| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 1700, 1782, 1849 | PRINTER'S NO. 1870 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER, PILEGGI, GREENLEAF, ERICKSON, VANCE, RAFFERTY AND MENSCH, OCTOBER 24, 2011 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, DECEMBER 14, 2011 |
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| AN ACT |
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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 | definitions, for determination of contribution rate, for |
17 | additional contribution for interest, for trigger |
18 | determination, for collection of contribution and interest |
19 | and injunctions, for compensation rate, for Unemployment |
20 | Compensation Fund, for Interest Fund, for State Treasurer as |
21 | custodian, for recovery and recoupment of compensation; and |
22 | providing for unemployment compensation bonds and for |
23 | unemployment compensation amnesty program. |
24 | The General Assembly of the Commonwealth of Pennsylvania |
25 | hereby enacts as follows: |
26 | Section 1. Sections 4(f) and (x)(1) and 301.1(e) of the act | <-- |
27 | of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known |
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1 | as the Unemployment Compensation Law, amended May 23, 1949 |
2 | (P.L.1738, No.530) and July 21, 1983 (P.L.68, No.30), are |
3 | amended to read: |
4 | Section 1. Section 4(f) of the act of December 5, 1936 (2nd | <-- |
5 | Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment |
6 | Compensation Law, amended May 23, 1949 (P.L.1738, No.530), is |
7 | amended to read: |
8 | Section 4. Definitions.--The following words and phrases, as |
9 | used in this act, shall have the following meanings, unless the |
10 | context clearly requires otherwise. |
11 | * * * |
12 | (f) "Compensation" means: |
13 | (1) money payments payable to individuals with respect to |
14 | their unemployment as provided in this act; and |
15 | (2) to the extent permitted by law, that part of the |
16 | principal owed on bonds issued under Article XIV of this act |
17 | which is attributable to repayment of the principal of advances |
18 | under Title XII of the Social Security Act (42 U.S.C. § 1321 et |
19 | seq.), exclusive of any interest or administrative costs |
20 | associated with the bonds. |
21 | * * * |
22 | (x) "Wages" means all remuneration, (including the cash | <-- |
23 | value of mediums of payment other than cash, except that only |
24 | cash wages shall be used to determine the coverage of |
25 | agricultural labor as defined in section 4(l)(3)(G) and domestic |
26 | service as defined in section 4(l)(3)(H)), paid by an employer |
27 | to an individual with respect to his employment except that the |
28 | term "wages" [for the purpose of paying contributions] shall not |
29 | include: |
30 | (1) [That] For purposes of paying employer contributions, |
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1 | that part of the remuneration [which is in excess of the first |
2 | seven thousand dollars ($7,000) during calendar year 1983 and |
3 | eight thousand dollars ($8,000) during calendar year 1984 and |
4 | thereafter] paid to an individual by each of his employers |
5 | during a calendar year that exceeds eight thousand two hundred |
6 | fifty dollars ($8,250) for calendar year 2012, eight thousand |
7 | five hundred dollars ($8,500) for the calendar year 2013, eight |
8 | thousand seven hundred fifty dollars ($8,750) for calendar year |
9 | 2014, nine thousand dollars ($9,000) for calendar year 2015, |
10 | nine thousand two hundred fifty dollars ($9,250) for calendar |
11 | year 2016, nine thousand five hundred dollars ($9,500) for |
12 | calendar year 2017 and ten thousand dollars ($10,000) for |
13 | calendar year 2018 and thereafter: Provided, That an employer |
14 | may take credit under this subsection for remuneration which his |
15 | predecessor-in-interest has paid to an individual during the |
16 | same calendar year with respect to employment; and provided |
17 | also, that an employer may take credit under this subsection for |
18 | remuneration which he or his predecessor-in-interest has paid to |
19 | an individual in the same calendar year on which contributions |
20 | have been required and paid by such employer under an |
21 | unemployment compensation law of another state, but no such |
22 | credit may be taken for remuneration which has been paid by |
23 | another employer to such individual, whether or not |
24 | contributions have been paid thereon by such other employer |
25 | under this act or under any state unemployment compensation law. |
26 | * * * |
27 | Section 1.1. Section 301.1(e) of the act, amended July 21, | <-- |
28 | 1983 (P.L.68, No.30), is amended to read: |
29 | Section 301.1. Determination of Contribution Rate; |
30 | Experience Rating.-- |
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1 | * * * |
2 | (e) [The] (1) Except as provided in paragraph (2), the | <-- |
3 | State Adjustment Factor for [the] a calendar year [beginning |
4 | January 1, 1984, shall be one and five-tenths per centum (1.5%) |
5 | and thereafter] shall be computed as of the computation date for |
6 | such year to a tenth of a per centum, rounding all fractional |
7 | parts of a tenth of a per centum to the nearest tenth of a per |
8 | centum, but in no event less than zero [nor in excess of one and |
9 | five-tenths per centum (1.5%)], according to the following |
10 | formula: |
11 | Bdr - Dcr | | 12 | Wt | X 100 = State Adjustment Factor |
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13 | in which factor "Bdr" equals the aggregate of (1) all benefits |
14 | paid but not charged to employers' accounts, plus, (2) all |
15 | benefits paid and charged to inactive and terminated employers' |
16 | accounts, plus, (3) all benefits paid and charged to accounts of |
17 | active employers for the preceding year to the extent such |
18 | benefits exceed the combined amount of contributions payable by |
19 | such employers on the basis of the Benefit Ratio Factor and the |
20 | Reserve Ratio Factor. Factor "Dcr" equals the aggregate of (1) |
21 | interest credited to the Unemployment Compensation Fund, plus, |
22 | (2) amounts transferred from the Special Administration Fund and |
23 | the [Interest] Debt Service Fund to the Unemployment |
24 | Compensation Fund, plus, (3) refunds of benefits unlawfully |
25 | paid, plus, (4) amounts credited to the Unemployment |
26 | Compensation Fund by the Federal Government other than by loan, |
27 | except that any amount credited to this Commonwealth's account |
28 | under section 903 of the Federal Social Security Act which has |
29 | been appropriated for expenses of administration shall be |
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1 | excluded from the amount in the Unemployment Compensation Fund |
2 | in the computation of the "Dcr" factor. Factor "Wt" equals all |
3 | wages subject to the law up to the limitation described in |
4 | section 4(x)(1) paid by all employers. Each item in each factor |
5 | shall be computed with respect to the twelve-month period ending |
6 | on the computation date: Provided, That should the computed |
7 | State Adjustment Factor for [calendar year 1984, and] any year |
8 | [thereafter] exceed [one and five-tenths per centum (1.5%)] the |
9 | maximum rate allowed under this section, such excess over [one |
10 | and five-tenths per centum (1.5%)] the maximum rate shall be |
11 | added to the computed State Adjustment Factor for the following |
12 | year or years. |
13 | (2) The maximum State Adjustment Factor shall be one and |
14 | one-tenth per centum (1.1%) for calendar years 2012 through |
15 | 2016, nine-tenths of one per centum (0.9%) for calendar year |
16 | 2017 and seventy-five hundredths of one per centum (0.75%) for |
17 | calendar year 2018 and thereafter. |
18 | * * * |
19 | (e) The State Adjustment Factor for the calendar year | <-- |
20 | beginning January 1, 1984, shall be one and five-tenths per |
21 | centum (1.5%) and thereafter shall be computed as of the |
22 | computation date for such year to a tenth of a per centum, |
23 | rounding all fractional parts of a tenth of a per centum to the |
24 | nearest tenth of a per centum, but in no event less than zero |
25 | nor in excess of one and five-tenths per centum (1.5%), |
26 | according to the following formula: |
27 | Bdr - Dcr |
28 | ----------------------- X 100 = State Adjustment Factor |
29 | Wt |
30 | in which factor "Bdr" equals the aggregate of (1) all benefits |
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1 | paid but not charged to employers' accounts, plus, (2) all |
2 | benefits paid and charged to inactive and terminated employers' |
