1Amending the act of December 18, 2001 (P.L.949, No.114),
2entitled, as amended, "An act establishing a unified 
3workforce investment system; restructuring certain 
4administrative functions, procedures and entities; 
5transferring workforce development functions of Commonwealth 
6agencies; establishing the Pennsylvania Workforce Investment 
7Board; providing for critical job training grants, for 
8guarantees for program quality and performance for workforce 
9development programs, for workforce leadership grants and for 
10industry partnerships; establishing the Keystone Works 
11Program; and authorizing local workforce investment boards," 
12in Keystone Works Program, further providing for definitions, 
13for program, for administration, for workers' compensation, 
14for eligibility and for business incentives; providing for 
15business reimbursement, for job creation tax credit and for 
16advisory committee; further providing for performance 
17evaluation system and for annual report; and providing for 

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1. The definitions of "claimant," "high-priority
22occupations," "job opening" and "training" in section 1401 of
23the act of December 18, 2001 (P.L.949, No.114), known as the
24Workforce Development Act, added July 5, 2012 (P.L.970, No.107),
25are amended and the section is amended by adding a definition to

1Section 1401. Definitions.

2The following words and phrases when used in this chapter
3shall have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5* * *

6["Claimant." A person collecting regular unemployment
7compensation benefits under Article IV of the Unemployment
8Compensation Law. The term does not include a claimant receiving
9extended benefits under Article IV-A of the Unemployment
10Compensation Law or federally funded unemployment compensation

12* * *

13"Eligible trainee participant" or "participant." An
14individual currently unemployed or collecting unemployment
15compensation benefits under the act of December 5, 1936 (2nd
16Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
17Compensation Law. The term includes individuals who are enrolled
18in a two-year or four-year institution of higher education and

20["High-priority occupations." As defined in section 1301.]

21"Job opening." A bona fide opportunity for employment with a
22business [in a high-priority occupation] for at least 35 hours
23per week.

24* * *

25["Training." A planned, structured learning environment for
26the primary benefit of the trainee and from which the employer
27derives no immediate advantage and which is designed to provide
28the skills and knowledge necessary to meet a business'
29specifications for an occupation or trade.]

30Section 2. Sections 1402, 1403, 1404, 1405 and 1406 of the

1act, added July 5, 2012 (P.L.970, No.107), are amended to read:

2Section 1402. Program.

3(a) Establishment.--

4(1) The Keystone Works Program is established.

5(2) The department shall administer the program from
6funds appropriated for the program.

7(3) The department may promulgate regulations and issue
8guidelines that it deems necessary to administer the program.

9(a.1) Duties of department.--The department shall do all of
10the following:

11(1) Create a form which eligible trainee participants

12shall use to request to be approved for participation in the

14(2) Within ten days of receipt of the form, grant or

15deny a participant's request to participate in the program.

16(3) Notify businesses of the availability of the program
17through existing programs and posting on the department's
18Internet website.

19(4) Provide a business with information and materials

20necessary to participate upon request.

21(5) Match eligible participants to businesses

22participating in the program.

23(b) [Claimants] Eligible trainee participants.--

24(1) [A claimant] An eligible trainee participant may
25voluntarily enroll in the program and shall be qualified for
26training if all of the following apply:

27[(1)] (i) The department determines that the
28[claimant] participant is an appropriate match with a job
29opening at a participating business.

30[(2) At the start of the training, the unexpended

1balance of regular unemployment compensation to which the
2claimant is financially eligible equals or exceeds the
3product of:

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

5(ii) the number of weeks of training.

6(3)] (ii) The [claimant] participant certifies to
7the department, in a writing subject to 18 Pa.C.S. § 4904
8(relating to unsworn falsification to authorities), that
9the [claimant] participant:

10[(i) will not accept any form of compensation, cash
11or otherwise, from the participating business or
12individual or entity associated with the participating
13business for participation in the program;

14(ii)] (A) will provide information and
15documentation to the department as requested; and

16[(iii)] (B) will cooperate with requests from
17the department for evaluation of aspects of the

19(2) Priority for participation in the program shall be
20given to participants receiving unemployment compensation
21benefits and participants whose unemployment compensation
22benefits have expired.

