PRINTER'S NO. 1552
No. 1303 Session of 1985
INTRODUCED BY RICHARDSON, COHEN AND CARN, JUNE 3, 1985
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, JUNE 3, 1985
AN ACT 1 Authorizing the Department of Public Welfare to administer a 2 clothing stamp program; providing for the issuance and use of 3 clothing coupons, for participating retail and wholesale 4 clothing concerns, for the redemption of coupons, for 5 administrative and judicial review and for penalties; and 6 making an appropriation. 7 TABLE OF CONTENTS 8 Section 1. Short title. 9 Section 2. Declaration of policy. 10 Section 3. Definitions. 11 Section 4. Establishment of Clothing Stamp Program. 12 Section 5. Eligible households. 13 Section 6. Issuance and use of coupons. 14 Section 7. Value of the coupon allotment and charges to be 15 made. 16 Section 8. Approval of retail clothing stores and wholesale 17 clothing concerns. 18 Section 9. Redemption of coupons. 19 Section 10. Administration.
1 Section 11. Disqualification of retail clothing stores and 2 wholesale clothing concerns. 3 Section 12. Determination and disposition of claims. 4 Section 13. Administrative and judicial review. 5 Section 14. Violations and enforcement. 6 Section 15. Appropriation. 7 Section 16. Effective date. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Short title. 11 This act shall be known and may be cited as the Clothing 12 Stamp Act. 13 Section 2. Declaration of policy. 14 It is hereby declared to be the policy of the General 15 Assembly, in order to promote the general welfare, that the 16 State's abundance of clothing should be utilized cooperatively 17 by the State and local governmental units and other agencies to 18 safeguard the health and well-being of the Commonwealth's 19 population and to raise the level of clothing purchasing power 20 among low-income households. The General Assembly hereby finds 21 that the limited clothing purchasing power of low-income 22 households contributes to low self-esteem which has been 23 directly correlated with the level of performance in school, 24 occupational and related activities of the low-income 25 individual. The General Assembly further finds that increased 26 utilization of clothing will promote the distribution in a 27 beneficial manner of our clothing abundances and will strengthen 28 the sagging apparel and textile industries. In order to promote 29 adequate distribution of the basic essentials necessary to the 30 well-being of citizens of this Commonwealth, a Clothing Stamp 19850H1303B1552 - 2 -
1 Program is herein authorized which will permit low-income 2 households to purchase a respectable and balanced wardrobe 3 through normal channels of trade. 4 Section 3. Definitions. 5 The following words and phrases when used in this act shall 6 have the meanings given to them in this section unless the 7 context clearly indicates otherwise: 8 "Authorization to purchase card." A document issued by the 9 department to an eligible household which shows the face value 10 of the coupon allotment that the household is entitled to be 11 issued to on presentment of the document and the amount to be 12 paid by the household for the allotment. 13 "Bank." Any member or nonmember bank of the Federal Reserve 14 System. 15 "Clothing." Any apparel or footwear which is produced by any 16 person who is a citizen of the United States or is an alien 17 lawfully admitted for permanent residence or otherwise 18 permanently residing in the United States under color of law or 19 is organized under the laws of the United States or any state. 20 The term shall include any tool, fabric, machine or equipment 21 used to make apparel or footwear for the personal use of the 22 eligible household. The term shall not include cosmetics, 23 jewelry or timepieces. 24 "Clothing Stamp Program." The program promulgated pursuant 25 to this act. 26 "Coupon." A coupon, stamp or type of certificate issued 27 pursuant to this act. 28 "Coupon allotment." The total value of coupons to be issued 29 to a household during each month or other time period. 30 "Coupon vendor." Any person, partnership, corporation, 19850H1303B1552 - 3 -
1 organization, political subdivision or other entity with which a 2 State agency has contracted for, or to which it has delegated 3 administrative responsibility in connection with, the issuance 4 of coupons to households. 5 "Department." The Department of Public Welfare of the 6 Commonwealth. 7 "Elderly person." A person 60 years of age or over. 8 "Household." A single individual who is living alone and who 9 is above the age of 18, or a group of individuals (including 10 legally adopted children and legally assigned foster children) 11 who are living as one economic unit, for whom clothing is 12 purchased for personal use. 13 "Retail clothing store." An establishment, including a 14 recognized department thereof or a house-to-house trade route 15 which sells clothing to households. 16 "Secretary." The Secretary of Public Welfare of the 17 Commonwealth. 18 "Wholesale clothing concern." An establishment which sells 19 clothing to retail clothing stores for resale to households. 20 Section 4. Establishment of Clothing Stamp Program. 21 (a) Authority.--The department is authorized to formulate 22 and administer a Clothing Stamp Program under which eligible 23 households within the Commonwealth shall be provided with an 24 opportunity to obtain an adequate supply of clothing through the 25 issuance to households of a coupon allotment or flat grant which 26 shall have a greater monetary value than the charge to be paid 27 for the allotment by households. The coupons so received by such 28 households shall be used only to purchase clothing from retail 29 clothing stores which have been approved for participation in 30 the Clothing Stamp Program. Coupons issued and used as provided 19850H1303B1552 - 4 -
