H.P. 1604 - L.D. 2230
An Act to Implement the Majority Report Recommendations of the Commission to Study the Unemployment Compensation System
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 26 MRSA §1191, sub-§2, as amended by PL 1997, c. 380, §1, is further amended to read:
2. Weekly benefit amount for total unemployment. Each eligible individual establishing a benefit year on or after October 1, 1983 who is totally unemployed in any week must be paid with respect to that week benefits equal to 1/22 of the wages, rounded to the nearest lower full dollar amount, paid to that individual in the high quarter of the base period, but not less than $12. The maximum weekly benefit amount for claimants requesting insured status determination beginning October 1, 1983 and thereafter from June 1st of a calendar year to May 31st of the next calendar year may not exceed 52% of the annual average weekly wage, rounded to the nearest lower full dollar amount, paid in the calendar year preceding June 1st of that calendar year. No increase in the maximum weekly benefit amount may occur for the period from June 1, 1992 to October 28, 1995. For the periods from October 29, 1995 to May 31, 1997 and from September 28, 1997 to September 26, 1998 December 31, 1999, the maximum weekly benefit amount is limited to 94% of the amount calculated previously in this subsection, rounded to the nearest lower full dollar amount. For claimants requesting insured status determination on or after April 1, 1993 and before January 1, 1995, the weekly benefit amount must be the amount determined by this subsection minus $6. For claimants requesting insured status determination on or after April 1, 1995 and before January 1, 1999 2000, the weekly benefit amount must be the amount determined by this subsection minus $3.
Sec. 2. 26 MRSA §1221, sub-§2, ¶C, as amended by PL 1997, c. 380, §2, is further amended to read:
C. Each employer subject to this chapter, other than those liable for payments in lieu of contributions, shall pay, in addition to the contribution rate as prescribed in subsection 4, 7/10 of 1% of the wages paid by the employer with respect to employment during the calendar year 1993, 8/10 of 1% of the wages paid by the employer with respect to employment during the calendar year 1994 and 4/10 of 1% of the wages paid by the employer with respect to employment during calendar years 1995, 1996, 1997, 1998 and 1998 1999.
Sec. 3. 26 MRSA §1221, sub-§4, ¶C, as amended by PL 1997, c. 380, §3, is further amended to read:
C. To designate the contribution rate schedule to be effective for a rate year, a reserve multiple must be determined. The reserve multiple must be determined by dividing the fund reserve ratio by the composite cost rate. The determination date is September 30th of each calendar year, and the schedule of contribution rates to apply for the 12-month period commencing January 1st, is determined by this reserve multiple, except that for the 1998 and 1999 rate year years Schedule P is in effect.
Sec. 4. Solvency plan and recommendations. The Department of Labor, within existing resources, shall report to the First Regular Session of the 119th Legislature by January 1, 1999. The report must include the recommendations of the department for ensuring the long-term solvency of the Unemployment Compensation Fund, referred to in this section as the solvency plan. The department shall develop a solvency plan that provides for reserves adequate to fund benefits consistent with the historical analysis and future projections necessary to provide long-term solvency to the Unemployment Compensation Fund. The department also shall submit proposed legislation that effects the requirements of this section.
In developing the solvency plan and proposed legislation, the department shall consider the following:
1. Tax structures that provide equity among payors, including, but not limited to, the array system;
2. Adjustments to the taxable wage base;
3. A recommended solvency reserve target amount;
4. A schedule within which the solvency plan will be achieved;
5. Other revenue sources that may be used to assist in achieving the solvency plan;
6. Benefit structures consistent with the purpose of the unemployment insurance program for replacement of lost wages; and
7. The administration of the Unemployment Compensation Fund to ensure fiduciary responsibility.
In addition to the solvency plan and proposed legislation, the department shall include a detailed report demonstrating the basis upon which the department performed its evaluation. The detailed report must include the projected impacts of the solvency plan, both during the life of the solvency plan and after the solvency plan is complete.
Sec. 5. Allocation. The following funds are allocated from Other Special Revenue to carry out the purposes of this Act.
1998-99
BAXTER STATE PARK AUTHORITY
Baxter State Park Authority
Personal Services $2,079
Provides funds for additional unemployment compensation costs.
Effective July 9, 1998, unless otherwise indicated.
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