Marvin Mandel, Governor                         373

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1972.

Approved April 26, 1972.

CHAPTER 115

(Senate Bill 792)

AN ACT to repeal and re-enact, with amendments, Section 8 (c) of
Article 95A of the Annotated Code of Maryland (1969 Replace-
ment Volume and 1971 Supplement), title "Unemployment Insur-
ance Law," subtitle "Contributions;" to provide that unemploy-
ment insurance benefits paid on the basis of wages earned in
"work release" program shall not be charged to any employer.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 8 (c) of Article 95A of the Annotated Code of Mary-
land (1969 Replacement Volume and 1971 Supplement), title "Unem-
ployment Insurance Law," subtitle "Contributions," be and it is
hereby repealed and re-enacted, with amendments, to read as follows:

8. Payment; rate; records; merit rating; payments in lieu of
contributions.

(c) Experience rating.—Each employer shall pay contributions
with respect to employment during any fiscal year prior to July 1,
1964, as required by this article prior to July 1, 1964, and each
employer shall pay contributions at the standard rate of two and
seven-tenths (2.7) percent of wages paid by him during the fiscal
year beginning July 1, 1964, and during each fiscal year thereafter
with respect to employment occurring after June 30, 1964, except
as otherwise provided herein.

(1)   For taxable periods beginning on and after January 1, 1972,
each employer who has not been subject to this article for a sufficient
period of time to have his rate computed under the provisions hereof
shall pay contributions at a rate not exceeding 2.7 percent, that is
the higher of (a) 1.0 percent, or (b) the State's five-year benefit
cost rate. For purposes of this paragraph, the State's five-year
benefit cost rate shall be computed annually and shall be derived by
dividing the total dollar amount of regular benefits and one half of
any extended benefits paid to claimants under this article during the
five consecutive calendar years immediately preceding the computa-
tion date by the total dollar amount of wages subject to contributions
under this article during the same period.

(2)  The Executive Director shall maintain an experience-rating
record for each employer. Nothing in this article shall be construed
to grant to any employer or to individuals performing services for
him prior claims or rights to the amounts paid by the employer into
the fund.

Except as required by paragraph (1) of this subsection, benefits
paid shall be charged against employer experience-rating records as
hereafter specified.