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                                                      PRINTER'S NO. 2388

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1820 Session of 2007


        INTRODUCED BY TURZAI, BENNINGHOFF, ADOLPH, ARGALL, BAKER,
           BARRAR, BEAR, BOBACK, BOYD, CAPPELLI, CAUSER, CLYMER, COX,
           CREIGHTON, CUTLER, DALLY, DENLINGER, ELLIS, J. EVANS,
           EVERETT, FAIRCHILD, FLECK, GABIG, GEIST, GILLESPIE, GINGRICH,
           GODSHALL, GRELL, HARHART, HARRIS, HERSHEY, HESS, HICKERNELL,
           HUTCHINSON, KAUFFMAN, M. KELLER, KILLION, MACKERETH, MAJOR,
           MANTZ, MARSHALL, MARSICO, McILHATTAN, MENSCH, METCALFE,
           MILLARD, R. MILLER, MOUL, MURT, MUSTIO, NAILOR, O'NEILL,
           PAYNE, PEIFER, PERRY, PERZEL, PHILLIPS, PICKETT, PYLE,
           QUIGLEY, RAPP, REED, REICHLEY, ROAE, ROCK, ROHRER, RUBLEY,
           SAYLOR, SCAVELLO, S. H. SMITH, SONNEY, STAIRS, STERN,
           R. STEVENSON, SWANGER, J. TAYLOR, TRUE, VEREB, VULAKOVICH AND
           WATSON, AUGUST 1, 2007

        REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES,
           AUGUST 1, 2007

                                     AN ACT

     1  Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
     2     act to consolidate, editorially revise, and codify the public
     3     welfare laws of the Commonwealth," providing for budget
     4     implementation and for work requirements for general
     5     assistance.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  The act of June 13, 1967 (P.L.31, No.21), known
     9  as the Public Welfare Code, is amended by adding articles to
    10  read:
    11                            ARTICLE II-A
    12                    SPECIAL BUDGETARY PROVISIONS
    13  Section 201-A.  Short title.


     1     This article shall be known and may be cited as the Working
     2  Family Independence Act.
     3  Section 202-A.  Scope.
     4     Notwithstanding any provision of law to the contrary, the
     5  provisions of this article apply to State appropriations
     6  appropriated by the General Assembly from the General
     7  Appropriation Act to the department.
     8  Section 203-A.  Definitions.
     9     The following words and phrases when used in this article
    10  shall have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Annual report."  The report the Department of Public Welfare
    13  files with the Federal Department of Health and Human Services
    14  pursuant to 45 CFR 265.9 (relating to what information must the
    15  State file annually?).
    16     "General Appropriation Act."  The act enacted by the General
    17  Assembly each year setting forth the amount of Federal and State
    18  money to be appropriated from the General Fund and other sources
    19  for general government operations.
    20     "General assistance."  As defined in section 402.
    21     "Line items which support income assistance."  As set forth
    22  in the General Appropriation Act, State appropriations for the
    23  line items for the Department of Public Welfare established
    24  under the General Fund either entitled or similar to:
    25         (1)  For general government operations of the Department
    26     of Public Welfare.
    27         (2)  For information systems.
    28         (3)  For Statewide operations related to county
    29     administration of the public assistance and medical
    30     assistance programs.
    20070H1820B2388                  - 2 -     

     1         (4)  For county assistance office operations related to
     2     administration of the public assistance and medical
     3     assistance programs.
     4         (5)  For cash assistance grants, including employment and
     5     training and child care services for cash assistance
     6     recipients and child care services for former cash assistance
     7     recipients.
     8     "Officers of the General Assembly." The President pro tempore
     9  of the Senate, the Majority Leader of the Senate, the Minority
    10  Leader of the Senate, the chairman of the Public Health and
    11  Welfare Committee of the Senate, the minority chairman of the
    12  Public Health and Welfare Committee of the Senate, the chairman
    13  of the Appropriations Committee of the Senate, the minority
    14  chairman of the Appropriations Committee of the Senate, the
    15  Speaker of the House of Representatives, the Majority Leader of
    16  the House of Representatives, the Minority Leader of the House
    17  of Representatives, the chairman of the Health and Human
    18  Services Committee of the House of Representatives, the minority
    19  chairman of the Health and Human Services Committee of the House
    20  of Representatives, the chairman of the Appropriations Committee
    21  of the House of Representatives and the minority chairman of the
    22  Appropriations Committee of the House of Representatives.
    23     "Rate of inflation."  The annual cost-of-living increase
    24  calculated by applying the percentage change in the Consumer
    25  Price Index for All Urban Consumers (CPI-U) for the
    26  Pennsylvania, New Jersey, Delaware and Maryland area, for the
    27  most recent 12-month period for which figures have been
    28  officially reported by the United States Department of Labor,
    29  Bureau of Labor Statistics.
    30     "State appropriation."  The appropriation by the General
    20070H1820B2388                  - 3 -     

