THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY CUTLER, BOYD, CLYMER, GINGRICH, HENNESSEY, HICKERNELL, PICKETT, ROAE, ROSS, VULAKOVICH AND WATSON, JUNE 8, 2009

REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, JUNE 8, 2009  

AN ACT

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

act to consolidate, editorially revise, and codify the public

welfare laws of the Commonwealth," further providing for the

Low Income Home Energy Assistance Program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of June 13, 1967 (P.L.31, No.21), known

as the Public Welfare Code, is amended by adding a section to

read:

Section 215.  Low Income Home Energy Assistance Program.--(a)

Within one hundred eighty days of the effective date of this

subsection, in administering the program, the department shall

do all of the following:

(1)  Issue photographic identification cards to grantees.

(2)  Establish a computerized income eligibility verification

system as set forth in subsection (b) in order to eliminate

duplication of grants and to deter fraud.

(b)  The department shall require that as a condition of

receiving a grant, the grantee must supply the grantee's social

security number and the social security numbers of all of the

members of the grantee's household. The department shall match

the social security numbers with the following:

(1)  Unearned income information maintained by the Internal

Revenue Service.

(2)  Employer quarterly reports of income and unemployment

insurance benefit payment information maintained by the

Commonwealth.

(3)  Earned income information maintained by the Social

Security Administration.

(4)  Immigration status information maintained by the

Citizenship and Immigration Services.

(5)  Death register information maintained by the Social

Security Administration.

(6)  Prisoner information maintained by the Social Security

Administration.

(7)  Public housing and "Section 8" payment information

maintained by the Department of Housing and Urban Development.

(8)  National fleeing felon information maintained by the

Federal Bureau of Investigation.

(9)  Wage reporting and similar information maintained by

states contiguous to this Commonwealth.

(10)  Beneficiary Data Exchange (BENDEX) Title H database

maintained by the Social Security Administration.

(11)  Beneficiary Earnings Exchange Report (BEER) database

maintained by the Social Security Administration.

(12)  State New Hire database maintained by the Commonwealth.

(13)  National New Hire database maintained by the Federal

Government.

(14)  State Data Exchange (SDX) database maintained by the

Social Security Administration.

(15)  Veterans Benefits and Veterans Medical (PARIS)

maintained by the Department of Veterans Affairs with

coordination through the Department of Health and Human

Services.

(16)  Day care subsidy payments maintained by the

Commonwealth.

(17)  Program reporting utility expenses maintained by the

Commonwealth.

(18)  The database of all persons who currently hold a

license, permit or certificate from a Commonwealth agency the

cost of which exceeds one thousand dollars ($1,000).

(19)  A database which is substantially similar to or a

successor of a database set forth in this subsection.

(c)  Notwithstanding any provision of law to the contrary,

the income eligibility verification system shall be utilized for

a grantee at the time of application for a grant and every time

the grantee or a member of the grantee's household applies for a

grant.

(d)  The department shall notify each grantee of the

requirement of providing a social security number for the

grantee and for each member of the grantee's household at the

time of application for a grant and as otherwise required under

the provisions of this section.

(e)  If there is a significant discrepancy, the department

shall review the case and shall investigate the circumstances to

confirm eligibility of the grantee utilizing the procedure set

forth in subsection (f).

(f)  The department shall institute the following procedure

to investigate the circumstances of a significant discrepancy:

(1)  If the information discovered under subsection (b) does

not result in ineligibility or modification of the amount or

type of grant, the department shall take no further action.

(2)  If paragraph (1) does not apply and there is a

significant discrepancy, the grantee shall be given an

opportunity to explain the significant discrepancy. The

department shall provide written notice to the grantee

describing in sufficient detail the circumstances of the

significant discrepancy, the opportunity to resolve it, the

manner in which it may be resolved and the consequences of

failing to take action. The explanation of the grantee may be

given over the telephone, as set forth in subsection (i), in

person or in writing. After receiving the explanation, the

department may request additional documentation if it determines

that there is a substantial risk of fraud.

(3)  If the grantee does not respond to the notice, the

department shall deny the grant for failure to cooperate, in

which case the department shall provide notice of intent to

discontinue the grant. Eligibility for a grant shall not be

reestablished until the significant discrepancy has been

resolved.

(4)  If the grantee disagrees with the findings of the match

between the social security number and the database, the

department shall reinvestigate the matter. If the department

finds that there has been an error, the department shall take

immediate action to correct it; and no further action shall be

taken. If, after investigation, the department determines that

there is no error, the department shall determine the effect of

the match on the case and take appropriate action. Written

notice of the department's action shall be given to the grantee.