1 in this act shall be redeemable at face value by the department 2 through the facilities of the Treasury Department. 3 (b) Rules and regulations.--The department shall, in the 4 manner provided by law, promulgate the necessary rules and 5 regulations for the effective and efficient administration of 6 the Clothing Stamp Program. References to this act contained 7 herein shall be construed to include the rules and regulations 8 promulgated hereunder. 9 Section 5. Eligible households. 10 (a) Financial resources.--Participation in the Clothing 11 Stamp Program shall be limited to those households whose income 12 and other financial resources are determined to be substantial 13 limiting factors in permitting them to purchase an adequate 14 supply of clothing. 15 (b) Eligibility standards.--The department shall establish 16 uniform standards of eligibility for participation by households 17 in the Clothing Stamp Program. These standards shall, at a 18 minimum, prescribe the amounts of household income and other 19 financial resources, including both liquid and nonliquid assets, 20 to be used as criteria of eligibility. The standards shall take 21 into account payments in kind received from an employer by 22 members of a household, if these payments are in lieu of or 23 supplemental to household income. Payments in kind shall be 24 limited only to housing provided by an employer to an employee 25 and shall be the actual value of that housing, but in no event 26 shall the value be considered to be in excess of the sum of $25 27 per month. 28 (c) Effect of failure to register for or to accept 29 employment.--Notwithstanding any other provision of law, the 30 department shall include in the uniform standards of eligibility 19850H1303B1552 - 5 -
1 to be prescribed under subsection (b) a provision that a 2 household shall not be eligible for assistance under this act if 3 it includes an able-bodied adult between the ages of 18 and 65 4 (except mothers or other members of the household who have the 5 responsibility of care of dependent children or of incapacitated 6 adults, bona fide students in any accredited school or training 7 program, or persons employed and working at least 30 hours per 8 week) who either: 9 (1) fails to register for employment at a State 10 employment office or at such other appropriate State or 11 Federal office designated by the department; or 12 (2) has refused to accept employment or public work at 13 not less than: 14 (i) the applicable State minimum wage; 15 (ii) the applicable Federal minimum wage; 16 (iii) the applicable wage established by a State or 17 Federal law or regulation; or 18 (iv) one dollar thirty cents per hour if there is no 19 applicable wage as described in subparagraph (i), (ii) or 20 (iii). Refusal to work at a plant or site subject to a 21 strike or a lockout for the duration of the strike or 22 lockout shall not be deemed to be a refusal to accept 23 employment. 24 Section 6. Issuance and use of coupons. 25 (a) Denomination and issuance.--Coupons shall be printed in 26 those denominations as may be determined to be necessary and 27 shall be issued only to households which have been duly 28 certified as eligible to participate in the Clothing Stamp 29 Program. 30 (b) Coupon inventories.-- 19850H1303B1552 - 6 -
1 (1) The department shall by regulation develop an 2 appropriate procedure for determining and monitoring the 3 level of coupon inventories in the hands of coupon vendors 4 for the purpose of insuring that inventories are at proper 5 levels (taking into consideration the historical and 6 projected volume of coupon distribution by vendors). These 7 regulations shall contain procedures to insure that coupon 8 inventories in the hands of coupon vendors are not in excess 9 of the reasonable needs of vendors taking into consideration 10 the ease and feasibility of resupplying coupon inventories. 11 The department may require periodic reports from coupon 12 vendors respecting the level of inventories. 13 (2) Any coupon vendor, or any officer, employee or agent 14 thereof, convicted of failing to provide a report required 15 under paragraph (1) shall be fined not more than $3,000, or 16 imprisoned not more than one year, or both. 17 (3) Any coupon vendor, or any officer, employee or agent 18 thereof, who knowingly provides false information in any 19 report required under paragraph (1) shall be fined not more 20 than $10,000, or imprisoned not more than ten years, or both. 21 (c) Delivery and protection of coupons.-- 22 (1) The department shall by regulation prescribe 23 appropriate procedures for the delivery of coupons to coupon 24 vendors and for the custody, care, control and storage of 25 coupons in the hands of coupon vendors in order to secure 26 coupons against theft, embezzlement, misuse, loss or 27 destruction. 28 (2) Any coupon vendor, or any officer, employee or agent 29 thereof, convicted of violating any regulation issued under 30 paragraph (1) shall be fined not more than $3,000, or 19850H1303B1552 - 7 -
