HOUSE AMENDED PRIOR PRINTER'S NOS. 1702, 1709, 1712, PRINTER'S NO. 2488 1737, 2283, 2371
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. K23L84JLW/19870S1222B2488 - 22 -