PRIOR PRINTER'S NO. 497 PRINTER'S NO. 765
No. 464 Session of 2005
INTRODUCED BY SCARNATI, JUBELIRER, BRIGHTBILL, ORIE, VANCE,
GORDNER, PIPPY, MADIGAN, RAFFERTY, CORMAN, THOMPSON,
GREENLEAF, D. WHITE, M. WHITE, WAUGH, REGOLA, ROBBINS,
WONDERLING, FERLO, RHOADES, WENGER, PUNT AND PICCOLA,
MARCH 28, 2005
SENATOR SCARNATI, LABOR AND INDUSTRY, AS AMENDED, MAY 2, 2005
AN ACT
1 Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
2 P.L.2897, No.1), entitled "An act establishing a system of
3 unemployment compensation to be administered by the
4 Department of Labor and Industry and its existing and newly
5 created agencies with personnel (with certain exceptions)
6 selected on a civil service basis; requiring employers to
7 keep records and make reports, and certain employers to pay
8 contributions based on payrolls to provide moneys for the
9 payment of compensation to certain unemployed persons;
10 providing procedure and administrative details for the
11 determination, payment and collection of such contributions
12 and the payment of such compensation; providing for
13 cooperation with the Federal Government and its agencies;
14 creating certain special funds in the custody of the State
15 Treasurer; and prescribing penalties," further providing for
16 limitation on fees. THE DEFINITION OF "EMPLOYER" AND FOR <--
17 GENERAL POWERS AND DUTIES OF DEPARTMENT; PROVIDING FOR
18 REPRESENTATION IN PROCEEDINGS; FURTHER PROVIDING FOR
19 CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES, FOR SUCCESSORS-IN-
20 INTEREST, FOR APPEALS, FOR INTEREST ON PAST DUE CONTRIBUTIONS
21 AND FOR LIMITATIONS UPON ENFORCEMENT OF PAYMENT OF
22 CONTRIBUTIONS, INTEREST AND PENALTIES; PROVIDING FOR
23 REGISTRATION AND OTHER REPORTS; FURTHER PROVIDING FOR THE
24 SPECIAL ADMINISTRATION FUND; PROVIDING FOR THE JOB TRAINING
25 FUND; FURTHER PROVIDING FOR THE DUTIES OF THE STATE TREASURER
26 AS CUSTODIAN AND FOR OFFENSES RELATING TO FALSE STATEMENTS
27 AND REPRESENTATIONS TO PREVENT OR REDUCE COMPENSATION AND
28 OTHER OFFENSES; AND PROVIDING FOR MONETARY PENALTIES.
29 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Section 702 of the act of December 5, 1936 (2nd <--
3 Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
4 Compensation Law, amended September 29, 1951 (P.L.1580, No.408),
5 is amended to read:
6 Section 702. Limitation of Fees.--No employer or employe
7 shall be charged fees of any kind in any proceeding under this
8 act by the department, the board, or any of its officers or
9 agents. Any [individual claiming compensation] party involved in
10 any proceeding before the department, the board, or referee may
11 be represented by counsel or other duly authorized agent; but no
12 such counsel or agent shall either charge or receive any greater
13 fee for such services than is approved by the board. Any person
14 who violates any provision of this section shall be guilty of a
15 misdemeanor, and, upon conviction thereof, shall be sentenced to
16 pay a fine of not less than fifty dollars nor more than five
17 hundred dollars, or be imprisoned for not more than six months,
18 or both.
