20120060ua

Session of 2012

No. 2012-60

 

SB 1310

 

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," further providing for definitions, for determination of contribution rate and experience rating and for contributions by employees; providing for additional contribution for debt service; further providing for trigger determination, for trigger rate redeterminations, for reports by employers and assessments, for contributions to be liens and entry and enforcement thereof, for collection of contributions and interest and injunctions, for dishonored checks, for qualifications required to secure compensation, for rate and amount of compensation and for Unemployment Compensation Fund; providing for Debt Service Fund and for Reemployment Fund; further providing for State Treasurer as custodian and for recovery and recoupment of compensation; providing for unemployment compensation bonds and for unemployment compensation amnesty program; and making a related repeal.

 

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

 

20120060u1s

Section 1.  Section 4(f), (m.3), (w) and (x) introductory paragraph and (1) of the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law, amended May 23, 1949 (P.L.1738, No.530), September 27, 1971 (P.L.460, No.108), December 5, 1974 (P.L.771, No.262), July 6, 1977 (P.L.41, No.22) and July 21, 1983 (P.L.68, No.30), are amended to read:

Section 4.  Definitions.--The following words and phrases, as used in this act, shall have the following meanings, unless the context clearly requires otherwise.

* * *

(f)  "Compensation" means:

(1)  money payments payable to individuals with respect to their unemployment as provided in this act[.]; and

(2)  to the extent permitted by law, that part of the principal owed on bonds issued under Article XIV of this act that is attributable to repayment of the principal of advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.), exclusive of any interest or administrative costs associated with the bonds.

* * *

(m.3)  "Partial Benefit Credit" means that part of the remuneration, if any paid or payable to an individual with respect to a week for which benefits are claimed under the provisions of this act, which is not in excess of [forty] thirty per centum [(40%)] (30%) of the individual's weekly benefit rate or six dollars whichever is the greater. Such partial benefit credit if not a multiple of one dollar ($1) shall be computed to the next higher multiple of one dollar ($1).

* * *

(w)  (1)  A "Valid Application for Benefits" means an application for benefits on a form prescribed by the department, which is filed by an individual, as of a day not included in the benefit year previously established by such individual, who (1) has been separated from his work or who during the week commencing on the Sunday previous to such day has worked less than his full time due to lack of work and (2) is qualified under the provisions of section four hundred and one (a), (b) and (d).

(2)  An application for benefits filed after the termination of a preceding benefit year by an individual shall not be considered a Valid Application for Benefits within the meaning of this subsection, unless such individual has, subsequent to the beginning of such preceding benefit year and prior to the filing of such application, worked and earned wages[, whether or not such work is] in "employment" as defined in this act in an amount equal to or in excess of six (6) times his weekly benefit rate in effect during such preceding benefit year.

(x)  "Wages" means all remuneration, (including the cash value of mediums of payment other than cash, except that only cash wages shall be used to determine the coverage of agricultural labor as defined in section 4(l)(3)(G) and domestic service as defined in section 4(l)(3)(H)), paid by an employer to an individual with respect to his employment except that the term "wages" [for the purpose of paying contributions] shall not include:

(1)  [That] For purposes of paying employer contributions, that part of the remuneration [which is in excess of the first seven thousand dollars ($7,000) during calendar year 1983 and eight thousand dollars ($8,000) during calendar year 1984 and thereafter] paid to an individual by each of his employers during a calendar year that exceeds eight thousand five hundred dollars ($8,500) for calendar year 2013, eight thousand seven hundred fifty dollars ($8,750) for calendar year 2014, nine thousand dollars ($9,000) for calendar year 2015, nine thousand five hundred dollars ($9,500) for calendar year 2016, nine thousand seven hundred fifty dollars ($9,750) for calendar year 2017 and ten thousand dollars ($10,000) for calendar year 2018 and thereafter: Provided, That an employer may take credit under this subsection for remuneration which his predecessor-in-interest has paid to an individual during the same calendar year with respect to employment; and provided also, that an employer may take credit under this subsection for remuneration which he or his predecessor-in-interest has paid to an individual in the same calendar year on which contributions have been required and paid by such employer under an unemployment compensation law of another state, but no such credit may be taken for remuneration which has been paid by another employer to such individual, whether or not contributions have been paid thereon by such other employer under this act or under any state unemployment compensation law.

* * *

20120060u2s

Section 2.  Section 301.1(e) of the act, amended July 21, 1983 (P.L.68, No.30), is amended to read:

Section 301.1.  Determination of Contribution Rate; Experience Rating.--

* * *

(e)  [The] (1)  Except as provided in paragraph (2), the State Adjustment Factor for [the] a calendar year [beginning January 1, 1984, shall be one and five-tenths per centum (1.5%) and thereafter] shall be computed as of the computation date for such year to a tenth of a per centum, rounding all fractional parts of a tenth of a per centum to the nearest tenth of a per centum, but in no event less than zero [nor in excess of one and five-tenths per centum (1.5%)], according to the following formula:

Bdr - Dcr

-----------------------  X 100 = State Adjustment Factor

Wt

in which factor "Bdr" equals the aggregate of (1) all benefits paid but not charged to employers' accounts, plus, (2) all benefits paid and charged to inactive and terminated employers' accounts, plus, (3) all benefits paid and charged to accounts of active employers for the preceding year to the extent such benefits exceed the combined amount of contributions payable by such employers on the basis of the Benefit Ratio Factor and the Reserve Ratio Factor. Factor "Dcr" equals the aggregate of (1) interest credited to the Unemployment Compensation Fund, plus, (2) amounts transferred from the Special Administration Fund and the [Interest] Debt Service Fund to the Unemployment Compensation Fund, plus, (3) refunds of benefits unlawfully paid, plus, (4) amounts credited to the Unemployment Compensation Fund by the Federal Government other than by loan, except that any amount credited to this Commonwealth's account under section 903 of the Federal Social Security Act which has been appropriated for expenses of administration shall be excluded from the amount in the Unemployment Compensation Fund in the computation of the "Dcr" factor. Factor "Wt" equals all wages subject to the law up to the limitation described in section 4(x)(1) paid by all employers. Each item in each factor shall be computed with respect to the twelve-month period ending on the computation date: Provided, That should the computed State Adjustment Factor for [calendar year 1984, and] any year [thereafter] exceed [one and five-tenths per centum (1.5%)] the maximum rate allowed under this section, such excess over [one and five-tenths per centum (1.5%)] the maximum rate shall be added to the computed State Adjustment Factor for the following year or years.

(2)  The maximum State Adjustment Factor shall be one per centum (1.0%) for calendar years 2013 through 2016, eighty-five one-hundredths of one per centum (.85%) for calendar year 2017 and seventy-five one-hundredths of one per centum (.75%) for calendar year 2018 and thereafter.

* * *

20120060u3s

Section 3.  Section 301.4 of the act, amended October 19, 1988 (P.L.818, No.109), is amended to read:

Section 301.4.  Contributions by Employes.--(a)  Notwithstanding any other provision of this act, each employe shall [contribute to the Unemployment Compensation Fund] pay contributions at a rate of zero per centum (0.0%) for calendar year 1989 and at a rate as set forth in section 301.7 for each calendar year thereafter of all wages paid for "employment" as defined by the act without regard to the limitation specified in section 4(x)(1) of this act.

(b)  Each employer subject to this act shall be responsible for withholding and shall withhold, in trust, such contributions from the wages of his employes at the time such wages are paid, and shall report and transmit such deductions to the department for deposit into the Unemployment Compensation Fund and the Reemployment Fund pursuant to the allocation prescribed in subsection (e), in accordance with rules and procedures established by the department.

(c)  Any employer who is an individual, or any officer or agent of any employer, who violates the trust provision of this section, fails to withhold, hold in trust or fails to transmit to the department all contributions withheld from the wages of his employes in accordance with the rules and procedure established by the department shall be subject to the provisions of clause (2) of subsection (a) of section 301 and sections 308, 308.1, 308.2, 308.3 and 309 of this act.

(d)  This section shall not be deemed to affect or impair the operation of any State statute or ordinance or resolution of a political subdivision which levies or collects any wage tax or similar tax. Contributions made pursuant to this section are not intended to reduce or otherwise affect any tax on wages or similar tax.

(e)  Contributions paid under this section shall be allocated by the department between the Unemployment Compensation Fund and the Reemployment Fund as follows:

(1)  Ninety-five per centum (95%) of the contributions on wages paid from January 1, 2013, through September 30, 2017, shall be deposited into the Unemployment Compensation Fund and five per centum (5%) of such contributions shall be deposited into the Reemployment Fund to the extent the contributions are paid on or before December 31, 2017.

(2)  One hundred per centum (100%) of the contributions on wages paid from January 1, 2013, through September 30, 2017, shall be deposited into the Unemployment Compensation Fund to the extent the contributions are paid on or after January 1, 2018.

(3)  One hundred per centum (100%) of the contributions on wages paid on or after October 1, 2017, shall be deposited into the Unemployment Compensation Fund.

20120060u4s

Section 4.  Section 301.6 of the act, amended July 1, 1985 (P.L.96, No.30), is amended to read:

Section 301.6.  Additional Contribution for Interest and Debt Service.--(a)  Notwithstanding any other provision of this act, all employers required to pay contributions under section 301 or 301.1 other than those employers covered by paragraphs (3) and (4) of subsection (a) of section 301 shall have their rate of contribution increased by the rate of the Interest Factor in effect for the applicable calendar year.

(b)  All taxes collected under this section shall be considered to be separate and apart from any contributions required to be deposited in the Unemployment Compensation Fund. All taxes collected under this section shall be deposited in the [Interest] Debt Service Fund established by section 601.2 of this act. Such taxes will not be credited to the employer's reserve account.

(c)  (1)  [The Interest Factor calculated on wages with regard to the limitations specified in section 4(x)(1) shall be equal to twenty-five hundredths of one per centum (0.25%) for calendar year 1984, five-tenths of one per centum (0.5%) for calendar year 1985, and three-tenths of one per centum (0.3%) for calendar year 1986. Thereafter the] The Interest Factor shall be a variable rate not to exceed [one per centum (1.0%)] the maximum rate allowed under paragraph (2) to be determined annually by the department [at a rate necessary to pay the interest on outstanding interest-bearing advances under Title XII of the Social Security Act for the following calendar year.] in consultation with the Office of the Budget. The rate of the Interest Factor for a calendar year shall be the rate necessary to do the following in that year:

(i)  pay the bond obligations and bond administrative expenses under Article XIV of this act that are due in that year;

(ii)  replenish amounts which have been drawn from bond reserves under Article XIV of this act;

(iii)  maintain an adequate debt service coverage ratio;

(iv)  fund early, optional, mandatory or other refundings, redemptions or purchases of outstanding bonds under Article XIV of this act that will occur in that year;

(v)  pay the interest on interest-bearing advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) that is due in that year; and

(vi)  repay outstanding advances under Title XII of the Social Security Act.

