER OR PERFORMING
    18  PARTS OF AN INTEGRATED PROCESS OF PRODUCTION IN THE APPAREL
    19  INDUSTRY.] NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, ALL
    20  EMPLOYERS SUBJECT TO THIS ACT (OTHER THAN EMPLOYERS WHO ARE
    21  SUBJECT TO SECTION 1003 OR WHO HAVE ELECTED, PURSUANT TO SECTION
    22  1102 OR 1202.2, TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS) SHALL
    23  BE ASSESSED A SURCHARGE ON CONTRIBUTIONS DUE FROM EMPLOYERS AT A
    24  RATE OF ZERO PER CENTUM (0.0%) FOR CALENDAR YEAR 1989 AND AT A
    25  RATE AS SET FORTH IN SECTION 301.7 FOR EACH CALENDAR YEAR
    26  THEREAFTER. SUCH ADDITIONAL CONTRIBUTIONS DUE UNDER THIS SECTION
    27  SHALL BE COLLECTIBLE IN THE MANNER PROVIDED IN SECTIONS 308.1,
    28  308.2, 308.3 AND 309 OF THIS ACT.
    29     SECTION 2.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
    30     SECTION 301.7.  TRIGGER DETERMINATION.--(A)  ON JULY 1 OF
    19870S1222B2371                  - 7 -

     1  EVERY YEAR, THE SECRETARY SHALL CALCULATE THE TRIGGER PERCENTAGE
     2  TO BE USED IN SETTING SURCHARGE AND CONTRIBUTION RATES FOR THE
     3  CONTRIBUTIONS REQUIRED UNDER SECTIONS 301.2, 301.4 AND 301.5 AND
     4  IN SETTING THE BENEFIT REDUCTION REQUIRED UNDER SECTION
     5  404(E)(4) FOR THE FOLLOWING CALENDAR YEAR. THE SECRETARY SHALL:
     6     (1)  DETERMINE THE NET BALANCE IN THE UNEMPLOYMENT
     7  COMPENSATION TRUST FUND;
     8     (2)  DETERMINE THE AVERAGE OF THE UNEMPLOYMENT COMPENSATION
     9  FUND BENEFIT COSTS FOR THE THREE IMMEDIATELY PRECEDING FISCAL
    10  YEARS; AND
    11     (3)  CALCULATE THE PERCENTAGE THAT THE UNEMPLOYMENT
    12  COMPENSATION TRUST FUND REPRESENTS OF THE AVERAGE OF THE BENEFIT
    13  COSTS.
    14     (B)  SURCHARGE AND CONTRIBUTION RATES SHALL BE ANNOUNCED BY
    15  THE SECRETARY ON JULY 1 OF EVERY YEAR IN ACCORDANCE WITH THE
    16  FOLLOWING SCHEDULE:
    17     (1)  WHEN THE TRIGGER PERCENTAGE IS ONE HUNDRED AND FIFTY PER
    18  CENTUM (150%) OR HIGHER, THE RATE OF THE SURCHARGE ASSESSED
    19  UNDER SECTION 301.5 SHALL BE A NEGATIVE ONE AND ONE-HALF PER
    20  CENTUM (1.5%).
    21     (2)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST ONE HUNDRED AND
    22  TWENTY-FIVE PER CENTUM (125%), BUT LESS THAN ONE HUNDRED AND
    23  FIFTY PER CENTUM (150%), THERE SHALL BE NO SURCHARGE OR
    24  CONTRIBUTION UNDER SECTION 301.2, 301.4 OR 301.5.
    25     (3)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST ONE HUNDRED TEN
    26  PER CENTUM (110%), BUT LESS THAN ONE HUNDRED TWENTY-FIVE PER
    27  CENTUM (125%):
    28     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    29  SHALL BE FOUR PER CENTUM (4%); AND
    30     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    19870S1222B2371                  - 8 -

     1  SHALL BE FIVE HUNDREDTHS OF ONE PER CENTUM (.05%).
     2     (4)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST NINETY-FIVE PER
     3  CENTUM (95%), BUT LESS THAN ONE HUNDRED TEN PER CENTUM (110%):
     4     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
     5  SHALL BE EIGHT PER CENTUM (8%); AND
     6     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
     7  SHALL BE ONE-TENTH OF ONE PER CENTUM (0.1%).
     8     (5)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST SEVENTY-FIVE PER
     9  CENTUM (75%), BUT LESS THAN NINETY-FIVE PER CENTUM (95%):
    10     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    11  SHALL BE EIGHT PER CENTUM (8%);
    12     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    13  SHALL BE FIFTEEN HUNDREDTHS OF ONE PER CENTUM (0.15%); AND
    14     (III)  THE RATE OF ADDITIONAL CONTRIBUTIONS ASSESSED UNDER
    15  SECTION 301.2 SHALL BE TWENTY-FIVE HUNDREDTHS OF ONE PER CENTUM
    16  (0.25%).
