PRINTER'S NO. 1784
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
53
Session of
2015
INTRODUCED BY EVANKOVICH, SIMMONS, MACKENZIE, DRISCOLL,
A. HARRIS, DAVIS, KAUFFMAN, SAYLOR, HEFFLEY, MURT, TOOHIL,
GROVE, CUTLER, IRVIN AND ZIMMERMAN, JUNE 11, 2015
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JUNE 11, 2015
AN ACT
Providing for Pennsylvania Workforce Investment Strategy
Program, for Cooperative Workforce Investment Partnerships,
for employee training programs and for Pennsylvania Workforce
Investment Strategy Tax Credit; imposing duties on the
Department of Community and Economic Development and the
Department of Revenue; and providing for carryover,
carryback, refund and assignment, for pass-through entity,
for administration, for limitation and for interim and annual
reports.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Workforce Investment Strategy Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Labor and Industry of the
Commonwealth.
"Designated representative." A designated representative of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
a business which participates in the program.
"Local workforce investment board." As defined in section
103 of the act of December 18, 2001 (P.L.949, No.114), known as
the Workforce Development Act.
"Program." The Pennsylvania Workforce Investment Strategy
Program established in section 3(a).
"Qualified tax liability." Tax liability imposed on a
taxpayer under Article III, IV, VI, VII, VIII, IX, XI or XV of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971, excluding a tax withheld by an employer under
Article III of the Tax Reform Code of 1971.
"Qualifying workforce expenditure." Money spent by a
participating business for purposes directly attributable to the
implementation and utilization of an employee training program
established under this act. The term shall include money paid to
a local workforce investment board by a participating business
for administrative costs associated with the implementation of
and compliance with this act.
"Taxpayer." A natural person, corporation, business trust,
limited liability company, partnership, limited liability
partnership, association or other form of legal business entity
that:
(1) is subject to a tax imposed under Article III, IV,
VI, VII, VIII, IX, XI or XV of the Tax Reform Code of 1971,
excluding a tax withheld by an employer under Article III of
the Tax Reform Code of 1971; and
(2) is participating in the program.
Section 3. Pennsylvania Workforce Investment Strategy Program.
(a) Establishment.--There is hereby established within the
department a program to be known as the Pennsylvania Workforce
20150HB0053PN1784 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Investment Strategy Program.
(b) Legislative intent.--It is the purpose of the program to
incentivize businesses to organize and collaborate with each
other to address common personnel needs and training shortfalls.
Participating businesses shall, with the assistance and
oversight of the department and the local workforce investment
board, develop employee training programs and implement them
utilizing preexisting infrastructure that is readily available.
The businesses shall be eligible for a tax credit to subsidize a
portion of their incurred expenses for participation in the
program.
(c) Administration.--The program shall be administered by
the department and shall require local workforce investment
boards to do the following:
(1) Identify and actively solicit eligible local
businesses organized under section 4 for participation in the
program.
(2) Work collaboratively with program participants to
develop and administer training programs in conformity with
section 5.
(3) Assist program participants in applying for and
securing tax credits available under this act.
(4) Collect quantitative and qualitative data on
critical program metrics and make a report to the department
in accordance with section 11.
Section 4. Cooperative Workforce Investment Partnerships.
(a) Solicitation.--The local workforce investment board
shall, in a manner prescribed by the department, biannually
notify businesses in its jurisdiction of the businesses' ability
to confederate for the purpose of participation in the program.
20150HB0053PN1784 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Name.--For the purposes of program participation,
businesses that elect to confederate under this section shall
form an entity known as a Cooperative Workforce Investment
Partnership.
(c) Unlimited participation.--There shall be no limit to the
number of Cooperative Workforce Investment Partnerships formed
in the jurisdiction of a local workforce investment board. There
shall be no limit to the number of participating businesses
within a single Cooperative Workforce Investment Partnership.
(d) Standards for business participation.--Businesses
forming or participating in a Cooperative Workforce Investment
Partnership need not be linked by common industry practices,
products, services, technologies or supply chains but must, in
the judgment of the local workforce investment board, endure
similar chronic or immediate personnel needs and training
shortfalls for similar classes and types of employees who:
(1) perform substantively similar essential job
functions;
(2) possess or require similar knowledge bases and
critical skills; or
(3) undergo similar physical demands.
