THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GROVE, AUMENT, BLOOM, BOYD, R. BROWN, CLYMER, COX, CREIGHTON, CUTLER, DUNBAR, GEIST, GINGRICH, HARRIS, HESS, KAUFFMAN, F. KELLER, KNOWLES, LAWRENCE, MAJOR, MILLARD, MOUL, MURT, PERRY, PICKETT, ROCK, SACCONE, SWANGER, VULAKOVICH AND DENLINGER, SEPTEMBER 19, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, MARCH 12, 2012   

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 records of and reports by employers, for

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contributions to be liens and entry and enforcement thereof,

for qualifications required to secure compensation, for

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certain agreements void and penalties, for false statements

and representations to obtain or increase compensation, for

false statements and representations to prevent or reduce

compensation and other offenses, for violation of act and

rules and regulations and for recovery and recoupment of

compensation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 4(w) of the act of December 5, 1936 (2nd

Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

Compensation Law, amended September 27, 1971 (P.L.460, No.108)

and December 5, 1974 (P.L.771, No.262), is 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.

* * *

(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.

* * *

Section 1.1.  Section 206 of the act, amended July 21, 1983

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(P.L.68, No.30) and November 17, 1995 (P.L.615, No.64), is

amended to read:

Section 206.  Records of and Reports by Employers.--(a)  Each

employer (whether or not liable for the payment of contributions

under this act) shall keep accurate employment records

containing such information, as may be prescribed by the rules

and regulations adopted by the department. Such records shall be

open to inspection by the department and its agents at any

reasonable time, and as often as may be deemed necessary, but

employers need not retain such records more than four (4) years

after contributions relating to such records have been paid. The

department may require from such employers such reports as it

deems necessary, which shall be sworn to, if required by the

department.

(b)  Information thus obtained shall not be made public or be

open to public inspection, other than to the members of the

board, the officers and employes of the department and other

public employes in the performance of their public duties, but

any employe or employer at a hearing on an appeal shall, upon

request, be supplied with information from such records to the

extent necessary for the proper presentation and consideration

of the appeal.

(c)  Any officer or employe of the department or the board,

or any other public employe, who shall violate any of the

provisions of this section shall, upon conviction thereof in a

summary proceeding, be sentenced to pay a fine of not less than

[twenty dollars ($20)] one hundred dollars ($100) nor more than

[two hundred dollars ($200)] three hundred dollars ($300) and in

default of the payment of such fine and cost of prosecution

shall be sentenced to imprisonment for not longer than thirty

(30) days.

(d)  Any employer who has been determined by the department

to be subject to the reporting provisions of this act and has

been so notified, and who neglects or refuses to file or to

complete in such manner as the department may prescribe either

the periodic report required by the department to establish the

amount of such contributions or the periodic report required by

the department showing the amount of wages paid to each employe,

or both, on or before the date such reports are required to be

filed, shall pay a penalty of [ten per centum (10%)] fifteen per

centum (15%) of the total amount of contributions paid or

payable by the employer or employe as the case may be for the

period: Provided, That such penalty shall be not less than

[twenty-five dollars ($25)] one hundred twenty-five dollars

($125) or more than [two hundred and fifty dollars ($250)] four

hundred fifty dollars ($450). Such penalty shall apply to the

reports for each period with respect to which such reports are

required to be filed: Provided, That such penalty shall not

apply to reports for any period with respect to which the last

day for filing such reports is prior to a date on which the

department has notified the employer that he has been determined

an employer subject to the reporting provisions of this act,

unless the reports for such prior periods are not filed within

thirty (30) days after the employer has been so notified. The

penalties provided by this section shall be in addition to all

other penalties provided for in this act.

Section 2.  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.

* * *

Section 3.  Section 401(f) of the act, amended December 9,

2002 (P.L.1330, No.156), is amended to read:

Section 401.  Qualifications Required to Secure

Compensation.--Compensation shall be payable to any employe who

is or becomes unemployed, and who--

* * *

(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.

* * *

Section 3.1.  Section 701 of the act is amended to read:

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Section 701.  Certain Agreements Void; Penalty.--No agreement

by an employe to waive, release, or commute his rights to

compensation, or any other rights under this act, shall be

valid. No agreement by an employe or by employes to pay all or

any portion of an employer's contributions, required under this

act from such employer, shall be valid. No employer shall,

directly or indirectly, make or require or accept any deduction

from the remuneration of individuals in his employ to finance

contributions required from him under this act, or require or

accept any waiver by an employe of any right hereunder. Any

employer or officer or agent of an employer who violates any

provision of this section shall be guilty of a misdemeanor, and,

upon conviction thereof, shall be sentenced for each offense to

pay a fine of not less than [one hundred dollars] five hundred

dollars nor more than [one thousand dollars] one thousand five

hundred dollars, or be imprisoned for not more than six months,

or both.

Section 4.  Section 801 of the act, amended December 9, 2002

(P.L.1336, No.158), is amended to read:

Section 801.  False Statements and Representations to Obtain

or Increase Compensation.--(a)  Whoever makes a false statement

or representation knowing it to be false, or knowingly fails to

disclose a material fact to obtain or increase any compensation

or other payment under this act or under an employment security

law of any other state or of the Federal Government or of a

foreign government, either for himself or for any other person,

shall upon conviction thereof in a summary proceeding, be

sentenced to pay a fine of not less than [one] five hundred

dollars nor more than [one thousand] fifteen hundred dollars, or

shall be sentenced to imprisonment for not longer than thirty

days, or both, and each such false statement or representation

or failure to disclose a material fact shall constitute a

separate offense. In addition to any other sanction, an

individual convicted under this subsection shall be ordered to

make restitution of the compensation to which the individual was

not entitled and of interest on that compensation in accordance

with section 804(a).