1 imprisoned not more than one year, or both. 2 (d) Use.--Coupons issued to eligible households shall be 3 used by them only to purchase clothing in retail clothing stores 4 which have been approved for participation in the Clothing Stamp 5 Program at prices prevailing in these stores. Nothing in this 6 act shall be construed as authorizing the department to specify 7 the prices at which clothing may be sold by wholesale clothing 8 concerns or retail clothing stores. 9 (e) Content of coupons.--Coupons shall be simple in design 10 and shall include only those words or illustrations which are 11 required to explain their purpose and define their denomination. 12 The name of any public official shall not appear on coupons. 13 Section 7. Value of the coupon allotment and charges to be 14 made. 15 (a) Face value.--The face value of the coupon allotment 16 shall be in that amount as the department determines to be the 17 cost of an adequate supply of clothing, adjusted semiannually by 18 the nearest dollar increment that is a multiple of two to 19 reflect changes in the prices of clothing published by the 20 Bureau of Labor Statistics in the United States Department of 21 Labor to be implemented commencing with the allotments of July 22 1, 1986, incorporating the changes in the prices of clothing 23 through August 31, 1985, but in no event shall these adjustments 24 be made for households of a given size unless the increase in 25 the face value of the coupon allotment for such households, as 26 calculated above, is a minimum of $2. 27 (b) Charges.--Notwithstanding any other provision of law, 28 households shall be charged for the coupon allotment issued to 29 them, and the amount of this charge shall be reasonable, but in 30 no event more than 30% of the household's income. Coupon 19850H1303B1552 - 8 -
1 allotments may be issued without charge to households with 2 income of less than $30 per month for a family of four under 3 standards of eligibility prescribed by the department. The 4 department shall provide a reasonable opportunity for any 5 eligible household to elect to be issued a coupon allotment 6 having a face value which is less than the face value of the 7 coupon allotment authorized to be issued to them under 8 subsection (a). The charge to be paid by eligible households 9 electing to exercise the option set forth in this subsection 10 shall be an amount which bears the same ratio to the amount 11 which would have been charged under this subsection as the face 12 value of the coupon allotment actually issued to them bears to 13 the face value of the coupon allotment that would have been 14 issued to them under subsection (a). 15 (c) Coupon value not income.--The value of the coupon 16 allotment provided to any eligible household which is in excess 17 of the amount charged that household for an allotment shall not 18 be considered to be income or resources for any purpose under 19 any Federal or State laws, including laws relating to taxation, 20 welfare and public assistance programs. 21 (d) Disposition of funds.-- 22 (1) Funds derived from the charges made for the coupon 23 allotment shall be promptly deposited in a manner prescribed 24 in the regulations issued pursuant to this act, in a separate 25 account maintained in the Treasury Department for that 26 purpose. Deposits shall be available, without limitation to 27 fiscal years, for the redemption of coupons. 28 (2) (i) The department shall by regulation prescribe 29 the manner in which funds derived from the distribution 30 of coupons shall be deposited by coupon vendors. The 19850H1303B1552 - 9 -
1 regulations shall require coupon vendors to promptly 2 deposit these funds in the manner prescribed by the 3 department. The regulations shall also require that these 4 deposits be made weekly and that upon the accumulation of 5 a balance on hand of $1,000 or more, the deposits be made 6 within two banking days following the accumulation of 7 that amount. 8 (ii) Any coupon vendor, or any officer, employee or 9 agent thereof, convicted of violating the regulations 10 issued under subparagraph (i) shall be fined not more 11 than $3,000, or imprisoned not more than one year, or 12 both. 13 (3) (i) Coupon vendors receiving funds derived from the 14 distribution of coupons shall be deemed to be receiving 15 these funds as fiduciaries of the Commonwealth and coupon 16 vendors shall immediately set aside all of these funds as 17 funds of the Commonwealth. Funds derived from the 18 distribution of coupons shall not be used, prior to their 19 deposit, for the benefit of any person, partnership, 20 corporation, association, organization or entity other 21 than the Commonwealth. 22 (ii) Any coupon vendor, or any officer, employee or 23 agent thereof, convicted of violating subparagraph (i) 24 shall be fined not more than $10,000, or a sum equal to 25 the amount of funds involved in the violation, whichever 26 is the greater, or imprisoned not more than ten years, or 27 both; except that if the amount of these funds are less 28 than $1,000, the vendor shall be fined not more than 29 $3,000, or imprisoned not more than one year, or both. 30 (4) (i) Upon the deposit of funds derived from the 19850H1303B1552 - 10 -
