SENATE AMENDED
        PRIOR PRINTER'S NOS. 1171, 2855               PRINTER'S NO. 3717

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1020 Session of 1975


        INTRODUCED BY MRS. KELLY, MESSRS. SALVATORE, BARBER, MRS. TOLL,
           MESSRS. OLIVER, HILL, M. E. MILLER JR., ROSS, VANN,
           GIAMMARCO, JOHNSON, REED, RUGGIERO, MYERS, HAMILTON,
           McLANE, WANSACZ, USTYNOSKI, CESSAR, MRS. FAWCETT,
           MESSRS. McCLATCHY, TADDONIO, CIMINI, GRIECO, MISCEVICH,
           BERLIN, MRS. CRAWFORD, MESSRS. COHEN, WAGNER AND MRKONIC,
           APRIL 15, 1975

        SENATOR COPPERSMITH, PUBLIC HEALTH AND WELFARE, IN SENATE,
           AS AMENDED, SEPTEMBER 21, 1976

                                     AN ACT

     1  Providing for sheltered workshops for physically and mentally     <--
     2     handicapped persons; imposing additional duties on the Bureau
     3     of Vocational Rehabilitation in the Department of Labor and
     4     Industry and prescribing its powers and duties.
     5  PROVIDING SUBSIDIES FOR CERTAIN WORK-RELATED EXPENSES FOR         <--
     6     HANDICAPPED PERSONS SERVED IN VOCATIONAL HABILITATION AND
     7     REHABILITATION FACILITIES; IMPOSING ADDITIONAL DUTIES ON THE
     8     DEPARTMENT OF PUBLIC WELFARE AND MAKING AN APPROPRIATION.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  Short Title.--This act shall be known and may be   <--
    12  cited as the "Sheltered Employment Act."
    13     Section 2.  Declaration of Policy.--It is the public policy
    14  of the Commonwealth of Pennsylvania to assist and encourage
    15  handicapped individuals to attain their maximum usefulness and
    16  self-sufficiency, and to make adequate provision for services
    17  toward these ends. The Commonwealth believes that sheltered


     1  employment for handicapped individuals should at all times
     2  provide handicapped individuals with a sense of dignity and
     3  self-worth, and to this end it shall be public policy to reduce
     4  the work-related expenses of sheltered workshop employees for
     5  the purpose of easing their financial burden. This policy should
     6  be carried out by a Bureau of Vocational Rehabilitation which
     7  shall adopt and enforce workshop standards necessary for the
     8  welfare of the handicapped, provide certain work-related
     9  services for handicapped individuals employed in sheltered
    10  workshops which are approved by the bureau and encourage and aid
    11  in the expansion and development of adequate sheltered
    12  employment.
    13     Section 3.  Definitions.--The following words and phrases
    14  when used in this act shall have, unless the context clearly
    15  indicates otherwise, the meanings given to them in this section:
    16     "Bureau."  The Bureau of Vocational Rehabilitation in the
    17  Department of Labor and Industry.
    18     "Certified."  Certified by the Wage and Hour Division, United
    19  States Department of Labor in accordance with the Federal Fair
    20  Labor Standards Act of 1938 (52 Stat. 1068) as amended.
    21     "Director."  The director of the Bureau of Vocational
    22  Rehabilitation.
    23     "Handicapped individual."  An individual who is physically or
    24  mentally handicapped.
    25     "Sheltered employment."  Employment in a workshop setting for
    26  handicapped individuals who are unable due to a physical or
    27  mental limitation to engage in work in the competitive labor
    28  market or who cannot be readily absorbed by that market.
    29     "Sheltered workshop."  A rehabilitation facility or that part
    30  of a rehabilitation facility engaged in a production or service
    19750H1020B3717                  - 2 -

