CORRECTIVE REPRINT
        PRIOR PRINTER'S NOS. 6, 193, 380,             PRINTER'S NO. 1519
        402

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2 Session of 1995


        INTRODUCED BY FLICK, RYAN, PERZEL, BARLEY, FARGO, PHILLIPS,
           PITTS, E. Z. TAYLOR, D. W. SNYDER, DEMPSEY, FARMER, CLARK,
           KING, MAYERNIK, KENNEY, GLADECK, TRUE, CORNELL, MAITLAND,
           HESS, HARHART, HERMAN, FICHTER, BROWN, MILLER, ZUG, GAMBLE,
           WAUGH, GODSHALL, SCHULER, ADOLPH, LEH, LYNCH, ALLEN,
           VAN HORNE, S. H. SMITH, NYCE, PETTIT, RAYMOND, SHEEHAN,
           LAWLESS, HUTCHINSON, EGOLF, CLYMER, ROHRER, BAKER, J. TAYLOR,
           SCHRODER, RUBLEY, DeLUCA, STEIL, SATHER, MICOZZIE, MAJOR,
           MARKOSEK, BIRMELIN, FAIRCHILD, FLEAGLE, STERN, McGILL,
           HERSHEY, FEESE, CONTI, REINARD, SEMMEL, GEIST, CHADWICK,
           PLATTS, SAYLOR AND STISH, JANUARY 19, 1995

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JANUARY 26, 1995

                                     AN ACT

     1  Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
     2     act to consolidate, editorially revise, and codify the public
     3     welfare laws of the Commonwealth," providing for a job
     4     training program and establishing a timetable for
     5     implementation; PROVIDING FOR PENSION FUNDS OF RECIPIENTS;     <--
     6     PROVIDING TAX CREDITS TO EMPLOYERS OF PUBLIC ASSISTANCE
     7     RECIPIENTS; further providing for UNIFORMITY IN                <--
     8     ADMINISTRATION OF ASSISTANCE, FOR a workfare program, for
     9     applications for assistance, for eligibility and for aid to
    10     families with dependent children; providing for an electronic
    11     benefit distribution system; IMPOSING A PENALTY FOR FAILURE    <--
    12     TO APPEAR AT A CRIMINAL COURT PROCEEDING; AND PROVIDING for
    13     powers and duties of the Department of Public Welfare, for
    14     retesting and for protective custody of AFDC children for a
    15     publicly financed voucher program to provide access to
    16     privately delivered health insurance coverage.

    17     The General Assembly of the Commonwealth of Pennsylvania
    18  hereby enacts as follows:
    19     Section 1.  The act of June 13, 1967 (P.L.31, No.21), known

     1  as the Public Welfare Code, is amended by adding a section to
     2  read:
     3     Section 214.  Job Training Program.--(a)  The department
     4  shall, within sixty days of the effective date of this act,
     5  establish, implement and administer a three-year job training
     6  program with the ultimate goal of securing economic self-
     7  sufficiency for welfare recipients.
     8     (b)  The program shall contain the following:
     9     (1)  The program shall consist of three pilot projects
    10  located in three separate counties in different geographical
    11  regions representing rural, suburban and urban populations of
    12  this Commonwealth. IN SELECTING COUNTIES FOR PILOT PROJECTS,      <--
    13  PREFERENCE SHALL BE GIVEN TO AREAS OF PERSISTENT UNEMPLOYMENT
    14  AND WIDESPREAD FAILURE OR CLOSURE OF EXISTING DOMINANT
    15  INDUSTRIES.
    16     (2)  The program shall consist of, but not be limited to, the
    17  following:
    18     (i)  Acquisition of sufficient educational skills in reading,
    19  writing and mathematics to enable the trainee to function in the
    20  workforce.
    21     (ii)  Acquisition of skills necessary to conduct successful
    22  interviews, acquire marketable work ethics and employe
    23  dependability.
    24     (iii)  Such other areas, including life management skills,     <--
    25     (III)  SKILLS AND APTITUDE ASSESSMENT.                         <--
    26     (IV)  SUCH OTHER AREAS, INCLUDING LIFE MANAGEMENT SKILLS,
    27  which the department deems important.
    28     (V)  CONTINUED MONITORING OF TRAINEES PLACED IN PERMANENT      <--
    29  POSITIONS TO ENSURE THEIR CONTINUED EMPLOYMENT AND TO HELP THEM
    30  ACQUIRE AND MAINTAIN THE SKILLS NECESSARY FOR LONG-TERM
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     1  EMPLOYMENT.
     2     (3)  Each program operator shall provide support services to
     3  trainees, including, but not limited to, health care, day care
     4  and other educational and support services including
     5  transportation.
     6     (4)  Each program operator shall match trainees with existing
     7  job vacancies which pay wages and benefits sufficient to ensure
     8  the financial security of the trainee and any dependents to
     9  enable that trainee and dependents to remain free of any State
    10  assistance for at least one year.
    11     (5)  Each program operator may be an employer, a nonprofit
    12  association or corporation, CORPORATION OR GOVERNMENT AGENCY or   <--
    13  any combination thereof.
    14     (6)  Payments by the department to a project operator shall
    15  be scheduled so that twenty-five percent of the contract price
    16  is paid during training, twenty-five percent is paid upon
    17  completion of training, twenty-five percent after the trainee is
    18  employed continuously for a period of at least six months and
    19  twenty-five percent after the trainee is employed continuously
    20  for a period of at least one year.
    21     (c)  It is the intent of the General Assembly that this pilot
    22  program be continuously evaluated. The department shall be
    23  required to analyze the pilot program, measuring its results
    24  against the goals of this legislation as well as comparing it to
    25  other Federal and State job training programs. A report on the
    26  evaluation shall be submitted to the Governor and the General
    27  Assembly detailing the findings and recommendations of the
    28  evaluation no later than two years following implementation of
    29  the program. The report shall include, but not be limited to,
    30  whether the pilot program is cost-effective in the use of job
    19950H0002B1519                  - 3 -

