THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY STEPHENS, REED, ADOLPH, AUMENT, BAKER, BLOOM, CLYMER, CUTLER, GABLER, GILLEN, GINGRICH, GRELL, GROVE, HARRIS, HICKERNELL, HUTCHINSON, KAUFFMAN, F. KELLER, KILLION, KRIEGER, MARSHALL, METZGAR, MILLARD, MILLER, MILNE, MURT, OBERLANDER, O'NEILL, PERRY, ROSS, SAYLOR, SCAVELLO, SCHRODER, SWANGER, TOEPEL, VULAKOVICH, RAPP, QUIGLEY, MALONEY, FARRY, TALLMAN, ROAE, GILLESPIE AND GEIST, APRIL 7, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, APRIL 26, 2011   

AN ACT

Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An

act to consolidate, editorially revise, and codify the public

welfare laws of the Commonwealth," in public assistance,

further providing for meeting special needs, work supports

and incentives, and establishing the Job Transition Loan

Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 408 of the act of June 13, 1967 (P.L.31,

No.21), known as the Public Welfare Code, amended May 16, 1996

(P.L.175, No.35), is amended to read:

Section 408.  Meeting Special Needs; Job Transition Loans; 

Work Supports and Incentives.--(a)  The department shall take

measures not inconsistent with the purposes of this article; and

when other funds or facilities for such purposes are inadequate

or unavailable to provide for special needs of individuals

eligible for assistance; to relieve suffering and distress

arising from disabilities and infirmities; to promote their

rehabilitation; to help them if possible to become self-

dependent; and, to cooperate to the fullest extent with other

public agencies empowered by law to provide rehabilitative or

similar services.

(b)  The department may provide assistance to recipients for

child day care when the department has determined that without

such services the recipient would be exempt from compliance with

the conditions of the agreement of mutual responsibility or work

requirements or when a former recipient who is employed has

ceased to receive cash assistance for a reason other than a

sanction for noncompliance with an eligibility condition. In

establishing the time limits and levels of access to child day-

care funds, the department shall take into account availability,

costs and the number of assistance groups needing services

within the geographic area and shall seek to provide essential

services to the greatest number of recipients.

(c)  The department may provide the following assistance to

recipients for [transportation and] work support as delineated

in this subsection when the department has determined that

without such [services] assistance the recipient would be exempt

from compliance with the conditions of the agreement of mutual

responsibility or work requirements. [In establishing the time

limits and levels of access to transportation and work support,

the department shall take into account availability, costs and

the number of recipients needing services within the geographic

area and shall seek to provide essential services to the

greatest number of recipients.] The assistance to be provided

under this subsection must be made in accordance with

subsections (d) and (e) and directly related to employment,

education, training, job interviews or work-related activities,

which may include:

(1)  Clothing costs.

(2)  Testing fee.

(3)  Union dues or professional fee.

(4)  Books, tools and supplies for education or training

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purposes.

(5)  Transportation, limited to:

(i)  Public transportation. Payment may only be made for

transportation provided by bus, subway, commuter rail, taxi or

paratransit.

(ii)  Private transportation. Payment may only be made for

costs incurred for transportation provided by privately owned

vehicles, mileage reimbursement, ride sharing and car or van

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pools.

(iii)  Personal transportation. Payment may only be made for

vehicle repairs, vehicle purchase and other expenses related to

a recipient-owned vehicle.

(d)  The department shall make interest-free job transition

loans available to recipients for the payment for items under

subsection (c)(1), (2), (3), (4) or (5)(iii) in accordance with

paragraph (1).

(1)  The department may authorize a loan under this

subsection provided that all of the following are satisfied:

(i)  The loan is preapproved by the department.

(ii)  The terms of the loan and repayment schedule are

enumerated in a promissory note representing the final written

expression of the loan agreement between the recipient and the

department.

(iii)  The promissory note is signed by the recipient prior

to disbursement.

(iv)  The loan disbursement is made directly to the payee,

upon receipt of an invoice.

(v)  The total outstanding loan amount made to an assistance

unit does not exceed two thousand dollars ($2,000).

