PRINTER'S NO. 372
No. 363 Session of 1981
INTRODUCED BY PUNT, GLADECK, E. Z. TAYLOR, GEIST, KLINGAMAN,
GRIECO, HONAMAN, NOYE, MANMILLER, CORNELL, BOWSER, MERRY,
ALDEN, LEHR, SIRIANNI, DeVERTER, HAYES, ARTY, POTT, PERZEL,
LASHINGER, WENGER, ARMSTRONG, SIEMINSKI, McVERRY, LEVI,
DIETZ, SALVATORE, COSLETT, PETERSON, COCHRAN, FREIND, PITTS,
MACKOWSKI, W. W. FOSTER, COLE, WASS, E. H. SMITH, DORR, BURD,
CESSAR, GAMBLE, PICCOLA, GRUPPO, SPITZ, CIMINI, DAVIES,
MOEHLMANN, VROON, ANDERSON, BROWN, MADIGAN, PHILLIPS,
SERAFINI, BELARDI, LEWIS, FISCHER, A. C. FOSTER, JR., NAHILL,
BITTLE, PRATT, B. SMITH, SWIFT, McCLATCHY, RASCO, FRAZIER,
MARMION, CLYMER, KANUCK, JACKSON, BOYES, HEISER, FLECK,
GEORGE, FEE, TRELLO, CLARK, PETRONE, HORGOS, OLASZ, STAIRS,
KENNEDY, BRANDT, GANNON, JOHNSON, WILSON, HAGARTY, RYAN,
ROCKS AND GALLEN, FEBRUARY 2, 1981
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, FEBRUARY 2, 1981
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," changing clauses relating
4 to exclusions from requirements of registration for
5 employment, training and manpower, limiting general
6 assistance to chronically needy persons and transitionally
7 needy persons, further providing for annual quality control
8 reviews relating to the administration of assistance, for
9 child support eligibility, for continuing eligibility for
10 general assistance and the verification thereof, for
11 procedures relating to the cooperation of caretaker
12 relatives, for access to certain records, for the use of
13 funds saved, for certain expenditures, providing for certain
14 employment incentive payments as tax credits and authorizing
15 a priority employment services program and an employment
16 opportunities incentive program.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 403, act of June 13, 1967 (P.L.31,
1 No.21), known as the "Public Welfare Code," is amended by adding
2 a subsection to read:
3 Section 403. Uniformity in Administration of Assistance;
4 Regulations as to Assistance.--* * *
5 (e) The department shall conduct annual quality control
6 reviews of the chronically needy case load in accordance with a
7 methodology and scope determined by the department.
8 Section 2. Subsections (a) and (e) of section 405.1 of the
9 act, added July 15, 1976 (P.L.993, No.202), are amended to read:
10 Section 405.1. Pennsylvania Employables Program.--(a)
11 [Every individual, within ten days after establishing
12 eligibility for public assistance, as a condition of continuing
13 eligibility for aid to families with dependent children or
14 general assistance,] Prior to the authorization of assistance,
15 every individual shall register in accordance with regulations
16 of the department for employment, training and manpower
17 services, unless such individual is:
18 (1) a child who is attending school or college or an
19 approved program of vocational training on a full-time basis or
20 who is under the age of sixteen;
21 (2) [ill or incapacitated;] physically or mentally
22 incapacitated; physical or mental incapacity of a parent shall
23 be deemed to exist when the parent has a physical or mental
24 defect, illness or impairment. The incapacity shall be supported
25 by competent medical evidence. Alcohol or drug dependent persons
26 are obligated to comply with section 9(d), act of April 14, 1972
27 (P.L.221, No.63), known as the "Pennsylvania Drug and Alcohol
28 Abuse Control Act";
29 (3) so remote from a registration security office that
30 effective participation in employment and training counseling is
19810H0363B0372 - 2 -
1 precluded;
2 (4) required to be present in the home because of illness or
3 incapacity of another member of the household;
4 (5) the mother or other relative of a child under the age of
5 six who is caring for the child;
6 (6) the mother or other caretaker of a child if the father
7 or another adult male relative is in the home and not excluded
8 from the requirement to register, unless such adult male
9 relative has failed to register as herein required or has
10 refused without good cause to accept employment or to
11 participate in work experience or training;
12 (7) the mother or other caretaker of a child between the
13 ages of six and fourteen, unless there are adequate child care
14 arrangements for the child;
15 (8) actively participating in the Federal work incentive
16 program or was certified to said program within the previous six
17 months; or
18 (9) employed full time.
