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PRINTER'S NO. 188
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
25
Session of
2017
INTRODUCED BY MACKENZIE, SIMMONS, EVANKOVICH, BIZZARRO, BLOOM,
R. BROWN, V. BROWN, DAVIS, DOWLING, DRISCOLL, FEE, GABLER,
GOODMAN, GROVE, HAHN, A. HARRIS, HEFFLEY, HILL-EVANS, IRVIN,
JAMES, KAUFFMAN, KIM, KNOWLES, LONGIETTI, MADDEN, McNEILL,
B. MILLER, MURT, O'NEILL, ORTITAY, RYAN, SOLOMON AND WATSON,
JANUARY 31, 2017
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 31, 2017
AN ACT
Providing for school-to-work pilot programs; establishing the
CareerBound Program; providing for a tax credit; and imposing
powers and duties on the Department of Labor and Industry.
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 CareerBound
Act.
Section 2. 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:
"Board." As defined in section 103 of the Workforce
Development Act.
"Business partner." A business entity authorized to do
business in this Commonwealth that employs individuals in a
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high-priority occupation.
"CareerBound." The pilot program established in section 3.
"Department." The Department of Labor and Industry of the
Commonwealth.
"High-priority occupation." An occupation which is included
in the list issued by the department under section 1302(e) of
the Workforce Development Act.
"Institutions of higher education." The term includes any of
the following:
(1) A community college operating under Article XIX-A of
the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949.
(2) A university within the State System of Higher
Education.
(3) The Pennsylvania State University.
(4) The University of Pittsburgh.
(5) Temple University.
(6) Lincoln University.
(7) Any other institution that the Commonwealth
designates as a State-related institution of higher
education.
(8) The Thaddeus Stevens College of Technology.
(9) Any accredited private or independent college or
university.
"Local workforce investment board." As defined in section
103 of the Workforce Development Act.
"Participating agencies." The term includes the Department
of Education and the Department of Community and Economic
Development of the Commonwealth.
"Pass-through entity." A partnership as defined in section
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301(n.0) of the Tax Reform Code, a single-member limited
liability company treated as a disregarded entity for Federal
income tax purposes or a Pennsylvania S corporation as defined
in section 301(n.1) of the Tax Reform Code.
"Payment." An amount of money paid in consideration for a
tax credit under section 7(e).
"Program partners." All entities that participate in a
school-to-work pilot program.
"Replacement school-to-work pilot program." A school-to-work
pilot program which has been approved to participate in
CareerBound under section 5(e).
"School partner." A school district, vocational-technical
school, intermediate unit, charter school or cyber charter
school.
"School-to-work pilot program." A pilot program which has
been approved to participate in CareerBound.
"Soft skills." The workplace interpersonal and professional
skills that are necessary for an employee to adhere to generally
accepted workplace behaviors. The term includes work ethic,
promptness, integrity and respect for others.
"Tax liability." An amount of tax due under Article III, IV,
VI, VII, VIII, IX or XV of the Tax Reform Code or under Article
XVI of the act of May 17, 1921 (P.L.682, No.284), known as The
Insurance Company Law of 1921.
"Taxpayer." A business entity authorized to do business in
this Commonwealth and subject to taxes imposed under Article
III, IV, VI, VII, VIII, IX or XV of the Tax Reform Code or a tax
under Article XVI of The Insurance Company Law of 1921. The term
includes a pass-through entity.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
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known as the Tax Reform Code of 1971.
"Workforce Development Act." The act of December 18, 2001
(P.L.949, No.114), known as the Workforce Development Act.
Section 3. CareerBound Program.
(a) Establishment.--There is established within the
department a pilot program to be known as CareerBound.
(b) Administration.--The program shall be administered by
the department to empower local workforce investment boards,
school partners and business partners to collaboratively develop
innovative school-to-work pilot programs to do all the
following:
(1) Provide students with career exploration
opportunities and exposure to high-priority occupations which
will enable each student to make an informed decision on his
or her future career path.
