Regular Session 2019-2020 House Bill 1537 P.N. 2812

SENATE AMENDED

PRIOR PRINTER'S NO. 1936

PRINTER'S NO. 2812

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1537

Session of

2019

INTRODUCED BY HARKINS, COX, SCHLOSSBERG, BIZZARRO, GROVE,

MILLARD, HILL-EVANS, MARKOSEK, DeLUCA, FREEMAN, GALLOWAY AND

T. DAVIS, MAY 30, 2019

SENATOR BARTOLOTTA, LABOR AND INDUSTRY, IN SENATE, AS AMENDED,

OCTOBER 29, 2019

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 ADMINISTRATION OF

ACT, FURTHER PROVIDING FOR RECORDS OF AND REPORTS BY

EMPLOYERS; in contributions by employers and employees,

further providing for contributions by employees.; IN

COMPENSATION, FURTHER PROVIDING FOR QUALIFICATIONS REQUIRED

TO SECURE COMPENSATION AND FOR RATE AND AMOUNT OF

COMPENSATION; IN DETERMINATION OF COMPENSATION, APPEALS,

REVIEWS AND PROCEDURE, FURTHER PROVIDING FOR DETERMINATION OF

COMPENSATION APPEALS AND FOR DECISION OF REFEREE AND FURTHER

APPEALS AND REVIEWS; AND, IN SHARED-WORK PROGRAM, FURTHER

PROVIDING FOR PARTICIPATING EMPLOYER RESPONSIBILITIES.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 301.4(h)(1), (2) and (3) of the act of

<--

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

the Unemployment Compensation Law, are amended and the

subsection is amended by adding a clause to read:

SECTION 1. SECTION 206(A) OF THE ACT OF DECEMBER 5, 1936

(2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS THE UNEMPLOYMENT

COMPENSATION LAW, 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)] SIX

(6) 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.

* * *

SECTION 2. SECTION 301.4(H)(1), (2) AND (3) OF THE ACT ARE

AMENDED AND THE SUBSECTION IS AMENDED BY ADDING A CLAUSE TO

READ:

Section 301.4. Contributions by Employes.--* * *

(h) In addition to the amounts allowed under subsection (e),

an amount determined by the secretary, with the approval of the

Governor, shall be deposited into the Service and Infrastructure

Improvement Fund for costs related to the procurement and

implementation of technological upgrades to the delivery system

for unemployment compensation benefits, consistent with costs

reported to the General Assembly under section 301.9(i)(3). The

20190HB1537PN2812 - 2 -

<--

following shall apply:

(1) For [costs incurred in] calendar year 2017, the amount

determined under this subsection may not exceed five million

dollars ($5,000,000). For [costs incurred in] calendar year

2018, the amount determined under this subsection may not exceed

seven million two hundred thousand dollars ($7,200,000). [For

costs incurred in calendar year 2019, the amount determined

under this subsection may not exceed twelve million one hundred

thousand dollars ($12,100,000). For costs incurred in calendar

year 2020, the amount determined under this subsection may not

exceed five million nine hundred thousand dollars ($5,900,000).]

For calendar years 2019 and 2020, the combined total amount

determined under this subsection for both years may not exceed

eighteen million dollars ($18,000,000).

(2) [Beginning January 1, 2018, the department may deposit

into the Service and Infrastructure Improvement Fund an amount

authorized by this subsection for actual costs incurred during

calendar year 2017. Each quarter thereafter, the department may

deposit an amount equal to actual costs incurred in the prior

quarter, subject to the annual limits in clause (1).] Subject to

the limitation under clause (1), the secretary may deposit funds

into the Service and Infrastructure Improvement Fund in

accordance with the following:

(i) Within thirty (30) days after the effective date of this

subclause, an amount authorized by this subsection for actual

costs incurred prior to the effective date of this subclause,

for which deposits had not been made, including the amount of

funds withheld to ensure the performance of the contractor

responsible for the implementation of the technological

upgrades.

20190HB1537PN2812 - 3 -

(ii) Each quarter after the period under subclause (i), an

amount authorized by this subsection for actual costs incurred

in the prior quarter, including the amount of funds withheld to

ensure the performance of the contractor responsible for the

implementation of the technological upgrades.