19 * * *
20 (e) The department shall, within twelve months of the
21 effective date of this act, establish a series of demonstration
22 projects which will have as their primary purpose, the obtaining
23 of bona fide employment for non-exempt assistance applicants and
24 recipients. The demonstration projects may be substituted for
25 the registration required by subsection (a). The demonstration
26 projects shall include, but not be limited to referral to
27 private employment agencies under contract with the department
28 and the establishment of an employment officer in county board
29 of assistance offices. Those demonstration projects considered
30 by the department to be successful after at least a twelve-month
19810H0363B0372 - 3 -
1 trial period may be made permanent on either a Statewide or
2 localized basis. During the trial period, a demonstration
3 project may be expanded. Every demonstration project must
4 include adequate provision for evaluation and each evaluation
5 shall include participation by members of the public. Nothing in
6 this subsection shall be construed to permit the implementation
7 of a demonstration program which would require an applicant or
8 recipient to perform work as payment for an assistance grant.
9 The department shall extend employment services as defined in
10 this subsection to all general assistance recipients in counties
11 of the first and second class.
12 * * *
13 Section 3. Section 408 of the act is amended to read:
14 Section 408. Meeting Special Needs; Encouraging Self-Support
15 and Employment.--[(a)] The department shall have the duty to
16 take measures not inconsistent with the purposes of this
17 article; and when other funds or facilities for such purposes
18 are inadequate or unavailable to provide for special needs of
19 individuals eligible for assistance; to relieve suffering and
20 distress arising from handicaps and infirmities; to promote
21 their rehabilitation; to help them if possible to become self-
22 dependent; and, to cooperate to the fullest extent with other
23 public agencies empowered by law to provide vocational training,
24 rehabilitative or similar services.
25 [(b) The department shall encourage employable recipients of
26 assistance to accept full or part-time employment by providing
27 that such recipients will again be granted assistance upon
28 termination of such employment if they are in need thereof.]
29 Section 4. Section 423 of the act, repealed in part April
30 28, 1978 (P.L.202, No.53), is amended to read:
19810H0363B0372 - 4 -
1 Section 423. Hearing Appeals of Recipients.--(a) Each
2 county board shall hear and determine appeals from actions of
3 its employes affecting the rights of those applying for or
4 receiving assistance. Any person applying for or receiving
5 assistance of any type covered by the public assistance
6 provisions of the Federal Social Security Act, may appeal to the
7 department from any decision of the county board, refusing or
8 discontinuing his assistance, in whole or in part. In every such
9 appeal, an opportunity for a fair hearing shall be granted, and
10 the decision of the department on such appeal shall be final,
11 except as otherwise hereinafter provided. All such appeals shall
12 be in accordance with rules and regulations established by the
13 department. [All appeals from the county board to the department
14 or from the department or county board to the court, shall
15 operate as a supersedeas of any order of the county board or
16 department in all cases where the appellant is already receiving
17 assistance.]
18 (b) Notwithstanding anything to the contrary in Title 2 of
19 the Pennsylvania Consolidated Statutes (relating to
20 administrative law and procedure), the department may make an
21 adjudication solely on the basis of written submissions if the
22 sole question presented by the appellant is one of State or
23 Federal law.
24 Section 5. The introductory paragraph and clause (3) of
25 section 432 of the act, amended April 1, 1976 (P.L.64, No.28),
26 are amended to read:
27 Section 432. Eligibility.--Except as hereinafter otherwise
28 provided, and subject to the rules, regulations, and standards
29 established by the department, both as to eligibility for
30 assistance and as to its nature and extent, needy persons of the
19810H0363B0372 - 5 -
1 classes defined in clauses (1), (2), [(2)(i) and (2)(ii)] and
2 (3) shall be eligible for assistance:
3 * * *
4 (3) Other persons who are citizens of the United States, or
5 legally admitted aliens and who are chronically needy or
6 transitionally needy persons.