     1  training resources and has resulted in improved rates of
     2  permanent job placements and reduction of welfare rolls.
     3     (d)  In the event the report submitted by the department
     4  indicates that the pilot program has achieved the goals of this
     5  section and has resulted in improved outcomes in job placement
     6  as compared to other existing job training programs, the
     7  department shall recommend changes to State law and regulations
     8  within twelve months after issuance of the report to permanently
     9  implement the components of the pilot program Statewide within
    10  twelve months after issuance of the report.
    11     (E)  AN EMPLOYER MAY NOT CONTRACT A PROGRAM PARTICIPANT TO     <--
    12  ANOTHER EMPLOYER UNLESS THE PROGRAM PARTICIPANT IS THE SOLE
    13  RECIPIENT OF ANY ADDITIONAL WAGES, BENEFITS OR COMPENSATION THAT
    14  MAY RESULT FROM THE CONTRACT.
    15     (e) (F)  The department shall promulgate regulations to        <--
    16  implement the provisions of this section.
    17     SECTION 2.  SECTION 403 OF THE ACT IS AMENDED BY ADDING A      <--
    18  SUBSECTION TO READ:
    19     SECTION 403.  UNIFORMITY IN ADMINISTRATION OF ASSISTANCE;
    20  REGULATIONS AS TO ASSISTANCE.--* * *
    21     (G)  REGULATIONS WHICH AUTHORIZE PAYMENT FOR PURCHASE OF AN
    22  AUTOMOBILE, FOR PARTS FOR AN AUTOMOBILE OR FOR REPAIR OF AN
    23  AUTOMOBILE FOR A RECIPIENT OF PUBLIC ASSISTANCE SHALL PROVIDE
    24  THAT THE PAYMENT SHALL BE MADE DIRECTLY TO THE SELLER OF THE
    25  AUTOMOBILE OR PARTS OR THE GARAGE OR MECHANIC WHICH MADE THE
    26  REPAIRS AND NOT TO THE RECIPIENT.
    27     Section 2 3.  Section 405.2(a), (b), (c) and (d), (D) AND (F)  <--
    28  of the act, amended or added April 8, 1982 (P.L.231, No.75) and
    29  June 16, 1994 (P.L.319, No.49), are amended AND THE SECTION IS    <--
    30  AMENDED BY ADDING A SUBSECTION to read:
    19950H0002B1519                  - 4 -

     1     Section 405.2.  [Community Work] Workfare Program.--(a)  The
     2  department shall [coordinate the establishment of community work
     3  projects by] enter into cooperative agreements to establish
     4  workfare projects with departments, agencies or institutions of
     5  the Commonwealth or any political subdivision located within the
     6  Commonwealth or any agency of the Federal Government or
     7  department-approved nonprofit organizations [that receive State
     8  or county funds] and] OR ESTABLISHED, FOR-PROFIT TEMPORARY HELP   <--
     9  ORGANIZATIONS FOR TEMPORARY PLACEMENT WITH PRIVATE, NONPROFIT OR
    10  FOR-PROFIT EMPLOYERS. PARTICIPATING, FOR-PROFIT TEMPORARY HELP
    11  ORGANIZATIONS SHALL RECOVER THEIR COSTS AND PROFIT FROM FEES
    12  CHARGED TO EMPLOYERS. THE DEPARTMENT shall assign to these work
    13  projects able-bodied cash assistance recipients [for whom the
    14  Office of Employment Security has] who have been unable to
    15  secure employment. In instances when [community work] workfare
    16  projects are not available for all able-bodied cash assistance
    17  recipients, priority shall be given to general assistance
    18  recipients for referral to available projects.
    19     (b)  Every individual who has not received a bona fide offer
    20  of training or employment under section 405.1 shall, as a
    21  condition of continuing eligibility for cash assistance, report
    22  to and work in [a community work] an available workfare project
    23  established under this section unless such individual is exempt
    24  from the registration requirements of section 405.1. Such
    25  individual shall be required to work that number of hours which
    26  when multiplied by the applicable minimum wage equals the amount
    27  of cash assistance such person receives: Provided, however,
    28  That:
    29     (1)  such work shall not exceed forty hours per week; and
    30     (2)  the parent or other caretaker of a child between the
    19950H0002B1519                  - 5 -

     1  ages of six and fourteen who is personally providing care for
     2  the child with only very brief and infrequent absences from the
     3  child shall not be required to participate in [community work]
     4  workfare projects except on days and at times when the child is
     5  in school or when there are adequate day-care arrangements
     6  available for the child at no cost to the recipient.
     7     (c)  [Community work] Workfare projects established under
     8  this section must be approved by the department. To qualify for
     9  approval, a work site must conform to appropriate health and
    10  safety AND ACCESSIBILITY standards. Cash assistance recipients    <--
    11  shall not be assigned to work opportunities available due to a
    12  labor dispute, strike, or lockout and shall not be assigned to
    13  perform work so as to cause the layoff, downgrading or
    14  prevention of return to work of an available competent employe.
    15  Cash assistance recipients shall be assigned to [community work]
    16  workfare projects within twenty-five miles of their place of
    17  residence unless the department determines that a greater
    18  distance is not a hardship. THE DEPARTMENT SHALL SEEK FEDERAL     <--
    19  WAIVERS TO ALLOW FOR AN INCREASE OF VEHICLE EQUITY VALUE UP TO
    20  THREE THOUSAND FIVE HUNDRED DOLLARS ($3,500) FOR PARTICIPANTS IN
    21  THIS PROGRAM.
    22     (d)  A person who without good cause fails or refuses to
    23  accept assignment to and participate in a [community work]
    24  workfare project shall be [disqualified from receiving cash
    25  assistance for sixty days for the first violation and thereafter
    26  until such time he or she is willing to comply. For the second
    27  violation and subsequent violations the disqualification period
    28  shall be one hundred twenty days. The disqualification period
    29  shall commence on the date the department's order imposing
    30  disqualification is final.] terminated from assistance pursuant
    19950H0002B1519                  - 6 -

