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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY D. COSTA, MATZIE, CARROLL, DeLUCA, FABRIZIO, HALUSKA, KULA, M. O'BRIEN, THOMAS, VULAKOVICH AND KOTIK, MAY 25, 2011 |
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| REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MAY 25, 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," in penalty provisions, |
16 | further providing for recovery and recoupment of |
17 | compensation; and providing for an amnesty program for |
18 | selected violations. |
19 | The General Assembly of the Commonwealth of Pennsylvania |
20 | hereby enacts as follows: |
21 | Section 1. Section 804(a) of the act of December 5, 1936 |
22 | (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment |
23 | Compensation Law, amended October 19, 1988 (P.L.818, No.109), is |
24 | amended to read: |
25 | Section 804. Recovery and Recoupment of Compensation.--(a) |
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1 | Any person who by reason of his fault has received any sum as |
2 | compensation under this act to which he was not entitled, shall |
3 | be liable to repay to the Unemployment Compensation Fund to the |
4 | credit of the Compensation Account a sum equal to the amount so |
5 | received by him and interest at the rate determined by the |
6 | Secretary of Revenue as provided by section 806 of the act of |
7 | April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code," per |
8 | month or fraction of a month from fifteen (15) days after the |
9 | Notice of Overpayment was issued until paid. Such sum shall be |
10 | collectible (1) in the manner provided in section 308.1 or |
11 | section 309 of this act, for the collection of past due |
12 | contributions, or (2) by deduction from any future compensation |
13 | payable to the claimant under this act: Provided, That interest |
14 | assessed under this section cannot be recouped by deduction from |
15 | any future compensation payable to the claimant under this act: |
16 | Provided further, That no administrative or legal proceedings |
17 | for the collection of such sum shall be instituted after the |
18 | expiration of [six] twenty (20) years following the end of the |
19 | benefit year with respect to which such sum was paid. |
20 | * * * |
21 | Section 2. The act is amended by adding an article to read: |
22 | ARTICLE VIII-A |
23 | OUTSTANDING OVERDRAFT CLAIMANT AND |
24 | DELINQUENT EMPLOYER AMNESTY PROGRAM |
25 | Section 801-A. Definitions. |
26 | The following words and phrases when used in this article |
27 | shall have the meanings given to them in this section unless the |
28 | context clearly indicates otherwise: |
29 | "Amnesty period." The period from April 23, 2012, through |
30 | June 15, 2012, inclusive. |
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1 | "Delinquent contribution or other payment." A monetary |
2 | amount owed to the Department of Labor and Industry by a |
3 | delinquent employer found to have violated section 802(a)(2). |
4 | "Delinquent employer." An employer or an officer or agent of |
5 | such employer found to have violated section 802(a)(2). |
6 | "Outstanding overdraft claimant." A person who owes the |
7 | Department of Labor and Industry funds, fees, fines, interest |
8 | and penalties stemming from an overdraft in violation of section |
9 | 801 for a period in excess of six years. |
10 | "Overdrafted funds." A monetary amount overpaid by the |
11 | Department of Labor and Industry to a claimant who made a false |
12 | statement or representation knowing it to be false or who |
13 | knowingly failed to disclose a material fact to obtain or |
14 | increase compensation or other payment from the Department of |
15 | Labor and Industry in violation of section 801. |
16 | "Program." The Outstanding Overdraft Claimant and Delinquent |
17 | Employer Amnesty Program established under this article. |
18 | Section 802-A. Outstanding Overdraft Claimant and Delinquent |
19 | Employer Amnesty Program. |
20 | (a) Establishment.--The Outstanding Overdraft Claimant and |
21 | Delinquent Employer Amnesty Program is established and shall be |
22 | administered by the department. |
23 | (b) Applicability.--The program shall apply to: |
24 | (1) A person who, having been found to have violated |
25 | section 801, owes the department for overdrafted funds from |
26 | the Unemployment Compensation Fund as well as any fines, |
27 | fees, penalties and interest accrued under section 801. |
28 | (2) A delinquent employer who, having been found to have |
29 | violated section 802(a)(2) between January 1, 2005, and |
30 | January 1, 2010, owes the department for delinquent |
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1 | contributions or other payments required by this act as well |
2 | as any fines, fees, penalties and interest stemming from the |
3 | violation. |
4 | (c) Future program participation.--A person who participates |
5 | in the program shall not be eligible to participate in any |
6 | future outstanding overdraft claimant and delinquent employer |
7 | amnesty program. |
8 | Section 803-A. Required payment. |
9 | (a) Conditions.--All outstanding overdraft claimants and |
10 | delinquent employers who participate in the program shall comply |
11 | with the following: |
12 | (1) During the amnesty period, they shall file an |
13 | amnesty form as provided by the department that contains such |
14 | information as the department shall require. An amnesty form |
15 | shall be considered timely filed if it is postmarked or |
16 | electronically or otherwise submitted in a form acceptable to |
17 | the department during the amnesty period. |