(2)  For calendar year 2013 through the year determined under section 301.8(b)(4), the maximum Interest Factor rate shall be one and one-tenth per centum (1.1%). For calendar years following the year determined under section 301.8(b)(4), the maximum Interest Factor rate shall be one per centum (1.0%).

(d)  Contributions paid by or on behalf of an employer under this act, other than employe contributions under section 301.4, shall be allocated first to the employer's liability under this section. This subsection shall apply to contributions for any calendar quarter that ends at a time when bonds issued under Article XIV are outstanding.

(e)  In the event the amount of additional contributions collected under this section for a calendar year exceeds the amount necessary for the purposes enumerated in subsection (c) for that year, the department may use such excess contributions for the purposes enumerated in subsection (c) for the following year and, to the extent available, to reduce the amount of additional contributions that would be required for the following year.

(f)  No Interest Factor shall be required for [the year following any year in which the amount of such interest-bearing advances has been reduced to zero, provided that an interest tax shall be required and shall be reimposed by the department for the calendar year following any year in which an interest-bearing advance remains outstanding on October 1 and there are not sufficient funds in the Interest Fund to pay the interest due in that year] any year for which funding is not required for any of the purposes enumerated in subsection (c).

20120060u5s

Section 5.  Sections 301.7(a) and 301.8(b) of the act, added October 19, 1988 (P.L.818, No.109), are amended to read:

Section 301.7.  Trigger Determination.--(a)  On July 1 of every year, the secretary shall calculate the trigger percentage to be used in setting surcharge and contribution rates for the contributions required under sections 301.2, 301.4 and 301.5 and in setting the benefit reduction required under section 404(e)(4) for the following calendar year. The secretary shall:

(1)  [determine] add the principal amount of outstanding bonds under Article XIV and the amount of outstanding advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) and subtract that sum from the balance in the Unemployment Compensation [Trust] Fund;

(2)  determine the average of the benefit costs for the three immediately preceding fiscal years; and

(3)  calculate the percentage that the [Unemployment Compensation Trust Fund] amount determined under paragraph (1) represents of the average of the benefit costs.

* * *

Section 301.8.  Trigger Rate Redeterminations.--* * *

(b)  [The rates shall be adjusted to yield the amounts indicated at the following trigger percentages:

(1)  At least one hundred fifty per centum (150%), the negative surcharge assessed under section 301.5 shall result in an employer contribution reduction of eighteen million dollars ($18,000,000).

(2)  At least one hundred ten per centum (110%) but less than one hundred twenty-five per centum (125%), the surcharge assessed under section 301.5 shall yield fifty million dollars ($50,000,000), and the employe tax under section 301.4 shall yield thirty-three million three hundred thirty-three thousand three hundred thirty-three dollars ($33,333,333).

(3)  At least ninety-five per centum (95%) but less than one hundred ten per centum (110%), the surcharge assessed under section 301.5 shall yield one hundred million dollars ($100,000,000), and the employe tax under section 301.4 shall yield sixty-six million six hundred sixty-six thousand six hundred sixty-six dollars ($66,666,666).

(4)  At least seventy-five per centum (75%) but less than ninety-five per centum (95%), the surcharge assessed under section 301.5 shall yield one hundred million dollars ($100,000,000), the additional contributions under section 301.2 shall yield seventy-five million dollars ($75,000,000), and the employe tax under section 301.4 shall yield one hundred sixteen million six hundred sixty-six thousand six hundred sixty-six dollars ($116,666,666).

(5)  At least fifty per centum (50%) but less than seventy-five per centum (75%), the surcharge assessed under section 301.5 shall yield one hundred million dollars ($100,000,000), the additional contribution under section 301.2 shall yield one hundred fifty million dollars ($150,000,000), and the employe tax under section 301.4 shall yield one hundred sixty-six million six hundred sixty-six thousand six hundred sixty-six dollars ($166,666,666).

(6)  Less than fifty per centum (50%), the surcharge assessed under section 301.5 shall yield one hundred million dollars ($100,000,000), the additional contribution under section 301.2 shall yield two hundred twenty-five million dollars ($225,000,000), the employe tax under section 301.4 shall yield one hundred sixty-six million six hundred sixty-six thousand six hundred sixty-six dollars ($166,666,666), and the benefit reduction under section 404(e)(4) shall yield fifty-two million dollars ($52,000,000).]

(1)  For calendar years 2013 through the year determined under paragraph (4), if the trigger percentage as of July 1 of the preceding calendar year is less than two hundred fifty per centum (250%), the rates determined under paragraph (2) shall apply. For calendar years following the year determined under paragraph (4), if the trigger percentage as of July 1 of the preceding calendar year is less than two hundred fifty per centum (250%), the rates determined under paragraph (3) shall apply.

(2)  The secretary shall redetermine the rates such that the surcharge assessed under section 301.5 shall yield one hundred million dollars ($100,000,000), the additional contribution under section 301.2 shall yield two hundred twenty-five million dollars ($225,000,000), the employe tax under section 301.4 shall yield one hundred sixty-six million six hundred sixty-six thousand six hundred sixty-six dollars ($166,666,666), and the benefit reduction under section 404(e)(4) shall yield fifty-two million dollars ($52,000,000).

(3)  The secretary shall redetermine the rates such that the surcharge assessed under section 301.5 shall yield one hundred thirty-eight million dollars ($138,000,000), the additional contribution under section 301.2 shall yield the sum of three hundred ten million dollars ($310,000,000) plus the amount determined under paragraph (5), the employe tax under section 301.4 shall yield two hundred thirty million dollars ($230,000,000), and the benefit reduction under section 404(e)(4) shall yield seventy-two million dollars ($72,000,000).

(4)  The calendar year determined under this paragraph shall be the earliest calendar year subsequent to 2012 on December 31 of which all of the following apply:

(i)  There is no unpaid balance of Federal advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) or interest thereon.

(ii)  There are no outstanding bond obligations under Article XIV of this act and no bond administrative expenses under Article XIV of this act and no such obligations and no such expenses will be due in the following year.

(5)  The amount determined under this paragraph shall be the sum of:

(i)  twenty per centum (20%) of the amount paid from the Unemployment Compensation Fund pursuant to section 1407(c) during the sixty (60) consecutive calendar months ending on June 30 of the year in which the redetermination occurs, plus

(ii)  twenty per centum (20%) of that portion of the amount paid from the Unemployment Compensation Fund pursuant to section 1407(c) during the immediately preceding sixty (60) consecutive calendar months that is not recovered by additional contributions paid for calendar years through the calendar year in which the redetermination occurs.

* * *

20120060u6s

Section 6.  Section 304 of the act, amended April 23, 1942 (Sp.Sess., P.L.60, No.23) and December 17, 1959 (P.L.1893, No.693) and repealed in part April 28, 1978 (P.L.202, No.53), is amended to read:

Section 304.  Reports by Employers; Assessments.--Each employer shall file with the department such reports, at such times, and containing such information, as the department shall require, for the purpose of ascertaining and paying the contributions required by this act.

(a)  (1)  If any employer fails within the time prescribed by the department to file any report necessary to enable the department to determine the amount of any contribution owing by such employer, the department may make an assessment of contributions against such employer of such amount of contributions for which the department believes such employer to be liable, together with interest thereon as provided in this act.

(2)  Within fifteen days after making such assessment the department shall give notice thereof [by registered mail] to such employer as provided in paragraph (3). If such employer is dissatisfied with the assessment so made he may petition the department for a re-assessment in the manner hereinafter prescribed.

(3)  The department will mail notice of an assessment to the employer's last known address or electronically transmit notice of an assessment to the employer's electronic mail address, if the employer has designated such an address. Notice of an assessment by mail is complete upon mailing. Notice of an assessment by electronic transmission is complete when notice is sent to the employer's electronic mail address.

(4)  In any petition for re-assessment filed hereunder and in any further appeal taken thereafter as herein provided, no questions shall be raised with respect to the department's determination of the Adjustment Factor applicable to any year covered by the assessment.

(b)  Any employer against whom an assessment is made may, within fifteen days after [receipt of] notice thereof, petition the department for a re-assessment which petition shall be under oath and shall set forth therein specifically and in detail the grounds and reasons upon which it is claimed that the assessment is erroneous. Hearing or hearings on said petition shall be held by the department at such places and at such times as may be determined by rules and regulations of the department and due notice of the time and place of such hearing given [by registered mail] to such petitioner.

(d)  As to any employer who fails to petition for re-assessments, or, having petitioned after due notice of hearing, fails to appear and be heard, or, in the case of a re-assessment, to appeal, such assessment or re-assessment of the department shall then become final, and the contributions and interest assessed or re-assessed by the department become forthwith due and payable, and no defense which might have been determined by the department or in the event of an appeal from re-assessment by the court shall be available to any employer in any suit or proceeding brought by the Commonwealth in the name of the fund for the recovery of such contribution based on such assessment or re-assessment.

(e)  In any hearings held by the department in pursuance of the provisions of this section the department is hereby authorized and empowered to examine any person or persons under oath concerning any matters pertaining to the determination of the liability of the employer for contributions under the provisions of this act and to this end may compel the production of books, papers and records and compel the attendance of all persons, whether as parties or witnesses, whom and which the department believes to have or contain knowledge or information material to such determination. The conduct of hearings and appeals before the department shall be in accordance with rules of procedure prescribed by the department, whether or not such rules conform to common law or rules of evidence or other technical rules of procedure, but shall be under supervision of the [Attorney General of the Commonwealth.] Office of General Counsel in accordance with the act of October 15, 1980 (P.L.950, No.164), known as the "Commonwealth Attorneys Act."

(f)  Witness fees and expenses of proceedings involving such assessments or re-assessments and the determination thereof shall be deemed part of the expenses of administering this act and shall be paid from the administration fund. Testimony at any hearing before the department held in pursuance of the provisions of this section shall be taken by a reporter but need not be transcribed unless an appeal be taken from a re-assessment made thereon.

20120060u7s

Section 7.  Section 308.1(c) of the act, amended June 22, 1964 (Sp.Sess., P.L.112, No.7), is amended to read:

Section 308.1.  Contributions to be Liens; Entry and Enforcement Thereof.--* * *

(c)  The liens shall continue [for five years from the date of entry and may be revived and continued in the manner now or hereafter provided for the renewal of judgments or as may be provided in The Fiscal Code, as amended] and shall retain their priority without the necessity of refiling or revival.

* * *

20120060u8s

Section 8.  Section 309 of the act is amended by adding a subsection to read:

Section 309.  Collection of Contributions and Interest; Injunctions.--* * *

(c)  In addition to the methods of collection authorized in this act, the department may collect contributions, interest, penalties and other liabilities due under this act as provided under 26 U.S.C. § 6402 (relating to authority to make credits or refunds) and by any other means available under Federal or State law.