7 (i) Chronically needy persons are those persons chronically
8 in need who may be eligible for an indeterminate period as a
9 result of medical, social or related circumstances and shall
10 include the following:
11 (A) A child who is under age eighteen, or who is under
12 twenty-two and attending high school, an approved program of
13 vocational training on a full-time basis, or undergraduate
14 college on a full-time basis. No general assistance shall be
15 paid to any full-time undergraduate student at a college or
16 university who has not participated in a Federally subsidized
17 program for dependent children within the previous five years.
18 (B) A person who is over forty-five years of age.
19 (C) A person who has a serious physical or mental handicap
20 which prevents him or her from working in any substantial
21 gainful activity as determined in accordance with standards
22 established by the department. The department may require that
23 documentation of disability be submitted from a physician or
24 psychologist. The department may also order at the department's
25 expense a person to submit to an independent examination as a
26 condition of receiving assistance under this paragraph. The
27 department shall determine eligibility within thirty days from
28 the date of application. Persons discharged from mental
29 institutions shall be classified as chronically needy in
30 accordance with department regulations.
19810H0363B0372 - 6 -
1 (D) A person who is a caretaker. This category of persons
2 shall include (i) one parent or other caretaker of a child under
3 the age of fourteen and (ii) persons whose presence is required
4 in the home to care for another person as determined in
5 accordance with department regulations.
6 (E) A person suffering from drug or alcohol abuse who is
7 currently undergoing active treatment in an approved program.
8 (F) A person who is employed full time and who does not have
9 earnings in excess of current grant levels.
10 (G) Any person who is ineligible for Unemployment
11 Compensation and whose income falls below the assistance
12 allowance level as a result of a natural disaster as determined
13 by the department.
14 (H) Any person who does not qualify as chronically needy
15 under other provisions of this act, who has served at least two
16 years on a sentence of imprisonment, and has been transferred to
17 a pre-release facility, released on parole, or released at the
18 expiration of the maximum sentence not more than sixty days
19 before applying for assistance. Such persons shall only be
20 considered as chronically needy under this provision for a
21 maximum of three months following release from imprisonment, and
22 must comply with section 405.1.
23 (I) Any person who does not otherwise qualify as chronically
24 needy, and who is receiving general assistance on the date this
25 section is enacted into law and who has not refused a bona fide
26 job offer or otherwise failed to comply with all employment
27 requirements of this act and regulations promulgated thereunder.
28 Such person must comply with all employment requirements of this
29 act and regulations promulgated thereunder. If after the date
30 this section is enacted into law a person's general assistance
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1 grants are terminated, then that person may not subsequently
2 qualify for general assistance under this provision. If it is
3 determined that the classification of persons according to their
4 status on the date of enactment as provided in this paragraph is
5 invalid, then the remainder of this act shall be given full
6 force and effect as if this paragraph had been omitted from this
7 act, and individuals defined in this paragraph shall be
8 considered transitionally needy if otherwise eligible. No person
9 shall qualify for general assistance under this subclause after
10 July 1, 1983.
11 (ii) Assistance for chronically needy persons shall continue
12 as long as the person remains eligible. Redeterminations shall
13 be conducted on at least an annual basis and persons capable of
14 work, even though otherwise eligible for assistance to the
15 chronically needy, would be required to register for employment
16 and accept employment if offered as a condition of eligibility
17 except as otherwise exempt under section 405.1.
18 (iii) Transitionally needy persons are those persons who are
19 otherwise eligible for general assistance but do not qualify as
20 chronically needy. Assistance for transitionally needy persons
21 shall be authorized in the form of a single grant not to exceed
22 the amount of thirty days assistance in any twelve-month period.
23 * * *
24 Section 6. Sections 432.3, 432.5(c), 432.6(a) and
25 432.7(a)(4) and (b) of the act, added July 15, 1976 (P.L.993,
26 No.202), are amended and section 432.6 is amended by adding a
27 subsection to read:
28 Section 432.3. Voluntary Termination of Employment.--A
29 person who is not in a class of persons excluded from mandatory
30 participation in the Pennsylvania employables program and who
19810H0363B0372 - 8 -
1 without good cause: (i) voluntarily terminates employment or
2 reduces his earning capacity [for the purpose of qualifying for
3 assistance or a larger amount thereof; or]; (ii) fails to apply
4 for work at such time and in such manner as the department may
5 prescribe; or (iii) fails or refuses to accept referral to and
6 participate in a vocational rehabilitation or training program,
7 including the work incentive program, or refuses to accept
8 referral to and work in employment in which he is able to
9 engage, provided such employment conforms to the standards
10 established for a bona fide offer of employment in the
11 Pennsylvania employables program, shall be disqualified from
12 receiving assistance for [thirty days thereafter and] sixty days
13 for the first violation and thereafter until such time as he is
14 willing to comply with the requirements of section 405.1. For
15 the second violation and for each subsequent violations the
16 disqualification period shall be one hundred twenty days. The
17 disqualification period shall commence on the date the
18 department's order imposing the disqualification is final.