(iii) No later than December 31, 2020, an amount authorized

by this subsection for future costs that the department

anticipates it will incur for implementation of the

technological upgrades to the delivery system.

(2.1) Funds authorized by this subsection shall only be

disbursed to the contractor when the department determines that

the appropriate contract benchmarks have been met.

(3) Prior to each deposit of funds under this subsection the

secretary shall certify to the Governor [that]:

(i) that the progress of the implementation and deployment

of technological upgrades to the delivery system for

unemployment compensation benefits is consistent with the

progress benchmarks provided in each relevant contract;

(ii) that the total cost of the technological upgrades will

not exceed the total amount of contract costs reported to the

General Assembly under section 301.9(i)(3); [and]

(iii) that the Benefit Modernization Advisory Committee

established under clause (6) has been regularly consulted with

regard to the implementation and deployment of the technological

upgrades[.]; and

(iv) the amount of funds withheld, if any, to ensure the

performance of the contractor responsible for the implementation

of the technological upgrades, the anticipated timeline for

disbursal of these funds and the anticipated date of the

completion of the implementation and deployment of the

20190HB1537PN2812 - 4 -

technological upgrades.

* * *

SECTION 3. SECTION 401(A)(2) OF THE ACT 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--

(A) SATISFIES BOTH OF THE FOLLOWING REQUIREMENTS:

* * *

(2) EXCEPT AS PROVIDED IN SECTION 404(A)(3) AND [(E)(1) AND

(2)] (E)(2)(V), NOT LESS THAN THIRTY-SEVEN PER CENTUM (37%) OF

THE EMPLOYE'S TOTAL BASE YEAR WAGES HAVE BEEN PAID IN ONE OR

MORE QUARTERS, OTHER THAN THE HIGHEST QUARTER IN SUCH EMPLOYE'S

BASE YEAR.

* * *

SECTION 4. SECTION 404(E)(2)(I)(B)(I) AND (IV)(A) AND (C) OF

THE ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A

PARAGRAPH TO READ:

SECTION 404. RATE AND AMOUNT OF COMPENSATION.--COMPENSATION

SHALL BE PAID TO EACH ELIGIBLE EMPLOYE IN ACCORDANCE WITH THE

FOLLOWING PROVISIONS OF THIS SECTION EXCEPT THAT COMPENSATION

PAYABLE WITH RESPECT TO WEEKS ENDING IN BENEFIT YEARS WHICH

BEGIN PRIOR TO THE FIRST DAY OF JANUARY 1989 SHALL BE PAID ON

THE BASIS OF THE PROVISIONS OF THIS SECTION IN EFFECT AT THE

BEGINNING OF SUCH BENEFIT YEARS.

* * *

(E) * * *

(2) (I) THE TABLE SPECIFIED FOR THE DETERMINATION OF RATE

AND AMOUNT OF BENEFITS SHALL BE EXTENDED OR CONTRACTED ANNUALLY,

AUTOMATICALLY BY REGULATIONS PROMULGATED BY THE SECRETARY. THE

TABLE SHALL BE EXTENDED OR CONTRACTED IN ACCORDANCE WITH THE

20190HB1537PN2812 - 5 -

<--

FOLLOWING:

* * *

(B) WHEN IT IS NECESSARY TO EXTEND THE TABLE, IT SHALL BE

DONE IN ACCORDANCE WITH THE FOLLOWING PROCEDURE:

(I) THE WORDS "OR MORE" SHALL BE DELETED FROM THE LAST LINE

UNDER PART A, AND AN AMOUNT TWENTY-FOUR DOLLARS ($24) GREATER

THAN THE FIRST ENTRY IN THAT LINE SHALL BE SUBSTITUTED THEREFOR.

THE WORDS "AMOUNT REQUIRED UNDER SECTION 401(A)(2)" SHALL BE

DELETED FROM THE LAST LINE UNDER PART C.

