Regular Session 2021-2022 House Bill 0508 P.N. 1749

PRIOR PRINTER'S NO. 1562

PRINTER'S NO. 1749

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

508

Session of

2021

INTRODUCED BY COX, CAUSER, DAVANZO, DIAMOND, ECKER, GREGORY,

HAMM, HELM, HERSHEY, IRVIN, KAUFFMAN, KLUNK, R. MACKENZIE,

MALONEY, MENTZER, MILLARD, MOUL, E. NELSON, OWLETT, RYAN,

SAYLOR, ZIMMERMAN, GLEIM, BOROWICZ, GILLEN, WHEELAND, ROWE

AND ROAE, MAY 19, 2021

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

JUNE 9, 2021

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," establishing the Back-

to-Work Bonus Program; and making an appropriation.

WHEREAS, The COVID-19 pandemic and Federal and State efforts

to mitigate the pandemic resulted in extraordinary levels of

unemployment in this Commonwealth and across the United States

during 2020; and

WHEREAS, The Congress of the United States enacted several

programs to support unemployed Americans during the pandemic,

which provide for enhancements of weekly benefits, extensions of

weekly benefits and weekly unemployment benefits for claimants

who would not otherwise be eligible for State unemployment

benefits; and

WHEREAS, The Congress of the United States has extended the

duration of these programs on multiple occasions; and

WHEREAS, These programs, which currently extend through the

week ending September 4, 2021, provide claimants with an

incentive to remain unemployed by effectively paying them to not

work; and

WHEREAS, The Department of Health reported that, as of May 9,

2021, 3,871,294 vaccinations for COVID-19 have been fully

administered, 5,320,563 vaccinations have been partially

administered and more than 1 million Pennsylvanians have

recovered from COVID-19 with natural immunity; and

WHEREAS, The danger to the public from COVID-19 is rapidly

diminishing, and mitigation efforts and restrictions on economic

activity have been steadily lifted, allowing businesses to re-

engage in commerce; and

WHEREAS, Businesses of all types in this Commonwealth have

encountered a shortage of workers, which puts Pennsylvania's

economic recovery at risk; and

WHEREAS, Generous, long-lasting benefits from Federal

unemployment programs are, among other factors, a significant

part of the reason many workers are reluctant to seek

employment; and

WHEREAS, Legislation should be enacted to:

(1) Phase out Pennsylvania's participation in Federal

unemployment programs that incentivize workers to remain

unemployed.

(2) Utilize money from the Federal COVID-19 relief funds

20210HB0508PN1749 - 2 -

provided to Pennsylvania to provide up to two $300 bonus

payments to provide an additional incentive for unemployed

workers to promptly discontinue their unemployment claims and

seek and maintain employment.; AND

WHEREAS, THE HOUSE OF REPRESENTATIVES URGES THE PRESIDENT OF

THE UNITED STATES, CONGRESS OF THE UNITED STATES AND UNITED

STATES DEPARTMENT OF LABOR TO AUTHORIZE THE FUNDS USED TO

REIMBURSE THE COMMONWEALTH FOR THE PAYMENT OF BENEFITS UNDER

SECTION 2104 OF THE CARES ACT TO BE USED BY THE COMMONWEALTH TO

INCENTIVIZE WORKERS TO RETURN TO WORK THROUGH THE BACK-TO-WORK

BONUS PROGRAM.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of December 5, 1936 (2nd Sp.Sess., 1937

P.L.2897, No.1), known as the Unemployment Compensation Law, is

amended by adding an article to read:

ARTICLE XVII

BACK-TO-WORK BONUS PROGRAM

Section 1701. Legislative intent.

It is the intent of the General Assembly in enacting this

article to:

(1) Phase out Pennsylvania's participation in Federal

unemployment programs that incentivize workers to remain

unemployed.

(2) Utilize money from the Federal COVID-19 relief funds

provided to Pennsylvania to provide up to two $300 bonus

payments to provide an additional incentive for unemployed

workers to promptly discontinue their unemployment claims and

to seek and maintain employment.

Section 1702. Definitions.

20210HB0508PN1749 - 3 -

<--

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:

"Bonus." A payment authorized under section 1704.

"CARES Act." The Coronavirus Aid, Relief, and Economic

Security Act (Public Law 116-136, 134 Stat. 281).

"Program." The Back-to-Work Bonus Program established under

section 1704.

"Unemployment program." An unemployment compensation

benefits program administered by the department, which is

authorized under this act or Federal law, including:

(1) Unemployment compensation, including unemployment

compensation for Federal employees and unemployment

compensation for ex-service members.

(2) Pandemic emergency unemployment compensation.

(3) Pandemic unemployment assistance.

(4) Extended benefits.

(5) Short-time compensation under the shared -work

program under Article XIII.

(6) Trade readjustment allowances.

(7) Disaster unemployment assistance.

Section 1703. Removal of disincentives to work.

(a) Termination of Federal pandemic unemployment

compensation.--No later than one week after the effective date

of this subsection, the department shall provide notice to the

United States Secretary of Labor of the Commonwealth's election

to terminate participation in the program established under

section 2104 of the CARES Act. The program shall not make

payment for any weeks of unemployment that occur more than 30

days after the date of notice under this subsection.

