1Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
2P.L.2897, No.1), entitled "An act establishing a system of
3unemployment compensation to be administered by the
4Department of Labor and Industry and its existing and newly
5created agencies with personnel (with certain exceptions)
6selected on a civil service basis; requiring employers to
7keep records and make reports, and certain employers to pay
8contributions based on payrolls to provide moneys for the
9payment of compensation to certain unemployed persons;
10providing procedure and administrative details for the
11determination, payment and collection of such contributions
12and the payment of such compensation; providing for
13cooperation with the Federal Government and its agencies;
14creating certain special funds in the custody of the State
15Treasurer; and prescribing penalties," in compensation,
16further providing for eligibility of officers of corporation
17deemed to be self-employed persons.

18The General Assembly of the Commonwealth of Pennsylvania
19hereby enacts as follows:

20Section 1. Section 402.4(a) of the act of December 5, 1936
21(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
22Compensation Law, added July 21, 1983 (P.L.68, No.30), is
23amended to read:

24Section 402.4. Eligibility of Officers of a Corporation

1Deemed to be Self-Employed Persons.--(a) Notwithstanding any
2other provision of this act, an officer of a corporation who is
3deemed to be a self-employed person because he exercised a
4substantial degree of control over the corporation and who
5becomes unemployed [due to the fact that the corporation enters
6into involuntary bankruptcy proceedings under the provisions of
7Chapter 7, Title 11 of the United States Code] shall be entitled
8to receive unemployment compensation under this act[: Provided,
9That the wages paid to the officer of a corporation deemed to be
10a self-employed person were mandatorily subject to this act]
11unless the unemployment is the result of the sale or divestment 
12of ownership or voluntary termination of the business.

13* * *

14Section 2. This act shall take effect in 60 days.