3 | accounts, plus, (3) all benefits paid and charged to accounts of |
4 | active employers for the preceding year to the extent such |
5 | benefits exceed the combined amount of contributions payable by |
6 | such employers on the basis of the Benefit Ratio Factor and the |
7 | Reserve Ratio Factor. Factor "Dcr" equals the aggregate of (1) |
8 | interest credited to the Unemployment Compensation Fund, plus, |
9 | (2) amounts transferred from the Special Administration Fund and |
10 | the [Interest] Debt Service Fund to the Unemployment |
11 | Compensation Fund, plus, (3) refunds of benefits unlawfully |
12 | paid, plus, (4) amounts credited to the Unemployment |
13 | Compensation Fund by the Federal Government other than by loan, |
14 | except that any amount credited to this Commonwealth's account |
15 | under section 903 of the Federal Social Security Act which has |
16 | been appropriated for expenses of administration shall be |
17 | excluded from the amount in the Unemployment Compensation Fund |
18 | in the computation of the "Dcr" factor. Factor "Wt" equals all |
19 | wages subject to the law up to the limitation described in |
20 | section 4(x)(1) paid by all employers. Each item in each factor |
21 | shall be computed with respect to the twelve-month period ending |
22 | on the computation date: Provided, That should the computed |
23 | State Adjustment Factor for calendar year 1984, and any year |
24 | thereafter exceed one and five-tenths per centum (1.5%), such |
25 | excess over one and five-tenths per centum (1.5%) shall be added |
26 | to the computed State Adjustment Factor for the following year |
27 | or years. |
28 | * * * |
29 | Section 2. Section 301.6 of the act, amended July 1, 1985, |
30 | (P.L.96, No.30), is amended to read: |
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1 | Section 301.6. Additional Contribution for Interest.--(a) |
2 | Notwithstanding any other provision of this act, all employers |
3 | required to pay contributions under section 301 or 301.1 other |
4 | than those employers covered by paragraphs (3) and (4) of |
5 | subsection (a) of section 301 shall have their rate of |
6 | contribution increased by the rate of the Interest Factor in |
7 | effect for the applicable calendar year. |
8 | (b) All taxes collected under this section shall be |
9 | considered to be separate and apart from any contributions |
10 | required to be deposited in the Unemployment Compensation Fund. |
11 | All taxes collected under this section shall be deposited in the |
12 | [Interest] Debt Service Fund established by section 601.2 of |
13 | this act. Such taxes will not be credited to the employer's |
14 | reserve account. |
15 | (c) [The Interest Factor calculated on wages with regard to |
16 | the limitations specified in section 4(x)(1) shall be equal to |
17 | twenty-five hundredths of one per centum (0.25%) for calendar |
18 | year 1984, five-tenths of one per centum (0.5%) for calendar |
19 | year 1985, and three-tenths of one per centum (0.3%) for |
20 | calendar year 1986. Thereafter the] The Interest Factor shall be |
21 | a variable rate [not to exceed one per centum (1.0%)] to be | <-- |
22 | determined annually by the department [at a rate necessary to |
23 | pay the interest on outstanding interest-bearing advances under |
24 | Title XII of the Social Security Act for the following calendar |
25 | year]. The rate of the Interest Factor for a calendar year shall |
26 | be the rate necessary to do the following in that year: |
27 | (1) Pay the bond obligations and bond administrative |
28 | expenses under Article XIV of this act which are due in that |
29 | year. |
30 | (2) Replenish amounts which have been drawn from bond |
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1 | reserves under Article XIV of this act. |
2 | (3) Provide an amount necessary in the department's judgment | <-- |
3 | to enhance investor acceptance of bonds under Article XIV of |
4 | this act. |
5 | (3) (4) Fund redemptions and purchases of outstanding bonds | <-- |
6 | under Article XIV of this act which will occur in that year. |
7 | (4) (5) Pay the interest on interest-bearing advances under | <-- |
8 | Title XII of the Social Security Act (42 U.S.C. § 1321 et seq.) |
9 | which is due in that year. |
10 | (5) (6) Repay outstanding advances under Title XII of the | <-- |
11 | Social Security Act. |
12 | (d) Contributions paid by or on behalf of an employer under |
13 | this act, other than employe contributions under section 301.4, |
14 | shall be allocated first to the employer's liability under this |
15 | section. This subsection shall apply to contributions for any |
16 | calendar quarter that ends at a time when bonds issued under |
17 | Article XIV of this act are outstanding. |
18 | (e) If additional contributions collected under this section |
19 | for a calendar year exceed the amount necessary for the purposes |
20 | enumerated in subsection (c) for that year, the department may |
21 | use such excess contributions for the purposes enumerated in |
22 | subsection (c) for the following year, thereby reducing the |
23 | amount of additional contributions which would be required for |
24 | the following year. |
25 | (f) No Interest Factor shall be required for [the year |
26 | following any year in which the amount of such interest-bearing |
27 | advances has been reduced to zero, provided that an interest tax |
28 | shall be required and shall be reimposed by the department for |
29 | the calendar year following any year in which an interest- |
30 | bearing advance remains outstanding on October 1 and there are |
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1 | not sufficient funds in the Interest Fund to pay the interest |
2 | due in that] any year for which funding is not required for any |
3 | of the purposes enumerated under subsection (c). |
4 | Section 2.1. Section 301.7 of the act, added October 19, |
5 | 1988 (P.L.818, No.109), is amended to read: |
6 | Section 301.7. Trigger Determination.--(a) On July 1 of |
7 | every year, the secretary shall calculate the trigger percentage |
8 | to be used in setting surcharge and contribution rates for the |
9 | contributions required under sections 301.2, 301.4 and 301.5 and |
10 | in setting the benefit reduction required under section 404(e) |
11 | (4) for the following calendar year. The secretary shall: |
12 | (1) determine the balance in the Unemployment Compensation |
13 | Trust Fund; |
14 | (2) determine the average of the benefit costs for the three |
15 | immediately preceding fiscal years; and |
16 | (3) calculate the percentage that the Unemployment |
17 | Compensation Trust Fund represents of the average of the benefit |
18 | costs. |
19 | For purposes of this subsection, the balance in the Unemployment |
20 | Compensation Trust Fund shall be determined by adding the |
21 | principal amount of outstanding bonds under Article XIV of this |
22 | act and the amount of outstanding advances under Title XII of |
23 | the Social Security Act (42 U.S.C. § 1321 et seq.) and by |
24 | subtracting that sum from the amount that otherwise would be the |
25 | balance in the Unemployment Compensation Trust Fund. |
26 | (b) Surcharge and contribution rates shall be announced by |
27 | the secretary on July 1 of every year in accordance with the |
28 | following schedule: |
29 | (1) When the trigger percentage is one hundred fifty per |
30 | centum (150%) or higher, the rate of the surcharge assessed |
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1 | under section 301.5 shall be a negative one and one-half per |
2 | centum (-1.5%). |
3 | (2) When the trigger percentage is at least one hundred |
4 | twenty-five per centum (125%), but less than one hundred fifty |
5 | per centum (150%), there shall be no surcharge or contribution |
6 | under section 301.2, 301.4 or 301.5. |
7 | (3) When the trigger percentage is at least one hundred ten |
8 | per centum (110%), but less than one hundred twenty-five per |
9 | centum (125%): |
10 | (i) the rate of the surcharge assessed under section 301.5 |
11 | shall be four per centum (4%); and |
12 | (ii) the rate of contributions assessed under section 301.4 |
13 | shall be five-hundredths of one per centum (0.05%). |
14 | (4) When the trigger percentage is at least ninety-five per |
15 | centum (95%), but less than one hundred ten per centum (110%): |
16 | (i) the rate of the surcharge assessed under section 301.5 |
17 | shall be eight per centum (8%); and |
18 | (ii) the rate of contributions assessed under section 301.4 |
19 | shall be one-tenth of one per centum (0.1%). |
20 | (5) When the trigger percentage is at least seventy-five per |
21 | centum (75%), but less than ninety-five per centum (95%): |
22 | (i) the rate of the surcharge assessed under section 301.5 |