(5)  If the grantee agrees with the findings of the match

between the social security number and the database, the

department shall determine the effect on the case and take

appropriate action. Written notice of the department's action

shall be given to the grantee.

(6)  If the findings of a match between the social security

number and the database result in no change in eligibility or

overpayment, the department shall take no further action.

(g)  If a discrepancy which is not a significant discrepancy

results between a grantee's social security number or a social

security number of a member of the grantee's household and a

database set forth in subsection (b), the department may review

the case and may investigate the circumstances to confirm

eligibility of the grantee utilizing the procedure set forth in

subsection (f).

(h)  In no case shall the department discontinue or modify

the amount or type of grant solely as a result of a match

between a grantee's social security number and a database.

Nothing in this subsection shall be construed to limit the right

of appeal provided by law.

(i)  Within one hundred eighty days of the effective date of

this subsection, the department shall establish a single

Statewide toll-free telephone number and call center to be used

by grantees to resolve discrepancies. The call center shall have

sufficient capacity and staff to promptly handle incoming

telephone calls, and the department shall assign sufficient

numbers of caseworkers to enable the department to make prompt

eligibility determinations under this section.

(j)  No later than one year after the effective date of this

section and every year thereafter, the department shall provide

a written report to the Governor, the General Assembly and the

State Inspector General detailing the results achieved under

this section and the amount of case closures and savings that

resulted.

(k)  The following apply:

(1)  Subject to paragraph (2), for a county with only one

county assistance office or crisis contractor, a grantee who is

a resident of that county must apply for a grant and receive a

grant from that county assistance office or crisis contractor.

(2)  Notwithstanding paragraph (1), a grantee who lives in a

county with only one county assistance office or crisis

contractor may apply for a grant and receive a grant from a

county assistance office or crisis contractor which is located

in a county contiguous to the grantee's county of residence if

the county assistance office or crisis contractor in the

contiguous county is closer to the residence of the grantee, by

the most direct travel route, than the county assistance office

or crisis contractor in the county in which the grantee resides.

(3)  For a county with more than one county assistance office

or crisis contractor, a grantee who is a resident of the county

must apply for and receive a grant from the county assistance

office or crisis contractor which is closest, by the most direct

travel route, to the residence of the grantee.

(l)  There is hereby established within the department, the

Office of Program Compliance for the Low Income Home Energy

Assistance Program. The office shall be administered by a

director who shall be appointed by the Governor with the advice

and consent of a majority of the members of the Senate. The

director may hire professional and other staff as necessary to

carry out the powers and duties of the office as set forth in

subsection (m).

(m)  The Office of Program Compliance for the Low Income Home

Energy Assistance Program shall have the following powers and

duties:

(1)  To monitor the department's administration of the

program, including the performance of the county assistance

offices and the crisis contractors. In fulfilling its duties

under this paragraph, the office shall review the procedure for

approving applications, rejecting applications, inputting data,

training of staff of the county assistance offices and crisis

contractors, and overseeing the actions of staff of the county

assistance offices and crisis contractors on the part of

managers and other senior staff of the county assistance offices

and crisis contractors. In addition, the office shall assess the

adequacy and use of the computer system used to administer the

program.

(2)  To recommend and require changes regarding the

performance of the department, the county assistance offices and

the crisis contractors regarding the administration of the

program.

(3)  To receive and review reports submitted to the Office of

Income Maintenance regarding the program by the county

assistance offices and the crisis contractors.

(4)  To audit applications and rejected applications and

other material related to the program and conduct other audit

functions in order to determine whether the program is being

administered properly. In fulfilling the requirements of this

paragraph, the office shall select applications and rejected

applications and other material to be audited. In no case may

the county assistance office or the crisis contractor choose the

applications or rejected applications or other material to be

audited by the office.

(5)  To conduct inspections of county assistance offices and

crisis contractors. The office shall conduct an inspection of

one quarter of the county assistance offices and crisis

contractors at least once every four years. The office shall

conduct unannounced inspections of county assistance offices and

crisis contractors on an ongoing and random basis. The offices

shall conduct unannounced inspections of county assistance

offices and crisis contractors when the office suspects that the

program is not being administered properly and there is a

potential for fraud.

(6)  To conduct audits and reviews of the program in such a

way as to allow an independent audit by the Auditor General or

other auditing agency.

(7)  To keep records of its duties in an electronic form.

(8)  To refer cases to the Attorney General or the State

Inspector General when the director believes fraud exists in the

program.