    17     (6)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST FIFTY PER CENTUM
    18  (50%), BUT LESS THAN SEVENTY-FIVE PER CENTUM (75%):
    19     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    20  SHALL BE EIGHT PER CENTUM (8%);
    21     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    22  SHALL BE TWO TENTHS OF ONE PER CENTUM (0.2%); AND
    23     (III)  THE RATE OF ADDITIONAL CONTRIBUTION ASSESSED UNDER
    24  SECTION 301.2 SHALL BE FIVE TENTHS OF ONE PER CENTUM (0.5%).
    25     (7)  WHEN THE TRIGGER PERCENTAGE IS LESS THAN FIFTY PER
    26  CENTUM (50%):
    27     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    28  SHALL BE EIGHT PER CENTUM (8%);
    29     (II)  THE RATE OF ADDITIONAL CONTRIBUTION ASSESSED UNDER
    30  SECTION 301.2 SHALL BE SEVENTY-FIVE HUNDREDTHS OF ONE PER CENTUM
    19870S1222B2371                  - 9 -

     1  (0.75%); AND
     2     (III)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
     3  SHALL BE TWO TENTHS OF ONE PER CENTUM (0.2%).
     4     (C)  WHENEVER THE TRIGGER PERCENTAGE DETERMINED UNDER
     5  SUBSECTION (A) IS LESS THAN FIFTY PER CENTUM (50%), THE
     6  SECRETARY SHALL ANNOUNCE A REDUCTION IN THE WEEKLY BENEFIT RATE
     7  UNDER SECTION 404(E)(4).
     8     (D)  WHENEVER THE TRIGGER PERCENTAGE IS LESS THAN TWENTY-FIVE
     9  PER CENTUM (25%), ANY BALANCE REMAINING IN THE UNEMPLOYMENT
    10  COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE TRANSFERRED TO THE
    11  UNEMPLOYMENT COMPENSATION TRUST FUND.
    12     SECTION 301.8.  TRIGGER RATE REDETERMINATIONS.--(A)
    13  BEGINNING IN 1992 AND EACH FIFTH YEAR THEREAFTER, THE SECRETARY
    14  SHALL REDETERMINE THE RATES OF THE SURCHARGE, EMPLOYE TAX,
    15  ADDITIONAL CONTRIBUTIONS AND BENEFIT REDUCTION OTHERWISE
    16  APPLICABLE UNDER SECTIONS 301.7 AND 404(E)(4). THE SECRETARY
    17  SHALL REDETERMINE THE RATES SO THAT THE UNROUNDED RATES YIELD
    18  CONTRIBUTION INCREASES AND BENEFIT REDUCTIONS, ON A CALENDAR
    19  YEAR BASIS, APPROXIMATELY EQUAL TO THE DOLLAR AMOUNTS SPECIFIED
    20  IN SUBSECTION (B). THE RATES AS REDETERMINED SHALL TAKE EFFECT
    21  ON JANUARY 1 OF THE FOLLOWING CALENDAR YEAR AND SHALL REMAIN IN
    22  EFFECT FOR FIVE YEARS.
    23     (B)  THE RATES SHALL BE ADJUSTED TO YIELD THE AMOUNTS
    24  INDICATED AT THE FOLLOWING TRIGGER PERCENTAGES:
    25     (1)  AT LEAST ONE HUNDRED FIFTY PER CENTUM (150%), THE
    26  NEGATIVE SURCHARGE ASSESSED UNDER SECTION 301.5 SHALL RESULT IN
    27  AN EMPLOYER CONTRIBUTION REDUCTION OF EIGHTEEN MILLION DOLLARS
    28  ($18,000,000);
    29     (2)  AT LEAST ONE HUNDRED TEN PER CENTUM (110%) BUT LESS THAN
    30  ONE HUNDRED TWENTY-FIVE PER CENTUM (125%), THE SURCHARGE
    19870S1222B2371                 - 10 -

     1  ASSESSED UNDER SECTION 301.5 SHALL YIELD FIFTY MILLION DOLLARS
     2  ($50,000,000) AND THE EMPLOYE TAX UNDER SECTION 301.4 SHALL
     3  YIELD THIRTY-THREE MILLION THREE HUNDRED THIRTY-THREE THOUSAND
     4  THREE HUNDRED THIRTY-THREE DOLLARS ($33,333,333);
     5     (3)  AT LEAST NINETY-FIVE PER CENTUM (95%) BUT LESS THAN ONE
     6  HUNDRED TEN PER CENTUM (110%), THE SURCHARGE ASSESSED UNDER
     7  SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
     8  ($100,000,000) AND THE EMPLOYE TAX UNDER SECTION 301.4 SHALL
     9  YIELD SIXTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX
    10  HUNDRED SIXTY-SIX DOLLARS ($66,666,666);
    11     (4)  AT LEAST SEVENTY-FIVE PER CENTUM (75%) BUT LESS THAN
    12  NINETY-FIVE PER CENTUM (95%), THE SURCHARGE ASSESSED UNDER
    13  SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
    14  ($100,000,000), THE ADDITIONAL CONTRIBUTIONS UNDER SECTION 301.2
    15  SHALL YIELD SEVENTY-FIVE MILLION DOLLARS ($75,000,000), AND THE
    16  EMPLOYE TAX UNDER SECTION 301.4 SHALL YIELD ONE HUNDRED SIXTEEN
    17  MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX
    18  DOLLARS ($116,666,666);
    19     (5)  AT LEAST FIFTY PER CENTUM (50%) BUT LESS THAN SEVENTY-
    20  FIVE PER CENTUM (75%), THE SURCHARGE ASSESSED UNDER SECTION
    21  301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS ($100,000,000),
    22  THE ADDITIONAL CONTRIBUTION UNDER SECTION 301.2 SHALL YIELD ONE
    23  HUNDRED FIFTY MILLION DOLLARS ($150,000,000), AND THE EMPLOYE
    24  TAX UNDER SECTION 301.4 SHALL YIELD ONE HUNDRED SIXTY-SIX
    25  MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX
    26  DOLLARS ($166,666,666);
    27     (6)  LESS THAN FIFTY PER CENTUM (50%), THE SURCHARGE ASSESSED
    28  UNDER SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
    29  ($100,000,000), THE ADDITIONAL CONTRIBUTION UNDER SECTION 301.2
    30  SHALL YIELD TWO HUNDRED TWENTY-FIVE MILLION DOLLARS
    19870S1222B2371                 - 11 -

     1  ($225,000,000), THE EMPLOYE TAX UNDER SECTION 301.4 SHALL YIELD
     2  ONE HUNDRED SIXTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX
     3  HUNDRED SIXTY-SIX DOLLARS ($166,666,666), AND THE BENEFIT
     4  REDUCTION UNDER SECTION 404(E)(4) SHALL YIELD FIFTY-TWO MILLION
     5  DOLLARS ($52,000,000).
     6     (C)  FOR THE PURPOSE OF REDETERMINING THE RATES UNDER THIS
     7  SECTION, THE SECRETARY SHALL UTILIZE THE NECESSARY CONTRIBUTION
     8  AND BENEFIT ACTIVITY DATA FROM THE CALENDAR YEAR IMMEDIATELY
     9  PRECEDING THE YEAR IN WHICH THE REDETERMINATION IS TO BE DONE.
    10     (D)  THE FIRST REDETERMINATION SHALL BE DONE BY JUNE 30,
    11  1992, AND THE RATES SHALL BE REDETERMINED EACH FIFTH SUCCEEDING
    12  JUNE 30 AND THE APPLICABLE REDETERMINED RATES SHALL TAKE EFFECT
    13  THE NEXT JANUARY 1.
    14     (E)  THE REDETERMINED RATES SHALL BE ROUNDED IN ACCORDANCE
    15  WITH THE FOLLOWING SCHEDULE:
    16     (1)  IF THE RATE FOR THE SURCHARGE ASSESSED UNDER SECTION
    17  301.5 IS NOT A MULTIPLE OF ONE TENTH OF ONE PER CENTUM (0.1%),
    18  IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE TENTH OF
    19  ONE PER CENTUM (0.1%);
    20     (2)  IF THE RATE FOR THE EMPLOYE TAX UNDER SECTION 301.4 IS
    21  NOT A MULTIPLE OF ONE HUNDREDTH OF ONE PER CENTUM (0.01%) IT
    22  SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE HUNDREDTH OF
    23  ONE PER CENTUM (0.01%);
    24     (3)  IF THE RATE FOR THE ADDITIONAL CONTRIBUTION UNDER
    25  SECTION 301.2 IS NOT A MULTIPLE OF FIVE HUNDREDTHS OF ONE PER
    26  CENTUM (0.05%), IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE
    27  OF FIVE HUNDREDTHS OF ONE PER CENTUM (0.05%);
    28     (4)  IF THE RATE FOR THE BENEFIT REDUCTION UNDER SECTION
    29  404(E)(4) IS NOT A MULTIPLE OF ONE TENTH OF ONE PER CENTUM
    30  (0.1%), IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE
    19870S1222B2371                 - 12 -