     1  operation which is operated for the purpose of providing gainful
     2  employment and other professional services for those handicapped
     3  individuals who cannot be readily absorbed in the competitive
     4  labor market. Wherever sheltered workshop is referred to in this
     5  act, it shall include work activities centers.
     6     "Sheltered workshop employee."  A physically or mentally
     7  handicapped individual employed by a sheltered workshop but does
     8  not include handicapped individuals employed as facility staff.
     9     "Work activities center."  A sheltered workshop or a
    10  physically separated department of a sheltered workshop planned
    11  and designed exclusively to provide therapeutic activities for
    12  handicapped workers whose physical or mental impairment is so
    13  severe as to make their productive capacity inconsequential.
    14  Therapeutic activities include any purposeful activity so long
    15  as work or production is not the main purpose.
    16     Section 4.  Bureau of Vocational Rehabilitation Duties.--The
    17  bureau shall perform the following functions:
    18     (1)  Adopt and enforce standards for sheltered workshops
    19  utilized by State agencies to insure that such facilities are
    20  organized and administered so as to effectively achieve stated
    21  goals and to provide quality services to handicapped persons.
    22     (2)  Adopt and enforce rules and regulations to carry out the
    23  provisions of this act.
    24     (3)  Exercise supervision over all sheltered workshops to
    25  insure that wages paid to handicapped workers in sheltered
    26  employment, which are lower than the applicable minimum wage,
    27  are commensurate with wages paid non-handicapped workers in the
    28  vicinity for essentially the same type, quality, and quantity of
    29  work in accordance with requirements established under section
    30  14(d) of the Federal Fair Labor Standards Act of 1938 (52 Stat.
    19750H1020B3717                  - 3 -

     1  1068) and other provisions of Federal law, including amendments
     2  and regulations adopted pursuant thereto.
     3     (4)  In coordination with Federal and other State agencies,
     4  insure proper certification of all workshops in accordance with
     5  Federal Fair Labor Standards Act, as amended.
     6     (5)  In compliance with the Rehabilitation Act of 1973
     7  (P.L.93-112, 87 Stat. 355) to determine and respond to the need
     8  for additional vocational rehabilitation services and facilities
     9  in this Commonwealth. The bureau shall submit its findings and
    10  recommendations to the General Assembly within 24 months after
    11  the effective date of this act. This report shall include
    12  information relative to the degree of utilization of facilities,
    13  the quality of services being provided, the need for additional
    14  services and the means and methods by which vocational
    15  rehabilitation services can be expanded.
    16     (6)  Coordinate activities with Federal and other State
    17  agencies involved in sheltered workshop programs.
    18     (7)  Administer, in coordination with established and
    19  properly certified private nonprofit sheltered workshops, a
    20  program to provide funds for transportation from a sheltered
    21  workshop employee's residence to the place of employment and
    22  from the place of employment to sheltered workshop employee's
    23  residence. This program shall not apply to State agency-
    24  sponsored clients in an Evaluation and/or Training Program nor
    25  shall it include persons employed in workshops in State
    26  institutions. The bureau shall contract with individual
    27  workshops for the furnishing of such transportation, and may,
    28  subject to an appropriation, expend for said purpose such sum or
    29  sums, not to exceed $275 per year for each handicapped employee
    30  of which no more than 10% shall be expended for administrative
    19750H1020B3717                  - 4 -

     1  expenses incurred by the workshop in providing this service.
     2  Methods of expending such funds shall be subject to approval by
     3  the bureau.
     4     (8)  Conduct periodic audits of expenditures of
     5  transportation funds by sheltered workshops.
     6     Section 5.  Repealer.--(a) Section 901 of the act of June 13,
     7  1967 (P.L.31, No.21), known as the "Public Welfare Code," is
     8  repealed in so far as it is inconsistent with this act.
     9     (b)  All acts or parts of acts inconsistent with the
    10  provisions of this act are repealed to the extent of the
    11  inconsistency.
    12     Section 6.  Effective Date.--This act shall take effect July
    13  1, 1976.
    14     SECTION 1.  SHORT TITLE.--THIS ACT SHALL BE KNOWN AND MAY BE   <--
    15  CITED AS THE "SHELTERED EMPLOYMENT ACT."
    16     SECTION 2.  DECLARATION OF POLICY.--IT IS THE PUBLIC POLICY
    17  OF THE COMMONWEALTH OF PENNSYLVANIA TO ASSIST AND ENCOURAGE
    18  HANDICAPPED PERSONS TO ATTAIN THEIR MAXIMUM USEFULNESS AND SELF
    19  SUFFICIENCY, AND TO MAKE ADEQUATE PROVISION FOR SERVICES TOWARD
    20  THESE ENDS. THE COMMONWEALTH BELIEVES THAT VOCATIONAL
    21  HABILITATION SERVICES FOR HANDICAPPED PERSONS SHOULD AT ALL
    22  TIMES PROVIDE HANDICAPPED PERSONS WITH A SENSE OF DIGNITY AND
    23  SELF-WORTH. TO THIS END IT SHALL BE PUBLIC POLICY TO PROVIDE
    24  SUBSIDIES FOR CERTAIN WORK-RELATED EXPENSES FOR HANDICAPPED
    25  PERSONS SERVED IN VOCATIONAL HABILITATION AND REHABILITATION
    26  FACILITIES. IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS
    27  POLICY SHALL BE CARRIED OUT BY THE DEPARTMENT OF PUBLIC WELFARE
    28  IN COOPERATION WITH THE BUREAU OF VOCATIONAL REHABILITATION OF
    29  THE DEPARTMENT OF LABOR AND INDUSTRY AND OTHER OFFICES AND
    30  AGENCIES PROVIDING SIMILAR SERVICES TO HANDICAPPED PERSONS.
    19750H1020B3717                  - 5 -

