House Bill 26 – Analysis
HOUSE BILL 26 SPONSOR: Rep. W. Keller
PRINTER’S NO. 1944
The legislation amends the act of December 5, 1936 (2nd Sp. Sess., 1937 P.L. 2897, No. 1) known as the Pennsylvania Unemployment Compensation Law.
Section 301.4 (Contributions by Employees) is amended to create the Service and Infrastructure Improvement Fund, separate and apart from the Unemployment Compensation Fund and the Reemployment Fund. The section is further amended to provide that employee contributions are allocated as follows:
-Five percent of the funds shall be deposited in the Reemployment Fund from January 1,
2013 through December 31, 2017.
-During each calendar year from 2013 through 2016, an amount determined by the Secretary
shall be deposited in the Service and Infrastructure Improvement Fund. For 2013, the
amount may not exceed $40 million. For 2014, the amount may not exceed $30 million. For
2015 and 2016, the amount may not exceed $190 million adjusted by the Consumer Price
Index, minus the amount of federal administrative funding (estimated to be about $140-150
-Remaining contributions shall be deposited in the Unemployment Compensation Fund.
Section 301.9 (Service and Infrastructure Improvement Fund) is added to the act to specify uses for the new fund, which shall be maintained in a restricted account. Funds shall be used to increase the quality, efficiency and timeliness of the UC Service Centers.
Any unexpended or unobligated money remaining in the Service and Infrastructure Improvement Fund on December 31, 2018 shall be transferred to the Unemployment Compensation Fund.
No later than June 30 of each year between 2014 and 2019, the Department shall provide a report to the General Assembly.
Consistent with federal law that requires administrative functions of the unemployment compensation system to be performed by governmental employees, the Department is prohibited from outsourcing such functions to third parties.