19 Section 432.5. Limits on Property Holdings.--* * *
20 (c) Personal property in excess of a combined amount of two
21 hundred fifty dollars ($250) for the first person in the
22 assistance unit and one hundred dollars ($100) for each
23 additional person in the assistance unit shall be considered an
24 available resource except as follows:
25 (1) Wedding and engagement rings, family heirlooms, clothing
26 and children's toys.
27 (2) Household furnishings, personal effects and other items
28 used to provide, equip, and maintain a household for the
29 applicant and recipient.
30 (3) Equipment and material which are necessary to implement
19810H0363B0372 - 9 -
1 employment, rehabilitation, or self care plan for the applicant
2 or recipient.
3 (4) [Motor vehicles.] One motor vehicle.
4 (5) Savings of school children up to two thousand dollars
5 ($2,000) for each child.
6 (6) Retroactive assistance payments received as a result of
7 a prehearing conference or a fair hearing decision.
8 (7) Life insurance with a cash value not in excess of one
9 thousand dollars ($1,000).
10 * * *
11 Section 432.6. Support From Legally Responsible Relatives.--
12 (a) Every applicant for assistance whose eligibility is based
13 on deprivation due to absence of a parent from a home shall be
14 referred within ten days for interview to the [designated
15 support official of the department who shall be stationed in
16 local welfare offices, unless such offices have too few
17 applicants to warrant permanent stationing] domestic relations
18 section or other applicable division of the court of common
19 pleas. The department shall be responsible for taking all steps
20 necessary to identify, locate, and obtain support payments from
21 absent parents.
22 * * *
23 (e) Acceptance of public assistance shall operate as an
24 assignment to the department, by operation of law, of the
25 assistance recipient's rights to receive support, on his or her
26 own behalf and on behalf of any family member with respect to
27 whom the recipient is receiving public assistance. Such
28 assignment shall be effective only up to the amount of public
29 assistance received. The assignment shall take effect at the
30 time that the recipient is determined to be eligible for public
19810H0363B0372 - 10 -
1 assistance. Upon termination of public assistance payments, the
2 assignment of support rights shall terminate, provided that any
3 amount of unpaid support obligations shall continue as an
4 obligation to the department, to the extent of any unreimbursed
5 assistance. Immediately upon receipt of notification from the
6 department that a recipient has been determined to be eligible
7 for public assistance, the clerks of the appropriate courts of
8 the Commonwealth shall transmit any and all support payments
9 that they thereafter receive on behalf of such public assistance
10 recipients to the department. Such clerks shall continue
11 transmitting such support payments until notified by the
12 department that it is no longer necessary to do so. While the
13 recipient is receiving public assistance, any such support
14 payments made to or on behalf of the public assistance recipient
15 shall be allocated first to any amount due the department as
16 assignee of the recipient's support rights. The public
17 assistance recipient shall be deemed to have appointed the
18 department as his or her attorney in fact to endorse over to the
19 department any and all drafts, checks, money orders, or other
20 negotiable instruments submitted for payment of support due
21 during the time the recipient is receiving public assistance on
22 behalf of himself, herself, or any family member.
23 Section 432.7. Determination of Paternity and Enforcement of
24 Support Obligations.--In accordance with a child support plan
25 approved by the Federal Government, the department shall have
26 the power and its duty shall be to:
27 (a) Require as a condition of eligibility for assistance
28 that the applicant or recipient:
29 * * *
30 (4) Cooperate in obtaining support payments for such
19810H0363B0372 - 11 -
1 applicant or recipient and for a child with respect to whom such
2 aid is claimed or in obtaining any other payment or property due
3 such applicant, recipient or such child, except when such
4 cooperation would not be in the best interest of the child in
5 accordance with standards developed by the department consistent
6 with Federal regulations. "Cooperation" includes, but is not
7 limited to, the keeping of scheduled appointments with
8 applicable offices and appearing as a witness in court or at
9 other hearings or proceedings necessary to obtain support from
10 the absent parent.