     1  Assembly of Commonwealth funds. The term does not include the
     2  appropriation of Federal funds.
     3     "TANF."  As defined in 45 CFR 260.30 (relating to what
     4  definitions apply under the TANF regulations?).
     5     "Work verification plan."  As set forth in 45 CFR 261.62(b)
     6  (relating to what must a State do to verify the accuracy of its
     7  work participation information?), the document the Department of
     8  Public Welfare must submit to the Federal Department of Health
     9  and Human Services to ensure accuracy in the reporting of work
    10  activities by individuals receiving TANF.
    11  Section 204-A.  State appropriations to department.
    12     The following shall apply to State appropriations for the
    13  department from the General Appropriation Act:
    14         (1)  Except as prohibited by Federal law, State
    15     appropriations for the department may only be increased at
    16     maximum by the rate of inflation.
    17         (2)  State appropriations for the department from the
    18     General Fund, with the exception of line items which support
    19     income assistance, the State Lottery Fund and the Tobacco
    20     Settlement Fund shall be added together to form an aggregate
    21     State appropriation for the department which shall be
    22     disbursed by the State Treasurer on a quarterly basis during
    23     the fiscal year.
    24         (3)  Line items which support income assistance shall be
    25     disbursed by the State Treasurer on a quarterly basis during
    26     the fiscal year. The State Treasurer shall disburse the line
    27     items which support income assistance in an amount subject to
    28     the provisions of this article.
    29         (4)  In accordance with Federal law, the department shall
    30     comply with Federal mandatory work requirements for TANF as
    20070H1820B2388                  - 4 -     

     1     set forth in 45 CFR 261.21 (relating to what overall work
     2     rate must a State meet?) and 261.23 (relating to what two-
     3     parent work rate must a State meet?) for each Federal fiscal
     4     year ending September 30.
     5         (5)  In the General Appropriation Act, the following
     6     shall apply with respect to line items which support income
     7     assistance:
     8             (i)  No later than November 30 of each year the
     9         secretary shall submit to the State Treasurer a copy of
    10         the following documents which the department submits to
    11         the Federal Department of Health and Human Services under
    12         TANF for the Federal fiscal year ending September 30:
    13                 (A)  Work verification plan.
    14                 (B)  Quarterly reports submitted in accordance
    15             with 45 CFR 265.3 (relating to what reports must the
    16             State file on a quarterly basis?).
    17                 (C)  Annual report.
    18                 (D)  Any other documents submitted in accordance
    19             with 45 CFR Pt. 265 (relating to data collection and
    20             reporting requirements) which the Commonwealth
    21             submits to the Federal Department of Health and Human
    22             Services so that it can determine whether the
    23             Commonwealth has met the mandatory work participation
    24             requirements of TANF as set forth in 45 CFR 261.21
    25             and 261.23.
    26             (ii)  The State Treasurer shall review the documents
    27         submitted by the secretary and shall make a determination
    28         by December 15 of each year as to whether the
    29         Commonwealth is in compliance with the mandatory work
    30         participation requirements set forth in 45 CFR 261.21 and
    20070H1820B2388                  - 5 -     

     1         261.23 for each Federal fiscal year ending September 30.
     2         The State Treasurer shall submit a written statement
     3         regarding his determination to the officers of the
     4         General Assembly, the secretary and the Inspector General
     5         and shall publish in the Pennsylvania Bulletin notice of
     6         whether the department is in compliance with the
     7         mandatory work participation requirements.
     8             (iii)  At the same time the secretary submits
     9         documents related to TANF to the State Treasurer in
    10         accordance with subparagraph (i), the secretary shall
    11         also provide a written statement to the State Treasurer
    12         that the Commonwealth is in compliance with the mandatory
    13         work participation requirements set forth in 45 CFR
    14         261.21 and 261.23 or a written statement that the
    15         Commonwealth is not in compliance with these
    16         requirements. In addition, the secretary shall provide a
    17         copy of the written statement to the officers of the
    18         General Assembly and the Inspector General at the same
    19         time the secretary submits the documents related to TANF
    20         set forth in subparagraph (i) to the State Treasurer.
    21             (iv)  The secretary shall submit a copy of the
    22         documents set forth in subparagraph (i) to the officers
    23         of the General Assembly and the Inspector General at the
    24         same time the secretary submits the documents to the
    25         State Treasurer.
    26         (6)  With respect to line items which support income
    27     assistance during a fiscal year, if any of the conditions set
    28     forth in paragraph (7) are met during a quarter during a
    29     fiscal year, the State Treasurer shall not disburse an amount
    30     which represents one quarter of the line items which support
    20070H1820B2388                  - 6 -     

