HB 1915 — An Act amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law, in contributions by employers and employees, further providing for contributions by employees and for Service and Infrastructure Improvement Fund.

PRIOR PRINTER'S NO.

2706 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of 2017 No.

2735INTRODUCED THEBY GENERALKAUFFMAN, ASSEMBLYCOX, OFGROVE, PENNSYLVANIAMcGINNIS, HOUSEMILLARD, BILLMENTZER, SessionRADER, ofWARD, BLOOM, DUNBAR, TOPPER, SAYLOR, TALLMAN, DUSH, PICKETT AND RYAN, NOVEMBER 14, 2017 No.REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, NOVEMBER 14, 2017 AN ACT Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), entitled "An act establishing a system of unemployment compensation to be administered by the Department of Labor and Industry and its existing and newly created agencies with personnel (with certain exceptions) selected on a civil service basis;

INTRODUCED BY KAUFFMAN, COX, GROVE, McGINNIS, MILLARD, MENTZER, RADER, WARD, BLOOM, DUNBAR, TOPPER, SAYLOR, TALLMAN, DUSH, PICKETT, RYAN AND A.

HARRIS, NOVEMBER 14, 2017 AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF REPRESENTATIVES, AS AMENDED, NOVEMBER 20, 2017 AN ACT Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), entitled "An act establishing a system of unemployment compensation to be administered by the Department of Labor and Industry and its existing and newly created agencies with personnel (with certain exceptions) selected on a civil service basis;

determination,providing paymentprocedure and collectionadministrative ofdetails suchfor contributionsthe and the payment of such compensation;

providing forfoributions cooperation with the Federal Government and its agencies;

* * * (2) During each calendar year from 2013 through [2017] 20202020, <-- 2021, an amount determined by the secretary with the approval of <-- the Governor shall be deposited into the Service and Infrastructure Improvement Fund.

For calendar year 2018, the amount determined under this clause may not exceed twenty THIRTY million dollars ($20,000,000)($20,000,000). <-- ($30,000,000).

For calendar year 2019, the amount determined <-- under this clause may not exceed fifteen TWENTY-FIVE million <-- dollars ($15,000,000)($15,000,000). ($25,000,000).

For calendar year 2020, the <-- amount determined under this clause may not exceed ten TWENTY <-- million dollars ($10,000,000)($10,000,000). ($20,000,000).

FOR* CALENDAR* YEAR* <--(g) 2021,It THEis AMOUNTthe DETERMINEDintention UNDERof THISthe CLAUSEGeneral MAYAssembly NOTthat EXCEEDthe TEN20170HB1915PN2706 20170HB1915PN2735 - 2 - MILLIONdepartment DOLLARSwill ($10,000,000).end its reliance on transfers to the Service and Infrastructure Improvement Fund.

*Funding *allocated *under (g)subsection It(e) is intended to support the intentionoperations of the Generalunemployment Assemblycompensation thatsystem during the departmentimplementation willand endinitial itsdeployment relianceof ontechnological transfersupgrades to the Servicedelivery andsystem Infrastructurefor Improvementunemployment Fund.compensation payments.

FundingDuring allocatedcalendar underyears subsection2018 (e)through is2020, intended to support the operationsfollowing ofshall theapply unemploymentto compensationfunding systemtransferred ANDto MAINTAIN ADEQUATE SERVICE <-- LEVELS FOR CLAIMANTS AND EMPLOYERS during the implementationService and initialInfrastructure deploymentImprovement ofFund technologicaland upgradesrelated tomatters regarding the deliveryfund: system for unemployment compensation payments.

During(1) calendarThe yearsdepartment 2018shall throughexpend 2020funds 2021,for the followingpurposes shallauthorized applyunder section 301.9(c) to <--maintain fundingand transferredmodernize tothe operations of the Serviceunemployment andcompensation Infrastructuresystem Improvementduring Fundthe implementation and relatedinitial mattersdeployment regardingof technological upgrades to the fund:delivery system for unemployment compensation payments.

(1) The department shall expend funds for the purposes authorized under section 301.9(c) 301.9(C)(1), (3) AND (4) to <-- maintain and modernize the operations of the unemployment compensation system during the implementation and initial deployment of technological upgrades to the delivery system for unemployment compensation payments.

20170HB1915PN2735 - 3 - (ii) An update on operations of the unemployment compensation system, including all of the following:

20170HB1915PN2706 - 3 - (C) Staffing and service levels,levels. INCLUDING INFORMATION ON <-- THE TIMELINESS OF SERVICE TO CLAIMANTS AND EMPLOYERS.

AND THE COLLECTION OF ANY <-- OUTSTANDING AND DELINQUENT RECEIVABLES, INCLUDING INTEREST, FOR EMPLOYER CONTRIBUTORY AND REIMBURSABLE ACCOUNTS.

(VI)(h) ANIn UPDATEaddition ONto THEthe AMOUNTamounts OFallowed FUNDSunder AVAILABLEsubsection TO(e), THEan <--amount DEPARTMENTdetermined FORby ADMINISTRATIVEthe COSTSsecretary FORwith THEthe UNEMPLOYMENTapproval COMPENSATIONof SYSTEM,the INCLUDINGGovernor THEshall FOLLOWING:be deposited into the Service and Infrastructure Improvement Fund for costs related to the procurement and implementation of technological upgrades to the delivery system for unemployment compensation benefits.