* * *

(IV) PART C SHALL BE EXTENDED TO THE POINT WHERE, UNDER PART

B, THE AMOUNT IS EQUAL TO SIXTY-SIX AND TWO-THIRDS PER CENTUM

(66 2/3%) OF THE AVERAGE WEEKLY WAGE.

(A) THE AMOUNT ON EACH LINE IN PART C, OTHER THAN THE LAST

LINE, SHALL BE DERIVED FROM THE FIRST ENTRY ON THE SAME LINE IN

PART A, IN ACCORDANCE WITH THE FOLLOWING FORMULA:

(FIRST ENTRY IN PART A PLUS TWENTY-FOUR DOLLARS ($24)) X 100

DIVIDED BY SIXTY-THREE (63)

IF THE AMOUNT DETERMINED BY THIS FORMULA IS NOT AN EVEN

MULTIPLE OF ONE DOLLAR ($1), IT SHALL BE ROUNDED TO THE NEXT

HIGHER MULTIPLE OF ONE DOLLAR ($1).

(B.1) THE LAST LINE IN PART C SHALL CONTAIN THE WORDS

"AMOUNT REQUIRED UNDER SECTION 401(A)(2)."

DONE BY DELETING ALL LINES FOLLOWING THAT IN WHICH THE AMOUNT IN

PART B IS SIXTY-SIX AND TWO-THIRDS PER CENTUM (66 2/3%) OF THE

AVERAGE WEEKLY WAGE AND SUBSTITUTING THE WORDS "OR MORE" FOR THE

HIGHER AMOUNT UNDER PART A ON THAT LINE AND SUBSTITUTING THE

WORDS "AMOUNT REQUIRED UNDER SECTION 401(A)(2)" FOR THE AMOUNT

UNDER PART C ON THAT LINE.

20190HB1537PN2812 - 6 -

* * *

SECTION 5. SECTION 501(C)(4) AND (5) AND (E) OF THE ACT ARE

AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO

READ:

SECTION 501. DETERMINATION OF COMPENSATION APPEALS.--* * *

(4) IF AN EMPLOYER FILES WITH THE DEPARTMENT SUCH

INFORMATION [WITHIN] NO LATER THAN FIFTEEN DAYS AFTER THE

"DETERMINATION DATE" PROVIDED ON THE NOTICE REQUIRED UNDER

SECTION FIVE HUNDRED ONE (A) OR THE "NOTICE DATE" PROVIDED ON

THE NOTICE REQUIRED UNDER SECTION FIVE HUNDRED ONE (B) [WAS

DELIVERED TO HIM PERSONALLY, OR WAS MAILED TO HIS LAST KNOWN

POST OFFICE ADDRESS], THE DEPARTMENT SHALL ISSUE TO SUCH

EMPLOYER (I) A NOTICE IN WRITING OF ITS DETERMINATION WITH

RESPECT TO EACH CLAIM WHICH IS FILED BY THE CLAIMANT FOR A WEEK,

THE FIRST DAY OF WHICH IS ON OR BEFORE THE DATE ON WHICH SUCH

INFORMATION IS FILED, AND (II) A NOTICE IN WRITING OF ITS

DETERMINATION WITH RESPECT TO THE FIRST VALID CLAIM WHICH IS

FILED BY THE CLAIMANT DURING THE CLAIMANT'S BENEFIT YEAR FOR A

WEEK, THE LAST DAY OF WHICH IS SUBSEQUENT TO THE DATE ON WHICH

SUCH INFORMATION IS FILED.