20120060u9s

Section 9.  Section 313 of the act, added July 21, 1983 (P.L.68, No.30), is amended to read:

Section 313.  Dishonored [Checks] Payments.--The department is hereby authorized to charge a penalty of one hundred per centum (100%) of the face value of the check or payment by electronic transfer, up to a maximum of one [hundred dollars ($100)] thousand dollars ($1,000) with a minimum of [ten dollars ($10)] twenty-five dollars ($25) per occurrence for all dishonored checks and payments by electronic transfer that are not credited upon transmission or at such other amounts as shall be determined by the secretary and published in the Pennsylvania Bulletin as a notice under 45 Pa.C.S. § 725(a)(3) (relating to additional contents of Pennsylvania Bulletin). Such sums shall be collectible in the manner provided in sections 308.1, 308.2, 308.3 and 309 of this act.

20120060u10s

Section 10.  Section 401(a) and (f) of the act, amended July 10, 1980 (P.L.521, No.108), and December 9, 2002 (P.L.1330, No.156), are amended to read:

Section 401.  Qualifications Required to Secure Compensation.--Compensation shall be payable to any employe who is or becomes unemployed, and who--

(a)  Satisfies both of the following requirements:

(1)  Has, within his base year, been paid wages for employment as required by section 404(c) of this act[: Provided, however, That not].

(2)  Except as provided in section 404(a)(3), not less than [twenty per centum (20%)] forty-nine and one-half per centum (49.5%) of the employe's total base year wages have been paid in one or more quarters, other than the highest quarter in such employe's base year.

* * *

(f)  Has earned, subsequent to his separation from work under circumstances which are disqualifying under the provisions of subsections 402(b), 402(e), 402(e.1) and 402(h) of this act, remuneration for services in an amount equal to or in excess of six (6) times his weekly benefit rate [irrespective of whether or not such services were] in "employment" as defined in this act. The provisions of this subsection shall not apply to a suspension of work by an individual pursuant to a leave of absence granted by his last employer, provided such individual has made a reasonable effort to return to work with such employer upon the expiration of his leave of absence.

* * *

20120060u11s

Section 11.  Section 404(a), (c) and (e)(1) and (2) of the act, amended July 21, 1983 (P.L.68, No.30) and June 17, 2011 (P.L.16, No.6), are amended to read:

Section 404.  Rate and Amount of Compensation.--Compensation shall be paid to each eligible employe in accordance with the following provisions of this section except that compensation payable with respect to weeks ending in benefit years which begin prior to the first day of January 1989 shall be paid on the basis of the provisions of this section in effect at the beginning of such benefit years.

(a)  (1)  The employe's weekly benefit rate shall be computed as (1) the amount appearing in Part B of the Table Specified for the Determination of Rate and Amount of Benefits on the line on which in Part A there appears his "highest quarterly wage," or (2) fifty per centum (50%) of his full-time weekly wage, whichever is greater. Notwithstanding any other provision of this act, if an employe's weekly benefit rate, as calculated under this paragraph, is less than seventy dollars ($70), he shall be ineligible to receive any amount of compensation. If the employe's weekly benefit rate is not a multiple of one dollar ($1), it shall be rounded to the next lower multiple of one dollar ($1).

(2)  If the base year wages of an employe whose weekly benefit rate has been determined under clause (2) of paragraph (1) of this subsection are insufficient to qualify him under subsection (c) of this section, his weekly benefit rate shall be redetermined under clause (1) of paragraph (1) of this subsection.

(3)  If [the base year wages of an employe whose] an employe's weekly benefit rate [has been] as determined under clause (1) of paragraph (1) of this subsection, or redetermined under paragraph (2) of this subsection, as the case may be, is less than the maximum weekly benefit rate and the employe's base year wages are insufficient to qualify him under subsection (c) of this section but are sufficient to qualify him for any one of the next [three] two lower weekly benefit rates, his weekly benefit rate shall be redetermined at the highest of such next lower rates.

* * *

[(c)  The total amount of benefits to which an otherwise eligible employe who has base year wages in an amount equal to, or in excess of, the amount of qualifying wages appearing in Part C of the Table Specified for the Determination of Rate and Amount of Benefits on the line on which in Part B there appears his weekly benefit rate, as determined under subsection (a) of this section, shall be entitled during his benefit year to the amount appearing in Part B on said line multiplied by the number of qualifying credit weeks during his base year, up to a maximum of twenty-six (26): Provided he had eighteen (18) or more "credit weeks" during his base year. Notwithstanding any other provision of this act, any employe with less than eighteen (18) "credit weeks" during the employe's base year shall be ineligible to receive any amount of compensation.]

(c)  If an otherwise eligible employe has base year wages in an amount equal to or in excess of the amount of qualifying wages appearing in Part C of the Table Specified for the Determination of Rate and Amount of Benefits on the line on which in Part B there appears his weekly benefit rate, as determined under subsection (a) of this section, and had eighteen (18) or more credit weeks during his base year, he shall be entitled during his benefit year to the amount appearing in Part B on said line multiplied by the number of credit weeks during his base year, up to a maximum of twenty-six (26). Notwithstanding any other provision of this act, any employe with less than eighteen (18) credit weeks during the employe's base year shall be ineligible to receive any amount of compensation.

* * *

(e)  (1)  Table Specified for the Determination of

Rate and Amount of Benefits

[Part A

Highest

Quarterly

 Wage

 

Part B

Rate of

Compensation

 

Part C

Qualifying

Wages

 

Part D

Amount of

 

