PRINTER'S NO. 1552

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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
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     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,
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     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
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     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
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     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.--
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     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
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     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
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     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
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     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
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     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
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     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
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     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
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     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
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     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.


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