CORRECTIVE REPRINT
PRIOR PRINTER'S NO. 2870 PRINTER'S NO. 2876
No. 2311 Session of 1993
INTRODUCED BY RICHARDSON, DALEY, BELFANTI, J. TAYLOR,
CAPPABIANCA, ROEBUCK, FEE, GEORGE, HALUSKA, CARN, MARKOSEK,
FREEMAN, VAN HORNE, ACOSTA, BISHOP, BUNT, LESCOVITZ, MELIO,
MERRY, PRESTON, GIGLIOTTI, HERMAN, JOSEPHS, STEELMAN, TRICH,
STABACK, LEVDANSKY, JAMES, TRELLO, LAUGHLIN, HUGHES,
KUKOVICH, MICHLOVIC, THOMAS, ROBINSON, WILLIAMS, PISTELLA AND
BROWN, NOVEMBER 24, 1993
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, NOVEMBER 24, 1993
AN ACT
1 Establishing a separate office in the Department of Public
2 Welfare to administer the cash and crisis components of the
3 Low-Income Home Energy Assistance Program; and providing for
4 the funding of that program from certain public utility gross
5 receipts tax revenues.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Low-Income
10 Home Energy Act.
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Council." The Low-Income Energy Assistance Advisory
16 Council.
1 "Department." The Department of Public Welfare of the
2 Commonwealth.
3 "Federal program" or "LIHEAP." The Federal Low-Income Home
4 Energy Assistance Program.
5 "Secretary." The Secretary of Public Welfare of the
6 Commonwealth.
7 "State program." The State Low-Income Home Energy Assistance
8 Program.
9 Section 3. Legislative findings.
10 The General Assembly finds and declares as follows:
11 (1) Home heating and energy service are a necessary part
12 of shelter, and the lack of home heating poses a threat to
13 life, health and safety.
14 (2) Low-income households should be protected from the
15 disproportionately adverse effects on their income resulting
16 from increasing energy prices.
17 (3) Sound public policy dictates that assisting low-
18 income households in meeting their energy needs must include
19 a component to make energy more affordable by permanently
20 reducing energy costs through weatherization.
21 (4) It is the responsibility of the Commonwealth to
22 assist low-income households in meeting and reducing their
23 home energy needs.
24 (5) The Commonwealth recognizes that Oil Overcharge
25 Funds are a temporary and inadequate method of supplementing
26 the Federal program.
27 (6) The State program can operate effectively only with
28 a commitment of State dollars and resources to go along with
29 the Federal dollars.
30 (7) The State program is not an income maintenance
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1 program and should not be administered as such.
2 (8) The State program is of such importance to the low-
3 income households of this Commonwealth that it should be
4 administered by an office dedicated exclusively to that
5 purpose operated on a year-round basis.
6 Section 4. Office of Low-Income Home Energy Assistance.
7 (a) Establishment.--There is hereby established within the
8 department the Office of Low-Income Home Energy Assistance. This
9 office shall be separate and apart from offices performing other
10 functions, and its sole function shall be the administration of
11 the energy assistance components of the State program. All funds
12 appropriated to the department for low-income home energy
13 assistance from Federal, State or other sources shall be
14 coordinated and expended through the program administered by the
15 Office of Low-Income Home Energy Assistance.
16 (b) Weatherization.--The weatherization component of the
17 State program shall be administered separately by the Department
18 of Community Affairs.
19 Section 5. Low-Income Energy Assistance Advisory Council.
20 The Low-Income Energy Assistance Advisory Council is hereby
21 created to advise the department on matters of policy relating
22 to the development and implementation of this program. Its
23 members shall be appointed by the secretary to serve such term
24 as he deems necessary.
25 Section 6. Operation of program.
26 (a) General rule.--The State program shall be in operation
27 for 12 months of the year. A quarterly evaluation of the program
28 shall be conducted the last day of each fiscal quarter, and
29 benefits may be adjusted quarterly in response to the
30 evaluation. The council shall submit the evaluation results to
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1 the General Assembly annually in the form of a report.
2 (b) Staff.--The department shall be responsible for assuring
3 that the departmental office and local offices have sufficient
4 trained staff to adequately administer the program.
5 (c) Outreach.--Outreach programs at the State and county
6 level shall be provided.
7 (d) State plan.--The State program shall be administered in
8 a manner consistent with the State plan submitted to the Federal
9 Government.
10 (e) Cooperation with other agencies.--The department shall
11 cooperate with other State agencies and with the Federal
12 Government in the administration of this program.
13 (f) Rules and regulations.--The department shall, in the
14 manner provided by law, promulgate the rules and regulations
15 necessary to carry out the energy assistance components of the
16 State program.
17 Section 7. Heating Energy Assistance Fund.
18 (a) Deposit of certain revenues.--During fiscal year 1993-
19 1994 and in each fiscal year thereafter, the Secretary of
20 Revenue shall, from funds raised by the tax imposed by Article
21 XI of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
22 Reform Code of 1971, during that fiscal year, deposit in a
23 special fund, to be known as the Heating Energy Assistance Fund,
24 an amount as specified in subsections (b) and (c). These funds
25 shall be appropriated only for low-income energy assistance and
26 weatherization programs as described in this act. All remaining
27 funds raised by this tax shall be deposited in the General Fund.
28 (b) Distributed amounts.--The amount of money deposited in
29 the fund each fiscal year for distribution during that year
30 shall be equal to a designated amount less any Federal program
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1 (LIHEAP) funding appropriated to the Commonwealth during that
2 prior Federal fiscal year. In fiscal year 1993-1994 the
3 designated amount shall equal $135,000,000. In each subsequent
4 year the designated amount shall equal $135,000,000 escalated on
5 a compounded annual basis by the Consumer Price Index as
6 published in the Pennsylvania Bulletin by the Department of
7 Commerce for the previous calendar year.
8 (c) Deposit.--In addition to the funding in subsection (b),
9 in fiscal year 1993-1994 a one-time deposit shall be made in the
10 amount of $7,500,000 to be used as matching funds for Federal
11 Title IV-A (aid to families with dependent children), or other
12 Federal energy assistance matching funds. The funding shall be
13 maintained in escrow in an interest-bearing account. Interest
14 earned on the account shall be first used to attract additional
15 Federal matching funds if available. If no additional Federal
16 matching funds are available, all interest will be distributed
17 yearly for energy assistance along with the fund distribution in
18 subsection (d).
19 (d) Administration.--The department shall administer the
20 fund created in subsection (a), LIHEAP funds and any other funds
21 made available by and received from the Federal Government or
22 the Commonwealth for low-income heating assistance. The
23 following criteria shall apply to the administration of funds
24 managed by the department:
25 (1) Escrow interest as designated by the secretary,
26 LIHEAP and the Pennsylvania Heating Energy Assistance Fund
27 shall be distributed annually as one coordinated funding
28 source.
29 (2) Funds distributed on behalf of recipients shall be
30 paid directly to the recipient's heating vendor.
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1 (3) Funds may be allocated annually to weatherization at
2 the discretion of the secretary but shall not exceed 15% of
3 the annual fund distribution in subsection (b).
4 (4) Funds are to be distributed on a year-round basis,
5 beginning July 1 through June 30.
6 Section 8. Effective date.
7 This act shall take effect in 60 days.
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