1 distribution of coupons, coupon vendors shall immediately 2 send a written notice to the department, accompanied by 3 an appropriate voucher, confirming the deposit. In 4 addition to such other information deemed by the 5 department to be appropriate, the regulations shall 6 require that the notice contain: 7 (A) the name and address of the coupon vendor; 8 (B) the total receipts of the coupon vendor 9 derived from the distribution of coupons during the 10 deposit period; 11 (C) the amount of the deposit; 12 (D) the name and address of the depository; and 13 (E) an oath or affirmation signed by the coupon 14 vendor, or in the case of a corporation or other 15 entity not a natural person, by an appropriate 16 official of the coupon vendor, certifying that the 17 information contained in the notice is true and 18 correct. 19 (ii) Any coupon vendor, or any officer, employee or 20 agent thereof, convicted of failing to provide the notice 21 required under subparagraph (i) shall be fined not more 22 than $3,000, or imprisoned not more than one year, or 23 both. 24 (iii) Any coupon vendor, or any officer, employee or 25 agent thereof, who knowingly provides false information 26 in any notice required under subparagraph (i) shall be 27 fined not more than $10,000, or imprisoned not more than 28 ten years, or both. 29 (5) (i) Each coupon vendor shall at intervals 30 prescribed by the department, but not less often than 19850H1303B1552 - 11 -
1 monthly, provide the department with a written report of 2 the vendor's operations during that period. In addition 3 to such other information deemed by the department to be 4 appropriate, the report shall contain: 5 (A) the name and address of the coupon vendor; 6 (B) the total receipts of the coupon vendor 7 derived from the distribution of coupon during the 8 report period; 9 (C) the total amount of deposits made by the 10 vendor of funds derived from the distribution of 11 coupons during the period; 12 (D) the name and address of each depository 13 receiving funds from the vendor; and 14 (E) an oath or affirmation signed by the coupon 15 vendor, or in the case of a corporation or other 16 entity not a natural person, by an appropriate 17 official of the coupon vendor, certifying that the 18 information contained in the report is true and 19 correct. 20 (ii) Any coupon vendor, or any officer, employee or 21 agent thereof, convicted of failing to provide any notice 22 required under subparagraph (i) shall be fined not more 23 than $3,000, or imprisoned not more than one year, or 24 both. 25 (iii) Any coupon vendor, or any officer, employee or 26 agent thereof, who knowingly provides false information 27 in any notice required under subparagraph (i) shall be 28 fined not more than $10,000, or imprisoned not more than 29 ten years, or both. 30 (iv) The department shall make periodic reports 19850H1303B1552 - 12 -
1 containing a consolidation of the respective coupon 2 vendor's notices at such intervals as the department in 3 its discretion deems appropriate. 4 Section 8. Approval of retail clothing stores and wholesale 5 clothing concerns. 6 (a) Qualifications of applicants.--Regulations issued 7 pursuant to this act shall provide for the submission of 8 applications for approval by retail clothing stores and 9 wholesale clothing concerns which desire to be authorized to 10 accept and redeem coupons under the Clothing Stamp Program and 11 for the approval of those applicants whose participation will 12 effectuate the purposes of the Clothing Stamp Program. In 13 determining the qualifications of applicants there shall be 14 considered, among other factors as may be appropriate, the 15 following: 16 (1) The nature and extent of the retail or wholesale 17 clothing business conducted by the applicant. 18 (2) The volume of coupon business which may reasonably 19 be expected to be conducted by the applicant retail clothing 20 store or wholesale clothing concern. 21 (3) The business integrity and reputation of the 22 applicant. 23 (4) Such other information as will permit a 24 determination to be made as to whether the applicant 25 qualifies for approval under this act. 26 (b) Certificate.--Approved applicants shall be issued a 27 nontransferable certificate of approval. 28 (c) Use of information.--The use or disclosure of 29 information obtained under this section shall be limited to 30 purposes directly connected with administration and enforcement 19850H1303B1552 - 13 -