     1  TENTH OF ONE PER CENTUM (0.1%).
     2     SECTION 3.  SECTION 314 OF THE ACT IS REPEALED.
     3     SECTION 4.  THE INTRODUCTORY PARAGRAPH AND SUBSECTIONS (D)
     4  AND (E)(2) AND (4) OF SECTION 404 OF THE ACT, AMENDED OR ADDED
     5  DECEMBER 5, 1974 (P.L.771, NO.262) AND JULY 21, 1983 (P.L.68,
     6  NO.30), ARE AMENDED TO READ:
     7     SECTION 404.  RATE AND AMOUNT OF COMPENSATION.--COMPENSATION
     8  SHALL BE PAID TO EACH ELIGIBLE EMPLOYE IN ACCORDANCE WITH THE
     9  FOLLOWING PROVISIONS OF THIS SECTION EXCEPT THAT COMPENSATION
    10  PAYABLE WITH RESPECT TO WEEKS ENDING IN BENEFIT YEARS WHICH
    11  BEGIN PRIOR TO THE FIRST DAY OF [JANUARY 1984] JANUARY 1989
    12  SHALL BE PAID ON THE BASIS OF THE PROVISIONS OF THIS SECTION IN
    13  EFFECT AT THE BEGINNING OF SUCH BENEFIT YEARS.
    14     * * *
    15     (D)  (1)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
    16  SECTION EACH ELIGIBLE EMPLOYE WHO IS UNEMPLOYED WITH RESPECT TO
    17  ANY WEEK ENDING SUBSEQUENT TO JULY 1, 1980 SHALL BE PAID, WITH
    18  RESPECT TO SUCH WEEK, COMPENSATION IN AN AMOUNT EQUAL TO HIS
    19  WEEKLY BENEFIT RATE LESS THE TOTAL OF (I) THE REMUNERATION, IF
    20  ANY, PAID OR PAYABLE TO HIM WITH RESPECT TO SUCH WEEK FOR
    21  SERVICES PERFORMED WHICH IS IN EXCESS OF HIS PARTIAL BENEFIT
    22  CREDIT[;] AND (II) VACATION PAY, IF ANY, WHICH IS IN EXCESS OF
    23  HIS PARTIAL BENEFIT CREDIT, EXCEPT WHEN PAID TO AN EMPLOYE WHO
    24  IS PERMANENTLY OR INDEFINITELY SEPARATED FROM HIS EMPLOYMENT
    25  [AND (III) AN AMOUNT EQUAL TO THE AMOUNT OF A GOVERNMENTAL OR
    26  OTHER PENSION, RETIREMENT OR RETIRED PAY, ANNUITY, OR ANY OTHER
    27  SIMILAR PERIODIC PAYMENT WHICH IS BASED ON THE PREVIOUS WORK OF
    28  SUCH INDIVIDUAL, WHICH IS REASONABLY ATTRIBUTABLE TO SUCH WEEK,
    29  IN ACCORDANCE WITH THIS SUBSECTION. THE PROVISIONS OF THIS
    30  SUBSECTION SHALL BE APPLICABLE WHETHER OR NOT SUCH VACATION PAY,
    19870S1222B2371                 - 13 -