     1     SECTION 3.  DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES
     2  WHEN USED IN THIS ACT SHALL HAVE, UNLESS THE CONTEXT CLEARLY
     3  INDICATES OTHERWISE, THE MEANINGS GIVEN TO THEM IN THIS SECTION:
     4     "DEPARTMENT."  THE DEPARTMENT OF PUBLIC WELFARE.
     5     "HANDICAPPED PERSON."  A PERSON WHO HAS A PHYSICAL OR MENTAL
     6  DISABILITY WHICH CONSTITUTES OR RESULTS IN A SUBSTANTIAL
     7  HANDICAP TO EMPLOYMENT. FOR PURPOSES OF THIS ACT THIS TERM DOES
     8  NOT APPLY TO HANDICAPPED PERSONS EMPLOYED AS REGULAR STAFF IN A
     9  VOCATIONAL REHABILITATION FACILITY.
    10     "SECRETARY."  THE SECRETARY OF PUBLIC WELFARE.
    11     "VOCATIONAL REHABILITATION FACILITY."  A NOT-FOR-PROFIT
    12  FACILITY, OR A PART OF A NOT-FOR-PROFIT FACILITY, THAT PROVIDES
    13  THE FOLLOWING SERVICES IN THE HABILITATION AND REHABILITATION OF
    14  HANDICAPPED PERSONS: SHELTERED EMPLOYMENT/WORK ACTIVITY CENTER
    15  ALONE OR IN COMBINATION WITH ONE OR MORE OF THE FOLLOWING--
    16  EVALUATION, PERSONAL AND WORK ADJUSTMENT TRAINING, OCCUPATIONAL
    17  TRAINING AND/OR PLACEMENT SERVICES. WHERE THE TERM IS USED IN
    18  THIS ACT IT REFERS TO FACILITIES CERTIFIED BY THE UNITED STATES
    19  DEPARTMENT OF LABOR IN THE REGULAR WORK PROGRAM AND/OR WORK
    20  ACTIVITY CENTER CATEGORIES.
    21     SECTION 4.  DEPARTMENT OF PUBLIC WELFARE.--THE DEPARTMENT
    22  SHALL PERFORM THE FOLLOWING FUNCTIONS:
    23     (A)  ESTABLISH A PROGRAM TO UTILIZE FUNDS MADE AVAILABLE FOR
    24  TRANSPORTATION UNDER THIS ACT TO TRANSPORT HANDICAPPED PERSONS
    25  OF SUCH FACILITIES BETWEEN THEIR PLACES OF RESIDENCE AND THE
    26  FACILITIES.
    27     (1)  THROUGH THE ADMINISTRATIVE MECHANISMS OF THE DEPARTMENT,
    28  CONTRACT WITH INDIVIDUAL VOCATIONAL REHABILITATION FACILITIES
    29  FOR THE FURNISHING OF SUCH TRANSPORTATION, AND, SUBJECT TO AN
    30  APPROPRIATION, EXPEND FOR SAID PURPOSE SUCH SUM OR SUMS, NOT TO
    19750H1020B3717                  - 6 -