23 | shall be eight per centum (8%); |
24 | (ii) the rate of contributions assessed under section 301.4 |
25 | shall be fifteen-hundredths of one per centum (0.15%); and |
26 | (iii) the rate of additional contributions assessed under |
27 | section 301.2 shall be twenty-five hundredths of one per centum |
28 | (0.25%). |
29 | (6) When the trigger percentage is at least fifty per centum |
30 | (50%), but less than seventy-five per centum (75%): |
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1 | (i) the rate of the surcharge assessed under section 301.5 |
2 | shall be eight per centum (8%); |
3 | (ii) the rate of contributions assessed under section 301.4 |
4 | shall be two-tenths of one per centum (0.2%); and |
5 | (iii) the rate of additional contribution assessed under |
6 | section 301.2 shall be five-tenths of one per centum (0.5%). |
7 | (7) When the trigger percentage is less than fifty per |
8 | centum (50%): |
9 | (i) the rate of the surcharge assessed under section 301.5 |
10 | shall be eight per centum (8%); |
11 | (ii) the rate of additional contribution assessed under |
12 | section 301.2 shall be seventy-five hundredths of one per centum |
13 | (0.75%); and |
14 | (iii) the rate of contributions assessed under section 301.4 |
15 | shall be two-tenths of one per centum (0.2%). |
16 | (c) Whenever the trigger percentage determined under |
17 | subsection (a) is less than fifty per centum (50%), the |
18 | secretary shall announce a reduction in the weekly benefit rate |
19 | under section 404(e)(4). |
20 | (d) Whenever the trigger percentage is less than twenty-five |
21 | per centum (25%), any balance remaining in the Unemployment |
22 | Compensation Trigger Reserve Account shall be transferred to the |
23 | Unemployment Compensation Trust Fund. |
24 | Section 3. Section 309 of the act is amended by adding a |
25 | subsection to read: |
26 | Section 309. Collection of Contributions and Interest; |
27 | Injunctions.--* * * |
28 | (c) In addition to the methods of collection authorized in |
29 | this section and other sections of this act, the department may |
30 | collect contributions, interest, penalties and other liabilities |
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1 | due under this act under the Internal Revenue Code of 1986 (26 |
2 | U.S.C. § 6402 (Public Law 97-35)) and by any other means |
3 | available under Federal or State law. |
4 | Section 3.1. Section 404(e)(2) of the act, amended June 17, |
5 | 2011, (P.L.16, No.6), is amended to read: |
6 | Section 404. Rate and Amount of Compensation.--Compensation |
7 | shall be paid to each eligible employe in accordance with the |
8 | following provisions of this section except that compensation |
9 | payable with respect to weeks ending in benefit years which |
10 | begin prior to the first day of January 1989 shall be paid on |
11 | the basis of the provisions of this section in effect at the |
12 | beginning of such benefit years. |
13 | * * * |
14 | (e) * * * |
15 | (2) (i) The Table Specified for the Determination of Rate |
16 | and Amount of Benefits shall be extended or contracted annually, |
17 | automatically by regulations promulgated by the secretary in |
18 | accordance with the following procedure: for calendar year one |
19 | thousand nine hundred seventy-two and for all subsequent |
20 | calendar years, to a point where the maximum weekly benefit rate |
21 | shall equal sixty-six and two-thirds per centum of the average |
22 | weekly wage for the thirty-six-month period ending June 30 |
23 | preceding each calendar year. If the maximum weekly benefit rate |
24 | is not a multiple of one dollar ($1), it shall be rounded to the |
25 | next lower multiple of one dollar ($1): Provided, however, That |
26 | effective with benefit years beginning the first Sunday at least |
27 | thirty days after the effective date of this amendatory act, the |
28 | per centum stated in this paragraph for establishing the maximum |
29 | weekly benefit rate shall be sixty-two and two-thirds per centum |
30 | for the remainder of calendar year one thousand nine hundred |
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1 | seventy-four, sixty-four and two-thirds per centum for the |
2 | calendar year one thousand nine hundred seventy-five, and sixty- |
3 | six and two-thirds per centum for the calendar year one thousand |
4 | nine hundred seventy-six and for all subsequent calendar years. |
5 | The Table Specified for the Determination of Rate and Amount |
6 | of Benefits as so extended or contracted shall be effective only |
7 | for those claimants whose benefit years begin on or after the |
8 | first day of January of such calendar year. |
9 | (ii) For the purpose of determining the maximum weekly |
10 | benefit rate, the Pennsylvania average weekly wage in covered |
11 | employment shall be computed on the basis of the average annual |
12 | total wages reported (irrespective of the limit on the amount of |
13 | wages subject to contributions) for the thirty-six-month period |
14 | ending June 30 (determined by dividing the total wages reported |
15 | for the thirty-six-month period by three) and this amount shall |
16 | be divided by the average monthly number of covered workers |
17 | (determined by dividing the total covered employment reported |
18 | for the same thirty-six-month period by thirty-six) to determine |
19 | the average annual wage. The average annual wage thus obtained |
20 | shall be divided by fifty-two and the average weekly wage thus |
21 | determined rounded to the nearest cent. |
22 | (iii) Notwithstanding the provisions of subclause (i), for |
23 | the calendar year 2012, the maximum weekly benefit rate shall be |
24 | frozen at the rate calculated for calendar year 2011. |
25 | Thereafter, the maximum weekly benefit rate established: |
26 | (A) For calendar year 2013, shall be no greater than a one |
27 | per centum (1%) increase above the calendar year 2012 rate. |
28 | (B) For calendar year 2014, shall be no greater than a one |
29 | and one-tenth per centum (1.1%) increase above the calendar year |
30 | 2013 rate. |
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1 | (C) For calendar year 2015, shall be no greater than a one |
2 | and two-tenths per centum (1.2%) increase above the calendar |
3 | year 2014 rate. |
4 | (D) For calendar year 2016, shall be no greater than a one |
5 | and three-tenths per centum (1.3%) increase above the calendar |
6 | year 2015 rate. |
7 | (E) For calendar year 2017, shall be no greater than one and |
8 | four-tenths per centum (1.4%) increase above the calendar year |
9 | 2016 rate. |
10 | (F) For calendar year 2018, shall be no greater increase |
11 | than one and five-tenths per centum (1.5%) increase above the |
12 | calendar year 2017 rate. |
13 | The limitations instituted for calendar years 2013 through 2018 |
14 | shall expire on the earlier to occur of December 31, 2018, or |
15 | the [last day of the calendar year in which the unemployment |
16 | Compensation trust fund does not have an outstanding solvency- |
17 | based debt to the United States government] December 31 as of |
18 | which the Unemployment Compensation Fund does not owe |
19 | outstanding advances to the Federal Government under Title XII |
20 | of the Social Security Act (42 U.S.C. § 1321 et seq.) and there |
21 | are no outstanding bonds under Article XIV. |
22 | (iv) If the change implemented by the freeze in calendar |
23 | year 2012 is determined by the department, in an official notice |
24 | to the General Assembly, to result in the loss of funds under |
25 | the American Recovery and Reinvestment Act of 2009 (Public Law |
26 | 111-5, 123 Stat. 115), the schedule under subclause (iii) shall |
27 | occur one year later and the expiration of the limitations set |
28 | forth in subclause (iii) shall occur one year later. |
29 | * * * |
30 | Section 3.2. Section 601 of the act, amended December 6, |
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1 | 1972 (P.L.1622, No.336), and July 21, 1983 (P.L.68, No.30), is |
2 | amended to read: |
3 | Section 601. Unemployment Compensation Fund.--(a) There is |
4 | hereby created a special fund separate and apart from all public |
5 | moneys or funds of this Commonwealth to be known as the |
6 | Unemployment Compensation Fund. All contributions paid by |
7 | employers and employes, together with penalties and interest |
8 | thereon, received or collected by the department from employers |
9 | under the provisions of this act, except such penalties and |
10 | interest which are to be paid into the Special Administration |
11 | Fund as provided in section 601.1 and taxes collected under |
12 | section 301.6 of this act which are to be paid into the |