Part E

Compensation

$ 800-812

$35

$1320

 $910

 $560

  813-837

36

1360

 936

 576

  838-862

37

1400

 962

 592

  863-887

38

1440

 988

 608

  888-912

39

1480

1014

 624

  913-937

40

1520

1040

 640

  938-962

41

1560

1066

 656

  963-987

42

1600

1092

 672

  988-1012

43

1640

1118

 688

 1013-1037

44

1680

1144

 704

 1038-1062

45

1720

1170

 720

 1063-1087

46

1760

1196

 736

 1088-1112

47

1800

1222

 752

 1113-1162

48

1840

1248

 768

 1163-1187

49

1880

1274

 784

 1188-1212

50

1920

1300

 800

 1213-1237

51

1960

1326

 816

 1238-1262

52

2000

1352

 832

 1263-1287

53

2040

1378

 848

 1288-1312

54

2080

1404

 864

 1313-1337

55

2120

1430

 880

 1338-1362

56

2160

1456

 896

 1363-1387

57

2200

1482

 912

 1388-1412

58

2240

1508

 928

 1413-1437

59

2280

1534

 944

 1438-1462

60

2320

1560

 960

 1463-1487

61

2360

1586

 976

 1488-1512

62

2400

1612

 992

 1513-1537

63

2440

1638

1008

 1538-1562

64

2480

1664

1024

 1563-1587

65

2520

1690

1040

 1588-1612

66

2560

1716

1056

 1613-1637

67

2600

1742

1072

 1638-1662

68

2640

1768

1088

 1663-1687

69

2680

1794

1104

 1688-1712

70

2720

1820

1120

 1713-1737

71

2760

1846

1136

 1738-1762

72

2800

1872

1152

 1763-1787

73

2840

1898

1168

 1788-1812

74

2880

1924

1184

 1813-1837

75

2920

1950

1200

 1838-1862

76

2960

1976

1216

 1863-1887

77

3000

2002

1232

 1888-1912

78

3040

2028

1248

 1913-1937

79

3080

2054

1264

 1938-1962

80

3120

2080

1280

 1963-1987

81

3160

2106

1296

 1988-2012

82

3200

2132

1312

 2013-2037

83

3240

2158

1328

 2038-2062

84

3280

2184

1344

 2063-2087

85

3320

2210

1360

 2088-2112

86

3360

2236

1376

 2113-2137

87

3400

2262

1392

 2138-2162

88

3440

2288

1408

 2163-2187

89

3480

2314

1424

 2188-2212

90

3520

2340

1440

 2213-2237

91

3560

2366

1456

 2238-2262

92

3600

2392

1472

 2263-2287

93

3640

2418

1488

 2288-2312

94

3680

2444

1504

 2313-2337

95

3720

2470

1520

 2338-2362

96

3760

2496

1536

 2363-2387

97

3800

2522

1552

 2388-2412

98

3840

2558

1568

 2413-2437

99

3880

2574

1584

 2438-2462

100

3920

2600

1600

 2463-2487

101

3960

2626

1616

 2488-2512

102

4000

2652

1632

 2513-2537

103

4040

2678

1648

 2538-2562

104

4080

2704

1664

 2563-2587

105

4120

2730

1680

 2588-2612

106

4160

2756

1696

 2613-2637

107

4200

2782

1712

 2638-2662

108

4240

2808

1728

 2663-2687

109

4280

2834

1744

 2688-2712

110

4320

2860

1760

 2713-2737

111

4360

2886

1776

 2738-2762

112

4400

2912

1792

 2763-2787

113

4440

2938

1808

 2788-2812

114

4480

2964

1824

 2813-2837

115

4520

2990

1840

 2838-2862

116

4560

3016

1856

 2863-2887

117

4600

3042

1872

 2888-2912

118

4640

3068

1888

 2913-2937

119

4680

3094

1904

 2938-2962

120

4720

3120

1920

 2963-2987

121

4760

3146

1936

 2988-3012

122

4800

3172

1952

 3013-3037

123

4840

3198

1968

 3038-3062

124

4880

3224

1984

 3063-3087

125

4920

3250

2000

 3088-3112

126

4960

3276

2016

 3113-3137

127

5000

3302

2032

 3138-3162

128

5040

3328

2048

 3163-3187

129

5080

3354

2064

 3188-3212

130

5120

3380

2080

 3213-3237

131

5160

3406

2096

 3238-3262

132

5200

3432

2112

 3263-3287

133

5240

3458

2128

 3288-3312

134

5280

3484

2144

 3313-3337

135

5320

3510

2160

 3338-3362

136

5360

3536

2176

 3363-3387

137

5400

3562

2192

 3388-3412

138

5440

3588

2208

 3413-3437

139

5480

3614

2224

 3438-3462

140

5520

3640

2240

 3463-3487

141

5560

3666

2256

 3488-3512

142

5600

3692

2272

 3513-3537

143

5640

3718

2288

 3538-3562

144

5680

3744

2304

 3563-3587

145

5720

3770

2320

 3588-3612

146

5760

3796

2336

 3613-3637

147

5800

3822

2352

 3638-3662

148

5840

3848

2368

 3663-3687

149

5880

3874

2384

 3688-3712

150

5920

3900

2400

 3713-3737

151

5960

3926

2416

 3738-3762

152

6000

3952

2432

 3763-3787

153

6040

3978

2448

 3788-3812

154

6080

4004

2464

 3813-3837

155

6120

4030

2480

 3838-3862

156

6160

4056

2496

 3863-3887

157

6200

4082

2512

 3888-3912

158

6240

4108

2528

 3913-3937

159

6280

4134

2544

 3938-3962

160

6320

4170

2560

 3963-3987

161

6360

4196

2576

 3988-4012

162

6400

4212

2592

 4013-4037

163

6440

4238

2608

 4038-4062

164

6480

4264

2624

 4063-4087

165

6520

4290

2640

 4088-4112

166

6560

4316

2656

 4113-4137

167

6600

4342

2672

 4138-4162

168

6640

4368

2688

 4163-4187

169

6680

4394

2704

 4188-4212

170

6720

4420

2720

 4213-4237

171

6760

4446

2736

 4238-4262

172

6800

4472

2752

 4263-4287

173

6840

4498

2768

 4288-4312

174

6880

4524

2784

 4313-4337

175

6920

4550

2800

 4338-4362

176

6960

4576

2816

 4363-4387

177

7000

4602

2832

 4388-4412

178

7040

4628

2848

 4413-4437

179

7080

4654

2864

 4438-4462

180

7120

4680

2880

 4463-4487

181

7160

4706

2896

 4488-4512

182

7200

4732

2912

 4513-4537

183

7240

4758

2928

 4538-4562

184

7280

4784

2944

 4563-4587

185

7320

4810

2960

 4588-4612

186

7360

4836

2976

 4613-4637

187

7400

4862

2992

 4638-4662

188

7440

4888

3008

 4663-4687

189

7480

4914

3024

 4688-4712

190

7520

4940

3040

 4713-4737

191

7560

4966

3056

 4738-4762

192

7600

4992

3072

 4763-4787

193

7640

5018

3088

 4788-4812

194

7680

5044

3104

 4813-4837

195

7720

5070

3120

 4838-4862

196

7760

5096

3136

 4863-4887

197

7800

5122

3152

 4888-4912

198

7840

5148

3168

 4913-4937

199

7880

5174

3184

 4938-4962

200

7920

5200

3200

 4963-4987

201

7960

5226

3216

 4988-5012

202

8000

5252

3232

 5013-5037

203

8040

5278

3248

 5038-5062

204

8080

5304

3264

 5063 or more

205

*8120

5330

3280

*(this figure subject to section 401(a)).]

 Part A

 Highest

 Quarterly

Wage

 

Part B

Rate of

Compensation

 

