SENATE AMENDED
PRIOR PRINTER'S NOS. 2463, 3201 PRINTER'S NO. 4637
No. 1898 Session of 2001
INTRODUCED BY METCALFE, HERSHEY, STERN, DALLY, CREIGHTON, LEH,
TRICH, WASHINGTON AND WILT, SEPTEMBER 18, 2001
SENATOR ARMSTRONG, LABOR AND INDUSTRY, IN SENATE, AS AMENDED,
NOVEMBER 19, 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," providing for relief
16 from certain employer charges; AND FURTHER PROVIDING FOR <--
17 ESTABLISHMENT AND MAINTENANCE OF EMPLOYER'S ACCOUNTS.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. The act of December 5, 1936 (2nd Sp.Sess., 1937
21 P.L.2897, No.1), known as the Unemployment Compensation Law, is
22 amended by adding a section to read:
23 Section 212. Relief from Charges for Certain Employers.--(a)
24 An employer that makes payments in lieu of contributions
1 pursuant to Article X, XI or XII shall be relieved of charges in
2 accordance with section 302(a) and regulations of the
3 department, for compensation paid on applications for benefits
4 effective during a calendar year, if the employer satisfies the
5 following requirements:
6 (1) The employer pays a nonrefundable solvency fee under
7 subsection (b) for the calendar year within thirty (30) days
8 after notice of the fee is sent to the employer's last known
9 address. The department may for good cause extend the period
10 within which the fee must be paid.
11 (2) All reports required by this act and regulations of the
12 department for calendar quarters through the second calendar
13 quarter of the preceding calendar year are filed.
14 (b) An employer's solvency fee for a calendar year shall be
15 the monetary amount determined by multiplying the solvency fee
16 rate for the year by the amount of wages paid, without regard to
17 the exclusion in section 4(x)(1), by the employer in the four
18 consecutive calendar quarters ending on June 30 of the preceding
19 calendar year: Provided, That an employer's solvency fee for a
20 year shall not be less than twenty-five dollars ($25).
21 (1) For calendar years 2003, 2004 and 2005, the solvency fee
22 rate shall be three ten thousandths (.0003).
23 (2) In 2005 the secretary shall redetermine the solvency fee
24 rate. The secretary shall redetermine the rate so that the
25 unrounded rate yields solvency fees approximately equal to the
26 amount of compensation for which charges are relieved under this
27 section. For purposes of redetermining the rate, the secretary
28 shall use the amount of compensation for which charges are
29 relieved under this section paid during 2003 and 2004 and the
30 amount of wages paid, without regard to the exclusion in section
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1 4(x)(1), during the same time period by employers who paid a
2 solvency fee under this section. The rate as redetermined shall
3 take effect for the next calendar year and shall remain in
4 effect for three years.
5 (3) Beginning in 2008 and each fifth year thereafter, the
6 secretary shall redetermine the solvency fee rate. The secretary
7 shall redetermine the rate so that the unrounded rate yields
8 solvency fees approximately equal to the amount of compensation
9 for which charges are relieved under this section. For purposes
10 of redetermining the rate, the secretary shall use the amount of
11 compensation for which charges are relieved under this section
12 paid during the five calendar years immediately preceding the
13 year in which the redetermination occurs and the amount of wages
14 paid, without regard to the exclusion in section 4(x)(1), during
15 the same time period by employers who paid a solvency fee under
16 this section. The rate as redetermined shall take effect for the
17 next calendar year and shall remain in effect for five years.
18 (4) If the solvency fee rate redetermined under paragraphs
19 (2) and (3) is not a multiple of one-hundredth of one per cent
20 it shall be rounded to the next higher multiple of one-hundredth
21 of one per cent.
22 (c) Solvency fees paid by employers under this section shall
23 be deposited in the Unemployment Compensation Fund. Compensation
24 for which charges are relieved under this section shall not be
25 used in the calculation of the State adjustment factor under
26 section 301.1(e).
27 (d) The provisions of this section shall constitute the
28 exclusive means by which an employer who makes payments in lieu
29 of contributions pursuant to Article X, XI or XII may be excused
30 from reimbursing the Unemployment Compensation Fund for
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1 compensation paid to an individual that is based on wages paid
2 by the employer or that portion of the individual's compensation
3 determined in accordance with section 1108.
4 (e) A group account under section 1109 shall constitute an
5 employer for purposes of this section.
