HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1702, 1709, 1712,        PRINTER'S NO. 2488
        1737, 2283, 2371

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, NOVEMBER 14, 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  AMENDING THE ACT OF JANUARY 17, 1968 (P.L.11, NO.5), ENTITLED     <--
    29     "AN ACT ESTABLISHING A FIXED MINIMUM WAGE AND OVERTIME RATES
    30     FOR EMPLOYES, WITH CERTAIN EXCEPTIONS; PROVIDING FOR MINIMUM
    31     RATES FOR LEARNERS AND APPRENTICES; CREATING A MINIMUM WAGE
    32     ADVISORY BOARD AND DEFINING ITS POWERS AND DUTIES; CONFERRING
    33     POWERS AND IMPOSING DUTIES UPON THE DEPARTMENT OF LABOR AND
    34     INDUSTRY; IMPOSING DUTIES ON EMPLOYERS; AND PROVIDING
    35     PENALTIES," INCREASING THE MINIMUM WAGE AND REMOVING
    36     EXCEPTIONS REGARDING COVERAGE OF THE FEDERAL LAW AND PERSONS
    37     WHO ARE EMPLOYED BY CERTAIN EDUCATIONAL INSTITUTIONS.

    38     The General Assembly of the Commonwealth of Pennsylvania
    39  hereby enacts as follows:
    40     Section 1.  The following amounts, or as much thereof as may   <--
    41  be necessary, are hereby appropriated to the indicated
    42  departments for the fiscal period July 1, 1987, to June 30,
    43  1988:
    44     (1)  Department of Health.--The
    45  following amounts are appropriated to
    46  the Department of Health:
    47     For a State supplement to the
    48  Federal Special Supplemental Food
    19870S1222B2488                  - 2 -

     1  Service Program for Women, Infants and
     2  Children.
     3             State appropriation........               $15,000,000
     4     (2)  Department of Public
     5  Welfare.--The following amounts are
     6  appropriated to the Department of
     7  Public Welfare:                            Federal       State 
     8     For the Human Services Development
     9  Fund. The total appropriation shall be
    10  allocated to counties as follows: 50%
    11  shall be allocated by per capita and
    12  50% shall be allocated by poverty.
    13  Poverty shall be defined as the
    14  average number of Aid to Families with
    15  Dependent Children, General Assistance
    16  and State Blind Pension recipients in
    17  fiscal year 1985-1986 as a proportion
    18  of the Statewide average number of Aid
    19  to Families with Dependent Children,
    20  General Assistance and State Blind
    21  Pension recipients in this
    22  Commonwealth for fiscal year 1985-
    23  1986. No county shall receive a grant
    24  of less than $50,000 in State and
    25  Federal dollars combined.
    26  Under no circumstances shall any
    27  county receive less in State and
    28  Federal funds combined than that
    29  county received in fiscal year 1986-
    30  1987.
    19870S1222B2488                  - 3 -

     1             State appropriation........                13,955,000
     2     The following SSBG amounts, or as
     3  much thereof as may be necessary, are
     4  hereby specifically appropriated for
     5  the Human Services Development Fund:
     6     (1)  "Social Services - Human
     7  Services Development Fund." The total
     8  appropriation shall be allocated to
     9  counties as follows: 50% shall be
    10  allocated by per capita and 50% shall
    11  be allocated by poverty. Poverty shall
    12  be defined as the average number of
    13  Aid to Families with Dependent
    14  Children, General Assistance and State
    15  Blind Pension recipients in fiscal
    16  year 1985-1986 as a proportion of the
    17  Statewide average number of Aid to
    18  Families with Dependent Children,
    19  General Assistance and State Blind
    20  Pension recipients in this
    21  Commonwealth for fiscal year 1985-
    22  1986. No county shall receive a grant
    23  of less than $50,000 in State and
    24  Federal dollars combined. Under no
    25  circumstances shall any county receive
    26  less in State and Federal funds
    27  combined than that county received in
    28  fiscal year 1986-1987.
    29             Federal appropriation......   14,339,000            
    30     Section 2.  (a)  As much of section 215 of the act of July 3,
    19870S1222B2488                  - 4 -

     1  1987 (P.L.459, No.9A), known as the General Appropriation Act of
     2  1987, as relates to an appropriation for a State supplement to
     3  the Federal Special Supplemental Food Service Program for Women,
     4  Infants and Children, is repealed.
     5     (b)  As much of section 219 of the act of July 3, 1987
     6  (P.L.459, No.9A), known as the General Appropriations Act of
     7  1987, as relates to a State appropriation and a Federal SSBG
     8  appropriation to the Human Services Development Fund, is
     9  repealed.
    10     Section 3.  This act shall take effect immediately.
    11     SECTION 1.  THE SUM OF $13,261,000, OR AS MUCH THEREOF AS MAY  <--
    12  BE NECESSARY, IS HEREBY APPROPRIATED FROM THE STATE STORES FUND
    13  TO THE PENNSYLVANIA STATE POLICE FOR THE OPERATION OF THE BUREAU
    14  OF LIQUOR CONTROL ENFORCEMENT FOR THE FISCAL YEAR BEGINNING JULY
    15  1, 1988, AND FOR THE PAYMENT OF BILLS INCURRED AND REMAINING
    16  UNPAID AT THE CLOSE OF THE FISCAL YEAR ENDING JUNE 30, 1988.
    17     SECTION 2.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
    18     SECTION 1.  SECTIONS 301.2, 301.4 AND 301.5 OF THE ACT OF      <--
    19  DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS
    20  THE UNEMPLOYMENT COMPENSATION LAW, AMENDED OR ADDED JULY 21,
    21  1983 (P.L.68, NO.30), ARE AMENDED TO READ:
    22     SECTION 301.2.  ADDITIONAL CONTRIBUTIONS.--NOTWITHSTANDING
    23  ANY OTHER PROVISION OF THIS ACT, ALL EMPLOYERS REQUIRED TO PAY
    24  CONTRIBUTIONS UNDER SECTION 301 OR 301.1, EXCEPT THOSE SUBJECT
    25  TO THE PROVISIONS OF SECTION 301(A)(3) AND (4) OR 301.1(G),
    26  SHALL PAY ADDITIONAL CONTRIBUTIONS [EQUAL TO SEVEN-TENTHS OF ONE
    27  PER CENTUM (0.7%) FOR CALENDAR YEAR 1984, SIX-TENTHS OF ONE PER
    28  CENTUM (0.6%) FOR CALENDAR YEAR 1985 AND FIVE-TENTHS OF ONE PER
    29  CENTUM (0.5%) FOR CALENDAR YEAR 1986 AND THEREAFTER] AT A RATE
    30  OF ZERO PER CENTUM (0.0%) FOR CALENDAR YEAR 1989 AND AT A RATE
    19870S1222B2488                  - 5 -