13 | [Interest] Debt Service Fund as provided in section 601.2, shall |
14 | be paid into the Unemployment Compensation Fund, and shall be |
15 | credited by the department to a ledger account to be known as |
16 | the Employers' Contribution Account. Interest and penalties |
17 | which are to be credited to the Special Administration Fund and |
18 | taxes collected under section 301.6 may be temporarily held in |
19 | the Employers' Contribution Account solely for clearance |
20 | purposes prior to transfer to the Special Administration Fund or |
21 | [Interest] Debt Service Fund and while so held in the Employers' |
22 | Contribution Account shall not be deemed a part of the |
23 | Unemployment Compensation Fund. All moneys from time to time |
24 | received and credited to the Employers' Contribution Account |
25 | (exclusive of refunds made under section 311 and interest and |
26 | penalties transferred as herein provided to the Special |
27 | Administration Fund and taxes transferred to the [Interest] Debt |
28 | Service Fund) shall be paid promptly by the department into the |
29 | Unemployment Compensation Fund, except as otherwise provided in |
30 | section 605 of this act. All moneys credited to this |
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1 | Commonwealth's account in the Unemployment Compensation Fund |
2 | pursuant to section 903 of the Federal Social Security Act (42 |
3 | U.S.C. § 1103) shall be included in the Unemployment |
4 | Compensation Fund. |
5 | (b) As often as may be necessary, the department shall |
6 | requisition from the Unemployment Trust Fund such amounts as |
7 | shall be necessary to provide adequate funds for the payment of |
8 | compensation as provided in this act, except that moneys |
9 | credited to this Commonwealth's account pursuant to section 903 |
10 | of the Federal Social Security Act as amended shall be used |
11 | exclusively as provided in section six hundred two point three. |
12 | Upon receipt of such requisitioned funds, the department shall |
13 | deposit them into the Unemployment Compensation Fund to the |
14 | credit of a ledger account, to be known as the Compensation |
15 | Account, and shall expend such moneys solely for the payment of |
16 | compensation, as provided by this act. All moneys to the credit |
17 | of the Compensation Account shall be mingled and undivided. The |
18 | department shall pay all compensation authorized by this act out |
19 | of moneys standing to the credit of the Compensation Account. |
20 | (c) Notwithstanding any other provisions of this section, |
21 | the department shall at such time or times, when the amount of |
22 | moneys credited to the Commonwealth of Pennsylvania in the |
23 | Unemployment Compensation Fund exceed the average annual total |
24 | benefit payout for the immediate prior five (5) years, transfer |
25 | such excess to the United States Treasury to repay; and reduce |
26 | any outstanding Federal unemployment loan debt, and at such |
27 | other time or times as the secretary with the approval of the |
28 | Governor may determine, is hereby authorized to requisition from |
29 | the Unemployment Compensation Fund and pay into the United |
30 | States Treasury an amount which, in the aggregate, is equal to |
|
1 | the balance of any loan made to this Commonwealth under the |
2 | provisions of Title XII of the Social Security Act, as amended. |
3 | Such requisition and transfer need not be in a lump sum but may |
4 | be made according to a plan entered into between the department |
5 | and the United States Treasury and for that purpose the |
6 | authority hereinabove contained shall be deemed continuous |
7 | during the term of such agreement. |
8 | Section 4. Section 601.2 of the act, amended July 1, 1989 |
9 | (P.L.107, No.22), is amended to read: |
10 | Section 601.2. [Interest] Debt Service Fund.--(a) There is |
11 | hereby established a separate account in the State Treasury, to |
12 | be known as the [Interest] Debt Service Fund. All taxes |
13 | collected under section 301.6 of this act shall be paid into the |
14 | [Interest] Debt Service Fund. The moneys in this fund shall be |
15 | used in the following priority order and such funds received are |
16 | hereby appropriated for all of the following purposes: |
17 | (1) For [transfer to the General Fund for repayment of loans |
18 | pursuant to subsection (c) or for transfer to the General Fund |
19 | pursuant to subsections (f) and (g)] payment of bond obligations |
20 | and bond administrative expenses, for replenishment of bond |
21 | reserves, for maintenance of an amount the department determines | <-- |
22 | necessary to enhance investor acceptance of the bonds and for |
23 | redemption or purchase of outstanding bonds under Article XIV of |
24 | this act. |
25 | (2) For the payment of annual interest obligations assessed |
26 | under Title XII of the Social Security Act. |
27 | (3) [Repayment] For repayment of outstanding interest- |
28 | bearing advances received under Title XII of the Social Security |
29 | Act. |
30 | (4) [Unemployment compensation payments under this act] For |
|
1 | transfer to the Unemployment Compensation Fund under subsection |
2 | (b) (e), for payment of compensation to individuals. | <-- |
3 | [(b) Whenever the Governor shall ascertain that the cash |
4 | balance and current estimated receipts of the Interest Fund |
5 | shall be insufficient at any time during any State fiscal year |
6 | to meet promptly the expenses of the Commonwealth from such |
7 | fund, and the fund will have adequate funds available to meet |
8 | such expenses and other anticipated expenses prior to the |
9 | completion of the fiscal year, the State Treasurer is hereby |
10 | authorized and directed, from time to time during such State |
11 | fiscal year, to transfer from the General Fund to the Interest |
12 | Fund such sums as the Governor directs. Any sums so transferred |
13 | shall be available only for the purposes for which the fund to |
14 | which they are transferred is appropriated by law. Such |
15 | transfers shall be made hereunder upon warrant of the State |
16 | Treasurer upon requisition of the Governor. |
17 | (c) In order to reimburse the General Fund for moneys |
18 | transferred from such fund under subsection (b), there shall be |
19 | transferred moneys to such fund from the Interest Fund in such |
20 | amounts and times as the Governor shall direct, but in no event |
21 | later than thirty (30) days after the end of such State fiscal |
22 | year. Such retransfers shall be made upon warrant of the State |
23 | Treasurer upon requisition of the Governor. |
24 | (d) Any amount of moneys remaining in this fund at the end |
25 | of the calendar year after the interest obligations, for the |
26 | calendar year, under Title XII of the Social Security Act have |
27 | been met may be used as a voluntary repayment as prescribed by |
28 | section 1202(b)(6)(A) of the Social Security Act, to reduce the |
29 | balance of any outstanding interest-bearing advances received |
30 | under Title XII of the Social Security Act.] |
|
1 | (e) [Except as may be provided in subsections (f) and (g), |
2 | any] Any amount of moneys remaining in this fund at the end of |
3 | [the] a calendar year [in which the outstanding balance of |
4 | interest-bearing advance under Title XII of the Social Security |
5 | Act is zero] shall be transferred to the Unemployment |
6 | Compensation Fund and credited to the Employers' Contribution |
7 | Account as specified in section [601. |
8 | (f) Subsequent to the repayment of all indebtedness as |
9 | described in this section, the sum of forty-one million dollars |
10 | ($41,000,000) is hereby transferred from the Interest Fund to |
11 | the General Fund. Moneys remaining in the Interest Fund after |
12 | this transfer shall be transferred to the Unemployment |
13 | Compensation Fund as provided in subsection (e). |
14 | (g) The sum of eleven million seven hundred thousand dollars |
15 | ($11,700,000) is hereby transferred from the Interest Fund to |
16 | the General Fund. Moneys remaining in the Interest Fund after |
17 | this transfer shall be transferred to the Unemployment |
18 | Compensation Fund as provided in subsection (e).] 601 if the |
19 | following requirements are met: |
20 | (1) the balance of interest-bearing advances under Title XII |
21 | of the Social Security Act is zero at the end of that year; |
22 | (2) no interest on advances shall be due in the following |
23 | year; and |
24 | (3) there are no outstanding bond obligations and bond |
25 | administration expenses under Article XIV of this act and no |
26 | such obligations and expenses will be due in the following year. |
27 | Section 4.1. Section 603 of the act, amended June 15, 2005 |