23(c) Businesses.--The following are required for a business
24to be eligible to provide training under the program.

25(1) The business must satisfy all of the following

27(i) The business has a job opening to which a
28[claimant] participant may be matched by the department.

29(ii) The business will register with the
30Pennsylvania CareerLink system.

1(iii) The business will provide bona fide training 
2to the [claimant] participant for the job opening.

3(iv) Upon completion of the training period, the 
4business will consider the [claimant] participant for 
5employment in the job opening for which the [claimant] 
6participant was trained.

7(v) If the business hires the [claimant] participant 
8upon completion of the training period, the [claimant] 
9participant will perform services in "employment" within 
10the meaning of the act of December 5, 1936 (2nd Sp.Sess., 
111937 P.L.2897, No.1), known as the Unemployment 
12Compensation Law.

13(vi) The [claimant] participant will not work in a 
14contract or self-employment capacity for the business.

15[(vii) The business and individuals or entities 
16associated with the business will not provide a 
17participating claimant with any form of compensation, 
18cash or otherwise, for participation in training under 
19the program.]

20(viii) The business will not provide training under 
21the program while a work stoppage attributable to a labor 
22dispute is in effect.

23(ix) The business will not provide training while 
24concurrently participating in a shared-work program under 
25Article XIII of the Unemployment Compensation Law.

26(x) Providing training under the program and hiring 
27the [claimant] participant upon completion of training 
28would not violate a collective bargaining agreement.

29(xi) Providing training under the program and hiring 
30the [claimant] participant upon completion of training

1would not displace or adversely impact existing 

3(xii) The business will cooperate with requests from 
4the department for information and documentation related 
5to the program.

6(xiii) The business will follow up a participant's
7participation in the program with a performance
8evaluation of the participant's job skills regardless of
9whether or not the participant is hired for employment.

10(2) The business must satisfy any additional criteria
11established by the department in administering the program.
12This paragraph includes imposing conditions on participating
13businesses to ensure that an appropriate number of
14[claimants] participants participating in the program receive
15offers of suitable long-term employment.

16(3) The business must certify in a writing subject to 18
17Pa.C.S. § 4904 that all requirements of this subsection are
18or will be satisfied.

19(4) The business must not be disqualified under
20subsection (d)(2)(iii).

21(c.1) Business program.--

22(1) To be eligible to participate in the program, a
23business, its owner or authorized agent must certify that:

24(i) It has no tax liabilities or other obligations
25under the laws of the United States or the Commonwealth,
26or has filed a timely administrative or judicial appeal
27if such liabilities or obligations exist, or is subject
28to a duly approved deferred payment plan if such
29liabilities exist.

30(ii) Neither the business nor any subcontractors are

1under suspension or debarment by the Commonwealth or
2other government entity.

3(1.1) When applying, each business shall submit to the
4department a proposed training plan for approval, along with
5any other forms required by the department. The training plan
6shall provide the following:

7(i) The length of the training period required,
8which shall be based on the skills and knowledge of the
9proposed trainee participants, outlining the scope of

11(ii) Full-time hours for the designated training

13(iii) Workers' compensation benefits and any other

14employee benefits.

15(iv) The manner in which a contract will fulfill

16compliance with ADA requirements.

17(2) The Secretary of Labor and Industry may through
18guidelines provide for additional eligibility requirements or
19restrictions deemed necessary for a business to participate
20in the program.

21(d) Description.--

22(1) The department shall match [claimants] participants
23with businesses that have job openings and are willing to
24provide training [for the corresponding high-priority
25occupations]. A business shall not be required to accept all 
26participants for employment in order to participate in the 

28(2) When a [claimant] participant is matched with a 
29business, the business shall provide the [claimant a maximum 
30of 24 hours of unpaid training per week, for a maximum of

1eight weeks] training described in the training plan approved 
2by the department under subsection (c.1). At the end of the 
3training period, the following apply:

4(i) The business shall consider the [claimant]
5participant for employment in the job opening.