     1  RETIREMENT PENSION OR ANNUITIES, OR WAGES ARE LEGALLY REQUIRED
     2  TO BE PAID. IF SUCH RETIREMENT PENSION OR ANNUITY PAYMENTS
     3  DEDUCTIBLE UNDER THE PROVISIONS OF THIS SUBSECTION ARE RECEIVED
     4  ON OTHER THAN A WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE
     5  ALLOCATED AND PRO-RATED IN ACCORDANCE WITH THE RULES AND
     6  REGULATIONS OF THE DEPARTMENT. VACATION PAY, OR OTHER
     7  REMUNERATION DEDUCTIBLE UNDER THE PROVISIONS OF THIS SUBSECTION
     8  SHALL BE PRO-RATED ON THE BASIS OF THE EMPLOYE'S NORMAL FULL-
     9  TIME WEEKLY WAGE AND AS SO PRO-RATED SHALL BE ALLOCATED TO SUCH
    10  PERIOD OR PERIODS OF UNEMPLOYMENT AS SHALL BE DETERMINED BY
    11  RULES AND REGULATIONS OF THE DEPARTMENT. SUCH COMPENSATION, IF
    12  NOT A MULTIPLE OF ONE DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT
    13  LOWER MULTIPLE OF ONE DOLLAR ($1)].
    14     (2)  (I)  IN ADDITION TO THE DEDUCTIONS PROVIDED FOR IN
    15  CLAUSE (1), FOR ANY WEEK WITH RESPECT TO WHICH AN INDIVIDUAL IS
    16  RECEIVING A PENSION, INCLUDING A GOVERNMENTAL OR OTHER PENSION,
    17  RETIREMENT OR RETIRED PAY, ANNUITY OR ANY OTHER SIMILAR PERIODIC
    18  PAYMENT, UNDER A PLAN MAINTAINED OR CONTRIBUTED TO BY A BASE
    19  PERIOD OR CHARGEABLE EMPLOYER, THE WEEKLY BENEFIT AMOUNT PAYABLE
    20  TO SUCH INDIVIDUAL FOR SUCH WEEK SHALL BE REDUCED, BUT NOT BELOW
    21  ZERO, BY THE PRO-RATED WEEKLY AMOUNT OF THE PENSION AS
    22  DETERMINED UNDER SUBCLAUSE (II).
    23     (II)  IF THE PENSION IS ENTIRELY CONTRIBUTED TO BY THE
    24  EMPLOYER, THEN ONE HUNDRED PER CENTUM (100%) OF THE PRO-RATED
    25  WEEKLY AMOUNT OF THE PENSION SHALL BE DEDUCTED. IF THE PENSION
    26  IS CONTRIBUTED TO BY THE INDIVIDUAL, IN ANY AMOUNT, THEN FIFTY
    27  PER CENTUM (50%) OF THE PRO-RATED WEEKLY AMOUNT OF THE PENSION
    28  SHALL BE DEDUCTED.
    29     (III)  NO DEDUCTION SHALL BE MADE UNDER THIS CLAUSE BY REASON
    30  OF THE RECEIPT OF A PENSION IF THE SERVICES PERFORMED BY THE
    19870S1222B2371                 - 14 -