     1     income assistance but shall instead disburse an amount which
     2     is equal to one quarter of the amount set forth for the line
     3     items which support income assistance less 10% of the amount
     4     for each line item comprising the line items which support
     5     income assistance as set forth in the General Appropriation
     6     Act. However, in no case shall the reduction set forth in
     7     this paragraph apply more than once during a fiscal year. The
     8     reduction shall apply to the quarter immediately succeeding
     9     the quarter in which paragraph (7) applies.
    10         (7)  The following conditions apply to paragraph (6):
    11             (i)  The secretary submits a written statement in
    12         accordance with paragraph (5)(iii) that the Commonwealth
    13         is not in compliance with the mandatory work
    14         participation requirements set forth in 45 CFR 261.21 and
    15         261.23 for each Federal fiscal year ending September 30.
    16             (ii)  The State Treasurer determines in accordance
    17         with paragraph (5)(ii) that the Commonwealth is not in
    18         compliance with the mandatory work participation
    19         requirements set forth in 45 CFR 261.21 and 261.23 for
    20         the Federal fiscal year ending September 30.
    21             (iii)  The Commonwealth is found by the Federal
    22         Department of Health and Human Services not to be in
    23         compliance with mandatory work participation rates set
    24         forth in 45 CFR 261.21 and 261.23 for the Federal fiscal
    25         year ending September 30.
    26         (8)  If the provisions of paragraph (7) apply during a
    27     quarter, the amount of State appropriation which represents
    28     the amount equal to the reduction set forth in paragraph (6)
    29     shall be deposited by the State Treasurer in the Budget
    30     Stabilization Reserve Fund.
    20070H1820B2388                  - 7 -     

     1         (9)  The following shall apply to general assistance:
     2             (i)  The department shall achieve the minimum work
     3         participation rates set forth in section 408-A. The
     4         secretary shall submit data to the State Treasurer in
     5         accordance with section 407-A(b) regarding work
     6         activities and caseloads sufficient to enable the State
     7         Treasurer to determine whether the requirements of this
     8         subparagraph are met. An individual or family shall be
     9         deemed to be engaged in work activity if they meet the
    10         requirements regarding work set forth in section 410-A.
    11             (ii)  In the event the department fails to meet the
    12         minimum work participation rates set forth in section
    13         408-A in a quarter of a fiscal year, as determined by the
    14         State Treasurer, then the State Treasurer shall not
    15         disburse an amount which represents one quarter of the
    16         line items which support income assistance but shall
    17         instead disburse an amount which is equal to one quarter
    18         of the amount set forth for the line items which support
    19         income assistance less 10% of the amount for each line
    20         item comprising the line items which support income
    21         assistance as set forth in the General Appropriation Act.
    22         The amount of State appropriation which represents the
    23         reduction set forth in this subparagraph shall be
    24         deposited by the State Treasurer in the Budget
    25         Stabilization Reserve Fund. The State Treasurer shall
    26         submit a written statement regarding his determination to
    27         the officers of the General Assembly, the secretary and
    28         the Inspector General and shall publish in the
    29         Pennsylvania Bulletin notice of whether the Commonwealth
    30         is in compliance with the mandatory work participation
    20070H1820B2388                  - 8 -     

     1         requirements regarding general assistance.
     2         (10)  In no case shall the reduction in paragraph (9)
     3     apply more than once in the fiscal year.
     4         (11)  In the case of the Commonwealth failing to meet the
     5     requirements of paragraph (4) or (9) in a quarter, the
     6     reduction for failing to meet work participation rates under
     7     TANF or general assistance shall be assessed only once
     8     regardless of how many times the State Treasurer publishes
     9     notice of noncompliance.
    10                            ARTICLE IV-A
    11                     SPECIAL PROVISIONS RELATED
    12                       TO GENERAL ASSISTANCE
    13  Section 401-A.  Short title.
    14     This article shall be known and may be cited as the Working
    15  Families and Individuals Independence Act.
    16  Section 402-A.  Scope.
    17     Notwithstanding any provision of law to the contrary, the
    18  provisions of this article apply to general assistance.
    19  Section 403-A.  Definitions.
    20     The following words and phrases when used in this article
    21  shall have the meanings given to them in this section unless the
    22  context clearly indicates otherwise:
    23     "Assistance."  General Assistance granted under section
    24  432(3).
    25     "Community service programs."  Structured programs and
    26  embedded activities in which recipients perform work for the
    27  direct benefit of the community under the auspices of public or
    28  nonprofit organizations, including projects that serve a useful
    29  community purpose in fields such as health, social service,
    30  environmental protection, education, urban and rural
    20070H1820B2388                  - 9 -     

