THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GERGELY, BELFANTI, DiGIROLAMO, McCALL, EACHUS, MANN, BARBIN, BRENNAN, BUXTON, CALTAGIRONE, CARROLL, CASORIO, CONKLIN, D. COSTA, DALLY, DePASQUALE, DERMODY, DeWEESE, DONATUCCI, FABRIZIO, FRANKEL, FREEMAN, GALLOWAY, GEORGE, GERBER, GIBBONS, GOODMAN, GRUCELA, HALUSKA, HARHAI, HARHART, HARKINS, HESS, HORNAMAN, JOSEPHS, W. KELLER, KORTZ, KOTIK, KULA, LENTZ, LONGIETTI, MANDERINO, McGEEHAN, MELIO, MILLER, MUNDY, MURPHY, MURT, M. O'BRIEN, OLIVER, PARKER, PASHINSKI, PAYTON, PRESTON, SANTARSIERO, SANTONI, SEIP, SHAPIRO, SIPTROTH, K. SMITH, SOLOBAY, STABACK, STURLA, R. TAYLOR, WALKO, WHITE, YOUNGBLOOD AND YUDICHAK, JUNE 24, 2009

REFERRED TO COMMITTEE ON LABOR RELATIONS, JUNE 24, 2009  

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 defining

"State 'on' indicator" and "State 'off' indicator"; and

further providing for total extended benefit amount.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 401-A(b) and (c) and 405-A of the act of

December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as

the Unemployment Compensation Law, amended October 22, 1981

(P.L.301, No.106), are amended to read:

Section 401-A.  Definitions.--As used in this article:

* * *

(b)  (1)  There is a "State 'on' indicator" for this State

for a week if the Secretary of Labor and Industry determines in

accordance with the regulations of the United States Secretary

of Labor, that for the period consisting of such week and the

immediately preceding twelve weeks, the rate of insured

unemployment (not seasonally adjusted) under this act:

[(1)] (i)  equaled or exceeded one hundred twenty per centum

of the average of such rates for the corresponding thirteen-week

period ending in each of the preceding two calendar years, and

[(2)] (ii)  equaled or exceeded five per centum: Provided,

That with respect to benefits for weeks of unemployment

beginning with the passage of this amendment but no earlier than

April 3, 1977, the determination of whether there has been a

State "on" or "off" indicator beginning or ending any extended

benefit period shall be made under this [subsection as if (i)

this subsection] paragraph as if (A) this paragraph did not

contain subparagraph [(1)] (i) thereof, and [(ii)] (B) the per

centum rate indicated in this [subparagraph] paragraph were six,

except that, notwithstanding any such provision of this

[subsection] paragraph, any week for which there would otherwise

be a State "on" indicator shall continue to be such a week and

shall not be determined to be a week for which there is a State

"off" indicator.

[(c)] (2)  There is a "State 'off' indicator" for this State

for a week if the Secretary of Labor and Industry determines in

accordance with the regulations of the United States Secretary

of Labor, that for the period consisting of such week and the

immediately preceding twelve weeks, the rate of insured

unemployment (not seasonally adjusted) under this act:

[(1)] (i)  was less than one hundred twenty per centum of the

average of such rates for the corresponding thirteen-week period

ending in each of the preceding two calendar years, or

[(2)] (ii)  was less than five per centum.

(3)  Notwithstanding the provisions of this subsection, any

week for which there would otherwise be a State "on" indicator

shall continue to be such a week and shall not be determined to

be a week for which there is a State "off" indicator.

(c)  (1)  There is a "State 'on' indicator" for this State

for a week if:

(i)  the average rate of total unemployment in this State,

seasonally adjusted, for the period consisting of the most

recent three months for which data for all states are published

before the close of such week equals or exceeds six and one-half

per centum; and

(ii)  the average rate of total unemployment in this State,

seasonally adjusted, for the three-month period referred to in

subparagraph (i) equals or exceeds one hundred ten per centum of

such average rate for either, or both, of the corresponding

three-month periods ending in the two preceding calendar years.

(2)  There is a State "off" indicator for this State for a

week if the requirements of paragraph (1)(i) or (ii) are not

satisfied.

(3)  This subsection shall be applicable only with respect to

weeks of unemployment for which one hundred per centum Federal

sharing of extended benefits is available under section 2005(a)

of the American Recovery and Reinvestment Act of 2009 (Public

Law 111-5, 123 Stat.115), without regard to the extension of

Federal sharing for certain claims as provided under section

2005(c) of the American Recovery and Reinvestment Act of 2009,

or under a subsequently enacted provision of Federal law.

(4)  Notwithstanding the provisions of this subsection, any

week for which there would otherwise be a State "on" indicator

shall continue to be such a week and shall not be determined to

be a week for which there is a State "off" indicator.

(5)  For purposes of this subsection, determinations of the

rate of total unemployment for any period, and of any seasonal

adjustment, shall be made by the United States Secretary of

Labor.

* * *

Section 405-A.  Total Extended Benefit Amount.--(a)  [The]

Except as provided in subsection (a.1), the total extended

benefit amount payable to any eligible individual with respect

to his applicable benefit year shall be the least of the amounts

determined under clauses (1), (2) or (3) and then such amount

shall be reduced by subsection (b):

(1)  fifty per centum of the total amount of regular benefits

(plus dependents' allowances) which were payable to him under

this act in his applicable benefit year;

(2)  thirteen times his weekly benefit amount which was

payable to him under this act for a week of total unemployment

in the applicable benefit year; or

(3)  thirty-nine times his weekly benefit amount (plus

dependents' allowances) which was payable to him under this act

for a week of total unemployment in the applicable benefit year,

reduced by the total amount of regular benefits which were paid

(or deemed paid) to him under this act with respect to the

benefit year.

(a.1)  (1)  Effective with respect to weeks in a high

unemployment period, subsection (a) shall be applied by

substituting:

(i)  "eighty per centum" for "fifty per centum" in subsection

(a)(1);

(ii)  "twenty" for "thirteen" in subsection (a)(2); and

(iii)  "forty-six" for "thirty-nine" in subsection (a)(3).

(2)  For purposes of paragraph (1), the term "high

unemployment period" means any period during which an extended

benefit period would be in effect if section 401-A(c)(1)(i) were

applied by substituting "eight per centum" for "six and one-half

per centum."

(b)  Notwithstanding any other provisions of this article, if

the benefit year of any individual ends within an extended

benefit period, the remaining balance of extended benefits that

such individual would, but for this section, be entitled to

receive in that extended benefit period, with respect to weeks

of unemployment beginning after the end of the benefit year,

shall be reduced (but not below zero) by the product of the

number of weeks for which the individual received trade

readjustment allowances within that benefit year, multiplied by

the individual's weekly benefit amount for extended benefits.

Section 2.  This act shall take effect immediately.