     1  INDIVIDUAL DURING THE BASE PERIOD OR REMUNERATION RECEIVED FOR
     2  SUCH SERVICES FOR SUCH EMPLOYER DID NOT AFFECT THE INDIVIDUAL'S
     3  ELIGIBILITY FOR, OR INCREASE THE AMOUNT OF, SUCH PENSION,
     4  RETIREMENT OR RETIRED PAY, ANNUITY OR SIMILAR PAYMENT. THIS
     5  SUBCLAUSE SHALL NOT APPLY TO PENSIONS PAID UNDER THE SOCIAL
     6  SECURITY ACT (PUBLIC LAW 74-271, 42 U.S.C. § 301 ET SEQ.), OR
     7  THE RAILROAD RETIREMENT ACT OF 1974 (PUBLIC LAW 93-445, 88 STAT.
     8  1305), OR THE CORRESPONDING PROVISIONS OF PRIOR LAW. PAYMENTS
     9  MADE UNDER SUCH ACTS SHALL BE TREATED SOLELY IN THE MANNER
    10  SPECIFIED BY SUBCLAUSE (I) OF THIS CLAUSE.
    11     (3)  THE PROVISIONS OF THIS SUBSECTION SHALL BE APPLICABLE
    12  WHETHER OR NOT SUCH VACATION PAY, RETIREMENT PENSION OR
    13  ANNUITIES OR WAGES ARE LEGALLY REQUIRED TO BE PAID. IF SUCH
    14  RETIREMENT PENSION OR ANNUITY PAYMENTS DEDUCTIBLE UNDER THE
    15  PROVISIONS OF THIS SUBSECTION ARE RECEIVED ON OTHER THAN A
    16  WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE ALLOCATED AND PRO-
    17  RATED IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE
    18  DEPARTMENT. VACATION PAY OR OTHER REMUNERATION DEDUCTIBLE UNDER
    19  THE PROVISIONS OF THIS SUBSECTION SHALL BE PRO-RATED ON THE
    20  BASIS OF THE EMPLOYE'S NORMAL FULL-TIME WEEKLY WAGE AND AS SO
    21  PRO-RATED SHALL BE ALLOCATED TO SUCH PERIOD OR PERIODS OF
    22  UNEMPLOYMENT AS SHALL BE DETERMINED BY RULES AND REGULATIONS OF
    23  THE DEPARTMENT. SUCH COMPENSATION, IF NOT A MULTIPLE OF ONE
    24  DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT LOWER MULTIPLE OF ONE
    25  DOLLAR ($1).
    26     * * *
    27     (E)  * * *
    28     (2)  THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE AND
    29  AMOUNT OF BENEFITS SHALL BE EXTENDED OR CONTRACTED ANNUALLY,
    30  AUTOMATICALLY BY REGULATIONS PROMULGATED BY THE SECRETARY IN
    19870S1222B2371                 - 15 -

     1  ACCORDANCE WITH THE FOLLOWING PROCEDURE: FOR CALENDAR YEAR ONE
     2  THOUSAND NINE HUNDRED SEVENTY-TWO AND FOR ALL SUBSEQUENT
     3  CALENDAR YEARS, TO A POINT WHERE THE MAXIMUM WEEKLY BENEFIT RATE
     4  EQUALS SIXTY-SIX AND TWO-THIRDS PER CENTUM OF THE AVERAGE WEEKLY
     5  WAGE FOR THE TWELVE-MONTH PERIOD ENDING JUNE 30 PRECEDING EACH
     6  CALENDAR YEAR. IF THE MAXIMUM WEEKLY BENEFIT RATE IS NOT A
     7  MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE INCREASED BY ONE DOLLAR
     8  ($1) AND THEN ROUNDED TO THE NEXT [HIGHER] LOWER MULTIPLE OF ONE
     9  DOLLAR ($1): PROVIDED, HOWEVER, THAT EFFECTIVE WITH BENEFIT
    10  YEARS BEGINNING THE FIRST SUNDAY AT LEAST THIRTY DAYS AFTER THE
    11  EFFECTIVE DATE OF THIS AMENDATORY ACT, THE PER CENTUM STATED IN
    12  THIS PARAGRAPH FOR ESTABLISHING THE MAXIMUM WEEKLY BENEFIT RATE
    13  SHALL BE SIXTY-TWO AND TWO-THIRDS PER CENTUM FOR THE REMAINDER
    14  OF CALENDAR YEAR ONE THOUSAND NINE HUNDRED SEVENTY-FOUR, SIXTY-
    15  FOUR AND TWO-THIRDS PER CENTUM FOR THE CALENDAR YEAR ONE
    16  THOUSAND NINE HUNDRED SEVENTY-FIVE, AND SIXTY-SIX AND TWO-THIRDS
    17  PER CENTUM FOR THE CALENDAR YEAR ONE THOUSAND NINE HUNDRED
    18  SEVENTY-SIX AND FOR ALL SUBSEQUENT CALENDAR YEARS.
    19     THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE AND AMOUNT
    20  OF BENEFITS AS SO EXTENDED OR CONTRACTED SHALL BE EFFECTIVE ONLY
    21  FOR THOSE CLAIMANTS WHOSE BENEFIT YEARS BEGIN ON OR AFTER THE
    22  FIRST DAY OF JANUARY OF SUCH CALENDAR YEAR.
    23     FOR THE PURPOSE OF DETERMINING THE MAXIMUM WEEKLY BENEFIT
    24  RATE, THE PENNSYLVANIA AVERAGE WEEKLY WAGE IN COVERED EMPLOYMENT
    25  SHALL BE COMPUTED ON THE BASIS OF THE TOTAL WAGES REPORTED
    26  (IRRESPECTIVE OF THE LIMIT ON THE AMOUNT OF WAGES SUBJECT TO
    27  CONTRIBUTIONS) FOR THE TWELVE-MONTH PERIOD ENDING JUNE 30 AND
    28  THIS AMOUNT SHALL BE DIVIDED BY THE AVERAGE MONTHLY NUMBER OF
    29  COVERED WORKERS (DETERMINED BY DIVIDING THE TOTAL COVERED
    30  EMPLOYMENT REPORTED FOR THE SAME FISCAL YEAR BY TWELVE) TO
    19870S1222B2371                 - 16 -