28 | (P.L.8, No.5), is amended to read: |
29 | Section 603. State Treasurer as Custodian.--The State |
30 | Treasurer shall be the custodian of the Unemployment |
|
1 | Compensation Fund, the Administration Fund, the Special |
2 | Administration Fund, the [Interest] Debt Service Fund and the |
3 | Job Training Fund. He shall give a bond, or bonds, with |
4 | corporate sureties, conditioned upon the faithful performance of |
5 | his duties as custodian of such funds in such amount or amounts |
6 | as shall be determined and fixed by the Executive Board of this |
7 | Commonwealth. Premiums for such bond or bonds shall be paid by |
8 | the department out of the moneys in the Administration Fund. All |
9 | moneys belonging to such funds (exclusive of moneys on deposit |
10 | in the Unemployment Trust Fund as provided in section 601) shall |
11 | be deposited by the State Treasurer in any banks or public |
12 | depositories in which general funds of the Commonwealth may be |
13 | deposited, but no public deposit insurance charge or premium |
14 | shall be paid out of moneys in the Unemployment Compensation |
15 | Fund. Any law to the contrary notwithstanding, all payments from |
16 | such funds shall be made under such systems of requisitioning |
17 | and accounting as the Governor, the State Treasurer, and |
18 | Secretary shall determine. |
19 | Section 5. Section 804(a) and (b)(1) of the act, amended | <-- |
20 | July 10, 1980 (P.L.521, No.108) and October 19, 1988 (P.L.818, | <-- |
21 | No.109), are is amended to read: | <-- |
22 | Section 804. Recovery and Recoupment of Compensation.--(a) |
23 | Any person who by reason of his fault has received any sum as |
24 | compensation under this act to which he was not entitled, shall |
25 | be liable to repay to the Unemployment Compensation Fund to the |
26 | credit of the Compensation Account a sum equal to the amount so |
27 | received by him and interest at the rate determined by the |
28 | Secretary of Revenue as provided by section 806 of the act of |
29 | April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code," per |
30 | month or fraction of a month from fifteen (15) days after the |
|
1 | Notice of Overpayment was issued until paid. Such sum shall be |
2 | collectible (1) in the manner provided in section 308.1 or |
3 | section 309 of this act, for the collection of past due |
4 | contributions, or (2) by deduction from any future compensation |
5 | payable to the claimant under this act: Provided, That interest |
6 | assessed under this section cannot be recouped by deduction from |
7 | any future compensation payable to the claimant under this act: |
8 | Provided further, That no administrative or legal proceedings |
9 | for the collection of such sum shall be instituted after the |
10 | expiration of [six] ten years following the end of the benefit |
11 | year with respect to which such sum was paid. |
12 | (b) (1) Any person who other than by reason of his fault | <-- |
13 | has received with respect to a benefit year any sum as |
14 | compensation under this act to which he was not entitled shall |
15 | not be liable to repay such sum but shall be liable to have such |
16 | sum deducted from any future compensation payable to him with |
17 | respect to such benefit year, or the [three-year] six-year |
18 | period immediately following such benefit year: Provided, That |
19 | with respect to overpayments of one hundred dollars or more, |
20 | recoupment from such future compensation shall not exceed one- |
21 | third of the maximum benefit amount to which such person is |
22 | entitled during any such subsequent benefit year nor one-third |
23 | of the weekly benefit amount to which such person may be |
24 | entitled for any particular week. In the absence of |
25 | misrepresentation or non-disclosure of a material fact, no |
26 | recoupment shall be had if such overpayment is created by reason |
27 | of (i) a subsequent reversal of two decisions of eligibility |
28 | under the provisions of section five hundred one (e) of this |
29 | act, or (ii) the subsequent receipt of holiday pay, vacation pay |
30 | or the like of which the person had no knowledge, or (iii) a |
|
1 | subsequent determination that the person's base year wages were |
2 | not earned in employment as defined in this act. No provision of |
3 | this subsection shall be construed to prevent or prohibit the |
4 | voluntary repayment of compensation by such person or the |
5 | maintenance of records of overpayments by the department. |
6 | * * * |
7 | Section 6. The act is amended by adding articles to read: |
8 | ARTICLE XIV |
9 | UNEMPLOYMENT COMPENSATION BONDS |
10 | Section 1401. Definitions. |
11 | The following words and phrases when used in this article |
12 | shall have the meanings given to them in this section unless the |
13 | context clearly indicates otherwise: |
14 | "Authority." The Pennsylvania Economic Development Financing |
15 | Authority. |
16 | "Bond." Any type of revenue obligation, including a bond or |
17 | series of bonds, note, certificate or other instrument issued by |
18 | the authority for the benefit of the department under this |
19 | article. |
20 | "Bond administrative expenses." Expenses incurred to |
21 | administer bonds, including fees of the authority or the trust | <-- |
22 | indenture, fees of the bond trustee, payments to agents and | <-- |
23 | attorneys and costs of other professional services necessary to |
24 | ensure compliance with applicable Federal or State law. |
25 | "Bond obligations." The principal of a bond and the premium |
26 | and interest payable on a bond, together with the amount owed |
27 | under a related credit agreement or the trust indenture. | <-- |
28 | "Bond trustee." The trustee under the trust indenture | <-- |
29 | selected by the authority and the department. |
30 | "Credit agreement." A loan agreement, a revolving credit |
|
1 | agreement, an agreement establishing a line of credit, a letter |
2 | of credit or another agreement that enhances the marketability, |
3 | security or creditworthiness of a bond. |
4 | "Federal advances." Loans by the Federal government to the |
5 | Commonwealth for the payment of compensation under Title XII of |
6 | the Social Security Act (42 U.S.C. § 1321 et seq.) or a similar |
7 | Federal statute. |
8 | "Financing Law." The act of August 23, 1967 (P.L.251, |
9 | No.102), known as the Economic Development Financing Law. |
10 | "Trust indenture." The document, including amendments and | <-- |
11 | supplements, between the authority and the bond trustee, under |
12 | which the bonds are issued. |
13 | Section 1402. Bond issuance. |
14 | (a) Declaration of policy.--The General Assembly finds and | <-- |
15 | declares that funding the repayment of previous Federal |
16 | advances, including interest, through the authority, may result |
17 | in a savings to employers in this Commonwealth for the benefit |
18 | of economic activities throughout this Commonwealth. |
19 | (a) (b) Authority.--Notwithstanding any other law, all of | <-- |
20 | the following apply: |
21 | (1) The department may be a project applicant under the | <-- |
22 | Financing Law and apply to the authority for the funding of |
23 | repayment of Federal advances and interest due on them. | <-- |
24 | (2) The funding of repayment of Federal advances and | <-- |
25 | interest due on them shall constitute a project for purposes |
26 | of the Financing Law. |
27 | (3) The authority may issue bonds under the Financing |
28 | Law, consistent with this article, to finance a project |
29 | consisting of repayment of Federal advances and interest due | <-- |
30 | on them or refunding and redeeming of prior bonds. |
|
1 | (4) Participation of an industrial and commercial |
2 | development authority is not required to finance repayment of |
3 | Federal advances and interest due on them. | <-- |
4 | (b) (c) Debt or liability.-- | <-- |
5 | (1) Bonds issued under this article shall not be a debt |
6 | or liability of the Commonwealth and shall not create or |
7 | constitute any indebtedness, liability or obligation of the |
8 | Commonwealth. |
9 | (2) Bond obligations and bond administrative expenses |
10 | shall be payable solely from revenues or funds pledged or |
11 | available for their repayment as authorized in this article. |
12 | This paragraph includes the proceeds of an issue of bonds. |
13 | (3) Each bond must contain on its face a statement that: |
14 | (i) the authority is obligated to pay the principal |
15 | of the bond or the interest on the bond only from funds |
16 | made available under this article; |
17 | (ii) neither the Commonwealth nor a political |
18 | subdivision is obligated to pay the principal or |
19 | interest; and |
20 | (iii) the full faith and credit of the Commonwealth |