(2) Provide local workforce investment boards with the
funding and support necessary to convene school partners and
business partners to implement innovative school-to-work
pilot programs.
(3) Provide business partners with an opportunity to
participate in a tax credit program and to develop
collaborative relationships with school partners and local
workforce investment boards so that the next generation of
workers are well-equipped to meet the demand for high-
priority occupations.
(4) Provide school partners with the funds and framework
to deliver to students a relevant and rigorous curriculum
which prepares students for high-priority occupations.
(5) Provide program partners with informational
resources to help them conduct successful school-to-work
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pilot programs.
Section 4. School-to-work pilot program requirements.
(a) Curriculum.--The curriculum for a school-to-work pilot
program must include one or more of the following components:
(1) Early exposure. Curriculum approved under this
paragraph must provide students with a broad orientation to
the tools, processes and procedures used by individuals
employed in a high-priority occupation. Activities may
include student visits to a business partner's facilities for
company tours, demonstrations, field trips and lessons to
familiarize students with the basic features of a high-
priority occupation.
(2) Practical exposure. Curriculum approved under this
paragraph must provide students with a detailed understanding
of the tools, processes and procedures used by individuals
employed in a high-priority occupation. Activities may
include extended visits by students to a business partner's
facilities for demonstrations, job shadowing and hands-on
experience with the duties and skills necessary to be
employed in a high-priority occupation.
(3) Extended exposure. Curriculum approved under this
paragraph must provide students with an in-depth
understanding of the tools, processes and procedures used by
individuals employed in a high-priority occupation.
Activities may include apprenticeships, internships and
cooperative learning opportunities to give the student
practical knowledge which could be directly applicable to a
high-priority occupation.
(b) Occupational focus.--Curricula approved under subsection
(a) must be focused on providing students with exposure to high-
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priority occupations which are either designated as high-
priority occupations Statewide or within the region served by
the local workforce investment board.
(c) Soft skills development.--Curricula approved under
subsection (a) must include some instruction on the development
of soft skills.
Section 5. Application and approval process.
(a) Application.--A local workforce investment board may
submit an application to the department requesting approval for
participation in CareerBound.
(b) Application requirements.--A completed application must
describe the proposed school-to-work pilot program on a form and
in a manner prescribed by the department. An application must
include all of the following:
(1) A list of program partners, including a declaration
of interest by at least one school partner and at least one
business partner. The program partners may include
institutions of higher education, nonprofit business-support
entities and economic development agencies.
(2) A description of proposed curriculum, encompassing
at least one component listed in section 4(a)(1), (2) and
(3).
(3) A projection of costs associated with the proposed
school-to-work pilot program, including an enumeration of any
opportunities to leverage other funding and programming
resources.
(4) A list of high-priority occupations which will be
the focus of the proposed school-to-work pilot program.
(5) Documentation of any commitment by a business
partner that plans to make payment to the CareerBound program
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and will seek to utilize the tax credit provisions in section
7(a).
(6) A start date for the proposed school-to-work pilot
program.
(7) A list of clear objectives and measurable goals that
the proposed school-to-work pilot program will seek to
achieve.
(8) Documentation of an agreement among the program
partners describing the role of each program partner within
the proposed school-to-work pilot program and the
expectations that each program partner agrees to fulfill.
(c) Approval process.--
(1) The department, in consultation with participating
agencies and the board as needed, shall approve up to seven
school-to-work pilot programs for participation in
CareerBound.
(2) Priority must be given to a proposed school-to-work
pilot program demonstrating one or more of the following
characteristics:
(i) substantial program integration across
educational levels, including use of multiple curricula
components listed in section 4(a);
(ii) an ability to leverage other funding and
programming resources; or
(iii) a commitment from a business partner to
provide preferred interviews to students completing the
school-to-work pilot program.
(3) Additional consideration must be given to a proposed
school-to-work pilot program which includes multiple business
partners or multiple school partners or which targets middle
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school or early high school students for early exposure
activities or which is integrated into a school partner's
curriculum as a credit course.
