S1310B1849A07684     BIL:JMM  12/13/11     #90        A07684

AMENDMENTS TO SENATE BILL NO. 1310

Sponsor: REPRESENTATIVE B. BOYLE

Printer's No. 1849

Amend Bill, page 1, line 16, by inserting after "rate,"

 for contributions by employees,

Amend Bill, page 1, line 18, by inserting after

"determination,"

 for trigger rate redeterminations,

Amend Bill, page 1, line 20, by striking out the comma after

"Fund" where it occurs the second time and inserting

 and for Job Training Fund; providing for on-the-job

training grant program; further providing

Amend Bill, page 6, by inserting between lines 28 and 29

Section 1.2.  Section 301.4(a) and (b) of the act, amended

October 19, 1988 (P.L.818, No.109), are amended to read:

Section 301.4.  Contributions by Employes.--(a)

Notwithstanding any other provision of this act, each employe

shall contribute at a rate of four-hundredths of one per centum

(0.04%) to the Unemployment Compensation Fund [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] and at

a rate of four-hundredths of one per centum (0.04%) to the Job

Training Fund 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 Job

Training Fund, in accordance with rules and procedures

established by the department.

* * *

Amend Bill, page 9, line 4, by striking out "Section 301.7"

and inserting

 Sections 301.7 and 301.8(b) and (e)

Amend Bill, page 9, line 5, by striking out "is" and

inserting

 are

Amend Bill, page 9, line 9, by inserting a bracket before the

comma after "301.2"

Amend Bill, page 9, line 9, by inserting a bracket after

"301.4"

Amend Bill, page 10, line 6, by inserting a bracket before

the comma after "301.2"

Amend Bill, page 10, line 6, by inserting a bracket after

"301.4"

Amend Bill, page 10, line 9, by inserting a bracket before

the colon after "(125%)"

Amend Bill, page 10, line 10, by inserting after "the" where

it occurs the first time

] the

Amend Bill, page 10, line 11, by inserting a bracket before

the semicolon after "(4%)"

Amend Bill, page 10, line 13, by inserting a bracket after

"(0.05%)"

Amend Bill, page 10, line 15, by inserting a bracket before

the colon after "(110%)"

Amend Bill, page 10, line 16, by inserting after "the" where

it occurs the first time

] the

Amend Bill, page 10, line 17, by inserting a bracket before

the semicolon after "(8%)"

Amend Bill, page 10, line 19, by inserting a bracket after

"(0.1%)"

Amend Bill, page 10, line 24, by inserting a bracket before

"(ii)"

Amend Bill, page 10, line 25, by inserting a bracket after

"(0.15%);"

Amend Bill, page 11, line 3, by inserting a bracket before

"(ii)"

Amend Bill, page 11, line 4, by inserting a bracket after

"(0.2%);"

Amend Bill, page 11, line 10, by inserting after "(8%);"

 and

Amend Bill, page 11, line 13, by inserting a bracket before

the semicolon after "(0.75%)"

Amend Bill, page 11, line 15, by inserting a bracket after

"(0.2%)"

Amend Bill, page 11, by inserting between lines 23 and 24

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).

* * *

(e)  The redetermined rates shall be rounded in accordance

with the following schedule:

(1)  If the rate for the surcharge assessed under section

301.5 is not a multiple of one-tenth of one per centum (0.1%),

it shall be rounded to the next higher multiple of one-tenth of

one per centum (0.1%).

[(2)  If the rate for the employe tax under section 301.4 is

not a multiple of one-hundredth of one per centum (0.01%), it

shall be rounded to the next higher multiple of one-hundredth of

one per centum (0.01%).]

(3)  If the rate for the additional contribution under

section 301.2 is not a multiple of five-hundredths of one per

centum (0.05%), it shall be rounded to the next higher multiple

of five-hundredths of one per centum (0.05%).

(4)  If the rate for the benefit reduction under section

404(e)(4) is not a multiple of one-tenth of one per centum

(0.1%), it shall be rounded to the next higher multiple of one-

tenth of one per centum (0.1%).

Amend Bill, page 19, by inserting between lines 26 and 27

Section 4.1.  Section 601.4 of the act, added June 15, 2005

(P.L.8, No.5), is amended to read:

Section 601.4.  Job Training Fund.--(a)  There is hereby

created a special fund to be known as the Job Training Fund.

Deposits in the fund shall include contributions by employes

under section 301.4, moneys transferred from the Special

Administration Fund pursuant to section 601.1(b) and other

moneys appropriated to the fund.

(b)  Subject to the provisions of [subsections (c) and (d),

the moneys in this fund are hereby appropriated, upon approval

of the Governor, to the Department of Labor and Industry]

subsection (b.1), the General Assembly shall annually

appropriate to the Department of Labor and Industry from this

fund such amounts as may be necessary for the following

purposes:

(1)  Job training programs for incumbent workers, dislocated

workers, adult and youth workers, and any other work force

development training program, including equipment and supplies.