21 | is not pledged to the payment of the principal of or the |
22 | interest on the bonds. |
23 | Section 1403. Criteria for bond issuance. |
24 | (a) Determination.--If the department reasonably expects |
25 | that the issuance of bonds to obtain funds to repay Federal |
26 | advances, including interest, would result in a savings to |
27 | employers in this Commonwealth, as an alternative to repayment |
28 | of the Federal advances and interest by other means, the |
29 | department, in consultation with the Office of the Budget, may |
30 | apply the authority to issue bonds for its benefit under section |
|
1 | 1402(a) 1402(b). | <-- |
2 | (b) Terms.-- |
3 | (1) The department, in consultation with the Office of |
4 | the Budget, shall specify in its application to the |
5 | authority: |
6 | (i) the maximum principal amount of the bonds for |
7 | each separate bond issue; and |
8 | (ii) the maximum term of the bond, not to exceed 20 |
9 | years. |
10 | (2) The total principal amount of bonds that the |
11 | department may request under this article for all bond issues |
12 | may not exceed $3,500,000,000 $4,500,000,000. | <-- |
13 | Section 1404. Issuance of bonds and security. |
14 | (a) Issuance.--The authority shall consider issuance of |
15 | bonds upon application by the department. Bonds issued under |
16 | this article shall be subject to the provisions of the Financing |
17 | Law, unless otherwise specified by this article. |
18 | (b) Agreements.--The authority and the department may enter |
19 | into a trust indenture, loan agreements, credit agreements, bond | <-- |
20 | purchase agreements and other contracts in connection with the |
21 | bonds in order to effectuate the purposes of the Financing Law |
22 | and this article. |
23 | (c) Security.--The bond obligations and bond administrative |
24 | expenses are secured, for the benefit of the bond trustee, the | <-- |
25 | holders of the bonds and the obligees under the credit |
26 | agreements, by pledge of, security interest in and first lien on | <-- |
27 | all of the following: |
28 | (1) Additional contributions collected under section |
29 | 301.6. |
30 | (2) Money on deposit in the Debt Service Fund. This |
|
1 | paragraph includes investment income on that money. |
2 | (3) Money in the Debt Service Fund as follows: | <-- |
3 | (i) Except as set forth in subparagraph (ii), money |
4 | on deposit in any fund and account. This subparagraph |
5 | includes bond reserves and interest income on the money. |
6 | (ii) Subparagraph (i) does not apply to money in any |
7 | fund or account related to arbitrage rebate obligations. |
8 | Section 1405. Use of bond proceeds. |
9 | (a) Order.--Upon issuance of the bonds, the proceeds shall |
10 | be applied in the following order: |
11 | (1) Pay the costs of issuance of the bonds. |
12 | (2) Fund bond reserves. |
13 | (3) Deposit in an appropriate fund money to pay |
14 | capitalized interest on bonds for the period determined by |
15 | the department, not to exceed two years. |
16 | (4) Refund outstanding bonds, if applicable. |
17 | (5) Repay principal and interest of Federal advances. |
18 | (6) Deposit into the Unemployment Compensation Fund. |
19 | (b) Unemployment Compensation Fund.--The bond proceeds in the |
20 | Unemployment Compensation Fund shall be applied as directed by |
21 | the department to do all of the following: |
22 | (1) Repay the principal and interest of previous Federal |
23 | advances. |
24 | (2) Pay unemployment compensation benefits. |
25 | (3) Pay bond administrative expenses. |
26 | (4) Redeem or purchase outstanding bonds or pay bond |
27 | obligations. |
28 | (3) Except as set forth in paragraph (4), all money held | <-- |
29 | on deposit with the trustee relating to the bonds, as further |
30 | provided in the trust indenture. This paragraph includes bond |
|
1 | reserves and interest income on the money. |
2 | (4) Paragraph (3) does not apply to money in any fund or |
3 | account related to arbitrage rebate obligations. |
4 | Section 1404.1. Sale of bonds. | <-- |
5 | The sale of bonds issued under this article shall be subject |
6 | to the following: |
7 | (1) The authority shall give first consideration to |
8 | issuing the bonds by means of an open, public sale at not |
9 | less than 98% of the principal amount and accrued interest |
10 | and shall be sold by the authority to the highest and best |
11 | bidder after public advertisement on terms and conditions and |
12 | upon open competitive bidding. The manner and times of |
13 | advertising shall be prescribed by the authority. |
14 | (2) If in the judgment of the authority, a public sale |
15 | will not produce the most advantageous terms that derive the |
16 | most benefit to employers, employees and the Commonwealth, |
17 | the authority shall adopt a resolution setting forth in |
18 | detail the reasons for this determination. A copy of the |
19 | resolution shall be transmitted to the Governor, the chairman |
20 | and minority chairman of the Labor and Industry Committee of |
21 | the Senate and the chairman and minority chairman of the |
22 | Labor and Industry Committee of the House of Representatives. |
23 | After adoption of the resolution, the authority shall have |
24 | the option to pursue a private sale. |
25 | Section 1405. Use of bond proceeds. |
26 | (a) Initial deposit of proceeds.--The proceeds of bonds |
27 | issued by the authority shall be initially deposited with the |
28 | bond trustee. |
29 | (b) Order.--Upon issuance of bonds, the bond trustee, in |
30 | accordance with directions from the department, shall apply the |
|
1 | proceeds of the bonds in the following order to: |
2 | (1) pay the costs of issuance of the bonds; |
3 | (2) fund any bond reserves under the trust indenture; |
4 | (3) deposit in an appropriate fund under the trust |
5 | indenture money to pay capitalized interest on the bonds for |
6 | the period determined by the department, not to exceed two |
7 | years; |
8 | (4) refund outstanding bonds, if applicable; |
9 | (5) make any other deposit required under the trust |
10 | indenture; |
11 | (6) repay the principal and interest of previous Federal |
12 | advances; and |
13 | (7) deposit the balance in the Compensation Program Fund |
14 | under the trust indenture. |
15 | (c) Application of balance.--The bond proceeds deposited |
16 | under subsection (b)(7) shall be applied, at the direction of |
17 | the department, to do the following, as directed by the |
18 | department: |
19 | (1) Repay the principal and interest of previous Federal |
20 | advances. |
21 | (2) Pay unemployment compensation benefits. |
22 | (3) Pay bond administrative expenses. |
23 | (4) Redeem or purchase outstanding bonds. |
24 | (5) Pay bond obligations. |
25 | (c) (d) Investment.--Pending application for the purposes | <-- |
26 | authorized, money held or deposited by the State Treasurer in |
27 | the Debt Service Fund may be invested or reinvested as are other |
28 | funds in the custody of the State Treasurer in the manner |
29 | provided by law. All earning received from the investment or |
30 | deposit of the money shall be paid into the State Treasury to |
|
1 | the credit of the Debt Service Fund or the account. |
2 | Section 1406. Payment of bond-related obligations. |
3 | (a) Notification.--For each calendar year in which bond |
4 | obligations and bond administrative expenses will be due, the |
5 | authority shall notify the department of the amount of bond |
6 | obligations and the estimated amount of bond administrative |
7 | expenses in sufficient time, as determined by the department, to |
8 | permit the department to determine the amount of additional |
9 | contributions under section 301.6 required for that year, for |
10 | deposit into the Debt Service Fund. The authority's calculation |
11 | of the amount of bond obligations and bond administrative |
12 | expenses that will be due is subject to verification by the |
13 | department. |
14 | (b) Transfer.--Money in the Debt Service Fund needed to pay |
15 | bond obligations and bond administrative expenses or to |
16 | replenish bond reserves shall be transferred to the authority to |
17 | ensure timely payment of bond obligations and bond |
18 | administrative expenses and timely replenishment of bond |
19 | reserves, as specified in the resolution adopted in connection |
20 | with the bond or in the bond as otherwise provided by the trust | <-- |
21 | indenture. |
22 | (c) Deficiency in Debt Service Fund.--If there is a |
23 | deficiency in the Debt Service Fund and to the extent permitted |
24 | by law, that part of the principle principal owed on bonds which | <-- |
25 | is attributable to repayment of the principle principal of | <-- |