11 (b) Provide for protective payments [for any child eligible
12 for assistance when a caretaker relative is ineligible due to
13 the caretaker relative's failure to comply with either clause
14 (2), (3) or (4) of subsection (a)] as set forth in section
15 432.7A.
16 * * *
17 Section 7. The act is amended by adding a section to read:
18 Section 432.7A. Protective Payments Imposed for Failure to
19 Cooperate.--(a) It is essential to the effective and
20 responsible utilization of assistance funds that applicants and
21 recipients who are caretaker relatives of a child whose
22 eligibility for assistance is based on deprivation due to
23 absence of a parent from a home, cooperate fully with the
24 department in securing child support payments from the absent
25 parent and in all other matters set forth in subsection (a) of
26 section 432.7.
27 (b) (1) Upon application for assistance, each caretaker
28 relative shall be notified that his or her cooperation in the
29 matters set forth in subsection (a) of section 432.7 shall be
30 required as a condition of eligibility and that failure to
19810H0363B0372 - 12 -
1 cooperate will result in the imposition of protective payments
2 for any child in whose behalf the caretaker relative seeks
3 assistance.
4 (2) If a caretaker relative fails to cooperate with the
5 department as set forth in subsection (a) of section 432.7,
6 unless the failure to cooperate was for good cause, the
7 department shall notify the caretaker relative verbally and in
8 writing that cooperation shall be required as a condition for
9 continuing eligibility and shall further inform the caretaker
10 relative that if he or she fails to cooperate protective
11 payments will be imposed.
12 (3) If the caretaker relative fails to cooperate, unless the
13 failure to cooperate was for good cause, the department shall
14 notify the caretaker relative in writing that protective
15 payments will be imposed for any child so affected ten days
16 after the date of notice. At the expiration of the ten-day
17 period, the department shall impose protective payments.
18 Section 8. Sections 432.9(b), 432.11(a) and 432.15 of the
19 act, added July 15, 1976 (P.L.993, No.202), are amended to read:
20 Section 432.9. Central Registry.--* * *
21 (b) To effectuate the purposes of this section, the
22 department may request and shall receive from all departments,
23 bureaus, boards or other agencies of this Commonwealth, or any
24 of its political subdivisions, and the same are authorized to
25 provide, such assistance and data [except tax records] as will
26 enable the department and other public agencies to carry out
27 their duties to locate absent parents for the support of their
28 children. The data to be provided from tax records shall be
29 limited, to full name, residence or address, name and address of
30 employer and the social security account number of the absent
19810H0363B0372 - 13 -
1 parent. The department shall utilize the "parent locator
2 service" pursuant to establishment in the Department of Health,
3 Education and Welfare by filing in accordance with section
4 653(b) of the Social Security Act.
5 * * *
6 Section 432.11. Access to State Records.--(a) The secretary
7 or his designees in writing shall have access to all records
8 [other than tax records], and the department, in cooperation
9 with all other departments of the executive branch, shall
10 establish a single uniform system of information clearance and
11 retrieval. Information collected as a result of the use of tax
12 records shall be limited to full name, residence or address,
13 name and address of employer and the social security account
14 number of the absent parent.
15 * * *
16 Section 432.15. Quarterly Earnings Determination.--The
17 department shall transmit to the [Bureau] Office of Employment
18 Security the social security number of all persons over sixteen
19 years of age who receive assistance during the second prior
20 quarter. The [Bureau] Office of Employment Security shall
21 determine the amount of wages reported by employers for the
22 amount of unemployment compensation insurance benefits which
23 have been paid during the second and third prior quarters to
24 persons with those social security numbers and shall return such
25 information, [including zero wage reports] excluding zero wage
26 reports, to the department. The department shall compare such
27 wage reports with earnings reported by recipients, take prompt
28 action to resolve discrepancies, and shall refer promptly for
29 investigation any cases of suspected fraud.