6(ii) The business is not required to hire the
7[claimant] participant.

8(iii) The department shall disqualify from
9participation in the program any employer showing a
10pattern of acting in bad faith regarding job offers.

11A [claimant] participant who is participating in training may
12opt to discontinue participation in the program.

13(3) A business may terminate its participation in the
14program at any time. Reasonable notice shall be given to
15current participants in the program. For purposes of this
16paragraph, reasonable notice shall be considered a minimum of
17seven days' notice.

18Section 1403. Administration.

19The department has the following powers and duties under the

21(1) Establish guidelines and applications it deems
22necessary for the administration of the program.

23(2) Provide notice to businesses and [claimants]
24eligible trainee participants regarding eligibility for and
25participation in the program.

26(3) Develop policies and procedures to register eligible
27businesses and eligible [claimants] trainee participants for
28the program.

29(4) Develop policies and procedures to review

1(5) Develop policies and procedures to match [claimants]
2eligible trainee participants with businesses that have job
3openings for training under the program.

4(6) Develop policies and procedures to provide
5[participating claimants] eligible trainee participants and
6businesses with administrative remedies for department

8Section 1404. [Workers' compensation.

9(a) Department.--The department shall purchase or arrange
10for workers' compensation insurance coverage for approved
11claimants during their participation in the program with an
12approved business.

13(b) Employment relationship.--A claimant's participation in
14the program does not create an employment relationship with the
15department for purposes of the act of June 2, 1915 (P.L.736,
16No.338), known as the Workers' Compensation Act.

17(c) Computation.--For the purposes of computing an approved
18claimant's wage compensation and benefit amount under the
19Workers' Compensation Act:

20(1) the average weekly wage shall be the claimant's
21maximum weekly unemployment compensation benefit rate for the
22benefit year in effect at the time of injury; and

23(2) the unemployment compensation benefit offset
24permitted under section 204(a) of the Workers' Compensation
25Act shall not apply.] (Reserved).

26Section 1405. Eligibility.

27Notwithstanding any other law, a [claimant's] participant's
28participation in the program, option to discontinue
29participation in the program, termination from the program by a
30participating business or completion of the program shall not

1affect the eligibility of the [claimant] participant to receive
2unemployment compensation if the [claimant] participant remains
3eligible to receive those benefits under the act of December 5,
41936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the
5Unemployment Compensation Law.

6Section 1406. Business incentives.

7(a) Eligibility.--Subject to the availability of funding
8under subsection (b), if, at the end of a training period, a
9business hires a [claimant] participant for a job opening under
10section 1402(d), the business is eligible to receive incentive
11payments in the amount of $375 for each period of four
12consecutive workweeks the [claimant] participant remains
13employed at a minimum of 35 hours per week, for up to four
14consecutive periods of four consecutive workweeks and for a
15maximum of $1,500 total incentive payments.

16(b) Funding.--

17(1) Incentive payments under subsection (a) shall be
18paid from money appropriated for payment.

19(2) Fifteen percent of the total amount of money
20authorized for a fiscal year shall be reserved for businesses
21with fewer than 100 employees. If the reserved amount is not
22committed by April 30 of each year, it shall be available to
23businesses that have at least 100 employees.

24Section 3. The act is amended by adding sections to read:

25Section 1406.1. Business reimbursement.

26Pursuant to availability of funding under section 1407.2,
27approved businesses participating in the program shall be
28eligible for reimbursement of up to 80% of a participant's

30Section 1406.2. Effect on job credit tax credit.

1Nothing in this chapter shall prohibit businesses from
2applying for tax credits that may be available as job creation
3tax credits under any Federal or State law.

4Section 1406.3. Advisory committee.