19 Section 2. This act shall take effect in 60 days.
20 SECTION 1. SECTION 4(J) OF THE ACT OF DECEMBER 5, 1936 (2ND <--
21 SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS THE UNEMPLOYMENT
22 COMPENSATION LAW, AMENDED JULY 6, 1977 (P.L.41, NO.22), IS
23 AMENDED TO READ:
24 SECTION 4. DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES, AS
25 USED IN THIS ACT, SHALL HAVE THE FOLLOWING MEANINGS, UNLESS THE
26 CONTEXT CLEARLY REQUIRES OTHERWISE.
27 * * *
28 (J) (1) "EMPLOYER" MEANS THE COMMONWEALTH OF PENNSYLVANIA,
29 ITS POLITICAL SUBDIVISIONS, AND THEIR INSTRUMENTALITIES AND
30 EVERY INDIVIDUAL, COPARTNERSHIP, ASSOCIATION, CORPORATION
20050S0464B0765 - 2 -
1 (DOMESTIC OR FOREIGN) OR OTHER ENTITY, THE LEGAL REPRESENTATIVE,
2 TRUSTEE IN BANKRUPTCY, RECEIVER OR TRUSTEE OF ANY INDIVIDUAL,
3 COPARTNERSHIP, ASSOCIATION OR CORPORATION OR OTHER ENTITY, OR
4 THE LEGAL REPRESENTATIVE OF A DECEASED PERSON, WHO OR WHICH
5 EMPLOYED OR EMPLOYS ANY EMPLOYE IN EMPLOYMENT SUBJECT TO THIS
6 ACT FOR SOME PORTION OF A DAY DURING A CALENDAR YEAR, OR WHO OR
7 WHICH HAS ELECTED TO BECOME FULLY SUBJECT TO THIS ACT, AND WHOSE
8 ELECTION REMAINS IN FORCE.
9 (2) EACH INDIVIDUAL EMPLOYED TO PERFORM OR TO ASSIST IN
10 PERFORMING WORK OF ANY AGENT OR EMPLOYE OF AN EMPLOYER SHALL BE
11 DEEMED TO BE EMPLOYED BY SUCH EMPLOYER FOR ALL THE PURPOSES OF
12 THIS ACT, WHETHER SUCH INDIVIDUAL WAS HIRED OR PAID DIRECTLY BY
13 SUCH EMPLOYER OR BY SUCH AGENT OR EMPLOYE, PROVIDED THE EMPLOYER
14 HAD ACTUAL OR CONSTRUCTIVE KNOWLEDGE OF THE WORK (EXCEPT AS
15 PROVIDED IN SUBSECTION (L)(3)(G) OF THIS SECTION).
16 (2.1) AN INDIVIDUAL OR ENTITY THAT TRANSFERS SOME OR ALL OF
17 ITS WORK FORCE TO THE PAYROLL OF ANOTHER INDIVIDUAL OR ENTITY,
18 DIRECTLY OR INDIRECTLY, AS PART OF OR RESULTING IN AN
19 ARRANGEMENT WHEREBY THE INDIVIDUAL OR ENTITY SHARES EMPLOYER
20 FUNCTIONS WITH RESPECT TO SOME OR ALL OF ITS WORK FORCE WITH THE
21 OTHER INDIVIDUAL OR ENTITY, SHALL BE THE EMPLOYER OF THE EMPLOYE
22 OR EMPLOYES COVERED BY THE ARRANGEMENT WITH THE OTHER INDIVIDUAL
23 OR ENTITY. THIS PARAGRAPH SHALL INCLUDE, WITHOUT LIMITATION, AN
24 ARRANGEMENT KNOWN AS A PROFESSIONAL EMPLOYER ARRANGEMENT OR
25 EMPLOYE LEASING ARRANGEMENT. THIS PARAGRAPH DOES NOT INCLUDE A
26 TEMPORARY HELP ARRANGEMENT IN WHICH AN INDIVIDUAL OR ENTITY
27 UTILIZES ONE OR MORE WORKERS SUPPLIED BY ANOTHER INDIVIDUAL OR
28 ENTITY TO SUPPLEMENT ITS WORK FORCE IN SPECIAL, TEMPORARY WORK
29 SITUATIONS, SUCH AS ABSENCES, SKILL SHORTAGES, SEASONAL WORK
30 LOADS AND SPECIAL ASSIGNMENTS.
20050S0464B0765 - 3 -
1 (3) WHERE AN EMPLOYER MAINTAINS MORE THAN ONE PLACE OF
2 EMPLOYMENT WITHIN THIS COMMONWEALTH, ALL OF THE EMPLOYES AT THE
3 SEVERAL PLACES OF EMPLOYMENT SHALL BE TREATED, FOR THE PURPOSES
4 OF THIS ACT, AS IF EMPLOYED BY A SINGLE EMPLOYER.
5 (4) ANY INDIVIDUAL, COPARTNERSHIP, ASSOCIATION, CORPORATION
6 OR OTHER ENTITY WHO OR WHICH IS NOT SUBJECT TO THIS ACT MAY
7 ELECT TO BECOME SUBJECT THERETO BY FILING WITH THE DEPARTMENT
8 HIS OR ITS WRITTEN APPLICATION.
9 (5) AN EMPLOYER SUBJECT TO THIS ACT MAY ELECT TO INCLUDE
10 WITHIN THE TERM "EMPLOYMENT," SUBJECT TO THIS ACT, SERVICES
11 PERFORMED BY HIS OR ITS EMPLOYES WITH RESPECT TO WHICH NO
12 CONTRIBUTIONS ARE REQUIRED AND PAID UNDER AN UNEMPLOYMENT
13 COMPENSATION LAW OF ANY OTHER STATE, (A) IF THE EMPLOYE OR
14 EMPLOYES, INCLUDED IN SUCH ELECTION, MAINTAIN A DOMICILE WITHIN
15 THIS COMMONWEALTH AND THE SERVICES OF SUCH EMPLOYE OR EMPLOYES,
16 ARE PERFORMED ENTIRELY WITHOUT THIS COMMONWEALTH, OR (B) IF THE
17 EMPLOYE OR EMPLOYES INCLUDED IN THE ELECTION MAINTAINS NO
18 DOMICILE WITHIN THIS COMMONWEALTH BUT THE SERVICES OF SUCH
19 EMPLOYE OR EMPLOYES ARE (A) PERFORMED WITHOUT THIS COMMONWEALTH
20 AND (B) ARE DIRECTED FROM THIS COMMONWEALTH.
21 (6) AN EMPLOYER, SUBJECT TO THIS ACT, MAY ELECT TO INCLUDE
22 WITHIN THE TERM "EMPLOYMENT," SUBJECT TO THIS ACT, SERVICES
23 PERFORMED BY HIS OR ITS EMPLOYES WHICH ARE EXEMPT UNDER THE
24 PROVISIONS OF SUBSECTION (L) OF SECTION FOUR OF THIS ACT.
25 (7) ANY ELECTION SHALL BE SUBJECT TO THE APPROVAL OF THE
26 DEPARTMENT AND SHALL BECOME BINDING FOR NOT LESS THAN TWO
27 CALENDAR YEARS.
28 (8) ANY SERVICES PERFORMED FOR AN EMPLOYER COVERED BY AN
29 ELECTION, PURSUANT TO THIS SUBSECTION, SHALL, DURING THE
30 EFFECTIVE PERIOD OF SUCH ELECTION, BE DEEMED TO BE EMPLOYMENT
20050S0464B0765 - 4 -
1 FOR ALL THE PURPOSES OF THIS ACT. ANY ELECTION APPROVED BY THE
2 DEPARTMENT, PURSUANT TO THIS SUBSECTION, SHALL CEASE TO BE
3 EFFECTIVE ONLY AS OF THE FIRST DAY OF JANUARY OF ANY CALENDAR
4 YEAR SUBSEQUENT TO THE INITIAL TWO CALENDAR YEARS THEREOF, AND
5 ONLY IF, AT LEAST THIRTY (30) DAYS PRIOR TO SUCH FIRST DAY OF
6 JANUARY, THE EMPLOYER HAS FILED WITH THE DEPARTMENT A NOTICE OF
7 TERMINATION OF HIS ELECTION. NOTWITHSTANDING ANY PROVISIONS OF
8 THIS SUBSECTION TO THE CONTRARY, THE DEPARTMENT MAY AT ANY TIME,
9 ON ITS OWN MOTION, CANCEL AN ELECTION APPROVED UNDER THE
10 PROVISIONS OF THIS SUBSECTION.
11 * * *
12 SECTION 2. SECTION 201(A) OF THE ACT, AMENDED JULY 1, 1985
13 (P.L.96, NO.30), IS AMENDED TO READ:
14 SECTION 201. GENERAL POWERS AND DUTIES OF DEPARTMENT.--(A)
15 IT SHALL BE THE DUTY OF THE DEPARTMENT TO ADMINISTER AND ENFORCE
16 THIS ACT THROUGH SUCH EMPLOYMENT SERVICE AND PUBLIC EMPLOYMENT
17 OFFICES AS HAVE BEEN OR MAY BE CONSTITUTED IN ACCORDANCE WITH
18 THE PROVISIONS OF THIS ACT AND EXISTING LAWS. IT SHALL HAVE
19 POWER AND AUTHORITY TO ADOPT, AMEND, AND RESCIND SUCH RULES AND
20 REGULATIONS, REQUIRE SUCH REPORTS FROM EMPLOYERS, EMPLOYES, THE
21 BOARD AND FROM ANY OTHER PERSON DEEMED BY THE DEPARTMENT TO BE
22 AFFECTED BY THIS ACT, MAKE SUCH INVESTIGATIONS, AND TAKE SUCH
23 OTHER ACTION AS IT DEEMS NECESSARY OR SUITABLE. SUCH RULES AND
24 REGULATIONS SHALL NOT BE INCONSISTENT WITH THE PROVISIONS OF
25 THIS ACT. THE DEPARTMENT SHALL SUBMIT TO THE GOVERNOR AND THE
26 GENERAL ASSEMBLY A BIENNIAL REPORT COVERING THE ADMINISTRATION
27 AND OPERATION OF THIS ACT AND SHALL MAKE SUCH RECOMMENDATIONS
28 FOR AMENDMENTS TO THIS ACT AS IT DEEMS PROPER. THE DEPARTMENT
29 SHALL ESTABLISH PROCEDURES TO IDENTIFY THE TRANSFER OR
30 ACQUISITION OF A BUSINESS IN ACCORDANCE WITH SECTION
20050S0464B0765 - 5 -
1 303(K)(1)(E) OF THE SOCIAL SECURITY ACT (49 STAT. 620, 42 U.S.C.
2 § 503(K)(1)(E)). IN THE DISCHARGE OF THE DUTIES IMPOSED BY THIS
3 ACT, THE SECRETARY AND ANY AGENT DULY AUTHORIZED IN WRITING BY
4 HIM SHALL HAVE THE POWER TO ADMINISTER OATHS AND AFFIRMATIONS,
5 TAKE DEPOSITIONS, AND CERTIFY TO OFFICIAL ACTS. THE DEPARTMENT
6 SHALL HAVE THE POWER TO ISSUE SUBPOENAS TO COMPEL THE ATTENDANCE
7 OF WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS,
8 CORRESPONDENCE, MEMORANDA AND OTHER RECORDS DEEMED NECESSARY IN
9 THE ADMINISTRATION OF THIS ACT.
10 * * *
11 SECTION 3. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
12 SECTION 214. REPRESENTATION IN PROCEEDINGS.--ANY PARTY IN
13 ANY PROCEEDING UNDER THIS ACT BEFORE THE DEPARTMENT, A REFEREE
14 OR THE BOARD MAY BE REPRESENTED BY AN ATTORNEY OR OTHER
15 REPRESENTATIVE.
16 SECTION 4. SECTION 301(A), (D) AND (J) OF THE ACT, AMENDED
17 SEPTEMBER 29, 1951 (P.L.1580, NO.408), DECEMBER 17, 1959
18 (P.L.1893, NO.693), MARCH 24, 1964 (SP.SESS. P.L.53, NO.1), JUNE
19 22, 1964 (SP.SESS. P.L.112, NO.7), JULY 21, 1983 (P.L.68, NO.30)
