1Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 
2P.L.2897, No.1), entitled "An act establishing a system of 
3unemployment compensation to be administered by the 
4Department of Labor and Industry and its existing and newly 
5created agencies with personnel (with certain exceptions) 
6selected on a civil service basis; requiring employers to 
7keep records and make reports, and certain employers to pay 
8contributions based on payrolls to provide moneys for the 
9payment of compensation to certain unemployed persons; 
10providing procedure and administrative details for the 
11determination, payment and collection of such contributions 
12and the payment of such compensation; providing for 
13cooperation with the Federal Government and its agencies; 
14creating certain special funds in the custody of the State 
15Treasurer; and prescribing penalties," further providing for 
16contributions by employees; establishing the Service and 
17Infrastructure Improvement Fund; and further providing for 
18the Unemployment Compensation Fund.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1. Section 301.4 of the act of December 5, 1936 (2nd
22Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
23Compensation Law, amended June 12, 2012 (P.L.577, No.60), is
24amended to read:

25Section 301.4. Contributions by Employes.--(a)
26Notwithstanding any other provision of this act, each employe

1shall pay contributions at a rate of zero per centum (0.0%) for
2calendar year 1989 and at a rate as set forth in section 301.7
3for each calendar year thereafter of all wages paid for
4"employment" as defined by the act without regard to the
5limitation specified in section 4(x)(1) of this act.

6(b) Each employer subject to this act shall be responsible
7for withholding and shall withhold, in trust, such contributions
8from the wages of his employes at the time such wages are paid,
9and shall report and transmit such deductions to the department
10for deposit into the Unemployment Compensation Fund [and], the 
11Reemployment Fund and the Service and Infrastructure Improvement 
12Fund pursuant to the allocation prescribed in subsection (e), in
13accordance with rules and procedures established by the
14department.

15(c) Any employer who is an individual, or any officer or
16agent of any employer, who violates the trust provision of this
17section, fails to withhold, hold in trust or fails to transmit
18to the department all contributions withheld from the wages of
19his employes in accordance with the rules and procedure
20established by the department shall be subject to the provisions
21of clause (2) of subsection (a) of section 301 and sections 308,
22308.1, 308.2, 308.3 and 309 of this act.

23(d) This section shall not be deemed to affect or impair the
24operation of any State statute or ordinance or resolution of a
25political subdivision which levies or collects any wage tax or
26similar tax. Contributions made pursuant to this section are not
27intended to reduce or otherwise affect any tax on wages or
28similar tax.

29(e) Contributions paid under this section shall be allocated
30by the department [between] among the Unemployment Compensation

1Fund [and], the Reemployment Fund and the Service and 
2Infrastructure Improvement Fund as follows:

3(1) [Ninety-five per centum (95%)] Five per centum (5%) of
4the contributions on wages paid from January 1, 2013, through
5September 30, 2017, shall be deposited into the [Unemployment
6Compensation Fund and five per centum (5%) of such contributions
7shall be deposited into the] Reemployment Fund to the extent the
8contributions are paid on or before December 31, 2017.

9(2) [One hundred per centum (100%) of the contributions on
10wages paid from January 1, 2013, through September 30, 2017,
11shall be deposited into the Unemployment Compensation Fund to
12the extent the contributions are paid on or after January 1,
132018.] During each calendar year from 2013 through 2016 an 
14amount determined by the secretary with the approval of the 
15Governor shall be deposited into the Service and Infrastructure 
16Improvement Fund. For calendar year 2013, the amount determined 
17under this clause may not exceed forty million dollars 
18($40,000,000). For calendar year 2014, the amount determined 
19under this clause may not exceed thirty million dollars 
20($30,000,000). For calendar year 2015, the amount determined 
21under this clause may not exceed twenty million dollars 
22($20,000,000). For calendar year 2016, the amount determined 
23under this clause may not exceed ten million dollars 
24($10,000,000).

25(3) [One hundred per centum (100%) of the contributions on
26wages paid on or after October 1, 2017, shall be deposited into
27the Unemployment Compensation Fund.] The remaining contributions 
28shall be deposited into the Unemployment Compensation Fund.

29(4) The department may deposit contributions in accordance
30with clause (2) before depositing contributions in accordance

1with clauses (1) and (3).

