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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 AND RAFFERTY, OCTOBER 24, 2011 |
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| REFERRED TO LABOR AND INDUSTRY, OCTOBER 24, 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 | the definition of "wages," for determination of contribution |
17 | rate, for additional contribution for interest, for |
18 | collection of contribution and interest and injunctions, for |
19 | Interest Fund, for recovery and recoupment of compensation; |
20 | and providing for unemployment compensation solvency bonds |
21 | and for unemployment compensation amnesty program. |
22 | The General Assembly of the Commonwealth of Pennsylvania |
23 | hereby enacts as follows: |
24 | Section 1. Sections 4(x)(1) and 301.1(e) of the act of |
25 | December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as |
26 | the Unemployment Compensation Law, amended July 21, 1983 |
27 | (P.L.68, No.30), are amended to read: |
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1 | Section 4. Definitions.--The following words and phrases, as |
2 | used in this act, shall have the following meanings, unless the |
3 | context clearly requires otherwise. |
4 | * * * |
5 | (x) "Wages" means all remuneration, (including the cash |
6 | value of mediums of payment other than cash, except that only |
7 | cash wages shall be used to determine the coverage of |
8 | agricultural labor as defined in section 4(l)(3)(G) and domestic |
9 | service as defined in section 4(l)(3)(H)), paid by an employer |
10 | to an individual with respect to his employment except that the |
11 | term "wages" [for the purpose of paying contributions] shall not |
12 | include: |
13 | (1) [That] For purposes of paying employer contributions, |
14 | that part of the remuneration [which is in excess of the first |
15 | seven thousand dollars ($7,000) during calendar year 1983 and |
16 | eight thousand dollars ($8,000) during calendar year 1984 and |
17 | thereafter] paid to an individual by each of his employers |
18 | during a calendar year that exceeds eight thousand two hundred |
19 | fifty dollars ($8,250) for calendar year 2012, eight thousand |
20 | five hundred dollars ($8,500) for the calendar year 2013, eight |
21 | thousand seven hundred fifty dollars ($8,750) for calendar year |
22 | 2014, nine thousand dollars ($9,000) for calendar year 2015, |
23 | nine thousand two hundred fifty dollars ($9,250) for calendar |
24 | year 2016, nine thousand five hundred dollars ($9,500) for |
25 | calendar year 2017 and ten thousand dollars ($10,000) for |
26 | calendar year 2018 and thereafter: Provided, That an employer |
27 | may take credit under this subsection for remuneration which his |
28 | predecessor-in-interest has paid to an individual during the |
29 | same calendar year with respect to employment; and provided |
30 | also, that an employer may take credit under this subsection for |
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1 | remuneration which he or his predecessor-in-interest has paid to |
2 | an individual in the same calendar year on which contributions |
3 | have been required and paid by such employer under an |
4 | unemployment compensation law of another state, but no such |
5 | credit may be taken for remuneration which has been paid by |
6 | another employer to such individual, whether or not |
7 | contributions have been paid thereon by such other employer |
8 | under this act or under any state unemployment compensation law. |
9 | * * * |
10 | Section 301.1. Determination of Contribution Rate; |
11 | Experience Rating.-- |
12 | * * * |
13 | (e) [The] (1) Except as provided in paragraph (2), the |
14 | State Adjustment Factor for [the] a calendar year [beginning |
15 | January 1, 1984, shall be one and five-tenths per centum (1.5%) |
16 | and thereafter] shall be computed as of the computation date for |
17 | such year to a tenth of a per centum, rounding all fractional |
18 | parts of a tenth of a per centum to the nearest tenth of a per |
19 | centum, but in no event less than zero [nor in excess of one and |
20 | five-tenths per centum (1.5%)], according to the following |
21 | formula: |
22 | Bdr - Dcr | | 23 | Wt | X 100 = State Adjustment Factor |
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24 | in which factor "Bdr" equals the aggregate of (1) all benefits |
25 | paid but not charged to employers' accounts, plus, (2) all |
26 | benefits paid and charged to inactive and terminated employers' |
27 | accounts, plus, (3) all benefits paid and charged to accounts of |
28 | active employers for the preceding year to the extent such |
29 | benefits exceed the combined amount of contributions payable by |
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1 | such employers on the basis of the Benefit Ratio Factor and the |
