An Act to Establish a Method of Determining Employer Contributions to the Unemployment Compensation Trust Fund
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 26 MRSA §1190 is enacted to read:
§1190. Study of benefit changes
1. Referral for review and evaluation. Whenever a legislative measure containing an unemployment compensation benefit change is proposed, the bureau shall complete a review and evaluation pursuant to subsection 2 in advance of the public hearing on the proposed measure. Once a review and evaluation has been completed, the joint standing committee of the Legislature having jurisdiction over the proposal shall review the findings of the bureau. A proposed benefit change may not be enacted into law unless review and evaluation pursuant to subsection 2 has been completed. For purposes of this section, a "benefit change" means any change in law that will cause a change in the number of people eligible as well as any increase or decrease in the dollar amount, maximum amount or duration of benefits payable.
2. Content of review. The review and evaluation must include, at a minimum and to the extent information is available, the following:
A. Total change in cost to the unemployment compensation trust fund;
B. Future impact on the planned yield adjustment and the experience rating records of employers, sorted by size and industry;
C. Review of the impact of a proposed benefit change on recipient groups, including an analysis by gender, income levels and geographic distribution; and
D. Any other information that the bureau considers appropriate to assist the Legislature in deciding on the proposed benefit change.
Sec. 2. 26 MRSA §1221, sub-§4-A, ¶B, as enacted by PL 1999, c. 464, §9, is amended by repealing and replacing subparagraph (3) to read:
(3) The commissioner shall compute a reserve multiple to determine the schedule and planned yield in effect for a rate year. The reserve multiple is determined by di-viding the fund reserve ratio by the average benefit cost rate. The determination date is October 31st of each calendar year. The schedule and planned yield that apply for the 12-month period commencing every January 1st are shown on the line of the following table that corresponds with the applicable reserve multiple in column A, except that a planned yield of 1.1% must be in effect for the 12-month period commencing January 1, 2000.
A Reserve Multiple |
B Schedule |
C Planned Yield |
Over 1.83 |
A |
0.6% |
1.75 - 1.83 |
B |
0.7% |
1.68 - 1.74 |
C |
0.8% |
1.58 - 1.67 |
D |
0.9% |
1.50 - 1.57 |
E |
1.0% |
.50 - 1.49 |
F |
1.1% |
.25 - .49 |
G |
1.2% |
Under .25 |
H |
1.3% |
Effective August 11, 2000, unless otherwise indicated.
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