     1  redevelopment, welfare, recreation, public facilities, public
     2  safety and child care.
     3     "Education directly related to employment."  Education
     4  related to a specific occupation, job or job offer, if a
     5  recipient has not received a high school diploma or a
     6  certificate of high school equivalency.
     7     "Job search and job readiness assistance."  The act of
     8  seeking or obtaining employment, preparation to seek or obtain
     9  employment, including life skills training, substance abuse
    10  treatment, mental health treatment or rehabilitation activities
    11  for those who are otherwise employable.
    12     "Job skills training directly related to employment."
    13  Training or education for job skills required by an employer to
    14  provide an individual with the ability to obtain employment or
    15  to advance or adapt to the changing demands of the workplace.
    16     "Minor child."  An individual who:
    17         (1)  has not attained 18 years of age; or
    18         (2)  has not attained 19 years of age and is a full-time
    19     student in a secondary school or in the equivalent level of
    20     vocational or technical training.
    21     "Officers of the General Assembly."  The President pro
    22  tempore of the Senate, the Majority Leader of the Senate, the
    23  Minority Leader of the Senate, the chairman of the Public Health
    24  and Welfare Committee of the Senate, the minority chairman of
    25  the Public Health and Welfare Committee of the Senate, chairman
    26  of the Appropriations Committee of the Senate, the minority
    27  chairman of the Appropriations Committee of the Senate, the
    28  Speaker of the House of Representatives, the Majority Leader of
    29  the House of Representatives, the Minority Leader of the House
    30  of Representatives, the chairman of the Health and Human
    20070H1820B2388                 - 10 -     

     1  Services Committee of the House of Representatives, the minority
     2  chairman of the Health and Human Services Committee of the House
     3  of Representatives, the chairman of the Appropriations Committee
     4  of the House of Representatives and the minority chairman of the
     5  Appropriations Committee of the House of Representatives.
     6     "On-the-job training."  Training in the public or private
     7  sector that is given to a paid employee while the employee is
     8  engaged in productive work and that provides knowledge and
     9  skills essential to the full and adequate performance of the
    10  job.
    11     "Providing child care services to an individual who is
    12  participating in a community service program."  Providing child
    13  care to enable another recipient to participate in a community
    14  service program.
    15     "Satisfactory school attendance at secondary school or in a
    16  course of study leading to a certificate of general
    17  equivalence."  Regular attendance at a secondary school or in a
    18  course of study leading to a certificate of general equivalence
    19  if a recipient has not completed secondary school or received
    20  such a certificate.
    21     "Subsidized private sector employment."  Employment in the
    22  private sector for which the employer receives a subsidy or
    23  other public funds to offset some or all of the wages and costs
    24  of employing a recipient.
    25     "Subsidized public sector employment."  Employment in the
    26  public sector for which the employer receives a subsidy or other
    27  public funds to offset some or all of the wages and costs of
    28  employing a recipient.
    29     "Unsubsidized employment."  Full-time or part-time employment
    30  in the public or private sector that is not subsidized by a
    20070H1820B2388                 - 11 -     

     1  public program.
     2     "Vocational educational training."  Organized educational
     3  programs that are directly related to the preparation of
     4  individuals for employment in current or emerging occupations
     5  requiring training other than a baccalaureate or advanced
     6  degree.
     7     "Work activities."  The activities involving or relating to
     8  work set forth under section 410-A.
     9     "Work-eligible individual."  An adult or minor child head-of-
    10  household receiving assistance, or a non-recipient parent living
    11  with a child receiving assistance, unless the individual is
    12  exempt under section 405.1(a.3).
    13     "Work experience."  A work activity, performed in return for
    14  assistance, that provides an individual with an opportunity to
    15  acquire the general skills, training, knowledge and work habits
    16  necessary to obtain employment.
    17  Section 404-A.  Mandatory work requirements.
    18     (a)  Work activities.--A work-eligible individual receiving
    19  assistance must engage in work activities when the department
    20  has determined that the individual is ready to engage in work or
    21  when the individual has received assistance for a total of 24
    22  months, whichever is earlier.
    23     (b)  Community service.--If a work-eligible individual has
    24  received assistance for two months, the individual must
    25  participate in a community service program, unless the
    26  individual is exempt from work requirements under section
    27  405.1(a.3) or the individual is already engaged in work
    28  activities.
    29  Section 405-A.  Assessment.
    30     (a)  Initial assessment.--The department shall make an
    20070H1820B2388                 - 12 -     