     1  to section 432.3.
     2     * * *
     3     (F)  [WORKMEN'S COMPENSATION INSURANCE PREMIUMS SHALL BE THE   <--
     4  RESPONSIBILITY OF THE ENTITY WHICH PROVIDES THE EMPLOYMENT
     5  OPPORTUNITY.] FOR THE PURPOSES OF THE ACT OF JUNE 2, 1915
     6  (P.L.736, NO.338), KNOWN AS THE "WORKERS' COMPENSATION ACT,"
     7  INDIVIDUALS ASSIGNED TO WORKFARE PROJECTS SHALL BE DEEMED
     8  EMPLOYES OF THE COMMONWEALTH WITHIN THE MEANING OF THE TERM
     9  "EMPLOYE" AS DEFINED IN SECTION 104 OF THE "WORKERS'
    10  COMPENSATION ACT."
    11     * * *
    12     (H)  THE SECRETARY OF PUBLIC WELFARE, THE SECRETARY OF
    13  TRANSPORTATION AND THE SECRETARY OF LABOR AND INDUSTRY SHALL
    14  JOINTLY STUDY, IMPLEMENT AND COORDINATE A MEANS OF PROVIDING
    15  INEXPENSIVE PUBLIC TRANSPORTATION FROM AREAS WHERE HIGH NUMBERS
    16  OF UNEMPLOYED PERSONS LIVE TO AREAS WITH EMPLOYMENT
    17  OPPORTUNITIES. THIS TRANSPORTATION SYSTEM SHALL OPERATE ON A
    18  SCHEDULE WHICH ADEQUATELY ENABLES AND ENCOURAGES PEOPLE TO GET
    19  TO AND FROM THEIR JOBS AND THEREBY ALLEVIATES THE BURDEN THAT
    20  DISTANCE CAN IMPOSE ON THE IMPOVERISHED.
    21     (I)  THE DEPARTMENT SHALL ANNUALLY, ON THE EFFECTIVE DATE OF
    22  THIS ACT, SUBMIT TO THE GENERAL ASSEMBLY AN EVALUATION REPORT OF
    23  THE PROGRAM. THE REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO,
    24  COST EFFECTIVENESS, COST OF OPERATION, AVAILABILITY OF AND
    25  ACCESS TO PROJECT AND RECOMMENDATIONS TO THE GENERAL ASSEMBLY ON
    26  HOW TO IMPROVE THE PROGRAM.
    27     SECTION 4.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    28     SECTION 405.5.  TAX CREDITS TO EMPLOYERS.--AN EMPLOYER WHO
    29  HIRES A PUBLIC ASSISTANCE RECIPIENT SHALL RECEIVE AN ANNUAL TAX
    30  CREDIT TOWARDS THE STATE TAXES OWED BY HIS BUSINESS FOR EACH OF
    19950H0002B1519                  - 7 -

     1  THE FIRST TWO YEARS OF SUCH EMPLOYMENT. THIS TAX CREDIT SHALL BE
     2  EQUAL TO ONE-FOURTH OF THE ANNUAL SALARY PAID IN THE TAX YEAR TO
     3  THAT EMPLOYE. IN ADDITION, THE EMPLOYER SHALL RECEIVE A TAX
     4  CREDIT FOR ANY SUPPLEMENTAL SUPPORT SERVICE HE PROVIDES TO SUCH
     5  EMPLOYES, SUCH AS TRANSPORTATION AND DAY CARE SERVICES,
     6  REGARDLESS OF WHETHER OTHER EMPLOYES ALSO BENEFIT FROM SUCH
     7  SERVICE. SUCH SERVICE, TO BE ELIGIBLE, MUST BE APPROVED BY THE
     8  DEPARTMENT, AND SUCH APPROVAL SHALL BE BASED ON WHETHER THE
     9  SERVICE ASSISTS A PUBLIC ASSISTANCE RECIPIENT TO BECOME AND
    10  REMAIN GAINFULLY EMPLOYED. THE TAX CREDIT FOR SUPPLEMENTAL
    11  SUPPORT SERVICES SHALL BE AVAILABLE TO AN EMPLOYER IN ANY YEAR
    12  HE EMPLOYS AT LEAST ONE PERSON WHO WAS A PUBLIC ASSISTANCE
    13  RECIPIENT AT ANY TIME WITHIN THE PRECEDING TWO YEARS.
    14     Section 3 5.  Section 414 of the act, added June 16, 1994      <--
    15  (P.L.319, No.49), is amended to read:
    16     Section 414.  Assistance Recipient Identification Program.--
    17  (a)  Subject to Federal approval, only where necessary, there is
    18  hereby created a [pilot] Statewide program within the department
    19  to be known as the Assistance Recipient Identification Program.
    20     (b)  The purpose of the program is to eliminate duplication
    21  of assistance to recipients, to deter fraud and to assist law
    22  enforcement officials in their duties.
    23     [(c)  The department shall select three geographic areas in
    24  this Commonwealth representing rural, suburban and urban areas
    25  to participate in this program.]
    26     (d)  A person currently receiving or applying for assistance
    27  shall participate in the program. The person shall be identified
    28  using available technological means that may include, but are
    29  not limited to, two-digit fingerimaging.
    30     (e)  The department, wherever feasible, shall work with
    19950H0002B1519                  - 8 -

     1  neighboring states to execute agreements between each of those
     2  states and the Commonwealth to implement compatible computer
     3  cross-matching identification systems.
     4     (f)  It is a violation for a person in the program to acquire
     5  or attempt to acquire duplication of assistance.
     6     (g)  Absent a court order, only the department, the
     7  Pennsylvania State Police, the chief of a local municipal police
     8  department, OR HIS DESIGNEE WITHIN THE DEPARTMENT, INCLUDING THE  <--
     9  SHERIFF'S OFFICE IN COUNTIES OF THE SECOND CLASS, and the
    10  designated officials of neighboring states with whom the
    11  department executes agreements under subsection (e) shall have
    12  access to records under this program.
    13     [(h)  The department shall make a report to the General        <--
    14  Assembly one year, TWO YEARS AND FIVE YEARS after the effective   <--
    15  date of this act. [The] EACH report shall include:                <--
    16     (1)  Caseload data before implementation of this section as
    17  well as after one year for comparison purposes to judge the
    18  program's effectiveness at fraud deterrence.
    19     (2)  Attempts at and instances of multiple enrollment by
    20  persons.
    21     (3)  Analysis of the cost-effectiveness of the project.
    22     (4)  Recommendations regarding whether the program should be
    23  discontinued, expanded or otherwise modified.
    24     (i)  This section shall expire two years after the effective
    25  date of this act unless extended by the General Assembly.
    26     (j)  As used in this section, the term "program" means the
    27  Assistance Recipient Identification Program.]                     <--
    28     (h)  The department shall make a report to the General
    29  Assembly on a yearly basis in order to report the attempts at
    30  and instances of multiple enrollment by persons. In addition,
    19950H0002B1519                  - 9 -

