THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GORDNER, PILEGGI, GREENLEAF, ERICKSON, VANCE AND RAFFERTY, OCTOBER 24, 2011

REFERRED TO LABOR AND INDUSTRY, OCTOBER 24, 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," further providing for

the definition of "wages," for determination of contribution

rate, for additional contribution for interest, for

collection of contribution and interest and injunctions, for

Interest Fund, for recovery and recoupment of compensation;

and providing for unemployment compensation solvency bonds

and for unemployment compensation amnesty program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 4(x)(1) and 301.1(e) of the act of

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

the Unemployment Compensation Law, amended 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.

* * *

(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 two hundred

fifty dollars ($8,250) for calendar year 2012, eight thousand

five hundred dollars ($8,500) for the 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 two hundred fifty dollars ($9,250) for calendar

year 2016, nine thousand five hundred dollars ($9,500) 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. 

* * *

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:

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 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 and

one-tenth per centum (1.1%) for calendar years 2012 through

2016, nine-tenths of one per centum (0.9%) for calendar year

2017 and seventy-five hundredths of one per centum (0.75%) for

calendar year 2018 and thereafter.

* * *

Section 2.  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.--(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 Fund established by section 601.2 of this act. Such

taxes will not be credited to the employer's reserve account.

(c)  [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%) to be

determined annually by the department [at a rate necessary to].

The rate of the Interest Factor for a calendar year shall be the

rate necessary to:

(1)  pay the bond obligations and bond administration

expenses under Article XIV of this act that are due in that

year; and

(2)  pay the interest on [outstanding] interest-bearing

advances under Title XII of the Social Security Act [for the

following calendar] that is due in that year.

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 in which bond obligations and bond

administration expenses under Article XIV of this act and

interest on advances under Title XII of the Social Security Act

are not due.

Section 3.  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 section and other sections of this act, the department may

collect contributions, interest, penalties and other liabilities

due under this act under the Internal Revenue Code of 1986 (26

U.S.C. § 6402 (Public Law 97-35)) and by any other means

available under Federal or State law.

Section 4.  Section 601.2 of the act, amended July 1, 1989

(P.L.107, No.22), is amended to read:

Section 601.2.  Interest Fund.--(a)  There is hereby

established a separate account in the State Treasury, to be

known as the Interest Fund. All taxes collected under section

301.6 of this act shall be paid into the Interest 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 payment of bond obligations and bond administrative

expenses under Article XIV of this act.

[(1)] (2)  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)] this section.

[(2)] (3)  For the payment of annual interest obligations

assessed under Title XII of the Social Security Act.

[(3)] (4) Repayment of outstanding interest-bearing advances

received under Title XII of the Social Security Act.

[(4)] (5)  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.

(e)  [Except as may be provided in subsections (f) and (g),

any] 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).] 601 if the

following requirements are met:

(1)  the balance of interest-bearing advances under Title XII

of the Social Security Act 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.

Section 5.  Section 804(a) and (b)(1) of the act, amended

July 10, 1980 (P.L.521, No.108) and October 1988 (P.L.818,

No.109), are 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.

(b)  (1)  Any person who other than by reason of his fault

has received with respect to a benefit year any sum as

compensation under this act to which he was not entitled shall

not be liable to repay such sum but shall be liable to have such

sum deducted from any future compensation payable to him with

respect to such benefit year, or the [three-year] six-year

period immediately following such benefit year: Provided, That

with respect to overpayments of one hundred dollars or more,

recoupment from such future compensation shall not exceed one-

third of the maximum benefit amount to which such person is

entitled during any such subsequent benefit year nor one-third

of the weekly benefit amount to which such person may be

entitled for any particular week. In the absence of

misrepresentation or non-disclosure of a material fact, no

recoupment shall be had if such overpayment is created by reason

of (i) a subsequent reversal of two decisions of eligibility

under the provisions of section five hundred one (e) of this

act, or (ii) the subsequent receipt of holiday pay, vacation pay

or the like of which the person had no knowledge, or (iii) a

subsequent determination that the person's base year wages were

not earned in employment as defined in this act. No provision of

this subsection shall be construed to prevent or prohibit the

voluntary repayment of compensation by such person or the

maintenance of records of overpayments by the department.

