SENATE AMENDED
PRIOR PRINTER'S NOS. 815, 3403, 3769 PRINTER'S NO. 4716
No. 731 Session of 2001
INTRODUCED BY MAITLAND, EGOLF, ALLEN, BASTIAN, CLYMER,
FAIRCHILD, HALUSKA, HENNESSEY, HESS, HORSEY, R. MILLER,
NICKOL, ROSS, RUBLEY, SAYLOR, STERN, E. Z. TAYLOR, WILT,
DALEY, THOMAS, PALLONE AND HARHAI, FEBRUARY 14, 2001
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, NOVEMBER 26, 2002
AN ACT
1 Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
2 P.L.2897, No.1), entitled "An act establishing a system of
3 unemployment compensation to be administered by the
4 Department of Labor and Industry and its existing and newly
5 created agencies with personnel (with certain exceptions)
6 selected on a civil service basis; requiring employers to
7 keep records and make reports, and certain employers to pay
8 contributions based on payrolls to provide moneys for the
9 payment of compensation to certain unemployed persons;
10 providing procedure and administrative details for the
11 determination, payment and collection of such contributions
12 and the payment of such compensation; providing for
13 cooperation with the Federal Government and its agencies;
14 creating certain special funds in the custody of the State
15 Treasurer; and prescribing penalties," further providing for
16 DECISION OF REFEREE AND FURTHER APPEALS AND REVIEWS, FOR <--
17 DISQUALIFICATIONS TO PARTICIPATE IN HEARINGS, FOR FINALITY OF
18 DECISIONS, FOR false statements and representations, for
19 violation of the act and rules and regulations and for
20 penalties.
21 The General Assembly of the Commonwealth of Pennsylvania
22 hereby enacts as follows:
23 Section 1. Section 801 of the act of December 5, 1936 (2nd <--
24 Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
25 Compensation Law, amended June 22, 1964 (Sp.Sess., P.L.112,
1 No.7), is amended to read:
2 SECTION 1. SECTION 502 OF THE ACT OF DECEMBER 5, 1936 (2ND <--
3 SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS THE UNEMPLOYMENT
4 COMPENSATION LAW, AMENDED JULY 10, 1980 (P.L.521, NO.108), IS
5 AMENDED TO READ:
6 SECTION 502. DECISION OF REFEREE; FURTHER APPEALS AND
7 REVIEWS.--WHERE AN APPEAL FROM THE DETERMINATION OR REVISED
8 DETERMINATION, AS THE CASE MAY BE, OF THE DEPARTMENT IS TAKEN, A
9 REFEREE SHALL, AFTER AFFORDING THE PARTIES AND THE DEPARTMENT
10 REASONABLE OPPORTUNITY FOR A FAIR HEARING, AFFIRM, MODIFY, OR
11 REVERSE SUCH FINDINGS OF FACT AND THE DETERMINATION OR REVISED
12 DETERMINATION, AS THE CASE MAY BE, OF THE DEPARTMENT AS TO HIM
13 SHALL APPEAR JUST AND PROPER. THE PARTIES AND THEIR ATTORNEYS OR
14 OTHER REPRESENTATIVES OF RECORD AND THE DEPARTMENT SHALL BE DULY
15 NOTIFIED OF THE TIME AND PLACE OF A REFEREE'S HEARING AND OF THE
16 REFEREE'S DECISION, AND THE REASONS THEREFOR, WHICH SHALL BE
17 DEEMED THE FINAL DECISION OF THE BOARD, UNLESS AN APPEAL IS
18 FILED THEREFROM, WITHIN FIFTEEN DAYS AFTER THE DATE OF SUCH
19 DECISION THE BOARD ACTS ON ITS OWN MOTION, TO REVIEW THE
20 DECISION OF THE REFEREE. A MEMORANDUM OF TESTIMONY OF ANY
21 HEARING BEFORE ANY REFEREE SHALL BE MADE AND BE PRESERVED FOR A
22 PERIOD OF NINETY DAYS FOLLOWING EXPIRATION OF THE PERIOD FOR
23 FILING AN APPEAL FROM THE FINAL DECISION RENDERED IN THE CASE.
24 SECTION 2. SECTION 503 OF THE ACT IS AMENDED TO READ:
25 SECTION 503. DISQUALIFICATIONS TO PARTICIPATE IN HEARINGS.--
26 (A) NO REFEREE, MEMBER OF THE BOARD, OR EMPLOYE OF THE
27 DEPARTMENT SHALL PARTICIPATE IN THE HEARING OF ANY CASE IN WHICH
28 HE HIMSELF IS AN INTERESTED PARTY. THE BOARD MAY DESIGNATE AN
29 ALTERNATE TO SERVE IN THE ABSENCE OR DISQUALIFICATION OF ANY
30 REFEREE.
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1 (B) REFEREES SHALL CONDUCT THEIR HEARINGS DE NOVO.
