THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY CUTLER, BEYER, BOYD, CLYMER, CREIGHTON, DENLINGER, GINGRICH, HENNESSEY, HICKERNELL, HUTCHINSON, MURT, PICKETT, ROAE, ROSS, SCAVELLO, TURZAI, VULAKOVICH AND WATSON, JUNE 8, 2009

REFERRED TO COMMITTEE ON COMMERCE, JUNE 8, 2009  

AN ACT

Providing for Weatherization Assistance Program integrity;

prescribing duties of the Department of Community and

Economic Development; establishing the Office of Program

Compliance for Weatherization Assistance; and providing for

the powers and duties of the Auditor General.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the

Weatherization Assistance Program Integrity Act.

Section 2.  Scope of act.

This act shall apply to the Weatherization Assistance Program

and those entities that administer the program, including the

Department of Community and Economic Development and the local

agencies which receive grants from the Department of Community

and Economic Development under the program. This act shall also

apply to an individual who seeks or is provided assistance under

the Weatherization Assistance Program.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Grant."  Funds provided to a local agency by the Department

of Community and Economic Development under the Weatherization

Assistance Program.

"Local agency."  An entity which receives a grant from the

Department of Community and Economic Development under the

Weatherization Assistance Program. The term includes a unit of

county or local government. The term does not include an

individual who seeks or is provided assistance under the

Weatherization Assistance Program.

"Office."  The Office of Program Compliance for

Weatherization Assistance established under this act.

"Program."  The Weatherization Assistance Program.

"Secretary."  The Secretary of Community and Economic

Development of the Commonwealth.

"Significant discrepancy."  Information regarding assets,

income, resources or status of an individual who seeks or is

provided assistance under the Weatherization Assistance Program,

derived from a database in section 4 which gives the Department

of Community and Economic Development grounds to suspect that

either:

(1)  the individual is ineligible to participate in the

Weatherization Assistance Program under Federal or State law;

or

(2)  the assets, income or resources of the individual

are at least, in terms of dollar amount, 25% greater than the

dollar amount reflected in the information the Department of

Community and Economic Development possesses about the

individual with respect to the individual's assets, income or

resources.

"Status."  Being in the United States illegally, being dead,

being an inmate in a prison or jail or being a fleeing felon.

Section 4.  Assistance.

(a)  Duties.--Within 180 days of the effective date of this

section, the department shall do all of the following:

(1)  Issue photographic identification cards to

individuals who apply for and receive assistance under the

program.

(2)  Establish a computerized income eligibility

verification system in order to eliminate duplication of

assistance under the program and to deter fraud.

(b)  Information.--The department shall require, as a

condition of receiving assistance under the program, that an

individual applying for or receiving assistance under the

program must supply the individual's Social Security number and

the Social Security numbers of the members of the individual's

household. The department shall match the Social Security

numbers with the following:

(1)  Unearned income information maintained by the

Internal Revenue Service.

(2)  Employer quarterly reports of income and

unemployment insurance benefit payment information maintained

by the Commonwealth.

(3)  Earned income information maintained by the Social

Security Administration.

(4)  Immigration status information maintained by the

United States Bureau of Citizenship and Immigration Services.

(5)  Death register information maintained by the Social

Security Administration.

(6)  Prisoner information maintained by the Social

Security Administration.

(7)  Public housing and Section 8 payment information

maintained by the Department of Housing and Urban

Development.

(8)  National fleeing felon information maintained by the

Federal Bureau of Investigation.

(9)  Wage reporting and similar information maintained by

contiguous states.

(10)  Beneficiary Data Exchange (BENDEX) Title H database

maintained by the Social Security Administration.

(11)  Beneficiary Earnings Exchange Report (BEER)

database maintained by the Social Security Administration.

(12)  State New Hire database maintained by the

Commonwealth.

(13)  National New Hire database maintained by the

Federal Government.

(14)  State Data Exchange (SDX) database maintained by

the Social Security Administration.

(15)  Veterans Benefits and Veterans Medical (PARIS)

maintained by the Department of Veterans Affairs with

coordination through the Department of Health and Human

Services.

(16)  Commonwealth day care subsidy payments maintained

by the Commonwealth.

(17)  The database of persons who currently hold a

license, permit or certificate from a Commonwealth agency,

the cost of which exceeds $1,000.

(18)  A database which is substantially similar to or a

successor of a database set forth in paragraphs (1) through

(17).

(c)  System.--Notwithstanding any other provision of law, the

income eligibility verification system shall be utilized for an

individual at the time of application for assistance under the

program and every time the individual or a member of the

individual's household applies for assistance.