Part C

Qualifying

Wages

  $1688-1712

$70

$3391

  1713-1737

71

3440

  1738-1762

72

3490

  1763-1787

73

3539

  1788-1812

74

3589

  1813-1837

75

3638

  1838-1862

76

3688

  1863-1887

77

3737

  1888-1912

78

3787

  1913-1937

79

3836

  1938-1962

80

3886

  1963-1987

81

3935

  1988-2012

82

3985

  2013-2037

83

4034

  2038-2062

84

4084

  2063-2087

85

4133

  2088-2112

86

4183

  2113-2137

87

4232

  2138-2162

88

4282

  2163-2187

89

4331

  2188-2212

90

4381

  2213-2237

91

4430

  2238-2262

92

4480

  2263-2287

93

4529

  2288-2312

94

4579

  2313-2337

95

4628

  2338-2362

96

4678

  2363-2387

97

4727

  2388-2412

98

4777

  2413-2437

99

4826

  2438-2462

100

4876

  2463-2487

101

4925

  2488-2512

102

4975

  2513-2537

103

5024

  2538-2562

104

5074

  2563-2587

105

5123

  2588-2612

106

5173

  2613-2637

107

5222

  2638-2662

108

5272

  2663-2687

109

5321

  2688-2712

110

5371

  2713-2737

111

5420

  2738-2762

112

5470

  2763-2787

113

5519

  2788-2812

114

5569

  2813-2837

115

5618

  2838-2862

116

5668

  2863-2887

117

5717

  2888-2912

118

5767

  2913-2937

119

5816

  2938-2962

120

5866

  2963-2987

121

5915

  2988-3012

122

5965

  3013-3037

123

6014

  3038-3062

124

6064

  3063-3087

125

6113

  3088-3112

126

6163

  3113-3137

127

6212

  3138-3162

128

6262

  3163-3187

129

6311

  3188-3212

130

6361

  3213-3237

131

6410

  3238-3262

132

6460

  3263-3287

133

6509

  3288-3312

134

6559

  3313-3337

135

6608

  3338-3362

136

6658

  3363-3387

137

6707

  3388-3412

138

6757

  3413-3437

139

6806

  3438-3462

140

6856

  3463-3487

141

6905

  3488-3512

142

6955

  3513-3537

143

7004

  3538-3562

144

7054

  3563-3587

145

7103

  3588-3612

146

7153

  3613-3637

147

7202

  3638-3662

148

7252

  3663-3687

149

7301

  3688-3712

150

7351

  3713-3737

151

7400

  3738-3762

152

7450

  3763-3787

153

7500

  3788-3812

154

7549

  3813-3837

155

7599

  3838-3862

156

7648

  3863-3887

157

7698

  3888-3912

158

7747

  3913-3937

159

7797

  3938-3962

160

7846

  3963-3987

161

7896

  3988-4012

162

7945

  4013-4037

163

7995

  4038-4062

164

8044

  4063-4087

165

8094

  4088-4112

166

8143

  4113-4137

167

8193

  4138-4162

168

8242

  4163-4187

169

8292

  4188-4212

170

8341

  4213-4237

171

8391

  4238-4262

172

8440

  4263-4287

173

8490

  4288-4312

174

8539

  4313-4337

175

8589

  4338-4362

176

8638

  4363-4387

177

8688

  4388-4412

178

8737

  4413-4437

179

8787

  4438-4462

180

8836

  4463-4487

181

8886

  4488-4512

182

8935

  4513-4537

183

8985

  4538-4562

184

9034

  4563-4587

185

9084

  4588-4612

186

9133

  4613-4637

187

9183

  4638-4662

188

9232

  4663-4687

189

9282

  4688-4712

190

9331

  4713-4737

191

9381

  4738-4762

192

9430

  4763-4787

193

9480

  4788-4812

194

9529

  4813-4837

195

9579

  4838-4862

196

9628

  4863-4887

197

9678

  4888-4912

198

9727

  4913-4937

199

9777

  4938-4962

200

9826

  4963-4987

201

9876

  4988-5012

202

9925

  5013-5037

203

9975

  5038-5062

204

10024

  5063-5087

205

10074

  5088-5112

206

10123

  5113-5137

207

10173

  5138-5162

208

10222

  5163-5187

209

10272

  5188-5212

210

10321

  5213-5237

211

10371

  5238-5262

212

10420

  5263-5287

213

10470

  5288-5312

214

10519

  5313-5337

215

10569

  5338-5362

216

10618

  5363-5387

217

10668

  5388-5412

218

10717

  5413-5437

219

10767

  5438-5462

220

10816

  5463-5487

221

10866

  5488-5512

222

10915

  5513-5537

223

10965

  5538-5562

224

11014

  5563-5587

225

11064

  5588-5612

226

11113

  5613-5637

227

11163

  5638-5662

228

11212

  5663-5687

229

11262

  5688-5712

230

11311

  5713-5737

231

11361

  5738-5762

232

11410

  5763-5787

233

11460

  5788-5812

234

11509

  5813-5837

235

11559

  5838-5862

236

11608

  5863-5887

237

11658

  5888-5912

238

11707

  5913-5937

239

11757

  5938-5962

240

11806

  5963-5987

241

11856

  5988-6012

242

11905

  6013-6037

243

11955

  6038-6062

244

12004

  6063-6087

245

12054

  6088-6112

246

12103

  6113-6137

247

12153

  6138-6162

248

12202

  6163-6187

249

12252

  6188-6212

250

12301

  6213-6237

251

12351

  6238-6262

252

12400

  6263-6287

253

12450

  6288-6312

254

12500

  6313-6337

255

12549

  6338-6362

256

12599

  6363-6387

257

12648

  6388-6412

258

12698

  6413-6437

259

12747

  6438-6462

260

12797

  6463-6487

261

12846

  6488-6512

262

12896

  6513-6537

263

12945

  6538-6562

264

12995

  6563-6587

265

13044

  6588-6612

266

13094

  6613-6637

267

13143

  6638-6662

268

13193

  6663-6687

269

13242

  6688-6712

270

13292

  6713-6737

271

13341

  6738-6762

272

13391

  6763-6787

273

13440

  6788-6812

274

13490

  6813-6837

275

13539

  6838-6862

276

13589

  6863-6887

277

13638

  6888-6912

278

13688

  6913-6937

279

13737

  6938-6962

280

13787

  6963-6987

281

13836

  6988-7012

282

13886

  7013-7037

283

13935

  7038-7062

284

13985

  7063-7087

285

14034

  7088-7112

286

14084

  7113-7137

287

14133

  7138-7162

288

14183

  7163-7187

289

14232

  7188-7212

290

14282

  7213-7237

291

14331

  7238-7262

292

14381

  7263-7287

293

14430

  7288-7312

294

14480

  7313-7337

295

14529

  7338-7362

296

14579

  7363-7387

297

14628

  7388-7412

298

14678

  7413-7437

299

14727

  7438-7462

300

14777

  7463-7487

301

14826

  7488-7512

302

14876

  7513-7537

303

14925

  7538-7562

304

14975

  7563-7587

305

15024

  7588-7612

306

15074

  7613-7637

307

15123

  7638-7662

308

15173

  7663-7687

309

15222

  7688-7712

310

15272

  7713-7737

311

15321

  7738-7762

312

15371

  7763-7787

313

15420

  7788-7812

314

15470

  7813-7837

315

15519

  7838-7862

316

15569

  7863-7887

317

15618

  7888-7912

318

15668

  7913-7937

319

15717

  7938-7962

320

15767

  7963-7987

321

15816

  7988-8012

322

15866

  8013-8037

323

15915

  8038-8062

324

15965

  8063-8087

325

16014

  8088-8112

326

16064

  8113-8137

327

16113

  8138-8162

328

16163

  8163-8187

329

16212

  8188-8212

330

16262

  8213-8237

331

16311

  8238-8262

332

16361

  8263-8287

333

16410

  8288-8312

334

16460

  8313-8337

335

16509

  8338-8362

336

16559

  8363-8387

337

16608

  8388-8412

338

16658

  8413-8437

339

16707

  8438-8462

340

16757

  8463-8487

341

16806

  8488-8512

342

16856

  8513-8537

343

16905

  8538-8562

344

16955

  8563-8587

345

17004

  8588-8612

346

17054

  8613-8637

347

17103

  8638-8662

348

17153

  8663-8687

349

17202

  8688-8712

350

17252

  8713-8737

351

17301

  8738-8762

352

17351

  8763-8787

353

17400

  8788-8812

354

17450

  8813-8837

355

17500

  8838-8862

356

17549

  8863-8887

357

17599

  8888-8912

358

17648

  8913-8937

359

17698

  8938-8962

360

17747

  8963-8987

361

17797

  8988-9012

362

17846

  9013-9037

363

17896

  9038-9062

364

17945

  9063-9087

365

17995

  9088-9112

366

18044

  9113-9137

367

18094

  9138-9162

368

18143

  9163-9187

369

18193

  9188-9212

370

18242

  9213-9237

371

18292

  9238-9262

372

18341

  9263-9287

373

18391

  9288-9312

374

18440

  9313-9337

375

18490

  9338-9362

376

18539

  9363-9387

377

18589

  9388-9412

378

18638

  9413-9437

379

18688

  9438-9462

380

18737

  9463-9487

381

18787

  9488-9512

382

18836

  9513-9537

383

18886

  9538-9562

384

18935

  9563-9587

385

18985

  9588-9612

386

19034

  9613-9637

387

19084

  9638-9662

388

19133

  9663-9687

389

19183

  9688-9712

390

19232

  9713-9737

391

19282

  9738-9762

392

19331

  9763-9787

393

19381

  9788-9812

394

19430

  9813-9837

395

19480

  9838-9862

396

19529

  9863-9887

397

19579

  9888-9912

398

19628

  9913-9937

399

19678

  9938-9962

400

19727

  9963-9987

401

19777

 9988-10012

402

19826

10013-10037

403

19876

10038-10062

404

19925

10063-10087

405

19975

10088-10112

406

20024

10113-10137

407

20074

10138-10162

408

20123

10163-10187

409

20173

10188-10212

410

20222

10213-10237

411

20272

10238-10262

412

20321

10263-10287

413

20371

10288-10312

414

20420

10313-10337

415

20470

10338-10362

416

20519

10363-10387

417

20569

10388-10412

418

20618

10413-10437

419

20668

10438-10462

420

20717

10463-10487

421

20767

10488-10512

422

20816

10513-10537

423

20866

10538-10562

424

20915

10563-10587

425

20965

10588-10612

426

21014

10613-10637

427

21064

10638-10662

428

21113

10663-10687

429

21163

10688-10712

430

21212

10713-10737

431

21262

10738-10762

432

21311

10763-10787

433

21361

10788-10812

434

21410

10813-10837

435

21460

10838-10862

436

21509

10863-10887

437

21559

10888-10912

438

21608

10913-10937

439

21658

10938-10962

440

21707

10963-10987

441

21757

10988-11012

442

21806

11013-11037

443

21856

11038-11062

444

21905

11063-11087

445

21955

11088-11112

446

22004

11113-11137

447

22054

11138-11162

448

22103

11163-11187

449

22153

11188-11212

450

22202

11213-11237

451

22252

11238-11262

452

22301

11263-11287

453

22351

11288-11312

454

22400

11313-11337

455

22450

11338-11362

456

22500

11363-11387

457

22549

11388-11412

458

22599

11413-11437

459

22648

11438-11462

460

22698

11463-11487

461

22747

11488-11512

462

22797

11513-11537

463

22846

11538-11562

464

22896

11563-11587

465

22945

11588-11612

466

22995

11613-11637

467

23044

11638-11662

468

23094

11663-11687

469

23143

11688-11712

470

23193

11713-11737

471

23242

11738-11762

472

23292

11763-11787

473

23341

11788-11812

474

23391

11813-11837

475

23440

11838-11862

476

23490

11863-11887

477

23539

11888-11912

478

23589

11913-11937

479

23638

11938-11962

480

23688

11963-11987

481

23737

11988-12012

482

23787

12013-12037

483

23836

12038-12062

484

23886

12063-12087

485

23935

12088-12112

486

23985

12113-12137

487

24034

12138-12162

488

24084

12163-12187

489

24133

12188-12212

490

24183

12213-12237

491

24232

12238-12262

492

24282

12263-12287

493

24331

12288-12312

494

24381

12313-12337

495

24430

12338-12362

496

24480

12363-12387

497

24529

12388-12412

498

24579

12413-12437

499

24628

12438-12462

500

24678

12463-12487

501

24727

12488-12512

502

24777

12513-12537

503

24826

12538-12562

504

24876

12563-12587

505

24925

12588-12612

506

24975

12613-12637

507

25024

12638-12662

508

25074

12663-12687

509

25123

12688-12712

510

25173

12713-12737

511

25222

12738-12762

512

25272

12763-12787

513

25321

12788-12812

514

25371

12813-12837

515

25420

12838-12862

516

25470

12863-12887

517

25519

12888-12912

518

25569

12913-12937

519

25618

12938-12962

520

25668

12963-12987

521

25717

12988-13012

522

25767

13013-13037

523

25816

13038-13062

524

25866

13063-13087

525

25915

13088-13112

526

25965

13113-13137

527

26014

13138-13162

528

26064

13163-13187

529

26113

13188-13212

530

26163

13213-13237

531

26212

13238-13262

532

26262

13263-13287

533

26311

13288-13312

534

26361

13313-13337

535

26410

13338-13362

536

26460

13363-13387

537

26509

13388-13412

538

26559

13413-13437

539

26608

13438-13462

540

26658

13463-13487

541

26707

13488-13512

542

26757

13513-13537

543

26806

13538-13562

544

26856

13563-13587

545

26905

13588-13612

546

26955

13613-13637

547

27004

13638-13662

548

27054

13663-13687

549

27103

13688-13712

550

27153

13713-13737

551

27202

13738-13762

552

27252

13763-13787

553

27301

13788-13812

554

27351

13813-13837

555

27400

13838-13862

556

27450

13863-13887

557

27500

13888-13912

558

27549

13913-13937

559

27599

13938-13962

560

27648

13963-13987

561

27698

13988-14012

562

27747

14013-14037

563

27797

14038-14062

564

27846

14063-14087

565

27896

14088-14112

566

27945

14113-14137

567

27995

14138-14162

568

28044

14163-14187

569

28094

14188-14212

570

28143

14213-14237

571

28193

14238-14262

572

28242

14263 or more

 

573

Amount required under section 401(a)(2)

(2)  (i)  The Table Specified for the Determination of Rate and Amount of Benefits shall be extended or contracted annually, automatically by regulations promulgated by the secretary. The table shall be extended or contracted in accordance with the following [procedure: for calendar year one thousand nine hundred seventy-two and for all subsequent calendar years, to a point where the maximum weekly benefit rate shall equal sixty-six and two-thirds per centum of the average weekly wage for the thirty-six-month period ending June 30 preceding each calendar year. If the maximum weekly benefit rate is not a multiple of one dollar ($1), it shall be rounded to the next lower multiple of one dollar ($1): Provided, however, That effective with benefit years beginning the first Sunday at least thirty days after the effective date of this amendatory act, the per centum stated in this paragraph for establishing the maximum weekly benefit rate shall be sixty-two and two-thirds per centum for the remainder of calendar year one thousand nine hundred seventy-four, sixty-four and two-thirds per centum for the calendar year one thousand nine hundred seventy-five, and sixty-six and two-thirds per centum for the calendar year one thousand nine hundred seventy-six and for all subsequent calendar years.]:

(A)  The table shall be extended or contracted to a point where the maximum weekly benefit rate shall equal sixty-six and two-thirds per centum (66 2/3%) of the average weekly wage for the thirty-six-month period ending June 30 preceding each calendar year. If the maximum weekly benefit rate is not a multiple of one dollar ($1), it shall be rounded to the next lower multiple of one dollar ($1).

(B)  When it is necessary to extend the table, it shall be done in accordance with the following procedure:

(I)  The words "or more" shall be deleted from the last line under Part A, and an amount twenty-four dollars ($24) greater than the first entry in that line shall be substituted therefor.  The words "amount required under section 401(a)(2)" shall be deleted from the last line under Part C.

(II)  Part A shall be extended as much as necessary by adding twenty-five dollars ($25) to each amount of the preceding line. At the point where the entry in Part B equals sixty-six and two-thirds per centum (66 2/3%) of the average weekly wage, the first entry in Part A shall consist of an amount twenty-five dollars ($25) greater than the smaller amount in the preceding line, and the words "or more" shall be added.

(III)  Part B shall be extended in increments of one dollar ($1) until that point is reached where the amount is equal to sixty-six and two-thirds per centum (66 2/3%) of the average weekly wage.

(IV)  Part C shall be extended to the point where, under Part B, the amount is equal to sixty-six and two-thirds per centum (66 2/3%) of the average weekly wage.

(a)  The amount on each line in Part C other than the last line shall be derived from the first entry on the same line in Part A, in accordance with the following formula:

(First entry in Part A plus twenty-four dollars ($24)) x 100 divided by fifty and one-half (50.5)

If the amount determined by this formula is not an even multiple of one dollar ($1), it shall be rounded to the next higher multiple of one dollar ($1).

(b)  The last line in Part C shall contain the words "amount required under section 401(a)(2)."

(C)  When it is necessary to contract the table, it shall be done by deleting all lines following that in which the amount in Part B is sixty-six and two-thirds per centum (66 2/3%) of the average weekly wage, substituting the words "or more" for the higher amount under Part A on that line and substituting the words "amount required under section 401(a)(2)" for the amount under Part C on that line.

(D)  The Table Specified for the Determination of Rate and Amount of Benefits as so extended or contracted shall be effective only for those claimants whose benefit years begin on or after the first day of January of such calendar year.

(ii)  For the purpose of determining the maximum weekly benefit rate, the Pennsylvania average weekly wage in covered employment shall be computed on the basis of the average annual total wages reported (irrespective of the limit on the amount of wages subject to contributions) for the thirty-six-month period ending June 30 (determined by dividing the total wages reported for the thirty-six-month period by three) and this amount shall be divided by the average monthly number of covered workers (determined by dividing the total covered employment reported for the same thirty-six-month period by thirty-six) to determine the average annual wage. The average annual wage thus obtained shall be divided by fifty-two and the average weekly wage thus determined rounded to the nearest cent.

[(iii)  Notwithstanding the provisions of subclause (i), for the calendar year 2012, the maximum weekly benefit rate shall be frozen at the rate calculated for calendar year 2011. Thereafter, the maximum weekly benefit rate established:

(A)  For calendar year 2013, shall be no greater than a one per centum (1%) increase above the calendar year 2012 rate.

(B)  For calendar year 2014, shall be no greater than a one and one-tenth per centum (1.1%) increase above the calendar year 2013 rate.

(C)  For calendar year 2015, shall be no greater than a one and two-tenths per centum (1.2%) increase above the calendar year 2014 rate.

