CORRECTIVE REPRINT
        PRIOR PRINTER'S NO. 3367                      PRINTER'S NO. 3969

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2579 Session of 1992


        INTRODUCED BY FLICK, RYAN, PERZEL, BARLEY, PHILLIPS, CARLSON,
           ALLEN, ADOLPH, ANDERSON, ANGSTADT, ARMSTRONG, BIRMELIN,
           BLACK, BROWN, CESSAR, CHADWICK, CLARK, CLYMER, CORNELL,
           DEMPSEY, DURHAM, DENT, FAIRCHILD, FARGO, FARMER, FOSTER,
           GALLEN, GEIST, GERLACH, GLADECK, GODSHALL, GRUPPO, HASAY,
           HERMAN, HERSHEY, HESS, JADLOWIEC, KENNEY, KING, LANGTRY, LEH,
           MARSICO, McHUGH, MICOZZIE, NAILOR, NOYE, NYCE, O'BRIEN,
           PICCOLA, PITTS, RAYMOND, REBER, REINARD, SAURMAN, SCHEETZ,
           SCHULER, SEMMEL, B. SMITH, S. SMITH, D. W. SNYDER, STAIRS,
           E. Z. TAYLOR, TULLI, VANCE, VROON AND M. N. WRIGHT,
           MARCH 30, 1992

        REFERRED TO COMMITTEE ON HEALTH AND WELFARE, MARCH 30, 1992

                                     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," further restricting
     4     assistance payments and medical assistance to certain
     5     chronically needy persons; and making repeals.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Sections 432(3)(i)(H) and (I) and (iii), 442.1
     9  and 491(b) of the act of June 13, 1967 (P.L.31, No.21), known as
    10  the Public Welfare Code, amended or added April 8, 1982
    11  (P.L.231, No.75), are amended to read:
    12     Section 432.  Eligibility.--Except as hereinafter otherwise
    13  provided, and subject to the rules, regulations, and standards
    14  established by the department, both as to eligibility for

     1  assistance and as to its nature and extent, needy persons of the
     2  classes defined in clauses (1), (2), and (3) shall be eligible
     3  for assistance:
     4     * * *
     5     (3)  Other persons who are citizens of the United States, or
     6  legally admitted aliens and who are chronically needy or
     7  transitionally needy persons.
     8     (i)  Chronically needy persons are those persons chronically
     9  in need who may be eligible for an indeterminate period as a
    10  result of medical, social or related circumstances and shall be
    11  limited to:
    12     * * *
    13     (H)  Any person who has previously been employed full time
    14  [for at least forty-eight months out of the previous eight
    15  years] and has exhausted his or her unemployment compensation
    16  benefits prior to applying for assistance.
    17     [(I)  Any person who does not otherwise qualify as
    18  chronically needy, and who is receiving general assistance on
    19  the date this section is enacted into law and who has not
    20  refused a bona fide job offer or otherwise failed to comply with
    21  all employment requirements of this act and regulations
    22  promulgated thereunder. Such person must comply with all
    23  employment requirements of this act and regulations promulgated
    24  thereunder. If after the date this section is enacted into law a
    25  person's general assistance grants are terminated, then that
    26  person may not subsequently qualify for general assistance under
    27  this clause except when such person has been terminated from
    28  employment through no fault of his own and has not met the
    29  minimum credit week qualifications of the act of December 5,
    30  1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the
    19920H2579B3969                  - 2 -

     1  "Unemployment Compensation Law." If it is determined that the
     2  classification of persons according to their status on the date
     3  of enactment as provided in this clause is invalid, then the
     4  remainder of this act shall be given full force and effect as if
     5  this clause had been omitted from this act, and individuals
     6  defined in this clause shall be considered transitionally needy
     7  if otherwise eligible. No person shall qualify for general
     8  assistance under this clause after December 31, 1982.]
     9     * * *
    10     [(iii)  Transitionally needy persons are those persons who
    11  are otherwise eligible for general assistance but do not qualify
    12  as chronically needy. Assistance for transitionally needy
    13  persons shall be authorized only once in any twelve-month period
    14  in an amount not to exceed the amount of ninety days'
    15  assistance.]
    16     * * *
    17     Section 442.1.  The Medically Needy; Determination of
    18  Eligibility.--A person shall be considered medically needy if
    19  he:
    20     (1)  Resides in Pennsylvania, regardless of the duration of
    21  his residence or his absence therefrom; and
    22     (2)  Meets the standards of financial eligibility established
    23  by the department with the approval of the Governor. In
    24  establishing these standards the department shall take into
    25  account (i) the funds certified by the Budget Secretary as
    26  available for medical assistance for the medically needy; (ii)
    27  pertinent Federal legislation and regulations; and (iii) the
    28  cost of living. [Transitionally needy persons who are not
    29  eligible for cash assistance by reason of section 432(3)(iii)
    30  shall be considered medically needy if otherwise eligible.]
    19920H2579B3969                  - 3 -

     1     Section 491.  Employment Incentive Payments.--* * *
     2     (b)  An employment incentive payment may be claimed by an
     3  employer who hires any person who is receiving aid to families
     4  with dependent children or who is classified as chronically [or
     5  transitionally] needy at the time of employment except that
     6  payments shall not be provided for:
     7     (1)  The employment of any person who displaces any other
     8  individual from employment, except persons discharged for cause
     9  as certified by the Office of Employment Security.
    10     (2)  The employment of any person closely related, as defined
    11  by paragraphs (1) through (8) of section 152(a) of the Internal
    12  Revenue Code, to the taxpayer, or, if the taxpayer is a
    13  corporation, to an individual who owns, directly or indirectly
    14  more than fifty percent of the outstanding stock of the
    15  corporation, bank, savings institution, company, insurance
    16  company, or mutual thrift institution.
    17     (3)  The employment of an individual for whom the employer is
    18  simultaneously receiving Federally or State funded job training
    19  payments.
    20     * * *
    21     Section 2.  (a)  The following acts and parts of acts are
    22  repealed insofar as they provide job training or grants for
    23  persons classified as transitionally needy:
    24     Act of July 13, 1987 (P.L.332, No.62), known as the Project
    25  Independence Act.
    26     Act of July 13, 1987 (P.L.342, No.65), known as the
    27  Employment Opportunities Act.
    28     (b)  The repeals under subsection (a) shall be applied
    29  prospectively and shall not affect any job training program or
    30  grant entered into on or prior to July 1, 1992.
    19920H2579B3969                  - 4 -

     1     Section 3.  The amendment affecting transitionally needy in
     2  section 491(b) of the act shall only apply to persons applying
     3  for employment on or after July 1, 1992.
     4     Section 4.  This act shall take effect July 1, 1992.


















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