(vi)  The term of the loan does not exceed twenty-four

months.

(vii)  The loan is governed by Pennsylvania law.

(viii)  The department reports on each loan to the major

credit reporting agencies.

(2)  The department shall promulgate rules providing for the

following:

(i)  The terms and conditions of repayment. The rules

promulgated under this subsection shall provide for job

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transition credits allowing recipients to reduce the total

outstanding loan amount by fifty dollars ($50) for every

subsequent month the recipient does not require cash assistance

or food stamps and for loan forgiveness for a recipient who does

not require cash assistance or food stamps for eighteen months

subsequent to the disbursement of the loan. for:

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(A)  Job transition credits allowing recipients to reduce the

total outstanding loan amount by an amount equal to the monthly

loan repayment amount for every subsequent month the cash

assistance recipient does not require cash assistance or the

food stamps recipient does not require food stamps.

(B)  Loan forgiveness for the cash assistance recipient who

does not require cash assistance for eighteen months subsequent

to the disbursement of the loan or for the food stamp recipient

who does not require food stamps for eighteen months subsequent

to the disbursement of the loan.

(ii)  The penalties and sanctions for late payments,

nonrepayment or loan default. The department shall maintain a

security interest in the loan. In the event of loan default, the

department may liquidate its security interest.

(iii)  The application process and guidelines for determining

the creditworthiness of a recipient.

(iv)  The standard form promissory note.

(3)  The department may enter into agreements or contracts

with other executive departments, nonprofit organizations or

private entities as needed to implement or manage the job

transition loan program.

(4)  When practical, the department shall arrange for loan

installments to be deducted from cash assistance amounts.

(5)  Only the secretary may authorize modification,

rescission or waiver of the promissory note.

(e)  The department may make payments under subsection

(c)(5)(i) and (ii) provided that all of the following are

satisfied for each payment:

(1)  The payment is not made directly to a recipient, except

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when the payment is made for mileage reimbursement for the

recipient's own vehicle.

(2)  The payment is made directly to the payee, upon receipt

of an invoice.

(3)  The payment has been preapproved by the department.

(f)  Under this section, the department may not:

(1)  authorize a job transition loan except as provided by

subsection (d) or pay for items or services except as provided

by subsection (e); or

(2)  pay for items or services under subsection (c)(5)(i) or

(ii) for a period beyond the recipient's first pay.

(g)  The department shall retain documentation of payments

and loans under this section.

(h)  The department shall submit an annual report to the

Majority Leader of the Senate, the Minority Leader of the

Senate, the chair and minority chair of the Public Health and

Welfare Committee of the Senate, the chair and minority chair of

the Appropriations Committee of the Senate, the Majority Leader

of the House of Representatives, the Minority Leader of the

House of Representatives, the chair and minority chair of the

Health Committee of the House of Representatives and the chair

and minority chair of the Appropriations Committee of the House

of Representatives. The report shall contain information

relating to:

(1)  the implementation of this section;

(2)  the number of recipients receiving assistance under this

section; and

(3)  the type of assistance provided under this section.

(i)  Assistance to be provided under this section shall be

limited to funds appropriated to the department for special

allowances.

(j)  The Job Transition Loan Fund is established within the

State Treasury as a special fund to which shall be credited all

appropriations made by the General Assembly for the purpose of

providing job transition loans as well as repayment of loans

made under this section. The department shall routinely

requisition from the Job Transition Loan Fund such amounts as

shall be allocated by the department for loans to recipients.

When and as the amounts so allocated as loans to recipients are

repaid pursuant to the terms of the agreements made and entered

into with the department, the department shall pay such amounts

into the Job Transition Loan Fund, it being the intent of this

subsection that the Job Transition Loan Fund shall operate as a

revolving fund whereby all appropriations and payments made

thereto may be applied and reapplied to the purposes of

providing loans under this section.

Section 2.  Any regulations inconsistent with the amendment

of section 408 of the act are abrogated.

Section 3.  This act shall take effect in 60 days.