* * *

Section 6.  The act is amended by adding articles to read:

ARTICLE XIV

UNEMPLOYMENT COMPENSATION SOLVENCY 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:

"Account."  The Unemployment Compensation Security Account

established pursuant to this article.

"Authority."  The Pennsylvania Economic Development Financing

Authority created pursuant to the law.

"Bond."  Any type of revenue obligation, including a bond,

note, certificate or other instrument issued by the authority

for the benefit of the department under this article.

"Bond obligations."  The principal of a bond and any premium

and interest payable on a bond.

"Federal advances."  Loans by the Federal Government to the

Commonwealth for the payment of compensation, pursuant to

Article XII of the Social Security Act (42 U.S.C. § 1321 et

seq.) or any similar Federal law.

"Interest Fund."  The fund established under section 601.2.

"Law."  The act of August 23, 1967 (P.L.251, No.102), known

as the Economic Development Financing Law.

Section 1402.  Bond issuance.

(a)  Authority.--In addition to the projects and other uses

under section 6.3 of the law, the authority shall have the

authority to issue limited obligation revenue bonds as may be

necessary under this article.

(b)  Debt or liability.--Bonds issued under this section

shall not be a debt or liability of the Commonwealth and shall

not create or constitute any indebtedness, liability or

obligation of the Commonwealth. All bonds shall be payable

solely from revenues or funds pledged or available for their

repayment as authorized in this article including the proceeds

of any issue of bonds. Each bond shall contain on its face a

statement to the effect that the financing authority is

obligated to pay the principal thereof or the interest thereof

only from funds made available under this article, and that 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.--The department shall determine that the

issuance of bonds for the purposes established by this article

will result in a savings to the employers in this Commonwealth

as compared to the cost of borrowing or repayment by other

means.

(b)  Alternative.--If the department determines that the

issuance of bonds to obtain funds to repay previous Federal

advances, including interest, is a cost effective alternative to

repayment of the Federal advances and interest by other means,

the department may request the authority to issue bonds for its

benefit.

(c)  Terms.--The department shall specify in its request to

the authority the maximum principal amount of the bonds for any

separate bond issue, and the maximum term of the bonds, not to

exceed ten years. The total principal amount of bonds that the

department may request under this article for all bond issues

may not exceed $3,500,000,000.

(d)  Increase.--The maximum principal amount determined by

the department for a bond issue under subsection (c) may be

increased to include an amount sufficient to:

(1)  pay the authority's costs to issue the bonds; and

(2)  provide a bond reserve.

Section 1404.  Issuance of bonds by authority.

The authority shall issue bonds when requested to do so by

the department. The provisions of the law, unless otherwise

specified by this article, shall apply to bonds issued for the

purposes set forth under this article.

Section 1405.  Use of bond proceeds.

(a)  Deposit.--The proceeds of bonds and notes, except

refunding bonds and replacement notes, issued by the authority

shall be deposited in the account which shall be established in

the State Treasury as a restricted receipt account. The proceeds

shall be paid by the State Treasurer periodically to those

Commonwealth officers or Commonwealth agencies at the time

necessary to carry out the purpose of this article. The proceeds

of the sale of refunding bonds and replacement notes shall be

paid to the State Treasurer and applied to the payment of

principal, any accrued interest and premium and the cost of

redemption of the bonds and notes for which the obligations

shall have been issued.

(b)  Direction.--The department shall direct the use of

moneys in the fund to:

(1)  repay the principal and interest of previous Federal

advances; and

(2)  pay unemployment compensation benefits.

(c)  Investment.--Pending application for the purposes

authorized, money held or deposited by the State Treasurer 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 the funds shall be

paid into the State Treasury to the credit of the fund.

(d)  Appropriation.--There is appropriated to the State

Treasurer from the fund as much money as may be necessary for

all costs and expenses in connection with the issue of and sale

and registration of the bonds and notes.

Section 1406.  Payment of bond-related obligations.

(a)  Notification.--For each calendar year in which bond

obligations will be due, the authority shall notify the

department of the amount of bond obligations 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 Interest

Fund. The authority's calculation of the amount of bond

obligations that will be due is subject to verification by the

department.

