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PRIOR PRINTER'S NO. 3925
PRINTER'S NO. 4065
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2375
Session of
2015
INTRODUCED BY GINGRICH, SEPTEMBER 26, 2016
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
OCTOBER 18, 2016
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 contributions by
employers and employees, further providing for contributions
by employees and for Service and Infrastructure Improvement
Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 301.4(e)(2) and 301.9 of the act of
December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
the Unemployment Compensation Law, amended or added July 2, 2013
(P.L.195, No.34), are amended to read:
Section 301.4. Contributions by Employes.--* * *
(e) Contributions paid under this section shall be allocated
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by the department among the Unemployment Compensation Fund, the
Reemployment Fund and the Service and Infrastructure Improvement
Fund as follows:
* * *
(2) During each calendar year from 2013 through [2016] 2017,
an amount determined by the secretary with the approval of the
Governor shall be deposited into the Service and Infrastructure
Improvement Fund. For calendar year 2013, the amount determined
under this clause may not exceed forty million dollars
($40,000,000). For calendar year 2014, the amount determined
under this clause may not exceed thirty million dollars
($30,000,000). For calendar years 2015 and 2016, the amount
determined under this clause for each calendar year may not
exceed one hundred ninety million dollars ($190,000,000)
adjusted by the increase in the Bureau of Labor Statistics
Consumer Price Index for the period from May 2013 through
January of the calendar year less the amount of Federal
administrative funding for the preceding Federal fiscal year.
For calendar year 2017, the amount determined under this clause
may not exceed forty-two million eight hundred thousand dollars
($42,800,000) FIFTY-SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS
($57,500,000) .
* * *
Section 301.9. Service and Infrastructure Improvement
Fund.--(a) There is established a restricted account in the
State Treasury to be known as the Service and Infrastructure
Improvement Fund.
(b) Moneys in the Service and Infrastructure Improvement
Fund shall consist of contributions deposited into the fund
pursuant to section 301.4(e)(2).
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(c) Moneys in the Service and Infrastructure Improvement
Fund are appropriated on a continuing basis, upon approval of
the Governor, to the department to be prioritized for the
following purposes:
(1) To improve the quality, efficiency and timeliness of
services provided by the service center system to individuals
claiming compensation under this act, including claim filing,
claim administration, adjudication services and staffing and
training of system employes.
(2) Expenditures for information management technology,
communications technology and other infrastructure components,
INCLUDING TECHNOLOGICAL UPGRADES TO THE DELIVERY SYSTEM FOR
UNEMPLOYMENT COMPENSATION BENEFITS, that the secretary
determines are likely to result in significant and lasting
improvements to the unemployment compensation system.
(3) To pay the costs of collecting the contributions
deposited into the Service and Infrastructure Improvement Fund
pursuant to section 301.4(e)(2).
(4) To reimburse the Auditor General for the audit required
by subsection (h).
(d) Consistent with the merit staffing requirement of
section 303(a)(1) of the Social Security Act (49 Stat. 620, 42
U.S.C. ยง 503(a)(1)), no moneys in the Service and Infrastructure
Improvement Fund may be expended or obligated to a third party
to perform unemployment compensation services of the department,
except services relating to technology and infrastructure
components deemed necessary by the secretary under subsection
(c)(2).
(e) Any moneys in the Service and Infrastructure Improvement
Fund that are not expended or obligated as of December 31,
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[2018] 2019, shall be transferred to the Unemployment
Compensation Fund under section 601.
(f) Moneys in the Service and Infrastructure Improvement
Fund shall not lapse at any time nor be transferred to any other
fund except as provided in subsection (e).
(g) No later than June 30 of each calendar year from 2014
through [2019] 2020, the department shall provide a report to
the Governor and the General Assembly, through the Secretary-
Parliamentarian of the Senate and the Chief Clerk of the House
of Representatives, regarding the Service and Infrastructure
Improvement Fund, which report shall include an accounting for
the contributions deposited into the fund, the expenditures and
transfers from the fund during the prior year and a description
of the purposes for which expenditures from the fund were made
in the prior year.
(h) The Auditor General shall conduct an audit of the
Service and Infrastructure Improvement Fund and provide a report
to the chairperson of the Labor and Industry Committee of the
Senate and the chairperson of the Labor and Industry Committee
of the House of Representatives no later than June 30, 2017. The
department shall cooperate fully with the Auditor General and
provide timely responses to requests for information or comment.
The department shall reimburse the Auditor General for the cost
of the audit from the Service and Infrastructure Improvement
Fund in an amount not to exceed three hundred thousand dollars
($300,000). The report required under this subsection shall
include:
(1) A description and accounting of expenditures made from
the Service and Infrastructure Improvement Fund for each
calendar year, including 2013, 2014, 2015 and 2016.
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(2) An evaluation of whether all funds were expended for the
purposes authorized by this section.
(3) An evaluation of the improvements and efficiencies
achieved as the result of expenditures for information
management technology, communications technology and other
infrastructure components.
(4) An estimate of the impacts to the unemployment
compensation system that are likely to occur if additional
funding for the Service and Infrastructure Improvement Fund is
not authorized by the General Assembly for calendar years after
2017.
(5) Recommendations on how the department can increase the
efficiency of the unemployment compensation system.
(6) Estimates of the amount of State funding that will be
necessary to operate the unemployment compensation system, if
the system is being operated in a reasonably efficient manner.
(7) Any other relevant information or recommendations, as
determined by the Auditor General.
(i) It is the intention of the General Assembly that funds
provided for the Service and Infrastructure Improvement Fund in
calendar year 2017 be utilized for the purpose of maintaining
the current service and infrastructure levels of the
unemployment compensation system, and that the General Assembly
would separately consider a funding request for the purpose of
making technological upgrades to the delivery system for
unemployment compensation benefits. Before February 15, 2017,
the department shall submit a funding request for technological
upgrades to the delivery system for unemployment compensation
benefits REPORT to the chairperson of the Labor and Industry
Committee of the Senate and the chairperson of the Labor and
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Industry Committee of the House of Representatives. THE REPORT
SHALL DESCRIBE THE DEPARTMENT'S PLAN TO ELIMINATE ITS RELIANCE
ON TRANSFERS TO THE SERVICE AND INFRASTRUCTURE IMPROVEMENT FUND
FOR RECURRING OPERATIONAL COSTS. THE REPORT SHALL BE ACCOMPANIED
BY A FUNDING REQUEST FOR TECHNOLOGICAL UPGRADES TO THE DELIVERY
SYSTEM FOR UNEMPLOYMENT COMPENSATION BENEFITS FOR CALENDAR YEARS
AFTER 2017. The request shall include:
(1) A detailed description of the project.
(2) An explanation of the improvements to the benefit
delivery system that will result from the project.
(3) The total estimated cost of implementing the project.
(4) The amount of time in years that will be necessary to
implement the project, and the cost of implementing the project
for each year.
(5) An estimate of the cost savings that will result from
implementing the project.
(6) Information on any proposal received or contract
executed for technological upgrades to the delivery system for
unemployment compensation benefits, if the information is
available to the public under the act of February 14, 2008
(P.L.6, No.3), known as the Right-to-Know Law.
Section 2. This act shall take effect in 60 days.
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