     1  the department shall provide total enrollment figures for the
     2  current year of all public assistance recipients.
     3     Section 4 6.  Section 432(3) of the act, amended June 16,      <--
     4  1994 (P.L.319, No.49), is amended and the section is amended by
     5  adding a clause to read:
     6     Section 432.  Eligibility.--Except as hereinafter otherwise
     7  provided, and subject to the rules, regulations, and standards
     8  established by the department, both as to eligibility for
     9  assistance and as to its nature and extent, needy persons of the
    10  classes defined in clauses (1), (2), and (3) shall be eligible
    11  for assistance:
    12     * * *
    13     (3)  Other persons who are citizens of the United States, or
    14  lawfully admitted aliens and who are chronically needy or
    15  transitionally needy persons.
    16     (i)  Chronically needy persons are those persons chronically
    17  in need who may be eligible for an indeterminate period as a
    18  result of medical, social or related circumstances and shall be
    19  limited to:
    20     (A)  A child who is under age eighteen or who is eighteen
    21  through twenty years of age and attending a secondary or
    22  equivalent vocational or technical school full-time and may
    23  reasonably be expected to complete the program before reaching
    24  twenty-one years of age.
    25     (B)  Persons who are parents residing in two-parent
    26  households with their child who is under eighteen years of age.
    27  Every possible effort shall be made by the department to place
    28  these persons in the AFDC program.
    29     (C)  A person who has a serious physical or mental handicap
    30  which prevents him or her from working in any substantial
    19950H0002B1519                 - 10 -

     1  gainful activity as determined in accordance with standards
     2  established by the department. The department may require that
     3  documentation of disability be submitted from a physician or
     4  psychologist. The department may also require further medical
     5  documentation of disability and may also order at the
     6  department's expense a person to submit to an independent
     7  examination as a condition of receiving assistance under this
     8  clause.
     9     (D)  A person who is a nonparental caretaker of a child under
    10  eighteen years of age or a caretaker of another person because
    11  of illness or disability. Such child or other person must be a
    12  member of the household and the caretaker must be a person whose
    13  presence is required in the home to care for another person as
    14  determined in accordance with department regulations.
    15     (E)  A person who is currently undergoing active treatment
    16  for substance abuse in a drug and alcohol program licensed or
    17  approved by the Department of Health or administered by an
    18  agency of the Federal Government. No individual shall qualify as
    19  chronically needy under this clause for more than nine months in
    20  a lifetime.
    21     [(F)  A pregnant woman whose pregnancy has been medically      <--
    22  verified.]                                                        <--
    23     [(G)] (F)  A person who is a victim of domestic violence and   <--
    24  who is receiving protective services as defined by the
    25  department. No individual shall qualify as chronically needy
    26  under this provision for more than nine months in his lifetime.
    27     (ii)  Assistance for chronically needy persons shall continue
    28  as long as the person remains eligible. Redeterminations shall
    29  be conducted on at least an annual basis and persons capable of
    30  work, even though otherwise eligible for assistance to the
    19950H0002B1519                 - 11 -

     1  chronically needy, would be required to register for employment
     2  and accept employment if offered as a condition of eligibility
     3  except as otherwise exempt under section 405.1.
     4     (iii)  Transitionally needy persons are those persons who are
     5  otherwise eligible for general assistance but do not qualify as
     6  chronically needy. A person without a physical or mental
     7  disability who is at least eighteen years of age, but not more
     8  than twenty-five years of age, shall not qualify as
     9  transitionally needy. Assistance for transitionally needy
    10  persons shall be authorized for not more than sixty days in any
    11  twenty-four month period. Any transitionally needy benefits
    12  received in the twelve-month period prior to the effective date
    13  of this subclause shall be applied toward the total period of
    14  benefits an individual is eligible for, beginning with the
    15  receipt of the first cash assistance check in the previous
    16  twelve-month period.
    17     * * *
    18     (9)  Assistance may not be granted to any person who has been
    19  sentenced for a felony or misdemeanor offense and who has not
    20  otherwise satisfied the penalty imposed on that person by law.
    21  The department and the Pennsylvania State Police shall enter
    22  into a cooperative agreement. Notwithstanding any provisions in
    23  18 Pa.C.S. Ch. 91 (relating to criminal history record
    24  information), this agreement shall provide the department with
    25  access to the central repository within the Pennsylvania State
    26  Police in order to carry out the objectives of this section. The
    27  Pennsylvania State Police shall have access to the records of
    28  the Assistance Recipient Identification Program under section
    29  414 within the department in order to carry out the objectives
    30  of section 414. As used in this clause, "satisfied the penalty"
    19950H0002B1519                 - 12 -

     1  means completed the period of incarceration or extension
     2  thereof, and paid all fines, costs and restitution. Nothing in
     3  this clause shall be deemed to exclude from assistance any
     4  person who has been paroled from a term of imprisonment, or any
     5  person who is in compliance with all terms of probation, and who
     6  has made full payment of all fines, costs and restitution.
     7     Section 5 7.  Section 432.12 of the act is amended by adding   <--
     8  subsections to read:
     9     Section 432.12.  Determination of Need.--* * *
    10     (d)  In determining the amount of assistance payments to a
    11  recipient family for aid to families with dependent children,
    12  the department shall revise the schedule of benefits to be paid
    13  to the recipient family by eliminating the increment in benefits
    14  under the program for which that family would otherwise be
    15  eligible as a result of the birth of a child CONCEIVED during     <--
    16  the period in which the family is eligible for aid to families
    17  with dependent children benefits, or during a temporary period
    18  in which the family or adult recipient is ineligible for aid to
    19  families with dependent children benefits pursuant to a penalty
    20  imposed by the department for failure to comply with benefit
    21  eligibility requirements, subsequent to which the family or
    22  adult recipient is again eligible for benefits. The department
    23  shall provide instead that a recipient family in which the adult
    24  recipient parents an additional child CONCEIVED during the adult  <--
    25  recipient's period of eligibility for aid to families with
    26  dependent children benefits, or during a temporary penalty
    27  period of ineligibility for benefits, may receive additional
    28  benefits only pursuant to subsection (e), except in the case of
    29  a general increase in the amount of aid to families with
    30  dependent children benefits which is provided to all program
    19950H0002B1519                 - 13 -

