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                                                      PRINTER'S NO. 3131

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2193 Session of 2008


        INTRODUCED BY CUTLER, BOYD, CLYMER, CREIGHTON, HERSHEY,
           HICKERNELL, MENSCH, MOYER, PICKETT, REED, ROSS, SONNEY, STERN
           AND TURZAI, JANUARY 23, 2008

        REFERRED TO COMMITTEE ON COMMERCE, JANUARY 23, 2008

                                     AN ACT

     1  Providing for Weatherization Assistance Program integrity;
     2     prescribing duties of the Department of Community and
     3     Economic Development; establishing the Office of Program
     4     Compliance for Weatherization Assistance; and providing for
     5     the powers and duties of the Auditor General.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the
    10  Weatherization Assistance Program Integrity Act.
    11  Section 2.  Scope of act.
    12     This act shall apply to the Weatherization Assistance Program
    13  and those entities that administer the program, including the
    14  Department of Community and Economic Development and the local
    15  agencies which receive grants from the Department of Community
    16  and Economic Development under the program. This act shall also
    17  apply to an individual who seeks or is provided assistance under
    18  the Weatherization Assistance Program.
    19  Section 3.  Definitions.

     1     The following words and phrases when used in this act shall
     2  have the meanings given to them in this section unless the
     3  context clearly indicates otherwise:
     4     "Department."  The Department of Community and Economic
     5  Development of the Commonwealth.
     6     "Grant."  Funds provided to a local agency by the Department
     7  of Community and Economic Development under the Weatherization
     8  Assistance Program.
     9     "Local agency."  An entity which receives a grant from the
    10  Department of Community and Economic Development under the
    11  Weatherization Assistance Program. The term includes a unit of
    12  county or local government. The term does not include an
    13  individual who seeks or is provided assistance under the
    14  Weatherization Assistance Program.
    15     "Office."  The Office of Program Compliance for
    16  Weatherization Assistance established under this act.
    17     "Program."  The Weatherization Assistance Program.
    18     "Secretary."  The Secretary of Community and Economic
    19  Development of the Commonwealth.
    20     "Significant discrepancy."  Information regarding assets,
    21  income, resources or status of an individual who seeks or is
    22  provided assistance under the Weatherization Assistance Program,
    23  derived from a database in section 4 which gives the Department
    24  of Community and Economic Development grounds to suspect that
    25  either:
    26         (1)  the individual is ineligible to participate in the
    27     Weatherization Assistance Program under Federal or State law;
    28     or
    29         (2)  the assets, income or resources of the individual
    30     are at least, in terms of dollar amount, 25% greater than the
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     1     dollar amount reflected in the information the Department of
     2     Community and Economic Development possesses about the
     3     individual with respect to the individual's assets, income or
     4     resources.
     5     "Status."  Being in the United States illegally, being dead,
     6  being an inmate in a prison or jail or being a fleeing felon.
     7  Section 4.  Assistance.
     8     (a)  Duties.--Within 180 days of the effective date of this
     9  section, the department shall do all of the following:
    10         (1)  Issue photographic identification cards to
    11     individuals who apply for and receive assistance under the
    12     program.
    13         (2)  Establish a computerized income eligibility
    14     verification system in order to eliminate duplication of
    15     assistance under the program and to deter fraud.
    16     (b)  Information.--The department shall require, as a
    17  condition of receiving assistance under the program, that an
    18  individual applying for or receiving assistance under the
    19  program must supply the individual's Social Security number and
    20  the Social Security numbers of the members of the individual's
    21  household. The department shall match the Social Security
    22  numbers with the following:
    23         (1)  Unearned income information maintained by the
    24     Internal Revenue Service.
    25         (2)  Employer quarterly reports of income and
    26     unemployment insurance benefit payment information maintained
    27     by the Commonwealth.
    28         (3)  Earned income information maintained by the Social
    29     Security Administration.
    30         (4)  Immigration status information maintained by the
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     1     United States Bureau of Citizenship and Immigration Services.
     2         (5)  Death register information maintained by the Social
     3     Security Administration.
     4         (6)  Prisoner information maintained by the Social
     5     Security Administration.
     6         (7)  Public housing and Section 8 payment information
     7     maintained by the Department of Housing and Urban
     8     Development.
     9         (8)  National fleeing felon information maintained by the
    10     Federal Bureau of Investigation.
    11         (9)  Wage reporting and similar information maintained by
    12     contiguous states.
    13         (10)  Beneficiary Data Exchange (BENDEX) Title H database
    14     maintained by the Social Security Administration.
    15         (11)  Beneficiary Earnings Exchange Report (BEER)
    16     database maintained by the Social Security Administration.
    17         (12)  State New Hire database maintained by the
    18     Commonwealth.
    19         (13)  National New Hire database maintained by the
    20     Federal Government.
    21         (14)  State Data Exchange (SDX) database maintained by
    22     the Social Security Administration.
    23         (15)  Veterans Benefits and Veterans Medical (PARIS)
    24     maintained by the Department of Veterans Affairs with
    25     coordination through the Department of Health and Human
    26     Services.
    27         (16)  Commonwealth day care subsidy payments maintained
    28     by the Commonwealth.
    29         (17)  The database of persons who currently hold a
    30     license, permit or certificate from a Commonwealth agency,
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     1     the cost of which exceeds $1,000.
     2         (18)  A database which is substantially similar to or a