20 AND NOVEMBER 17, 1995 (P.L.615, NO.64), ARE AMENDED TO READ:
21 SECTION 301. CONTRIBUTIONS BY EMPLOYERS AND EMPLOYES;
22 SUCCESSORS-IN-INTEREST; APPEALS.--
23 (A) (1) EACH EMPLOYER SHALL PAY CONTRIBUTIONS WITH RESPECT
24 TO THE CALENDAR YEAR 1984, AND EACH CALENDAR YEAR THEREAFTER, AT
25 A RATE EQUAL TO FIVE AND FOUR-TENTHS PER CENTUM (5.4%) FOR
26 EMPLOYERS WITH A ZERO OR CREDIT RESERVE ACCOUNT BALANCE AND
27 EIGHT AND FIVE-TENTHS PER CENTUM (8.5%) FOR 1984, EIGHT AND
28 EIGHT-TENTHS PER CENTUM (8.8%) FOR 1985 AND NINE AND TWO-TENTHS
29 PER CENTUM (9.2%) FOR 1986 AND THEREAFTER FOR EMPLOYERS WITH A
30 DEBIT RESERVE ACCOUNT BALANCE OF WAGES PAID BY HIM FOR
20050S0464B0765 - 6 -
1 EMPLOYMENT: PROVIDED, HOWEVER, THAT WITH RESPECT TO EMPLOYERS
2 SUBJECT TO THE PROVISIONS OF SECTION 301.1(B) OF THIS ACT, SUCH
3 RATE SHALL BE ADJUSTED IN ACCORDANCE WITH THE PROVISIONS OF
4 SECTIONS 301.1, 301.2 AND 301.6 OF THIS ACT.
5 (2) [NO EMPLOYER'S RATE OF CONTRIBUTION FOR ANY CALENDAR
6 YEAR SHALL BE LESS THAN NINE AND TWO-TENTHS PER CENTUM (9.2%)
7 FOR 1984, NINE AND FOUR-TENTHS PER CENTUM (9.4%) FOR 1985, NINE
8 AND SEVEN-TENTHS PER CENTUM (9.7%) FOR 1986 THROUGH 1995 AND THE
9 SUM OF THREE PER CENTUM (3%) PLUS HIS RATE OF CONTRIBUTION AS
10 DETERMINED WITHOUT REGARD TO THIS PARAGRAPH FOR 1996 AND
11 THEREAFTER UNLESS] AN EMPLOYER'S RATE OF CONTRIBUTION SHALL BE
12 THE SUM OF THREE PER CENTUM (3%) PLUS HIS RATE OF CONTRIBUTION
13 AS DETERMINED UNDER THIS SECTION OR SECTION 301.1 OF THIS ACT,
14 WITHOUT REGARD TO THIS PARAGRAPH OR PARAGRAPH (2.1) OF THIS
15 SUBSECTION, IF ALL HIS REPORTS REQUIRED BY THIS ACT AND
16 REGULATIONS OF THE DEPARTMENT TO ESTABLISH THE AMOUNT OF
17 CONTRIBUTIONS OR SHOWING THE AMOUNT OF WAGES PAID TO EACH
18 EMPLOYE FOR CALENDAR QUARTERS THROUGH THE SECOND CALENDAR
19 QUARTER OF THE PRECEDING CALENDAR YEAR AND ALL HIS CONTRIBUTIONS
20 DUE ON WAGES PAID TO THE END OF THE SECOND CALENDAR QUARTER OF
21 THE PRECEDING CALENDAR YEAR, TOGETHER WITH INTEREST AND
22 PENALTIES DUE THEREON, HAVE NOT BEEN FILED AND PAID BY SEPTEMBER
23 30 OF SUCH PRECEDING CALENDAR YEAR, EXCEPT THAT AN EMPLOYER WHO
24 HAS TIMELY FILED AN APPEAL AS PROVIDED IN SUBSECTION (E) OF THIS
25 SECTION AND WHO HAS BEEN DETERMINED INELIGIBLE TO RECEIVE A
26 REDUCED RATE SOLELY ON THE BASIS THAT HE HAS NOT FILED ALL
27 REPORTS AND PAID ALL CONTRIBUTIONS, INTEREST AND PENALTIES
28 WITHIN THE TIME LIMITS AS REQUIRED IN THIS [SUBSECTION]
29 PARAGRAPH, SHALL HAVE HIS RATE REDETERMINED AND SHALL NOT BE
30 CONSIDERED INELIGIBLE UNDER THIS [SUBSECTION] PARAGRAPH IF SUCH
20050S0464B0765 - 7 -
1 DELINQUENT REPORTS ARE FILED AND PAYMENT OF SUCH DELINQUENT
2 CONTRIBUTIONS, INTEREST AND PENALTIES IS MADE WITHIN THIRTY (30)
3 DAYS AFTER THE DEPARTMENT HAS NOTIFIED THE EMPLOYER OF THE
4 REASON FOR HIS INELIGIBILITY FOR RATE REDUCTION IN RESPONSE TO
5 THE APPEAL FILED BY THE EMPLOYER UNDER SUBSECTION (E) OR, IF THE
6 EMPLOYER EXECUTES AND FILES WITH THE DEPARTMENT, NO LATER THAN
7 THE END OF THE THIRTY (30) DAYS, A DEFERRED PAYMENT PLAN, WHICH
8 IS ACCEPTED BY THE DEPARTMENT AS FILED OR MODIFIED, FOR SUCH
9 DELINQUENT CONTRIBUTIONS, INTEREST AND PENALTIES. IF THE
10 EMPLOYER FAILS TO COMPLY WITH THE DEFERRED PAYMENT PLAN, THE
11 REDUCED RATE GRANTED SHALL BE REVOKED AND, NOTWITHSTANDING
12 SECTIONS 301(J) AND 309.2, ADDITIONAL CONTRIBUTIONS SHALL BE DUE
13 AS A RESULT OF THE RATE INCREASE AND SHALL BEAR INTEREST FROM
14 THE DUE DATE OF THE CORRESPONDING REPORT OR REPORTS.
15 (2.1) AN EMPLOYER'S RATE OF CONTRIBUTION SHALL BE THE SUM OF
16 THREE PER CENTUM (3%) PLUS HIS RATE OF CONTRIBUTION AS
17 DETERMINED UNDER THIS SECTION OR SECTION 301.1 OF THIS ACT,
18 WITHOUT REGARD TO THIS PARAGRAPH OR PARAGRAPH (2) OF THIS
19 SUBSECTION IF THE EMPLOYER FAILS TO FILE ANY REPORT REQUIRED BY
20 SECTION 315(A)(1), (2) OR (3) OF THIS ACT IN ACCORDANCE WITH
21 SECTION 315(B). THIS PARAGRAPH SHALL APPLY TO AN EMPLOYER'S RATE
22 OF CONTRIBUTION FOR THE CALENDAR YEAR IN WHICH THE REPORT
23 BECOMES DUE THROUGH THE CALENDAR YEAR IN WHICH THE REPORT IS
24 FILED: PROVIDED, HOWEVER, THAT AN EMPLOYER WHO HAS TIMELY FILED
25 AN APPEAL AS PROVIDED IN SUBSECTION (E) OF THIS SECTION AND WHO
26 HAS BEEN DETERMINED INELIGIBLE TO RECEIVE A REDUCED RATE SOLELY
27 ON THE BASIS THAT HE HAS NOT FILED A REPORT AS REQUIRED IN THIS
28 PARAGRAPH SHALL HAVE HIS RATE REDETERMINED AND SHALL NOT BE
29 CONSIDERED INELIGIBLE UNDER THIS PARAGRAPH IF SUCH REPORT IS
30 FILED WITHIN THIRTY (30) DAYS AFTER THE DEPARTMENT HAS NOTIFIED
20050S0464B0765 - 8 -
1 THE EMPLOYER OF THE REASON FOR HIS INELIGIBILITY FOR RATE
2 REDUCTION IN RESPONSE TO THE APPEAL FILED BY THE EMPLOYER UNDER
3 SUBSECTION (E); AND PROVIDED FURTHER, THAT FOR PURPOSES OF THIS
4 PARAGRAPH WHEN ONE PARTY TO A TRANSFER OF ORGANIZATION, TRADE,
5 BUSINESS OR WORK FORCE FILES THE REPORT REQUIRED BY SECTION
6 315(A)(2) OF THIS ACT IN ACCORDANCE WITH SECTION 315(B), THE
7 OTHER PARTY TO THE TRANSFER WILL BE DEEMED TO HAVE FILED ITS
8 REPORT AT THAT TIME.
9 (3) NOTWITHSTANDING ANY OTHER PROVISIONS OF THE ACT EXCEPT
10 PARAGRAPH (2) OF THIS SUBSECTION, ANY EMPLOYER WHO BECOMES NEWLY
11 LIABLE FOR CONTRIBUTIONS UNDER THIS ACT IN A CALENDAR YEAR IN
12 WHICH IT EMPLOYS INDIVIDUALS IN THE PERFORMANCE OF A CONTRACT OR
13 SUBCONTRACT FOR CONSTRUCTION IN THIS COMMONWEALTH OF ROADS,
14 BRIDGES, HIGHWAYS, BUILDINGS, FACTORIES, HOUSING DEVELOPMENTS OR
15 OTHER CONSTRUCTION PROJECTS SHALL BE LIABLE FOR CONTRIBUTIONS AT
16 THE RATE OF NINE AND TWO-TENTHS PER CENTUM (9.2%) FOR 1984, NINE
17 AND FOUR-TENTHS PER CENTUM (9.4%) FOR 1985 AND NINE AND SEVEN-
18 TENTHS PER CENTUM (9.7%) FOR 1986 AND THEREAFTER PAID BY HIM FOR
19 EMPLOYMENT, UNTIL SUCH TIME AS HE BECOMES SUBJECT TO THE
20 PROVISIONS OF SECTIONS 301.1, 301.2 AND 301.6 OF THIS ACT
21 SUBJECT TO THE PROVISIONS OF SECTION 301.1(G).
22 (4) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1) OF THIS
23 SUBSECTION, ANY EMPLOYER WHO BECOMES NEWLY LIABLE FOR
24 CONTRIBUTIONS UNDER THIS ACT, OTHER THAN AN EMPLOYER SUBJECT TO
25 THE PROVISIONS OF PARAGRAPH (3) OF THIS SUBSECTION, SHALL BE
26 LIABLE FOR CONTRIBUTIONS AT THE RATE OF THREE AND FIVE-TENTHS
27 PER CENTUM (3.5%) OF WAGES PAID BY HIM FOR EMPLOYMENT UNTIL SUCH
28 TIME AS HE SHALL BECOME CLASSIFIABLE UNDER THE PROVISIONS OF
29 SECTION 301.1(B) OF THIS ACT. THEREAFTER HIS RATE OF
30 CONTRIBUTIONS SHALL BE FIVE AND FOUR-TENTHS PER CENTUM (5.4%)
20050S0464B0765 - 9 -
1 FOR EMPLOYERS WITH A ZERO OR CREDIT RESERVE ACCOUNT BALANCE AND
2 EIGHT AND FIVE-TENTHS PER CENTUM (8.5%) FOR 1984, EIGHT AND
3 EIGHT-TENTHS PER CENTUM (8.8%) FOR 1985 AND NINE AND TWO-TENTHS
4 PER CENTUM (9.2%) FOR 1986 AND THEREAFTER FOR EMPLOYERS WITH A
5 DEBIT RESERVE ACCOUNT BALANCE SUBJECT TO ADJUSTMENT UNDER THE
6 PROVISIONS OF SECTIONS 301.1, 301.2 AND 301.6 OF THIS ACT.
7 * * *
8 (D) (1) (A) WHERE AN EMPLOYER, SUBSEQUENT TO THE THIRTIETH
9 DAY OF JUNE, ONE THOUSAND NINE HUNDRED AND FORTY-NINE, TRANSFERS
10 HIS OR ITS ORGANIZATION, TRADE [OR], BUSINESS OR WORK FORCE, IN
11 WHOLE OR IN PART, TO A SUCCESSOR-IN-INTEREST WHO CONTINUES
12 ESSENTIALLY THE SAME BUSINESS ACTIVITY OF THE WHOLE OR PART
13 TRANSFERRED, SUCH SUCCESSOR-IN-INTEREST MAY, PRIOR TO THE END OF
14 THE CALENDAR YEAR SUBSEQUENT TO THE CALENDAR YEAR IN WHICH THE
15 TRANSFER OCCURRED, MAKE APPLICATION FOR TRANSFER OF THE WHOLE,
16 OR APPROPRIATE PART, OF THE EXPERIENCE RECORD AND RESERVE
17 ACCOUNT BALANCE OF THE PRECEDING EMPLOYER TO THE SUCCESSOR-IN-
18 INTEREST, INCLUDING CREDIT FOR THE YEARS DURING WHICH
19 CONTRIBUTIONS WERE PAID BY THE PRECEDING EMPLOYER. THE
20 DEPARTMENT SHALL TRANSFER THE WHOLE OR APPROPRIATE PART OF SUCH
21 EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE OF THE PRECEDING
22 EMPLOYER ONLY IF SUCH PRECEDING EMPLOYER HAS JOINED IN SUCH
23 APPLICATION AND HAS FILED WITH THE DEPARTMENT SUCH SUPPORTING
24 SCHEDULES OR OTHER INFORMATION WITH RESPECT TO SUCH EXPERIENCE
25 RECORD AND RESERVE ACCOUNT BALANCE AS THE DEPARTMENT MAY
26 REQUIRE[. IF], INCLUDING THE REPORT REQUIRED BY SECTION
27 315(A)(3); THE APPLICATION FOR SUCH TRANSFER IS FILED IN
28 ACCORDANCE WITH THE RULES AND REGULATIONS OF THE DEPARTMENT[,
29 THE DEPARTMENT MAY ALLOW SUCH TRANSFER ONLY IF]; AND ALL
30 CONTRIBUTIONS, INTEREST AND PENALTIES OWING BY THE PREDECESSOR
20050S0464B0765 - 10 -
1 HAVE BEEN OR ARE PAID AT THE TIME SUCH APPLICATION IS FILED WITH
2 THE DEPARTMENT. THE DEPARTMENT MAY NOT TRANSFER THE WHOLE OR
3 APPROPRIATE PART OF THE PRECEDING EMPLOYER'S EXPERIENCE RECORD
4 AND RESERVE ACCOUNT BALANCE IF THE DEPARTMENT DETERMINES THAT
5 THE SUCCESSOR-IN-INTEREST ACQUIRED ALL OR PART OF THE PRECEDING
6 EMPLOYER'S ORGANIZATION, TRADE, BUSINESS OR WORK FORCE SOLELY OR
7 PRIMARILY TO OBTAIN A LOWER RATE OF CONTRIBUTION.
8 (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS
9 SUBSECTION, WITH RESPECT TO ANY TRANSFER BY AN EMPLOYER SUBJECT
10 TO THE CONTRIBUTION PROVISIONS OF THIS ACT OF ITS ORGANIZATION,
11 TRADE [OR], BUSINESS OR WORK FORCE, IN WHOLE OR IN PART, WHETHER
12 SUCH TRANSFER WAS BY MERGER, CONSOLIDATION, SALE OR TRANSFER,
13 DESCENT OR OTHERWISE, THE DEPARTMENT SHALL TRANSFER THE
14 EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE (WHETHER POSITIVE
15 OR NEGATIVE) OF SUCH EMPLOYER TO ITS SUCCESSOR-IN-INTEREST IF IT
16 FINDS THAT (I) SUCH EMPLOYER WAS OWNED [OR], CONTROLLED OR
17 MANAGED BY OR OWNED [OR], CONTROLLED OR MANAGED THE SUCCESSOR-
18 IN-INTEREST EITHER DIRECTLY OR INDIRECTLY, BY LEGALLY ENFORCIBLE
19 MEANS OR OTHERWISE, OR (II) BOTH SUCH EMPLOYER AND SUCCESSOR-IN-
20 INTEREST WERE OWNED [OR], CONTROLLED OR MANAGED EITHER DIRECTLY
21 OR INDIRECTLY, BY LEGALLY ENFORCIBLE MEANS OR OTHERWISE, BY THE
22 SAME INTEREST OR INTERESTS.
23 (B.1) PARAGRAPHS (A) AND (B) OF THIS SUBSECTION SHALL NOT
24 APPLY TO A TRANSFER OF A WORK FORCE, IN WHOLE OR IN PART, WHICH
25 IS PART OF OR RESULTS IN AN ARRANGEMENT COVERED BY SECTION
26 4(J)(2.1) OF THIS ACT.
