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A01462
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 AND ZIMMERMAN, MAY 19, 2021
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MAY 19, 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
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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
provided to Pennsylvania to provide up to two $300 bonus
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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.
The following words and phrases when used in this article
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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.
(b) Termination of pandemic unemployment assistance.--No
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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.
(c) Termination of pandemic emergency unemployment
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.
(c) Eligibility for bonus.--The department shall establish
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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
required to provide the following:
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(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).
(f) Notice.--The department shall make reasonable efforts to
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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,
section 9901 of the American Rescue Plan Act of 2021 (Public Law
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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.
(c) Lapse.--The appropriation under subsection (a) shall
lapse on March 30, 2022.
Section 2. This act shall take effect immediately.
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