     1  initial assessment of the skills, prior work experience and
     2  employability of a recipient of assistance who is at least 18
     3  years of age or who has not completed high school or its
     4  equivalent and is not attending secondary school.
     5     (b)  Timeframe.--The department shall make the assessment
     6  within 30 days of the date an individual becomes eligible for
     7  assistance.
     8  Section 406-A.  Children under six years of age.
     9     The department may not reduce or terminate assistance based
    10  on a work-eligible individual's refusal to engage in a required
    11  work activity if the individual is a single custodial parent
    12  caring for a child under six years of age who has a demonstrated
    13  inability to obtain appropriate child care. Documentation
    14  supporting inability to obtain appropriate child care shall be
    15  submitted and reviewed by the department on a case-by-case
    16  basis.
    17  Section 407-A.  Work participation rates.
    18     (a)  Rates.--With respect to assistance, the department shall
    19  meet the following work participation rates in fiscal year 2007
    20  and thereafter:
    21         (1)  A two-parent rate based on how well the department
    22     succeeds in helping work-eligible individuals in two-parent
    23     families find work activities.
    24         (2)  An overall rate based on how well the department
    25     succeeds in finding work activities for work-eligible
    26     individuals, irrespective of the individual's marital or
    27     familial status.
    28     (b)  Data submission.--The department must submit data
    29  regarding caseloads and work activities that allow the State
    30  Treasurer to measure the department's success in engaging work-
    20070H1820B2388                 - 13 -     

     1  eligible individuals in work activities. Data which are
     2  submitted may be the type which are submitted by the department
     3  to the Department of Health and Human Services pursuant to 45
     4  CFR Pt. 260 (relating to general temporary assistance for needy
     5  families (TANF) provisions) through Pt.265 (relating to data
     6  collection and reporting requirements).
     7     (c)  Financial penalty.--If the data show that the department
     8  did not meet a minimum work participation rate for a fiscal year
     9  as set forth in section 408-A, the department shall be subject
    10  to the financial penalty set forth under section 416-A.
    11  Section 408-A.  Overall participation rate.
    12     For the fiscal year 2007, the department must achieve a 50%
    13  minimum overall participation rate, and a 90% minimum
    14  participation rate for two-parent families. For each fiscal year
    15  thereafter, the department must achieve a 70% minimum overall
    16  participation rate and a 90% minimum participation rate for two-
    17  parent families.
    18  Section 409-A.  Two-parent families.
    19     The rate set forth in section 407-A(a)(1) applies to two-
    20  parent families with two work-eligible individuals. However, if
    21  one of the parents is a disabled work-eligible individual, the
    22  department shall not consider the family to be a two-parent
    23  family. A two-parent family includes, at a minimum, all families
    24  with two natural or adoptive parents of the same minor child who
    25  are work-eligible individuals and living in the home, unless
    26  both are minors and neither is a head-of-household.
    27  Section 410-A.  Work activities.
    28     (a)  Participation.--The work activities which count toward
    29  the work participation rates and which recipients of assistance
    30  may engage are:
    20070H1820B2388                 - 14 -     

     1         (1)  Unsubsidized employment.
     2         (2)  Subsidized private-sector employment.
     3         (3)  Subsidized public-sector employment.
     4         (4)  Work experience, if sufficient private-sector
     5     employment is not available.
     6         (5)  On-the-job training.
     7         (6)  Job search and job readiness assistance.
     8         (7)  Community service programs.
     9         (8)  Vocational educational training.
    10         (9)  Job skills training directly related to employment.
    11         (10)  Education directly related to employment, in the
    12     case of a recipient who has not received a high school
    13     diploma or a certificate of high school equivalency.
    14         (11)  Satisfactory attendance at secondary school or in a
    15     course of study leading to a certificate of general
    16     equivalence, if a recipient has not completed secondary
    17     school or received such a certificate.
    18         (12)  Providing child care services to an individual who
    19     is participating in a community service program.
    20     (b)  Specific requirements.--The following apply with respect
    21  to the work activities set forth in this section:
    22         (1)  With respect to on-the-job training, a recipient
    23     engaged in on-the-job training must be supervised by an
    24     employer, worksite sponsor or other responsible party on an
    25     ongoing basis no less frequently than daily.
    26         (2)  With respect to job search and job readiness
    27     assistance, if a recipient is receiving treatment or therapy
    28     as part of job search and job readiness assistance, such
    29     treatment or therapy must be determined to be necessary and
    30     must be certified by a qualified medical or mental health
    20070H1820B2388                 - 15 -     