2 | Reserve Ratio Factor. Factor "Dcr" equals the aggregate of (1) |
3 | interest credited to the Unemployment Compensation Fund, plus, |
4 | (2) amounts transferred from the Special Administration Fund and |
5 | the Interest Fund to the Unemployment Compensation Fund, plus, |
6 | (3) refunds of benefits unlawfully paid, plus, (4) amounts |
7 | credited to the Unemployment Compensation Fund by the Federal |
8 | Government other than by loan, except that any amount credited |
9 | to this Commonwealth's account under section 903 of the Federal |
10 | Social Security Act which has been appropriated for expenses of |
11 | administration shall be excluded from the amount in the |
12 | Unemployment Compensation Fund in the computation of the "Dcr" |
13 | factor. Factor "Wt" equals all wages subject to the law up to |
14 | the limitation described in section 4(x)(1) paid by all |
15 | employers. Each item in each factor shall be computed with |
16 | respect to the twelve-month period ending on the computation |
17 | date: Provided, That should the computed State Adjustment Factor |
18 | for [calendar year 1984, and] any year [thereafter] exceed [one |
19 | and five-tenths per centum (1.5%)] the maximum rate allowed |
20 | under this section, such excess over [one and five-tenths per |
21 | centum (1.5%)] the maximum rate shall be added to the computed |
22 | State Adjustment Factor for the following year or years. |
23 | (2) The maximum State Adjustment Factor shall be one and |
24 | one-tenth per centum (1.1%) for calendar years 2012 through |
25 | 2016, nine-tenths of one per centum (0.9%) for calendar year |
26 | 2017 and seventy-five hundredths of one per centum (0.75%) for |
27 | calendar year 2018 and thereafter. |
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 Fund established by section 601.2 of this act. Such |
13 | taxes will not be credited to the employer's reserve account. |
14 | (c) [The Interest Factor calculated on wages with regard to |
15 | the limitations specified in section 4(x)(1) shall be equal to |
16 | twenty-five hundredths of one per centum (0.25%) for calendar |
17 | year 1984, five-tenths of one per centum (0.5%) for calendar |
18 | year 1985, and three-tenths of one per centum (0.3%) for |
19 | calendar year 1986. Thereafter the] The Interest Factor shall be |
20 | a variable rate not to exceed one per centum (1.0%) to be |
21 | determined annually by the department [at a rate necessary to]. |
22 | The rate of the Interest Factor for a calendar year shall be the |
23 | rate necessary to: |
24 | (1) pay the bond obligations and bond administration |
25 | expenses under Article XIV of this act that are due in that |
26 | year; and |
27 | (2) pay the interest on [outstanding] interest-bearing |
28 | advances under Title XII of the Social Security Act [for the |
29 | following calendar] that is due in that year. |
30 | No Interest Factor shall be required for [the year following any |
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1 | year in which the amount of such interest-bearing advances has |
2 | been reduced to zero, provided that an interest tax shall be |
3 | required and shall be reimposed by the department for the |
4 | calendar year following any year in which an interest-bearing |
5 | advance remains outstanding on October 1 and there are not |
6 | sufficient funds in the Interest Fund to pay the interest due in |
7 | that year] any year in which bond obligations and bond |
8 | administration expenses under Article XIV of this act and |
9 | interest on advances under Title XII of the Social Security Act |
10 | are not due. |
11 | Section 3. Section 309 of the act is amended by adding a |
12 | subsection to read: |
13 | Section 309. Collection of Contributions and Interest; |
14 | Injunctions.--* * * |
15 | (c) In addition to the methods of collection authorized in |
16 | this section and other sections of this act, the department may |
17 | collect contributions, interest, penalties and other liabilities |
18 | due under this act under the Internal Revenue Code of 1986 (26 |
19 | U.S.C. § 6402 (Public Law 97-35)) and by any other means |
20 | available under Federal or State law. |
21 | Section 4. Section 601.2 of the act, amended July 1, 1989 |
22 | (P.L.107, No.22), is amended to read: |
23 | Section 601.2. Interest Fund.--(a) There is hereby |
24 | established a separate account in the State Treasury, to be |
25 | known as the Interest Fund. All taxes collected under section |
26 | 301.6 of this act shall be paid into the Interest Fund. The |
27 | moneys in this fund shall be used in the following priority |
28 | order and such funds received are hereby appropriated for all of |
29 | the following purposes: |
30 | (1) For payment of bond obligations and bond administrative |
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1 | expenses under Article XIV of this act. |