20210HB0508PN1749 - 4 -

(b) Termination of pandemic unemployment assistance.--No

later than three weeks after the effective date of this

subsection, the department shall provide notice to the United

States Secretary of Labor of the Commonwealth's election to

terminate participation in the program established under section

2102 of the CARES Act. The program shall not make payment for

any weeks of unemployment that occur more than 30 days after the

date of notice under this subsection.

compensation.--No later than five weeks after the effective date

of this subsection, the department shall provide notice to the

United States Secretary of Labor of the Commonwealth's election

to terminate participation in the program established under

section 2107 of the CARES Act. The program shall not make

payment for any weeks of unemployment that occur more than 30

days after the date of notice under this subsection.

(d) Other notice.--Notice of termination under subsection

(a), (b) or (c) shall also be provided to any other Federal

official or agency required to receive notice.

Section 1704. Back-to-Work Bonus Program.

(a) Establishment and purpose.--The Back-to-Work Bonus

Program is established within the department to provide bonuses

to eligible applicants in accordance with this section.

(b) Bonuses.--

(1) A bonus shall be in the amount of $300.

(2) An applicant shall be eligible to receive a second

bonus upon the completion of four additional consecutive full

weeks of employment for the same employer.

(3) An applicant shall not receive more than two

bonuses.

20210HB0508PN1749 - 5 -

eligibility criteria for an applicant regarding participation in

the program, which at a minimum shall provide that an applicant

for a bonus must:

(1) have resided in Pennsylvania continuously since

March 6, 2020;

(2) have had an active claim with an unemployment

program administered by the department as of the effective

date of this subsection;

(3) discontinue the claim with an unemployment program

in order to accept employment prior to September 4, 2021;

(4) demonstrate the following:

(i) for a first bonus, the completion of at least

four consecutive full weeks of employment immediately

following the last week of benefits claimed from an

unemployment program; and

(ii) for a second bonus, the completion of at least

eight consecutive full weeks of employment immediately

following the last week of benefits claimed from an

unemployment program;

(5) be employed at the time of application; and

(6) submit a completed and timely application to the

department.

(d) Application.--

(1) The department shall begin accepting applications

for bonuses no later than 30 days after the effective date of

this subsection.

(2) An application for a bonus shall be on a form

prescribed by the department.

(3) At a minimum, an applicant for a bonus shall be

20210HB0508PN1749 - 6 -

required to provide the following:

(i) The name, address, telephone number and Social

Security number of the applicant.

(ii) Verification of the applicant's identity.

(iii) Documentation of continuous residency in this

Commonwealth since March 6, 2020.

(iv) Documentation of current employment.

(v) Documentation of the following:

(A) For a first bonus, the completion of at

least four consecutive full weeks of employment

immediately following the last week of benefits

claimed from an unemployment program.

(B) For a second bonus, the completion of at

least eight consecutive full weeks of employment

immediately following the last week of benefits

claimed from an unemployment program.

(e) Prioritization.--

(1) The department shall prioritize the processing of

applications and the authorization of bonuses. In the case of

limited program money, priority shall be given to an

applicant who:

(i) discontinued the claim with an unemployment

program earlier than another applicant;

(ii) accepted full-time work of at least 35 hours

per work week; or

(iii) has applied for a second bonus, upon the

completion of eight consecutive weeks of employment.

(2) Additional priority shall be given to an applicant

who satisfies more than one of the conditions specified in

paragraph (1).

20210HB0508PN1749 - 7 -

(f) Notice.--The department shall make reasonable efforts to

advertise the program through:

(1) The publicly accessible Internet website of the

department, social media, the news media and emails to

claimants.

(2) Organizations representing employers and labor

organizations.

(g) Procedures generally.--

(1) Upon receipt of an application for a bonus, the

department shall verify that the applicant discontinued an

active claim with an unemployment program as required by this

section and review the application and supporting

documentation to determine whether the applicant is eligible

for the bonus.

(2) Within 30 days of the receipt of a completed

application, the department shall:

(i) pay a bonus to an eligible applicant in

accordance with this section; or

(ii) notify the applicant of the reasons for denial

of the payment.

(3) Bonuses shall be paid to eligible applicants who

submit a completed application prior to December 31, 2021,

except that the department may terminate the program at an

earlier date if all the money appropriated under section 1705

is expended prior to that date.

Section 1705. Funding.

(a) Appropriation.--In addition to any other money

appropriated to the department for bonuses under this article,

the sum of $154,000,000 is appropriated to the department from

money received by the Commonwealth under Title IX, Subtitle M,

20210HB0508PN1749 - 8 -

section 9901 of the American Rescue Plan Act of 2021 (Public Law

117-2, 135 Stat. 4) and deposited into the COVID-19 Response

Restricted Account for the purpose of supporting the program.

(b) Administrative expenses.--The department may not use

more than $1,000,000 from the money appropriated under

subsection (a) for administrative expenses related to the

program.

lapse on March 30, 2022.

Section 2. This act shall take effect immediately.

20210HB0508PN1749 - 9 -