CHAPTER 32
AN ACT TO AMEND TITLE 19, DELAWARE CODE, RELATING TO UNEMPLOYMENT COMPENSATION, BY CHANGING CERTAIN OF THE PROVISIONS RELATING TO VARIABLE CONTRIBUTION RATES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Title 19, Section 3315 (1), Delaware Code, is amended to read as follows:
(1) For the period of unemployment next ensuing after he has left his work voluntarily without good cause attributable to such work. However, if an individual has left his work involuntarily because of illness, no disqualification shall prevail after he becomes able to work and available for work and meets all other requirements under this title, but the Commission shall require a doctor's certificate to establish such availability. Wage credits earned in such work, if employment under this title, shall not constitute benefit wages in connection with Sections 3349-3356 of this chapter.
Section 2. Title 19, Section 3315 (2), Delaware Code, is amended to read as follows:
(2) For the period of unemployment next ensuing after an individual has been discharged from his work for just cause in connection with his work. Wage credits earned in such work, if employment under this title, shall not constitute benefit wages in connection with Sections 3349-3356 of this chapter.
Section 3. Title 19, Section 3349, Delaware Code, is amended by striking out all of paragraph (c) thereof.
Section 4. Title 19, Section 3350 (4), Delaware Code, is amended to read as follows:
(4) For any calendar year, the "state experience factor" shall be the term used for the total benefits paid from the fund during the most recent three completed experience years, divided by the total of the benefit wages of all employers during the same three years. In such computation, any fraction shall be adjusted to the nearest multiple of 1%.
Section 5. Title 19, Section 3350 (5), Delaware Code, is amended by inserting the word "basic" before the words "contribution rate" wherever the same appear therein.
Section 6. Title 19, Section 3350 (6), Delaware Code, is amended to read as follows:
(6) No employer's basic contribution rate for the period of 12 months commencing January first of any calendar year shall be less than 2 7/10% unless all contributions due on wages paid for employment for such employer during pay periods ending on or prior to June 30 of the preceding year have been paid on or prior to September 30 of such preceding year. If such contributions due are paid after September 30 of the preceding year but prior to or on the last day of any calendar quarter of any calendar year, such employer's basic contribution rate for contributions on wages paid for employment for such employers during pay periods in the said calendar quarter, and for wages paid for employment for such employer during pay periods in all succeeding calendar quarters in such calendar year, shall be the basic contribution rate determined for such employer under the provisions of paragraph (5) of this section.
Section 7. Title 19, Section 3350, Delaware Code, is amended by adding thereto a new paragraph (9) reading as follows:
(9) Supplemental Contribution Rate (A) For the purpose of this section:
(i) The "solvency factor" shall be an amount equal to one-and-a-half times the ratio of benefit payments to total payrolls in covered employment in the four consecutive calendar quarter period, within the sixty consecutive calendar quarters ending on June 30 immediately preceding the computation date, in which the ratio of benefit payments to total payrolls in covered employment was highest.
(ii) The "safety balance" shall be an amount equal to the product of the solvency factor times total payrolls in covered employment in the four calendar quarter period ending on June 30 immediately preceding the computation date.
(B) For any year with respect to which the balance in the fund on the computation date therefor is less than the safety balance, each employer's standard or basic contribution rate, whichever shall be applicable to such employer, shall be increased by a "supplemental contribution rate."
The supplemental contribution rate shall be the percentage obtained by dividing the "solvency assessment," as defined below, by the sum of the taxable wages of all employers in the four calendar quarter period ending on June 30 immediately preceding the computation date. In such computation, any fraction shall be adjusted to the next higher multiple of one-tenth of one percent. In no case, however, shall the supplemental contribution rate exceed one and one-half percent.
The solvency assessment shall be determined as follows:
(i) For the three calendar quarters ending December 31, 1961, the solvency assessment shall be one-half the amount by which the balance in the fund on the computation date is less than the safety balance on June 30 immediately preceding such computation date.
(ii) For the calendar year 1962, the solvency assessment shall be one-half the amount by which the sum of the balances in the fund on the computation date and the preceding computation date is less than the sum of the safety balances on June 30 immediately preceding each such computation date.
() For the calendar year 1963, and for each calendar year thereafter, the solvency assessment shall be one-third of the amount by which the sum of the balances in the fund on the computation date and the two consecutive computation dates immediately preceding are less than the sum of the safety balances on June 30 immediately preceding each such computation date.
Approved April 25, 1961.