THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY ADOLPH, KILLION, STEVENSON, HENNESSEY, BOYD, BRIGGS, CLYMER, D. COSTA, EVERETT, FAIRCHILD, FARRY, GEIST, HARPER, HUTCHINSON, LEVDANSKY, PICKETT, QUINN, SAYLOR AND SIPTROTH, OCTOBER 9, 2009

REFERRED TO COMMITTEE ON LABOR RELATIONS, OCTOBER 9, 2009  

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," further providing for

eligibility of corporate officers deemed self-employed.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 402.4 of the act of December 5, 1936 (2nd

Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

Compensation Law, added July 21, 1983 (P.L.68, No.30), is

amended to read:

Section 402.4.  Eligibility of Officers of a Corporation

Deemed to be Self-Employed Persons.--(a)  Notwithstanding any

other provision of this act, an officer of a corporation who is 

deemed to be a self-employed person because he exercised a

substantial degree of control over the corporation and who

becomes unemployed [due to the fact that the corporation enters

into involuntary bankruptcy proceedings under the provisions of

Chapter 7, Title 11 of the United States Code] shall be entitled

to receive unemployment compensation under this act[: Provided,

That the wages paid to the officer of a corporation deemed to be

a self-employed person were mandatorily subject to this act]

unless the unemployment is the result of the sale or divestment

of ownership or voluntary termination of the business.

(b)  Unemployment compensation shall be paid to an officer of

a corporation deemed to be a self-employed person, who is

eligible under the provisions of this section, in the same

manner and to the same extent as unemployment compensation paid

to any other eligible claimant under the provisions of this act.

Section 2.  This act shall take effect in 60 days.