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HOUSE AMENDED
PRIOR PRINTER'S NOS. 541, 615
PRINTER'S NO. 630
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
250
Session of
2017
INTRODUCED BY WARD, BROWNE, EICHELBERGER, STEFANO, VOGEL,
BROOKS, KILLION, VULAKOVICH, SCAVELLO, YAW, RAFFERTY,
TOMLINSON AND McILHINNEY, MARCH 20, 2017
AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 3, 2017
AN ACT
Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), entitled "An act establishing a system of
unemployment compensation to be administered by the
Department of Labor and Industry and its existing and newly
created agencies with personnel (with certain exceptions)
selected on a civil service basis; requiring employers to
keep records and make reports, and certain employers to pay
contributions based on payrolls to provide moneys for the
payment of compensation to certain unemployed persons;
providing procedure and administrative details for the
determination, payment and collection of such contributions
and the payment of such compensation; providing for
cooperation with the Federal Government and its agencies;
creating certain special funds in the custody of the State
Treasurer; and prescribing penalties," in administration of
act, providing for unemployment compensation call SERVICE
centers; and, in contributions by employers and employees,
further providing for contributions by employees and for
Service and Infrastructure Improvement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), known as the Unemployment Compensation Law, is
amended by adding a section to read:
Section 202.1. Unemployment Compensation Call SERVICE Centers.
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Before closing an unemployment compensation call SERVICE
center, the department shall submit a report to the chairperson
and minority chairperson of the Labor and Industry Committee of
the Senate and the chairperson and minority chairperson of the
Labor and Industry Committee of the House of Representatives.
The report shall include the performance data and operating
costs of the unemployment compensation call SERVICE center as
compared to other unemployment compensation call SERVICE centers
in this Commonwealth.
Section 2. Sections 301.4(e)(2) and 301.9 of the act are
amended to read:
SECTION 2. SECTION 301.4(E)(2) OF THE ACT IS AMENDED AND THE
SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
Section 301.4. Contributions by Employes.--* * *
(e) Contributions paid under this section shall be allocated
by the department among the Unemployment Compensation Fund, the
Reemployment Fund and the Service and Infrastructure Improvement
Fund as follows:
* * *
(2) During each calendar year from 2013 through [2016] 2017,
an amount determined by the secretary with the approval of the
Governor shall be deposited into the Service and Infrastructure
Improvement Fund. For calendar year 2013, the amount determined
under this clause may not exceed forty million dollars
($40,000,000). For calendar year 2014, the amount determined
under this clause may not exceed thirty million dollars
($30,000,000). For calendar years 2015 and 2016, the amount
determined under this clause for each calendar year may not
exceed one hundred ninety million dollars ($190,000,000)
adjusted by the increase in the Bureau of Labor Statistics
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Consumer Price Index for the period from May 2013 through
January of the calendar year less the amount of Federal
administrative funding for the preceding Federal fiscal year.
For calendar year 2017, the amount determined under this clause
may not exceed fifteen million dollars ($15,000,000) and shall
be allocated for the purposes specified under section 301.9(c)
(1) and (3) .
* * *
(F) DURING CALENDAR YEAR 2017, THE FOLLOWING SHALL APPLY TO
FUNDING TRANSFERRED TO THE SERVICE AND INFRASTRUCTURE
IMPROVEMENT FUND AND RELATED MATTERS REGARDING THE FUND:
(1) THE DEPARTMENT SHALL TEMPORARILY IMPROVE THE OPERATIONS
OF THE UNEMPLOYMENT COMPENSATION SYSTEM PENDING THE GENERAL
ASSEMBLY'S REVIEW OF THE INFORMATION REQUIRED BY SECTION
301.9(H) AND (I) AND A SPECIAL PERFORMANCE AUDIT CONDUCTED BY
THE AUDITOR GENERAL. FUNDING UNDER THIS CLAUSE SHALL BE
ALLOCATED AS FOLLOWS:
(I) TEN MILLION EIGHT HUNDRED THOUSAND DOLLARS ($10,800,000)
SHALL BE ALLOCATED FOR PERSONNEL COSTS RELATED TO CLAIMS
PROCESSING AND SERVICE TO CLAIMANTS.
(II) TWO MILLION THREE HUNDRED THOUSAND DOLLARS ($2,300,000)
SHALL BE ALLOCATED FOR PERSONNEL COSTS RELATED TO TAX SERVICES.
(III) ONE MILLION FOUR HUNDRED THOUSAND DOLLARS ($1,400,000)
SHALL BE ALLOCATED FOR PERSONNEL COSTS RELATED TO APPEALS UNDER
ARTICLE V.
(IV) FIVE HUNDRED THOUSAND DOLLARS ($500,000) MAY BE
ALLOCATED FOR THE PURPOSES AUTHORIZED UNDER SUBCLAUSES (I), (II)
AND (III) OR FOR PERSONNEL COSTS RELATED TO PROGRAM INTEGRITY
AND THE DETECTION AND PREVENTION OF OVERPAYMENTS TO CLAIMANTS.
(2) FUNDING SHALL BE EXPENDED IN A MANNER THAT WILL RESULT
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IN THE OPERATIONS OF THE UNEMPLOYMENT COMPENSATION SYSTEM
REMAINING AT CONSISTENT LEVELS FOR AT LEAST NINE (9) CALENDAR
MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS CLAUSE.