     1  AS SET FORTH IN SECTION 301.7 FOR EACH CALENDAR YEAR THEREAFTER
     2  ON WAGES PAID WITH REGARD TO THE LIMITATION SPECIFIED UNDER
     3  SECTION 4(X)(1) OF THIS ACT.
     4     SECTION 301.4.  CONTRIBUTIONS BY EMPLOYES.--(A)
     5  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, [FOR CALENDAR
     6  YEAR 1984 AND EVERY CALENDAR YEAR THEREAFTER] EACH EMPLOYE SHALL
     7  CONTRIBUTE TO THE UNEMPLOYMENT COMPENSATION FUND [ONE-TENTH OF
     8  ONE PER CENTUM (0.1%)] AT A RATE OF ZERO PER CENTUM (0.0%) FOR
     9  CALENDAR YEAR 1989 AND AT A RATE AS SET FORTH IN SECTION 301.7
    10  FOR EACH CALENDAR YEAR THEREAFTER OF ALL WAGES PAID FOR
    11  "EMPLOYMENT" AS DEFINED BY THE ACT WITHOUT REGARD TO THE
    12  LIMITATION SPECIFIED IN SECTION 4(X)(1) OF THIS ACT.
    13     (B)  EACH EMPLOYER SUBJECT TO THIS ACT SHALL BE RESPONSIBLE
    14  FOR WITHHOLDING AND SHALL WITHHOLD, IN TRUST, SUCH CONTRIBUTIONS
    15  FROM THE WAGES OF HIS EMPLOYES AT THE TIME SUCH WAGES ARE PAID,
    16  AND SHALL REPORT AND TRANSMIT SUCH DEDUCTIONS TO THE DEPARTMENT
    17  FOR DEPOSIT INTO THE UNEMPLOYMENT COMPENSATION FUND, IN
    18  ACCORDANCE WITH RULES AND PROCEDURES ESTABLISHED BY THE
    19  DEPARTMENT.
    20     (C)  ANY EMPLOYER WHO IS AN INDIVIDUAL, OR ANY OFFICER OR
    21  AGENT OF ANY EMPLOYER, WHO VIOLATES THE TRUST PROVISION OF THIS
    22  SECTION, FAILS TO WITHHOLD, HOLD IN TRUST OR FAILS TO TRANSMIT
    23  TO THE DEPARTMENT ALL CONTRIBUTIONS WITHHELD FROM THE WAGES OF
    24  HIS EMPLOYES IN ACCORDANCE WITH THE RULES AND PROCEDURE
    25  ESTABLISHED BY THE DEPARTMENT SHALL BE SUBJECT TO THE PROVISIONS
    26  OF CLAUSE (2) OF SUBSECTION (A) OF SECTION 301 AND SECTIONS 308,
    27  308.1, 308.2, 308.3 AND 309 OF THIS ACT.
    28     (D)  THIS SECTION SHALL NOT BE DEEMED TO AFFECT OR IMPAIR THE
    29  OPERATION OF ANY STATE STATUTE OR ORDINANCE OR RESOLUTION OF A
    30  POLITICAL SUBDIVISION WHICH LEVIES OR COLLECTS ANY WAGE TAX OR
    19870S1222B2488                  - 6 -

     1  SIMILAR TAX. CONTRIBUTIONS MADE PURSUANT TO THIS SECTION ARE NOT
     2  INTENDED TO REDUCE OR OTHERWISE AFFECT ANY TAX ON WAGES OR
     3  SIMILAR TAX.
     4     SECTION 301.5.  SURCHARGE.--[(A)  NOTWITHSTANDING ANY OTHER
     5  PROVISIONS OF THIS ACT, ALL EMPLOYERS SUBJECT TO THIS ACT (OTHER
     6  THAN EMPLOYERS WHO HAVE ELECTED, PURSUANT TO SECTION 1102 OR
     7  1202.2, TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS) SHALL BE
     8  ASSESSED A SURCHARGE OF FIFTEEN PER CENTUM (15%) OF THE
     9  CONTRIBUTIONS DUE FOR 1983 WITHOUT REGARD TO THE TAX CREDIT
    10  GRANTED UNDER SUBSECTION (C) OF SECTION 301.3. ADDITIONAL
    11  CONTRIBUTIONS DUE UNDER THIS SECTION FOR THE PERIOD OF JANUARY
    12  THROUGH SEPTEMBER 1983 SHALL BE PAYABLE ON OR BEFORE OCTOBER 31,
    13  1983. ADDITIONAL CONTRIBUTIONS DUE UNDER THIS SECTION FOR THE
    14  PERIOD OF OCTOBER THROUGH DECEMBER 1983 SHALL BE PAYABLE ON OR
    15  BEFORE JANUARY 31, 1984. SUCH ADDITIONAL CONTRIBUTIONS DUE UNDER
    16  THIS SECTION SHALL BE COLLECTIBLE IN THE MANNER PROVIDED IN
    17  SECTIONS 308.1, 308.2, 308.3 AND 309 OF THIS ACT.
    18     (B)  THIS SECTION SHALL NOT APPLY TO CONTRIBUTIONS ON WAGES
    19  PAID DURING THE PERIOD JANUARY 1, 1983, THROUGH JUNE 30, 1983,
    20  BY JOBBERS, MANUFACTURERS, CONTRACTORS OR SUBCONTRACTORS WITH A
    21  STANDARD INDUSTRIAL CODE CLASSIFICATION OF 23 FOR WORK ON THE
    22  GOODS OR PREMISES OF THE JOBBER OR MANUFACTURER OR PERFORMING
    23  PARTS OF AN INTEGRATED PROCESS OF PRODUCTION IN THE APPAREL
    24  INDUSTRY.] NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, ALL
    25  EMPLOYERS SUBJECT TO THIS ACT (OTHER THAN EMPLOYERS WHO ARE
    26  SUBJECT TO SECTION 1003 OR WHO HAVE ELECTED, PURSUANT TO SECTION
    27  1102 OR 1202.2, TO MAKE PAYMENTS IN LIEU OF CONTRIBUTIONS) SHALL
    28  BE ASSESSED A SURCHARGE ON CONTRIBUTIONS DUE FROM EMPLOYERS AT A
    29  RATE OF ZERO PER CENTUM (0.0%) FOR CALENDAR YEAR 1989 AND AT A
    30  RATE AS SET FORTH IN SECTION 301.7 FOR EACH CALENDAR YEAR
    19870S1222B2488                  - 7 -