26 | advances under Title XII of the Social Security Act (42 U.S.C. § |
27 | 1321 et seq.), exclusive of interest or administrative costs |
28 | associated with the bonds, may be paid from the Unemployment |
29 | Compensation Fund. |
30 | Section 1407. Commonwealth not to impair bond-related |
|
1 | obligations. |
2 | The Commonwealth pledges that it will not do any of the |
3 | following: |
4 | (1) Limit or alter the rights and responsibilities of |
5 | the authority or the department under this article, including |
6 | the responsibility to: |
7 | (i) pay bond obligations and bond administrative |
8 | expenses; and |
9 | (ii) comply with any other instrument or agreement |
10 | pertaining to bonds. |
11 | (2) Alter or limit the pledge in section 1404 of the |
12 | additional contributions and money on deposit in the Debt |
13 | Service Fund. |
14 | (3) Impair the rights and remedies of the holders of |
15 | bonds, until all bonds and interest on the bonds, regardless | <-- |
16 | of time of issue, are discharged. |
17 | Section 1408. No personal liability. |
18 | The members and directors of the department and the authority |
19 | and the officers and employees of the department and the |
20 | authority are not personally liable as a result of good faith |
21 | exercise of the rights and responsibilities granted under this |
22 | article. |
23 | Section 1409. Expiration. |
24 | The authority to issue bonds other than refinancing and |
25 | refunding bonds under section 1402 and section 1404 shall expire |
26 | on December 31, 2016. |
27 | Section 1410. Annual report required. | <-- |
28 | No later than March 1 of the year following the first full |
29 | year in which bonds have been issued under this article, and for |
30 | each year thereafter in which bond obligations existed in the |
|
1 | prior year, the department shall submit an annual report to the |
2 | chairman and minority chairman of the Labor and Industry |
3 | Committee of the Senate and to the chairman and minority |
4 | chairman of the Labor and Industry Committee of the House of |
5 | Representatives providing all data available on bonds issued or |
6 | existing in the prior year. The report shall include, but not be |
7 | limited to, existing and anticipated bond principal, interest |
8 | and administrative costs, revenue, repayments, refinancing, |
9 | annual savings to employers and any other relevant data, facts |
10 | and statistics that the department believes necessary in the |
11 | content of the report. |
12 | ARTICLE XV |
13 | UNEMPLOYMENT COMPENSATION |
14 | AMNESTY PROGRAM |
15 | Section 1501. Definitions. |
16 | The following words and phrases when used in this article |
17 | shall have the meanings given to them in this section unless the |
18 | context clearly indicates otherwise: |
19 | "Amnesty period." The 90-day period commencing period of | <-- |
20 | three consecutive calendar months designated by the department |
21 | which commences no later than 180 days after the effective date |
22 | of this section. |
23 | "Employee information." The name and Social Security number |
24 | of each employee, the amount of wages paid to each employee and |
25 | the number of credit weeks for each employee, in each calendar |
26 | quarter. |
27 | "Interest." Monetary obligations imposed under sections 308 |
28 | and 804(a). |
29 | "Penalties." Monetary obligations imposed under sections |
30 | 206(d) and 313. |
|
1 | "Penalty weeks." Weeks for which an individual is |
2 | disqualified from receiving compensation under section 801(b). |
3 | "Program." The Unemployment Compensation Amnesty Program |
4 | established pursuant to this article. |
5 | Section 1502. Program established. |
6 | There is established an Unemployment Compensation Amnesty |
7 | Program in accordance with the provisions of this article. |
8 | Section 1503. Applicability. |
9 | (a) Employer liabilities.--Except as provided in subsections |
10 | (c) and (d), the program shall apply to the following |
11 | unemployment compensation employer liabilities: |
12 | (1) Unpaid contributions due for calendar quarters |
13 | through the third quarter of 2011, for which the employer |
14 | reported the employee information or the department acquired |
15 | the employee information through an audit. |
16 | (2) Unpaid contributions due for calendar quarters |
17 | through the third quarter of 2011, for which the employer did |
18 | not report the employee information and the department did |
19 | not acquire the employee information through an audit. |
20 | (3) Unpaid reimbursement due on or before October 31, |
21 | 2011. |
22 | (4) Unpaid interest due on contributions paid late for |
23 | calendar quarters through the third quarter of 2011 or on |
24 | reimbursement that was due on or before October 31, 2011, and |
25 | was paid late. |
26 | (5) Unpaid penalties due for reports filed late for |
27 | calendar quarters through the third quarter of 2011. |
28 | (b) Claimant liabilities.--Except as provided in subsections |
29 | (c) and (d), the program shall apply to the following |
30 | unemployment compensation claimant liabilities: |
|
1 | (1) A fault overpayment of compensation under section |
2 | 804(a) established pursuant to a notice of determination of |
3 | overpayment issued by the department on or before March 31, |
4 | 2012, to the extent repayment has not occurred. |
5 | (2) A nonfault overpayment of compensation under section |
6 | 804(b)(1) established pursuant to a notice of determination |
7 | of overpayment issued by the department on or before March |
8 | 31, 2012, to the extent repayment has not occurred. |
9 | (3) Compensation paid to a claimant for calendar weeks |
10 | through the week ending March 31, 2012, for which the |
11 | department has not issued a notice of determination of |
12 | overpayment, but the claimant acknowledges that the |
13 | compensation was overpaid under circumstances to which |
14 | section 804(a) applies. |
15 | (4) Unpaid interest due on an overpayment of |
16 | compensation under section 804(a) that was repaid on or |
17 | before March 31, 2012. |
18 | (c) Mandatory exclusion.--The following unemployment |
19 | compensation liabilities are excluded from the program: |
20 | (1) An overpayment of compensation established pursuant |
21 | to a notice of determination of overpayment that has not |
22 | become final. |
23 | (2) An employer liability for which a petition for |
24 | reassessment under section 304(b) or an application for |
25 | review and redetermination of contribution rate under section |
26 | 301(e)(2) is pending. |
27 | (d) Optional exclusion.--The department may exclude the |
28 | following unemployment compensation liabilities from the |
29 | program: |
30 | (1) A liability for which a praecipe for a writ of |
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1 | execution was filed prior to receipt of the amnesty form. |
2 | (2) A liability that was referred for judicial |
3 | proceedings or for which a judicial proceeding was commenced |
4 | prior to receipt of the amnesty form. |
5 | (3) A liability that is required to be paid under an |
6 | order of a Federal or state court. |
7 | Section 1504. Procedure for participation. |
8 | To participate in the program, an employer or a claimant |
9 | shall do the following: |
10 | (1) During the amnesty period, the employer or claimant |
11 | shall file an amnesty form with the department containing all |
12 | information required by the department, including a statement |
13 | by the employer or claimant acknowledging the provisions of |
14 | section 1506(f). The form shall be filed in a manner |
15 | specified in, and the filing date of the form shall be |
16 | determined by guidelines established by the department. |
17 | (2) If an employer is seeking amnesty with regard to a |
18 | liability described in section 1503(a)(2), the employer shall |
19 | report the employee information by filing quarterly reports |
20 | as required by regulations promulgated by the department for |
21 | all calendar quarters for which the employer did not |
22 | previously file reports and by filing amended quarterly |
23 | reports for all calendar quarters for which the employer did |
24 | not file complete reports. The quarterly reports shall |
25 | accompany the amnesty form. |
26 | (3) The employer or claimant shall pay the amount or |
27 | amounts required by section 1505. Payment shall accompany the |
28 | amnesty form. |
29 | Section 1505. Required payment and terms of amnesty. |
30 | (a) Payment.--An employer or claimant shall pay the amount |
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1 | or amounts specified in this section that correspond to the |
2 | liability or liabilities for which amnesty is sought. The |