     1  recipients AND PROVIDE THAT ANY CHILD SUPPORT PAID FOR THE        <--
     2  EXCLUDED CHILD SHOULD BE PAID TO THE FAMILY FOR THE BENEFIT OF
     3  THE EXCLUDED CHILD AND SHOULD BE DISREGARDED IN COMPUTING THE
     4  AMOUNT OF FINANCIAL ASSISTANCE WHICH IS AVAILABLE TO THE REST OF
     5  THE FAMILY.
     6     (e)  In the case of a family that receives aid to families
     7  with dependent children in which the adult recipient parents an
     8  additional child CONCEIVED during the period in which the family  <--
     9  is eligible for aid to families with dependent children
    10  benefits, or during a temporary penalty period of ineligibility
    11  for benefits subsequent to which the family of the adult
    12  recipient again becomes eligible for benefits, the department,
    13  subject to Federal approval, shall, in addition to eliminating
    14  the increase in the benefit as provided in subsection (d),
    15  provide that in computing the amount of financial assistance
    16  which is available to the family that receives aid to families
    17  with dependent children, the monthly earned income disregard for
    18  each employed person in the family shall increase by an amount
    19  equal to that which the family would have otherwise received by
    20  parenting an additional child, adjusted for family size.
    21     (F)  ELIMINATION OF BENEFITS UNDER SUBSECTION (D) SHALL NOT    <--
    22  APPLY TO ANY CHILD CONCEIVED AS A RESULT OF RAPE OR INCEST IF
    23  THE DEPARTMENT:
    24     (1)  RECEIVES A NON-NOTARIZED, SIGNED STATEMENT FROM THE
    25  PREGNANT WOMAN STATING THAT SHE WAS A VICTIM OF RAPE OR INCEST,
    26  AS THE CASE MAY BE, AND THAT SHE REPORTED THE CRIME, INCLUDING
    27  THE IDENTITY OF THE OFFENDER, IF KNOWN, TO A LAW ENFORCEMENT
    28  AGENCY HAVING THE REQUISITE JURISDICTION OR, IN THE CASE OF
    29  INCEST WHERE A PREGNANT MINOR IS THE VICTIM, TO THE COUNTY CHILD
    30  PROTECTIVE SERVICE AGENCY AND STATING THE NAME OF THE LAW
    19950H0002B1519                 - 14 -

     1  ENFORCEMENT AGENCY OR CHILD PROTECTIVE SERVICE AGENCY TO WHICH
     2  THE REPORT WAS MADE AND THE DATE SUCH REPORT WAS MADE;
     3     (2)  RECEIVES THE SIGNED STATEMENT OF THE PREGNANT WOMAN
     4  WHICH IS DESCRIBED IN THIS SUBSECTION. THE STATEMENT SHALL BEAR
     5  THE NOTICE THAT ANY FALSE STATEMENTS MADE THEREIN ARE PUNISHABLE
     6  BY LAW AND SHALL STATE THAT THE PREGNANT WOMAN IS AWARE THAT
     7  FALSE REPORTS TO LAW ENFORCEMENT AUTHORITIES ARE PUNISHABLE BY
     8  LAW; AND
     9     (3)  VERIFIES WITH THE LAW ENFORCEMENT AGENCY OR CHILD
    10  PROTECTIVE SERVICE AGENCY NAMED IN THE STATEMENT OF THE PREGNANT
    11  WOMAN WHETHER A REPORT OF RAPE OR INCEST WAS FILED WITH THE
    12  AGENCY IN ACCORDANCE WITH THE STATEMENT.
    13  THE COMMONWEALTH AGENCY SHALL REPORT ANY EVIDENCE OF FALSE
    14  STATEMENTS OR OF FRAUD IN THE PROCUREMENT OR ATTEMPTED
    15  PROCUREMENT OF ANY PAYMENT FROM FEDERAL OR STATE FUNDS
    16  APPROPRIATED BY THE COMMONWEALTH PURSUANT TO THIS SUBSECTION TO
    17  THE DISTRICT ATTORNEY OF APPROPRIATE JURISDICTION AND, WHERE
    18  APPROPRIATE, TO THE ATTORNEY GENERAL.
    19     Section 6 8.  The act is amended by adding sections to read:   <--
    20     Section 434.2.  Assistance for Children Residing with
    21  Relatives Other than Their Natural Parents.--In no case shall
    22  duplicate payments be made on behalf of an aid to families with
    23  dependent children or general assistance child. Notwithstanding
    24  any provision of this act, children, formerly in the custody of
    25  parents or other caregivers who are no longer exercising care
    26  and control of the child, shall be eligible for expedited
    27  authorization of cash assistance benefits.
    28     Section 438.  Electronic Benefit Transfer System.--(a)  The
    29  department shall establish a Statewide electronic benefit
    30  transfer system for the purpose of issuing food stamps, aid to
    19950H0002B1519                 - 15 -