2Section 2. The act is amended by adding a section to read:

3Section 301.9. Service and Infrastructure Improvement
4Fund.--(a) There is established a restricted account in the
5State Treasury to be known as the Service and Infrastructure
6Improvement Fund.

7(b) Moneys in the Service and Infrastructure Improvement
8Fund shall consist of contributions deposited into the fund
9pursuant to section 301.4(e)(2).

10(c) Moneys in the Service and Infrastructure Improvement
11Fund are appropriated on a continuing basis, upon approval of
12the Governor, to the department for the following purposes:

13(1) To improve the quality, efficiency and timeliness of
14services provided by the service center system to individuals
15claiming compensation under this act, including claim filing,
16claim administration and adjudication services.

17(2) Expenditures for information management technology,
18communications technology and other infrastructure components
19that the secretary determines are likely to result in
20significant and lasting improvements to the unemployment
21compensation system.

22(3) To pay the costs of collecting the contributions
23deposited into the Service and Infrastructure Improvement Fund
24pursuant to section 301.4(e)(2).

25(d) Any moneys in the Service and Infrastructure Improvement
26Fund that are not expended or obligated as of December 31, 2018,
27shall be transferred to the Unemployment Compensation Fund under
28section 601.

29(e) Moneys in the Service and Infrastructure Improvement
30Fund shall not lapse at any time nor be transferred to any other

1fund except as provided in subsection (d).

2(f) No later than June 30 of each calendar year from 2014
3through 2019 the department shall provide a report to the
4Governor and the General Assembly, through the Secretary-
5Parliamentarian of the Senate and the Chief Clerk of the House
6of Representatives, regarding the Service and Infrastructure
7Improvement Fund, which report shall include an accounting for
8the contributions deposited into the fund, the expenditures and
9transfers from the fund during the prior year and a description
10of the purposes for which expenditures from the fund were made
11in the prior year.

12Section 3. Section 601(a) of the act, amended June 12, 2012
13(P.L.577, No.60), is amended to read:

14Section 601. Unemployment Compensation Fund.--(a) There is
15hereby created a special fund separate and apart from all public
16moneys or funds of this Commonwealth to be known as the
17Unemployment Compensation Fund. All contributions paid by
18employers and employes, together with penalties and interest
19thereon, received or collected by the department from employers
20under the provisions of this act, except contributions which are 
21to be paid into the Reemployment Fund and the Service and 
22Infrastructure Improvement Fund as provided in section 301.4(e),
23such penalties and interest which are to be paid into the
24Special Administration Fund as provided in section 601.1 and
25taxes collected under section 301.6 of this act which are to be
26paid into the Debt Service Fund as provided in section 601.2,
27shall be paid into the Unemployment Compensation Fund, and shall
28be credited by the department to a ledger account to be known as
29the Employers' Contribution Account. Contributions which are to 
30be paid into the Reemployment Fund and the Service and
 

1Infrastructure Improvement Fund as provided in section 301.4(e), 
2interest and penalties which are to be credited to the Special
3Administration Fund and taxes collected under section 301.6 may
4be temporarily held in the Employers' Contribution Account
5solely for clearance purposes prior to transfer to the 
6Reemployment Fund, the Service and Infrastructure Improvement 
7Fund, the Special Administration Fund or the Debt Service Fund
8and while so held in the Employers' Contribution Account shall
9not be deemed a part of the Unemployment Compensation Fund. All
10moneys from time to time received and credited to the Employers'
11Contribution Account (exclusive of refunds made under section
12311, contributions transferred to the Reemployment Fund and the 
13Service and Infrastructure Improvement Fund pursuant to section 
14301.4(e) and interest and penalties transferred as herein
15provided to the Special Administration Fund and taxes
16transferred to the Debt Service Fund) shall be paid promptly by
17the department into the Unemployment Compensation Fund, except
18as otherwise provided in section 605 of this act. All moneys
19credited to this Commonwealth's account in the Unemployment
20Compensation Fund pursuant to section 903 of the Federal Social
21Security Act (42 U.S.C. § 1103) shall be included in the
22Unemployment Compensation Fund.

23* * *

24Section 4. This act shall take effect immediately.