     3     successor of a database set forth in paragraphs (1) through
     4     (17).
     5     (c)  System.--Notwithstanding any other provision of law, the
     6  income eligibility verification system shall be utilized for an
     7  individual at the time of application for assistance under the
     8  program and every time the individual or a member of the
     9  individual's household applies for assistance.
    10     (d)  Notification.--The department shall notify an individual
    11  applying for or receiving assistance of the requirement of
    12  providing a Social Security number for the individual and for
    13  each member of the individual's household at the time of
    14  application for assistance and as otherwise required under the
    15  provisions of this section.
    16     (e)  Review.--If a significant discrepancy results from a
    17  match between the Social Security number and one or more of the
    18  databases set forth in subsection (b), the department shall
    19  review the case and shall investigate the circumstances to
    20  confirm eligibility of the individual applying for or receiving
    21  assistance under the program utilizing the procedure set forth
    22  in subsection (f).
    23     (f)  Investigation.--The department shall institute the
    24  following procedure to investigate the circumstances of a
    25  significant discrepancy:
    26         (1)  If the information discovered under subsection (b)
    27     does not result in ineligibility or modification of the
    28     amount or type of assistance under the program, the
    29     department shall take no further action.
    30         (2)  If paragraph (1) does not apply and there is a
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     1     significant discrepancy, the individual applying for or
     2     receiving assistance under the program shall be given an
     3     opportunity to explain the significant discrepancy. The
     4     department shall provide written notice to the individual
     5     describing in sufficient detail the circumstances of the
     6     significant discrepancy, the opportunity to resolve the
     7     significant discrepancy, the manner in which it may be
     8     resolved and the consequences of failing to take action. The
     9     explanation of the individual may be given over the
    10     telephone, as set forth in subsection (i), in person or in
    11     writing. After receiving the explanation, the department may
    12     request additional documentation if it determines that there
    13     is a substantial risk of fraud.
    14         (3)  If the individual does not respond to the notice,
    15     the department may deny assistance under the program for
    16     failure to cooperate, in which case the department shall
    17     provide notice of intent to discontinue eligibility.
    18     Eligibility for assistance under the program shall not be
    19     reestablished until the significant discrepancy has been
    20     resolved.
    21         (4)  If the individual disagrees with the findings of the
    22     match between the Social Security number and one or more of
    23     the databases set forth in subsection (b), the department
    24     shall reinvestigate the matter. If the department finds that
    25     there has been an error, the department shall take immediate
    26     action to correct it, and no further action shall be taken.
    27     If, after investigation, the department determines that there
    28     is no error, the department shall determine the effect of the
    29     match and take appropriate action. Written notice of the
    30     department's action shall be given to the individual.
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     1         (5)  If the individual agrees with the findings of the
     2     match between the Social Security number of the individual or
     3     a Social Security number of a member of the individual's
     4     household and the database, the department shall determine
     5     the effect and take appropriate action. Written notice of the
     6     department's action shall be given to the individual.
     7         (6)  If the findings of a match between the Social
     8     Security number and the database result in no change in
     9     eligibility, the department shall take no further action.
    10     (g)  Discrepancy.--If a discrepancy which is not a
    11  significant discrepancy results between a Social Security number
    12  and a database set forth in subsection (b), the department may
    13  review the case and may investigate the circumstances to confirm
    14  eligibility of the individual applying for or receiving
    15  assistance under the program utilizing the procedure set forth
    16  in subsection (f).
    17     (h)  Discontinuation or modification.--
    18         (1)  In no case shall the department discontinue or
    19     modify the amount or type of assistance under the program
    20     solely as a result of a match between a Social Security
    21     number and one or more of the databases set forth in
    22     subsection (b).
    23         (2)  Nothing in this subsection shall be construed to
    24     limit the right of appeal provided by law.
    25     (i)  Telephone number.--The department shall establish a
    26  single Statewide toll-free telephone number and call center to
    27  be used by individuals applying for or receiving assistance
    28  under the program in order to resolve discrepancies. The call
    29  center shall have sufficient capacity and staff to promptly
    30  handle incoming telephone calls, and the department shall assign
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     1  sufficient staff to enable the department to make prompt
     2  determinations regarding eligibility under this section.
     3     (j)  Report.--No later than one year after the effective date
     4  of this section and every year thereafter, the department shall
     5  provide a written report to the Governor, the General Assembly
     6  and the State Inspector General detailing the results achieved
     7  under this section and the amount of case closures and savings
     8  that resulted.
     9     (k)  Application.--The following shall apply to an individual
    10  applying for or receiving assistance under the program:
    11         (1)  Subject to paragraph (2), for a county with only one
    12     local agency, an individual who is a resident of that county
    13     must apply for and receive assistance under the program from
    14     that local agency.
    15         (2)  Notwithstanding paragraph (1), an individual who
    16     lives in a county with only one local agency may apply for
    17     and receive assistance under the program from a local agency