     1  families with dependent children and general assistance
     2  benefits.
     3     (b)  Food stamps, AFDC and general assistance benefits shall
     4  be issued through point-of-sale terminals and automated teller
     5  machines at locations throughout this Commonwealth with an
     6  industry-standard plastic access card.
     7     (C)  THE DEPARTMENT SHALL PROVIDE AN ANNUAL REPORT TO THE      <--
     8  GENERAL ASSEMBLY WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE
     9  COSTS OF IMPLEMENTING THIS SECTION, A COST-EFFECTIVENESS
    10  EVALUATION, THE RATE OF FRAUD AND ANY RECOMMENDATIONS FOR
    11  IMPROVING THE PROGRAM.
    12     (c) (D)  The department shall promulgate rules and             <--
    13  regulations to administer and enforce this section, INCLUDING,    <--
    14  BUT NOT LIMITED TO:
    15     (1)  PROVISIONS TO ENSURE ADEQUATE ACCESS TO THE ELECTRONIC
    16  BENEFITS TRANSFER SYSTEM TO RESIDENTS OF RURAL, URBAN AND
    17  SUBURBAN AREAS;
    18     (2)  PROVISIONS TO REDUCE THE RISK OF FRAUD AND THEFT OF
    19  BENEFITS; AND
    20     (3)  PROVISIONS TO LIMIT THE LIABILITY OF A RECIPIENT WHOSE
    21  ACCESS CARD IS STOLEN AND USED TO RECEIVE THE RECIPIENT'S
    22  BENEFITS.
    23     SECTION 481.1.  PENALTY FOR FAILURE TO APPEAR AT CRIMINAL
    24  COURT PROCEEDING.--ANY PERSON RECEIVING ANY FORM OF ASSISTANCE
    25  UNDER THIS ARTICLE WHO FAILS, AS A DEFENDANT, TO APPEAR AT A
    26  CRIMINAL COURT PROCEEDING WHEN ISSUED A SUMMONS SHALL BE
    27  DISQUALIFIED FROM RECEIVING ASSISTANCE UNTIL SUCH TIME AS THAT
    28  PERSON COMPLIES WITH THE SUMMONS. THE COURT SHALL PROVIDE TO THE
    29  DEPARTMENT LISTINGS OF ALL DEFENDANTS FAILING TO APPEAR IN
    30  RESPONSE TO A SUMMONS. THE DEPARTMENT SHALL PROVIDE THE LISTINGS
    19950H0002B1519                 - 16 -

     1  TO COUNTY BOARDS OF ASSISTANCE.
     2     Section 7 9.  Article IV of the act is amended by adding a     <--
     3  subarticle to read:
     4                             ARTICLE IV
     5                         PUBLIC ASSISTANCE
     6                                 * * *
     7                        (n)  Voucher Program
     8     Section 494.  Definitions.--As used in this subarticle:
     9     "Insurer" means:
    10     (1)  Any insurance company, association or reciprocal,
    11  nonprofit hospital plan corporation.
    12     (2)  A nonprofit professional health service plan.
    13     (3)  A health maintenance organization organized and
    14  regulated under the act of December 29, 1972 (P.L.1701, No.364),
    15  known as the "Health Maintenance Organization Act."
    16     (4)  A risk-assuming preferred provider organization
    17  organized and regulated under the act of May 17, 1921 (P.L.682,
    18  No.284), known as "The Insurance Company Law of 1921."
    19     (5)  A preferred provider with a "health management
    20  gatekeeper" role for primary care physicians organized and
    21  regulated as a health services corporation or a preferred
    22  provider organization subject to the provisions of section 630
    23  of "The Insurance Company Law of 1921."
    24     (6)  A fraternal benefit society subject to the provisions of
    25  the act of December 14, 1992 (P.L.835, No.134), known as the
    26  "Fraternal Benefit Societies Code."
    27     "Program" means a publicly financed voucher program providing
    28  access to privately delivered health insurance coverage for
    29  eligible medical assistance recipients.
    30     Section 494.1.  Voucher Program.--(a)  Following Federal
    19950H0002B1519                 - 17 -

     1  approval where necessary, the department shall establish a
     2  three-year demonstration voucher program within three geographic
     3  regions representing rural, suburban and urban populations to
     4  provide, in a cost-effective manner, access to privately
     5  delivered health insurance coverage for residents of this
     6  Commonwealth who qualify for benefits under section 441.1, other
     7  than nursing facility care programs and the intermediate care
     8  facility programs for the mentally retarded AND PRESCRIPTION      <--
     9  DRUG BENEFITS. ALL HEALTH CARE SERVICES SHALL, WHEN AVAILABLE,
    10  BE PROVIDED WITHIN THE DESIGNATED REGION.
    11     (b)  The department through a competitive bidding process in
    12  each region shall select three insurers for that region to
    13  participate in the pilot program.
    14     Section 494.2.  Issuance of Proof of Eligibility.--If the
    15  department determines that a person meets the eligibility
    16  requirements set forth under section 441.1, the department shall
    17  issue that person proof of eligibility, which entitles the
    18  person to coverage under any health insurance or health care
    19  policy or contract, offered in accordance with this subarticle.
    20     Section 494.3.  Offering of Policies and Contracts.--If
    21  coverage is issued to the individual, policyholder or contract
    22  holder, the insurer shall submit the proof of eligibility and a
    23  request for reimbursement of premium to the department.
    24     Section 494.4.  Standards Applicable to the Policies and
    25  Contracts.--The health insurance or health care policies and
    26  contracts for which insurers are eligible shall be provided in
    27  accordance with the following conditions:
    28     (1)  The cost of the policies and contracts shall not exceed
    29  ninety percent of the average fee-for-service reimbursement made
    30  on behalf of medical assistance recipients in that category of
    19950H0002B1519                 - 18 -