(b)  Transfer.--Money in the Interest Fund that is needed to

pay bond obligations shall be transferred to the authority to

ensure timely payment of bond obligations, as specified in the

resolution adopted in connection with the bond issue or as

otherwise provided by the bond documents.

Section 1407.  Excess additional contributions.

The department may use additional contributions collected

pursuant to section 301.6 for any calendar year that exceeds the

amount of the bond obligations due in that year as follows:

(1)  to pay bond obligations due in the following year,

thereby reducing the amount of additional contributions under

section 301.6 that would be required in that year;

(2)  to redeem or purchase outstanding bonds; or

(3)  as provided in section 601.2(a)(2) through (e).

Section 1408.  No personal liability.

The members of the department and the authority and the

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 1409.  Expiration.

The authority to issue bonds under section 1404 shall expire

on December 31, 2016.

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 90-day period commencing 180 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 pursuant to 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 third quarter of 2011, 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 third quarter of 2011, 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 October 31,

2011.

(4)  Unpaid interest due on contributions paid late for

calendar quarters through the third quarter of 2011 or on

reimbursement that was due on or before October 31, 2011, and

was paid late.

(5)  Unpaid penalties due for reports filed late for

calendar quarters through the third quarter of 2011.

(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 March 31,

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 March

31, 2012, to the extent repayment has not occurred.

(3)  Compensation paid to a claimant for calendar weeks

through the week ending March 31, 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 March 31, 2012.

(c)  Mandatory exclusion.--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)  Optional exclusion.--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.

(a)  Payment.--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.

(a.1)  Unpaid contributions.--If an employer is seeking

amnesty with regard to unpaid contributions described in section

1503(a)(1) or (2):

(1)  The employer shall pay all of the unpaid

contributions and lien filing costs, if applicable, and one-

half of the interest and penalties due.

(2)  The department shall waive the remaining interest

and penalties due corresponding to the contributions.

(b)  Unpaid reimbursement.--If an employer is seeking amnesty

with regard to unpaid reimbursement described in section 1503(a)

(3):

(1)  The employer shall pay all of the unpaid

reimbursement and lien filing costs, if applicable, and one-

half of the interest due.

(2)  The department shall waive the remaining interest

due corresponding to the reimbursement.

(c)  Unpaid interest.--If an employer is seeking amnesty with

regard to unpaid interest described in section 1503(a)(4):

(1)  The employer shall pay all of the lien filing costs,

if applicable, and one-half of the unpaid interest due.

(2)  The department shall waive the remaining unpaid

interest due.

(d)  Unpaid penalties.--If an employer is seeking amnesty

with regard to unpaid penalties described in section 1503(a)(5):

(1)  The employer shall pay all of the lien filing costs,

if applicable, and one-half of the unpaid penalties due.

(2)  The department shall waive the remaining unpaid

penalties due.

(e)  Fault overpayment.--If a claimant is seeking amnesty

with regard to an overpayment described in section 1503(b)(1) or

(3):

(1)  The claimant shall pay the outstanding balance of

the overpayment and lien filing costs, if applicable, and

one-half of the interest due.

(2)  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.

(f)  Nonfault overpayment.--If a claimant is seeking amnesty

with regard to an overpayment described in section 1503(b)(2):

(1)  The claimant shall pay 67% of the outstanding

balance of the overpayment.

(2)  The department shall waive the remaining balance of

the overpayment.

(g)  Unpaid interest.--If a claimant is seeking amnesty with

regard to unpaid interest described in section 1503(b)(4):

(1)  The claimant shall pay all of the lien filing costs,

if applicable, and one-half of the interest due.

(2)  The department shall waive the remaining unpaid

interest due.

Section 1506.  Additional terms and conditions of amnesty.

(a)  Agreement.--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 prohibited.--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)  Proceedings permitted.--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)  Allowance.--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)  Refund or credit.--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)  Form and report.--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)  Guidelines.--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 first class 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 this

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 7.  This act shall apply as follows:

(1)  The amendment of section 301.6 of the act shall

apply to the calculation of the interest factor for calendar

year 2012 and every year thereafter.

(2)  The amendment of section 804 of the act shall apply

to benefit years that begin on or after the effective date of

that section.

Section 8.  This act shall take effect immediately.