(b)  Whoever makes a false statement knowing it to be false,

or knowingly fails to disclose a material fact to obtain or

increase any compensation or other payment under this act or

under an employment security law of any other state or of the

Federal Government or of a foreign government, may be

disqualified in addition to such week or weeks of improper

payments for a penalty period of [two] ten weeks and for not

more than one additional week for each such week of improper

payment: Provided, That no additional weeks of disqualification

shall be imposed under this section if prosecution proceedings

have been instituted against the claimant because of such

misrepresentation or non-disclosure. The departmental

determination imposing penalty weeks under the provisions of

this subsection shall be subject to appeal in the manner

provided in this act for appeals from determinations of

compensation. The penalty weeks herein provided for shall be

imposed against any weeks with respect to which the claimant

would otherwise be eligible for compensation[, under the

provisions of this act, which begin within the four year period

following the end of the benefit year with respect to which the

improper payment or payments occurred].

(c)  Whoever makes a false statement knowing it to be false,

or knowingly fails to disclose a material fact to obtain or

increase any compensation or other payment under this act or

under an employment security law of the Federal Government, and

as a result receives compensation to which he is not entitled,

shall be liable to pay to the Unemployment Compensation Fund a

sum equal to fifteen percentum (15%) of the amount of such

compensation. The sum shall be collectible in the manner

provided in section 308.1 or 309 for the collection of past due

contributions and by any other means available under Federal or

State law. No administrative or legal proceeding for the

collection of such sum shall be instituted after the expiration

of twelve years following the end of the benefit year with

respect to which such sum was paid.

(d)  Subsection (b) shall be applied by substituting

fifty-two weeks for ten weeks and the prohibition in subsection

(b) on the imposition of penalty weeks if prosecution

proceedings have been instituted shall not apply in any of the

following circumstances:

(1)  An incarcerated individual makes a false statement

knowing it to be false, or knowingly fails to disclose a

material fact to obtain or increase any compensation or other

payment under this act, or under an employment security law of

the Federal Government for which he is ineligible under section

401(b) or 402.6.

(2)  An incarcerated individual knowingly provides

information or other means to another person whereby the other

person claims compensation in the name of the incarcerated

individual for which the incarcerated individual is ineligible

under section 401(d) or 402.6.

Section 5.  Section 802(a) of the act, amended June 15, 2005

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

Section 802.  False Statements and Representations to Prevent

or Reduce Compensation; Other Offenses.--(a)  Any employer

(whether or not liable for the payment of contributions under

this act) or any officer or agent of such employer or any other

person who does any of the following commits a summary offense

and shall, upon conviction, be sentenced to pay a fine of not

less than [one] five hundred dollars nor more than fifteen

hundred dollars or to imprisonment for not longer than thirty

days, or both:

(1)  makes a false statement or representation knowing it to

be false, or who knowingly fails to disclose a material fact to

prevent or reduce the payment of compensation to any employe

entitled thereto, or to avoid becoming or remaining subject

hereto, or to avoid or reduce any contribution or other payment

required from an employer under this act;

(2)  wilfully fails or refuses to make any such contribution

or other payment required hereunder;

(3)  wilfully fails or refuses to produce or permit the

inspection or copying of records as required hereunder;

(4)  wilfully fails or refuses to furnish any report required

by section 304 or 315 of this act or any other provision of this

act or the rules or regulations of the department; or

(5)  wilfully reports or attempts to report the wages of one

or more employes to the department on an unemployment

compensation account other than the account of the employer

under this act; or

(6)  wilfully advises, solicits, encourages or commands an

employer or an officer or agent of an employer or any other

person to engage in an act or omission that is an offense under

this section.

* * *

Section 6. Section 803 of the act, amended December 9, 2002

(P.L.1336, No.158), is amended to read:

Section 803.  Violation of Act and Rules and Regulations.--

Any person who shall wilfully violate any provision of this act

or any rule or regulation thereunder, the violation of which is

made unlawful, or the observance of which is required under the

terms of this act, and for which a penalty is neither prescribed

herein nor provided by any other applicable statute, shall, upon

conviction thereof in a summary proceeding, be sentenced to pay

a fine of not less than [one] five hundred dollars nor more than

[one thousand] fifteen hundred dollars or to imprisonment for

not longer than thirty days, or both. Each day such violation

continues shall be deemed to be a separate offense.

Section 7.  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, other than deduction from future

compensation, shall be instituted after the expiration of [six] 

twelve years following the end of the benefit year with respect

to which such sum was paid.

* * *

Section 8.  This act shall apply as follows:

(1)  The amendment of section 4(w) of the act shall apply

to applications for benefits filed as of a date that occurs

on or after the effective date of this section.

(2)  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 this

section and all liens filed on or after the effective date of

this section.

(3)  The amendment of section 401(f) of the act shall

apply to disqualifying separations that occur on or after the

effective date of this section.

(4)  The amendment of section 801(a) of the act shall

apply to offenses committed on or after the effective date of

this section.

(5)  The amendment or addition of section 801(b), (c) and

(d)(1) of the act shall apply to false statements and

failures to disclose that occur on or after the effective

date of this section.

(6)  The addition of section 801(d)(2) of the act shall

apply to information or other means provided on or after the

effective date of this section.

(7)  The amendment of sections 802(a) and 803 of the act

shall apply to offenses committed on or after the effective

date of this section.

(8)  The amendment of section 804(a) of the act shall

apply to benefit years that begin on or after the effective

date of this section.

Section 9.  This act shall take effect immediately.