(3) THE DEPARTMENT SHALL MAINTAIN A SEPARATE ACCOUNTING FOR
THE SERVICE AND INFRASTRUCTURE IMPROVEMENT FUND. THE SECRETARY
SHALL PROVIDE A REPORT TO THE CHAIR OF THE LABOR AND INDUSTRY
COMMITTEE OF THE SENATE AND THE CHAIR OF THE LABOR AND INDUSTRY
COMMITTEE OF THE HOUSE OF REPRESENTATIVES BEFORE THE FIFTEENTH
DAY OF EACH MONTH DURING THE PERIOD SPECIFIED IN CLAUSE (2). THE
REPORT SHALL INCLUDE ALL OF THE FOLLOWING:
(I) AN ACCOUNTING OF THE SERVICE AND INFRASTRUCTURE
IMPROVEMENT FUND FOR THE PRIOR CALENDAR MONTH.
(II) AN UPDATE ON OPERATIONS OF THE UNEMPLOYMENT
COMPENSATION SYSTEM.
(III) AN ACCOUNTING OF TOTAL FUNDS SPENT ON THE
ADMINISTRATION OF THE UNEMPLOYMENT COMPENSATION SYSTEM FOR THE
PRIOR CALENDAR MONTH.
(IV) AN UPDATE ON THE PROGRESS OF THE PROCUREMENT OF
TECHNOLOGICAL UPGRADES TO THE DELIVERY SYSTEM FOR UNEMPLOYMENT
COMPENSATION BENEFITS.
SECTION 3. SECTION 301.9 OF THE ACT IS AMENDED TO READ:
Section 301.9. Service and Infrastructure Improvement
Fund.--(a) There is established a restricted account in the
State Treasury to be known as the Service and Infrastructure
Improvement Fund.
(b) Moneys in the Service and Infrastructure Improvement
Fund shall consist of contributions deposited into the fund
pursuant to section 301.4(e)(2).
(c) Moneys in the Service and Infrastructure Improvement
Fund are appropriated on a continuing basis, upon approval of
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the Governor, to the department to be prioritized for the
following purposes:
(1) To improve the quality, efficiency and timeliness of
services provided by the service center system to individuals
claiming compensation under this act, including claim filing,
claim administration, adjudication services and staffing and
training of system employes.
(2) Expenditures for information management technology,
communications technology and other infrastructure components,
including technological upgrades to the delivery system for
unemployment compensation benefits, that the secretary
determines are likely to result in significant and lasting
improvements to the unemployment compensation system.
(3) To pay the costs of collecting the contributions
deposited into the Service and Infrastructure Improvement Fund
pursuant to section 301.4(e)(2).
(d) Consistent with the merit staffing requirement of
section 303(a)(1) of the Social Security Act (49 Stat. 620, 42
U.S.C. ยง 503(a)(1)), no moneys in the Service and Infrastructure
Improvement Fund may be expended or obligated to a third party
to perform unemployment compensation services of the department,
except services relating to technology and infrastructure
components deemed necessary by the secretary under subsection
(c)(2).
(e) Any moneys in the Service and Infrastructure Improvement
Fund that are not expended or obligated as of December 31,
[2018] 2019, shall be transferred to the Unemployment
Compensation Fund under section 601.
(f) Moneys in the Service and Infrastructure Improvement
Fund shall not lapse at any time nor be transferred to any other
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fund except as provided in subsection (e).
(g) No later than June 30 of each calendar year from 2014
through [2019] 2020, the department shall provide a report to
the Governor and the General Assembly, through the Secretary-
Parliamentarian of the Senate and the Chief Clerk of the House
of Representatives, regarding the Service and Infrastructure
Improvement Fund, which report shall include an accounting for
the contributions deposited into the fund, the expenditures and
transfers from the fund during the prior year and a description
of the purposes for which expenditures from the fund were made
in the prior year.
(h) No later than June 15, 2017, the department shall submit
a report to the chairperson and minority chairperson of the
Labor and Industry Committee of the Senate and the chairperson
and minority chairperson of the Labor and Industry Committee of
the House of Representatives. The report shall describe the
department's plan to eliminate the department's reliance on
moneys transferred into the Service and Infrastructure
Improvement Fund for recurring operational costs. The General
Assembly shall consider the information contained in the report
when reviewing a supplemental funding request by the department
FOR CALENDAR YEARS BEGINNING AFTER 2017 .
(i) A IT IS THE INTENTION OF THE GENERAL ASSEMBLY TO
SEPARATELY REVIEW A supplemental funding request by the
department for technological upgrades to the delivery system for
unemployment compensation benefits . for calendar years beginning
after 2017 THE REQUEST SHALL BE SUBMITTED WITH THE REPORT
REQUIRED BY SUBSECTION (H) AND shall include all of the
following:
(1) A detailed description of the technological upgrades to
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the delivery system for unemployment compensation benefits.
(2) An explanation of the improvements to the unemployment
compensation benefits delivery system that will result from the
technological upgrades.
(3) The total estimated cost of the technological upgrades
to the delivery system for unemployment compensation benefits,
including the total estimated cost each year and any additional
funding sources that can be used for the project.
(4) T he total estimated cost savings that will result from
the t echnological upgrades to the delivery system for
unemployment compensation benefits.
(5) The time period, as specified in years, that will be
necessary for the department to complete the technological
upgrades to the delivery system for unemployment compensation
benefits .
(6) Information on a proposal received or contract executed
for technological upgrades to the delivery system for
unemployment compensation benefits if publicly accessible under
the act of February 14, 2008 (P.L.6, No.3), known as the Right-
to-Know Law.
(7) A detailed description of how the technological upgrades
to the delivery system for unemployment compensation benefits
will impact any related recommendations in a special performance
audit conducted by the Auditor General.
Section 3 4. This act shall take effect immediately.
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