30 Section 9. The act is amended by adding a section to read:
19810H0363B0372 - 14 -
1 Section 432.19. Verification of Eligibility.--The department
2 may issue regulations requiring that certain conditions of
3 eligibility for assistance be verified prior to authorization of
4 assistance or during a redetermination of a recipient's
5 eligibility. Initial authorization of assistance shall not be
6 delayed more than fifteen days after application for purposes of
7 verification of eligibility if the applicant has cooperated in
8 the verification attempt. Except when prohibited by Federal law,
9 it shall be a condition of eligibility for assistance that an
10 applicant or recipient consent to the disclosure of information
11 about the age, residence, citizenship, employment, applications
12 for employment, income and resources of the applicant or
13 recipient which is in the possession of third parties. Such
14 consent shall be effective to empower any third party to release
15 information requested by the department. Except in cases of
16 suspected fraud, the department shall attempt to notify the
17 applicant or recipient prior to contacting a third party for
18 information about that applicant or recipient.
19 Section 10. Section 442.1 of the act, added July 31, 1968
20 (P.L.904, No.273), is amended to read:
21 Section 442.1. The Medically Needy; Determination of
22 Eligibility.--A person shall be considered medically needy if
23 he:
24 (1) Resides in Pennsylvania, regardless of the duration of
25 his residence or his absence therefrom; and
26 (2) Meets the standards of financial eligibility established
27 by the department with the approval of the Governor. In
28 establishing these standards the department shall take into
29 account (i) the funds certified by the Budget Secretary as
30 available for medical assistance for the medically needy; (ii)
19810H0363B0372 - 15 -
1 pertinent Federal legislation and regulations; and (iii) the
2 cost of living. Transitionally needy persons who are not
3 eligible for cash assistance by reason of section 432(3)(iii)
4 shall be considered medically needy.
5 Section 11. Subsection (e) of section 443.6 of the act,
6 added September 26, 1978 (P.L.769, No.146), is amended to read:
7 Section 443.6. Reimbursement for Certain Medical Assistance
8 Items and Services.--
9 * * *
10 (e) The department shall promulgate regulations to implement
11 this section and shall establish a procedure for prior
12 authorization. Such regulations may establish procedures for
13 issuing prior authorization at whatever administrative level the
14 department through the secretary deems appropriate.
15 Appropriateness shall be determined by the secretary after
16 hearings have been held and public input is received. Procedures
17 adopted in accordance with this section shall provide
18 authorization when appropriate, without undue delay. When no
19 decision is made on a request to the department for covered
20 services within twenty-one days of the date that the request is
21 received by the department, the authorization shall be deemed
22 approved. The department shall keep a record of those cases in
23 which no decision is made within twenty-one days.
24 Section 12. The act is amended by adding a section to read:
25 Section 475. Use of Savings.--(a) The department shall
26 determine the base year expenditures for general assistance for
27 the purpose of this section by multiplying the total cost of
28 general assistance cash grants for the months of January,
29 February and March of 1981 by four. The department shall
30 determine the first year expenditures for general assistance for
19810H0363B0372 - 16 -
1 the purpose of this section by multiplying the total cost of
2 general assistance cash grants for the months of January,
3 February and March of 1982 by four. The department shall
4 determine the second year expenditures for general assistance
5 for the purpose of this section by multiplying the total cost of
6 general assistance cash grants for the months of January,
7 February and March of 1983 by four.
8 (b) The department shall establish the first year savings
9 for the purpose of this section by subtracting the first year
10 general assistance cash grant cost from the base year general
11 assistance cash grant cost. The department shall establish the
12 second year savings for the purpose of this section by
13 subtracting the second year general assistance cash grant cost
14 from the first year general assistance cash grant cost.
15 (c) On July 1, 1982 the department shall raise general
16 assistance and aid to families with dependent children
17 allowances so that the cost of the increase in State funds for
18 the purpose of this section over the twelve-month period
19 beginning on that date shall be equal to at least seventy-five
20 percent of the first year savings. On July 1, 1983, the
21 department shall further raise general assistance and aid to
22 families with dependent children allowances so that the cost of
23 the further increase in State funds for the purpose of this
24 section over the twelve-month period beginning on that date
25 shall be equal to at least seventy-five percent of the second
26 year savings. That part of the first and second year savings not
27 used for a grant increase shall be used to fund programs which
28 will assist general assistance recipients in obtaining jobs.