2 | [(1)] (2) For transfer to the General Fund for repayment of |
3 | loans pursuant to subsection (c) or for transfer to the General |
4 | Fund pursuant to [subsections (f) and (g)] this section. |
5 | [(2)] (3) For the payment of annual interest obligations |
6 | assessed under Title XII of the Social Security Act. |
7 | [(3)] (4) Repayment of outstanding interest-bearing advances |
8 | received under Title XII of the Social Security Act. |
9 | [(4)] (5) Unemployment compensation payments under this act. |
10 | (b) Whenever the Governor shall ascertain that the cash |
11 | balance and current estimated receipts of the Interest Fund |
12 | shall be insufficient at any time during any State fiscal year |
13 | to meet promptly the expenses of the Commonwealth from such |
14 | fund, and the fund will have adequate funds available to meet |
15 | such expenses and other anticipated expenses prior to the |
16 | completion of the fiscal year, the State Treasurer is hereby |
17 | authorized and directed, from time to time during such State |
18 | fiscal year, to transfer from the General Fund to the Interest |
19 | Fund such sums as the Governor directs. Any sums so transferred |
20 | shall be available only for the purposes for which the fund to |
21 | which they are transferred is appropriated by law. Such |
22 | transfers shall be made hereunder upon warrant of the State |
23 | Treasurer upon requisition of the Governor. |
24 | (c) In order to reimburse the General Fund for moneys |
25 | transferred from such fund under subsection (b), there shall be |
26 | transferred moneys to such fund from the Interest Fund in such |
27 | amounts and times as the Governor shall direct, but in no event |
28 | later than thirty (30) days after the end of such State fiscal |
29 | year. Such retransfers shall be made upon warrant of the State |
30 | Treasurer upon requisition of the Governor. |
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1 | (d) Any amount of moneys remaining in this fund at the end |
2 | of the calendar year after the interest obligations, for the |
3 | calendar year, under Title XII of the Social Security Act have |
4 | been met may be used as a voluntary repayment as prescribed by |
5 | section 1202(b)(6)(A) of the Social Security Act, to reduce the |
6 | balance of any outstanding interest-bearing advances received |
7 | under Title XII of the Social Security Act. |
8 | (e) [Except as may be provided in subsections (f) and (g), |
9 | any] Any amount of moneys remaining in this fund at the end of |
10 | [the] a calendar year [in which the outstanding balance of |
11 | interest-bearing advance under Title XII of the Social Security |
12 | Act is zero] shall be transferred to the Unemployment |
13 | Compensation Fund and credited to the Employers' Contribution |
14 | Account as specified in section [601. |
15 | (f) Subsequent to the repayment of all indebtedness as |
16 | described in this section, the sum of forty-one million dollars |
17 | ($41,000,000) is hereby transferred from the Interest Fund to |
18 | the General Fund. Moneys remaining in the Interest Fund after |
19 | this transfer shall be transferred to the Unemployment |
20 | Compensation Fund as provided in subsection (e). |
21 | (g) The sum of eleven million seven hundred thousand dollars |
22 | ($11,700,000) is hereby transferred from the Interest Fund to |
23 | the General Fund. Moneys remaining in the Interest Fund after |
24 | this transfer shall be transferred to the Unemployment |
25 | Compensation Fund as provided in subsection (e).] 601 if the |
26 | following requirements are met: |
27 | (1) the balance of interest-bearing advances under Title XII |
28 | of the Social Security Act is zero at the end of that year; |
29 | (2) no interest on advances shall be due in the following |
30 | year; and |
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1 | (3) there are no outstanding bond obligations and bond |
2 | administration expenses under Article XIV of this act and no |
3 | such obligations and expenses will be due in the following year. |
4 | Section 5. Section 804(a) and (b)(1) of the act, amended |
5 | July 10, 1980 (P.L.521, No.108) and October 1988 (P.L.818, |
6 | No.109), are amended to read: |
7 | Section 804. Recovery and Recoupment of Compensation.--(a) |
8 | Any person who by reason of his fault has received any sum as |
9 | compensation under this act to which he was not entitled, shall |
10 | be liable to repay to the Unemployment Compensation Fund to the |
11 | credit of the Compensation Account a sum equal to the amount so |
12 | received by him and interest at the rate determined by the |
13 | Secretary of Revenue as provided by section 806 of the act of |
14 | April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code," per |
15 | month or fraction of a month from fifteen (15) days after the |
16 | Notice of Overpayment was issued until paid. Such sum shall be |