     1  THEREAFTER. SUCH ADDITIONAL CONTRIBUTIONS DUE UNDER THIS SECTION
     2  SHALL BE COLLECTIBLE IN THE MANNER PROVIDED IN SECTIONS 308.1,
     3  308.2, 308.3 AND 309 OF THIS ACT.
     4     SECTION 2.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
     5     SECTION 301.7.  TRIGGER DETERMINATION.--(A)  ON JULY 1 OF
     6  EVERY YEAR, THE SECRETARY SHALL CALCULATE THE TRIGGER PERCENTAGE
     7  TO BE USED IN SETTING SURCHARGE AND CONTRIBUTION RATES FOR THE
     8  CONTRIBUTIONS REQUIRED UNDER SECTIONS 301.2, 301.4 AND 301.5 AND
     9  IN SETTING THE BENEFIT REDUCTION REQUIRED UNDER SECTION
    10  404(E)(4) FOR THE FOLLOWING CALENDAR YEAR. THE SECRETARY SHALL:
    11     (1)  DETERMINE THE NET BALANCE IN THE UNEMPLOYMENT
    12  COMPENSATION TRUST FUND;
    13     (2)  DETERMINE THE AVERAGE OF THE UNEMPLOYMENT COMPENSATION
    14  FUND BENEFIT COSTS FOR THE THREE IMMEDIATELY PRECEDING FISCAL
    15  YEARS; AND
    16     (3)  CALCULATE THE PERCENTAGE THAT THE UNEMPLOYMENT
    17  COMPENSATION TRUST FUND REPRESENTS OF THE AVERAGE OF THE BENEFIT
    18  COSTS.
    19     (B)  SURCHARGE AND CONTRIBUTION RATES SHALL BE ANNOUNCED BY
    20  THE SECRETARY ON JULY 1 OF EVERY YEAR IN ACCORDANCE WITH THE
    21  FOLLOWING SCHEDULE:
    22     (1)  WHEN THE TRIGGER PERCENTAGE IS ONE HUNDRED AND FIFTY PER
    23  CENTUM (150%) OR HIGHER, THE RATE OF THE SURCHARGE ASSESSED
    24  UNDER SECTION 301.5 SHALL BE A NEGATIVE ONE AND ONE-HALF PER
    25  CENTUM (1.5%).
    26     (2)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST ONE HUNDRED AND
    27  TWENTY-FIVE PER CENTUM (125%), BUT LESS THAN ONE HUNDRED AND
    28  FIFTY PER CENTUM (150%), THERE SHALL BE NO SURCHARGE OR
    29  CONTRIBUTION UNDER SECTION 301.2, 301.4 OR 301.5.
    30     (3)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST ONE HUNDRED TEN
    19870S1222B2488                  - 8 -

     1  PER CENTUM (110%), BUT LESS THAN ONE HUNDRED TWENTY-FIVE PER
     2  CENTUM (125%):
     3     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
     4  SHALL BE FOUR PER CENTUM (4%); AND
     5     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
     6  SHALL BE FIVE HUNDREDTHS OF ONE PER CENTUM (.05%).
     7     (4)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST NINETY-FIVE PER
     8  CENTUM (95%), BUT LESS THAN ONE HUNDRED TEN PER CENTUM (110%):
     9     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    10  SHALL BE EIGHT PER CENTUM (8%); AND
    11     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    12  SHALL BE ONE-TENTH OF ONE PER CENTUM (0.1%).
    13     (5)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST SEVENTY-FIVE PER
    14  CENTUM (75%), BUT LESS THAN NINETY-FIVE PER CENTUM (95%):
    15     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    16  SHALL BE EIGHT PER CENTUM (8%);
    17     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    18  SHALL BE FIFTEEN HUNDREDTHS OF ONE PER CENTUM (0.15%); AND
    19     (III)  THE RATE OF ADDITIONAL CONTRIBUTIONS ASSESSED UNDER
    20  SECTION 301.2 SHALL BE TWENTY-FIVE HUNDREDTHS OF ONE PER CENTUM
    21  (0.25%).
    22     (6)  WHEN THE TRIGGER PERCENTAGE IS AT LEAST FIFTY PER CENTUM
    23  (50%), BUT LESS THAN SEVENTY-FIVE PER CENTUM (75%):
    24     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
    25  SHALL BE EIGHT PER CENTUM (8%);
    26     (II)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
    27  SHALL BE TWO TENTHS OF ONE PER CENTUM (0.2%); AND
    28     (III)  THE RATE OF ADDITIONAL CONTRIBUTION ASSESSED UNDER
    29  SECTION 301.2 SHALL BE FIVE TENTHS OF ONE PER CENTUM (0.5%).
    30     (7)  WHEN THE TRIGGER PERCENTAGE IS LESS THAN FIFTY PER
    19870S1222B2488                  - 9 -

     1  CENTUM (50%):
     2     (I)  THE RATE OF THE SURCHARGE ASSESSED UNDER SECTION 301.5
     3  SHALL BE EIGHT PER CENTUM (8%);
     4     (II)  THE RATE OF ADDITIONAL CONTRIBUTION ASSESSED UNDER
     5  SECTION 301.2 SHALL BE SEVENTY-FIVE HUNDREDTHS OF ONE PER CENTUM
     6  (0.75%); AND
     7     (III)  THE RATE OF CONTRIBUTIONS ASSESSED UNDER SECTION 301.4
     8  SHALL BE TWO TENTHS OF ONE PER CENTUM (0.2%).
     9     (C)  WHENEVER THE TRIGGER PERCENTAGE DETERMINED UNDER
    10  SUBSECTION (A) IS LESS THAN FIFTY PER CENTUM (50%), THE
    11  SECRETARY SHALL ANNOUNCE A REDUCTION IN THE WEEKLY BENEFIT RATE
    12  UNDER SECTION 404(E)(4).
    13     (D)  WHENEVER THE TRIGGER PERCENTAGE IS LESS THAN TWENTY-FIVE
    14  PER CENTUM (25%), ANY BALANCE REMAINING IN THE UNEMPLOYMENT
    15  COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE TRANSFERRED TO THE
    16  UNEMPLOYMENT COMPENSATION TRUST FUND.
    17     SECTION 301.8.  TRIGGER RATE REDETERMINATIONS.--(A)
    18  BEGINNING IN 1992 AND EACH FIFTH YEAR THEREAFTER, THE SECRETARY
    19  SHALL REDETERMINE THE RATES OF THE SURCHARGE, EMPLOYE TAX,
    20  ADDITIONAL CONTRIBUTIONS AND BENEFIT REDUCTION OTHERWISE
    21  APPLICABLE UNDER SECTIONS 301.7 AND 404(E)(4). THE SECRETARY
    22  SHALL REDETERMINE THE RATES SO THAT THE UNROUNDED RATES YIELD
    23  CONTRIBUTION INCREASES AND BENEFIT REDUCTIONS, ON A CALENDAR
    24  YEAR BASIS, APPROXIMATELY EQUAL TO THE DOLLAR AMOUNTS SPECIFIED
    25  IN SUBSECTION (B). THE RATES AS REDETERMINED SHALL TAKE EFFECT
    26  ON JANUARY 1 OF THE FOLLOWING CALENDAR YEAR AND SHALL REMAIN IN
    27  EFFECT FOR FIVE YEARS.
    28     (B)  THE RATES SHALL BE ADJUSTED TO YIELD THE AMOUNTS
    29  INDICATED AT THE FOLLOWING TRIGGER PERCENTAGES:
    30     (1)  AT LEAST ONE HUNDRED FIFTY PER CENTUM (150%), THE
    19870S1222B2488                 - 10 -