(5) IF AN EMPLOYER FILES WITH THE DEPARTMENT SUCH

INFORMATION MORE THAN FIFTEEN DAYS AFTER THE "DETERMINATION

DATE" PROVIDED ON THE NOTICE REQUIRED UNDER SECTION FIVE HUNDRED

ONE (A) OR THE "NOTICE DATE" PROVIDED ON THE NOTICE REQUIRED

UNDER SECTION FIVE HUNDRED ONE (B) [WAS DELIVERED TO HIM

PERSONALLY, OR WAS MAILED TO HIS LAST KNOWN POST OFFICE

ADDRESS], THE DEPARTMENT SHALL ONLY ISSUE TO SUCH EMPLOYER (I) A

NOTICE IN WRITING OF ITS DETERMINATION WITH RESPECT TO EACH

CLAIM WHICH IS FILED BY THE CLAIMANT FOR A WEEK, THE FIRST DAY

20190HB1537PN2812 - 7 -

OF WHICH IS WITHIN THE THIRTY-DAY PERIOD WHICH IMMEDIATELY

PRECEDES THE DATE ON WHICH SUCH INFORMATION IS FILED, AND (II) A

NOTICE IN WRITING OF ITS DETERMINATION WITH RESPECT TO THE FIRST

VALID CLAIM WHICH IS FILED BY THE CLAIMANT DURING THE CLAIMANT'S

BENEFIT YEAR FOR A WEEK, THE LAST DAY OF WHICH IS SUBSEQUENT TO

THE DATE ON WHICH SUCH INFORMATION IS FILED.

* * *

(E) UNLESS THE CLAIMANT OR LAST EMPLOYER OR BASE-YEAR

EMPLOYER OF THE CLAIMANT FILES AN APPEAL WITH THE BOARD, FROM

THE DETERMINATION CONTAINED IN ANY NOTICE REQUIRED TO BE

FURNISHED BY THE DEPARTMENT UNDER SECTION FIVE HUNDRED AND ONE

(A), (C) AND (D), [WITHIN] NO LATER THAN FIFTEEN CALENDAR DAYS

AFTER THE "DETERMINATION DATE" PROVIDED ON SUCH NOTICE [WAS

DELIVERED TO HIM PERSONALLY, OR WAS MAILED TO HIS LAST KNOWN

POST OFFICE ADDRESS], AND APPLIES FOR A HEARING, SUCH

DETERMINATION OF THE DEPARTMENT, WITH RESPECT TO THE PARTICULAR

FACTS SET FORTH IN SUCH NOTICE, SHALL BE FINAL AND COMPENSATION

SHALL BE PAID OR DENIED IN ACCORDANCE THEREWITH.

(F) A NOTICE OR A DETERMINATION TO A CLAIMANT OR EMPLOYER

UNDER THIS SECTION SHALL BE MAILED TO HIS LAST KNOWN POST OFFICE

ADDRESS OR TRANSMITTED ELECTRONICALLY, AS DESIGNATED BY THE

RECIPIENT.

SECTION 6. SECTIONS 502 AND 1307(A) OF THE ACT ARE AMENDED

TO READ:

SECTION 502. DECISION OF REFEREE; FURTHER APPEALS AND

REVIEWS.--WHERE AN APPEAL FROM THE DETERMINATION OR REVISED

DETERMINATION, AS THE CASE MAY BE, OF THE DEPARTMENT IS TAKEN, A

REFEREE SHALL, AFTER AFFORDING THE PARTIES AND THE DEPARTMENT

REASONABLE OPPORTUNITY FOR A FAIR HEARING, AFFIRM, MODIFY, OR

REVERSE SUCH FINDINGS OF FACT AND THE DETERMINATION OR REVISED

20190HB1537PN2812 - 8 -

DETERMINATION, AS THE CASE MAY BE, OF THE DEPARTMENT AS TO HIM

SHALL APPEAR JUST AND PROPER. THE PARTIES AND THEIR ATTORNEYS OR

OTHER REPRESENTATIVES OF RECORD AND THE DEPARTMENT SHALL BE DULY

NOTIFIED OF THE TIME AND PLACE OF A REFEREE'S HEARING AND OF THE

REFEREE'S DECISION, AND THE REASONS THEREFOR, WHICH SHALL BE

DEEMED THE FINAL DECISION OF THE BOARD, UNLESS AN APPEAL IS

FILED THEREFROM, [WITHIN] NO LATER THAN FIFTEEN DAYS AFTER THE

[DATE OF] "DECISION DATE" PROVIDED ON SUCH DECISION OR THE BOARD

ACTS ON ITS OWN MOTION, TO REVIEW THE DECISION OF THE REFEREE.