17 | collectible (1) in the manner provided in section 308.1 or |
18 | section 309 of this act, for the collection of past due |
19 | contributions, or (2) by deduction from any future compensation |
20 | payable to the claimant under this act: Provided, That interest |
21 | assessed under this section cannot be recouped by deduction from |
22 | any future compensation payable to the claimant under this act: |
23 | Provided further, That no administrative or legal proceedings |
24 | for the collection of such sum shall be instituted after the |
25 | expiration of [six] ten years following the end of the benefit |
26 | year with respect to which such sum was paid. |
27 | (b) (1) Any person who other than by reason of his fault |
28 | has received with respect to a benefit year any sum as |
29 | compensation under this act to which he was not entitled shall |
30 | not be liable to repay such sum but shall be liable to have such |
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1 | sum deducted from any future compensation payable to him with |
2 | respect to such benefit year, or the [three-year] six-year |
3 | period immediately following such benefit year: Provided, That |
4 | with respect to overpayments of one hundred dollars or more, |
5 | recoupment from such future compensation shall not exceed one- |
6 | third of the maximum benefit amount to which such person is |
7 | entitled during any such subsequent benefit year nor one-third |
8 | of the weekly benefit amount to which such person may be |
9 | entitled for any particular week. In the absence of |
10 | misrepresentation or non-disclosure of a material fact, no |
11 | recoupment shall be had if such overpayment is created by reason |
12 | of (i) a subsequent reversal of two decisions of eligibility |
13 | under the provisions of section five hundred one (e) of this |
14 | act, or (ii) the subsequent receipt of holiday pay, vacation pay |
15 | or the like of which the person had no knowledge, or (iii) a |
16 | subsequent determination that the person's base year wages were |
17 | not earned in employment as defined in this act. No provision of |
18 | this subsection shall be construed to prevent or prohibit the |
19 | voluntary repayment of compensation by such person or the |
20 | maintenance of records of overpayments by the department. |
21 | * * * |
22 | Section 6. The act is amended by adding articles to read: |
23 | ARTICLE XIV |
24 | UNEMPLOYMENT COMPENSATION SOLVENCY BONDS |
25 | Section 1401. 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 | "Account." The Unemployment Compensation Security Account |
30 | established pursuant to this article. |
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1 | "Authority." The Pennsylvania Economic Development Financing |
2 | Authority created pursuant to the law. |
3 | "Bond." Any type of revenue obligation, including a bond, |
4 | note, certificate or other instrument issued by the authority |
5 | for the benefit of the department under this article. |
6 | "Bond obligations." The principal of a bond and any premium |
7 | and interest payable on a bond. |
8 | "Federal advances." Loans by the Federal Government to the |
9 | Commonwealth for the payment of compensation, pursuant to |
10 | Article XII of the Social Security Act (42 U.S.C. § 1321 et |
11 | seq.) or any similar Federal law. |
12 | "Interest Fund." The fund established under section 601.2. |
13 | "Law." The act of August 23, 1967 (P.L.251, No.102), known |
14 | as the Economic Development Financing Law. |
15 | Section 1402. Bond issuance. |
16 | (a) Authority.--In addition to the projects and other uses |
17 | under section 6.3 of the law, the authority shall have the |
18 | authority to issue limited obligation revenue bonds as may be |
19 | necessary under this article. |
20 | (b) Debt or liability.--Bonds issued under this section |
21 | shall not be a debt or liability of the Commonwealth and shall |
22 | not create or constitute any indebtedness, liability or |
23 | obligation of the Commonwealth. All bonds shall be payable |
24 | solely from revenues or funds pledged or available for their |
25 | repayment as authorized in this article including the proceeds |
26 | of any issue of bonds. Each bond shall contain on its face a |
27 | statement to the effect that the financing authority is |
28 | obligated to pay the principal thereof or the interest thereof |
29 | only from funds made available under this article, and that the |
30 | full faith and credit of the Commonwealth is not pledged to the |
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1 | payment of the principal of or the interest on the bonds. |
2 | Section 1403. Criteria for bond issuance. |
3 | (a) Determination.--The department shall determine that the |
4 | issuance of bonds for the purposes established by this article |
5 | will result in a savings to the employers in this Commonwealth |