(d)  Notification.--The department shall notify an individual

applying for or receiving assistance of the requirement of

providing a Social Security number for the individual and for

each member of the individual's household at the time of

application for assistance and as otherwise required under the

provisions of this section.

(e)  Review.--If a significant discrepancy results from a

match between the Social Security number and one or more of the

databases set forth in subsection (b), the department shall

review the case and shall investigate the circumstances to

confirm eligibility of the individual applying for or receiving

assistance under the program utilizing the procedure set forth

in subsection (f).

(f)  Investigation.--The department shall institute the

following procedure to investigate the circumstances of a

significant discrepancy:

(1)  If the information discovered under subsection (b)

does not result in ineligibility or modification of the

amount or type of assistance under the program, the

department shall take no further action.

(2)  If paragraph (1) does not apply and there is a

significant discrepancy, the individual applying for or

receiving assistance under the program shall be given an

opportunity to explain the significant discrepancy. The

department shall provide written notice to the individual

describing in sufficient detail the circumstances of the

significant discrepancy, the opportunity to resolve the

significant discrepancy, the manner in which it may be

resolved and the consequences of failing to take action. The

explanation of the individual may be given over the

telephone, as set forth in subsection (i), in person or in

writing. After receiving the explanation, the department may

request additional documentation if it determines that there

is a substantial risk of fraud.

(3)  If the individual does not respond to the notice,

the department may deny assistance under the program for

failure to cooperate, in which case the department shall

provide notice of intent to discontinue eligibility.

Eligibility for assistance under the program shall not be

reestablished until the significant discrepancy has been

resolved.

(4)  If the individual disagrees with the findings of the

match between the Social Security number and one or more of

the databases set forth in subsection (b), the department

shall reinvestigate the matter. If the department finds that

there has been an error, the department shall take immediate

action to correct it, and no further action shall be taken.

If, after investigation, the department determines that there

is no error, the department shall determine the effect of the

match and take appropriate action. Written notice of the

department's action shall be given to the individual.

(5)  If the individual agrees with the findings of the

match between the Social Security number of the individual or

a Social Security number of a member of the individual's

household and the database, the department shall determine

the effect and take appropriate action. Written notice of the

department's action shall be given to the individual.

(6)  If the findings of a match between the Social

Security number and the database result in no change in

eligibility, the department shall take no further action.

(g)  Discrepancy.--If a discrepancy which is not a

significant discrepancy results between a Social Security number

and a database set forth in subsection (b), the department may

review the case and may investigate the circumstances to confirm

eligibility of the individual applying for or receiving

assistance under the program utilizing the procedure set forth

in subsection (f).

(h)  Discontinuation or modification.--

(1)  In no case shall the department discontinue or

modify the amount or type of assistance under the program

solely as a result of a match between a Social Security

number and one or more of the databases set forth in

subsection (b).

(2)  Nothing in this subsection shall be construed to

limit the right of appeal provided by law.

(i)  Telephone number.--The department shall establish a

single Statewide toll-free telephone number and call center to

be used by individuals applying for or receiving assistance

under the program in order to resolve discrepancies. The call

center shall have sufficient capacity and staff to promptly

handle incoming telephone calls, and the department shall assign

sufficient staff to enable the department to make prompt

determinations regarding eligibility under this section.

(j)  Report.--No later than one year after the effective date

of this section and every year thereafter, the department shall

provide a written report to the Governor, the General Assembly

and the State Inspector General detailing the results achieved

under this section and the amount of case closures and savings

that resulted.

(k)  Application.--The following shall apply to an individual

applying for or receiving assistance under the program:

(1)  Subject to paragraph (2), for a county with only one

local agency, an individual who is a resident of that county

must apply for and receive assistance under the program from

that local agency.

(2)  Notwithstanding paragraph (1), an individual who

lives in a county with only one local agency may apply for

and receive assistance under the program from a local agency

which is located in a county contiguous to the individual's

county of residence if the local agency in the contiguous

county is closer to the residence of the individual, by the

most direct travel route, than the local agency in the county

in which the individual resides.

(3)  For a county with more than one local agency, an

individual who is a resident of the county must apply for and

receive assistance under the program from the local agency

which is closest, by the most direct travel route, to the

residence of the individual.

Section 5.  Establishment of office.

The Office of Program Compliance for Weatherization

Assistance is hereby established within the department. The

office shall be administered by a director who shall be

appointed by the Governor with the advice and consent of a

majority of the members of the Senate. The director may hire

professional and other staff as necessary to carry out the

powers and duties set forth in section 6.

Section 6.  Powers and duties.

The office shall have the following powers and duties:

(1)  To monitor the department's administration of the

program and the performance of local agencies, including the

adherence of local agencies with the provisions of this act.