(e) Application requirements.--A business that elects to
form a Cooperative Workforce Investment Partnership shall submit
an application to the local workforce investment board on a form
and in a manner promulgated by the department. An application
must include, at minimum, the following:
(1) date of application;
(2) name and location of each participating business;
(3) a declaration of interest signed by a designated
representative of each participating business;
20150HB0053PN1784 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) the relevant contact information of each designated
representative;
(5) the total number of full-time and part-time
employees of each participating business and the expected
number of employee program participants;
(6) if applicable, the name of a labor organization that
represents the employees of each participating business;
(7) the chronic or immediate personnel needs and
training shortfalls commonly endured by a participating
business;
(8) a basic description of proposed training curriculum
designed to relieve or eliminate the needs and shortfalls
described under paragraph (7);
(9) a projection of resources needed to effectively
implement training programs developed under section 5; and
(10) a mutually agreeable date of commencement for the
proposed training program.
(f) Approval process.--The department shall approve an
application for the formation of a Cooperative Workforce
Investment Partnership if each business satisfies the basic
standards for program participation in subsection (d) and
satisfactorily demonstrates its ability and intention to work
with the local workforce investment board to develop and
implement a comprehensive employee training program. The
department may remove a single business participant from the
Cooperative Workforce Investment Partnership if the business
does not meet the basic standards for program participation in
subsection (d) or fails to satisfactorily demonstrate its
ability and intention to work with the local workforce
investment board to develop and implement a comprehensive
20150HB0053PN1784 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
employee training program.
(g) Disbandment or removal.--The local workforce investment
board may, with approval from the department, disband a
Cooperative Workforce Investment Partnership or remove a single
participating business for failure to comply with program
requirements.
(h) Replacement.--Consistent with the application and
approval requirements of this section, a new Cooperative
Workforce Investment Partnership may be instituted to replace a
partnership that has been disbanded under subsection (g).
(i) Business participant penalty period.--A participating
business that has been removed from the Cooperative Workforce
Investment Partnership may reapply in a manner consistent with
the application and approval requirements of this section after
serving a six-month penalty period.
(j) Authority of department.--The department may institute
and establish additional guidelines and procedures as are
necessary to implement the requirements of this section.
Section 5. Employee training programs.
(a) Preliminary meeting.--Upon the formation of a
Cooperative Workforce Investment Partnership, the local
workforce investment board shall meet with a designated
representative of each participating business to define and
establish:
(1) the broad needs and critical challenges facing the
business participants, including global, national, regional,
State and local industry trends;
(2) infrastructure, technology and skill needs of the
participating businesses and their employees;
(3) immediately available resources and services;
20150HB0053PN1784 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) information and resources needed to address gaps in
the business's understanding of the business's industry;
(5) current barriers to economic success, regional
competitiveness, innovation, long-term financial health and
industrial viability;
(6) short-term and long-term personnel needs and current
skill gaps amongst incumbent workers;
(7) inefficiencies and inadequacies of current employee
training programs, if applicable; and
(8) other logistical or infrastructural barriers to
meeting business goals and objectives.
(b) Action plan.--In consultation and with final approval
from the local workforce investment board, designated
representatives of each participating business shall establish
an action plan for the implementation of an employee training
program. At minimum, the action plan shall include:
(1) the name of each employee participating in the
employee training program;
(2) employee training program instructors and minimum
certification;
(3) the curriculum of the employee training program;
(4) the venue of the employee training program;
(5) frequency and duration of the employee training
program; and
(6) any and all resources needed to adequately implement
the employee training program.
(c) Implementation.--No employee training program may
commence before an action plan has been submitted to and
approved by the local workforce investment board. Upon approval
of the action plan by the local workforce investment board, the
20150HB0053PN1784 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Cooperative Workforce Investment Partnership may implement its
employee training program.
(d) Utilization of preexisting infrastructure.--An employee
training program proposed under subsection (b) and approved
under subsection (c) must emphasize the utilization of
preexisting infrastructure for the purpose of training program
implementation.
(e) Skill-specific focus.--Curricula proposed under
subsection (b) and approved under subsection (c) must be focused
on providing employees with skill-specific occupational
training.
Section 6. Pennsylvania Workforce Investment Strategy Tax
Credit.
(a) Tax credit certificate.--The following apply:
(1) A taxpayer shall complete and submit to the
Department of Community and Economic Development a
Pennsylvania Workforce Investment Strategy Tax Credit
application on the form required by the Department of
Community and Economic Development. The application must
include the following:
(i) name and address of the taxpayer;
(ii) proof of participation in the program;
(iii) documentation supporting the qualifying
workforce expenditures; and
(iv) any other information as requested by the
Department of Community and Economic Development.
(2) The Department of Community and Economic
Development, in conjunction with the department and the
Department of Revenue, shall review the applications on a
first-come, first-served basis.
20150HB0053PN1784 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) If the Department of Community and Economic
Development approves the taxpayer's application, the
Department of Community and Economic Development shall issue
a tax credit certificate equal to 90% of the total qualifying
workforce expenditures.