     1     professional. With respect to job search and job readiness
     2     assistance, the activity must be supervised by an agency or
     3     other responsible party on an ongoing basis no less
     4     frequently than daily.
     5         (3)  With respect to community service programs, a
     6     community service program must be designed to improve
     7     employability of recipients not otherwise able to obtain
     8     employment. A recipient in a community service program must
     9     be supervised on an ongoing basis no less frequently than
    10     daily. When assigning a recipient to a community service
    11     program, the department or an agency shall take into account,
    12     to the extent possible, the prior training, experience and
    13     skills of a recipient.
    14         (4)  With respect to vocational educational training, a
    15     recipient engaged in vocational educational training must be
    16     supervised on an ongoing basis no less frequently than daily.
    17         (5)  With respect to job skills training directly related
    18     to employment, a recipient engaging in job skills training
    19     directly related to employment must be supervised on an
    20     ongoing basis no less frequently than daily.
    21         (6)  With respect to education directly related to
    22     employment, a recipient must be supervised on an ongoing
    23     basis no less frequently than daily.
    24         (7)  With respect to satisfactory attendance at secondary
    25     school or in a course of study leading to a certificate of
    26     general equivalence, a recipient engaging in satisfactory
    27     attendance at secondary school or in a course of study
    28     leading to a certificate of general equivalence must be
    29     supervised on an ongoing basis no less frequently than daily.
    30         (8)  With respect to providing child care services to an
    20070H1820B2388                 - 16 -     

     1     individual who is participating in a community service
     2     program, a recipient providing child care services to an
     3     individual who is participating in a community service
     4     program must be supervised on an ongoing basis no less
     5     frequently than daily.
     6  Section 411-A.  Hours for work-eligible individuals.
     7     (a)  Participation.--A work-eligible individual counts as
     8  engaged in work for a month for the overall rate if:
     9         (1)  the individual participates in work activities
    10     during the month for at least a minimum average of 30 hours
    11     per week; and
    12         (2)  at least 20 of the 30 hours per week come from
    13     participation in the activities listed in subsection (b).
    14     (b)  Work activities enumerated.--The following work
    15  activities count toward the first 20 hours of participation:
    16         (1)  Unsubsidized employment.
    17         (2)  Subsidized private-sector employment.
    18         (3)  Subsidized public-sector employment.
    19         (4)  Work experience.
    20         (5)  On-the-job training.
    21         (6)  Job search and job readiness assistance.
    22         (7)  Community service programs.
    23         (8)  Vocational educational training.
    24         (9)  Providing child care services to an individual who
    25     is participating in a community service program.
    26     (c)  Other activities.--Above 20 hours per week, the
    27  following activities may also count as participation:
    28         (1)  Job skills training directly related to employment.
    29         (2)  Education directly related to employment.
    30         (3)  Satisfactory attendance at secondary school or in a
    20070H1820B2388                 - 17 -     

     1     course of study leading to a certificate of general
     2     equivalence.
     3  Section 412-A.  Hours for two-parent families.
     4     (a)  Participation.--Subject to subsection (d), a family with
     5  two work-eligible parents counts as engaged in work for the
     6  month for the two-parent rate if:
     7         (1)  work-eligible parents in the family are
     8     participating in work activities for a combined average of at
     9     least 35 hours per week during the month; and
    10         (2)  at least 30 of the 35 hours per week come from
    11     participation in the activities listed in subsection ((b).
    12     (b)  Work activities enumerated.--The following work
    13  activities count for the first 30 hours of participation:
    14         (1)  Unsubsidized employment.
    15         (2)  Subsidized private-sector employment.
    16         (3)  Subsidized public-sector employment.
    17         (4)  Work experience.
    18         (5)  On-the-job training.
    19         (6)  Job search and job readiness assistance.
    20         (7)  Community service programs.
    21         (8)  Vocational educational training.
    22         (9)  Providing child care services to an individual who
    23     is participating in a community service program.
    24     (c)  Other activities.--Above 30 hours per week, the
    25  following work activities may also count for participation:
    26         (1)  Job skills training directly related to employment.
    27         (2)  Education directly related to employment.
    28         (3)  Satisfactory attendance at secondary school or in a
    29     course of study leading to a certificate of general
    30     equivalence.
    20070H1820B2388                 - 18 -     