In fulfilling its duties under this paragraph, the office

shall develop and enforce written standard operating

procedures for local agencies, including the following:

(i)  Procedures for ensuring crisis situations are

remedied within 48 hours or within 18 hours if the crisis

is life threatening. The office shall develop and enforce

procedures so that local agencies employ temporary

measures to ensure health and safety if it is impossible

to remedy the crisis situation within 48 or 18 hours.

(ii)  Procedures for handling applications for

assistance under the program which ensure the most

vulnerable applicants, including the disabled, the

elderly and families with children, are served first.

(iii)  Procedures for the handling of waiting lists.

(iv)  Creation of a single application form for use

by individuals applying for assistance under the program.

(v)  The requirement that persons providing materials

and services or conducting repairs under the program

submit detailed invoices. The procedures must require

that a person submit a detailed invoice which breaks down

the cost of labor, the cost of materials and other costs.

(vi)  The requirement that before a person is paid by

a local agency for providing materials and services or

conducting repairs under the program that a detailed

invoice is submitted in accordance with subparagraph (v)

and that a final inspection by the local agency is

conducted to ensure safety and quality.

(vii)  Procedures for tracking complaints of

individuals who apply for and receive assistance under

the program and a procedure for remedying complaints.

(viii)  Procedures for redetermining eligibility of

individuals applying for or receiving assistance under

the program every 12 months.

(ix)  Procedures to ensure a standard bidding process

for the provision of materials and services or conducting

repairs under the program.

(x)  Procedures to calculate the energy and monetary

savings achieved on the part of individuals who receive

assistance under the program.

(xi)  Procedures to seek reimbursement from landlords

when furnaces are replaced under the program.

(xii)  Procedures which set forth the documentation

necessary to support a local agency's request for a grant

under the program.

(xiii)  Procedures to require quarterly reports on

the part of local agencies regarding expenditures under

the program and individual cases of assistance provided

under the program. In fulfilling its duties under this

subparagraph, the office may require other information

deemed relevant by the director from the local agency.

(xiv)  Procedures for ensuring that where more than

one local agency is located within the same geographic

area that the local agencies coordinate their efforts and

do not provide materials or services or conduct repairs

under the program with respect to the same dwellings.

(xv)  Procedures which, in the discretion of the

director, are relevant to the efficient and cost-

effective administration of the program and proper

oversight of local agencies.

(2)  To reconcile grant expenditures of local agencies to

grant requests made by local agencies and to reconcile

expenditures of individual cases of assistance provided under

the program.

(3)  To conduct audits and reviews of the program and to

do so in a manner which will allow an independent audit of

the program. In fulfilling its duties under this paragraph,

the office shall keep records electronically.

(4)  To develop and implement a computerized system which

permits integration between the department, the office and

the local agencies. In fulfilling its duties under this

paragraph, the office shall ensure that an integrated

database is created so that information from each local

agency regarding expenditures, crisis situations, waiting

lists, and other information deemed by the director of the

office to be relevant to the efficient and cost-effective

administration of the program, be gathered, tracked,

summarized and compiled in a report.

(5)  To conduct inspections of local agencies. The office

shall conduct at least one inspection of each local agency

every year. In addition, the office shall conduct unannounced

inspections on an ongoing and random basis. The office shall

conduct unannounced inspections of local agencies when the

office suspects that the program is not being administered

properly and there is a potential for fraud.

(6)  To create and implement written policies and

procedures for use by staff of local agencies regarding the

requirements of this act. In fulfilling its duties under this

paragraph, the office shall conduct training sessions for

managers, senior staff and other staff of a local agency

regarding the provisions of this act.

(7)  To create and implement written policies and

procedures for employees within the office who are

responsible for monitoring the activities of the local

agencies under this act, including procedures:

(i)  For reviewing applications filed by individuals

seeking assistance under the program for completeness and

accuracy.

(ii)  For reviewing grant requests and other

documents filed with the department on the part of local

agencies.

(iii)  For reviewing invoices from persons providing

materials and services or conducting repairs under the

program for completeness and accuracy.

(iv)  For reconciling grant requests from local

agencies with expenditures of local agencies under the

program.

(v)  For conducting announced and unannounced

inspections of local agencies.

(vi)  For conducting inspections of dwellings of

individuals who apply for and receive assistance under

the program.

(vii)  To develop a sampling methodology with respect

to reviewing the activity of local agencies.

(viii)  To evaluate the handling of waiting lists by

local agencies.

(ix)  To assess whether local agencies are ensuring

that the most vulnerable, including the disabled, elderly

and families with children, receive assistance under the

program first.

(x)  Which, in the discretion of the director, are

deemed relevant to the efficient and cost-effective

administration of the program and proper oversight of the

local agencies.