6 | as compared to the cost of borrowing or repayment by other |
7 | means. |
8 | (b) Alternative.--If the department determines that the |
9 | issuance of bonds to obtain funds to repay previous Federal |
10 | advances, including interest, is a cost effective alternative to |
11 | repayment of the Federal advances and interest by other means, |
12 | the department may request the authority to issue bonds for its |
13 | benefit. |
14 | (c) Terms.--The department shall specify in its request to |
15 | the authority the maximum principal amount of the bonds for any |
16 | separate bond issue, and the maximum term of the bonds, not to |
17 | exceed ten years. The total principal amount of bonds that the |
18 | department may request under this article for all bond issues |
19 | may not exceed $3,500,000,000. |
20 | (d) Increase.--The maximum principal amount determined by |
21 | the department for a bond issue under subsection (c) may be |
22 | increased to include an amount sufficient to: |
23 | (1) pay the authority's costs to issue the bonds; and |
24 | (2) provide a bond reserve. |
25 | Section 1404. Issuance of bonds by authority. |
26 | The authority shall issue bonds when requested to do so by |
27 | the department. The provisions of the law, unless otherwise |
28 | specified by this article, shall apply to bonds issued for the |
29 | purposes set forth under this article. |
30 | Section 1405. Use of bond proceeds. |
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1 | (a) Deposit.--The proceeds of bonds and notes, except |
2 | refunding bonds and replacement notes, issued by the authority |
3 | shall be deposited in the account which shall be established in |
4 | the State Treasury as a restricted receipt account. The proceeds |
5 | shall be paid by the State Treasurer periodically to those |
6 | Commonwealth officers or Commonwealth agencies at the time |
7 | necessary to carry out the purpose of this article. The proceeds |
8 | of the sale of refunding bonds and replacement notes shall be |
9 | paid to the State Treasurer and applied to the payment of |
10 | principal, any accrued interest and premium and the cost of |
11 | redemption of the bonds and notes for which the obligations |
12 | shall have been issued. |
13 | (b) Direction.--The department shall direct the use of |
14 | moneys in the fund to: |
15 | (1) repay the principal and interest of previous Federal |
16 | advances; and |
17 | (2) pay unemployment compensation benefits. |
18 | (c) Investment.--Pending application for the purposes |
19 | authorized, money held or deposited by the State Treasurer may |
20 | be invested or reinvested as are other funds in the custody of |
21 | the State Treasurer in the manner provided by law. All earnings |
22 | received from the investment or deposit of the funds shall be |
23 | paid into the State Treasury to the credit of the fund. |
24 | (d) Appropriation.--There is appropriated to the State |
25 | Treasurer from the fund as much money as may be necessary for |
26 | all costs and expenses in connection with the issue of and sale |
27 | and registration of the bonds and notes. |
28 | Section 1406. Payment of bond-related obligations. |
29 | (a) Notification.--For each calendar year in which bond |
30 | obligations will be due, the authority shall notify the |
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1 | department of the amount of bond obligations in sufficient time, |
2 | as determined by the department, to permit the department to |
3 | determine the amount of additional contributions under section |
4 | 301.6 required for that year, for deposit into the Interest |
5 | Fund. The authority's calculation of the amount of bond |
6 | obligations that will be due is subject to verification by the |
7 | department. |
8 | (b) Transfer.--Money in the Interest Fund that is needed to |
9 | pay bond obligations shall be transferred to the authority to |
10 | ensure timely payment of bond obligations, as specified in the |
11 | resolution adopted in connection with the bond issue or as |
12 | otherwise provided by the bond documents. |
13 | Section 1407. Excess additional contributions. |
14 | The department may use additional contributions collected |
15 | pursuant to section 301.6 for any calendar year that exceeds the |
16 | amount of the bond obligations due in that year as follows: |
17 | (1) to pay bond obligations due in the following year, |
18 | thereby reducing the amount of additional contributions under |
19 | section 301.6 that would be required in that year; |
20 | (2) to redeem or purchase outstanding bonds; or |
21 | (3) as provided in section 601.2(a)(2) through (e). |
22 | Section 1408. No personal liability. |
23 | The members of the department and the authority and the |
24 | officers and employees of the department and the authority are |