27 (C) IN THE EVENT OF A PART TRANSFER OF AN EMPLOYER'S
28 ORGANIZATION, TRADE [OR], BUSINESS OR WORK FORCE UNDER EITHER
29 PARAGRAPH (A) OR PARAGRAPH (B) OF THIS SUBSECTION, [ONLY SUCH] A
30 PORTION OF THE EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE OF
20050S0464B0765 - 11 -
1 THE PRECEDING EMPLOYER [AS SUCH EMPLOYER'S AVERAGE ANNUAL WAGES
2 FOR THE LAST THREE CALENDAR YEARS OF THE ORGANIZATION, TRADE OR
3 BUSINESS TRANSFERRED BEARS TO HIS TOTAL AVERAGE ANNUAL PAYROLL
4 FOR SUCH LAST THREE CALENDAR YEARS] SHALL BE TRANSFERRED[:],
5 ACCORDING TO THE FOLLOWING FORMULA:
6 AVERAGE OF THE NUMBER OF
7 EMPLOYES IN THE PART OF
8 THE ORGANIZATION, TRADE,
9 BUSINESS OR WORK FORCE
10 TRANSFERRED FOR EACH
11 CALENDAR QUARTER IN THE
12 THREE CALENDAR YEARS
13 PRECEDING THE TRANSFER
14 PERCENTAGE OF PRECEDING
15 EMPLOYER'S EXPERIENCE
16 ------------------------ X 100 = RECORD AND RESERVE ACCOUNT
17 BALANCE TRANSFERRED TO
18 THE SUCCESSOR-IN-INTEREST
19 AVERAGE OF THE NUMBER OF
20 EMPLOYES IN THE TOTAL OF
21 THE PRECEDING EMPLOYER'S
22 ORGANIZATION, TRADE,
23 BUSINESS OR WORK FORCE FOR
24 EACH CALENDAR QUARTER IN
25 THE THREE CALENDAR YEARS
26 PRECEDING THE TRANSFER
27 PROVIDED, THAT IF THE PART TRANSFERRED HAS BEEN IN EXISTENCE FOR
28 A PERIOD OF LESS THAN THREE CALENDAR YEARS PRECEDING THE
29 TRANSFER BUT MORE THAN ONE CALENDAR YEAR, THEN [ONLY SUCH
30 PORTION OF THE EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE OF
20050S0464B0765 - 12 -
1 THE PRECEDING EMPLOYER AS THE AVERAGE ANNUAL WAGES FOR SUCH
2 PERIOD OF THE PART TRANSFERRED BEARS TO THE TOTAL AVERAGE ANNUAL
3 PAYROLL FOR SUCH PERIOD SHALL BE TRANSFERRED,] THE PERIOD FOR
4 WHICH THE PART TRANSFERRED HAS BEEN IN EXISTENCE SHALL BE USED
5 IN THE FOREGOING FORMULA AND CREDIT SHALL BE GIVEN TO THE
6 SUCCESSOR-IN-INTEREST ONLY FOR THE YEARS DURING WHICH
7 CONTRIBUTIONS WERE PAID BY THE PRECEDING EMPLOYER WITH RESPECT
8 TO THAT PART OF THE ORGANIZATION, TRADE [OR], BUSINESS OR WORK
9 FORCE TRANSFERRED.
10 [(D) A TRANSFER OF AN EXPERIENCE RECORD AND RESERVE ACCOUNT
11 BALANCE, IN WHOLE OR IN PART, HAVING BEEN MADE UNDER THE
12 PROVISIONS OF EITHER PARAGRAPH (A) OR PARAGRAPH (B) OF THIS
13 SUBSECTION, THE PRECEDING EMPLOYER SHALL NOT BE ENTITLED TO
14 CONSIDERATION FOR AN ADJUSTED RATE FOR THE CALENDAR YEAR
15 FOLLOWING THE DATE OF TRANSFER AND FOR SUBSEQUENT CALENDAR
16 YEARS, BASED UPON HIS EXPERIENCE RECORD AND RESERVE ACCOUNT
17 BALANCE WHICH HAS BEEN THUS TRANSFERRED.
18 (2) A PRECEDING EMPLOYER OR SUCCESSOR-IN-INTEREST WHO, PRIOR
19 TO THE TRANSFER, WAS AN EMPLOYER DURING THE CALENDAR YEAR IN
20 WHICH THE TRANSFER OCCURRED, SHALL NOT HAVE HIS RATE OF
21 CONTRIBUTION ADJUSTED UNDER THE PROVISIONS OF THIS SUBSECTION
22 FOR THE REMAINDER OF SUCH YEAR. A SUCCESSOR-IN-INTEREST WHO,
23 PRIOR TO THE TRANSFER, WAS NOT AN EMPLOYER DURING THE CALENDAR
24 YEAR IN WHICH THE TRANSFER OCCURRED AND WHO HAS MADE APPLICATION
25 FOR A TRANSFER WHICH HAS BEEN APPROVED BY THE DEPARTMENT, AS
26 PROVIDED HEREIN, AND WHO, TOGETHER WITH HIS PREDECESSOR, HAS
27 PAID CONTRIBUTIONS FOR THE PERIOD REQUIRED UNDER SUBSECTION (B)
28 OF SECTION THREE HUNDRED ONE POINT ONE WITH RESPECT TO THE
29 ORGANIZATION, TRADE OR BUSINESS, OR PART THEREOF, WHICH HAS BEEN
30 TRANSFERRED, SHALL BE ASSIGNED THE SAME RATE OF CONTRIBUTION AS
20050S0464B0765 - 13 -
1 THE PRECEDING EMPLOYER FOR THE REMAINDER OF SUCH YEAR, AFTER
2 WHICH HIS RATE OF CONTRIBUTION SHALL BE DETERMINED ON THE BASIS
3 OF THE EXPERIENCE RECORD AND BALANCE IN THE RESERVE ACCOUNT
4 WHICH HAS BEEN COMBINED WITH ANY OTHER EXPERIENCE RECORD AND
5 RESERVE ACCOUNT BALANCE WHICH SUCH SUCCESSOR-IN-INTEREST MAY
6 HAVE ACQUIRED.]
7 (2.1) IF THE EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE
8 OF A PRECEDING EMPLOYER IS TRANSFERRED, IN WHOLE OR IN PART, TO
9 A SUCCESSOR-IN-INTEREST UNDER PARAGRAPH (1) OF THIS SUBSECTION,
10 THE FOLLOWING PROVISIONS SHALL APPLY:
11 (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE
12 EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE TRANSFERRED TO THE
13 SUCCESSOR-IN-INTEREST SHALL BE DEEMED TO REMAIN WITH THE
14 PRECEDING EMPLOYER FOR PURPOSES OF DETERMINING THE RATE OF
15 CONTRIBUTION OF THE PRECEDING EMPLOYER FOR THE REMAINDER OF THE
16 CALENDAR YEAR IN WHICH THE TRANSFER OF ORGANIZATION, TRADE,
17 BUSINESS OR WORK FORCE OCCURRED.
18 (B) IN THE EVENT OF A TRANSFER OF AN EXPERIENCE RECORD AND
19 RESERVE ACCOUNT BALANCE UNDER THE PROVISIONS OF PARAGRAPH (1)(A)
20 OF THIS SUBSECTION:
21 (I) FOR PURPOSES OF DETERMINING THE RATE OF CONTRIBUTION OF
22 THE SUCCESSOR-IN-INTEREST, FOR CALENDAR YEARS SPECIFIED IN THE
23 RULES AND REGULATIONS OF THE DEPARTMENT, THE EXPERIENCE RECORD
24 AND RESERVE ACCOUNT BALANCE ACQUIRED FROM THE PRECEDING EMPLOYER
25 SHALL BE COMBINED INTO THE EXPERIENCE RECORD AND RESERVE ACCOUNT
26 BALANCE OF THE SUCCESSOR-IN-INTEREST.
27 (II) THE RATE OF CONTRIBUTION OF THE PRECEDING EMPLOYER
28 SHALL BE DETERMINED WITHOUT REGARD TO THE EXPERIENCE RECORD AND
29 RESERVE ACCOUNT BALANCE TRANSFERRED TO THE SUCCESSOR-IN-INTEREST
30 COMMENCING WITH THE EARLIEST CALENDAR YEAR FOR WHICH THE RATE OF
20050S0464B0765 - 14 -
1 CONTRIBUTION OF THE SUCCESSOR-IN-INTEREST IS DETERMINED UNDER
2 SUBPARAGRAPH (I).
3 (C) IN THE EVENT OF A TRANSFER OF AN EXPERIENCE RECORD AND
4 RESERVE ACCOUNT BALANCE UNDER THE PROVISIONS OF PARAGRAPH (1)(B)
5 OF THIS SUBSECTION:
6 (I) THE RATE OF CONTRIBUTION OF THE PRECEDING EMPLOYER FOR
7 CALENDAR YEARS FOLLOWING THE YEAR IN WHICH THE TRANSFER OF
8 ORGANIZATION, TRADE, BUSINESS OR WORK FORCE OCCURRED SHALL BE
9 DETERMINED WITHOUT REGARD TO THE EXPERIENCE RECORD AND RESERVE
10 ACCOUNT BALANCE TRANSFERRED TO THE SUCCESSOR-IN-INTEREST.
11 (II) THE EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE
12 ACQUIRED FROM THE PRECEDING EMPLOYER SHALL BE COMBINED INTO THE
13 EXPERIENCE RECORD AND RESERVE ACCOUNT BALANCE OF THE SUCCESSOR-