(D)  For calendar year 2016, shall be no greater than a one and three-tenths per centum (1.3%) increase above the calendar year 2015 rate.

(E)  For calendar year 2017, shall be no greater than one and four-tenths per centum (1.4%) increase above the calendar year 2016 rate.

(F)  For calendar year 2018, shall be no greater increase than one and five-tenths per centum (1.5%) increase above the calendar year 2017 rate.

The limitations instituted for calendar years 2013 through 2018 shall expire on the earlier to occur of December 31, 2018, or the last day of the calendar year in which the unemployment Compensation trust fund does not have an outstanding solvency-based debt to the United States government.

(iv)  If the change implemented by the freeze in calendar year 2012 is determined by the department, in an official notice to the General Assembly, to result in the loss of funds under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 115), the schedule under subclause (iii) shall occur one year later and the expiration of the limitations set forth in subclause (iii) shall occur one year later.]

(iii)  Notwithstanding subclause (i), if the maximum weekly benefit rate determined under subclause (i) is greater than five hundred seventy-three dollars ($573), the maximum weekly benefit rate shall be subject to the following limitations:

(A)  For calendar years 2013 through 2019, the maximum weekly benefit rate shall be five hundred seventy-three dollars ($573).

(B)  For each calendar year 2020 through 2023, the maximum weekly benefit rate may increase from year to year by an amount that is no more than eight per centum (8%) of the maximum weekly benefit rate for the preceding year.

(C)  If the maximum weekly benefit rate determined under this subclause is not an even multiple of one dollar ($1), it shall be rounded to the next lower multiple of one dollar ($1).

* * *

20120060u12s

Section 12.  Section 601(a) of the act, amended July 21, 1983 (P.L.68, No.30), is amended to read:

Section 601.  Unemployment Compensation Fund.--(a)  There is hereby created a special fund separate and apart from all public moneys or funds of this Commonwealth to be known as the Unemployment Compensation Fund. All contributions paid by employers and employes, together with penalties and interest thereon, received or collected by the department from employers under the provisions of this act, except contributions which are to be paid into the Reemployment Fund as provided in section 301.4(e), such penalties and interest which are to be paid into the Special Administration Fund as provided in section 601.1 and taxes collected under section 301.6 of this act which are to be paid into the [Interest] Debt Service Fund as provided in section 601.2, shall be paid into the Unemployment Compensation Fund, and shall be credited by the department to a ledger account to be known as the Employers' Contribution Account. [Interest] Contributions which are to be paid into the Reemployment Fund as provided in section 301.4(e), interest and penalties which are to be credited to the Special Administration Fund and taxes collected under section 301.6 may be temporarily held in the Employers' Contribution Account solely for clearance purposes prior to transfer to the Reemployment Fund, the Special Administration Fund or [Interest] the Debt Service Fund and while so held in the Employers' Contribution Account shall not be deemed a part of the Unemployment Compensation Fund. All moneys from time to time received and credited to the Employers' Contribution Account (exclusive of refunds made under section 311, contributions transferred to the Reemployment Fund pursuant to section 301.4(e) and interest and penalties transferred as herein provided to the Special Administration Fund and taxes transferred to the [Interest] Debt Service Fund) shall be paid promptly by the department into the Unemployment Compensation Fund, except as otherwise provided in section 605 of this act. All moneys credited to this Commonwealth's account in the Unemployment Compensation Fund pursuant to section 903 of the Federal Social Security Act (42 U.S.C. § 1103) shall be included in the Unemployment Compensation Fund.

* * *

20120060u13s

Section 13.  Section 601.2 of the act, amended July 1, 1989 (P.L.107, No.22), is amended to read:

Section 601.2.  [Interest] Debt Service Fund.--(a)  There is hereby established a separate account in the State Treasury, to be known as the [Interest] Debt Service Fund. All taxes collected under section 301.6 of this act shall be paid into the [Interest] Debt Service Fund. The moneys in this fund shall be used in the following priority order and such funds received are hereby appropriated for all of the following purposes:

(1)  [For transfer to the General Fund for repayment of loans pursuant to subsection (c) or for transfer to the General Fund pursuant to subsections (f) and (g).] For payment of bond obligations and bond administrative expenses; for replenishment of bond reserves; for maintenance of debt service reserves in an amount the department, with approval by the Office of the Budget, determines necessary to maintain an adequate debt service coverage ratio; and for early, optional, mandatory or other refundings, redemptions or purchases of outstanding bonds under Article XIV of this act.

(2)  For the payment of annual interest obligations assessed under Title XII of the Social Security Act.

(3)  [Repayment] For repayment of outstanding interest-bearing advances received under Title XII of the Social Security Act.

[(4)  Unemployment compensation payments under this act.

(b)  Whenever the Governor shall ascertain that the cash balance and current estimated receipts of the Interest Fund shall be insufficient at any time during any State fiscal year to meet promptly the expenses of the Commonwealth from such fund, and the fund will have adequate funds available to meet such expenses and other anticipated expenses prior to the completion of the fiscal year, the State Treasurer is hereby authorized and directed, from time to time during such State fiscal year, to transfer from the General Fund to the Interest Fund such sums as the Governor directs. Any sums so transferred shall be available only for the purposes for which the fund to which they are transferred is appropriated by law. Such transfers shall be made hereunder upon warrant of the State Treasurer upon requisition of the Governor.

(c)  In order to reimburse the General Fund for moneys transferred from such fund under subsection (b), there shall be transferred moneys to such fund from the Interest Fund in such amounts and times as the Governor shall direct, but in no event later than thirty (30) days after the end of such State fiscal year. Such retransfers shall be made upon warrant of the State Treasurer upon requisition of the Governor.

(d)  Any amount of moneys remaining in this fund at the end of the calendar year after the interest obligations, for the calendar year, under Title XII of the Social Security Act have been met may be used as a voluntary repayment as prescribed by section 1202(b)(6)(A) of the Social Security Act, to reduce the balance of any outstanding interest-bearing advances received under Title XII of the Social Security Act.]

(4)  For transfer to the Unemployment Compensation Fund pursuant to subsection (b), for payment of compensation to individuals.

[(e)  Except as may be provided in subsections (f) and (g), any] (b)  Any amount of moneys remaining in this fund at the end of [the] a calendar year [in which the outstanding balance of interest-bearing advance under Title XII of the Social Security Act is zero] shall be transferred to the Unemployment Compensation Fund and credited to the Employers' Contribution Account as specified in section 601[.

(f)  Subsequent to the repayment of all indebtedness as described in this section, the sum of forty-one million dollars ($41,000,000) is hereby transferred from the Interest Fund to the General Fund. Moneys remaining in the Interest Fund after this transfer shall be transferred to the Unemployment Compensation Fund as provided in subsection (e).

(g)  The sum of eleven million seven hundred thousand dollars ($11,700,000) is hereby transferred from the Interest Fund to the General Fund. Moneys remaining in the Interest Fund after this transfer shall be transferred to the Unemployment Compensation Fund as provided in subsection (e).] if the following requirements are met:

(1)  the balance of interest-bearing advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) is zero at the end of that year;

(2)  no interest on advances shall be due in the following year; and

(3)  there are no outstanding bond obligations and bond administration expenses under Article XIV of this act and no such obligations and expenses will be due in the following year.

(c)  Pending application for the purposes authorized, moneys held or deposited by the State Treasurer in the Debt Service Fund may be invested or reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of moneys shall be paid into the State Treasury to the credit of the Debt Service Fund.

20120060u14s

Section 14.  The act is amended by adding a section to read:

Section 601.5.  Reemployment Fund.--(a)  There is hereby established a restricted account in the State Treasury to be known as the Reemployment Fund.

(b)  Moneys in the Reemployment Fund shall consist of contributions deposited into the fund pursuant to section 301.4(e).

(c)  Moneys in the Reemployment Fund are hereby appropriated, upon approval of the Governor, to the department for the following purposes:

(1)  Programs and services to assist individuals to become employed or improve their employment, including, without limitation, job search and placement services, educational enhancement, job training and job readiness and workplace skills training.

(2)  Research and studies to improve the department's ability to provide employment services, including, without limitation, research and studies to determine the composition of the work force, demand occupations and skills, future work force needs, labor market and business trends, the levels, duration and stability of employment and the effectiveness of employment services.

(3)  Improvements to the department's information technology infrastructure that will enhance the department's ability to provide employment services, including, without limitation, improvements that will better the department's ability to determine worker characteristics and work force characteristics and needs, acquire and distribute information about job opportunities and match job seekers with job openings.

(4)  Costs of administering activities under this section and the cost of collecting the contributions deposited into the Reemployment Fund pursuant to section 301.4(e).

(d)  The department may make funds available to governmental and private sector organizations to perform activities authorized under this section. Such organizations shall be selected based on a competitive application process as determined by the department.

(e)  At the end of each calendar year the department shall determine the amount of contributions deposited into the Reemployment Fund during that year pursuant to section 301.4(e).  If any amount of the contributions deposited in the Reemployment Fund during a calendar year are not expended or obligated for expenditure by June 30 of the following year, that amount shall be transferred to the Unemployment Compensation Fund under section 601 of this act.

(f)  Moneys in the fund shall be continuously available for expenditure in accordance with the provisions of this section and shall not lapse at any time nor be transferred to any other fund except as provided in subsection (e).

(g)  No later than June 30 of each calendar year the department shall provide a report to the Governor and the General Assembly regarding the activities under this section during the prior calendar year and an accounting for the contributions deposited into the Reemployment Fund, and the expenditures from the Reemployment Fund, during the prior calendar year.

20120060u15s

Section 15.  Section 603 of the act, amended June 15, 2005 (P.L.8, No.5), is amended to read:

Section 603.  State Treasurer as Custodian.--The State Treasurer shall be the custodian of the Unemployment Compensation Fund, the Administration Fund, the Special Administration Fund, the [Interest] Debt Service Fund [and], the Job Training Fund and the Reemployment Fund. He shall give a bond, or bonds, with corporate sureties, conditioned upon the faithful performance of his duties as custodian of such funds in such amount or amounts as shall be determined and fixed by the Executive Board of this Commonwealth. Premiums for such bond or bonds shall be paid by the department out of the moneys in the Administration Fund. All moneys belonging to such funds (exclusive of moneys on deposit in the Unemployment Trust Fund as provided in section 601) shall be deposited by the State Treasurer in any banks or public depositories in which general funds of the Commonwealth may be deposited, but no public deposit insurance charge or premium shall be paid out of moneys in the Unemployment Compensation Fund. Any law to the contrary notwithstanding, all payments from such funds shall be made under such systems of requisitioning and accounting as the Governor, the State Treasurer, and Secretary shall determine.