(9)  To report to the Governor, State Inspector General,

secretary and the General Assembly every two years regarding its

duties, including instances of fraud and the potential for

fraud, and to recommend changes to the program.

(n)  Within one hundred eighty days of the effective date of

this subsection, the department shall create and develop

training materials and manuals regarding the proper

administration of the program and distribute the materials and

manuals to each county assistance office and crisis contractor.

The department shall conduct training sessions for managers,

senior staff, and other staff of the county assistance office

and crisis contractors responsible for the administration of the

program.

(o)  Every sixty days the secretary shall submit a report to

the Governor, the President pro tempore of the Senate, the

majority chairman and minority chairman of the Public Health and

Welfare Committee of the Senate and the majority chairman and

minority chairman of the Health and Human Services Committee of

the House of Representatives regarding the progress made with

respect to the department's duties under subsection (n). In

addition, the report shall be published in the Pennsylvania

Bulletin.

(p)  The Auditor General shall have the following powers and

duties:

(1)  The Auditor General shall conduct a thorough performance

audit of the manner in which the department and the office are

implementing this act and the program which shall be completed

within one year after the effective date of this section.

Thereafter, the Auditor General shall conduct such performance

audits at intervals of not less than five years from the date of

completing the immediately preceding performance audit required

under this paragraph. The department shall make all records,

documents and other information available for the inspection of

the Auditor General that reasonably relate to the conduct of the

performance audit prescribed in this section.

(2)  The audit shall address, in detail, the adequacy of the

performance of the department and the office with respect to

each of the administrative and regulatory activities described

in this section and shall make detailed recommendations to the

office, the department, the Governor and the General Assembly

for remedial and regulatory changes in the program that will

further the purposes of this act.

(3)  The office shall implement each of the recommendations

in the performance audit unless the director and the secretary

jointly make a written finding setting out in detail for each

recommendation the specific reasons why the director and the

secretary have jointly refused to implement any recommendation

of the Auditor General.

(4)  A copy of each performance audit conducted pursuant to

paragraph (1) and each written finding made pursuant to

paragraph (3) shall be transmitted to the department, the

office, the Governor, the State Inspector General, the Attorney

General, the chair and minority chair of the Appropriations

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

Appropriations Committee of the House of Representatives, the

chair and minority chair of the Public Health and Welfare

Committee of the Senate and the chair and minority chair of the

Health and Human Services Committee of the House of

Representatives. A copy of the performance audit and the written

findings rejecting any recommendations shall be made available

for public inspection and copying and the written findings of

the secretary and the director shall be published in the

Pennsylvania Bulletin.

(5)  The Auditor General shall transmit any information

uncovered during the conduct of the performance audit relating

to fraud to the department, the office, the Attorney General and

the State Inspector General.

(q)  The Legislative Budget and Finance Committee shall

conduct a thorough performance audit of the manner in which the

department, the office and the Auditor General are implementing

this act and the program which shall be completed within three

years after the effective date of this section. Thereafter the

Legislative Budget and Finance Committee shall conduct such

performance audits at intervals of not less than ten years from

the date of completing the immediately preceding performance

audit required under this subsection. A copy of each performance

audit conducted by the Legislative Budget and Finance Committee

shall be transmitted to the public officials specified in

subsection (p)(4).

(r)  As used in this section, the following words and phrases

shall have the following meanings:

"Grant" means a cash grant or crisis grant under the Low

Income Home Energy Assistance Program.

"Grantee" means an individual who applies for a grant or upon

whose behalf the Department of Public Welfare approves a grant,

irrespective of whether the grant is paid to the individual or

to a vendor.

"Program" means the Low Income Home Energy Assistance

Program.

"Significant discrepancy" means information regarding assets,

income, resources or status of an individual, derived from a

database in subsection (b), which gives the Department of Public

Welfare grounds to suspect that either:

(1)  the individual is ineligible to participate in the Low

Income Home Energy Assistance Program under Federal or State

law; or

(2)  the assets, income or resources of the individual are at

least, in terms of a dollar amount, twenty-five percent greater

than the dollar amount reflected in the information the

department possesses about the individual with respect to the

individual's assets, income or resources.

"Status" means being in the United States illegally, being

dead, being an inmate in a prison or jail or being a fleeing

felon.

"Vendor" means an agent or person that directly distributes

home heating energy or services in exchange for payment. The

term does not include landlords, housing authorities, hotel

managers or proprietors, rental agents, energy suppliers or

generators or another person who is not a direct distributor of

home heating energy or service.

Section 2.  This act shall take effect immediately.