(A) THE TOTAL AMOUNT OF FUNDS AVAILABLE DURING EACH OF THE FIVE PRIOR CALENDAR YEARS.

(B) AN ESTIMATE OF THE TOTAL AMOUNT OF FUNDS THAT WILL BE AVAILABLE FOR THE CURRENT CALENDAR YEAR AND THE TWO SUBSEQUENT CALENDAR YEARS.

(C) FOR THE INFORMATION PROVIDED UNDER PARAGRAPHS (A) AND (B), A LIST OF EACH SOURCE OF AVAILABLE FUNDS AND THE AMOUNT 20170HB1915PN2735 - 4 - FROM EACH SOURCE.

(h) In addition to the amounts allowed under subsection (e), an amount determined by the secretary with the approval of the Governor shall be deposited into the Service and Infrastructure Improvement Fund for costs related to the procurement and implementation of technological upgrades to the delivery system for unemployment compensation benefits, CONSISTENT WITH COSTS <-- REPORTED TO THE GENERAL ASSEMBLY UNDER SECTION 301.9(I)(3).

(2) Beginning January 1, 2018, the department may annually <--20170HB1915PN2706 - 4 - deposit into the Service and Infrastructure Improvement Fund an amount authorized by this subsection for actual costs incurred during the prior calendar yearyear. CALENDAR YEAR 2017.

EACH(3) QUARTERPrior <--to THEREAFTER,each THEannual DEPARTMENTdeposit MAYof DEPOSITfunds ANunder AMOUNTthis EQUALsubsection TOthe ACTUALsecretary COSTSshall INCURREDcertify INto THEthe PRIORGovernor QUARTER,that: SUBJECT TO THE ANNUAL LIMITS IN CLAUSE (1).

(3)(i) Priorthe toprogress eachof annualthe depositimplementation ofand fundsdeployment underof thistechnological <--upgrades subsectionto the secretarydelivery shallsystem certifyfor tounemployment compensation benefits is consistent with the Governorprogress that:benchmarks provided in each relevant contract;

(i) the progress of the implementation and deployment of technological upgrades to the delivery system for unemployment 20170HB1915PN2735 - 5 - compensation benefits is consistent with the progress benchmarks provided in each relevant contract;

(5) The department shall implement and deploy the technological upgrades to the delivery system for unemployment compensation benefits in a manner which will result in significant cost savings and end the department's reliance on transfers to the Service and Infrastructure Improvement Fund, WHILE MAINTAINING AN ADEQUATE LEVEL OF SERVICE FOR CLAIMANTS AND <-- EMPLOYERS, as follows:

(i) The technological upgrades shall encourage and facilitate the filing of unemployment compensation claims ANDvia <--20170HB1915PN2706 INFORMATION- REQUIRED5 TO- BE PROVIDED BY EMPLOYERS via the department's publicly accessible Internet website and other electronic means,means. WHILE MAINTAINING AN ADEQUATE LEVEL OF ACCESS <-- TO OTHER FORMS OF FILING FOR CLAIMANTS AND EMPLOYERS.

(ii) The department shall, to the extent possible, utilize the upgrades to automate the processes regarding claim review 20170HB1915PN2735 - 6 - and determination.

(iii) The implementation and deployment of the upgrades shall prioritize the generation of efficiencies throughout the unemployment compensation system,system. WHILE MAINTAINING AN ADEQUATE <-- LEVEL OF SERVICE FOR CLAIMANTS AND EMPLOYERS.

(C) A representative of organized labor, appointed by the 20170HB1915PN2706 - 6 - minority chair of the Labor and Industry Committee of the Senate.

(D) A representative of a group representing employers, 20170HB1915PN2735 - 7 - appointed by the chair of the Labor and Industry Committee of the House of Representatives.

(B) The advisory committee may request information related 20170HB1915PN2706 - 7 - to the technological upgrades at any time.

The department shall provide information requested unless THE SPECIFIC INFORMATION IS <-- DETERMINED BY THE DEPARTMENT TO BE OF A PROPRIETARY INTEREST OR 20170HB1915PN2735 - 8 - THE RELEASE OF THE INFORMATION IS prohibited by law.

THE DEPARTMENT SHALL BE PROVIDED WITH A DRAFT COPY OF <-- THE REPORT AT LEAST THIRTY DAYS PRIOR TO SUBMISSION UNDER THIS CLAUSE, AND SHALL BE PERMITTED TO INCLUDE ITS RESPONSE TO THE CONTENTS OF THE REPORT.

IN NO EVENT SHALL THE DEPARTMENT BE ALLOWED TO DELAY THE SUBMISSION OF THE REPORT BY THE ADVISORY COMMITTEE.

Service and Infrastructure Improvement Fund.--* * * (c) Moneys in the Service and Infrastructure Improvement 20170HB1915PN2735 - 9 - Fund are appropriated on a continuing basis, upon approval of the Governor, to the department to be prioritized for the following purposes:

(1) To improve the quality, efficiency and timeliness of 20170HB1915PN2706 - 8 - services provided by the service center system to individuals claiming compensation under this act, including claim filing, claim administration, adjudication services and staffing and training of system employes.