     1  DETERMINE THE AVERAGE ANNUAL WAGE. THE AVERAGE ANNUAL WAGE THUS
     2  OBTAINED SHALL BE DIVIDED BY FIFTY-TWO AND THE AVERAGE WEEKLY
     3  WAGE THUS DETERMINED ROUNDED TO THE NEAREST CENT.
     4     * * *
     5     (4)  (I)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT,
     6  EACH CLAIMANT ELIGIBLE FOR A WEEKLY BENEFIT RATE OF SEVENTY-FIVE
     7  DOLLARS ($75) OR MORE SHALL HAVE HIS WEEKLY COMPENSATION AS
     8  DETERMINED BY APPLICATION OF SUBSECTIONS (A) THROUGH (E) REDUCED
     9  BY FIVE PER CENTUM (5%)[, OR MORE IF AND WHEN THE PROVISIONS OF
    10  SECTION 314(C)(1)(III) APPLY]. IF SUCH REDUCED WEEKLY
    11  COMPENSATION IS NOT AN EVEN MULTIPLE OF ONE DOLLAR ($1), IT
    12  SHALL BE ROUNDED TO THE NEXT LOWER MULTIPLE OF ONE DOLLAR ($1):
    13  PROVIDED, THAT NO CLAIMANT WHOSE WEEKLY BENEFIT RATE, DETERMINED
    14  IN ACCORDANCE WITH SUBSECTION (A), IS IN EXCESS OF SEVENTY-FOUR
    15  DOLLARS ($74) SHALL HAVE HIS WEEKLY COMPENSATION REDUCED BELOW
    16  SEVENTY-FIVE DOLLARS ($75) EXCEPT THROUGH THE COMBINED
    17  APPLICATION OF THIS PARAGRAPH AND SUBSECTION (D). THE BALANCE IN
    18  THE CLAIMANT'S COMPENSATION ACCOUNT AS INDICATED IN PART D OR E
    19  OF THE TABLE CONTAINED IN SUBSECTION (E)(1) OF THIS SECTION
    20  SHALL BE REDUCED BY HIS WEEKLY BENEFIT AMOUNT WITHOUT REGARD TO
    21  THE REDUCTION PROVIDED HEREIN. THIS CLAUSE SHALL BE OF NO EFFECT
    22  BEGINNING WITH THE COMPENSABLE WEEK WHICH ENDS ON OR AFTER THE
    23  FIRST DAY OF JANUARY 1989.
    24     (II)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, EACH
    25  CLAIMANT SHALL HAVE HIS WEEKLY COMPENSATION AS DETERMINED BY
    26  APPLICATIONS OF SUBSECTIONS (A) THROUGH (E) REDUCED BY FIVE PER
    27  CENTUM (5%) IF AND WHEN THE PROVISIONS OF SECTION 301.7(C)
    28  APPLY, OR BY THE PER CENTUM REDETERMINED UNDER SECTION 301.8, IF
    29  AND WHEN APPLICABLE. IF SUCH REDUCED WEEKLY COMPENSATION IS NOT
    30  AN EVEN MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE ROUNDED TO THE
    19870S1222B2371                 - 17 -