(8)  To require local agencies to submit, on a quarterly

and yearly basis, a report of expenditures, complaints,

length of time to complete weatherization, status of waiting

lists and other information deemed relevant by the director

of the office to the efficient and cost-effective

administration of the program and proper oversight of local

agencies.

(9)  To recommend and require changes regarding the

performance of a local agency when it finds a local agency is

not operating properly or in conformity with this act or with

Federal regulations.

(10)  To recommend to the secretary changes regarding the

administration of the program by the department.

(11)  To refer cases to the Attorney General and the

State Inspector General when the director of the office

believes fraud exists.

(12)  To report to the Governor, the General Assembly,

the State Inspector General and the secretary, every two

years regarding its duties, including instances of fraud and

potential for fraud, and to recommend changes to the program.

Section 7.  Powers and duties of Auditor General.

(a)  Conduct of performance audit.--The Auditor General shall

conduct a thorough performance audit of the manner in which the

department and the office are implementing this act and the

program which shall be completed within one year after the

effective date of this section. Thereafter, the Auditor General

shall conduct such performance audits at intervals of not less

than five years from the date of completing the immediately

preceding performance audit required under this subsection. The

department shall make all records, documents and other

information available for the inspection of the Auditor General

that reasonably relate to the conduct of the performance audit

prescribed in this section.

(b)  Content of audit.--The audit shall address in detail the

adequacy of the performance of the department and the office

with respect to each of the administrative and regulatory

activities described in sections 4 and 6 and shall make detailed

recommendations to the office, the department, the Governor and

the General Assembly for remedial and regulatory changes in the

program that will further the purposes of this act.

(c)  Implementation of recommendations.--The office shall

implement each of the recommendations in the performance audit

unless the director and the secretary jointly make a written

finding setting out in detail for each recommendation the

specific reasons why the director and the secretary have jointly

refused to implement that recommendation of the Auditor General.

(d)  Transmission of audit reports and written findings of

secretary and director; public access.--A copy of each

performance audit conducted pursuant to subsection (a) and each

written finding made pursuant to subsection (c) shall be

transmitted to the department, the office, the Governor, the

State Inspector General, the Attorney General, the chairman and

minority chairman of the Appropriations Committee of the Senate,

the chairman and minority chairman of the Appropriations

Committee of the House of Representatives, the chairman and

minority chairman of the Public Health and Welfare Committee of

the Senate and the chairman and minority chairman of the Health

and Human Services Committee of the House of Representatives. A

copy of the performance audit and the written findings rejecting

any recommendations shall be made available for public

inspection and copying, and the written findings of the

secretary and the director shall be published as a notice in the

Pennsylvania Bulletin.

(e)  Transmission of information or fraudulent activities.--

The Auditor General shall transmit any information uncovered

during the conduct of the performance audit relating to fraud to

the department, the office, the Attorney General and the State

Inspector General.

(f)  Performance audits by Legislative Budget and Finance

Committee.--The Legislative Budget and Finance Committee shall

conduct a thorough performance audit of the manner in which the

department, the office and the Auditor General are implementing

this act and the program which shall be completed within three

years after the effective date of this section. Thereafter, the

Legislative Budget and Finance Committee shall conduct such

performance audits at intervals of not less than ten years from

the date of completing the immediately preceding performance

audit required under this subsection. A copy of each performance

audit conducted by the Legislative Budget and Finance Committee

shall be transmitted to the public officials specified in

subsection (d).

Section 8.  Duties of local agencies.

A local agency shall have the following duties under this

act:

(1)  To comply with this act, including the written

standard operating procedures set forth in section 6(1).

(2)  To implement changes in its operations recommended

by the office as set forth in section 6(9).

(3)  To cooperate with the department and the office

during inspections and at all other times.

(4)  To conduct final inspections of dwellings which have

been provided materials or services or have been repaired

under the program before payment is made to persons providing

materials and services or conducting repairs under the

program.

Section 9.  Training materials.

Within 180 days of the effective date of this section, the

department or the office shall create and develop training

materials and manuals regarding proper administration of the

program and the requirements of this act to be used by local

agencies and shall distribute the materials and manuals to the

local agencies. The department or the office shall conduct

training sessions for managers, senior staff and other staff of

the local agencies responsible for the administration of the

program.

Section 10.  Report.

Every 60 days, the secretary shall submit a report to the

President pro tempore of the Senate, the chairperson and

minority chairperson of the Public Health and Welfare Committee

of the Senate, the Speaker of the House of Representatives and

the chairperson and minority chairperson of the Health and Human

Services Committee of the House of Representatives regarding the

progress made with respect to the requirements of sections 4 and

9. The secretary shall submit the report for publication in the

Pennsylvania Bulletin.

Section 11.  Effective date.

This act shall take effect immediately.