1 of this act. 2 (d) Hearing.-- Any retail clothing store or wholesale 3 clothing concern which has failed upon application to receive 4 approval to participate in the Clothing Stamp Program may obtain 5 a hearing as provided in section 13. 6 Section 9. Redemption of coupons. 7 Regulations issued pursuant to this act shall provide for the 8 redemption of coupons accepted by retail clothing stores through 9 approved wholesale clothing concerns or through banks with the 10 cooperation of the Treasury Department. 11 Section 10. Administration. 12 (a) Use of clothing.--All practicable efforts shall be made 13 in the administration of the Clothing Stamp Program to assure 14 that participants use their increased clothing purchasing power 15 to obtain the clothing most necessary for an adequate supply of 16 clothing and particularly to encourage the continued use of 17 clothing which is in abundant or surplus supply. In addition to 18 those steps as may be taken administratively, the voluntary 19 cooperation of existing Federal, State and local and private 20 agencies which carry out informational and educational programs 21 for consumers shall be encouraged. 22 (b) Records.--The department shall assume responsibility for 23 the certification of applicant households and for the issuance 24 of coupons. There shall be kept those records as may be 25 necessary to ascertain whether the program is being conducted in 26 compliance with this act. These records shall be available for 27 inspection and audit at any reasonable time and shall be 28 preserved for that period of time, not in excess of three years, 29 as may be specified in the regulations. 30 (c) Change of household location.--Certification of a 19850H1303B1552 - 14 -
1 household as eligible in any political subdivision shall, in the 2 event of removal of the household to another political 3 subdivision in which the Clothing Stamp Program is operating, 4 remain valid for participation in the Clothing Stamp Program for 5 a period of 60 days from the date of such removal. In the 6 certification of applicant households for the Clothing Stamp 7 Program, there shall be no discrimination against any household 8 by reason of race, religious creed, national origin or political 9 affiliations. 10 (d) Decreasing amount of other aid prohibited.-- 11 Participating political subdivisions thereof shall not decrease 12 welfare grants or other similar aid extended to any person or 13 persons as a consequence of participation in benefits made 14 available under this act. 15 (e) Implementation of plan.--The plan of operation shall 16 include, but not be limited to, the following: 17 (1) The specific standards to be used in determining the 18 eligibility of applicant households. 19 (2) Safeguards which restrict the use or disclosure of 20 information obtained from applicant households to persons 21 directly connected with the administration or enforcement of 22 this act. 23 (3) The submission of reports and other information as 24 from time to time may be required. 25 (4) A publicity program, including the use of services 26 provided by other federally funded agencies and 27 organizations, to inform low-income households concerning the 28 availability and benefits of the Clothing Stamp Program and 29 to assure the participation of eligible households; 30 (5) The issuance of coupon allotments no less often than 19850H1303B1552 - 15 -
1 twice a month. 2 (6) The granting of a fair hearing and a prompt 3 determination thereafter to any household aggrieved by the 4 action of the department under any provision of its plan of 5 operation as it effects the participation of that household 6 in the Clothing Stamp Program. 7 In approving the participation of the political subdivisions 8 requested in its plan of operation, the department shall provide 9 for an equitable and orderly expansion in accordance with their 10 relative need and readiness to meet their requested effective 11 dates of participation. The department shall make the State plan 12 operable by July 1, 1986. 13 Section 11. Disqualification of retail clothing stores and 14 wholesale clothing concerns. 15 Any approved retail clothing store or wholesale clothing 16 concern may be disqualified from further participation in the 17 Clothing Stamp Program on a finding, made as specified in the 18 regulations, that the store or concern has violated any of the 19 provisions of this act. This disqualification shall be for the 20 period of time as may be determined in accordance with the 21 regulations. The action of disqualification shall be subject to 22 review as provided in section 13. 23 Section 12. Determination and disposition of claims. 24 The department shall have the power to determine the amount 25 of and settle and adjust any claim and to compromise or deny all 26 or part of any claim or claims arising under this act. 27 Section 13. Administrative and judicial review. 28 Whenever: 29 (1) an application of a retail clothing store or 30 wholesale clothing concern to participate in the Clothing 19850H1303B1552 - 16 -