(2)  Job training equipment, subject to a requirement for

matching funds from a source other than State funding.

(3)  The costs of administering such training program.

(4)  The costs of collecting interest and penalties under

this act that are transferred from the Special Administration

Fund.

(b.1)  (1)  Not less than fifty per centum (50%) of the total

amount appropriated annually under subsection (b) shall be for

the purpose of providing on-the-job training grants under

section 601.5 of this act, including the costs of administering

such grants.

(2)  Not less than twenty-five per centum (25%) of the total

amount appropriated annually under subsection (b)shall be for

the purpose of funding industry partnerships under Chapter 13 of

the act of December 18, 2001 (P.L.949, No.114), known as the

Workforce Development Act.

(c)  Moneys from the fund for purposes other than on-the-job

training grants under section 601.5 and the Industry Partnership

Program shall be made available in the following order of

priority:

(1)  Counties of the sixth, seventh and eighth class.

(2)  Counties of the first, second, second A, third, fourth

and fifth class, provided that there are insufficient

applications for funding under paragraph (1) and to the extent

that funds remains available.

(d)  The department shall make funds available to eligible

entities for job training programs under subsection (b)(1) and

(2) as determined under subsection (e) based on a competitive

application process as determined by the department. In

distributing funding under this [section] subsection,

preferential consideration shall be given to those counties with

a higher unemployment rate. Distribution of funds shall be

determined by review of all applications submitted by eligible

entities within the time period authorized by the department.

(e)  Funding shall be made available under subsections (b)(1)

and (2) only for those entities identified in this section which

provide work force education programs and services. Eligible

entities shall include:

(1)  Employment and training program providers receiving

financial assistance from the Commonwealth or from other sources

of public funding.

(2)  Not-for-profit organizations offering publicly funded

employment training programs.

(3)  Career and technical institutes.

(4)  High schools with eight or more vocational education

programs.

(5)  Higher education institutions offering publicly funded

employment and training programs, including:

(i)  State-related institutions and their branch campuses.

(ii)  State-owned institutions within the State System of

Higher Education under Article XX-A of the act of March 10, 1949

(P.L.30, No.14), known as the "Public School Code of 1949."

(iii)  Community colleges established and operated under

Article XIX-A of the "Public School Code of 1949."

[(f)  The moneys in this 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.]

(g)  For purposes of this section, the term "State-related

institutions" shall include The Pennsylvania State University,

the University of Pittsburgh, Temple University, Lincoln

University and any other institution that is hereafter

designated as "State-related" by the Commonwealth.

Section 4.2.  The act is amended by adding a section to read:

Section 601.5.  On-the-Job Training Grant Program.--(a)

Subject to available funds, the department shall provide grants

to reimburse eligible employers for a portion of the cost of

providing on-the-job training to newly hired employes as

provided in this section.

(b)  Grants provided under this section shall be in an amount

equal to one-half of the weekly wage paid to a newly hired

employe for up to eight weeks of employment, up to a maximum

grant per employe of six thousand dollars ($6,000).

(c)  In order to be eligible to receive a grant under this

section, an employer shall continuously employ the newly hired

employe for a period of not less than six months at an hourly

rate of not less than twelve dollars ($12) per hour for not less

than thirty (30) hours per week.

(d)  For purposes of this section, the term "newly hired

employe" shall mean an employe who:

(1)  has received unemployment compensation benefits under

this act, or under the unemployment compensation law of any

other jurisdiction, within the twenty-four month period

immediately preceding the date of hire;

(2)  has not been employed by the employer requesting a grant

under this section within the twelve-month period immediately

preceding the date of hire; and

(3)  has not been employed for more than thirty (30) hours

per week at an hourly rate of twelve dollars ($12) per hour or

more during the four-week period immediately preceding the date

of hire.

(e)  The department shall allocate available funds under this

section to the local work force investment boards which shall be

responsible for initially determining which employers in each

local work force investment area are eligible to receive grants

under this section, subject to approval by the department.

(f)  The department may adopt such regulations as may be

necessary to implement this section.

Amend Bill, page 19, line 27, by striking out "4.1" and

inserting

 4.3

Amend Bill, page 38, line 12, by striking out "immediately."

and inserting

 as follows:

(1)  The following provisions shall take effect January

1, 2012, or immediately, whichever is later:

(i)  The amendment of section 301.4(a) and (b) of the

act.

(ii)  The amendment of section 301.7(b) of the act.

(iii)  The amendment of section 301.8(b) and (e) of

the act.

(iv)  The amendment of section 601.4 of the act.

(v)  The addition of section 601.5 of the act.

(2)  The remainder of this act shall take effect

immediately.