THE TESTIMONY AT ANY HEARING BEFORE A REFEREE SHALL BE TAKEN BY

A RECORDING DEVICE AND BE PRESERVED FOR A PERIOD OF NINETY DAYS

FOLLOWING EXPIRATION OF THE PERIOD FOR FILING AN APPEAL FROM THE

FINAL DECISION RENDERED IN THE CASE. AN UNABRIDGED TRANSCRIPT

AND AUDIO RECORDING OF THE TESTIMONY SHALL BE MADE AVAILABLE, AT

COST IF NOT USED FOR UNEMPLOYMENT COMPENSATION PURPOSES OR A

SUBSEQUENT APPEAL, TO THE PARTIES AND THEIR ATTORNEYS OR OTHER

REPRESENTATIVES UPON WRITTEN REQUEST TO THE REFEREE. A DECISION

TO A PARTY UNDER THIS SECTION SHALL BE MAILED TO HIS LAST KNOWN

POST OFFICE ADDRESS OR TRANSMITTED ELECTRONICALLY, AS DESIGNATED

BY THE PARTY.

SECTION 1307. PARTICIPATING EMPLOYER RESPONSIBILITIES.

(A) FILING CLAIMS.--THE DEPARTMENT SHALL ESTABLISH A

SCHEDULE [OF CONSECUTIVE TWO-WEEK PERIODS] CONSISTENT WITH THE

RULES AND REGULATIONS OF THE DEPARTMENT WITHIN THE EFFECTIVE

PERIOD OF THE SHARED-WORK PLAN. [THE DEPARTMENT MAY, AS

NECESSARY, INCLUDE ONE-WEEK PERIODS IN THE SCHEDULE AND REVISE

THE SCHEDULE.] AT THE END OF EACH SCHEDULED PERIOD, THE

PARTICIPATING EMPLOYER SHALL FILE CLAIMS FOR COMPENSATION FOR

THE WEEK OR WEEKS WITHIN THE PERIOD ON BEHALF OF THE

PARTICIPATING EMPLOYEES. THE CLAIMS SHALL BE FILED NO LATER THAN

20190HB1537PN2812 - 9 -

THE LAST DAY OF THE WEEK IMMEDIATELY FOLLOWING THE PERIOD,

UNLESS AN EXTENSION OF TIME IS GRANTED BY THE DEPARTMENT FOR

GOOD CAUSE. THE CLAIMS SHALL BE FILED IN THE MANNER PRESCRIBED

BY THE DEPARTMENT AND SHALL CONTAIN ALL INFORMATION REQUIRED BY

THE DEPARTMENT TO DETERMINE THE ELIGIBILITY OF THE PARTICIPATING

EMPLOYEES FOR COMPENSATION.

* * *

SECTION 7. THE SECRETARY OF LABOR AND INDUSTRY SHALL

TRANSMIT NOTICE TO THE LEGISLATIVE REFERENCE BUREAU FOR

PUBLICATION IN THE PENNSYLVANIA BULLETIN WITHIN 30 DAYS OF

COMPLETION OF IMPLEMENTATION OF THE TECHNOLOGICAL UPGRADES TO

THE DELIVERY SYSTEM FOR UNEMPLOYMENT COMPENSATION BENEFITS.

SECTION 8. THE ADDITION OF SECTIONS 501, 502 AND 1307 OF THE

ACT SHALL APPLY TO BENEFIT YEARS THAT BEGIN ON OR AFTER THE

PUBLICATION OF THE NOTICE REQUIRED UNDER SECTION 7.

Section 2 9. This act shall take effect immediately. AS

FOLLOWS:

(1) THE AMENDMENT OF SECTION 301.4 OF THE ACT, SECTIONS

7 AND 8 OF THIS ACT AND THIS SECTION SHALL TAKE EFFECT

IMMEDIATELY.

(2) THE AMENDMENT OF SECTIONS 501, 502 AND 1307 OF THE

ACT SHALL TAKE EFFECT UPON PUBLICATION OF THE NOTICE UNDER

SECTION 7 OF THIS ACT.

(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JANUARY

1, 2020, OR IMMEDIATELY, WHICHEVER IS LATER.

20190HB1537PN2812 - 10 -

<--