5(a) Establishment.--An advisory committee is established to

6advise the department on the administration of the program under

7this chapter.

8(b) Composition.--The advisory committee shall consist of

9eight members, with an equal number of members representing

10organized labor organizations and the business community. The

11appointments shall be made by the Governor, in consultation with

12the Pennsylvania Chamber of Business and Industry and
13representatives of organized labor, in consultation with the
14Pennsylvania AFL-CIO.

15(c) Chairperson.--The chairperson shall be elected by the

16members of the advisory committee.

17(d) Term.--The members shall serve at the pleasure of the

18Governor, which term shall run consecutively with the term of

19the Governor.

20(e) Compensation and expenses.--The advisory committee

21members shall not receive a salary or per diem allowance for

22serving as members of the committee, but shall be reimbursed for

23actual and necessary expenses incurred in the performance of

24their duties.

25(f) Meetings.--The advisory committee shall meet at least

26twice each year.

27(g) Commencement of committee.--Within 30 days of the
28effective date of this section, the Governor shall make the

29appointments called for within this section and the committee

30shall begin operations immediately following the appointments.

1Section 4. Sections 1407 and 1407.1 of the act, added July 
25, 2012 (P.L.970, No.107), are amended to read:

3Section 1407. Performance evaluation system.

4The department shall develop and implement an evaluation and
5performance improvement system which does the following:

6(1) Collects critical information on an annual basis or
7more frequently as determined by the department, including:

8(i) Increases in [claimant] participant skills.

9(ii) Skill training being provided by businesses.

10(iii) Placement of [claimants] participants after

12(iv) Challenges foreseen by businesses.

13(v) Business training best practices.

14(vi) Amount of weeks [claimants] participants
15received unemployment compensation benefits after
16completion of the training period.

17(2) Defines the benefits of the program and its training
18to businesses, [claimants] participants and the Unemployment
19Compensation Fund.

20Section 1407.1. Annual report.

21(a) General rule.--No later than [July 1] December 31 of
22each year, the department, in consultation with the advisory 
23committee established under section 1406.3, shall submit an
24annual report to the chairman and minority chairman of the Labor
25and Industry Committee of the Senate and to the chairman and
26minority chairman of the Labor and Industry Committee of the
27House of Representatives providing all data available on the
28operation of the program during the prior year. The report shall
29include, but not be limited to, [claimant and business
30participation, administrative costs, relevant data, facts and

1statistics and any other information that the department
2believes necessary in the content of the report that is
3available.] the following information:

4(1) The total number of participating businesses, their
5physical addresses, including the county, and the amount of
6program funds provided for reimbursement to each business.

7(2) The number of participants enrolled in the program.

8(3) The number of participants who have completed the

10(4) The number of participants hired by the
11participating business.

12(5) The number of businesses that have terminated
13participation in the program and their rationales for doing

15(6) An overview of the type of training provided to

17(7) A review of anticipated future trends in training
18curriculum and how the program will adapt to this need.

19(8) A review of how the program will continue to recruit
20new businesses and participants.

21(9) Meeting minutes of the advisory board for the
22previous 12 months.

23(10) Recommendations for program enhancements for the
24following year.

25(b) Public inspection.--The annual reports shall be made
26available for public inspection in a conspicuous place on the
27department's Internet website for a period of five years
28following their submission to the General Assembly.

29Section 5. The act is amended by adding a section to read:

30Section 1407.2. Funding.

1An amount not to exceed $10,000,000 shall be appropriated

2from any of the following Federal sources of moneys to the


4(1) Additional funding, for which the department shall

5apply, which is available under the Workforce Investment Act

6of 1998 (Public Law 105-220, 112 Stat. 936), for use in

7administering the program.

8(2) Funds received for the industry partnership program

9by the department and specified for use in job training


11(3) Funds received by the Commonwealth for the

12Dislocated Worker Program under the Workforce Investment Act

13of 1998.

14Section 6. This act shall take effect in 60 days.