THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SAYLOR, SONNEY, MILLER, AUMENT, BOYD, COX, GILLEN, GROVE, MURT, CLYMER, CREIGHTON, DALEY, DAVIS, DENLINGER, ELLIS, EVANKOVICH, EVERETT, GABLER, GEIST, GIBBONS, GINGRICH, GOODMAN, GRELL, HARRIS, HESS, HICKERNELL, HUTCHINSON, M. K. KELLER, KILLION, LONGIETTI, MARSHALL, MASSER, MILNE, MOUL, OBERLANDER, O'NEILL, PAYTON, PICKETT, PYLE, REICHLEY, ROCK, SCHRODER, SIMMONS, TALLMAN, TRUITT, VULAKOVICH, WAGNER, YOUNGBLOOD, BAKER, MILLARD, F. KELLER, CUTLER, MICOZZIE, WATSON, DELOZIER, TURZAI, PERRY, MARSICO, LAWRENCE, QUINN, TOEPEL, METCALFE, KAUFFMAN AND KNOWLES, MAY 12, 2011

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 21, 2012   

AN ACT

Establishing the Keystone Works I Program.

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Amending the act of December 18, 2001 (P.L.949, No.114),

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entitled, as amended, "An act establishing a unified

workforce investment system; restructuring certain

administrative functions, procedures and entities;

transferring workforce development functions of Commonwealth

agencies; establishing the Pennsylvania Workforce Investment

Board; providing for critical job training grants, for

guarantees for program quality and performance for workforce

development programs, for workforce leadership grants, for

industry partnerships; and authorizing local workforce

investment boards," amending the title of the act; and

establishing the Keystone Works Program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

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This act shall be known and may be cited as the Keystone

Works I Program 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:

"Business."  A business located in this Commonwealth and

approved by the Department of Labor and Industry for

participation in the program.

"Claimant."  A person collecting unemployment compensation

benefits under the act of December 5, 1936 (2nd Sp.Sess., 1937

P.L.2897, No.1), known as the Unemployment Compensation Law.

"Department."  The Department of Labor and Industry of the

Commonwealth.

"Program."  The Keystone Works I Program.

"Skill enhancement."  Raising to a higher degree a person's

knowledge and execution of a fundamental job function.

Section 3.  Keystone Works I Program.

(a)  Establishment.--The Keystone Works I Program is

established. The department shall administer the program.

(b)  Duties.--The department shall do all of the following:

(1)  Within 30 days of the effective date of this

section, establish the program.

(2)  Establish a form which claimants shall use to

request to be approved for participation in the program.

(3)  Within ten days of receipt of the form, grant or

deny a claimant's request to participate in the program.

(4)  In partnership with the department, notify

businesses of the availability of the program.

(5)  Provide a business with information and materials

necessary to participate upon request.

(6)  Match claimants to businesses participating in the

program.

(c)  Certification.--  In order to participate in the program,

a business shall certify all of the following to the department:

(1)  That it has open employment positions available.

(2)  That it intends to hire for a position that a

claimant may fill through the program.

(3)  That it will follow up a claimant's participation in

the program with a performance evaluation of the claimant,

regardless of whether or not the claimant is hired for

employment.

Section 4.  Operation.

(a)  Structure.--The department shall structure the program

to permit a claimant to be matched with a business participating

in the program. The claimant shall be placed in an open

employment position made available by the business. The business

shall provide skill enhancement from a business for up to 24

hours per week for up to six weeks. Upon completion of the six-

week period, claimants must be considered for employment by the

business. A business shall not be required to compensate

claimants involved with the program. 

(b)  Termination.--A business may terminate its participation

in the program at any time.

Section 5.  Eligibility.

Notwithstanding any other law, participation in the program

shall not affect the unemployment compensation benefits of a

claimant.

Section 20.  Effective date.

This act shall take effect immediately.