25 | not personally liable as a result of good faith exercise of the |
26 | rights and responsibilities granted under this article. |
27 | Section 1409. Expiration. |
28 | The authority to issue bonds under section 1404 shall expire |
29 | on December 31, 2016. |
30 | ARTICLE XV |
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1 | UNEMPLOYMENT COMPENSATION |
2 | AMNESTY PROGRAM |
3 | Section 1501. Definitions. |
4 | The following words and phrases when used in this article |
5 | shall have the meanings given to them in this section unless the |
6 | context clearly indicates otherwise: |
7 | "Amnesty period." The 90-day period commencing 180 days |
8 | after the effective date of this section. |
9 | "Employee information." The name and Social Security number |
10 | of each employee, the amount of wages paid to each employee and |
11 | the number of credit weeks for each employee, in each calendar |
12 | quarter. |
13 | "Interest." Monetary obligations imposed under sections 308 |
14 | and 804(a). |
15 | "Penalties." Monetary obligations imposed under sections |
16 | 206(d) and 313. |
17 | "Penalty weeks." Weeks for which an individual is |
18 | disqualified from receiving compensation under section 801(b). |
19 | "Program." The Unemployment Compensation Amnesty Program |
20 | established pursuant to this article. |
21 | Section 1502. Program established. |
22 | There is established an Unemployment Compensation Amnesty |
23 | Program in accordance with the provisions of this article. |
24 | Section 1503. Applicability. |
25 | (a) Employer liabilities.--Except as provided in subsections |
26 | (c) and (d), the program shall apply to the following |
27 | unemployment compensation employer liabilities: |
28 | (1) Unpaid contributions due for calendar quarters |
29 | through the third quarter of 2011, for which the employer |
30 | reported the employee information or the department acquired |
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1 | the employee information through an audit. |
2 | (2) Unpaid contributions due for calendar quarters |
3 | through the third quarter of 2011, for which the employer did |
4 | not report the employee information and the department did |
5 | not acquire the employee information through an audit. |
6 | (3) Unpaid reimbursement due on or before October 31, |
7 | 2011. |
8 | (4) Unpaid interest due on contributions paid late for |
9 | calendar quarters through the third quarter of 2011 or on |
10 | reimbursement that was due on or before October 31, 2011, and |
11 | was paid late. |
12 | (5) Unpaid penalties due for reports filed late for |
13 | calendar quarters through the third quarter of 2011. |
14 | (b) Claimant liabilities.--Except as provided in subsections |
15 | (c) and (d), the program shall apply to the following |
16 | unemployment compensation claimant liabilities: |
17 | (1) A fault overpayment of compensation under section |
18 | 804(a) established pursuant to a notice of determination of |
19 | overpayment issued by the department on or before March 31, |
20 | 2012, to the extent repayment has not occurred. |
21 | (2) A nonfault overpayment of compensation under section |
22 | 804(b)(1) established pursuant to a notice of determination |
23 | of overpayment issued by the department on or before March |
24 | 31, 2012, to the extent repayment has not occurred. |
25 | (3) Compensation paid to a claimant for calendar weeks |
26 | through the week ending March 31, 2012, for which the |
27 | department has not issued a notice of determination of |
28 | overpayment, but the claimant acknowledges that the |
29 | compensation was overpaid under circumstances to which |
30 | section 804(a) applies. |
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1 | (4) Unpaid interest due on an overpayment of |
2 | compensation under section 804(a) that was repaid on or |
3 | before March 31, 2012. |
4 | (c) Mandatory exclusion.--The following unemployment |
5 | compensation liabilities are excluded from the program: |
6 | (1) An overpayment of compensation established pursuant |
7 | to a notice of determination of overpayment that has not |
8 | become final. |
9 | (2) An employer liability for which a petition for |
10 | reassessment under section 304(b) or an application for |
11 | review and redetermination of contribution rate under section |
12 | 301(e)(2) is pending. |
13 | (d) Optional exclusion.--The department may exclude the |
14 | following unemployment compensation liabilities from the |
15 | program: |
16 | (1) A liability for which a praecipe for a writ of |
17 | execution was filed prior to receipt of the amnesty form. |
18 | (2) A liability that was referred for judicial |
19 | proceedings or for which a judicial proceeding was commenced |
20 | prior to receipt of the amnesty form. |
21 | (3) A liability that is required to be paid under an |
22 | order of a Federal or state court. |