     1  NEGATIVE SURCHARGE ASSESSED UNDER SECTION 301.5 SHALL RESULT IN
     2  AN EMPLOYER CONTRIBUTION REDUCTION OF EIGHTEEN MILLION DOLLARS
     3  ($18,000,000);
     4     (2)  AT LEAST ONE HUNDRED TEN PER CENTUM (110%) BUT LESS THAN
     5  ONE HUNDRED TWENTY-FIVE PER CENTUM (125%), THE SURCHARGE
     6  ASSESSED UNDER SECTION 301.5 SHALL YIELD FIFTY MILLION DOLLARS
     7  ($50,000,000) AND THE EMPLOYE TAX UNDER SECTION 301.4 SHALL
     8  YIELD THIRTY-THREE MILLION THREE HUNDRED THIRTY-THREE THOUSAND
     9  THREE HUNDRED THIRTY-THREE DOLLARS ($33,333,333);
    10     (3)  AT LEAST NINETY-FIVE PER CENTUM (95%) BUT LESS THAN ONE
    11  HUNDRED TEN PER CENTUM (110%), THE SURCHARGE ASSESSED UNDER
    12  SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
    13  ($100,000,000) AND THE EMPLOYE TAX UNDER SECTION 301.4 SHALL
    14  YIELD SIXTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX
    15  HUNDRED SIXTY-SIX DOLLARS ($66,666,666);
    16     (4)  AT LEAST SEVENTY-FIVE PER CENTUM (75%) BUT LESS THAN
    17  NINETY-FIVE PER CENTUM (95%), THE SURCHARGE ASSESSED UNDER
    18  SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
    19  ($100,000,000), THE ADDITIONAL CONTRIBUTIONS UNDER SECTION 301.2
    20  SHALL YIELD SEVENTY-FIVE MILLION DOLLARS ($75,000,000), AND THE
    21  EMPLOYE TAX UNDER SECTION 301.4 SHALL YIELD ONE HUNDRED SIXTEEN
    22  MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX
    23  DOLLARS ($116,666,666);
    24     (5)  AT LEAST FIFTY PER CENTUM (50%) BUT LESS THAN SEVENTY-
    25  FIVE PER CENTUM (75%), THE SURCHARGE ASSESSED UNDER SECTION
    26  301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS ($100,000,000),
    27  THE ADDITIONAL CONTRIBUTION UNDER SECTION 301.2 SHALL YIELD ONE
    28  HUNDRED FIFTY MILLION DOLLARS ($150,000,000), AND THE EMPLOYE
    29  TAX UNDER SECTION 301.4 SHALL YIELD ONE HUNDRED SIXTY-SIX
    30  MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SIX
    19870S1222B2488                 - 11 -

     1  DOLLARS ($166,666,666);
     2     (6)  LESS THAN FIFTY PER CENTUM (50%), THE SURCHARGE ASSESSED
     3  UNDER SECTION 301.5 SHALL YIELD ONE HUNDRED MILLION DOLLARS
     4  ($100,000,000), THE ADDITIONAL CONTRIBUTION UNDER SECTION 301.2
     5  SHALL YIELD TWO HUNDRED TWENTY-FIVE MILLION DOLLARS
     6  ($225,000,000), THE EMPLOYE TAX UNDER SECTION 301.4 SHALL YIELD
     7  ONE HUNDRED SIXTY-SIX MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX
     8  HUNDRED SIXTY-SIX DOLLARS ($166,666,666), AND THE BENEFIT
     9  REDUCTION UNDER SECTION 404(E)(4) SHALL YIELD FIFTY-TWO MILLION
    10  DOLLARS ($52,000,000).
    11     (C)  FOR THE PURPOSE OF REDETERMINING THE RATES UNDER THIS
    12  SECTION, THE SECRETARY SHALL UTILIZE THE NECESSARY CONTRIBUTION
    13  AND BENEFIT ACTIVITY DATA FROM THE CALENDAR YEAR IMMEDIATELY
    14  PRECEDING THE YEAR IN WHICH THE REDETERMINATION IS TO BE DONE.
    15     (D)  THE FIRST REDETERMINATION SHALL BE DONE BY JUNE 30,
    16  1992, AND THE RATES SHALL BE REDETERMINED EACH FIFTH SUCCEEDING
    17  JUNE 30 AND THE APPLICABLE REDETERMINED RATES SHALL TAKE EFFECT
    18  THE NEXT JANUARY 1.
    19     (E)  THE REDETERMINED RATES SHALL BE ROUNDED IN ACCORDANCE
    20  WITH THE FOLLOWING SCHEDULE:
    21     (1)  IF THE RATE FOR THE SURCHARGE ASSESSED UNDER SECTION
    22  301.5 IS NOT A MULTIPLE OF ONE TENTH OF ONE PER CENTUM (0.1%),
    23  IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE TENTH OF
    24  ONE PER CENTUM (0.1%);
    25     (2)  IF THE RATE FOR THE EMPLOYE TAX UNDER SECTION 301.4 IS
    26  NOT A MULTIPLE OF ONE HUNDREDTH OF ONE PER CENTUM (0.01%) IT
    27  SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE HUNDREDTH OF
    28  ONE PER CENTUM (0.01%);
    29     (3)  IF THE RATE FOR THE ADDITIONAL CONTRIBUTION UNDER
    30  SECTION 301.2 IS NOT A MULTIPLE OF FIVE HUNDREDTHS OF ONE PER
    19870S1222B2488                 - 12 -