20120060u16s

Section 16.  Section 804(a) of the act, amended October 19, 1988 (P.L.818, No.109), is amended to read:

Section 804.  Recovery and Recoupment of Compensation.--(a)  Any person who by reason of his fault has received any sum as compensation under this act to which he was not entitled, shall be liable to repay to the Unemployment Compensation Fund to the credit of the Compensation Account a sum equal to the amount so received by him and interest at the rate determined by the Secretary of Revenue as provided by section 806 of the act of April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code," per month or fraction of a month from fifteen (15) days after the Notice of Overpayment was issued until paid. Such sum shall be collectible (1) in the manner provided in section 308.1 or section 309 of this act, for the collection of past due contributions, or (2) by deduction from any future compensation payable to the claimant under this act: Provided, That interest assessed under this section cannot be recouped by deduction from any future compensation payable to the claimant under this act: Provided further, That no administrative or legal proceedings for the collection of such sum shall be instituted after the expiration of [six] ten years following the end of the benefit year with respect to which such sum was paid.

* * *

20120060u17s

Section 17.  The act is amended by adding articles to read:

ARTICLE XIV

UNEMPLOYMENT COMPENSATION BONDS

Section 1401.  Definitions.

The following words and phrases, when used in this article, shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Authority."  The Pennsylvania Economic Development Financing Authority.

"Bond."  Any type of revenue obligation, including a bond or series of bonds, note, certificate or other instrument, issued by the authority for the benefit of the department under this article.

"Bond administrative expenses."  Expenses incurred to administer bonds as provided under the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law, or as otherwise necessary to ensure compliance with applicable Federal or State law.

"Bond obligations."  The principal of a bond and any premium and interest payable on a bond, together with any amount owed under a related credit agreement or a related resolution of the financing authority authorizing a bond.

"Credit agreement."  A loan agreement, a revolving credit agreement, an agreement establishing a line of credit, a letter of credit or another agreement that enhances the marketability, security or creditworthiness of a bond.

"Debt Service Fund."  The fund established under section 601.2.

"Federal advances."  Loans by the Federal Government to the Commonwealth for the payment of compensation under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) or any similar Federal law.

"Financing Law."  The act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law.

Section 1402.  Bond issuance.

(a)  Declaration of policy.--The General Assembly finds and declares that funding the payment of compensation or the repayment of previous Federal advances, including interest, through the authority, is in the best interest of the Commonwealth.

(b)  Authority.--Notwithstanding any other law, the following shall apply:

(1)  The department may be a project applicant under the Financing Law and may apply to the authority for the funding of compensation or repayment of Federal advances and interest due on them.

(2)  The funding of compensation or repayment of Federal advances and interest due on them shall constitute a project for purposes of the Financing Law.

(3)  The authority may issue bonds under the Financing Law, consistent with this article, to finance a project consisting of the funding of compensation or repayment of Federal advances and interest due on them or refunding or redeeming of prior bonds.

(4)  Participation of an industrial and commercial development authority is not required to finance the payment of compensation or repayment of Federal advances and interest due on them.

(c)  Debt or liability.--

(1)  Bonds issued under this article shall not be a debt or liability of the Commonwealth and shall not create or constitute any indebtedness, liability or obligation of the Commonwealth.

(2)  Bond obligations and bond administrative expenses shall be payable solely from revenues or funds pledged or available for their repayment as authorized in this article. This paragraph includes the proceeds of any issuance of bonds.

(3)  Each bond must contain on its face a statement that:

(i)  the authority is obligated to pay the principal of the bond or the interest on the bond only from funds made available under this article;

(ii)  neither the Commonwealth nor a political subdivision is obligated to pay the principal or interest; and

(iii)  the full faith and credit of the Commonwealth is not pledged to the payment of the principal of or the interest on the bonds.

Section 1403.  Criteria for bond issuance.

(a)  Determination.--If the department reasonably expects that the issuance of bonds to obtain funds to pay compensation or to repay Federal advances, including interest, would result in a savings to employers in this Commonwealth, as an alternative to borrowing by means of Federal advances or repayment of the Federal advances and interest by other means, the department, with approval by the Office of the Budget, may apply to the authority to issue bonds for its benefit under section 1402(b).

(b)  Terms.--

(1)  The department, with the approval of the Office of the Budget, shall specify in its application to the authority:

(i)  the maximum principal amount of the bonds for each separate bond issue; and

(ii)  the maximum term of the bonds, not to exceed 20 years.

(2)  The total principal amount of bonds outstanding under this article for all bond issues may not exceed $4,500,000,000.

Section 1404.  Issuance of bonds and security.

(a)  Issuance.--The authority shall consider issuance of bonds upon application by the department. Bonds issued under this article shall be subject to the provisions of the Financing Law, unless otherwise specified by this article.

(b)  Agreements.--The authority and the department may enter into loan agreements, credit agreements, bond purchase agreements and other contracts, instruments and agreements in connection with the bonds in order to effectuate the purposes of the Financing Law and this article.

(c)  Security.--The bond obligations and bond administrative expenses are secured, for the benefit of the holders of the bonds and the obligees under any agreements in subsection (b), by pledge of, security interest in and first lien on all of the following:

(1)  Additional contributions collected under section 301.6.

(2)  Moneys on deposit in the Debt Service Fund. This paragraph includes all investment income on those moneys.

(3)  All moneys relating to the bonds held on deposit in any other fund or account under an instrument or agreement pertaining to the bonds. This paragraph includes bond reserves and interest income on the moneys.

The security provided in this subsection does not apply to moneys in any fund or account related to arbitrage rebate obligations.

Section 1405.  Sale of bonds.

The sale of bonds issued under this article shall be subject to the following:

(1)  The authority shall give first consideration to issuing the bonds by means of a public, competitive sale at not less than 98% of the principal amount and accrued interest to the highest bidders. The authority shall publicly advertise the sale. The manner and times of advertising shall be prescribed by the authority.

(2)  If, in the judgment of the authority, a public, competitive sale will not produce the most benefit to employers and the Commonwealth, the authority shall adopt a resolution setting forth in detail the reasons for this determination. A copy of the resolution shall be transmitted to the Governor, the chairman and minority chairman of the Labor and Industry Committee of the Senate and the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives. After adoption of the resolution, the authority shall have the option to pursue a negotiated sale.

Section 1406.  Use of bond proceeds.

(a)  Order.--Upon issuance of bonds, the proceeds shall be applied in the following order:

(1)  pay the costs of issuance of the bonds;

(2)  fund bond reserves;

(3)  deposit in an appropriate fund moneys to pay capitalized interest on the bonds for the period determined by the department, not to exceed two years;

(4)  refund outstanding bonds, if applicable;

(5)  make any other deposit required under any instrument or agreement pertaining to the bonds;

(6)  repay the principal and interest of Federal advances; and

(7)  deposit any balance into an unemployment compensation program fund under any instrument or agreement relating to the bonds.

(b)  Application of balance.--The bond proceeds deposited under subsection (a)(7) shall be applied as directed by the department to do one or more of the following:

(1)  Repay the principal and interest of previous Federal advances.

(2)  Pay unemployment compensation benefits.

(3)  Pay bond administrative expenses.

(4)  Redeem or purchase outstanding bonds.

(5)  Pay bond obligations.

Section 1407.  Payment of bond-related obligations.

(a)  Notification.--For each calendar year in which bond obligations and bond administrative expenses will be due, the authority shall notify the department of the amount of bond obligations and the estimated amount of bond administrative expenses in sufficient time, as determined by the department, to permit the department to determine the amount of additional contributions under section 301.6 required for that year, for deposit into the Debt Service Fund. The authority's calculation of the amount of bond obligations and bond administrative expenses that will be due is subject to verification by the department.

(b)  Transfer.--Moneys in the Debt Service Fund that are needed to pay bond obligations and bond administrative expenses or to replenish bond reserves shall be transferred to the authority to ensure timely payment of bond obligations and bond administrative expenses and timely replenishment of bond reserves under any instrument or agreement related to the bonds.

(c)  Deficiency in Debt Service Fund.--If there is a deficiency in the Debt Service Fund and to the extent permitted by law, that part of the principal owed on bonds which is attributable to repayment of the principal of advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.), exclusive of interest or administrative costs associated with the bonds, may be paid from the Unemployment Compensation Fund.

Section 1408.  Commonwealth not to impair bond-related obligations.

The Commonwealth pledges that it shall not do any of the following:

(1)  Limit or alter the rights and responsibilities of the authority or the department under this article, including the responsibility to:

(i)  pay bond obligations and bond administrative expenses; and

(ii)  comply with any other instrument or agreement pertaining to bonds.

(2)  Alter or limit the security interest granted in section 1404(c).

(3)  Impair the rights and remedies of the holders of bonds, until all bonds at any time issued, together with the interest thereon, are fully met and discharged.

Section 1409.  No personal liability.

The members, directors, officers and employees of the department and the authority are not personally liable as a result of good faith exercise of the rights and responsibilities granted under this article.

Section 1410.  Expiration.

The authority to issue bonds other than refinancing and refunding bonds under sections 1402 and 1404 shall expire December 31, 2016.

Section 1411.  Annual report required.

No later than March 1 of the year following the first full year in which bonds have been issued under this article and for each year thereafter in which bond obligations existed in the prior year, the department shall submit an annual report to the chairman and minority chairman of the Labor and Industry Committee of the Senate and to the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives providing all data available on bonds issued or existing in the prior year. The report shall include, but not be limited to, existing and anticipated bond principal, interest and administrative costs, revenue, repayments, refinancing, overall benefits, including any savings to employers and any other relevant data, facts and statistics that the department believes necessary in the content of the report.

ARTICLE XV

UNEMPLOYMENT COMPENSATION AMNESTY PROGRAM

Section 1501.  Definitions.

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Amnesty period."  The period of three consecutive calendar months designated by the Department of Labor and Industry that commences no later than 360 days after the effective date of this section.

"Employee information."  The name and Social Security number of each employee, the amount of wages paid to each employee and the number of credit weeks for each employee in each calendar quarter.

"Interest."  Monetary obligations imposed under sections 308 and 804(a).

"Penalties."  Monetary obligations imposed under sections 206(d) and 313.

"Penalty weeks."  Weeks for which an individual is disqualified from receiving compensation under section 801(b).

"Program."  The Unemployment Compensation Amnesty Program established under this article.

Section 1502.  Program established.

There is established an Unemployment Compensation Amnesty Program in accordance with the provisions of this article.

Section 1503.  Applicability.

(a)  Employer liabilities.--Except as provided in subsections (c) and (d), the program shall apply to the following unemployment compensation employer liabilities:

(1)  Unpaid contributions due for calendar quarters through the first quarter of 2012, for which the employer reported the employee information or the department acquired the employee information through an audit.

(2)  Unpaid contributions due for calendar quarters through the first quarter of 2012, for which the employer did not report the employee information and the department did not acquire the employee information through an audit.