    18     which is located in a county contiguous to the individual's
    19     county of residence if the local agency in the contiguous
    20     county is closer to the residence of the individual, by the
    21     most direct travel route, than the local agency in the county
    22     in which the individual resides.
    23         (3)  For a county with more than one local agency, an
    24     individual who is a resident of the county must apply for and
    25     receive assistance under the program from the local agency
    26     which is closest, by the most direct travel route, to the
    27     residence of the individual.
    28  Section 5.  Establishment of office.
    29     The Office of Program Compliance for Weatherization
    30  Assistance is hereby established within the department. The
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     1  office shall be administered by a director who shall be
     2  appointed by the Governor with the advice and consent of a
     3  majority of the members of the Senate. The director may hire
     4  professional and other staff as necessary to carry out the
     5  powers and duties set forth in section 6.
     6  Section 6.  Powers and duties.
     7     The office shall have the following powers and duties:
     8         (1)  To monitor the department's administration of the
     9     program and the performance of local agencies, including the
    10     adherence of local agencies with the provisions of this act.
    11     In fulfilling its duties under this paragraph, the office
    12     shall develop and enforce written standard operating
    13     procedures for local agencies, including the following:
    14             (i)  Procedures for ensuring crisis situations are
    15         remedied within 48 hours or within 18 hours if the crisis
    16         is life threatening. The office shall develop and enforce
    17         procedures so that local agencies employ temporary
    18         measures to ensure health and safety if it is impossible
    19         to remedy the crisis situation within 48 or 18 hours.
    20             (ii)  Procedures for handling applications for
    21         assistance under the program which ensure the most
    22         vulnerable applicants, including the disabled, the
    23         elderly and families with children, are served first.
    24             (iii)  Procedures for the handling of waiting lists.
    25             (iv)  Creation of a single application form for use
    26         by individuals applying for assistance under the program.
    27             (v)  The requirement that persons providing materials
    28         and services or conducting repairs under the program
    29         submit detailed invoices. The procedures must require
    30         that a person submit a detailed invoice which breaks down
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     1         the cost of labor, the cost of materials and other costs.
     2             (vi)  The requirement that before a person is paid by
     3         a local agency for providing materials and services or
     4         conducting repairs under the program that a detailed
     5         invoice is submitted in accordance with subparagraph (v)
     6         and that a final inspection by the local agency is
     7         conducted to ensure safety and quality.
     8             (vii)  Procedures for tracking complaints of
     9         individuals who apply for and receive assistance under
    10         the program and a procedure for remedying complaints.
    11             (viii)  Procedures for redetermining eligibility of
    12         individuals applying for or receiving assistance under
    13         the program every 12 months.
    14             (ix)  Procedures to ensure a standard bidding process
    15         for the provision of materials and services or conducting
    16         repairs under the program.
    17             (x)  Procedures to calculate the energy and monetary
    18         savings achieved on the part of individuals who receive
    19         assistance under the program.
    20             (xi)  Procedures to seek reimbursement from landlords
    21         when furnaces are replaced under the program.
    22             (xii)  Procedures which set forth the documentation
    23         necessary to support a local agency's request for a grant
    24         under the program.
    25             (xiii)  Procedures to require quarterly reports on
    26         the part of local agencies regarding expenditures under
    27         the program and individual cases of assistance provided
    28         under the program. In fulfilling its duties under this
    29         subparagraph, the office may require other information
    30         deemed relevant by the director from the local agency.
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     1             (xiv)  Procedures for ensuring that where more than
     2         one local agency is located within the same geographic
     3         area that the local agencies coordinate their efforts and
     4         do not provide materials or services or conduct repairs
     5         under the program with respect to the same dwellings.
     6             (xv)  Procedures which, in the discretion of the
     7         director, are relevant to the efficient and cost-
     8         effective administration of the program and proper
     9         oversight of local agencies.
    10         (2)  To reconcile grant expenditures of local agencies to
    11     grant requests made by local agencies and to reconcile
    12     expenditures of individual cases of assistance provided under
    13     the program.
    14         (3)  To conduct audits and reviews of the program and to
    15     do so in a manner which will allow an independent audit of
    16     the program. In fulfilling its duties under this paragraph,
    17     the office shall keep records electronically.
    18         (4)  To develop and implement a computerized system which
    19     permits integration between the department, the office and
    20     the local agencies. In fulfilling its duties under this
    21     paragraph, the office shall ensure that an integrated
    22     database is created so that information from each local
    23     agency regarding expenditures, crisis situations, waiting
    24     lists, and other information deemed by the director of the
    25     office to be relevant to the efficient and cost-effective
    26     administration of the program, be gathered, tracked,
    27     summarized and compiled in a report.
    28         (5)  To conduct inspections of local agencies. The office
    29     shall conduct at least one inspection of each local agency
    30     every year. In addition, the office shall conduct unannounced
    20080H2193B3131                 - 11 -     