     1  CENTUM (0.05%), IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE
     2  OF FIVE HUNDREDTHS OF ONE PER CENTUM (0.05%);
     3     (4)  IF THE RATE FOR THE BENEFIT REDUCTION UNDER SECTION
     4  404(E)(4) IS NOT A MULTIPLE OF ONE TENTH OF ONE PER CENTUM
     5  (0.1%), IT SHALL BE ROUNDED TO THE NEXT HIGHER MULTIPLE OF ONE
     6  TENTH OF ONE PER CENTUM (0.1%).
     7     SECTION 3.  SECTION 314 OF THE ACT IS REPEALED.
     8     SECTION 4.  THE INTRODUCTORY PARAGRAPH AND SUBSECTIONS (D)
     9  AND (E)(2) AND (4) OF SECTION 404 OF THE ACT, AMENDED OR ADDED
    10  DECEMBER 5, 1974 (P.L.771, NO.262) AND JULY 21, 1983 (P.L.68,
    11  NO.30), ARE AMENDED TO READ:
    12     SECTION 404.  RATE AND AMOUNT OF COMPENSATION.--COMPENSATION
    13  SHALL BE PAID TO EACH ELIGIBLE EMPLOYE IN ACCORDANCE WITH THE
    14  FOLLOWING PROVISIONS OF THIS SECTION EXCEPT THAT COMPENSATION
    15  PAYABLE WITH RESPECT TO WEEKS ENDING IN BENEFIT YEARS WHICH
    16  BEGIN PRIOR TO THE FIRST DAY OF [JANUARY 1984] JANUARY 1989
    17  SHALL BE PAID ON THE BASIS OF THE PROVISIONS OF THIS SECTION IN
    18  EFFECT AT THE BEGINNING OF SUCH BENEFIT YEARS.
    19     * * *
    20     (D)  (1)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
    21  SECTION EACH ELIGIBLE EMPLOYE WHO IS UNEMPLOYED WITH RESPECT TO
    22  ANY WEEK ENDING SUBSEQUENT TO JULY 1, 1980 SHALL BE PAID, WITH
    23  RESPECT TO SUCH WEEK, COMPENSATION IN AN AMOUNT EQUAL TO HIS
    24  WEEKLY BENEFIT RATE LESS THE TOTAL OF (I) THE REMUNERATION, IF
    25  ANY, PAID OR PAYABLE TO HIM WITH RESPECT TO SUCH WEEK FOR
    26  SERVICES PERFORMED WHICH IS IN EXCESS OF HIS PARTIAL BENEFIT
    27  CREDIT[;] AND (II) VACATION PAY, IF ANY, WHICH IS IN EXCESS OF
    28  HIS PARTIAL BENEFIT CREDIT, EXCEPT WHEN PAID TO AN EMPLOYE WHO
    29  IS PERMANENTLY OR INDEFINITELY SEPARATED FROM HIS EMPLOYMENT
    30  [AND (III) AN AMOUNT EQUAL TO THE AMOUNT OF A GOVERNMENTAL OR
    19870S1222B2488                 - 13 -

     1  OTHER PENSION, RETIREMENT OR RETIRED PAY, ANNUITY, OR ANY OTHER
     2  SIMILAR PERIODIC PAYMENT WHICH IS BASED ON THE PREVIOUS WORK OF
     3  SUCH INDIVIDUAL, WHICH IS REASONABLY ATTRIBUTABLE TO SUCH WEEK,
     4  IN ACCORDANCE WITH THIS SUBSECTION. THE PROVISIONS OF THIS
     5  SUBSECTION SHALL BE APPLICABLE WHETHER OR NOT SUCH VACATION PAY,
     6  RETIREMENT PENSION OR ANNUITIES, OR WAGES ARE LEGALLY REQUIRED
     7  TO BE PAID. IF SUCH RETIREMENT PENSION OR ANNUITY PAYMENTS
     8  DEDUCTIBLE UNDER THE PROVISIONS OF THIS SUBSECTION ARE RECEIVED
     9  ON OTHER THAN A WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE
    10  ALLOCATED AND PRO-RATED IN ACCORDANCE WITH THE RULES AND
    11  REGULATIONS OF THE DEPARTMENT. VACATION PAY, OR OTHER
    12  REMUNERATION DEDUCTIBLE UNDER THE PROVISIONS OF THIS SUBSECTION
    13  SHALL BE PRO-RATED ON THE BASIS OF THE EMPLOYE'S NORMAL FULL-
    14  TIME WEEKLY WAGE AND AS SO PRO-RATED SHALL BE ALLOCATED TO SUCH
    15  PERIOD OR PERIODS OF UNEMPLOYMENT AS SHALL BE DETERMINED BY
    16  RULES AND REGULATIONS OF THE DEPARTMENT. SUCH COMPENSATION, IF
    17  NOT A MULTIPLE OF ONE DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT
    18  LOWER MULTIPLE OF ONE DOLLAR ($1)].
    19     (2)  (I)  IN ADDITION TO THE DEDUCTIONS PROVIDED FOR IN
    20  CLAUSE (1), FOR ANY WEEK WITH RESPECT TO WHICH AN INDIVIDUAL IS
    21  RECEIVING A PENSION, INCLUDING A GOVERNMENTAL OR OTHER PENSION,
    22  RETIREMENT OR RETIRED PAY, ANNUITY OR ANY OTHER SIMILAR PERIODIC
    23  PAYMENT, UNDER A PLAN MAINTAINED OR CONTRIBUTED TO BY A BASE
    24  PERIOD OR CHARGEABLE EMPLOYER, THE WEEKLY BENEFIT AMOUNT PAYABLE
    25  TO SUCH INDIVIDUAL FOR SUCH WEEK SHALL BE REDUCED, BUT NOT BELOW
    26  ZERO, BY THE PRO-RATED WEEKLY AMOUNT OF THE PENSION AS
    27  DETERMINED UNDER SUBCLAUSE (II).
    28     (II)  IF THE PENSION IS ENTIRELY CONTRIBUTED TO BY THE
    29  EMPLOYER, THEN ONE HUNDRED PER CENTUM (100%) OF THE PRO-RATED
    30  WEEKLY AMOUNT OF THE PENSION SHALL BE DEDUCTED. IF THE PENSION
    19870S1222B2488                 - 14 -