(d) Contractual relationship.--Within 30 days of the
completion of the approval process, the department shall enter
into a contract with all local workforce investment boards that
submitted an application that was approved. The contract shall
require the signatories to provide the services described in the
approved school-to-work pilot program from funds appropriated or
distributed for this purpose or from funds identified by the
participating agencies for this purpose under the general
appropriation act.
(e) Termination and replacement.--The department, in
consultation with participating agencies and the board as
needed, may terminate a school-to-work pilot program for failure
to comply with program requirements. Consistent with the
requirements in subsection (c), a replacement school-to-work
pilot program may be approved.
(f) Expiration.--A school-to-work pilot program shall expire
at the end of the fourth school year of operation.
Section 6. Program operation.
(a) Cooperative management.--In collaboration with the
participating agencies and the board, the department shall
manage the operation of CareerBound, establish an application
process, enumerate outcome-based metrics by which school-to-work
pilot programs will be evaluated in the reports under section 9
and institute guidelines and procedures as necessary to
implement CareerBound. The guidelines must enumerate allowed and
disallowed expenses, provided that administrative expenses over
5% shall be disallowed.
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(b) Informational resources.--In collaboration with the
participating agencies and the board, the department shall
provide informational resources to help program partners conduct
successful school-to-work pilot programs.
(c) Distribution.--The department, in consultation with
participating agencies and the board as needed, shall determine
the distribution of available funds from the restricted account
in section 7(f) among the school-to-work pilot programs,
provided that a school-to-work pilot program receives no less
than 50% of the funds designated to it under section 7(d).
Section 7. Application for tax credit.
(a) Business partner.--A taxpayer that is a business partner
may apply to the Department of Community and Economic
Development for a tax credit. An application under this
subsection must include the amount of tax credit requested by
the taxpayer and must be made within 30 days of the taxpayer's
signing of the contract under section 5(d).
(b) Other taxpayers.--A taxpayer that is not a business
partner may apply to the Department of Community and Economic
Development for a tax credit. An application under this
subsection must include the amount of tax credit requested by
the taxpayer.
(c) Availability of tax credits.--The following shall apply:
(1) For taxpayers that are business partners applying
for a tax credit under subsection (a), tax credits under this
act shall be made available by the Department of Community
and Economic Development on a first-come, first-served basis
within the limitation established under subsection (g). The
availability of tax credits under this paragraph shall expire
90 days after completion of the approval process under
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section 5(c).
(2) Tax credits remaining after the allocation under
paragraph (1) shall be made available to all other taxpayers
by the Department of Community and Economic Development on a
first-come, first-served basis within the limitation
established under subsection (g).
(d) Designation by taxpayer.--A taxpayer applying for a tax
credit under subsection (a) or (b) may designate a school-to-
work pilot program to receive funds under section 6(c).
(e) Payments.--A taxpayer that is approved to receive a tax
credit under subsection (a) or (b) shall make payment to the
Department of Community and Economic Development in the amount
approved by the Department of Community and Economic
Development. The payment shall be made in the manner prescribed
by the Department of Community and Economic Development.
(f) Restricted account.--The Department of Community and
Economic Development shall deposit all payments made under
subsection (e) into a restricted account for distribution to
school-to-work pilot programs according to section 6(c).
(g) Tax credit certificate.--The following shall apply:
(1) Upon receipt of payment under subsection (e), the
Department of Community and Economic Development shall issue
to the taxpayer a tax credit certificate equal to the total
tax credits approved for the taxpayer. For a taxpayer that is
a business partner applying under subsection (a), the tax
credit amount must be equal to 90% of the amount paid in
subsection (e). For a taxpayer applying under subsection (b),
the tax credit amount must be equal to 75% of the amount paid
in subsection (e).
(2) The tax credit certificate must state:
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(i) The amount of tax credits that the taxpayer may
claim.
(ii) The tax years in which the tax credits may
first be utilized by the taxpayer.
(iii) A penalty or other remedy for noncompliance.
(iv) The procedure to be used for transferring the
tax credits to another taxpayer.