     1  EXCEED $275 PER YEAR FOR EACH HANDICAPPED PERSON, OF WHICH NO
     2  MORE THAN 10% SHALL BE EXPENDED FOR ADMINISTRATIVE EXPENSES
     3  INCURRED BY THE VOCATIONAL REHABILITATION FACILITY IN PROVIDING
     4  THIS SERVICE.
     5     (2)  IN THE IMPLEMENTATION OF THIS PROGRAM, ENSURE THAT:
     6     (I)  METHODS OF EXPENDING SUCH FUNDS SHALL BE SUBJECT TO
     7  APPROVAL BY THE DEPARTMENT AND IN NO CASE SHALL FUNDS AUTHORIZED
     8  UNDER THIS ACT BE USED FOR CAPITAL EXPENDITURES. THE DEPARTMENT
     9  AND THE VOCATIONAL REHABILITATION FACILITIES ARE EXPECTED AND
    10  ENCOURAGED TO UTILIZED TRANSIT AUTHORITIES, COMMON CARRIERS AND
    11  NONPROFIT PUBLIC AND PRIVATE AGENCIES IN THE PROVISION OF THIS
    12  SERVICE.
    13     (II)  THIS SUBSIDY SHALL BE USED ONLY FOR THOSE HANDICAPPED
    14  PERSONS NOT RECEIVING AN ALLOWANCE OR SUBSIDY EQUAL TO THEIR
    15  ACTUAL TRANSPORTATION EXPENSES; THE SUBSIDY SHALL NOT APPLY TO
    16  PERSONS ON PATIENT/RESIDENT STATUS IN VOCATIONAL REHABILITATION
    17  FACILITIES IN STATE INSTITUTIONS.
    18     (III)  VOCATIONAL REHABILITATION FACILITIES CURRENTLY
    19  PROVIDING TRANSPORTATION SERVICES SHALL UTILIZE THE SAVINGS THAT
    20  THEY WOULD HAVE OTHERWISE BEEN REQUIRED TO EXPEND FOR THE
    21  TRANSPORTATION OF HANDICAPPED PERSONS TO INCREASE THE LEVEL OF
    22  COMPENSATION PAID TO HANDICAPPED PERSONS.
    23     (B)  CONDUCT PERIODIC AUDITS OF EXPENDITURES OF
    24  TRANSPORTATION FUNDS BY VOCATIONAL REHABILITATION FACILITIES.
    25     (C)  WORK IN CONSULTATION AND COOPERATION WITH THE BUREAU OF
    26  VOCATIONAL REHABILITATION OF THE DEPARTMENT OF LABOR AND
    27  INDUSTRY AND OTHER AGENCIES PROVIDING SIMILAR SERVICES TO
    28  HANDICAPPED PERSONS, TO INCLUDE THE PREPARATION OF THE REPORT
    29  AND RECOMMENDATIONS REQUIRED BY SECTION 4(D).
    30     (D)  WITHIN 24 MONTHS AFTER THE EFFECTIVE DATE OF THIS ACT
    19750H1020B3717                  - 7 -

     1  THE DEPARTMENT WILL SUBMIT A REPORT TO THE GENERAL ASSEMBLY
     2  WHICH AT A MINIMUM:
     3     (1)  DESCRIBES THE IMPACT OF THE TRANSPORTATION SUBSIDY
     4  PROGRAM ON HANDICAPPED PERSONS AND VOCATIONAL REHABILITATION
     5  FACILITIES.
     6     (2)  DESCRIBES THE ADEQUACY IN TERMS OF QUANTITY AND QUALITY
     7  OF PROGRAM SERVICES BEING PROVIDED IN RELATION TO THIS ACT.
     8     (3)  MAKES RECOMMENDATIONS FOR THE IMPROVEMENT AND EXPANSION
     9  OF VOCATIONAL REHABILITATION FACILITY SERVICES TO HANDICAPPED
    10  PERSONS.
    11     (E)  THROUGH THE SECRETARY ADOPT AND ENFORCE RULES AND
    12  REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS ACT.
    13     SECTION 5.  REPEALER.--ALL ACTS OR PARTS OF ACTS INCONSISTENT
    14  WITH THE PROVISIONS OF THIS ACT ARE REPEALED TO THE EXTENT OF
    15  THE INCONSISTENCIES.
    16     SECTION 6.  APPROPRIATION.--FOR PURPOSES OF THE
    17  TRANSPORTATION SUBSIDY PROGRAM AUTHORIZED UNDER SECTION 4 THE
    18  SUM OF $1,000,000 IS APPROPRIATED TO THE DEPARTMENT OF PUBLIC
    19  WELFARE TO CARRY OUT THE PROVISIONS OF THIS ACT. SUCH SUMS AS
    20  MAY BE NECESSARY TO CONTINUE THE TRANSPORTATION SUBSIDY PROGRAM
    21  AND FOR IMPLEMENTATION OF OTHER PROVISIONS OF THIS ACT ARE
    22  AUTHORIZED FOR FUTURE YEARS.
    23     SECTION 7.  EFFECTIVE DATE.--IN ORDER TO ESTABLISH BASELINE
    24  DATA REQUIREMENTS TO EVALUATE THE IMPACT OF THE TRANSPORTATION
    25  SUBSIDY AUTHORIZED IN THIS ACT, THE EFFECTIVE DATE OF THIS ACT
    26  SHALL BE JANUARY 1, 1978.



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