     1  IS CONTRIBUTED TO BY THE INDIVIDUAL, IN ANY AMOUNT, THEN FIFTY
     2  PER CENTUM (50%) OF THE PRO-RATED WEEKLY AMOUNT OF THE PENSION
     3  SHALL BE DEDUCTED.
     4     (III)  NO DEDUCTION SHALL BE MADE UNDER THIS CLAUSE BY REASON
     5  OF THE RECEIPT OF A PENSION IF THE SERVICES PERFORMED BY THE
     6  INDIVIDUAL DURING THE BASE PERIOD OR REMUNERATION RECEIVED FOR
     7  SUCH SERVICES FOR SUCH EMPLOYER DID NOT AFFECT THE INDIVIDUAL'S
     8  ELIGIBILITY FOR, OR INCREASE THE AMOUNT OF, SUCH PENSION,
     9  RETIREMENT OR RETIRED PAY, ANNUITY OR SIMILAR PAYMENT. THIS
    10  SUBCLAUSE SHALL NOT APPLY TO PENSIONS PAID UNDER THE SOCIAL
    11  SECURITY ACT (PUBLIC LAW 74-271, 42 U.S.C. § 301 ET SEQ.), OR
    12  THE RAILROAD RETIREMENT ACT OF 1974 (PUBLIC LAW 93-445, 88 STAT.
    13  1305), OR THE CORRESPONDING PROVISIONS OF PRIOR LAW. PAYMENTS
    14  MADE UNDER SUCH ACTS SHALL BE TREATED SOLELY IN THE MANNER
    15  SPECIFIED BY SUBCLAUSE (I) OF THIS CLAUSE.
    16     (3)  THE PROVISIONS OF THIS SUBSECTION SHALL BE APPLICABLE
    17  WHETHER OR NOT SUCH VACATION PAY, RETIREMENT PENSION OR
    18  ANNUITIES OR WAGES ARE LEGALLY REQUIRED TO BE PAID. IF SUCH
    19  RETIREMENT PENSION OR ANNUITY PAYMENTS DEDUCTIBLE UNDER THE
    20  PROVISIONS OF THIS SUBSECTION ARE RECEIVED ON OTHER THAN A
    21  WEEKLY BASIS, THE AMOUNT THEREOF SHALL BE ALLOCATED AND PRO-
    22  RATED IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE
    23  DEPARTMENT. VACATION PAY OR OTHER REMUNERATION DEDUCTIBLE UNDER
    24  THE PROVISIONS OF THIS SUBSECTION SHALL BE PRO-RATED ON THE
    25  BASIS OF THE EMPLOYE'S NORMAL FULL-TIME WEEKLY WAGE AND AS SO
    26  PRO-RATED SHALL BE ALLOCATED TO SUCH PERIOD OR PERIODS OF
    27  UNEMPLOYMENT AS SHALL BE DETERMINED BY RULES AND REGULATIONS OF
    28  THE DEPARTMENT. SUCH COMPENSATION, IF NOT A MULTIPLE OF ONE
    29  DOLLAR ($1), SHALL BE COMPUTED TO THE NEXT LOWER MULTIPLE OF ONE
    30  DOLLAR ($1).
    19870S1222B2488                 - 15 -

     1     * * *
     2     (E)  * * *
     3     (2)  THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE AND
     4  AMOUNT OF BENEFITS SHALL BE EXTENDED OR CONTRACTED ANNUALLY,
     5  AUTOMATICALLY BY REGULATIONS PROMULGATED BY THE SECRETARY IN
     6  ACCORDANCE WITH THE FOLLOWING PROCEDURE: FOR CALENDAR YEAR ONE
     7  THOUSAND NINE HUNDRED SEVENTY-TWO AND FOR ALL SUBSEQUENT
     8  CALENDAR YEARS, TO A POINT WHERE THE MAXIMUM WEEKLY BENEFIT RATE
     9  EQUALS SIXTY-SIX AND TWO-THIRDS PER CENTUM OF THE AVERAGE WEEKLY
    10  WAGE FOR THE TWELVE-MONTH PERIOD ENDING JUNE 30 PRECEDING EACH
    11  CALENDAR YEAR. IF THE MAXIMUM WEEKLY BENEFIT RATE IS NOT A
    12  MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE INCREASED BY ONE DOLLAR
    13  ($1) AND THEN ROUNDED TO THE NEXT [HIGHER] LOWER MULTIPLE OF ONE
    14  DOLLAR ($1): PROVIDED, HOWEVER, THAT EFFECTIVE WITH BENEFIT
    15  YEARS BEGINNING THE FIRST SUNDAY AT LEAST THIRTY DAYS AFTER THE
    16  EFFECTIVE DATE OF THIS AMENDATORY ACT, THE PER CENTUM STATED IN
    17  THIS PARAGRAPH FOR ESTABLISHING THE MAXIMUM WEEKLY BENEFIT RATE
    18  SHALL BE SIXTY-TWO AND TWO-THIRDS PER CENTUM FOR THE REMAINDER
    19  OF CALENDAR YEAR ONE THOUSAND NINE HUNDRED SEVENTY-FOUR, SIXTY-
    20  FOUR AND TWO-THIRDS PER CENTUM FOR THE CALENDAR YEAR ONE
    21  THOUSAND NINE HUNDRED SEVENTY-FIVE, AND SIXTY-SIX AND TWO-THIRDS
    22  PER CENTUM FOR THE CALENDAR YEAR ONE THOUSAND NINE HUNDRED
    23  SEVENTY-SIX AND FOR ALL SUBSEQUENT CALENDAR YEARS.
    24     THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE AND AMOUNT
    25  OF BENEFITS AS SO EXTENDED OR CONTRACTED SHALL BE EFFECTIVE ONLY
    26  FOR THOSE CLAIMANTS WHOSE BENEFIT YEARS BEGIN ON OR AFTER THE
    27  FIRST DAY OF JANUARY OF SUCH CALENDAR YEAR.
    28     FOR THE PURPOSE OF DETERMINING THE MAXIMUM WEEKLY BENEFIT
    29  RATE, THE PENNSYLVANIA AVERAGE WEEKLY WAGE IN COVERED EMPLOYMENT
    30  SHALL BE COMPUTED ON THE BASIS OF THE TOTAL WAGES REPORTED
    19870S1222B2488                 - 16 -

     1  (IRRESPECTIVE OF THE LIMIT ON THE AMOUNT OF WAGES SUBJECT TO
     2  CONTRIBUTIONS) FOR THE TWELVE-MONTH PERIOD ENDING JUNE 30 AND
     3  THIS AMOUNT SHALL BE DIVIDED BY THE AVERAGE MONTHLY NUMBER OF
     4  COVERED WORKERS (DETERMINED BY DIVIDING THE TOTAL COVERED
     5  EMPLOYMENT REPORTED FOR THE SAME FISCAL YEAR BY TWELVE) TO
     6  DETERMINE THE AVERAGE ANNUAL WAGE. THE AVERAGE ANNUAL WAGE THUS
     7  OBTAINED SHALL BE DIVIDED BY FIFTY-TWO AND THE AVERAGE WEEKLY
     8  WAGE THUS DETERMINED ROUNDED TO THE NEAREST CENT.
     9     * * *
    10     (4)  (I)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT,
    11  EACH CLAIMANT ELIGIBLE FOR A WEEKLY BENEFIT RATE OF SEVENTY-FIVE
    12  DOLLARS ($75) OR MORE SHALL HAVE HIS WEEKLY COMPENSATION AS
    13  DETERMINED BY APPLICATION OF SUBSECTIONS (A) THROUGH (E) REDUCED
    14  BY FIVE PER CENTUM (5%)[, OR MORE IF AND WHEN THE PROVISIONS OF
    15  SECTION 314(C)(1)(III) APPLY]. IF SUCH REDUCED WEEKLY
    16  COMPENSATION IS NOT AN EVEN MULTIPLE OF ONE DOLLAR ($1), IT
    17  SHALL BE ROUNDED TO THE NEXT LOWER MULTIPLE OF ONE DOLLAR ($1):
    18  PROVIDED, THAT NO CLAIMANT WHOSE WEEKLY BENEFIT RATE, DETERMINED
    19  IN ACCORDANCE WITH SUBSECTION (A), IS IN EXCESS OF SEVENTY-FOUR
    20  DOLLARS ($74) SHALL HAVE HIS WEEKLY COMPENSATION REDUCED BELOW
    21  SEVENTY-FIVE DOLLARS ($75) EXCEPT THROUGH THE COMBINED
    22  APPLICATION OF THIS PARAGRAPH AND SUBSECTION (D). THE BALANCE IN
    23  THE CLAIMANT'S COMPENSATION ACCOUNT AS INDICATED IN PART D OR E
    24  OF THE TABLE CONTAINED IN SUBSECTION (E)(1) OF THIS SECTION
    25  SHALL BE REDUCED BY HIS WEEKLY BENEFIT AMOUNT WITHOUT REGARD TO
    26  THE REDUCTION PROVIDED HEREIN. THIS CLAUSE SHALL BE OF NO EFFECT
    27  BEGINNING WITH THE COMPENSABLE WEEK WHICH ENDS ON OR AFTER THE
    28  FIRST DAY OF JANUARY 1989.
    29     (II)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, EACH
    30  CLAIMANT SHALL HAVE HIS WEEKLY COMPENSATION AS DETERMINED BY
    19870S1222B2488                 - 17 -