14 IN-INTEREST FOR PURPOSES OF DETERMINING THE RATE OF CONTRIBUTION
15 OF THE SUCCESSOR-IN-INTEREST FOR THE REMAINDER OF THE CALENDAR
16 YEAR IN WHICH THE TRANSFER OF ORGANIZATION, TRADE, BUSINESS OR
17 WORK FORCE OCCURRED AND SUBSEQUENT CALENDAR YEARS.
18 (D) IN THE EVENT OF A PART TRANSFER OF AN EXPERIENCE RECORD
19 AND RESERVE ACCOUNT BALANCE UNDER THE PROVISIONS OF PARAGRAPH
20 (1)(A) OF THIS SUBSECTION, COMPENSATION PAID AFTER THE DATE OF
21 THE TRANSFER OF ORGANIZATION, TRADE, BUSINESS OR WORK FORCE,
22 BASED ON WAGES PAID BY THE PRECEDING EMPLOYER BEFORE THE DATE OF
23 SUCH TRANSFER, SHALL BE CHARGED TO THE RESPECTIVE EXPERIENCE
24 RECORDS AND RESERVE ACCOUNTS OF THE PRECEDING EMPLOYER AND
25 SUCCESSOR-IN-INTEREST. COMPENSATION PAID TO INDIVIDUALS
26 IDENTIFIED BY THE PRECEDING EMPLOYER IN THE REPORT REQUIRED BY
27 SECTION 315(A)(3) OF THIS ACT SHALL BE CHARGED TO THE SUCCESSOR-
28 IN-INTEREST. THE REMAINING COMPENSATION SHALL BE CHARGED TO THE
29 PRECEDING EMPLOYER.
30 (E) IN THE EVENT OF A PART TRANSFER OF AN EXPERIENCE RECORD
20050S0464B0765 - 15 -
1 AND RESERVE ACCOUNT BALANCE UNDER THE PROVISIONS OF PARAGRAPH
2 (1)(B) OF THIS SUBSECTION, COMPENSATION PAID AFTER THE DATE OF
3 THE TRANSFER OF ORGANIZATION, TRADE, BUSINESS OR WORK FORCE,
4 BASED ON WAGES PAID BY THE PRECEDING EMPLOYER BEFORE THE DATE OF
5 SUCH TRANSFER, SHALL BE CHARGED TO THE RESPECTIVE EXPERIENCE
6 RECORDS AND RESERVE ACCOUNTS OF THE PRECEDING EMPLOYER AND
7 SUCCESSOR-IN-INTEREST IN ACCORDANCE WITH THE FOLLOWING:
8 (I) COMPENSATION PAID TO INDIVIDUALS IDENTIFIED BY THE
9 PRECEDING EMPLOYER IN THE REPORT REQUIRED BY SECTION 315(A)(3)
10 OF THIS ACT SHALL BE CHARGED TO THE SUCCESSOR-IN-INTEREST. THE
11 REMAINING COMPENSATION SHALL BE CHARGED TO THE PRECEDING
12 EMPLOYER.
13 (II) IF THE PRECEDING EMPLOYER FAILS TO FURNISH THE REPORT
14 REQUIRED BY SECTION 315(A)(3) OF THIS ACT IN ACCORDANCE WITH
15 SECTION 315(B) OF THIS ACT, THE DEPARTMENT SHALL DETERMINE,
16 BASED ON AVAILABLE INFORMATION AND WITHIN THE DEPARTMENT'S
17 DISCRETION, WHETHER THE COMPENSATION SHALL BE CHARGED TO THE
18 PRECEDING EMPLOYER, THE SUCCESSOR-IN-INTEREST, OR BOTH, AND, IF
19 THE DEPARTMENT DETERMINES THAT THE COMPENSATION SHALL BE CHARGED
20 TO BOTH THE PRECEDING EMPLOYER AND THE SUCCESSOR-IN-INTEREST,
21 WHAT PORTION OF THE COMPENSATION SHALL BE CHARGED TO EACH.
22 (3) A SUCCESSOR-IN-INTEREST WHO ACQUIRES FROM A PRECEDING
23 EMPLOYER THE WHOLE OR A PART OF A RESERVE BALANCE WHICH HAS BEEN
24 ADJUSTED TO A NEGATIVE BALANCE EQUAL TO TEN PER CENTUM (10%), OR
25 TWENTY PER CENTUM (20%) IN 1987 AND THEREAFTER, OF HIS AVERAGE
26 ANNUAL PAYROLL UNDER THE PROVISIONS OF SECTION 302(C) OF THIS
27 ACT SHALL BE LIABLE FOR CONTRIBUTIONS AT THE MAXIMUM RATE UNDER
28 THE PROVISIONS OF SECTION 301.1(F) OF THIS ACT AND CONTRIBUTIONS
29 UNDER THE PROVISIONS OF SECTIONS 301.2 AND 301.6 OF THIS ACT IN
30 THE SAME MANNER AS THE PRECEDING EMPLOYER WITH RESPECT TO THE
20050S0464B0765 - 16 -
1 PART OF THE ORGANIZATION, TRADE OR BUSINESS TRANSFERRED. THIS
2 PROVISION SHALL NOT APPLY IF THE SUCCESSOR-IN-INTEREST AS OF ANY
3 COMPUTATION DATE HAS BEEN SUBJECT TO THIS ACT FOR FOURTEEN OR
4 MORE CONSECUTIVE CALENDAR QUARTERS, OR HAS BEEN SUBJECT TO THIS
5 ACT FOR A PERIOD AS LONG AS OR LONGER THAN THE PRECEDING
6 EMPLOYER.
7 (4) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (3) OF THIS
8 SUBSECTION AND SECTION 301.1(F), A SUCCESSOR-IN-INTEREST WHO
9 ACQUIRES FROM A PRECEDING EMPLOYER THE WHOLE OR A PART OF A
10 RESERVE BALANCE WHICH HAS BEEN ADJUSTED TO A NEGATIVE BALANCE
11 UNDER THE PROVISIONS OF SECTION 302(C)(2), SHALL BE LIABLE FOR
12 CONTRIBUTIONS AT THE RATE DETERMINED UNDER THE PROVISIONS OF
13 SECTIONS 301.1, 301.2 AND 301.6 IN THE SAME MANNER AS THE
14 PRECEDING EMPLOYER WITH RESPECT TO THE PART OF THE ORGANIZATION,
15 TRADE OR BUSINESS TRANSFERRED. THIS PROVISION SHALL NOT APPLY IF
16 THE SUCCESSOR-IN-INTEREST, AS OF ANY COMPUTATION DATE, HAS BEEN
17 SUBJECT TO THIS ACT FOR FOURTEEN OR MORE CONSECUTIVE CALENDAR
18 QUARTERS OR HAS BEEN SUBJECT TO THIS ACT FOR A PERIOD AS LONG AS
19 OR LONGER THAN THE PRECEDING EMPLOYER.
20 * * *
21 (J) IF THE DEPARTMENT FINDS THAT IT HAS ERRONEOUSLY NOTIFIED
22 AN EMPLOYER THAT HIS RATE OF CONTRIBUTION IS LESS THAN THE RATE
23 TO WHICH HE IS ENTITLED, HE SHALL BE NOTIFIED OF THE REVISION OF
24 HIS RATE AND HE SHALL BE REQUIRED TO MAKE PAYMENT OF ADDITIONAL
25 CONTRIBUTIONS ON THE BASIS OF THE REVISED RATE: PROVIDED, THAT
26 NO SUCH ADDITIONAL CONTRIBUTION SHALL BE REQUIRED UNLESS THE
27 EMPLOYER IS NOTIFIED OF HIS REVISED RATE NOT LATER THAN DECEMBER
28 THIRTY-FIRST OF THE CALENDAR YEAR TO WHICH THE RATE IS
29 APPLICABLE, UNLESS THE DEPARTMENT FINDS THAT THE EMPLOYER HAS
30 DIRECTLY OR INDIRECTLY CONTRIBUTED TO THE ERROR[. NO]: PROVIDED
20050S0464B0765 - 17 -
1 FURTHER, THAT NO INTEREST SHALL BE REQUIRED TO BE PAID IN
2 CONNECTION WITH SUCH ADDITIONAL CONTRIBUTIONS IF THEY ARE PAID
3 WITHIN THIRTY (30) DAYS FROM THE DATE THAT THE EMPLOYER IS
4 NOTIFIED OF HIS REVISED RATE[.], UNLESS THE DEPARTMENT FINDS
5 THAT THE EMPLOYER HAS DIRECTLY OR INDIRECTLY CONTRIBUTED TO THE
6 ERROR.
7 * * *
8 SECTION 5. SECTION 308 OF THE ACT, AMENDED JULY 21, 1983
9 (P.L.68, NO.30), IS AMENDED TO READ:
10 SECTION 308. INTEREST ON PAST DUE CONTRIBUTIONS.--
11 CONTRIBUTIONS UNPAID ON THE DATE ON WHICH THEY ARE DUE AND
12 PAYABLE, AS PRESCRIBED BY THE DEPARTMENT, SHALL BEAR INTEREST AT
13 ONE-TWELFTH (1/12) OF THE ANNUAL RATE DETERMINED BY THE
14 SECRETARY OF REVENUE UNDER SECTION 806 OF THE ACT OF APRIL 9,
15 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE," PER MONTH OR
16 FRACTION OF A MONTH, OR AT THE RATE OF THREE QUARTERS OF ONE PER
17 CENTUM (0.75%) PER MONTH OR FRACTION OF A MONTH, WHICHEVER IS
18 GREATER, FROM THE DATE THEY BECOME DUE UNTIL PAID.
19 SECTION 6. SECTION 309.2 OF THE ACT, AMENDED SEPTEMBER 29,
20 1951 (P.L.1580, NO.408), IS AMENDED TO READ:
21 SECTION 309.2. LIMITATIONS UPON ENFORCEMENT OF PAYMENT OF
22 CONTRIBUTIONS, INTEREST AND PENALTIES.--(A) NOTWITHSTANDING ANY
23 OTHER PROVISIONS OF THIS ACT TO THE CONTRARY, NO LEGAL ACTION
24 FOR THE COLLECTION OF CONTRIBUTIONS, INTEREST AND PENALTIES
25 SHALL BE INSTITUTED AFTER THE EXPIRATION OF FOUR YEARS FROM THE
26 END OF THE CALENDAR YEAR [IN WHICH THE WAGES WERE PAID WITH
27 RESPECT TO WHICH LIABILITY FOR THE PAYMENT OF SUCH
28 CONTRIBUTIONS, INTEREST OR PENALTIES, AS THE CASE MAY BE, WAS
29 BASED,] DETERMINED IN ACCORDANCE WITH SUBSECTION (B) OF THIS
30 SECTION, UNLESS PRIOR TO THE EXPIRATION OF SUCH FOUR-YEAR PERIOD
20050S0464B0765 - 18 -
1 AND WITH RESPECT THERETO (1) AN ASSESSMENT PROCEEDING SHALL HAVE
2 BEEN INSTITUTED PURSUANT TO THE PROVISIONS OF SECTION THREE
3 HUNDRED FOUR OF THIS ACT, OR (2) AN ACTION SHALL HAVE BEEN
4 INSTITUTED PURSUANT TO THE PROVISIONS OF SECTION THREE HUNDRED
5 NINE OF THIS ACT, OR (3) A LIEN SHALL HAVE BEEN ENTERED PURSUANT
6 TO THE PROVISIONS OF SECTION THREE HUNDRED EIGHT POINT ONE OF
7 THIS ACT: PROVIDED, THAT THE PROVISIONS OF THIS SECTION SHALL
8 NOT APPLY WHERE AN EMPLOYER BY WILLFUL FAILURE OR REFUSAL TO
9 FILE A REPORT WITH THE DEPARTMENT OR TO INCLUDE IN ANY REPORT
10 ALL WAGES WHICH HE HAS PAID, OR OTHERWISE, HAS ATTEMPTED TO
11 AVOID OR REDUCE LIABILITY FOR THE PAYMENT OF CONTRIBUTIONS.
12 (B) THE CALENDAR YEAR REFERENCED IN SUBSECTION (A) OF THIS
13 SECTION SHALL BE THE LATER OF THE FOLLOWING CALENDAR YEARS: (1)
14 THE CALENDAR YEAR IN WHICH THE WAGES WERE PAID WITH RESPECT TO
15 WHICH LIABILITY FOR THE PAYMENT OF CONTRIBUTIONS, INTEREST OR
16 PENALTIES, AS THE CASE MAY BE, IS BASED, OR (2) WITH RESPECT TO
17 CONTRIBUTIONS, INTEREST OR PENALTIES DUE ON WAGES PAID BY A
18 SUCCESSOR-IN-INTEREST AFTER A TRANSFER OF ORGANIZATION, TRADE,
19 BUSINESS OR WORK FORCE, IN WHOLE OR IN PART, FROM A PRECEDING
20 EMPLOYER, THE CALENDAR YEAR IN WHICH THE SUCCESSOR-IN-INTEREST
21 FILES THE REPORT REQUIRED BY SECTION 315(A)(2) OF THIS ACT IN
22 ACCORDANCE WITH SECTION 315(B) OF THIS ACT.
23 SECTION 7. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
24 SECTION 315. REGISTRATION AND OTHER REPORTS.--(A) IN
25 ADDITION TO REPORTS OTHERWISE REQUIRED BY THIS ACT AND THE RULES
26 AND REGULATIONS OF THE DEPARTMENT, THE FOLLOWING REPORTS SHALL
27 BE MADE TO THE DEPARTMENT:
28 (1) EACH PERSON, CORPORATION, UNINCORPORATED ASSOCIATION OR
29 ANY OTHER ENTITY, FOR WHOM SERVICES ARE PERFORMED FOR
30 REMUNERATION BY ANY INDIVIDUAL, SHALL REGISTER WITH THE
20050S0464B0765 - 19 -
1 DEPARTMENT WITHIN THIRTY (30) DAYS AFTER SERVICES ARE FIRST
2 PERFORMED FOR THE PERSON OR ENTITY OR WITHIN THIRTY (30) DAYS
3 AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH IF SERVICES WERE
4 FIRST PERFORMED FOR THE PERSON OR ENTITY PRIOR TO THE EFFECTIVE
5 DATE OF THIS PARAGRAPH AND THE PERSON OR ENTITY DID NOT REGISTER
6 PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH.
7 (2) AN EMPLOYER THAT TRANSFERS ITS ORGANIZATION, TRADE,
8 BUSINESS OR WORK FORCE, IN WHOLE OR IN PART, WHETHER SUCH
9 TRANSFER WAS BY MERGER, CONSOLIDATION, SALE OR TRANSFER, DESCENT
10 OR OTHERWISE, AND THE PERSON, CORPORATION, UNINCORPORATED
11 ASSOCIATION OR OTHER ENTITY TO WHOM THE TRANSFER IS MADE, SHALL
12 REPORT THE TRANSFER TO THE DEPARTMENT. FOR TRANSFERS OCCURRING
13 ON OR AFTER JANUARY 1, 2004, THE REPORT SHALL BE MADE WITHIN
14 THIRTY (30) DAYS AFTER THE DATE OF THE TRANSFER OR WITHIN THIRTY
15 (30) DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION IF THE
16 TRANSFER OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION
17 AND THE EMPLOYER, INDIVIDUAL OR ENTITY DID NOT REPORT THE
18 TRANSFER PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. IF THE
19 TRANSFER OCCURRED ON OR BEFORE DECEMBER 31, 2003, THE REPORT
20 SHALL BE MADE WITHIN THIRTY (30) DAYS AFTER IT IS REQUESTED BY
21 THE DEPARTMENT.
22 (3) IN THE EVENT OF A PART TRANSFER OF AN EMPLOYER'S
23 ORGANIZATION, TRADE, BUSINESS OR WORK FORCE UNDER SECTION
24 301(D)(1)(A) OR (B) OF THIS ACT, THE PRECEDING EMPLOYER SHALL
25 IDENTIFY THE INDIVIDUALS WHO WERE EMPLOYED IN THE PART
26 TRANSFERRED TO THE SUCCESSOR-IN-INTEREST DURING THE CALENDAR
27 QUARTER IN WHICH THE TRANSFER OCCURRED AND THE EIGHT (8)
28 IMMEDIATELY PRECEDING CALENDAR QUARTERS. THE REPORT SHALL BE
29 MADE WITHIN THIRTY (30) DAYS AFTER IT IS REQUESTED BY THE
30 DEPARTMENT.
20050S0464B0765 - 20 -
1 (4) AN INDIVIDUAL OR ENTITY TO WHOM SOME OR ALL OF A WORK
2 FORCE IS TRANSFERRED, AS PART OF OR RESULTING IN AN ARRANGEMENT
3 DESCRIBED UNDER SECTION 4(J)(2.1) OF THIS ACT, SHALL FILE A
4 REPORT WITH THE DEPARTMENT FOR EACH CALENDAR QUARTER. THE
5 INDIVIDUAL OR ENTITY MAY FILE ONE REPORT FOR ALL SUCH
6 ARRANGEMENTS. THE REPORT SHALL BE FILED ON OR BEFORE THE LAST
7 DAY OF THE MONTH WHICH IMMEDIATELY FOLLOWS THE END OF THE
8 CALENDAR QUARTER FOR WHICH THE REPORT IS FILED.
9 (B) ALL REPORTS REQUIRED BY THIS SECTION OR ANY OTHER
10 PROVISION OF THIS ACT OR THE RULES AND REGULATIONS OF THE
11 DEPARTMENT SHALL BE MADE IN THE MANNER PRESCRIBED BY THE
12 DEPARTMENT AND CONTAIN ALL INFORMATION REQUIRED BY THE
13 DEPARTMENT.
14 SECTION 8. SECTION 601.1 OF THE ACT, AMENDED MAY 17, 1957
15 (P.L.153, NO.72) AND JULY 21, 1983 (P.L.68, NO.30), IS AMENDED
16 TO READ:
17 SECTION 601.1. SPECIAL ADMINISTRATION FUND.--(A) THERE IS
18 HEREBY CREATED A SPECIAL FUND, SEPARATE AND APART FROM ALL
19 PUBLIC MONEYS OR FUNDS OF THIS COMMONWEALTH, TO BE KNOWN AS THE
20 SPECIAL ADMINISTRATION FUND. UNDER RULES AND REGULATIONS ADOPTED
21 BY THE DEPARTMENT, INTEREST AND PENALTIES COLLECTED FROM
22 EMPLOYERS UNDER THE PROVISIONS OF THIS ACT MAY BE PAID INTO THE
23 SPECIAL ADMINISTRATION FUND. SUCH RULES AND REGULATIONS MAY
24 PROVIDE FOR DETERMINING IN ANY MANNER WHICH PAYMENTS OF INTEREST
25 AND PENALTIES ARE TO BE PAID INTO THE SPECIAL ADMINISTRATION
26 FUND AND WHICH PAYMENTS OF INTEREST AND PENALTIES ARE TO BE PAID
27 INTO THE UNEMPLOYMENT COMPENSATION FUND. THE MONEYS IN THIS FUND
28 SHALL BE USED FOR THE PAYMENT OF COSTS OF ADMINISTRATION WHICH
29 ARE FOUND NOT TO HAVE BEEN PROPERLY AND VALIDLY CHARGEABLE
30 AGAINST FEDERAL GRANTS OR OTHER FUNDS RECEIVED FOR OR IN THE
20050S0464B0765 - 21 -
1 ADMINISTRATION FUND. SAID MONEYS SHALL NOT BE EXPENDED OR
2 AVAILABLE FOR EXPENDITURE IN ANY MANNER WHICH WOULD PERMIT THEIR
3 SUBSTITUTION FOR, OR A CORRESPONDING REDUCTION IN, FEDERAL FUNDS
4 WHICH WOULD IN THE ABSENCE OF SAID MONEYS BE AVAILABLE TO
5 FINANCE EXPENDITURES FOR THE ADMINISTRATION OF THIS ACT. NOTHING
6 IN THIS SECTION SHALL PREVENT SAID MONEYS FROM BEING USED AS A
7 REVOLVING FUND TO COVER EXPENDITURES NECESSARY AND PROPER UNDER
8 THE LAW FOR WHICH FEDERAL FUNDS HAVE BEEN DULY REQUESTED BUT NOT
9 YET RECEIVED, SUBJECT TO THE CHARGING OF SUCH EXPENDITURES
10 AGAINST SUCH FUNDS WHEN RECEIVED. THE STATE TREASURER SHALL MAKE
11 PAYMENT OF OBLIGATIONS FROM THE SPECIAL ADMINISTRATION FUND AS
12 HEREIN PROVIDED, UPON REQUISITION OF THE SECRETARY AND
13 CERTIFICATION BY HIM THAT NO OTHER FUNDS ARE AVAILABLE OR CAN
14 PROPERLY BE USED TO FINANCE SUCH EXPENDITURES. THE MONEYS IN
15 THIS FUND ARE HEREBY SPECIFICALLY MADE AVAILABLE TO REPLACE ANY
16 MONEYS RECEIVED PURSUANT TO SECTION THREE HUNDRED AND TWO OF THE
17 FEDERAL SOCIAL SECURITY ACT, AS AMENDED, WHICH, BECAUSE OF ANY
18 ACTION OR CONTINGENCY, HAVE BEEN LOST OR HAVE BEEN EXPENDED FOR
19 PURPOSES OTHER THAN, OR IN AMOUNTS IN EXCESS OF, THOSE NECESSARY
20 FOR THE PROPER ADMINISTRATION OF THIS ACT AND ARE AVAILABLE FOR
21 SUCH REPLACEMENT, WHETHER OR NOT SUCH MONEYS WERE EXPENDED OR
22 THE OBLIGATIONS COVERING SUCH EXPENDITURES WERE INCURRED PRIOR
23 OR SUBSEQUENT TO THE ENACTMENT OF THIS AMENDMENT. THE MONEYS IN
24 THIS FUND SHALL BE CONTINUOUSLY AVAILABLE FOR EXPENDITURE IN
25 ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, AND SHALL NOT
26 LAPSE AT ANY TIME OR BE TRANSFERRED TO ANY OTHER FUND EXCEPT AS
27 HEREIN PROVIDED AND AS PROVIDED UNDER SECTION THREE HUNDRED
28 ELEVEN, WHEREIN AN AMOUNT EQUAL TO ANY REFUND OR CREDIT OF
29 INTEREST OR PENALTIES SHALL BE TRANSFERRED FROM THE SPECIAL
30 ADMINISTRATION FUND TO THE UNEMPLOYMENT COMPENSATION FUND.
20050S0464B0765 - 22 -
1 (B) [AT THE CLOSE OF EACH FISCAL YEAR ALL] ALL MONEYS IN THE
2 FUND IN EXCESS OF TWO HUNDRED THOUSAND DOLLARS ($200,000) ON
3 JUNE 25TH OF EACH YEAR SHALL BE TRANSFERRED TO EITHER THE
4 UNEMPLOYMENT COMPENSATION FUND AND CREDITED TO THE EMPLOYERS'
5 CONTRIBUTION ACCOUNT AS SPECIFIED IN SECTION 601[.] OR THE JOB
6 TRAINING FUND AS SPECIFIED IN SECTION 601.4, OR TRANSFERRED TO
7 BOTH, AS DETERMINED BY THE DEPARTMENT, IN CONSULTATION WITH THE
8 SECRETARY OF THE BUDGET. IF THE DEPARTMENT DETERMINES THAT SUCH
9 EXCESS SHALL BE TRANSFERRED TO BOTH THE UNEMPLOYMENT
10 COMPENSATION FUND AND THE JOB TRAINING FUND, THE DEPARTMENT, IN
11 CONSULTATION WITH THE SECRETARY OF THE BUDGET, SHALL DETERMINE
12 WHAT PORTION OF SUCH EXCESS IS TRANSFERRED TO EACH FUND.
13 SECTION 9. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
14 SECTION 601.4. JOB TRAINING FUND.--(A) THERE IS HEREBY
15 CREATED A SPECIAL FUND TO BE KNOWN AS THE JOB TRAINING FUND.
16 DEPOSITS IN THE FUND SHALL INCLUDE MONEYS TRANSFERRED FROM THE
17 SPECIAL ADMINISTRATION FUND PURSUANT TO SECTION 601.1(B) AND
18 OTHER MONEYS APPROPRIATED TO THE FUND.
19 (B) SUBJECT TO THE PROVISIONS OF SUBSECTIONS (C) AND (D),
20 THE MONEYS IN THIS FUND ARE HEREBY APPROPRIATED, UPON APPROVAL
21 OF THE GOVERNOR, TO THE DEPARTMENT OF LABOR AND INDUSTRY FOR THE
22 FOLLOWING PURPOSES:
23 (1) JOB TRAINING PROGRAMS FOR INCUMBENT WORKERS, DISLOCATED
24 WORKERS, ADULT AND YOUTH WORKERS, AND ANY OTHER WORK FORCE
25 DEVELOPMENT TRAINING PROGRAM, INCLUDING EQUIPMENT AND SUPPLIES.
26 (2) JOB TRAINING EQUIPMENT, SUBJECT TO A REQUIREMENT FOR
27 MATCHING FUNDS FROM A SOURCE OTHER THAN STATE FUNDING.
28 (3) THE COSTS OF ADMINISTERING SUCH TRAINING PROGRAM.
29 (4) THE COSTS OF COLLECTING INTEREST AND PENALTIES UNDER
30 THIS ACT THAT ARE TRANSFERRED FROM THE SPECIAL ADMINISTRATION
20050S0464B0765 - 23 -
1 FUND.
2 (C) MONEYS FROM THE FUND SHALL BE MADE AVAILABLE IN THE
3 FOLLOWING ORDER OF PRIORITY:
4 (1) COUNTIES OF THE SIXTH, SEVENTH AND EIGHTH CLASS.
5 (2) COUNTIES OF THE FIRST, SECOND, SECOND A, THIRD, FOURTH
6 AND FIFTH CLASS, PROVIDED THAT THERE ARE INSUFFICIENT
7 APPLICATIONS FOR FUNDING UNDER PARAGRAPH (1) AND TO THE EXTENT
8 THAT FUNDS REMAINS AVAILABLE.
9 (D) THE DEPARTMENT SHALL MAKE FUNDS AVAILABLE TO ELIGIBLE
10 ENTITIES AS DETERMINED UNDER SUBSECTION (E) BASED ON A
11 COMPETITIVE APPLICATION PROCESS AS DETERMINED BY THE DEPARTMENT.
12 IN DISTRIBUTING FUNDING UNDER THIS SECTION, PREFERENTIAL
13 CONSIDERATION SHALL BE GIVEN TO THOSE COUNTIES WITH A HIGHER
14 UNEMPLOYMENT RATE. DISTRIBUTION OF FUNDS SHALL BE DETERMINED BY
15 REVIEW OF ALL APPLICATIONS SUBMITTED BY ELIGIBLE ENTITIES WITHIN
16 THE TIME PERIOD AUTHORIZED BY THE DEPARTMENT.
17 (E) FUNDING SHALL BE MADE AVAILABLE ONLY FOR THOSE ENTITIES
18 IDENTIFIED IN THIS SECTION WHICH PROVIDE WORK FORCE EDUCATION
19 PROGRAMS AND SERVICES. ELIGIBLE ENTITIES SHALL INCLUDE:
20 (1) EMPLOYMENT AND TRAINING PROGRAM PROVIDERS RECEIVING
21 FINANCIAL ASSISTANCE FROM THE COMMONWEALTH OR FROM OTHER SOURCES
22 OF PUBLIC FUNDING.
23 (2) NOT-FOR-PROFIT ORGANIZATIONS OFFERING PUBLICLY FUNDED
24 EMPLOYMENT TRAINING PROGRAMS.
25 (3) CAREER AND TECHNICAL INSTITUTES.
