PRINTER'S NO. 2701
No. 2051 Session of 2001
INTRODUCED BY S. MILLER, THOMAS, BROWNE, GEIST, HENNESSEY,
MELIO, R. MILLER, NICKOL, PALLONE, ROBERTS, SATHER, STEELMAN,
E. Z. TAYLOR AND WILT, OCTOBER 22, 2001
REFERRED TO COMMITTEE ON LABOR RELATIONS, OCTOBER 22, 2001
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 State employee contributions and for election of
17 reimbursement for employees of nonprofit organizations and of
18 political subdivisions.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 1003 of the act of December 5, 1936 (2nd
22 Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
23 Compensation Law, amended July 21, 1983 (P.L.68, No.30), is
24 amended to read:
25 Section 1003. Contributions.--(a) In lieu of contributions
1 required to be paid by employers under this act, the
2 Commonwealth [of Pennsylvania] shall pay into the Unemployment
3 Compensation Fund an amount equal to the amount of regular
4 benefits and of one-half of the extended benefits paid, (after
5 December 31, 1978 the full amount of extended benefits paid)
6 that is attributable to service in the employ of the
7 Commonwealth and all its departments, bureaus, boards, agencies,
8 commissions and authorities. If the Commonwealth has filed a
9 notice with the department under department regulations within
10 the prescribed time limits, the Commonwealth shall not be
11 assessed for any portion of benefits paid to an individual who
12 is:
13 (1) collecting benefits based on a separation from another
14 employer; and
15 (2) engaged in part-time employment for the Commonwealth
16 which continues without material change.
17 (b) The amount which the Commonwealth shall pay into the
18 Unemployment Compensation Fund, as hereinabove set forth, shall
19 be computed by the department and reported quarterly to the
20 State Treasurer who shall thereupon pay such amount from the
21 General Fund of the Commonwealth, upon approval thereof in
22 accordance with the law then in effect, except that to the
23 extent that compensation is paid on the basis of wages paid by
24 an authority of the Commonwealth from its funds such authority
25 shall pay such amount into the Unemployment Compensation Fund
26 from its own funds.
27 (c) Past due payments of amounts in lieu of contributions,
28 or reports with respect thereto, shall be subject to the same
29 interest and penalties that, pursuant to section 308 apply to
30 past due contributions and section 206 apply to past due
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1 reports.
2 Section 2. Sections 1104 and 1202.2 of the act, amended July
3 6, 1977 (P.L.41, No.22), are amended to read:
4 Section 1104. Election of Reimbursement.--(a) Any nonprofit
5 organization which, on or after January 1, 1972, is or becomes
6 liable to the contribution provisions of this act may, in lieu
7 of payment of such contributions, elect to pay to the department
8 for the Unemployment Compensation Fund an amount equal to the
9 amount of regular benefits and of one-half of the extended
10 benefits paid, that is attributable to service in the employ of
11 such nonprofit organization. If a nonprofit organization has
12 filed a notice with the department under department regulations
13 within the prescribed time limits, the nonprofit organization
14 shall not be assessed for any portion of benefits paid to an
15 individual who is collecting benefits based on a separation from
16 another employer and engaged in part-time employment for the
17 nonprofit organization which continues without material change.
18 Such employer shall continue to be liable for reimbursement of
19 benefit payments based on wages paid prior to the termination
20 date of such election.
21 (b) Such election shall be for a period of not less than two
22 taxable years unless sooner terminated by the department as
23 hereinafter provided.
24 Section 1202.2. Election of Reimbursement.--(a) Any
25 political subdivision of the Commonwealth or any instrumentality
26 of one or more thereof, which on or after January 1, 1978 and
27 prior to January 1, 1979 is or becomes liable to the
28 contribution provisions of the act may, in lieu of payment of
29 such contributions, elect to pay to the department for the
30 Unemployment Compensation Fund, an amount equal to the amount of
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1 regular benefits and of one-half of the extended benefits paid,
2 (after December 31, 1978 the full amount of extended benefits
3 paid) that is attributable to service in the employ of such
4 political subdivision of the Commonwealth or any instrumentality
5 of one or more thereof. If an employer subject to this section
6 has filed a notice with the department under department
7 regulations within the prescribed time limits, the employer
8 shall not be assessed for any portion of benefits paid to an
9 individual who is collecting benefits based on a separation from
10 another employer and engaged in part-time employment for the
11 employer subject to this section which continues without
12 material change. Such employer shall continue to be liable for
13 reimbursement of benefit payments based on wages paid prior to
14 the termination date of such election.
15 (b) Such election shall be for a period of not less than two
16 taxable years unless sooner terminated by the department as
17 hereinafter provided.
18 Section 3. This act shall take effect in 60 days.
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