     1  APPLICATIONS OF SUBSECTIONS (A) THROUGH (E) REDUCED BY FIVE PER
     2  CENTUM (5%) IF AND WHEN THE PROVISIONS OF SECTION 301.7(C)
     3  APPLY, OR BY THE PER CENTUM REDETERMINED UNDER SECTION 301.8, IF
     4  AND WHEN APPLICABLE. IF SUCH REDUCED WEEKLY COMPENSATION IS NOT
     5  AN EVEN MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE ROUNDED TO THE
     6  NEXT LOWER MULTIPLE OF ONE DOLLAR ($1): PROVIDED, THAT NO
     7  CLAIMANT WHOSE WEEKLY BENEFIT RATE, DETERMINED IN ACCORDANCE
     8  WITH SUBSECTION (A), IS IN EXCESS OF THE WEEKLY BENEFIT RATE
     9  IMMEDIATELY BELOW THE WEEKLY BENEFIT RATE THAT IS ONE-HALF OF
    10  THE MAXIMUM WEEKLY BENEFIT RATE DETERMINED IN CLAUSE (2) OF THIS
    11  SUBSECTION SHALL HAVE HIS WEEKLY COMPENSATION REDUCED BELOW ONE-
    12  HALF OF THE MAXIMUM WEEKLY BENEFIT RATE EXCEPT THROUGH THE
    13  COMBINED APPLICATION OF THIS CLAUSE AND SUBSECTION (D). THE
    14  BALANCE IN THE CLAIMANT'S COMPENSATION ACCOUNT AS INDICATED IN
    15  PART D OR E OF THE TABLE CONTAINED IN SUBSECTION (E)(1) OF THIS
    16  SECTION SHALL BE REDUCED BY HIS WEEKLY BENEFIT AMOUNT WITHOUT
    17  REGARD TO THE REDUCTION PROVIDED HEREIN. THIS CLAUSE SHALL BE IN
    18  EFFECT AS OF THE FIRST COMPENSABLE WEEK THAT ENDS ON OR AFTER
    19  THE FIRST DAY OF JANUARY 1990.
    20     (III)  FOR PURPOSES OF THIS SUBSECTION ONLY, IF ONE-HALF OF
    21  THE MAXIMUM WEEKLY BENEFIT RATE IS NOT A MULTIPLE OF ONE DOLLAR
    22  ($1), SUCH AMOUNT SHALL BE ROUNDED DOWN TO THE NEXT LOWER
    23  MULTIPLE OF ONE DOLLAR ($1) AND THEN APPLIED AS REQUIRED BY THIS
    24  SUBSECTION.
    25     * * *
    26     SECTION 5.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    27     SECTION 601.3.  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE
    28  ACCOUNT.--(A)  THERE IS HEREBY ESTABLISHED WITHIN THE GENERAL
    29  FUND OF THE STATE TREASURY A SPECIAL ACCOUNT, WHICH SHALL BE
    30  KNOWN AS THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT,
    19870S1222B2488                 - 18 -

     1  FOR THE PURPOSE OF SUPPLEMENTING THE UNEMPLOYMENT COMPENSATION
     2  FUND ESTABLISHED UNDER SECTION 601. THERE SHALL BE DEPOSITED IN
     3  THIS SPECIAL ACCOUNT SUCH MONEYS AS ARE TRANSFERRED FROM THE
     4  STATE WORKMEN'S INSURANCE FUND PURSUANT TO SUBSECTION (B). ANY
     5  AMOUNTS IN THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT
     6  SHALL BE MAINTAINED SEPARATE AND APART FROM THE UNEMPLOYMENT
     7  COMPENSATION FUND UNLESS AND UNTIL TRANSFERRED TO THE
     8  UNEMPLOYMENT COMPENSATION FUND IN ACCORDANCE WITH SECTION
     9  301.7(D). ANY INTEREST EARNED ON THE PRINCIPAL OF THE
    10  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE
    11  DEPOSITED INTO THE GENERAL FUND. ANY AMOUNTS TRANSFERRED FROM
    12  THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT TO THE
    13  UNEMPLOYMENT COMPENSATION FUND SHALL BECOME AVAILABLE FOR ANY
    14  PURPOSE PERMITTED UNDER SECTION 601.
    15     (B)  FOR THE FISCAL YEAR BEGINNING JULY 1, 1988, THE STATE
    16  WORKMEN'S INSURANCE BOARD IS HEREBY AUTHORIZED AND EMPOWERED TO
    17  TRANSFER TO THE UNEMPLOYMENT COMPENSATION TRIGGER RESERVE
    18  ACCOUNT, MONEYS WHICH WERE RECEIVED BY THE STATE WORKMEN'S
    19  INSURANCE FUND IN ANY PRIOR YEAR AS EARNINGS ON INVESTMENTS HELD
    20  BY THAT FUND. THE MAXIMUM AMOUNT WHICH MAY BE TRANSFERRED TO THE
    21  UNEMPLOYMENT COMPENSATION TRIGGER RESERVE ACCOUNT SHALL BE ONE
    22  HUNDRED FIFTY MILLION DOLLARS ($150,000,000).
    23     SECTION 6.  SECTION 804(A) OF THE ACT, AMENDED JULY 21, 1983
    24  (P.L.68, NO.30), IS AMENDED TO READ:
    25     SECTION 804.  RECOVERY AND RECOUPMENT OF COMPENSATION.--(A)
    26  ANY PERSON WHO BY REASON OF HIS FAULT HAS RECEIVED ANY SUM AS
    27  COMPENSATION UNDER THIS ACT TO WHICH HE WAS NOT ENTITLED, SHALL
    28  BE LIABLE TO REPAY TO THE UNEMPLOYMENT COMPENSATION FUND TO THE
    29  CREDIT OF THE COMPENSATION ACCOUNT A SUM EQUAL TO THE AMOUNT SO
    30  RECEIVED BY HIM AND INTEREST AT THE RATE DETERMINED BY THE
    19870S1222B2488                 - 19 -