     1     (d)  Families receiving child care assistance.--If the two-
     2  parent family receives government-funded child care assistance
     3  from the Federal Government or the Commonwealth and an adult in
     4  the family is not disabled or caring for a severely disabled
     5  child, the following apply:
     6         (1)  The work-eligible individuals must participate in
     7     work activities for an average of at least 55 hours per week
     8     to count as a two-parent family engaged in work for the
     9     month.
    10         (2)  At least 50 of the 55 hours per week must come from
    11     participation in the work activities listed in subsection
    12     (b).
    13         (3)  Above 50 hours per week, the work activities listed
    14     in subsection (c) may also count as participation.
    15  Section 413-A.  Special requirements concerning educational
    16                     activities.
    17     The following apply:
    18         (1)  Vocational educational training may only count for a
    19     total of 12 months for an individual.
    20         (2)  A recipient who is married or a single head-of-
    21     household under 20 years of age counts as engaged in work if
    22     the individual:
    23             (i)  maintains satisfactory attendance at a secondary
    24         school or the equivalent during the month; or
    25             (ii)  participates in education directly related to
    26         employment for an average of at least 20 hours per week
    27         during the month.
    28         (3)  For a married recipient, participation under this
    29     section counts as the greater of 20 hours or the actual hours
    30     of participation.
    20070H1820B2388                 - 19 -     

     1  Section 414-A.  Limitations.
     2     (a)  General rule.--Except as provided in subsection (b), an
     3  individual's participation in job search and job readiness
     4  assistance counts for a maximum of six weeks in any fiscal year.
     5     (b)  Exception.--If the Commonwealth's total unemployment
     6  rate is at least 50% greater than the United States' total
     7  unemployment rate, than an individual's participation in job
     8  search and job readiness assistance counts for a maximum of 12
     9  weeks in that fiscal year.
    10     (c)  Additional limitation.--An individual's participation in
    11  job search and job readiness assistance does not count for a
    12  week that immediately follows four consecutive weeks of such
    13  participation in a fiscal year.
    14     (d)  Calculation of full week.--The department may count
    15  three or four days of job search and job readiness assistance
    16  during a week as a full week of participation not more than once
    17  for any individual in a fiscal year.
    18  Section 415-A.  Special work provisions for single custodial
    19                     parents.
    20     Subject to section 406-A, a single custodial parent or
    21  caretaker relative with a child under six years of age shall
    22  count as engaged in work if the individual participates for at
    23  least an average of 20 hours per week.
    24  Section 416-A.  Failure to meet participation rates.
    25     Failure to meet the work participation rates set forth in
    26  section 408-A shall subject the department to the monetary
    27  penalty set forth in Article II-A.
    28  Section 417-A.  Methods used to report hours of participation.
    29     (a)  Actual hours.--The department must report the actual
    30  hours that work-eligible individuals participate in a work
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     1  activity. The department may not report the hours which an
     2  individual is scheduled to participate in a work activity.
     3     (b)  Factors in calculation.--For the purposes of calculating
     4  the work participation rates, actual hours may include the hours
     5  for which a work-eligible individual was paid, including paid
     6  holidays and sick leave. For participation in unpaid work
     7  activities, the department may also include excused absences for
     8  hours missed due to holidays and a maximum of an additional 10
     9  days of excused absences in any 12-month period, no more than
    10  two of which may occur in a month. In order to count an excused
    11  absence as actual hours of participation, the individual must
    12  have been scheduled to participate in an allowable work activity
    13  for the period of the absence that the department reports as
    14  participation.
    15     (c)  Self employment.--The department may not count more
    16  hours toward the participation rate for a self-employed
    17  individual than the number derived by dividing the individual's
    18  self-employment income, composed of gross income less business
    19  expenses, by the Federal minimum wage.
    20  Section 418-A.  Documenting hours of participation.
    21     (a)  Case file.--The department must support a work-eligible
    22  individual's hours of participation through documentation in the
    23  case file.
    24     (b)  Employed individuals.--For an employed individual, the
    25  documentation includes pay stubs, employer reports or time and
    26  attendance records substantiating hours of participation. The
    27  department may presume that an employed individual participated
    28  in unsubsidized employment for the total number of hours for
    29  which that individual was paid.
    30     (c)  Calculation of hours.--For unsubsidized employment,
    20070H1820B2388                 - 21 -     