     1  eligibility FOR INPATIENT AND OUTPATIENT CARE. PRESCRIPTIONS      <--
     2  WOULD CONTINUE TO BE COVERED UNDER THE PRESENT FEE-FOR-SERVICE
     3  REBATE SYSTEM.
     4     (2)  The policies and contracts are not subject to any
     5  previous State mandatory benefits, EXCEPT DRUG AND ALCOHOL        <--
     6  SERVICES REQUIRED UNDER SECTIONS 2334 AND 2335 OF THE ACT OF
     7  APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS "THE ADMINISTRATIVE
     8  CODE OF 1929."
     9     (3)  Each policy and contract must include, but not be
    10  limited to, a combined maximum of eighteen visits per fiscal      <--
    11  year for the following visits to:
    12     (i)  (A)  A physician's office.
    13     (B)  A chiropractor's office.
    14     (C)  A podiatrist's office.
    15     (D)  An optometrist's office.
    16     (E)  A certified registered nurse practitioner's office.
    17     (F)  An independent clinic.
    18     (G)  A family planning clinic.
    19     (H)  A rural health clinic.
    20     (I)  A general and rehabilitation hospital clinic.
    21     (J)  A federally qualified health center.
    22     (ii)  Home health care, limited to thirty visits per fiscal
    23  year.
    24     (iii)  Medical rehabilitation hospital care, limited to
    25  thirty days of inpatient care per fiscal year.
    26     (iv)  Drug and alcohol hospital care, limited to thirty days
    27  of inpatient care per fiscal year.
    28     (v)  Emergency room care services, limited to emergency
    29  situations.
    30     (vi)  Laboratory and X-ray services, including mammography.
    19950H0002B1519                 - 19 -

     1     (vii)  Dental services, limited to surgical procedures and
     2  emergency services, including medically necessary palliative
     3  treatment, and diagnostics, restorations, or extractions related
     4  to the need for palliative treatment.
     5     (viii)  Inpatient hospital services other than services in an
     6  institution for tuberculosis or mental illness.
     7     (ix)  Outpatient hospital services.
     8     (x)  Early and periodic screening, diagnosis and treatment
     9  (EPSDT) services, limited to individuals under twenty-one years
    10  of age.
    11     (xi)  Ambulance services, limited to medically necessary
    12  emergency transportation.
    13     (xii)  Specific legend drugs identified by the department,
    14  limited to a maximum of three prescriptions or refills per
    15  month, in the following categories:
    16     (A)  Anti-infectives, including oral, parenteral, topical,
    17  ophthalmic, otic, vaginal or rectal products containing
    18  antibiotics, antifungal, sulfonamides, antimalarial
    19  preparations, antituberculous agents, amebicides, antiviral
    20  agents, leprostatics, anthelmintics and urinary anti-infectives,
    21  either alone or in combination with other drugs.
    22     (B)  Cardiovascular preparations, including single entity or
    23  combination products containing diuretics, cardiac glycosides,
    24  antianginal agents, antiarrhythmic agents, channel calcium
    25  blocking agents, peripheral vasodilators, beta-adrenergic
    26  blocking agents, alpha/beta-adrenergic blocking agents,
    27  antihypertensives, antihyperlipidemics, antiplatelet agents,
    28  coagulants and anticoagulants.
    29     (C)  Antidiabetic agents.
    30     (D)  Anticonvulsants.
    19950H0002B1519                 - 20 -

     1     (E)  Psychotherapeutic drugs, including forms of antianxiety
     2  agents, antidepressants and antipsychotic agents.
     3     (F)  Antineoplastic agents.
     4     (G)  Antiglaucoma agents, including oral and ophthalmic
     5  products.
     6     (H)  Antiparkinson agents.
     7     (I)  Family planning drugs.
     8     (J)  Acquired immune deficiency syndrome (AIDS) specific
     9  drugs.
    10     (K)  Asthma specific drugs, including oral and inhalation
    11  bronchodilators and antiasthmatic combinations.
    12     (L)  Ulcer medications, limited to oral and parenteral forms
    13  of histamine H2 antagonists, misoprostol, omeprazole and
    14  sulcralfate.
    15     (M)  Pain medication, including oral, parenteral, rectal and
    16  topical products of analgesics, anti-inflammatory agents and
    17  antirheumatic agents.
    18     (N)  Insulin.
    19     (O)  All medically necessary childhood immunizations.
    20     (xiii)  Inpatient psychiatric care.
    21     (xiv)  Medical equipment, supplies, prostheses, orthoses and
    22  appliances. THE FOLLOWING BENEFITS:                               <--
    23     (I)  INPATIENT/OUTPATIENT HOSPITAL SERVICES.
    24     (II)  RURAL HEALTH CLINIC SERVICES.
    25     (III)  LABORATORY AND X-RAY SERVICES, INCLUDING MAMMOGRAPHY.
    26     (IV)  NURSE PRACTITIONERS' SERVICE.
    27     (V)  HOME HEALTH SERVICES FOR INDIVIDUALS TWENTY-ONE YEARS OF
    28  AGE AND OLDER.
    29     (VI)  FAMILY PLANNING SERVICES AND SUPPLIES.
    30     (VII)  PHYSICIANS' SERVICES.
    19950H0002B1519                 - 21 -

     1     (VIII)  NURSE-MIDWIFE SERVICES.
     2     (IX)  THIRTY DAYS' INPATIENT CARE COVERAGE FOR MENTAL HEALTH,
     3  MENTAL RETARDATION, SUBSTANCE ABUSE. INTERMEDIATE CARE COVERAGE
     4  MAY BE SUBSTITUTED FOR INPATIENT CARE ON A FOUR DAYS FOR EACH
     5  INPATIENT-DAY BASIS.
     6     (X)  COVERAGE FOR PRESCRIPTION DRUGS, INCLUDING ALL MEDICALLY
     7  NECESSARY CHILDHOOD IMMUNIZATIONS.
     8     (XI)  PRENATAL CARE COVERAGE, INCLUDING EARLY AND PERIODIC
     9  SCREENING, DIAGNOSIS AND TREATMENT SERVICES, LIMITED TO
    10  INDIVIDUALS TWENTY YEARS OF AGE AND YOUNGER.
    11     (4)  EVERY EFFORT SHALL BE MADE TO INCLUDE THE FOLLOWING
    12  BENEFITS:
    13     (I)  VISITS TO:
    14     (A)  A CHIROPRACTOR'S OFFICE.
    15     (B)  A PODIATRIST'S OFFICE.
    16     (C)  AN OPTOMETRIST'S OFFICE.
    17     (II)  DENTAL SERVICES, LIMITED TO SURGICAL PROCEDURES AND
    18  EMERGENCY SERVICES, INCLUDING MEDICALLY NECESSARY PALLIATIVE
    19  TREATMENT, AND DIAGNOSTICS, RESTORATIONS, OR EXTRACTIONS RELATED
    20  TO THE NEED FOR PALLIATIVE TREATMENT.
    21     (III)  AMBULANCE SERVICES, LIMITED TO MEDICALLY NECESSARY
    22  EMERGENCY TRANSPORTATION.
    23     (4) (5)  The insurer shall not impose any waiting period for   <--
    24  benefits, or otherwise reduce or restrict benefits, for any
    25  claim that is the result of a high-risk condition.
    26     (5) (6)  The insurer shall refund to the insured a portion of  <--
    27  the premium for coverage of an eligible person if the person
    28  locates any item or service, which item or service was not
    29  received by or rendered to the person. Every insurer that agrees
    30  to participate shall document that it has a utilization review
    19950H0002B1519                 - 22 -