Section 1.  The title of the act of December 18, 2001

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(P.L.949, No.114), known as the Workforce Development Act,

amended July 7, 2011 (P.L.289, No.67), is amended to read:

AN ACT

Establishing a unified workforce investment system;

restructuring certain administrative functions, procedures

and entities; transferring workforce development functions of

Commonwealth agencies; establishing the Pennsylvania

Workforce Investment Board; providing for critical job

training grants, for guarantees for program quality and

performance for workforce development programs, for workforce

leadership grants[,] and for industry partnerships;

establishing the Keystone Works Program; and authorizing

local workforce investment boards.

Section 2.  The act is amended by adding a chapter to read:

CHAPTER 14

KEYSTONE WORKS PROGRAM

Section 1401.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Business."  An individual or entity that is an "employer

within the meaning of the act of December 5, 1936 (2nd Sp.Sess.,

1937 P.L.2897, No.1), known as the Unemployment Compensation

Law.

"Claimant."  A person collecting regular unemployment

compensation benefits under Article IV of the Unemployment

Compensation Law. The term does not include a claimant receiving

extended benefits under Article IV-A of the Unemployment

Compensation Law or federally funded unemployment compensation

benefits.

"Department."  The Department of Labor and Industry of the

Commonwealth.

"High-priority occupations."  As defined in section 1301.

"Job opening."  A bona fide opportunity for employment with a

business in a high-priority occupation for at least 30 hours per

week. 

"Program."  The Keystone Works Program established in section

1402.

"Training."  A planned, structured learning environment for

the primary benefit of the trainee and from which the employer

derives no immediate advantage and which is designed to provide

the skills and knowledge necessary to meet a business's

specifications for an occupation or trade.

Section 1402.  Program.

(a)  Establishment.--

(1)  The Keystone Works Program is established.

(2)  The department shall administer the program from

funds appropriated for the program.

(3)  The department may promulgate regulations and issue

guidelines that it deems necessary to administer the program.

(b)  Claimants.--A claimant may voluntarily enroll in the

program and shall be qualified for training, if all of the

following apply:

(1)  The department determines that the claimant is an

appropriate match with a job opening at a participating

business.

(2)  At the start of the training, the unexpended balance

of regular unemployment compensation to which the claimant is

financially eligible equals or exceeds the product of:

(i) the claimant's weekly benefit rate; and

(ii)  the number of weeks remaining.

(3)  The claimant certifies to the department, in a

writing subject to 18 Pa.C.S. § 4904 (relating to unsworn

falsification to authorities), that the claimant:

(i)  will not accept any form of compensation, cash

or otherwise, from the participating business or

individual or entity associated with the participating

business for participation in the program;

(ii)  will provide information and documentation to

the department as requested; and

(iii)  will cooperate with requests from the

department for evaluation of aspects of the program.

(c)  Businesses.--The following are required for a business

to be eligible to provide training under the program.

(1)  The business must satisfy all of the following

criteria:

(i)   The business has a job opening to which a

claimant may be matched by the department.

(ii)  The business will provide bona fide training to

the claimant for the job opening.

(iii)  Upon completion of the training period, the

business   will consider the claimant for employment in the

job opening   for which the claimant was trained.

(iv)  If the business hires the claimant upon

completion of the training period, the claimant will

perform services in "employment" within the meaning of

the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897,

No.1), known as the Unemployment Compensation Law.

(v)  The claimant will not work in a contract or

self-employment capacity for the business.

(vi)  The business and individuals or entities

associated with the business will not provide a

participating claimant with any form of compensation,

cash or otherwise, for participation in training under

the program.

(vii)  The business will not provide training under

the program while a work stoppage attributable to a labor

dispute is in effect.

(viii)  The business will not provide training while

concurrently participating in a Work Share program under

Article XIII of the Unemployment Compensation Law.

(ix)  Providing training under the program and hiring

the claimant upon completion of training would not

violate a collective bargaining agreement.

(x)  Providing training under the program and hiring

the claimant upon completion of training would not

displace or   adversely impact existing employees.

(xi)  The business will cooperate with requests from

the department for information and documentation related

to the   program.

(2)  The business must satisfy any additional criteria

established by the department in administering the program.

(3)  The business must certify in a writing subject to 18

Pa.C.S. § 4904 that all requirements of this subsection are

or will be satisfied.