23 | Section 1504. Procedure for participation. |
24 | To participate in the program, an employer or a claimant |
25 | shall do the following: |
26 | (1) During the amnesty period, the employer or claimant |
27 | shall file an amnesty form with the department containing all |
28 | information required by the department, including a statement |
29 | by the employer or claimant acknowledging the provisions of |
30 | section 1506(f). The form shall be filed in a manner |
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1 | specified in, and the filing date of the form shall be |
2 | determined by guidelines established by the department. |
3 | (2) If an employer is seeking amnesty with regard to a |
4 | liability described in section 1503(a)(2), the employer shall |
5 | report the employee information by filing quarterly reports |
6 | as required by regulations promulgated by the department for |
7 | all calendar quarters for which the employer did not |
8 | previously file reports and by filing amended quarterly |
9 | reports for all calendar quarters for which the employer did |
10 | not file complete reports. The quarterly reports shall |
11 | accompany the amnesty form. |
12 | (3) The employer or claimant shall pay the amount or |
13 | amounts required by section 1505. Payment shall accompany the |
14 | amnesty form. |
15 | Section 1505. Required payment and terms of amnesty. |
16 | (a) Payment.--An employer or claimant shall pay the amount |
17 | or amounts specified in this section that correspond to the |
18 | liability or liabilities for which amnesty is sought. The |
19 | department shall grant amnesty as provided in this section and |
20 | section 1506. |
21 | (a.1) Unpaid contributions.--If an employer is seeking |
22 | amnesty with regard to unpaid contributions described in section |
23 | 1503(a)(1) or (2): |
24 | (1) The employer shall pay all of the unpaid |
25 | contributions and lien filing costs, if applicable, and one- |
26 | half of the interest and penalties due. |
27 | (2) The department shall waive the remaining interest |
28 | and penalties due corresponding to the contributions. |
29 | (b) Unpaid reimbursement.--If an employer is seeking amnesty |
30 | with regard to unpaid reimbursement described in section 1503(a) |
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1 | (3): |
2 | (1) The employer shall pay all of the unpaid |
3 | reimbursement and lien filing costs, if applicable, and one- |
4 | half of the interest due. |
5 | (2) The department shall waive the remaining interest |
6 | due corresponding to the reimbursement. |
7 | (c) Unpaid interest.--If an employer is seeking amnesty with |
8 | regard to unpaid interest described in section 1503(a)(4): |
9 | (1) The employer shall pay all of the lien filing costs, |
10 | if applicable, and one-half of the unpaid interest due. |
11 | (2) The department shall waive the remaining unpaid |
12 | interest due. |
13 | (d) Unpaid penalties.--If an employer is seeking amnesty |
14 | with regard to unpaid penalties described in section 1503(a)(5): |
15 | (1) The employer shall pay all of the lien filing costs, |
16 | if applicable, and one-half of the unpaid penalties due. |
17 | (2) The department shall waive the remaining unpaid |
18 | penalties due. |
19 | (e) Fault overpayment.--If a claimant is seeking amnesty |
20 | with regard to an overpayment described in section 1503(b)(1) or |
21 | (3): |
22 | (1) The claimant shall pay the outstanding balance of |
23 | the overpayment and lien filing costs, if applicable, and |
24 | one-half of the interest due. |
25 | (2) The department shall waive the remaining interest |
26 | due and one-half of any previously imposed penalty weeks |
27 | corresponding to the overpayment that have not been served by |
28 | the claimant, and shall not issue a notice of determination |
29 | imposing penalty weeks corresponding to the overpayment. If |
30 | one-half of the unserved penalty weeks is not an even |
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1 | multiple of one, the number of penalty weeks waived shall be |
2 | rounded to the next lower multiple of one. |
3 | (f) Nonfault overpayment.--If a claimant is seeking amnesty |
4 | with regard to an overpayment described in section 1503(b)(2): |
5 | (1) The claimant shall pay 67% of the outstanding |
6 | balance of the overpayment. |
7 | (2) The department shall waive the remaining balance of |
8 | the overpayment. |
9 | (g) Unpaid interest.--If a claimant is seeking amnesty with |
10 | regard to unpaid interest described in section 1503(b)(4): |
11 | (1) The claimant shall pay all of the lien filing costs, |
12 | if applicable, and one-half of the interest due. |
13 | (2) The department shall waive the remaining unpaid |
14 | interest due. |
15 | Section 1506. Additional terms and conditions of amnesty. |
16 | (a) Agreement.--If a payment plan agreement exists between |