     1  process and a claims audit process whereby a patient may
     2  challenge a questionable item or service. The insurance company
     3  would be allowed to collect this amount from the health care
     4  provider.
     5     Section 494.5.  Reimbursement of Insurers.--Within thirty
     6  days after receipt of a valid proof of eligibility and request
     7  for reimbursement from an insurer, the department shall issue
     8  payment to the insurer in the amount of the premium.
     9     Section 494.6.  Duties of Department.--The department shall:
    10     (1)  Administer and implement the program.
    11     (2)  Monitor the operation of the program.
    12     (3)  Disseminate to the insurer and to the public information
    13  concerning the program and the persons eligible to receive
    14  benefits under the program.
    15     (4)  Implement a system to provide information and guidance
    16  to all persons eligible under the program relative to the
    17  program's procedures and the selection of the most appropriate
    18  benefits under a health insurance or health care policy or
    19  contract.
    20     (5)  Implement a system whereby a portion of the premium for
    21  coverage of an eligible person shall be refunded by the insurer
    22  to the person if the person locates any item or service, which
    23  item or service was not received by or rendered to the person.
    24  The insurer shall be allowed to collect this amount from the
    25  health care provider.
    26     (6)  Continuously evaluate the program. The department shall
    27  be required to contract for and complete an analysis of the
    28  pilot program, measuring its delivery of and access to , ACCESS   <--
    29  TO AND AVAILABILITY OF quality health care in a cost-effective
    30  manner. A report on the evaluation shall be submitted to the
    19950H0002B1519                 - 23 -

     1  Governor and the General Assembly detailing the findings and
     2  recommendations of the evaluation at the close of the three-year
     3  program. The report shall include, but not be limited to, the
     4  following:
     5     (i)  Cost-effectiveness of the pilot project as compared to
     6  the current medical assistance program for both cost of care and
     7  administration.
     8     (ii)  Improvement in access to AND AVAILABILITY OF the health  <--
     9  care delivery system.
    10     (iii)  Maintenance of or improvement of the standard of
    11  quality care delivered to this population.
    12     Section 494.7.  Employer Buy-in.--Employers who hire current
    13  medical assistance voucher recipients shall be permitted to
    14  provide health care coverage for the employe by buying into the
    15  remaining term of the medical assistance recipient's health
    16  plan. The amount of the plan would be prorated for the number of
    17  months DAYS remaining in the current year of coverage.            <--
    18     Section 494.8.  Employer Responsibility.--If an employer
    19  offers health care coverage to employes, the employer shall
    20  extend coverage to, or continue coverage of, an employe or an
    21  employe's dependents who are eligible to receive benefits
    22  provided under this subarticle.
    23     Section 494.9.  Rules and Regulations.--The department shall
    24  promulgate rules and regulations to carry out this subarticle.
    25  These shall include, but not be limited to, provisions relating
    26  to the development of the program, procedures for determining
    27  eligibility under the program, the specific geographic regions
    28  chosen, issuance of proof of eligibility, determinations of
    29  reimbursable premium amount and procedures for the reimbursement
    30  of insurers. These regulations shall be promulgated within six
    19950H0002B1519                 - 24 -

     1  months of the enactment of this legislation.
     2     SECTION 494.10.  CONFIDENTIALITY OF MEDICAL INFORMATION.--ALL  <--
     3  INFORMATION PERTAINING TO AN INDIVIDUAL'S MEDICAL CARE SHALL BE
     4  CONFIDENTIAL, EXCEPT THE DEPARTMENT SHALL HAVE ACCESS TO
     5  INFORMATION NECESSARY TO CARRY OUT ITS DUTIES.
     6     Section 8 10.  Within 90 days of the effective date of this    <--
     7  act, the Department of Public Welfare shall submit to the
     8  appropriate Federal agency a request for any and all waivers of
     9  Federal law and regulations and for any other approvals by the
    10  Federal Government necessary for the implementation of the
    11  programs added by this act. It shall be the obligation of the
    12  Department of Public Welfare to enter into good faith
    13  negotiations with the appropriate Federal authorities and to
    14  make every effort to obtain the necessary Federal waivers and
    15  approvals.
    16     SECTION 11.  THE DEPARTMENT OF PUBLIC WELFARE SHALL APPLY TO   <--
    17  THE FEDERAL GOVERNMENT FOR A WAIVER TO ENSURE THAT PERSONS WHO
    18  ARE UNEMPLOYED ARE NOT FORCED TO LIQUIDATE ANY PENSION FUNDS
    19  WHICH THEY MAY HAVE ALREADY ACQUIRED AND TO WHICH THEY ARE
    20  OTHERWISE ENTITLED BEFORE RECEIVING BENEFITS UNDER THIS ACT,
    21  INCLUDING, BUT NOT LIMITED TO, FOOD STAMPS, WELFARE PAYMENTS,
    22  MEDICAID AND SUPPLEMENTAL SECURITY INCOME (SSI) PAYMENTS.
    23     Section 9 12.  All references in this act to the Community     <--
    24  Work Program shall be deemed to be references to the Workfare
    25  Program.
    26     Section 10 13.  This act shall take effect as follows:         <--
    27         (1)  The amendment of section 432.12 of the act shall
    28     take effect in ten months.
    29         (2)  The remainder of this act shall take effect in 60
    30     days.
    A17L67PJP/19950H0002B1519       - 25 -