It is enacted by the General Assembly as follows:

SECTION 1. Sections 28-43-2 and 28-43-3 of the General Laws in Chapter 28-43 entitled "Employment Security -- Contributions" are hereby amended to read as follows:

28-43-2. Balancing account -- Credits and charges. -- Subsequent to the establishment of the balancing account as set forth in section 28-43-1(1), the credits and charges to that account shall be determined by the director as follows:

(1) Credits to the balancing account:

(i) All interest earnings received by the fund;

(ii) All transfers to the credit of the account of this state in the unemployment trust fund under 42 U.S.C. section 903(a);

(iii) Any plus balance remaining to the credit of an employer's account after he or she has ceased to be subject to chapters 42 -- 44, of this title; and

(iv) The entire amount credited to the balancing account under section 28-43-9 relating to the balancing rate;

(v) An amount equal to the amount of any restitution by an employee of benefits, whether that restitution is in cash or in the form of offset against benefits otherwise due, when that restitution is made;

(vi) Any deposits made by employers in connection with an appeal under section 28-44-39, which are not returnable;

(vii) The amount reimbursed or advanced to this state as the federal share of extended benefits paid to individuals under the provisions of section 28-44-62; and

(viii) The amount reimbursed to this state in accordance with the provisions of section 121 of United States P.L. 94-566.

(2) Charges to the balancing account;

(i) Any minus balance of an employer's account after he or she has ceased to be subject to this title, together with an amount equal to benefits thereafter paid based on wages reported by that employer;

(ii) Any disbursements from the fund which are not chargeable to employer accounts;

(iii) Any benefit payments paid to a claimant and charged to an employer's account after a hearing in which the employer appeared and contested the award which is thereafter finally disallowed on appeal, which the charges to the employer's account shall be cancelled;

(iv) Any benefit payments based on determinations by the administrative agencies of other states;

(v) Dependent's allowances not otherwise chargeable to an employer's account paid under section 28-44-6 for benefit years beginning subsequent to September 30, 1985.

(vi) Benefits not chargeable to any individual employer's account;

(vii) Any benefit payments paid to an individual who has left his or her employment for reasons which have been determined not to have been connected with the employment; provided, however, that such benefits paid to an individual who leaves work pursuant to a retirement plan, system, or program in accordance with the provisions of section 28-44-17 of this title shall be charged in accordance with the provisions of section 28-43-3(2)(ii);

(viii) Any benefits paid for benefit years beginning subsequent to September 30, 1985 to an individual in accordance with the provisions of section 28-44-62 and not otherwise chargeable to an employer's account.

(ix) Any benefits paid to an individual in accordance with the provisions of section 28-44-3.1 to the extent that the employment security fund is reimbursed for the benefits pursuant to section 121 of United States P.L. 94-566;

(x) The foregoing charges to the balancing account shall be limited to benefits paid based on service with an employer required to pay contributions under the provisions of chapters 42 -- 44, of this title.

{ADD (xi) Any benefits paid for benefit years beginning subsequent to July 7, 1996 to an individual employed as a result of physical damage to the real property at the employer's usual place of business caused by severe weather conditions, including, but not limited to, hurricanes, snowstorms, ice storms or flooding, or fire except where caused by the employer. ADD}

28-43-3. Employer's accounts -- Credits and charges. -- Subsequent to the establishment of a separate employer's account for each employer subject to chapters 42, 43, and 44 of this title, as set forth in section 28-43-1(4), the credits and charges to each employer's account, exclusive of the state of Rhode Island, its political subdivisions, and their instrumentalities, shall be determined as follows:

(1) Credits to each employer's account:

(i) After the September 30, 1958 computation date all contributions required under section 28-43-8 and paid by each employer.

(ii) All surcharges required and paid under section 28-43-4.

(2) Charges to each employer's account:

(i) Refunds of overpayments under section 28-43-13, as of the date refunded;

(ii) For benefit years beginning subsequent to September 30, 1993, an amount equal to the benefits provided in sections 28-44-6(a) and (b), 28-44-7, and 28-44-8, and paid to each individual with respect to a benefit year, as of the date paid. Those benefits shall be charged to the account of the most recent base period employer, as defined in section 28-43-1(7); provided, however, that if a claimant works for two or more employers concurrently, either full-time or part-time, and becomes unemployed on the same day from more than one employer, any benefits paid as a result of the unemployment shall be charged to the employers' accounts proportionately based upon the ratio of base period wages paid by each employer to the total base period wages paid by the concurrent employers from whom the claimant became separated from employment. Provided, however, that no charge for benefits paid under section 28-44-7 shall be made against the account of any employer who shows to the satisfaction of the director that he or she has continued to employ the individual during the weeks of his or her claim to the same extent that he or she had employed him or her during that individual's base period, and those benefits, if not chargeable to the most recent base period employer, shall be charged to the balancing account.

(iii) If any base period employer whether or not he or she was the most recent shows to the satisfaction of the director that the individual who is in receipt of benefits became separated from his or her last employment with that employer for reasons which did result or would have resulted in a disqualification under sections 28-44-17 or 28-44-18 had that base period employer been his or her most recent, those benefits shall be charged to the balancing account.

(iv) The entire amount charged to the employer's account under section 28-43-9 relating to the balancing rate.

(v) Whenever the provisions in this section specify that an employer's account shall not be charged, that noncharging shall be limited to benefits paid based on service with an employer required to pay contributions under the provisions of chapters 42 -- 44, of this title.

(vi) An amount equal to the benefits provided in section 28-44-62 and paid to each individual with respect to a benefit year as of the date paid minus the proportionate share of those benefits for which the state has been or will be reimbursed by the federal government. The federal share of any payments shall be charged to the balancing account and federal reimbursements shall be credited to the balancing account.

{ADD (vii) Whenever any benefits are paid for benefit years beginning subsequent to July 7, 1996 to an individual unemployed as a result of physical damage to the real property at the employer's usual place of business caused by severe weather conditions, including, but not limited to, hurricanes, snowstorms, ice storms or flooding, or fire except where caused by the employer, those benefits shall be charged to the balancing account. ADD}

SECTION 2. This act shall take effect upon passage.