(3)  Unpaid reimbursement due on or before April 30, 2012.

(4)  Unpaid interest due on contributions paid late for calendar quarters through the first quarter of 2012 or on reimbursement that was due on or before April 30, 2012, and was paid late.

(5)  Unpaid penalties due for reports filed late for calendar quarters through the first quarter of 2012.

(b)  Claimant liabilities.--Except as provided in subsections (c) and (d), the program shall apply to the following unemployment compensation claimant liabilities:

(1)  A fault overpayment of compensation under section 804(a) established pursuant to a notice of determination of overpayment issued by the department on or before June 30, 2012, to the extent repayment has not occurred.

(2)  A nonfault overpayment of compensation under section 804(b)(1) established pursuant to a notice of determination of overpayment issued by the department on or before June 30, 2012, to the extent repayment has not occurred.

(3)  Compensation paid to a claimant for calendar weeks through the week ending June 30, 2012, for which the department has not issued a notice of determination of overpayment, but the claimant acknowledges that the compensation was overpaid under circumstances to which section 804(a) applies.

(4)  Unpaid interest due on an overpayment of compensation under section 804(a) that was repaid on or before June 30, 2012.

(c)  Excluded liabilities.--The following unemployment compensation liabilities are excluded from the program:

(1)  An overpayment of compensation established pursuant to a notice of determination of overpayment that has not become final.

(2)  An employer liability for which a petition for reassessment under section 304(b) or an application for review and redetermination of contribution rate under section 301(e)(2) is pending.

(d)  Further exclusions.--The department may exclude the following unemployment compensation liabilities from the program:

(1)  A liability for which a praecipe for a writ of execution was filed prior to receipt of the amnesty form.

(2)  A liability that was referred for judicial proceedings or for which a judicial proceeding was commenced prior to receipt of the amnesty form.

(3)  A liability that is required to be paid under an order of a Federal or State court.

Section 1504.  Procedure for participation.

To participate in the program, an employer or a claimant shall do the following:

(1)  During the amnesty period, the employer or claimant shall file an amnesty form with the department containing all information required by the department, including a statement by the employer or claimant acknowledging the provisions of section 1506(f). The form shall be filed in a manner specified in and the filing date of the form shall be determined by guidelines established by the department.

(2)  If an employer is seeking amnesty with regard to a liability described in section 1503(a)(2), the employer shall report the employee information by filing quarterly reports as required by regulations promulgated by the department for all calendar quarters for which the employer did not previously file reports and by filing amended quarterly reports for all calendar quarters for which the employer did not file complete reports. The quarterly reports shall accompany the amnesty form.

(3)  The employer or claimant shall pay the amount or amounts required by section 1505. Payment shall accompany the amnesty form.

Section 1505.  Required payment and terms of amnesty.

An employer or claimant shall pay the amount or amounts specified in this section that correspond to the liability or liabilities for which amnesty is sought. The department shall grant amnesty as provided in this section and section 1506.

(1)  If an employer is seeking amnesty with regard to unpaid contributions described in section 1503(a)(1) or (2):

(i)  The employer shall pay all of the unpaid contributions and lien filing costs, if applicable, and one-half of the interest and penalties due.

(ii)  The department shall waive the remaining interest and penalties due corresponding to the contributions.

(2)  If an employer is seeking amnesty with regard to unpaid reimbursement described in section 1503(a)(3):

(i)  The employer shall pay all of the unpaid reimbursement and lien filing costs, if applicable, and one-half of the interest due.

(ii)  The department shall waive the remaining interest due corresponding to the reimbursement.

(3)  If an employer is seeking amnesty with regard to unpaid interest described in section 1503(a)(4):

(i)  The employer shall pay all of the lien filing costs, if applicable, and one-half of the unpaid interest due.

(ii)  The department shall waive the remaining unpaid interest due.

(4)  If an employer is seeking amnesty with regard to unpaid penalties described in section 1503(a)(5):

(i)  The employer shall pay all of the lien filing costs, if applicable, and one-half of the unpaid penalties due.

(ii)  The department shall waive the remaining unpaid penalties due.

(5)  If a claimant is seeking amnesty with regard to an overpayment described in section 1503(b)(1) or (3):

(i)  The claimant shall pay the outstanding balance of the overpayment and lien filing costs, if applicable, and one-half of the interest due.

(ii)  The department shall waive the remaining interest due and one-half of any previously imposed penalty weeks corresponding to the overpayment that have not been served by the claimant and shall not issue a notice of determination imposing penalty weeks corresponding to the overpayment. If one-half of the unserved penalty weeks is not an even multiple of one, the number of penalty weeks waived shall be rounded to the next lower multiple of one.

(6)  If a claimant is seeking amnesty with regard to an overpayment described in section 1503(b)(2):

(i)  The claimant shall pay 50% of the outstanding balance of the overpayment.

(ii)  The department shall waive the remaining balance of the overpayment.

(7)  If a claimant is seeking amnesty with regard to unpaid interest described in section 1503(b)(4):

(i)  The claimant shall pay all of the lien filing costs, if applicable, and one-half of the interest due.

(ii)  The department shall waive the remaining unpaid interest due.

Section 1506.  Additional terms and conditions of amnesty.

(a)  General rule.--If a payment plan agreement exists between an employer or claimant and the department for a liability for which the employer or claimant is seeking amnesty, the employer or claimant shall pay the amount or amounts required by section 1505 during the amnesty period in order to receive amnesty, notwithstanding any terms of the agreement to the contrary.

(b)  Proceedings.--The department shall not commence any administrative or judicial proceeding against an employer with regard to any contributions, reimbursement, interest or penalty paid under the program, or any interest or penalties waived under the program. The department shall not commence any administrative or judicial proceeding against a claimant with regard to any overpayment or interest paid under the program or any overpayment or interest waived under the program.

(c)  Liabilities.--If a liability for contributions described in section 1503(a)(2) or liability for an overpayment described in section 1503(b)(3) is disclosed and paid under the program, and the department determines that the liability as disclosed was understated, the department may commence administrative or judicial proceedings and impose interest, penalties and other monetary obligations only with regard to the difference between the liability as disclosed and the correct amount of the liability.

(d)  Construction.--Except as provided in subsection (c), nothing in this article shall be construed to prohibit the department from commencing administrative or judicial proceedings and imposing interest, penalties and other monetary obligations with respect to any liability that is not disclosed under the program or any amount that is not paid under the program.

(e)  Refunds and credits.--An employer or claimant shall not be owed a refund or credit under this article for any amount paid prior to the amnesty period.

(f)  Restrictions.--An employer or claimant may not commence an administrative or judicial proceeding with regard to the amnesty form, any report filed in connection with the program, any liability disclosed under the program or any amount paid under the program, and shall not be owed a refund or credit for any amount paid under the program.

Section 1507.  Duties of department.

(a)  General rule.--The department shall establish guidelines to implement the provisions of this article and publish the guidelines as a notice in the Pennsylvania Bulletin no less than 90 days before the amnesty period begins.

(b)  Publicity.--The department shall publicize the program to maximize awareness of and participation in the program.

(c)  Notification.--The department shall notify all employers and claimants who are known to have liabilities to which the program applies. The notice shall be sent by mail to the employer's or claimant's last known post office address or by electronic transmission, if the employer or claimant has elected to receive communications from the department by that method.

Section 1508.  Construction.

Except as expressly provided in this article, this article shall not:

(1)  be construed to relieve any employer, claimant, individual or any entity from filing reports or other documents required by or paying any amounts due under this act;

(2)  affect or terminate any petitions, investigations, prosecutions or any other administrative or judicial proceedings pending under this act; or

(3)  prevent the commencement or further prosecution of any proceedings by the proper authorities of the Commonwealth for violation of any laws or for the assessment, collection or recovery of any amounts due to the Commonwealth under any laws.

Section 1509.  Suspension of inconsistent acts.

All acts or parts of acts inconsistent with the provisions of this article are suspended to the extent necessary to carry out the provisions of this article.

Section 1510.  Report required.

Within 240 days of the close of the amnesty period, the department shall submit a report to the chairman and minority chairman of the Labor and Industry Committee of the Senate and the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives detailing all data available on the administration of the program, the cost of the program, amounts recovered from employers and claimants and any relevant facts and statistics that the department believes necessary in the content of the report.

20120060u18s

Section 18.  This act shall apply as follows:

(1)  The amendment of section 301.4 of the act shall apply to contributions on wages paid on or after January 1, 2013.

(2)  The amendment of section 301.6 of the act shall apply to the calculation of the interest factor for calendar year 2013 and thereafter.

(3)  The amendment of section 301.7(a) of the act shall apply to the calculation of the trigger percentage in 2012 and subsequent calendar years for purposes of contribution rates and benefit reductions for calendar year 2013 and thereafter, respectively.

(4)  The amendment of section 301.8(b) of the act shall apply to the redetermination of contribution rates and the benefit reduction to occur under section 301.8 in 2012 and each fifth year thereafter for purposes of contribution rates and the benefit reduction for calendar year 2013 and thereafter, respectively.

(5)  The amendment of section 304 of the act shall apply to notices of assessment issued on or after the effective date of that section.

(6)  The amendment of section 308.1(c) of the act shall apply to all liens filed or revived within the five-year period immediately preceding the effective date of that section and all liens filed or revived on or after the effective date of that section.

(6.1)  The amendment of section 401(f) shall apply to separations that occur on or after the effective date of that amendment.

(7)  The following provisions shall apply to benefit years which begin after December 31, 2012:

(i)  The amendment of section 4(m.3) and (w) of the act.

(ii)  The amendment of section 401(a) of the act.

(iii)  The amendment of section 404(a) of the act.

(iv)  The amendment of section 404(c) of the act.

(v)  The amendment of section 404(e)(1) and (2) of the act.

(8)  The amendment of section 804 of the act shall apply to benefit years that begin on or after the effective date of that section.

20120060u19s

Section 19.  Repeals are as follows:

(1)  The General Assembly declares that the repeal under paragraph (2) is necessary to effectuate section 18(7)(iii) of this act.

(2)  Section 9(7) of the act of June 17, 2011 (P.L.16, No.6), entitled "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,' further providing for definitions and for relief from charges and for establishment and maintenance of employer's reserve accounts; providing for automatic relief from charges; further providing for qualifications required to secure compensation, for rate and amount of compensation, for definitions and for rules of procedure; and providing for shared-work program and for applicability," is repealed.

20120060u20s

Section 20.  This act shall take effect as follows:

(1)  The amendment of sections 4(m.3), (w) and (x), 301.1(e), 301.4, 401(a) and (f) and 404(a), (c) and (e)(1) and (2) of the act shall take effect January 1, 2013.

(2)  The remainder of this act shall take effect immediately.

 

APPROVED--The 12th day of June, A.D. 2012.

 

TOM CORBETT