     1  SECRETARY OF REVENUE AS PROVIDED BY SECTION 806 OF THE ACT OF
     2  APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE," PER
     3  MONTH OR FRACTION OF A MONTH FROM FIFTEEN (15) DAYS AFTER THE
     4  NOTICE OF OVERPAYMENT WAS ISSUED UNTIL PAID. SUCH SUM SHALL BE
     5  COLLECTIBLE (1) IN THE MANNER PROVIDED IN SECTION 308.1 OR
     6  SECTION 309 OF THIS ACT, FOR THE COLLECTION OF PAST DUE
     7  CONTRIBUTIONS, OR (2) BY DEDUCTION FROM ANY FUTURE COMPENSATION
     8  PAYABLE TO THE CLAIMANT UNDER THIS ACT: PROVIDED, THAT INTEREST
     9  ASSESSED UNDER THIS SECTION CANNOT BE RECOUPED BY DEDUCTION FROM
    10  ANY FUTURE COMPENSATION PAYABLE TO THE CLAIMANT UNDER THIS ACT:
    11  PROVIDED FURTHER, THAT NO ADMINISTRATIVE OR LEGAL PROCEEDINGS
    12  FOR THE COLLECTION OF SUCH SUM SHALL BE INSTITUTED AFTER THE
    13  EXPIRATION OF SIX YEARS FOLLOWING THE END OF THE BENEFIT YEAR
    14  WITH RESPECT TO WHICH SUCH SUM WAS PAID.
    15     * * *
    16     SECTION 7.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    17         (1)  THE AMENDMENTS TO SECTION 404(D) SHALL TAKE EFFECT
    18     BEGINNING WITH THE FIRST COMPENSABLE WEEK THAT ENDS ON OR
    19     AFTER JANUARY 1, 1989.
    20         (2)  THE AMENDMENTS TO SECTIONS 301.2, 301.4, 301.5,
    21     301.7, 301.8 AND 404(E) SHALL TAKE EFFECT ON THE FIRST DAY OF
    22     JANUARY 1989.
    23         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
    24     IMMEDIATELY.
    25     SECTION 1.  SECTION 3(H) OF THE ACT OF JANUARY 17, 1968        <--
    26  (P.L.11, NO.5), KNOWN AS THE MINIMUM WAGE ACT OF 1968, IS
    27  AMENDED TO READ:
    28     SECTION 3.  DEFINITIONS.--AS USED IN THIS ACT:
    29     * * *
    30     (H)  "EMPLOYE" INCLUDES ANY INDIVIDUAL EMPLOYED BY AN
    19870S1222B2488                 - 20 -

     1  EMPLOYER. [BUT SHALL NOT INCLUDE ANY INDIVIDUAL TO THE EXTENT
     2  THAT HE IS SUBJECT TO THE FEDERAL FAIR LABOR STANDARDS ACT OF
     3  JUNE 25, 1938 (52 STAT. 1060), AS AMENDED, OR SUBJECT TO ANY
     4  OTHER FEDERAL MINIMUM WAGE AND HOUR LEGISLATION NOW IN EFFECT OR
     5  TO BE HEREINAFTER ENACTED INTO LAW: PROVIDED, THAT THIS
     6  LIMITATION SHALL NOT BE DEEMED TO EXCLUDE ANY INDIVIDUALS FROM
     7  ENTITLEMENT TO THE AMOUNT OF WEEKLY WAGES DUE THEM (WITH RESPECT
     8  TO REGULAR TIME PAY AND OVERTIME PAY WHERE APPLICABLE) UNDER ANY
     9  STATUTE OF THE COMMONWEALTH OF PENNSYLVANIA OR UNDER ANY VALID
    10  REGULATION OR ORDER ISSUED THEREUNDER IN EFFECT ON THE EFFECTIVE
    11  DATE OF THIS ACT.]
    12     * * *
    13     SECTION 2.  SECTION 4(A) OF THE ACT, AMENDED JULY 1, 1978
    14  (P.L.735, NO.135), IS AMENDED AND THE SECTION IS AMENDED BY
    15  ADDING A SUBSECTION TO READ:
    16     SECTION 4.  MINIMUM WAGES.--EXCEPT AS MAY OTHERWISE BE
    17  PROVIDED UNDER THIS ACT:
    18     (A)  EVERY EMPLOYER SHALL PAY TO EACH OF HIS EMPLOYES WAGES
    19  FOR ALL HOURS WORKED AT A RATE OF NOT LESS THAN:
    20     (1)  TWO DOLLARS SIXTY-FIVE CENTS ($2.65) AN HOUR UPON THE
    21  EFFECTIVE DATE OF THIS AMENDMENT.
    22     (2)  TWO DOLLARS NINETY CENTS ($2.90) AN HOUR DURING THE YEAR
    23  BEGINNING JANUARY 1, 1979.
    24     (3)  THREE DOLLARS TEN CENTS ($3.10) AN HOUR DURING THE YEAR
    25  BEGINNING JANUARY 1, 1980.
    26     (4)  THREE DOLLARS THIRTY-FIVE CENTS ($3.35) AN HOUR AFTER
    27  DECEMBER 31, 1980.
    28     (5)  THREE DOLLARS SEVENTY-FIVE CENTS ($3.75) AN HOUR DURING
    29  THE YEAR BEGINNING JANUARY 1, 1989.
    30     (6)  FOUR DOLLARS FIFTEEN CENTS ($4.15) AN HOUR DURING THE
    19870S1222B2488                 - 21 -

     1  YEAR BEGINNING JANUARY 1, 1990.
     2     (7)  FOUR DOLLARS FIFTY-FIVE CENTS ($4.55) AN HOUR DURING THE
     3  YEAR BEGINNING JANUARY 1, 1991.
     4     (A.1)  IF THE MINIMUM WAGE SET FORTH IN THE FAIR LABOR
     5  STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C. § 201 ET SEQ.),
     6  AS AMENDED, IS INCREASED ABOVE THREE DOLLARS THIRTY FIVE ($3.35)
     7  AN HOUR, THE MINIMUM WAGE REQUIRED UNDER THIS SECTION SHALL BE
     8  THE SAME AMOUNTS AND EFFECTIVE THE SAME DATE, AS THE INCREASES
     9  UNDER THE FAIR LABOR STANDARDS ACT AND THE PROVISIONS OF
    10  SUBSECTION (A) ARE SUSPENDED TO THE EXTENT THEY DIFFER FROM
    11  THOSE SET FORTH UNDER THE FAIR LABOR STANDARDS ACT.
    12     * * *
    13     SECTION 3.  SECTION 5(A)(8) OF THE ACT IS REPEALED.
    14     SECTION 4.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.











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