     1     inspections on an ongoing and random basis. The office shall
     2     conduct unannounced inspections of local agencies when the
     3     office suspects that the program is not being administered
     4     properly and there is a potential for fraud.
     5         (6)  To create and implement written policies and
     6     procedures for use by staff of local agencies regarding the
     7     requirements of this act. In fulfilling its duties under this
     8     paragraph, the office shall conduct training sessions for
     9     managers, senior staff and other staff of a local agency
    10     regarding the provisions of this act.
    11         (7)  To create and implement written policies and
    12     procedures for employees within the office who are
    13     responsible for monitoring the activities of the local
    14     agencies under this act, including procedures:
    15             (i)  For reviewing applications filed by individuals
    16         seeking assistance under the program for completeness and
    17         accuracy.
    18             (ii)  For reviewing grant requests and other
    19         documents filed with the department on the part of local
    20         agencies.
    21             (iii)  For reviewing invoices from persons providing
    22         materials and services or conducting repairs under the
    23         program for completeness and accuracy.
    24             (iv)  For reconciling grant requests from local
    25         agencies with expenditures of local agencies under the
    26         program.
    27             (v)  For conducting announced and unannounced
    28         inspections of local agencies.
    29             (vi)  For conducting inspections of dwellings of
    30         individuals who apply for and receive assistance under
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     1         the program.
     2             (vii)  To develop a sampling methodology with respect
     3         to reviewing the activity of local agencies.
     4             (viii)  To evaluate the handling of waiting lists by
     5         local agencies.
     6             (ix)  To assess whether local agencies are ensuring
     7         that the most vulnerable, including the disabled, elderly
     8         and families with children, receive assistance under the
     9         program first.
    10             (x)  Which, in the discretion of the director, are
    11         deemed relevant to the efficient and cost-effective
    12         administration of the program and proper oversight of the
    13         local agencies.
    14         (8)  To require local agencies to submit, on a quarterly
    15     and yearly basis, a report of expenditures, complaints,
    16     length of time to complete weatherization, status of waiting
    17     lists and other information deemed relevant by the director
    18     of the office to the efficient and cost-effective
    19     administration of the program and proper oversight of local
    20     agencies.
    21         (9)  To recommend and require changes regarding the
    22     performance of a local agency when it finds a local agency is
    23     not operating properly or in conformity with this act or with
    24     Federal regulations.
    25         (10)  To recommend to the secretary changes regarding the
    26     administration of the program by the department.
    27         (11)  To refer cases to the Attorney General and the
    28     State Inspector General when the director of the office
    29     believes fraud exists.
    30         (12)  To report to the Governor, the General Assembly,
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     1     the State Inspector General and the secretary, every two
     2     years regarding its duties, including instances of fraud and
     3     potential for fraud, and to recommend changes to the program.
     4  Section 7.  Powers and duties of Auditor General.
     5     (a)  Conduct of performance audit.--The Auditor General shall
     6  conduct a thorough performance audit of the manner in which the
     7  department and the office are implementing this act and the
     8  program which shall be completed within one year after the
     9  effective date of this section. Thereafter, the Auditor General
    10  shall conduct such performance audits at intervals of not less
    11  than five years from the date of completing the immediately
    12  preceding performance audit required under this subsection. The
    13  department shall make all records, documents and other
    14  information available for the inspection of the Auditor General
    15  that reasonably relate to the conduct of the performance audit
    16  prescribed in this section.
    17     (b)  Content of audit.--The audit shall address in detail the
    18  adequacy of the performance of the department and the office
    19  with respect to each of the administrative and regulatory
    20  activities described in sections 4 and 6 and shall make detailed
    21  recommendations to the office, the department, the Governor and
    22  the General Assembly for remedial and regulatory changes in the
    23  program that will further the purposes of this act.
    24     (c)  Implementation of recommendations.--The office shall
    25  implement each of the recommendations in the performance audit
    26  unless the director and the secretary jointly make a written
    27  finding setting out in detail for each recommendation the
    28  specific reasons why the director and the secretary have jointly
    29  refused to implement that recommendation of the Auditor General.
    30     (d)  Transmission of audit reports and written findings of
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     1  secretary and director; public access.--A copy of each
     2  performance audit conducted pursuant to subsection (a) and each
     3  written finding made pursuant to subsection (c) shall be
     4  transmitted to the department, the office, the Governor, the
     5  State Inspector General, the Attorney General, the chairman and
     6  minority chairman of the Appropriations Committee of the Senate,
     7  the chairman and minority chairman of the Appropriations
     8  Committee of the House of Representatives, the chairman and
     9  minority chairman of the Public Health and Welfare Committee of
    10  the Senate and the chairman and minority chairman of the Health
    11  and Human Services Committee of the House of Representatives. A
    12  copy of the performance audit and the written findings rejecting
    13  any recommendations shall be made available for public
    14  inspection and copying, and the written findings of the
    15  secretary and the director shall be published as a notice in the
    16  Pennsylvania Bulletin.
    17     (e)  Transmission of information or fraudulent activities.--
    18  The Auditor General shall transmit any information uncovered
    19  during the conduct of the performance audit relating to fraud to
    20  the department, the office, the Attorney General and the State
    21  Inspector General.
    22     (f)  Performance audits by Legislative Budget and Finance
    23  Committee.--The Legislative Budget and Finance Committee shall
    24  conduct a thorough performance audit of the manner in which the
    25  department, the office and the Auditor General are implementing
    26  this act and the program which shall be completed within three
    27  years after the effective date of this section. Thereafter, the
    28  Legislative Budget and Finance Committee shall conduct such
    29  performance audits at intervals of not less than ten years from
    30  the date of completing the immediately preceding performance
    20080H2193B3131                 - 15 -     