(4) In granting tax credit certificates under this act,
the Department of Community and Economic Development:
(i) may not grant more than $3 million in tax credit
certificates in fiscal year 2014-2015;
(ii) may not grant more than $7 million in tax
credit certificates in fiscal year 2015-2016;
(iii) may not grant more than $10 million in tax
credit certificates in fiscal year 2016-2017; and
(iv) may not grant more than $75,000 in tax credit
certificates to a single taxpayer in any fiscal year.
(b) Claiming tax credit.--Upon presenting a tax credit
certificate to the Department of Revenue, the taxpayer may claim
a tax credit against the qualified tax liability.
Section 7. Carryover, carryback, refund and assignment.
(a) General rule.--If a qualified taxpayer cannot use the
entire amount of the tax credit for the taxable year in which
the tax credit is first approved, the excess may be carried over
to succeeding taxable years and used as a credit against the
qualified tax liability of the qualified taxpayer for those
taxable years. When the tax credit is carried over to a
succeeding taxable year, it shall be reduced by the amount that
was used as a credit during the immediately preceding taxable
year. The tax credit provided by this act may be carried over
and applied to succeeding taxable years for not more than seven
taxable years following the first taxable year for which the
20150HB0053PN1784 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
qualified taxpayer was entitled to claim the credit.
(b) Application.--A tax credit certificate received by the
department in a taxable year first shall be applied against the
qualified taxpayer's qualified tax liability for the current
taxable year as of the date on which the credit was issued
before the tax credit can be applied against any qualified tax
liability under subsection (a).
(c) No carryback or refund.--A qualified taxpayer may not
carry back or obtain a refund of all or any portion of an unused
tax credit granted to the qualified taxpayer under this act.
(d) Sale or assignment.--The following shall apply:
(1) A qualified taxpayer, upon application to and
approval by the Department of Community and Economic
Development, may sell or assign, in whole or in part, a tax
credit granted to the qualified taxpayer under this act.
(2) Before an application is approved, the department
must find that the applicant filed the required State tax
reports and returns for all applicable taxable years and paid
any balance of State tax due as determined at settlement,
assessment or determination by the department.
(e) Purchasers and assignees.--The purchaser or assignee of
all or a portion of a tax credit obtained under section 6 shall
immediately claim the credit in the taxable year in which the
purchase or assignment is made. The purchaser or assignee may
not carry forward, carry back or obtain a refund of or sell or
assign the tax credit. The purchaser or assignee shall notify
the department of the seller or assignor of the tax credit in
compliance with procedures specified by the department.
Section 8. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
20150HB0053PN1784 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
tax credit under section 6, it may elect in writing, according
to procedures established by the department, to transfer all or
a portion of the credit to shareholders, members or partners in
proportion to the share of the entity's distributive income to
which the shareholder, member or partner is entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity may not claim the
credit under subsection (a) for the same qualified expenditure.
(c) Application.--A shareholder, member or partner of a
pass-through entity to whom a credit is transferred under
subsection (a) shall immediately claim the credit in the taxable
year in which the transfer is made. The shareholder, member or
partner may not carry forward, carry back, obtain a refund of or
sell or assign the credit.
Section 9. Administration.
The Department of Community and Economic Development, the
Department of Revenue and the department shall jointly develop
written guidelines for the implementation of the tax credit
provisions of this act.
Section 10. Limitation.
A taxpayer may not apply for or utilize tax credits after
June 30, 2018.
Section 11. Interim and annual reports.
(a) Interim reports.--A local workforce investment board
that has participated in the program shall, in a manner
promulgated by the department, submit a biannual report to the
department in accordance with subsection (c).
(b) Annual report.--On an annual basis, the department shall
compile the interim reports collected under subsection (a) and
submit a final report in accordance with subsection (c) to:
20150HB0053PN1784 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) the Governor;
(2) the Auditor General;
(3) the chairman and minority chairman of the
Appropriations Committee of the Senate;
(4) the chairman and minority chairman of the Labor and
Industry Committee of the Senate;
(5) the chairman and minority chairman of the
Appropriations Committee of the House of Representatives; and
(6) the chairman and minority chairman of the Labor and
Industry Committee of the House of Representatives.
(c) Report contents.--In addition to information or analysis
deemed necessary by the department, the interim and final
reports must include, at minimum, the number of Cooperative
Workforce Investment Partnerships formed, employee training
programs implemented, program participation, notable progress
and outcomes for program participants and financial costs
endured.
Section 12. Effective date.
This act shall take effect immediately.
20150HB0053PN1784 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19