6 SECTION 2. SECTION 302(A)(1) OF THE ACT, AMENDED JULY 21, <--
7 1983 (P.L.68, NO.30), IS AMENDED TO READ:
8 SECTION 302. ESTABLISHMENT AND MAINTENANCE OF EMPLOYER'S
9 RESERVE ACCOUNTS.--THE DEPARTMENT SHALL ESTABLISH AND MAINTAIN
10 FOR EACH EMPLOYER A SEPARATE EMPLOYER'S RESERVE ACCOUNT IN THE
11 FOLLOWING MANNER:
12 (A) (1) SUCH ACCOUNT SHALL BE CREDITED WITH ALL
13 CONTRIBUTIONS PAID BY SUCH EMPLOYER FOR PERIODS SUBSEQUENT TO
14 JUNE THIRTIETH, ONE THOUSAND NINE HUNDRED FORTY-EIGHT. SUCH
15 ACCOUNT SHALL BE CHARGED WITH AN AMOUNT DETERMINED BY
16 MULTIPLYING THE WAGES OF COMPENSATED EMPLOYES OF SUCH EMPLOYER
17 FOR THE TWELVE MONTH PERIOD ENDED JUNE THIRTIETH, ONE THOUSAND
18 NINE HUNDRED FORTY-NINE, BY THE STATE EXPERIENCE HERETOFORE USED
19 IN DETERMINING RATES OF CONTRIBUTIONS FOR THE YEAR ONE THOUSAND
20 NINE HUNDRED FORTY-NINE. SUBSEQUENT TO JANUARY 1, 1984, SUCH
21 ACCOUNT SHALL BE CHARGED WITH ALL COMPENSATION, INCLUDING
22 DEPENDENTS' ALLOWANCES, PAID TO EACH INDIVIDUAL WHO RECEIVED
23 FROM SUCH EMPLOYER WAGE CREDITS CONSTITUTING THE BASE OF SUCH
24 COMPENSATION, IN THE PROPORTION THAT SUCH WAGE CREDITS WITH SUCH
25 EMPLOYER BEARS TO THE TOTAL WAGE CREDITS RECEIVED BY SUCH
26 INDIVIDUAL FROM ALL EMPLOYERS: PROVIDED, THAT IF THE DEPARTMENT
27 FINDS THAT SUCH INDIVIDUAL WAS SEPARATED FROM HIS MOST RECENT
28 WORK FOR SUCH EMPLOYER DUE TO BEING DISCHARGED FOR WILLFUL
29 MISCONDUCT CONNECTED WITH SUCH WORK, OR DUE TO HIS LEAVING SUCH
30 WORK WITHOUT GOOD CAUSE ATTRIBUTABLE TO HIS EMPLOYMENT, OR DUE
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1 TO HIS BEING SEPARATED FROM SUCH WORK UNDER CONDITIONS WHICH
2 WOULD RESULT IN DISQUALIFICATION FOR BENEFITS UNDER THE
3 PROVISIONS OF SECTION 3, THEREAFTER NO COMPENSATION PAID TO SUCH
4 INDIVIDUAL WITH RESPECT TO ANY WEEK OF UNEMPLOYMENT OCCURRING
5 SUBSEQUENT TO SUCH SEPARATION, WHICH IS BASED UPON WAGES PAID BY
6 SUCH EMPLOYER WITH RESPECT TO EMPLOYMENT PRIOR TO SUCH
7 SEPARATION, SHALL BE CHARGED TO SUCH EMPLOYER'S ACCOUNT UNDER
8 THE PROVISIONS OF THIS SUBSECTION (A); PROVIDED, SUCH EMPLOYER
9 HAS FILED A NOTICE WITH THE DEPARTMENT IN ACCORDANCE WITH ITS
10 RULES AND REGULATIONS AND WITHIN THE TIME LIMITS PRESCRIBED
11 THEREIN; AND PROVIDED IF THE DEPARTMENT FINDS THAT SUCH
12 INDIVIDUAL'S UNEMPLOYMENT IS DIRECTLY CAUSED BY A MAJOR NATURAL
13 DISASTER DECLARED BY THE PRESIDENT PURSUANT TO SECTION 102(1) OF
14 THE DISASTER RELIEF ACT OF 1970 (P.L.91-606) AND SUCH INDIVIDUAL
15 WOULD HAVE BEEN ELIGIBLE FOR DISASTER UNEMPLOYMENT ASSISTANCE AS
16 PROVIDED IN SECTION 240 OF THAT ACT WITH RESPECT TO SUCH
17 UNEMPLOYMENT BUT FOR THE RECEIPT OF UNEMPLOYMENT COMPENSATION,
18 NO COMPENSATION PAID TO SUCH INDIVIDUAL WITH RESPECT TO ANY WEEK
19 OF UNEMPLOYMENT OCCURRING DUE TO SUCH NATURAL DISASTER, TO A
20 MAXIMUM OF THE EIGHT WEEKS IMMEDIATELY FOLLOWING THE PRESIDENT'S
21 DECLARATION OF EMERGENCY, SHALL BE CHARGED TO THE EMPLOYER'S
22 ACCOUNT UNDER THE PROVISIONS OF THIS SUBSECTION.
23 * * *
24 Section 2 3. The addition of section 212 of the act shall be <--
25 applicable to calendar years beginning after December 31, 2002,
26 and to compensation paid on applications for benefits effective
27 after December 31, 2002.
28 Section 3 4. This act shall take effect immediately. <--
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