26 (4) HIGH SCHOOLS WITH EIGHT OR MORE VOCATIONAL EDUCATION
27 PROGRAMS.
28 (5) HIGHER EDUCATION INSTITUTIONS OFFERING PUBLICLY FUNDED
29 EMPLOYMENT AND TRAINING PROGRAMS, INCLUDING:
30 (I) STATE-RELATED INSTITUTIONS AND THEIR BRANCH CAMPUSES.
20050S0464B0765 - 24 -
1 (II) STATE-OWNED INSTITUTIONS WITHIN THE STATE SYSTEM OF
2 HIGHER EDUCATION UNDER ARTICLE XX-A OF THE ACT OF MARCH 10, 1949
3 (P.L.30, NO.14), KNOWN AS THE "PUBLIC SCHOOL CODE OF 1949."
4 (III) COMMUNITY COLLEGES ESTABLISHED AND OPERATED UNDER
5 ARTICLE XIX-A OF THE "PUBLIC SCHOOL CODE OF 1949."
6 (F) THE MONEYS IN THIS FUND SHALL BE CONTINUOUSLY AVAILABLE
7 FOR EXPENDITURE IN ACCORDANCE WITH THE PROVISIONS OF THIS
8 SECTION, AND SHALL NOT LAPSE AT ANY TIME NOR BE TRANSFERRED TO
9 ANY OTHER FUND.
10 (G) FOR PURPOSES OF THIS SECTION, THE TERM "STATE-RELATED
11 INSTITUTIONS" SHALL INCLUDE THE PENNSYLVANIA STATE UNIVERSITY,
12 THE UNIVERSITY OF PITTSBURGH, TEMPLE UNIVERSITY, LINCOLN
13 UNIVERSITY AND ANY OTHER INSTITUTION THAT IS HEREAFTER
14 DESIGNATED AS "STATE-RELATED" BY THE COMMONWEALTH.
15 SECTION 10. SECTION 603 OF THE ACT, AMENDED JULY 21, 1983
16 (P.L.68, NO.30), IS AMENDED TO READ:
17 SECTION 603. STATE TREASURER AS CUSTODIAN.--THE STATE
18 TREASURER SHALL BE THE CUSTODIAN OF THE UNEMPLOYMENT
19 COMPENSATION FUND, THE ADMINISTRATION FUND, THE SPECIAL
20 ADMINISTRATION FUND [AND], THE INTEREST FUND AND THE JOB
21 TRAINING FUND. HE SHALL GIVE A BOND, OR BONDS, WITH CORPORATE
22 SURETIES, CONDITIONED UPON THE FAITHFUL PERFORMANCE OF HIS
23 DUTIES AS CUSTODIAN OF SUCH FUNDS IN SUCH AMOUNT OR AMOUNTS AS
24 SHALL BE DETERMINED AND FIXED BY THE EXECUTIVE BOARD OF THIS
25 COMMONWEALTH. PREMIUMS FOR SUCH BOND OR BONDS SHALL BE PAID BY
26 THE DEPARTMENT OUT OF THE MONEYS IN THE ADMINISTRATION FUND. ALL
27 MONEYS BELONGING TO SUCH FUNDS (EXCLUSIVE OF MONEYS ON DEPOSIT
28 IN THE UNEMPLOYMENT TRUST FUND AS PROVIDED IN SECTION 601) SHALL
29 BE DEPOSITED BY THE STATE TREASURER IN ANY BANKS OR PUBLIC
30 DEPOSITORIES IN WHICH GENERAL FUNDS OF THE COMMONWEALTH MAY BE
20050S0464B0765 - 25 -
1 DEPOSITED, BUT NO PUBLIC DEPOSIT INSURANCE CHARGE OR PREMIUM
2 SHALL BE PAID OUT OF MONEYS IN THE UNEMPLOYMENT COMPENSATION
3 FUND. ANY LAW TO THE CONTRARY NOTWITHSTANDING, ALL PAYMENTS FROM
4 SUCH FUNDS SHALL BE MADE UNDER SUCH SYSTEMS OF REQUISITIONING
5 AND ACCOUNTING AS THE GOVERNOR, THE STATE TREASURER, AND
6 SECRETARY SHALL DETERMINE.
7 SECTION 11. SECTION 802 OF THE ACT, AMENDED DECEMBER 9, 2002
8 (P.L.1336, NO.158), IS AMENDED TO READ:
9 SECTION 802. FALSE STATEMENTS AND REPRESENTATIONS TO PREVENT
10 OR REDUCE COMPENSATION, AND OTHER OFFENSES.--(A) ANY EMPLOYER
11 (WHETHER OR NOT LIABLE FOR THE PAYMENT OF CONTRIBUTIONS UNDER
12 THIS ACT) OR ANY OFFICER OR AGENT OF SUCH EMPLOYER OR ANY OTHER
13 PERSON WHO DOES ANY OF THE FOLLOWING COMMITS A SUMMARY OFFENSE
14 AND SHALL, UPON CONVICTION, BE SENTENCED TO PAY A FINE OF NOT
15 LESS THAN ONE HUNDRED DOLLARS NOR MORE THAN FIFTEEN HUNDRED
16 DOLLARS OR TO IMPRISONMENT FOR NOT LONGER THAN THIRTY DAYS, OR
17 BOTH:
18 (1) MAKES A FALSE STATEMENT OR REPRESENTATION KNOWING IT TO
19 BE FALSE, OR WHO KNOWINGLY FAILS TO DISCLOSE A MATERIAL FACT TO
20 PREVENT OR REDUCE THE PAYMENT OF COMPENSATION TO ANY EMPLOYE
21 ENTITLED THERETO, OR TO AVOID BECOMING OR REMAINING SUBJECT
22 HERETO, OR TO AVOID OR REDUCE ANY CONTRIBUTION OR OTHER PAYMENT
23 REQUIRED FROM AN EMPLOYER UNDER THIS ACT[, OR WHO];
24 (2) WILFULLY FAILS OR REFUSES TO MAKE ANY SUCH CONTRIBUTION
25 OR OTHER PAYMENT [OR TO FURNISH ANY REPORTS] REQUIRED
26 HEREUNDER[, OR WHO];
27 (3) WILFULLY FAILS OR REFUSES TO PRODUCE OR PERMIT THE
28 INSPECTION OR COPYING OF RECORDS AS REQUIRED HEREUNDER[, SHALL,
29 UPON CONVICTION THEREOF IN A SUMMARY PROCEEDING, BE SENTENCED TO
30 PAY A FINE OF NOT LESS THAN ONE HUNDRED DOLLARS NOR MORE THAN
20050S0464B0765 - 26 -
1 FIFTEEN HUNDRED DOLLARS OR TO IMPRISONMENT FOR NOT LONGER THAN
2 THIRTY DAYS, OR BOTH.];
3 (4) WILFULLY FAILS OR REFUSES TO FURNISH ANY REPORT REQUIRED
4 BY SECTION 304 OR 315 OF THIS ACT OR ANY OTHER PROVISION OF THIS
5 ACT OR THE RULES OR REGULATIONS OF THE DEPARTMENT; OR
6 (5) WILFULLY REPORTS OR ATTEMPTS TO REPORT THE WAGES OF ONE
7 OR MORE EMPLOYES TO THE DEPARTMENT ON AN UNEMPLOYMENT
8 COMPENSATION ACCOUNT OTHER THAN THE ACCOUNT OF THE EMPLOYER
9 UNDER THIS ACT; OR
10 (6) WILFULLY ADVISES, SOLICITS, ENCOURAGES OR COMMANDS AN
11 EMPLOYER OR AN OFFICER OR AGENT OF AN EMPLOYER OR ANY OTHER
12 PERSON TO ENGAGE IN AN ACT OR OMISSION THAT IS AN OFFENSE UNDER
13 THIS SECTION.
14 (B) THE NUMBER OF OFFENSES UNDER SUBSECTION (A) SHALL BE
15 DETERMINED AS FOLLOWS:
16 (1) EACH [SUCH] FALSE STATEMENT OR REPRESENTATION OR FAILURE
17 TO DISCLOSE A MATERIAL FACT[, AND EACH DAY OF SUCH FAILURE OR
18 REFUSAL] SHALL CONSTITUTE A SEPARATE OFFENSE[.] UNDER SUBSECTION
19 (A)(1) OF THIS SECTION.