     1  NEXT LOWER MULTIPLE OF ONE DOLLAR ($1): PROVIDED, THAT NO
     2  CLAIMANT WHOSE WEEKLY BENEFIT RATE, DETERMINED IN ACCORDANCE
     3  WITH SUBSECTION (A), IS IN EXCESS OF THE WEEKLY BENEFIT RATE
     4  IMMEDIATELY BELOW THE WEEKLY BENEFIT RATE THAT IS ONE-HALF OF
     5  THE MAXIMUM WEEKLY BENEFIT RATE DETERMINED IN CLAUSE (2) OF THIS
     6  SUBSECTION SHALL HAVE HIS WEEKLY COMPENSATION REDUCED BELOW ONE-
     7  HALF OF THE MAXIMUM WEEKLY BENEFIT RATE EXCEPT THROUGH THE
     8  COMBINED APPLICATION OF THIS CLAUSE AND SUBSECTION (D). THE
     9  BALANCE IN THE CLAIMANT'S COMPENSATION ACCOUNT AS INDICATED IN
    10  PART D OR E OF THE TABLE CONTAINED IN SUBSECTION (E)(1) OF THIS
    11  SECTION SHALL BE REDUCED BY HIS WEEKLY BENEFIT AMOUNT WITHOUT
    12  REGARD TO THE REDUCTION PROVIDED HEREIN. THIS CLAUSE SHALL BE IN
    13  EFFECT AS OF THE FIRST COMPENSABLE WEEK THAT ENDS ON OR AFTER
    14  THE FIRST DAY OF JANUARY 1990.
    15     (III)  FOR PURPOSES OF THIS SUBSECTION ONLY, IF ONE-HALF OF
    16  THE MAXIMUM WEEKLY BENEFIT RATE IS NOT A MULTIPLE OF ONE DOLLAR
    17  ($1), SUCH AMOUNT SHALL BE ROUNDED DOWN TO THE NEXT LOWER
    18  MULTIPLE OF ONE DOLLAR ($1) AND THEN APPLIED AS REQUIRED BY THIS
    19  SUBSECTION.
    20     * * *
    21     SECTION 5.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    22     SECTION 601.3.  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE
    23  ACCOUNT.--(A)  THERE IS HEREBY ESTABLISHED WITHIN THE GENERAL
    24  FUND OF THE STATE TREASURY A SPECIAL ACCOUNT, WHICH SHALL BE
    25  KNOWN AS THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT,
    26  FOR THE PURPOSE OF SUPPLEMENTING THE UNEMPLOYMENT COMPENSATION
    27  FUND ESTABLISHED UNDER SECTION 601. THERE SHALL BE DEPOSITED IN
    28  THIS SPECIAL ACCOUNT SUCH MONEYS AS ARE TRANSFERRED FROM THE
    29  STATE WORKMEN'S INSURANCE FUND PURSUANT TO SUBSECTION (B). ANY
    30  AMOUNTS IN THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT
    19870S1222B2371                 - 18 -

     1  SHALL BE MAINTAINED SEPARATE AND APART FROM THE UNEMPLOYMENT
     2  COMPENSATION FUND UNLESS AND UNTIL TRANSFERRED TO THE
     3  UNEMPLOYMENT COMPENSATION FUND IN ACCORDANCE WITH SECTION
     4  301.7(D). ANY INTEREST EARNED ON THE PRINCIPAL OF THE
     5  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE
     6  DEPOSITED INTO THE GENERAL FUND. ANY AMOUNTS TRANSFERRED FROM
     7  THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT TO THE
     8  UNEMPLOYMENT COMPENSATION FUND SHALL BECOME AVAILABLE FOR ANY
     9  PURPOSE PERMITTED UNDER SECTION 601.
    10     (B)  FOR THE FISCAL YEAR BEGINNING JULY 1, 1988, THE STATE
    11  WORKMEN'S INSURANCE BOARD IS HEREBY AUTHORIZED AND EMPOWERED TO
    12  TRANSFER TO THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE
    13  ACCOUNT, MONEYS WHICH WERE RECEIVED BY THE STATE WORKMEN'S
    14  INSURANCE FUND IN ANY PRIOR YEAR AS EARNINGS ON INVESTMENTS HELD
    15  BY THAT FUND. THE MAXIMUM AMOUNT WHICH MAY BE TRANSFERRED TO THE
    16  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE ONE
    17  HUNDRED FIFTY MILLION DOLLARS ($150,000,000).
    18     SECTION 6.  SECTION 804(A) OF THE ACT, AMENDED JULY 21, 1983
    19  (P.L.68, NO.30), IS AMENDED TO READ:
    20     SECTION 804.  RECOVERY AND RECOUPMENT OF COMPENSATION.--(A)
    21  ANY PERSON WHO BY REASON OF HIS FAULT HAS RECEIVED ANY SUM AS
    22  COMPENSATION UNDER THIS ACT TO WHICH HE WAS NOT ENTITLED, SHALL
    23  BE LIABLE TO REPAY TO THE UNEMPLOYMENT COMPENSATION FUND TO THE
    24  CREDIT OF THE COMPENSATION ACCOUNT A SUM EQUAL TO THE AMOUNT SO
    25  RECEIVED BY HIM AND INTEREST AT THE RATE DETERMINED BY THE
    26  SECRETARY OF REVENUE AS PROVIDED BY SECTION 806 OF THE ACT OF
    27  APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE," PER
    28  MONTH OR FRACTION OF A MONTH FROM FIFTEEN (15) DAYS AFTER THE
    29  NOTICE OF OVERPAYMENT WAS ISSUED UNTIL PAID. SUCH SUM SHALL BE
    30  COLLECTIBLE (1) IN THE MANNER PROVIDED IN SECTION 308.1 OR
    19870S1222B2371                 - 19 -

     1  SECTION 309 OF THIS ACT, FOR THE COLLECTION OF PAST DUE
     2  CONTRIBUTIONS, OR (2) BY DEDUCTION FROM ANY FUTURE COMPENSATION
     3  PAYABLE TO THE CLAIMANT UNDER THIS ACT: PROVIDED, THAT INTEREST
     4  ASSESSED UNDER THIS SECTION CANNOT BE RECOUPED BY DEDUCTION FROM
     5  ANY FUTURE COMPENSATION PAYABLE TO THE CLAIMANT UNDER THIS ACT:
     6  PROVIDED FURTHER, THAT NO ADMINISTRATIVE OR LEGAL PROCEEDINGS
     7  FOR THE COLLECTION OF SUCH SUM SHALL BE INSTITUTED AFTER THE
     8  EXPIRATION OF SIX YEARS FOLLOWING THE END OF THE BENEFIT YEAR
     9  WITH RESPECT TO WHICH SUCH SUM WAS PAID.
    10     * * *
    11     SECTION 7.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    12         (1)  THE AMENDMENTS TO SECTION 404(D) SHALL TAKE EFFECT
    13     BEGINNING WITH THE FIRST COMPENSABLE WEEK THAT ENDS ON OR
    14     AFTER JANUARY 1, 1989.
    15         (2)  THE AMENDMENTS TO SECTIONS 301.2, 301.4, 301.5,
    16     301.7, 301.8 AND 404(E) SHALL TAKE EFFECT ON THE FIRST DAY OF
    17     JANUARY 1989.
    18         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
    19     IMMEDIATELY.








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