17 | an employer or claimant and the department for a liability for |
18 | which the employer or claimant is seeking amnesty, the employer |
19 | or claimant shall pay the amount or amounts required by section |
20 | 1505 during the amnesty period in order to receive amnesty, |
21 | notwithstanding any terms of the agreement to the contrary. |
22 | (b) Proceedings prohibited.--The department shall not |
23 | commence any administrative or judicial proceeding against an |
24 | employer with regard to any contributions, reimbursement, |
25 | interest or penalty paid under the program, or any interest or |
26 | penalties waived under the program. The department shall not |
27 | commence any administrative or judicial proceeding against a |
28 | claimant with regard to any overpayment or interest paid under |
29 | the program, or any overpayment or interest waived under the |
30 | program. |
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1 | (c) Proceedings permitted.--If a liability for contributions |
2 | described in section 1503(a)(2) or liability for an overpayment |
3 | described in section 1503(b)(3) is disclosed and paid under the |
4 | program, and the department determines that the liability as |
5 | disclosed was understated, the department may commence |
6 | administrative or judicial proceedings and impose interest, |
7 | penalties and other monetary obligations only with regard to the |
8 | difference between the liability as disclosed and the correct |
9 | amount of the liability. |
10 | (d) Allowance.--Except as provided in subsection (c), |
11 | nothing in this article shall be construed to prohibit the |
12 | department from commencing administrative or judicial |
13 | proceedings and imposing interest, penalties and other monetary |
14 | obligations with respect to any liability that is not disclosed |
15 | under the program or any amount that is not paid under the |
16 | program. |
17 | (e) Refund or credit.--An employer or claimant shall not be |
18 | owed a refund or credit under this article for any amount paid |
19 | prior to the amnesty period. |
20 | (f) Form and report.--An employer or claimant may not |
21 | commence an administrative or judicial proceeding with regard to |
22 | the amnesty form, any report filed in connection with the |
23 | program, any liability disclosed under the program or any amount |
24 | paid under the program, and shall not be owed a refund or credit |
25 | for any amount paid under the program. |
26 | Section 1507. Duties of department. |
27 | (a) Guidelines.--The department shall establish guidelines |
28 | to implement the provisions of this article and publish the |
29 | guidelines as a notice in the Pennsylvania Bulletin no less than |
30 | 90 days before the amnesty period begins. |
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1 | (b) Publicity.--The department shall publicize the program |
2 | to maximize awareness of and participation in the program. |
3 | (c) Notification.--The department shall notify all employers |
4 | and claimants who are known to have liabilities to which the |
5 | program applies. The notice shall be sent by first class mail to |
6 | the employer's or claimant's last known post office address or |
7 | by electronic transmission, if the employer or claimant has |
8 | elected to receive communications from the department by that |
9 | method. |
10 | Section 1508. Construction. |
11 | Except as expressly provided in this article, this article |
12 | shall not: |
13 | (1) be construed to relieve any employer, claimant, |
14 | individual or any entity from filing reports or other |
15 | documents required by or paying any amounts due under this |
16 | act; |
17 | (2) affect or terminate any petitions, investigations, |
18 | prosecutions or any other administrative or judicial |
19 | proceedings pending under this act; or |
20 | (3) prevent the commencement or further prosecution of |
21 | any proceedings by the proper authorities of this |
22 | Commonwealth for violation of any laws or for the assessment, |
23 | collection or recovery of any amounts due to the Commonwealth |
24 | under any laws. |
25 | Section 1509. Suspension of inconsistent acts. |
26 | All acts or parts of acts inconsistent with the provisions of |
27 | this article are suspended to the extent necessary to carry out |
28 | the provisions of this article. |
29 | Section 7. This act shall apply as follows: |
30 | (1) The amendment of section 301.6 of the act shall |
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1 | apply to the calculation of the interest factor for calendar |
2 | year 2012 and every year thereafter. |
3 | (2) The amendment of section 804 of the act shall apply |
4 | to benefit years that begin on or after the effective date of |
5 | that section. |
6 | Section 8. This act shall take effect immediately. |
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