     1  audit required under this subsection. A copy of each performance
     2  audit conducted by the Legislative Budget and Finance Committee
     3  shall be transmitted to the public officials specified in
     4  subsection (d).
     5  Section 8.  Duties of local agencies.
     6     A local agency shall have the following duties under this
     7  act:
     8         (1)  To comply with this act, including the written
     9     standard operating procedures set forth in section 6(1).
    10         (2)  To implement changes in its operations recommended
    11     by the office as set forth in section 6(9).
    12         (3)  To cooperate with the department and the office
    13     during inspections and at all other times.
    14         (4)  To conduct final inspections of dwellings which have
    15     been provided materials or services or have been repaired
    16     under the program before payment is made to persons providing
    17     materials and services or conducting repairs under the
    18     program.
    19  Section 9.  Training materials.
    20     Within 180 days of the effective date of this section, the
    21  department or the office shall create and develop training
    22  materials and manuals regarding proper administration of the
    23  program and the requirements of this act to be used by local
    24  agencies and shall distribute the materials and manuals to the
    25  local agencies. The department or the office shall conduct
    26  training sessions for managers, senior staff and other staff of
    27  the local agencies responsible for the administration of the
    28  program.
    29  Section 10.  Report.
    30     Every 60 days, the secretary shall submit a report to the
    20080H2193B3131                 - 16 -     

     1  President pro tempore of the Senate, the majority chairperson
     2  and minority chairperson of the Public Health and Welfare
     3  Committee of the Senate, the Speaker of the House of
     4  Representatives and the majority chairperson and minority
     5  chairperson of the Health and Human Services Committee of the
     6  House of Representatives regarding the progress made with
     7  respect to the requirements of sections 4 and 9. The secretary
     8  shall submit the report for publication in the Pennsylvania
     9  Bulletin.
    10  Section 11.  Effective date.
    11     This act shall take effect immediately.













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