Mustio Votes to Bar Unemployment Benefits for Prison Inmates, Increasing Penalties for Willful Fraud

This week, the PA House took a major step forward to protect Pennsylvania taxpayers by unanimously passing sweeping Unemployment Compensation reform legislation that would increase penalties on individuals who commit willful fraud to obtain unemployment compensation benefits, including cases of fraud perpetuated by incarcerated individuals.
 
If enacted, House Bill 403 would require the Department of Labor and Industry to cross-check databases to make sure prison inmates are not collecting unemployment compensation. This legislation would also impose an additional 52-week penalty for claimants who illegally apply for benefits while in prison. This penalty would apply to these same individuals in the future should they become eligible and attempt to apply for unemployment benefits again.

In addition to barring UC fraud by prisoners, House Bill 403 also addresses other types of fraud. It would increase the monetary penalty from its current range of $100 to $1,000 to $500 to $1,500 for claimants who knowingly make false statements to obtain unemployment benefits.

It would also increase the minimum number of penalty weeks from two to 10 and remove the current four-year statute of limitations. The bill also would allow for penalties to be collected through liens, civil action or any other means available by law for up to 12 years after the end of the benefit year.

House Bill 403 now heads to the Senate for consideration.

Measure to Terminate Pay-to-Play State Contract Favoritism Unanimously Advances to Senate for Second Time

For the second time in less than three years, legislation to end the practice of pay-to-play politics in the state contracting procurement process was unanimously adopted by the Pennsylvania House on April 9. 

House Bill 201 would strictly prohibit any state employee from evaluating any state contract proposal submitted by a former employer less than two years following the date of the state employee’s separation with the employer. The bill aims to limit any undue influence a former employer could have on a state employee who is in the position of making contract decisions.

Frequent use of settlement agreements instead of contracts; a no-bid legal contingency fee contract with a Texas law firm; legal service contracts, revisions and extensions with Ballard Spahr and Deloitte LLP; and the extension of a Unisys contract are just some of the highly questionable procurement activities by the Rendell administration that triggered the reintroduction of this reform legislation.

House Bill 201 now advances to the Senate for consideration.

Expanding Educational Choice

On April 4, I had the privilege of participating in the presentation of $60,000 in educational scholarships to the Families of Allegheny County. Thanks again to Bridge Educational Foundation and their donor U.S. Steel for once again providing scholarships to students in need through the state’s Educational Improvement Tax Credit. As a long time supporter of the EITC in the Pennsylvania House, I will continue to be an advocate for the expansion of this vital program. 

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