18 | (2) During the amnesty period, they shall make payment |
19 | of all owed overdrafted funds or delinquent contributions or |
20 | other payments and one-half of the interest due to the |
21 | department. The outstanding overdraft claimant or delinquent |
22 | employer shall not be required to pay any fine, fee or |
23 | penalty applicable to the overdraft or delinquency in |
24 | violation of section 801 or 802(a)(2), respectively. |
25 | (b) Prohibitions.--The department may not: |
26 | (1) Collect the penalties or interest waived under |
27 | subsection (a)(2). |
28 | (2) Except as otherwise provided in this article, pursue |
29 | any administrative or judicial proceeding relating to the |
30 | overdrafted funds or delinquent contribution or other payment |
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1 | against an outstanding overdraft claimant or delinquent |
2 | employer who has satisfied completely the requirements |
3 | outlined in subsection (a) as to the overdrafted funds or |
4 | delinquent contribution or other payment. |
5 | (c) Financial hardship.--An outstanding overdraft claimant |
6 | otherwise eligible for amnesty, who certifies on an amnesty form |
7 | that making payment of the full amount for which amnesty is |
8 | sought at the time of submission of the form is made would |
9 | create severe financial hardship for the claimant, shall retain |
10 | eligibility for amnesty if: |
11 | (1) Fifty percent or more of the amount due as computed |
12 | is paid with the amnesty return or within the amnesty period. |
13 | (2) The balance due, including interest under subsection |
14 | (a)(2), is paid, in no more than two installments on or |
15 | before the end of the amnesty period. |
16 | Section 804-A. Amnesty contingent on continued compliance. |
17 | Notwithstanding any other provision of this article, the |
18 | department may assess and collect from an outstanding overdraft |
19 | claimant or delinquent employer all penalties and interest |
20 | waived through the program if the claimant or employer is found |
21 | to have violated section 801 or 802(a)(2) at any point after |
22 | June 15, 2012. |
23 | Section 805-A. Previously paid fees, fines, penalties and |
24 | interest. |
25 | No refund or credit shall be allowed for any fees, fines, |
26 | penalties or interest stemming from a violation of section 801 |
27 | or 802(a)(2) paid to the department prior to the amnesty period. |
28 | Section 806-A. Undisclosed outstanding overdrafts. |
29 | Nothing in this article shall be construed to prohibit the |
30 | department from instituting administrative or legal proceedings |
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1 | against any outstanding overdraft claimant or delinquent |
2 | employer with respect to any overdrafts or delinquent |
3 | contributions or other payments occurring before the amnesty |
4 | period but not yet disclosed. Amnesty shall only be granted for |
5 | outstanding overdrafts that have been disclosed by the |
6 | department prior to the amnesty period. |
7 | Section 807-A. Duties of department. |
8 | (a) Guidelines.--The department shall develop guidelines to |
9 | implement the provisions of this article. The guidelines shall |
10 | be published in the Pennsylvania Bulletin within 60 days of the |
11 | effective date of this section and shall contain, but not be |
12 | limited to, the following information: |
13 | (1) An explanation of the program and the requirements |
14 | for eligibility for the program. |
15 | (2) The dates during which an amnesty form may be filed. |
16 | (3) A specimen copy of the amnesty form. |
17 | (b) Notification.-- |
18 | (1) The department shall notify in writing all known |
19 | outstanding overdraft claimants and delinquent employers at |
20 | the claimants' or employers' last known addresses of the |
21 | existence of and their eligibility for the program. The sole |
22 | purpose of the letter sent by the department to the claimants |
23 | and employers shall be notification of the program and the |
24 | claimants' and employers' eligibility. |
25 | (2) The notification shall include an up-to-date total |
26 | of all overdrafted funds, fees, fines, penalties and interest |
27 | or delinquent contribution or other payment and related |
28 | fines, fees, penalties and interest and the total expected to |
29 | be collected under the program. |
30 | (c) Reports.--The department shall issue reports to the |
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1 | General Assembly detailing program implementation. The reports |
2 | shall contain the following information: |
3 | (1) Within 30 days after the end of the amnesty period: |
4 | (i) A detailed breakdown of the department's |
5 | administrative costs in implementing the program. |
6 | (ii) The total dollar amount of revenue collected by |
7 | the program. |
8 | (2) Within 180 days after the end of the amnesty period: |
9 | (i) The number of amnesty forms filed and a |
10 | breakdown of the number and dollar amount of revenue |
11 | raised by calendar year during which the overdraft |
12 | occurred. |
13 | (ii) The total dollar amount of penalties and |
14 | interest waived under the program. |
15 | (iii) The demographic characteristics of |
16 | participants in the program. |
17 | Section 808-A. Method of payment. |
18 | All payments under the program shall be made by certified |
19 | check, money order, electronic transfer, credit card, cash or |
20 | its equivalent. |
21 | Section 809-A. Use of revenue. |
22 | All revenue collected under this article shall be deposited |
23 | in the Unemployment Compensation Fund. |
24 | Section 3. This act shall take effect in 60 days. |
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