3 | department shall grant amnesty as provided in this section and |
4 | section 1506. |
5 | (a.1) Unpaid contributions.--If an employer is seeking |
6 | amnesty with regard to unpaid contributions described in section |
7 | 1503(a)(1) or (2): |
8 | (1) The employer shall pay all of the unpaid |
9 | contributions and lien filing costs, if applicable, and one- |
10 | half of the interest and penalties due. |
11 | (2) The department shall waive the remaining interest |
12 | and penalties due corresponding to the contributions. |
13 | (b) Unpaid reimbursement.--If an employer is seeking amnesty |
14 | with regard to unpaid reimbursement described in section 1503(a) |
15 | (3): |
16 | (1) The employer shall pay all of the unpaid |
17 | reimbursement and lien filing costs, if applicable, and one- |
18 | half of the interest due. |
19 | (2) The department shall waive the remaining interest |
20 | due corresponding to the reimbursement. |
21 | (c) Unpaid interest.--If an employer is seeking amnesty with |
22 | regard to unpaid interest described in section 1503(a)(4): |
23 | (1) The employer shall pay all of the lien filing costs, |
24 | if applicable, and one-half of the unpaid interest due. |
25 | (2) The department shall waive the remaining unpaid |
26 | interest due. |
27 | (d) Unpaid penalties.--If an employer is seeking amnesty |
28 | with regard to unpaid penalties described in section 1503(a)(5): |
29 | (1) The employer shall pay all of the lien filing costs, |
30 | if applicable, and one-half of the unpaid penalties due. |
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1 | (2) The department shall waive the remaining unpaid |
2 | penalties due. |
3 | (e) Fault overpayment.--If a claimant is seeking amnesty |
4 | with regard to an overpayment described in section 1503(b)(1) or |
5 | (3): |
6 | (1) The claimant shall pay the outstanding balance of |
7 | the overpayment and lien filing costs, if applicable, and |
8 | one-half of the interest due. |
9 | (2) The department shall waive the remaining interest |
10 | due and one-half of any previously imposed penalty weeks |
11 | corresponding to the overpayment that have not been served by |
12 | the claimant, and shall not issue a notice of determination |
13 | imposing penalty weeks corresponding to the overpayment. If |
14 | one-half of the unserved penalty weeks is not an even |
15 | multiple of one, the number of penalty weeks waived shall be |
16 | rounded to the next lower multiple of one. |
17 | (f) Nonfault overpayment.--If a claimant is seeking amnesty |
18 | with regard to an overpayment described in section 1503(b)(2): |
19 | (1) The claimant shall pay 67% 50% of the outstanding | <-- |
20 | balance of the overpayment. |
21 | (2) The department shall waive the remaining balance of |
22 | the overpayment. |
23 | (g) Unpaid interest.--If a claimant is seeking amnesty with |
24 | regard to unpaid interest described in section 1503(b)(4): |
25 | (1) The claimant shall pay all of the lien filing costs, |
26 | if applicable, and one-half of the interest due. |
27 | (2) The department shall waive the remaining unpaid |
28 | interest due. |
29 | Section 1506. Additional terms and conditions of amnesty. |
30 | (a) Agreement.--If a payment plan agreement exists between |
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1 | an employer or claimant and the department for a liability for |
2 | which the employer or claimant is seeking amnesty, the employer |
3 | or claimant shall pay the amount or amounts required by section |
4 | 1505 during the amnesty period in order to receive amnesty, |
5 | notwithstanding any terms of the agreement to the contrary. |
6 | (b) Proceedings prohibited.--The department shall not |
7 | commence any administrative or judicial proceeding against an |
8 | employer with regard to any contributions, reimbursement, |
9 | interest or penalty paid under the program, or any interest or |
10 | penalties waived under the program. The department shall not |
11 | commence any administrative or judicial proceeding against a |
12 | claimant with regard to any overpayment or interest paid under |
13 | the program, or any overpayment or interest waived under the |
14 | program. |
15 | (c) Proceedings permitted.--If a liability for contributions |
16 | described in section 1503(a)(2) or liability for an overpayment |
17 | described in section 1503(b)(3) is disclosed and paid under the |
18 | program, and the department determines that the liability as |
19 | disclosed was understated, the department may commence |
20 | administrative or judicial proceedings and impose interest, |
21 | penalties and other monetary obligations only with regard to the |
22 | difference between the liability as disclosed and the correct |
23 | amount of the liability. |
24 | (d) Allowance.--Except as provided in subsection (c), |
25 | nothing in this article shall be construed to prohibit the |
26 | department from commencing administrative or judicial |
27 | proceedings and imposing interest, penalties and other monetary |
28 | obligations with respect to any liability that is not disclosed |
29 | under the program or any amount that is not paid under the |
30 | program. |
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1 | (e) Refund or credit.--An employer or claimant shall not be |
2 | owed a refund or credit under this article for any amount paid |
3 | prior to the amnesty period. |
4 | (f) Form and report.--An employer or claimant may not |
5 | commence an administrative or judicial proceeding with regard to |
6 | the amnesty form, any report filed in connection with the |
7 | program, any liability disclosed under the program or any amount |
8 | paid under the program, and shall not be owed a refund or credit |
9 | for any amount paid under the program. |
10 | Section 1507. Duties of department. |
11 | (a) Guidelines.--The department shall establish guidelines |
12 | to implement the provisions of this article and publish the |
13 | guidelines as a notice in the Pennsylvania Bulletin no less than |
14 | 90 days before the amnesty period begins. |
15 | (b) Publicity.--The department shall publicize the program |
16 | to maximize awareness of and participation in the program. |
17 | (c) Notification.--The department shall notify all employers |
18 | and claimants who are known to have liabilities to which the |
19 | program applies. The notice shall be sent by first class mail to |
20 | the employer's or claimant's last known post office address or |
21 | by electronic transmission, if the employer or claimant has |
22 | elected to receive communications from the department by that |
23 | method. |
24 | Section 1508. Construction. |
25 | Except as expressly provided in this article, this article |
26 | shall not: |
27 | (1) be construed to relieve any employer, claimant, |
28 | individual or any entity from filing reports or other |
29 | documents required by or paying any amounts due under this |
30 | act; |
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1 | (2) affect or terminate any petitions, investigations, |
2 | prosecutions or any other administrative or judicial |
3 | proceedings pending under this act; or |
4 | (3) prevent the commencement or further prosecution of |
5 | any proceedings by the proper authorities of this |
6 | Commonwealth for violation of any laws or for the assessment, |
7 | collection or recovery of any amounts due to the Commonwealth |
8 | under any laws. |
9 | Section 1509. Suspension of inconsistent acts. |
10 | All acts or parts of acts inconsistent with the provisions of |
11 | this article are suspended to the extent necessary to carry out |
12 | the provisions of this article. |
13 | Section 1510. Report required. | <-- |
14 | Within 240 days of the close of the amnesty period, the |
15 | department shall submit a report to the chairman and minority |
16 | chairman of the Labor and Industry Committee of the Senate and |
17 | the chairman and minority chairman of the Labor and Industry |
18 | Committee of the House of Representatives detailing all data |
19 | available on the administration of the program, the cost of the |
20 | program, amounts recovered from employers and claimants and any |
21 | relevant facts and statistics that the department believes |
22 | necessary in the content of the report. |
23 | Section 7. This act shall apply as follows: |
24 | (1) The amendment of section 301.6 of the act shall |
25 | apply to the calculation of the interest factor for calendar |
26 | year 2012 and every year thereafter. |
27 | (2) The amendment of section 804 of the act shall apply |
28 | to benefit years that begin on or after the effective date of |
29 | that section. |
30 | Section 8. This act shall take effect immediately. |
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