(d)  Description.--

(1)  The department shall match claimants with businesses

that have job openings and are willing to provide training

for the corresponding high-priority occupations.

(2)  When a claimant is matched with a business, the

business shall provide the claimant a maximum of 24 hours of

unpaid training per week, for a maximum of eight weeks. At

the end of the training period, the business shall consider

the claimant for employment in the job opening, but is not

required to hire the claimant. A claimant who is

participating in training may opt to discontinue

participation in the program and is not required to accept an

offer of employment at the end of the training period.

Section 1403.  Administration.

The department has the following powers and duties under the

program:

(1)  Establish guidelines and applications it deems

necessary for the administration of the program.

(2)  Provide notice to businesses and claimants regarding

eligibility for and participation in the program.

(3)  Develop policies and procedures to register eligible

businesses and eligible claimants for the program.

(4)  Develop policies and procedures to review

applications.

(5)  Develop policies and procedures to match claimants

with businesses that have job openings for training under the

program,

(6)  Develop policies and procedures to provide

participating claimants and businesses with administrative

remedies for department determinations.

Section 1404.  Workers' Compensation.

(a)  Department.--The department shall purchase or arrange

for workers' compensation insurance coverage for approved

claimants during their participation in the program with an

approved business.

(b)  Employment relationship.--A claimant's participation in

the program does not create an employment relationship with the

department for purposes of the act of June 2, 1915 (P.L.736,

No.338), known as the Workers' Compensation Act.

(c)  Computation.--For the purposes of computing an approved

claimant's wage compensation and benefit amount under the

Workers' Compensation Act:

(1)  the average weekly wage shall be the claimant's

maximum weekly unemployment compensation benefit rate for the

benefit year in effect at the time of injury; and

(2)  the unemployment compensation benefit offset

permitted under section 204(a) of the Workers' Compensation

Act shall not apply.

Section 1405.  Eligibility.

Notwithstanding any other law, a claimant's participation in

the program, option to discontinue participation in the program,

termination from the program by a participating business or

completion of the program shall not affect the eligibility of

the claimant to receive unemployment compensation if the

claimant remains eligible to receive those benefits under the

act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),

known as the Unemployment Compensation Law.

Section 1406.  Business incentives.

(a)  Eligibility.--Subject to the availability of funding

under subsection (b), if, at the end of a training period, a

business hires a claimant for a job opening under section

1402(d), the business is eligible to receive incentive payments

in the amount of $375 for each period of four consecutive work

weeks the claimant remains employed at a minimum of 30 hours per

week, for up to four consecutive periods of four consecutive

work weeks and for a maximum of $1,500 total incentive payments.

(b)  Funding.--

(1)  Incentive payments under subsection (a) shall be

paid from money appropriated for payment.

(2)  Fifteen percent of the total amount of money

authorized for a fiscal year shall be reserved for businesses

with fewer than 100 employees. If the reserved amount is not

committed by April 30 of each year, it shall be available to

businesses that have at least 100 employees.

Section 1407. Performance evaluation system.

The department shall develop and implement an evaluation and

performance improvement system which does the following:

(1)  Collects critical information on an annual basis or

more frequently as determined by the department, including:

(i)  Increases in claimant skills.

(ii)  Skill training being provided by businesses.

(iii)  Placement of claimants after training.

(iv)  Challenges foreseen by businesses.

(v)  Business training best practices.

(vi)  Amount of weeks claimants received unemployment

compensation benefits after completion of the training

period.

(2)  Defines the benefits of the program and its training

to businesses, claimants and the Unemployment Compensation

Fund.

Section 1407.1.  Annual report.

No later than July 1 of each year, the department shall

submit an annual report to the chairman and minority chairman of

the Labor and Industry Committee of the Senate and to the

chairman and minority chairman of the Labor and Industry

Committee of the House of Representatives providing all data

available on the operation of the program during the prior year.

The report shall include, but not be limited to, claimant and

business participation, administrative costs, relevant data,

facts and statistics and any other information that the

department believes necessary in the content of the report that

is available.

Section 1408.  Expiration.

This chapter shall expire June 30, 2017.

Section 3.  This act shall take effect immediately.