29 Section 13. Article IV of the act is amended by adding
30 subdivisions to read:
19810H0363B0372 - 17 -
1 ARTICLE IV
2 PUBLIC ASSISTANCE
3 * * *
4 (k) Employment Incentive Payments
5 Section 491. Employment Incentive Payments.--(a) Any
6 corporation employing persons, who prior to their employment
7 were general assistance recipients, shall be entitled to
8 employment incentive payments to be provided as a credit against
9 taxes imposed upon the corporation by Article IV, V, VII, VIII
10 or IX of the act of March 4, 1971 (P.L.6, No.2), known as the
11 "Tax Reform Code of 1971," or by the act of June 22, 1964
12 (P.L.16, No.2), known as "The Mutual Thrift Institutions Tax
13 Act" and any person, partnership, or proprietorship employing
14 such persons shall be entitled to payments to be provided as a
15 credit against taxes imposed by Article III of the "Tax Reform
16 Code of 1971." For the purposes of computing any tax liabilities
17 against which the credit may be applied, deductions from taxable
18 income shall be reduced by employment incentive payments.
19 Employment incentive payments unused as a tax credit in any
20 taxable year may be carried over against tax liabilities of the
21 employer in the three immediately subsequent taxable years.
22 (b) An employment incentive payment may be claimed by an
23 employer who hires any person classified as chronically or
24 transitionally needy at the time of employment except that
25 payments shall not be provided for:
26 (1) The employment of any person who displaces any other
27 individual from employment, except persons discharged for cause
28 as certified by the Office of Employment Security.
29 (2) The employment of any person closely related, as defined
30 by paragraphs (1) through (8) of section 152(a) of the Internal
19810H0363B0372 - 18 -
1 Revenue Code, to the taxpayer, or, if the taxpayer is a
2 corporation, to an individual who owns, directly or indirectly
3 more than fifty percent of the outstanding stock of the
4 corporation.
5 (3) The employment of an individual for whom the employer is
6 simultaneously receiving Federally or State funded job training
7 payments.
8 (c) The employment incentive payment shall be the sum of
9 twenty percent of the first six thousand dollars ($6,000) of
10 qualified first-year wages for such year. Total employment
11 incentive payments shall not exceed ninety percent of total
12 taxes paid by the employer against which the incentive payments
13 may be claimed as a credit. Qualified wages must be cash
14 remuneration to the employe, including any amounts deducted or
15 withheld.
16 (d) To be eligible for employment incentive payments, the
17 employment must continue for at least one year unless the
18 employe voluntarily leaves the employment of the employer,
19 becomes disabled, or is terminated for cause. Employment
20 initiated during the year may be claimed as an employment
21 incentive payment in the subsequent year.
22 (e) The Department of Revenue, in cooperation with the
23 Department of Public Welfare, shall administer the provisions of
24 this section, promulgate appropriate rules, regulations and
25 forms for that purpose, and make such determinations as may be
26 required. Determinations made with respect to the tax credit
27 provided in this section may be reviewed and appealed in the
28 manner provided by law for other corporate or personal tax
29 credits.
30 (f) The total amount of employment incentive payments
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1 authorized by this section shall not exceed twenty-five million
2 dollars ($25,000,000) in any fiscal year. To insure that credits
3 are not claimed in excess of this amount, an employer may claim
4 the incentive payments only upon presentation of an authorizing
5 certificate. Certificates will be issued to the employe by the
6 Department of Public Welfare upon presentation to the Department
7 of Public Welfare of evidence of a qualifying offer of
8 employment. The Department of Revenue shall advise the
9 Department of Public Welfare of the total number of certificates
10 which may be issued in each calendar quarter consistent with the
11 limitation on total incentive payments. If an employe does not
12 accept the job for which the certificate is authorized, the
13 certificate shall be returned by the employe to the Department
14 of Public Welfare. If an employe terminates employment for any
15 reason prior to the expiration of two years, the employer shall
16 return the certificate, noting the date of the employe's hiring
17 and termination, to the Department of Revenue. The Department of
18 Public Welfare may issue certificates through the Office of
19 Employment Security and may promulgate regulations to allocate
20 certificates.