2 SECTION 3. SECTION 509 OF THE ACT, AMENDED APRIL 14, 1976
3 (P.L.113, NO.50) AND REPEALED IN PART APRIL 28, 1978 (P.L.202,
4 NO.53), IS AMENDED TO READ:
5 SECTION 509. FINALITY OF DECISIONS.--ANY DECISION MADE BY
6 THE DEPARTMENT OR ANY REFEREE OR THE BOARD SHALL NOT BE SUBJECT
7 TO COLLATERAL ATTACK AS TO ANY APPLICATION CLAIM OR CLAIMS
8 COVERED THEREBY OR OTHERWISE BE DISTURBED, UNLESS APPEALED FROM.
9 SUBJECT TO APPEAL PROCEEDINGS AND JUDICIAL REVIEW, ANY RIGHT,
10 FACT OR MATTER IN ISSUE WHICH WAS DIRECTLY PASSED UPON OR
11 NECESSARILY INVOLVED IN ANY DECISION OF A REFEREE OR THE BOARD
12 OR THE COURT AND WHICH HAS BECOME FINAL SHALL BE CONCLUSIVE FOR
13 ALL PURPOSES OF THIS ACT AND SHALL NOT BE SUBJECT TO COLLATERAL
14 ATTACK AS AMONG ALL AFFECTED PARTIES WHO HAD NOTICE OF SUCH
15 DECISION: PROVIDED, HOWEVER, THAT WHENEVER AN APPEAL INVOLVES A
16 QUESTION AS TO WHETHER SERVICES WERE PERFORMED BY A CLAIMANT IN
17 EMPLOYMENT OR FOR AN EMPLOYER OR WHETHER REMUNERATION PAID
18 CONSTITUTED WAGES, A DECISION THEREON SHALL NOT BE CONCLUSIVE AS
19 TO AN EMPLOYING ENTITY'S LIABILITY FOR CONTRIBUTIONS UNLESS THE
20 EMPLOYING ENTITY WAS GIVEN SPECIAL NOTICE OF SUCH ISSUE AND OF
21 THE PENDENCY OF THE APPEAL AND WAS AFFORDED A REASONABLE
22 OPPORTUNITY BY THE REFEREE OR THE BOARD TO ADDUCE EVIDENCE
23 BEARING ON SUCH QUESTION. NO FINDING OF FACT OR LAW, JUDGMENT,
24 CONCLUSION OR FINAL ORDER MADE WITH RESPECT TO A CLAIM FOR
25 UNEMPLOYMENT COMPENSATION UNDER THIS ACT MAY BE DEEMED TO BE
26 CONCLUSIVE OR BINDING IN ANY SEPARATE OR SUBSEQUENT ACTION OR
27 PROCEEDING IN ANOTHER FORUM.
28 SECTION 4. SECTION 801 OF THE ACT, AMENDED JUNE 22, 1964
29 (SP.SESS., P.L.112, NO.7), IS AMENDED TO READ:
30 Section 801. False Statements and Representations to Obtain
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1 or Increase Compensation.--(a) Whoever makes a false statement
2 or representation knowing it to be false, or knowingly fails to
3 disclose a material fact to obtain or increase any compensation
4 or other payment under this act or under an employment security
5 law of any other state or of the Federal Government or of a
6 foreign government, either for himself or for any other person,
7 shall upon conviction thereof in a summary proceeding, be
8 sentenced to pay a fine of not less than [thirty nor more than
9 two hundred] one hundred dollars nor more than one thousand
10 dollars, or shall be sentenced to imprisonment for not longer
11 than thirty days, or both, and each such false statement or
12 representation or failure to disclose a material fact shall
13 constitute a separate offense. In addition to any other
14 sanction, an individual convicted under this subsection shall be
15 ordered to make restitution of the compensation to which the
16 individual was not entitled and of interest on that compensation
17 from the date of receipt through the date of payment. IN <--
18 ACCORDANCE WITH SECTION 804(A).
19 (b) Whoever makes a false statement knowing it to be false,
20 or knowingly fails to disclose a material fact to obtain or
21 increase any compensation or other payment under this act or
22 under an employment security law of any other state or of the
23 Federal Government or of a foreign government, may be
24 disqualified in addition to such week or weeks of improper
25 payments for a penalty period of two weeks and for not more than
26 one additional week for each such week of improper payment:
27 Provided, That no additional weeks of disqualification shall be
28 imposed under this section if prosecution proceedings have been
29 instituted against the claimant because of such
30 misrepresentation or non-disclosure. The departmental
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1 determination imposing penalty weeks under the provisions of
2 this subsection shall be subject to appeal in the manner
3 provided in this act for appeals from determinations of
4 compensation. The penalty weeks herein provided for shall be
5 imposed against any weeks with respect to which the claimant
6 would otherwise be eligible for compensation, under the
7 provisions of this act, which begin within the [two year] four
8 year period following the [departmental determination imposing
9 such penalty weeks] end of the benefit year with respect to
10 which the improper payment or payments occurred.
11 Section 2 5. Section 802 of the act, amended March 30, 1955 <--
12 (P.L.6, No.5), is amended to read:
13 Section 802. False Statements and Representations to Prevent
14 or Reduce Compensation.--Any employer (whether or not liable for
15 the payment of contributions under this act) or any officer or
16 agent of such employer or any other person who makes a false
17 statement or representation knowing it to be false, or who
18 knowingly fails to disclose a material fact to prevent or reduce
19 the payment of compensation to any employe entitled thereto, or
20 to avoid becoming or remaining subject hereto, or to avoid or
21 reduce any contribution or other payment required from an
22 employer under this act, or who wilfully fails or refuses to
23 make any such contribution or other payment or to furnish any
24 reports required hereunder, or who wilfully fails or refuses to
25 produce or permit the inspection or copying of records as
26 required hereunder, shall, upon conviction thereof in a summary
27 proceeding, be sentenced to pay a fine of not less than [fifty]
28 one hundred dollars nor more than [five] fifteen hundred
29 dollars[, and in default of the payment of such fine and costs
30 shall be sentenced] or to imprisonment for not longer than
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1 thirty days, [and each] or both. Each such false statement or
2 representation or failure to disclose a material fact, and each
3 day of such failure or refusal shall constitute a separate
4 offense. In addition to any other sanction, any employer,
5 officer, agent or other person convicted under this section for
6 willful failure or refusal to make a payment shall be ordered to
7 make restitution of the unpaid amounts, including interest and
8 penalty from the date the payment was due through the date of
9 payment.
10 Section 3 6. Section 803 of the act is amended to read: <--
11 Section 803. Violation of Act and Rules and Regulations.--
12 Any person who shall wilfully violate any provision of this act
13 or any rule or regulation thereunder, the violation of which is
14 made unlawful, or the observance of which is required under the
15 terms of this act, and for which a penalty is neither prescribed
16 herein nor provided by any other applicable statute, shall, upon
17 conviction thereof in a summary proceeding, be sentenced to pay
18 a fine of not less than [twenty nor more than two hundred] one
19 hundred dollars nor more than one thousand dollars[, and in
20 default of the payment of such fine and costs shall be
21 sentenced] or to imprisonment for not longer than thirty days,
22 [and each] or both. Each day such violation continues shall be
23 deemed to be a separate offense.
24 Section 4 7. This act shall take effect in 60 days. <--
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