20 (2) EACH DAY OF FAILURE OR REFUSAL SHALL CONSTITUTE A
21 SEPARATE OFFENSE UNDER SUBSECTION (A)(2), (3) AND (4) OF THIS
22 SECTION.
23 (3) EACH PERSON OR ENTITY FOR WHOM A REGISTRATION IS NOT
24 MADE AS REQUIRED BY SECTION 315(A)(1) OF THIS ACT SHALL BE THE
25 BASIS OF A SEPARATE OFFENSE UNDER SUBSECTION (A)(4) OF THIS
26 SECTION.
27 (4) EACH TRANSFER OF ORGANIZATION, TRADE, BUSINESS OR WORK
28 FORCE THAT IS NOT REPORTED AS REQUIRED BY SECTION 315(A)(2) OR
29 (3) OF THIS ACT SHALL BE THE BASIS OF A SEPARATE OFFENSE UNDER
30 SUBSECTION (A)(4) OF THIS SECTION.
20050S0464B0765 - 27 -
1 (5) EACH REPORT REQUIRED BY SECTION 304 OR 315 OF THIS ACT,
2 OR ANY OTHER PROVISION OF THIS ACT OR THE RULES OR REGULATIONS
3 OF THE DEPARTMENT, SHALL BE THE BASIS OF A SEPARATE OFFENSE
4 UNDER SUBSECTION (A)(4) OF THIS ACT.
5 (6) EACH CALENDAR QUARTER AND EACH ACCOUNT ON WHICH WAGES
6 ARE INCORRECTLY REPORTED SHALL BE THE BASIS OF A SEPARATE
7 OFFENSE UNDER SUBSECTION (A)(5) OF THIS SECTION.
8 (7) EACH INCIDENT OF ADVISING, SOLICITING, ENCOURAGING OR
9 COMMANDING AND EACH EMPLOYER, OFFICER, AGENT OR OTHER PERSON
10 ADVISED, SOLICITED, ENCOURAGED OR COMMANDED SHALL BE THE BASIS
11 OF A SEPARATE OFFENSE UNDER SUBSECTION (A)(6) OF THIS SECTION.
12 (C) IN ADDITION TO ANY OTHER SANCTION, ANY EMPLOYER,
13 OFFICER, AGENT OR OTHER PERSON CONVICTED UNDER THIS SECTION FOR
14 WILLFUL FAILURE OR REFUSAL TO MAKE A PAYMENT SHALL BE ORDERED TO
15 MAKE RESTITUTION OF THE UNPAID AMOUNTS, INCLUDING INTEREST AND
16 PENALTY FROM THE DATE THE PAYMENT WAS DUE THROUGH THE DATE OF
17 PAYMENT.
18 (D) FOR PURPOSES OF THIS SECTION, THE TERMS "WILFULLY" AND
19 "WILLFULLY" SHALL HAVE THE MEANING APPLICABLE TO THE TERM
20 "WILLFULLY" UNDER 18 PA.C.S. § 302 (RELATING TO GENERAL
21 REQUIREMENTS OF CULPABILITY).
22 SECTION 12. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
23 SECTION 802.1. MONETARY PENALTIES.--(A) ANY EMPLOYER
24 (WHETHER OR NOT LIABLE FOR THE PAYMENT OF CONTRIBUTIONS UNDER
25 THIS ACT) OR ANY OFFICER OR AGENT OF SUCH EMPLOYER OR ANY OTHER
26 PERSON WHO DOES ANY OF THE FOLLOWING COMMITS AN OFFENSE FOR
27 WHICH A CIVIL PENALTY SHALL BE ASSESSED BY THE DEPARTMENT:
28 (1) WILFULLY FAILS OR REFUSES TO PRODUCE OR PERMIT THE
29 INSPECTION OR COPYING OF RECORDS AS REQUIRED HEREUNDER;
30 (2) WILFULLY FAILS OR REFUSES TO MAKE ANY REPORT REQUIRED BY
20050S0464B0765 - 28 -
1 SECTION 315(A)(1) OR (2) OF THIS ACT, WILFULLY MAKES OR ATTEMPTS
2 TO MAKE SUCH A REPORT CONTAINING A MISREPRESENTATION OF FACT, OR
3 WILFULLY MAKES OR ATTEMPTS TO MAKE SUCH A REPORT THAT FAILS TO
4 DISCLOSE A MATERIAL FACT;
5 (3) WILFULLY FAILS OR REFUSES TO MAKE ANY REPORT REQUIRED BY
6 SECTION 315(A)(4) OF THIS ACT, WILFULLY MAKES OR ATTEMPTS TO
7 MAKE SUCH A REPORT CONTAINING A MISREPRESENTATION OF FACT, OR
8 WILFULLY MAKES OR ATTEMPTS TO MAKE SUCH A REPORT THAT FAILS TO
9 DISCLOSE A MATERIAL FACT;
10 (4) WILFULLY REPORTS OR ATTEMPTS TO REPORT THE WAGES OF ONE
11 OR MORE EMPLOYES TO THE DEPARTMENT ON AN UNEMPLOYMENT
12 COMPENSATION ACCOUNT OTHER THAN THE ACCOUNT OF THE EMPLOYER
13 UNDER THIS ACT; OR
14 (5) WILFULLY ADVISES, SOLICITS, ENCOURAGES OR COMMANDS AN
15 EMPLOYER OR AN OFFICER OR AGENT OF AN EMPLOYER OR ANY OTHER
16 PERSON TO ENGAGE IN CONDUCT THAT IS AN OFFENSE UNDER THIS
17 SECTION.
18 (B) THE AMOUNT OF A PENALTY UNDER SUBSECTION (A)(1) SHALL
19 NOT EXCEED FIFTEEN HUNDRED DOLLARS FOR EACH DAY OF FAILURE OR
20 REFUSAL.
21 (C) THE AMOUNT OF A PENALTY UNDER SUBSECTION (A)(2) OF THIS
22 SECTION SHALL NOT EXCEED THE GREATER OF TEN THOUSAND DOLLARS OR
23 THE AMOUNT OF THE DIFFERENCE BETWEEN THE AMOUNT OF CONTRIBUTIONS
24 PAYABLE BY THE EMPLOYER AT THE RATE OR RATES OF CONTRIBUTION
25 ASSIGNED BY THE DEPARTMENT IN THE ABSENCE OF THE REPORT OR BASED
26 ON A MISREPRESENTATION OR NONDISCLOSURE IN THE REPORT AND THE
27 AMOUNT OF CONTRIBUTIONS PAYABLE BY THE EMPLOYER AT THE CORRECT
28 RATE OR RATES OF CONTRIBUTION. THE PENALTY SHALL APPLY TO
29 CONTRIBUTIONS FOR CALENDAR QUARTERS FROM THE QUARTER IN WHICH
30 THE REPORT BECAME DUE THROUGH THE QUARTER IN WHICH A REPORT IS
20050S0464B0765 - 29 -
1 FILED THAT DOES NOT CONTAIN A MISREPRESENTATION OR
2 NONDISCLOSURE. EACH EMPLOYER FOR WHOM A REPORT IS NOT MADE OR A
3 REPORT IS MADE CONTAINING A MISREPRESENTATION OR NONDISCLOSURE
4 OR AN ATTEMPT IS MADE TO MAKE A REPORT CONTAINING A
5 MISREPRESENTATION OR NONDISCLOSURE SHALL BE THE BASIS OF A
6 SEPARATE PENALTY.
7 (D) THE AMOUNT OF THE PENALTY UNDER SUBSECTION (A)(3) OF
8 THIS SECTION SHALL NOT EXCEED TEN THOUSAND DOLLARS FOR EACH
9 REPORT THAT IS NOT MADE, EACH REPORT CONTAINING A
10 MISREPRESENTATION OR NONDISCLOSURE, AND EACH ATTEMPT TO MAKE A
11 REPORT CONTAINING A MISREPRESENTATION OR NONDISCLOSURE.
12 (E) THE AMOUNT OF THE PENALTY UNDER SUBSECTION (A)(4) OF
13 THIS SECTION SHALL NOT EXCEED THE GREATER OF TEN THOUSAND
14 DOLLARS OR THE AMOUNT OF THE DIFFERENCE BETWEEN THE AMOUNT OF
15 CONTRIBUTIONS PAYABLE ON THE WAGES AS REPORTED ON AN INCORRECT
16 ACCOUNT, OR THE AMOUNT OF CONTRIBUTIONS THAT WOULD HAVE BEEN
17 PAYABLE IF THE ATTEMPT TO REPORT THE WAGES ON AN INCORRECT
18 ACCOUNT HAD BEEN CONSUMMATED AND THE AMOUNT OF CONTRIBUTIONS
19 PAYABLE ON THE WAGES AS REPORTED ON THE EMPLOYER'S ACCOUNT. EACH
20 CALENDAR QUARTER AND EACH EMPLOYER FOR WHICH WAGES ARE REPORTED
21 ON AN INCORRECT ACCOUNT OR AN ATTEMPT IS MADE TO REPORT WAGES ON
22 AN INCORRECT ACCOUNT SHALL BE THE BASIS OF A SEPARATE PENALTY.
23 (F) THE AMOUNT OF THE PENALTY UNDER SUBSECTION (A)(5) OF
24 THIS SECTION SHALL NOT EXCEED THE GREATER OF TEN THOUSAND
25 DOLLARS OR THE AMOUNT OF THE PENALTY ASSESSED AGAINST THE
26 EMPLOYER, OFFICER, AGENT OR OTHER PERSON WHO IS THE OBJECT OF
27 THE CONDUCT THAT IS AN OFFENSE UNDER SUBSECTION (A)(5) OF THIS
28 SECTION. EACH EMPLOYER, OFFICER, AGENT OR OTHER PERSON WHO IS
29 THE OBJECT OF CONDUCT THAT IS AN OFFENSE UNDER SUBSECTION (A)(5)
30 SHALL BE THE BASIS OF A SEPARATE PENALTY.
20050S0464B0765 - 30 -
1 (G) AN OFFICER OR AGENT OF AN EMPLOYER OR ANY OTHER PERSON
2 ASSESSED A PENALTY UNDER THIS SECTION SHALL BE DEEMED TO BE AN
3 EMPLOYER FOR PURPOSES OF THE ENFORCEMENT AND COLLECTION
4 PROVISIONS OF THIS ACT. A PENALTY ASSESSED UNDER THIS SECTION
5 MAY BE COLLECTED IN THE MANNER PROVIDED IN SECTIONS 308.1,
6 308.2, 308.3 AND 309 OF THIS ACT AND ANY OTHER MANNER PROVIDED
7 BY THIS ACT FOR THE COLLECTION OF CONTRIBUTIONS, INTEREST AND
8 PENALTY.
9 (H) PENALTIES UNDER THIS SECTION SHALL BE ASSESSED IN
10 ACCORDANCE WITH THE PROCEDURES PRESCRIBED IN SECTION 304 OF THIS
11 ACT.
12 (I) FOR PURPOSES OF THIS SECTION, THE TERMS "WILFULLY" AND
13 "WILLFULLY" SHALL HAVE THE MEANING APPLICABLE TO THE TERM
14 "WILLFULLY" UNDER 18 PA.C.S. § 302 (RELATING TO GENERAL
15 REQUIREMENTS OF CULPABILITY).
16 SECTION 13. THIS ACT SHALL APPLY AS FOLLOWS:
17 (1) THE AMENDMENT OF SECTION 4(J) OF THE ACT SHALL APPLY
18 TO SERVICES FOR WHICH REMUNERATION IS PAID ON OR AFTER JULY
19 1, 2005.
20 (2) THE AMENDMENT OF SECTION 301(A)(2) OF THE ACT SHALL
21 APPLY TO RATES OF CONTRIBUTION FOR CALENDAR YEARS BEGINNING
22 ON OR AFTER JANUARY 1, 2006.
23 (3) THE AMENDMENT OF SECTION 301(D) OF THE ACT SHALL
24 APPLY TO TRANSFERS OF ORGANIZATION, TRADE, BUSINESS OR WORK
25 FORCE OCCURRING ON OR AFTER JULY 1, 2005.
26 (4) THE AMENDMENT OF SECTION 301(J) OF THE ACT SHALL
27 APPLY TO THE CALCULATION OF INTEREST ON ADDITIONAL
28 CONTRIBUTIONS THAT ARE UNPAID ON OR AFTER JULY 1, 2005.
29 (5) THE AMENDMENT OF SECTION 308 OF THE ACT SHALL APPLY
30 TO THE CALCULATION OF INTEREST FOR THAT PORTION OF THE PERIOD
20050S0464B0765 - 31 -
1 FROM THE DATE CONTRIBUTIONS BECOME DUE THROUGH THE DATE THEY
2 ARE PAID THAT IS ON OR AFTER JANUARY 1, 2006.
3 (6) SECTION 309.2(B)(2) OF THE ACT SHALL APPLY TO
4 TRANSFERS OF ORGANIZATION, TRADE, BUSINESS OR WORK FORCE
5 OCCURRING ON OR AFTER JULY 1, 2005.
6 (7) SECTION 315(A)(2) AND (3) OF THE ACT SHALL APPLY TO
7 TRANSFERS OCCURRING PRIOR TO, ON OR AFTER JULY 1, 2005.
8 (8) SECTION 315(A)(4) OF THE ACT SHALL APPLY TO CALENDAR
9 QUARTERS BEGINNING ON OR AFTER JULY 1, 2005.
10 SECTION 14. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
11 (1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT JULY 1,
12 2005, OR IMMEDIATELY, WHICHEVER IS LATER:
13 (I) THE AMENDMENT OF SECTION 4(J) OF THE ACT.
14 (II) THE AMENDMENT OF SECTION 301(D) AND (J) OF THE
15 ACT.
16 (III) THE AMENDMENT OF SECTION 309.2(B) OF THE ACT.
17 (IV) THE ADDITION OF SECTION 315(A)(2), (3) AND (4)
18 OF THE ACT.
19 (2) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT JANUARY
20 1, 2006, OR IMMEDIATELY, WHICHEVER IS LATER:
21 (I) THE AMENDMENT OF SECTION 301(A)(2) OF THE ACT.
22 (II) THE AMENDMENT OF SECTION 308 OF THE ACT.
23 (3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
24 IMMEDIATELY.
B10L43DMS/20050S0464B0765 - 32 -