1 Stamp Program is denied; 2 (2) a retail clothing store or a wholesale clothing 3 concern is disqualified under the provisions of section 11; 4 or 5 (3) all or part of any claim of a retail clothing store 6 or wholesale clothing concern is denied under the provisions 7 of section 12; 8 notice of this administrative action shall be issued to the 9 retail clothing store or wholesale clothing concern involved. 10 The notice shall be delivered by certified mail or personal 11 service. If a store or concern is aggrieved by this action, it 12 may, in accordance with Title 2 of the Pennsylvania Consolidated 13 Statutes (relating to administrative law and procedure), appeal 14 the decision to the department and request a hearing on the 15 matter. A formal decision on the matter issued by the department 16 may be appealed as provided in Title 2 of the Pennsylvania 17 Consolidated Statutes. 18 Section 14. Violations and enforcement. 19 (a) Enforcement.--Notwithstanding any other provisions of 20 this act, the department may provide for the purchase, issuance 21 or presentment for redemption of coupons to any person or 22 persons and at the times and in the manner as it deems necessary 23 or appropriate to protect the interests of the Commonwealth or 24 to insure enforcement of this act and the regulations issued 25 pursuant to this act. 26 (b) Unlawful use, transfer, etc.--Whoever knowingly uses, 27 transfers, acquires, alters or possesses coupons or 28 authorization to purchase cards in any manner not authorized by 29 this act or the regulations issued hereunder shall, if the 30 coupons or authorization to purchase cards are of the value of 19850H1303B1552 - 17 -
1 $100 or more, be guilty of a felony and shall, upon conviction 2 thereof, be fined not more than $10,000 or imprisoned for not 3 more than five years, or both, or, if the coupons or 4 authorization to purchase cards are of a value of less than 5 $100, shall be guilty of a misdemeanor and shall, upon 6 conviction thereof, be fined not more than $5,000 or imprisoned 7 for not more than one year, or both. 8 (c) Unlawful redemption, etc.--Whoever presents, or causes 9 to be presented, coupons for payment or redemption of the value 10 of $100 or more, knowing the same to have been received, 11 transferred or used in any manner in violation of the provisions 12 of this act or the regulations issued pursuant to this act shall 13 be guilty of a felony and shall, upon conviction thereof, be 14 fined not more than $10,000 or imprisoned for not more than five 15 years, or both, or, if the coupons are of a value of less than 16 $100, shall be guilty of a misdemeanor and shall, upon 17 conviction thereof, be fined not more than $5,000 or imprisoned 18 for not more than one year, or both. 19 (d) Status of coupons.--Coupons issued pursuant to this act 20 shall be deemed to be obligations of the Commonwealth. 21 Section 15. Appropriation. 22 (a) Amount.--The sum of $10,000,000 is hereby appropriated 23 to carry out the provisions of this act for the fiscal year 24 1985-1986. 25 (b) Procedure.--Sums appropriated under this act shall, 26 notwithstanding the provisions of any other law, continue to 27 remain available until expended. Any portion of any 28 appropriation as may be required to pay for the value of the 29 coupon allotments issued to an eligible household which is in 30 excess of the charges paid by that household for the allotments 19850H1303B1552 - 18 -
1 shall be transferred to and made a part of the separate account 2 created under section 7(d). This act shall be carried out only 3 with funds appropriated from the General Fund of the State 4 Treasury for that specific purpose, and in no event shall it be 5 carried out with funds derived from permanent appropriations. On 6 or before January 20 of each year, the department shall submit 7 to the General Assembly a report setting forth operations under 8 this act during the preceding calendar year and projecting needs 9 for the ensuing calendar year. 10 (c) Value limit.--In any fiscal year, the department shall 11 limit the value of those coupons issued which is in excess of 12 the value of coupons for which households are charged, to an 13 amount which is not in excess of the portion of the 14 appropriation for such fiscal year which is transferred to the 15 separate account under the provisions of subsection (b). If in 16 any fiscal year the department finds that the requirements of 17 the program will exceed the limitation set forth herein, the 18 department shall reduce the amount of such coupons to be issued 19 to participating households to the extent necessary to comply 20 with the provisions of this subsection. 21 (d) Surplus funds.--If the department determines that any of 22 the funds in the separate account created under section 7(d) are 23 no longer required to carry out this act, such portion of such 24 funds shall be paid into the miscellaneous receipts of the 25 Treasury Department. 26 Section 16. Effective date. 27 This act shall take effect immediately. L20L67DGS/19850H1303B1552 - 19 -