21 (g) Employment incentive payments shall not be available for
22 employes hired after December 31, 1985, unless reenacted by the
23 General Assembly. Not later than July 1, 1985, the Department of
24 Public Welfare shall report to the General Assembly on the
25 effectiveness of incentive payments to encourage the employment
26 of general assistance recipients and recommend whether the
27 program should be continued. Credits may be claimed against
28 taxes payable for tax years beginning January 1, 1982, and
29 thereafter, and may be claimed for any employe hired after the
30 effective date of this section.
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1 (l) Priority Employment Services Program
2 Section 492. Priority Employment Services Program.--(a) The
3 Department of Labor and Industry, through its Office of
4 Employment Security, is hereby authorized to establish and
5 provide special priority services to general assistance
6 recipients above and beyond those currently available and
7 permissible under Federal law, regulation and funding.
8 (b) The special priority services authorized by this section
9 shall include, but are not limited to, the provision of job
10 counseling, job testing and job readiness services beyond those
11 currently available through Federal authority and an employer
12 outreach program to encourage the employment of general
13 assistance recipients in the private sector and to disseminate
14 information regarding both Federal and State tax credit programs
15 for which general assistance recipients are eligible.
16 (m) Employment Opportunities Incentive Grant Program
17 Section 493. Employment Opportunities Incentive Grant
18 Program.--(a) The Department of Labor and Industry is hereby
19 authorized to make grants to vocational schools, institutions of
20 higher learning, commercial and nonprofit enterprises for the
21 implementation of projects to provide for employment
22 opportunities for welfare recipients. These grants shall:
23 (1) support training programs necessary for structurally
24 unemployed persons to obtain and retain bona fide employment;
25 (2) develop and implement programs to reduce welfare
26 dependency and chronic unemployment;
27 (3) improve and diversify the economic base of communities
28 to increase the number of unsubsidized jobs for the chronically
29 unemployed; and
30 (4) support and encourage employment opportunities programs
19810H0363B0372 - 21 -
1 for low-income community residents and provide them the
2 opportunity to become self-sustaining.
3 (b) The Department of Labor and industry may contract for
4 grant applications after:
5 (1) Establishing bid requirements and a specific bid
6 proposal.
7 (2) Advertising the request for proposal in the Pennsylvania
8 Bulletin and circulating the request for proposal through
9 interested eligible groups.
10 (3) Bids shall be open in a public meeting with all
11 potential vendors notified.
12 (4) Bids shall be evaluated by the department.
13 (c) Prior to the awarding of a grant the Department of Labor
14 and Industry shall submit a copy of the request for a proposal
15 and the bid application of the prospective grantee or
16 prospective grantees to the Chairman of the Health and Welfare
17 Committee of the House of Representatives and the Chairman of
18 the Public Health and Welfare Committee of the Senate.
19 (d) Projects receiving grants under this section shall
20 demonstrate the following:
21 (1) Linkage with and participation of the county boards of
22 assistance.
23 (2) Provisions for support services such as remedial and
24 career education, academic education, counseling, in-service
25 training and job-based curriculums.
26 (3) Demonstrate that funding would result in the creation of
27 permanent private job opportunities.
28 (4) Demonstrate previous capability to administer programs
29 of this nature.
30 (e) The Department of Labor and Industry, in order to
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1 effectuate and enforce the provisions of this section, shall
2 promulgate necessary rules and regulations and prescribe
3 conditions and procedures in order to assure compliance with
4 this section.
5 (f) Grants under this section will be available through
6 December 31, 1985, unless reenacted by the General Assembly. The
7 Department of Labor and Industry shall report to the General
8 Assembly on the effectiveness of the Employment Opportunities
9 Incentive Grant Program annually. The annual report shall
10 include, but not be limited to, the cost incurred by the
11 department to administer the program, the number and the type of
12 unsubsidized jobs made available as a result of the program, the
13 number of welfare recipients removed from the welfare rolls as a
14 result of the program and the projected savings to the
15 Department of Public Welfare as a result of the program.
16 Section 14. The department shall carry out or fund an
17 evaluation of the economic and social impact of the amendments
18 herein to section 432 of the act and provide that evaluation to
19 the General Assembly by July 1, 1984.
20 Section 15. Notwithstanding any other provision of law
21 except as expressly prohibited by Federal law as applied to any
22 particular individual, all Comprehensive Employment and Training
23 Act programs shall give first priority to the transitionally
24 needy and the chronically needy.
25 Section 16. This act shall take effect in 120 days.
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