(v) Other requirements that the Department of
Community and Economic Development and Department of
Revenue consider to be necessary.
(h) Amount.--
(1) The total aggregate amount of all tax credits issued
under this act may not exceed $10,000,000.
(2) The total amount of tax credits issued to a taxpayer
under this act may not exceed $500,000.
Section 8. Carryover, carryback, refund and assignment.
(a) Carryover.--If the taxpayer cannot use the entire amount
of the tax credit for the taxable year in which the taxpayer is
eligible for the credit, the excess may be carried over to
succeeding taxable years and used as a credit against the
taxpayer's tax liability for those taxable years. Each time that
the tax credit is carried over to a succeeding taxable year it
shall be reduced by the amount of tax credits claimed during the
immediately preceding taxable year. The tax credits awarded
under this act may not be utilized for tax years beginning after
December 31, 2020.
(b) Carryback or refund.--A taxpayer may not be entitled to
carry back or obtain a refund of an unused tax credit.
(c) Sale or assignment.--A taxpayer, upon application to and
approval by the Department of Revenue, may sell or assign, in
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whole or in part, a tax credit granted to the taxpayer under
this act if the taxpayer does not have a tax liability against
which the tax credit may be applied in a taxable year in which
the tax credit is permitted to be claimed. The Department of
Revenue shall establish guidelines for the approval of an
application under this subsection. Before an application is
approved, the Department of Revenue shall make a finding that
the taxpayer and its assignee have filed the required State tax
reports and returns for the taxable years and paid any balance
of State tax due as determined by the Department of Revenue.
(d) Purchaser and assignee.--The purchaser or assignee of a
tax credit under subsection (c) shall immediately claim the
credit against its tax liability in the taxable year in which
the purchase or assignment is made. The purchaser or assignee
may not carry back, carry forward or obtain a refund of or sell
or assign the tax credit. The purchaser or assignee shall notify
the Department of Revenue of the seller or assignor of the tax
credit in compliance with procedures specified by the Department
of Revenue.
Section 9. Annual and final reports.
(a) Annual reports.--Within 60 days of the end of a school
year in which a school-to-work pilot program is in operation,
the department, participating agencies and the board shall
jointly submit a report to the Governor, the Auditor General,
the chairperson and minority chairperson of the Appropriations
Committee of the Senate, the chairperson and minority
chairperson of the Education Committee of the Senate, the
chairperson and minority chairperson of the Labor and Industry
Committee of the Senate, the chairperson and minority
chairperson of the Appropriations Committee of the House of
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Representatives, the chairperson and minority chairperson of the
Education Committee of the House of Representatives and the
chairperson and minority chairperson of the Labor and Industry
Committee of the House of Representatives regarding the
implementation of CareerBound and the school-to-work pilot
programs over the previous school year.
(b) Final report.--Within six months of the expiration of
the school-to-work pilot programs according to section 5(f), the
department, participating agencies and the board shall jointly
submit a report to the the Governor, the Auditor General, the
chairperson and minority chairperson of the Appropriations
Committee of the Senate, the chairperson and minority
chairperson of the Education Committee of the Senate, the
chairperson and minority chairperson of the Labor and Industry
Committee of the Senate, the chairperson and minority
chairperson of the Appropriations Committee of the House of
Representatives, the chairperson and minority chairperson of the
Education Committee of the House of Representatives and the
chairperson and minority chairperson of the Labor and Industry
Committee of the House of Representatives regarding the
implementation of CareerBound and the school-to-work pilot
programs.
(c) Report contents.--In addition to information or analysis
required by the department, in consultation with participating
agencies and the board as needed, the interim and final reports
must include information about each school-to-work pilot
program, including whether each school-to-work pilot program
achieved the clear objectives and measurable goals proposed
under section 5(b)(7), an analysis of each school-to-work pilot
program according to the outcome-based metrics enumerated by the
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department in section 6(a), the number of participating students
and the amount spent. The reports must identify best practices
observed from among the most successful school-to-work programs.
Section 10. Effective date.
This act shall take effect immediately.
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