THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY D. COSTA, MATZIE, CARROLL, DeLUCA, FABRIZIO, HALUSKA, KULA, M. O'BRIEN, THOMAS, VULAKOVICH AND KOTIK, MAY 25, 2011

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MAY 25, 2011  

AN ACT

Amending the act of December 5, 1936 (2nd Sp.Sess., 1937

P.L.2897, No.1), entitled "An act establishing a system of

unemployment compensation to be administered by the

Department of Labor and Industry and its existing and newly

created agencies with personnel (with certain exceptions)

selected on a civil service basis; requiring employers to

keep records and make reports, and certain employers to pay

contributions based on payrolls to provide moneys for the

payment of compensation to certain unemployed persons;

providing procedure and administrative details for the

determination, payment and collection of such contributions

and the payment of such compensation; providing for

cooperation with the Federal Government and its agencies;

creating certain special funds in the custody of the State

Treasurer; and prescribing penalties," in penalty provisions,

further providing for recovery and recoupment of

compensation; and providing for an amnesty program for

selected violations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 804(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 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] twenty (20) years following the end of the

benefit year with respect to which such sum was paid.

* * *

Section 2.  The act is amended by adding an article to read:

ARTICLE VIII-A

OUTSTANDING OVERDRAFT CLAIMANT AND

DELINQUENT EMPLOYER AMNESTY PROGRAM

Section 801-A.  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 from April 23, 2012, through

June 15, 2012, inclusive.

"Delinquent contribution or other payment."  A monetary

amount owed to the Department of Labor and Industry by a

delinquent employer found to have violated section 802(a)(2).

"Delinquent employer."  An employer or an officer or agent of

such employer found to have violated section 802(a)(2).

"Outstanding overdraft claimant."  A person who owes the

Department of Labor and Industry funds, fees, fines, interest

and penalties stemming from an overdraft in violation of section

801 for a period in excess of six years.

"Overdrafted funds."  A monetary amount overpaid by the

Department of Labor and Industry to a claimant who made a false

statement or representation knowing it to be false or who

knowingly failed to disclose a material fact to obtain or

increase compensation or other payment from the Department of

Labor and Industry in violation of section 801.

"Program."  The Outstanding Overdraft Claimant and Delinquent

Employer Amnesty Program established under this article.

Section 802-A.  Outstanding Overdraft Claimant and Delinquent

Employer Amnesty Program.

(a)  Establishment.--The Outstanding Overdraft Claimant and

Delinquent Employer Amnesty Program is established and shall be

administered by the department.

(b)  Applicability.--The program shall apply to:

(1)  A person who, having been found to have violated

section 801, owes the department for overdrafted funds from

the Unemployment Compensation Fund as well as any fines,

fees, penalties and interest accrued under section 801.

(2)  A delinquent employer who, having been found to have

violated section 802(a)(2) between January 1, 2005, and

January 1, 2010, owes the department for delinquent

contributions or other payments required by this act as well

as any fines, fees, penalties and interest stemming from the

violation.

(c)  Future program participation.--A person who participates

in the program shall not be eligible to participate in any

future outstanding overdraft claimant and delinquent employer

amnesty program.

Section 803-A.  Required payment.

(a)  Conditions.--All outstanding overdraft claimants and

delinquent employers who participate in the program shall comply

with the following:

(1)  During the amnesty period, they shall file an

amnesty form as provided by the department that contains such

information as the department shall require. An amnesty form

shall be considered timely filed if it is postmarked or

electronically or otherwise submitted in a form acceptable to

the department during the amnesty period.

(2)  During the amnesty period, they shall make payment

of all owed overdrafted funds or delinquent contributions or

other payments and one-half of the interest due to the

department. The outstanding overdraft claimant or delinquent

employer shall not be required to pay any fine, fee or

penalty applicable to the overdraft or delinquency in

violation of section 801 or 802(a)(2), respectively.

(b)  Prohibitions.--The department may not:

(1)  Collect the penalties or interest waived under

subsection (a)(2).

(2)  Except as otherwise provided in this article, pursue

any administrative or judicial proceeding relating to the

overdrafted funds or delinquent contribution or other payment

against an outstanding overdraft claimant or delinquent

employer who has satisfied completely the requirements

outlined in subsection (a) as to the overdrafted funds or

delinquent contribution or other payment.

(c)  Financial hardship.--An outstanding overdraft claimant

otherwise eligible for amnesty, who certifies on an amnesty form

that making payment of the full amount for which amnesty is

sought at the time of submission of the form is made would

create severe financial hardship for the claimant, shall retain

eligibility for amnesty if:

(1)  Fifty percent or more of the amount due as computed

is paid with the amnesty return or within the amnesty period.

(2)  The balance due, including interest under subsection

(a)(2), is paid, in no more than two installments on or

before the end of the amnesty period.

Section 804-A.  Amnesty contingent on continued compliance.

Notwithstanding any other provision of this article, the

department may assess and collect from an outstanding overdraft

claimant or delinquent employer all penalties and interest

waived through the program if the claimant or employer is found

to have violated section 801 or 802(a)(2) at any point after

June 15, 2012.

Section 805-A.  Previously paid fees, fines, penalties and

interest.

No refund or credit shall be allowed for any fees, fines,

penalties or interest stemming from a violation of section 801

or 802(a)(2) paid to the department prior to the amnesty period.

Section 806-A.  Undisclosed outstanding overdrafts.

Nothing in this article shall be construed to prohibit the

department from instituting administrative or legal proceedings

against any outstanding overdraft claimant or delinquent

employer with respect to any overdrafts or delinquent

contributions or other payments occurring before the amnesty

period but not yet disclosed. Amnesty shall only be granted for

outstanding overdrafts that have been disclosed by the

department prior to the amnesty period.

Section 807-A.  Duties of department.

(a)  Guidelines.--The department shall develop guidelines to

implement the provisions of this article. The guidelines shall

be published in the Pennsylvania Bulletin within 60 days of the

effective date of this section and shall contain, but not be

limited to, the following information:

(1)  An explanation of the program and the requirements

for eligibility for the program.

(2)  The dates during which an amnesty form may be filed.

(3)  A specimen copy of the amnesty form.

(b)  Notification.--

(1)  The department shall notify in writing all known

outstanding overdraft claimants and delinquent employers at

the claimants' or employers' last known addresses of the

existence of and their eligibility for the program. The sole

purpose of the letter sent by the department to the claimants

and employers shall be notification of the program and the

claimants' and employers' eligibility.

(2)  The notification shall include an up-to-date total

of all overdrafted funds, fees, fines, penalties and interest

or delinquent contribution or other payment and related

fines, fees, penalties and interest and the total expected to

be collected under the program.

(c)  Reports.--The department shall issue reports to the

General Assembly detailing program implementation. The reports

shall contain the following information:

(1)  Within 30 days after the end of the amnesty period:

(i)  A detailed breakdown of the department's

administrative costs in implementing the program.

(ii)  The total dollar amount of revenue collected by

the program.

(2)  Within 180 days after the end of the amnesty period:

(i)  The number of amnesty forms filed and a

breakdown of the number and dollar amount of revenue

raised by calendar year during which the overdraft

occurred.

(ii)  The total dollar amount of penalties and

interest waived under the program.

(iii)  The demographic characteristics of

participants in the program.

Section 808-A.  Method of payment.

All payments under the program shall be made by certified

check, money order, electronic transfer, credit card, cash or

its equivalent.

Section 809-A.  Use of revenue.

All revenue collected under this article shall be deposited

in the Unemployment Compensation Fund.

Section 3.  This act shall take effect in 60 days.