     1  subsidized employment and on-the-job training, the department
     2  may report projected actual hours of employment participation
     3  for up to six months based on current, documented actual hours
     4  of work. Any time the department receives information that the
     5  recipient's actual hours of work have changed or no later than
     6  the end of any six-month period, the department must reverify
     7  the recipient's current actual average hours of work, and may
     8  report these projected actual hours of participation for another
     9  six-month period.
    10     (d)  Individuals not employed.--For an individual who is not
    11  employed, the documentation for substantiating hours of
    12  participation includes time sheets, service provider attendance
    13  records or school attendance records.
    14     (e)  Self-employed individuals.--For an individual who is
    15  self-employed, the documentation must include more than self-
    16  reporting by a recipient without additional verification.
    17  Section 419-A.  Accuracy of work participation information.
    18     (a)  Department duties.--To ensure accuracy in the reporting
    19  of work activities by work-eligible individuals, the department
    20  must:
    21         (1)  Establish and employ procedures for determining
    22     whether its work activities may count for participation rate
    23     purposes.
    24         (2)  Establish and employ procedures for determining how
    25     to count and verify reported hours of work.
    26         (3)  Establish and employ procedures for identifying who
    27     is a work-eligible individual.
    28         (4)  Establish and employ internal controls to ensure
    29     compliance with the procedures.
    30         (5)  Create a work verification plan, which must be
    20070H1820B2388                 - 22 -     

     1     submitted to the secretary for approval. The work
     2     verification plan must meet the requirements of subsection
     3     (b). The work verification plan shall be submitted to the
     4     secretary for approval by September 30 each year.
     5     (b)  Work verification plan.--The work verification plan must
     6  include the following:
     7         (1)  For each countable work activity:
     8             (i)  A description demonstrating how the activity
     9         meets the relevant definition set forth under section
    10         403-A.
    11             (ii)  A description of how the department determines
    12         the number of countable hours of participation for self-
    13         employed individuals.
    14             (iii)  A description of the documentation the
    15         department uses to monitor participation and ensure that
    16         the actual hours of participation are reported.
    17         (2)  A description of the department's procedures for
    18     identifying all work-eligible individuals.
    19         (3)  A description of how the department ensures that,
    20     for each work-eligible individual, it:
    21             (i)  Accurately inputs data into the Commonwealth's
    22         automated data processing system.
    23             (ii)  Properly tracks the hours through the automated
    24         data processing system.
    25             (iii)  Accurately reports the hours.
    26         (4)  A description of the procedures for ensuring the
    27     department does not count a work-eligible individual's hours
    28     of participation in an activity that does not meet a
    29     definition of a work activity set forth in section 403-A.
    30         (5)  A description of the internal controls that the
    20070H1820B2388                 - 23 -     

     1     department has implemented to ensure a consistent measurement
     2     of work participation rates.
     3     (c)  Review.--The secretary shall review the department's
     4  work verification plan for completeness and approve it if the
     5  secretary believes that it will result in accurate reporting of
     6  work participation information in accordance with this article.
     7  The secretary shall submit a written statement to the officers
     8  of the General Assembly and the Inspector General by October 30
     9  each year regarding whether the work verification plan has been
    10  approved. The secretary shall certify in that statement that the
    11  plan includes all the information required by this section and
    12  that it accurately reflects the procedures under which the
    13  department is operating. In addition, the secretary shall
    14  publish in the Pennsylvania Bulletin notice of whether the work
    15  verification plan has been approved and the work participation
    16  rates for each fiscal year.
    17  Section 420-A.  Safeguards for displaced workers.
    18     (a)  Prohibition.--An adult taking part in a work activity
    19  outlined in section 410-A may not fill a vacant employment
    20  position if:
    21         (1)  another individual is on layoff from the same or any
    22     substantially equivalent job; or
    23         (2)  the employer has terminated the employment of any
    24     regular employee or caused an involuntary reduction in its
    25     work force in order to fill the vacancy with an adult taking
    26     part in a work activity.
    27     (b)  Grievance procedure.--The department shall establish and
    28  maintain a grievance procedure to resolve complaints of alleged
    29  violations of the displacement rule in this section.
    30     (c)  Other laws not affected.--This section does not preempt
    20070H1820B2388                 - 24 -     

     1  or supersede Commonwealth or local laws providing greater
     2  protection for employees from displacement.
     3     Section 2.  This act shall take effect July 1, 2007, or
     4  immediately, whichever is later.


















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