PRINTER'S NO. 1269
No. 1123 Session of 1997
INTRODUCED BY RAMOS, MELIO, BELARDI, PESCI, WALKO, SHANER,
LaGROTTA, CARN, TRICH, STURLA, YOUNGBLOOD, ITKIN, PISTELLA,
MYERS, STEELMAN, MANDERINO, JOSEPHS AND SAINATO,
APRIL 2, 1997
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
APRIL 2, 1997
AN ACT
1 Requiring business entities which apply for job creation tax
2 credits to hire certain persons ineligible for or terminated
3 from public assistance; providing for the duties of the
4 Department of Community and Economic Development; requiring
5 certain State jobs to be filled by such persons; and
6 providing for the duties of the Secretary of Administration.
7 The General Assembly finds and declares as follows:
8 (1) Welfare reform aims to reduce or eliminate
9 dependency on governmental social services by requiring
10 welfare recipients to obtain gainful employment.
11 (2) This employment requirement can succeed only if
12 there are a sufficient number of existing jobs available or
13 new jobs that can be created and welfare recipients can earn
14 a living wage.
15 (3) The creation of a new work force from welfare
16 recipients could displace or undermine the pay and benefits
17 of existing workers.
18 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Definitions.
3 The following words and phrases when used in this act shall
4 have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Business entity." A sole proprietor, company or business
7 eligible for job creation tax credits under the act of June 29,
8 1996 (P.L.434, No.67), known as the Job Enhancement Act.
9 "Department." The Department of Community and Economic
10 Development of the Commonwealth.
11 "Job candidate." A person who meets the eligibility
12 requirements for a tax credit job or State job under this act.
13 "Job Enhancement Act." The act of June 29, 1996 (P.L.434,
14 No.67), known as the Job Enhancement Act.
15 "Secretary." The Secretary of Community and Economic
16 Development of the Commonwealth.
17 "State job." A position of employment in an administrative
18 department, board or commission, or departmental board or
19 commission under the jurisdiction of the Governor, that requires
20 a high school diploma or general educational development
21 certificate (GED). The term shall not include an administrative
22 department head, member of a board or commission or member of a
23 departmental board or commission or any major nontenured
24 policymaking or advisory position thereof.
25 "Tax credit job." A new job created by a business entity
26 that has applied for job creation tax credits as those terms are
27 defined under the act of June 29, 1996 (P.L.434, No.67), known
28 as the Job Enhancement Act.
29 Section 2. Eligibility for tax credit job.
30 Any citizen of this Commonwealth who is ineligible for public
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1 assistance or a public assistance recipient whose public
2 assistance benefits are terminated as a result of the act of May
3 16, 1996 (P.L.175, No.35), entitled, "An act amending the act of
4 June 13, 1967 (P.L.31, No.21), entitled 'An act to consolidate,
5 editorially revise, and codify the public welfare laws of the
6 Commonwealth,' further providing for legislative intent, for
7 definitions, for uniform administration of assistance, for
8 community work and training regulations, for work registration
9 and for administrative duties and personal obligations;
10 providing for grant diversion; further providing for special
11 needs and self-sufficiency, for eligibility, for voluntary
12 termination of employment, for identification and proof of
13 residence, for limits on property holdings, for support from
14 legally responsible relatives, for paternity determinations and
15 support enforcement, for protective payments, for determination
16 of need and for eligibility verification; providing for aliens
17 and for diminished welfare payments; further providing for
18 medical eligibility; providing for medical assistance
19 deductibles and for medical assistance pharmacy services;
20 further providing for penalties; making appropriations; imposing
21 duties upon the Department of Public Welfare; and making
22 repeals," shall be eligible to apply for a tax credit job under
23 this act.
24 Section 3. Tax credit jobs.
25 A business entity which receives approval from the department
26 for job creation tax credits under the Job Enhancement Act shall
27 agree that each of the tax credit jobs created from the tax
28 credits shall be filled by a job candidate. This agreement shall
29 be included in the commitment letter executed by the business
30 entity under the Job Enhancement Act.
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1 Section 4. Duties of secretary.
2 (a) Business entity matching.--The secretary shall assist
3 the department's regional offices to identify business entities
4 that may be eligible for job creation tax credits under the Job
5 Enhancement Act, to match the business entities with job
6 candidates and to encourage the business entities to apply for
7 the tax credits.
8 (b) Determination of new jobs.--The secretary shall
9 determine whether the position filled by a job candidate
10 qualifies as a new job under the Job Enhancement Act.
11 (c) Supervision.--The secretary shall supervise and
12 coordinate the activities of the department's regional offices
13 to carry out this act.
14 (d) Regulations.--The secretary may promulgate rules and
15 regulations necessary to administer and enforce the provisions,
16 except for sections 8 and 9.
17 Section 5. Prohibited uses of job creation tax credits.
18 A business entity shall be prohibited from claiming a job
19 creation tax credit to taxes under the Job Enhancement Act if:
20 (1) A job candidate is hired for a new job in order to
21 replace a laid-off employee or to replace an employee who is
22 on strike.
23 (2) The business entity receives State employment
24 training benefits for the job candidate who is hired for a
25 new job.
26 (3) The business entity fails to notify the department
27 that a job candidate has been hired and the department
28 determines that the position is not a tax credit job.
29 Section 6. Voluntary termination.
30 (a) General rule.--Notwithstanding any other law, a business
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1 entity may claim a job creation tax credit in the amount
2 specified in subsection (b) for any tax credit job relating to a
3 job candidate whose employment with the business entity lasts
4 less than one year if:
5 (1) The job candidate voluntarily terminates the
6 employment.
7 (2) The job candidate's reason for the voluntary
8 termination is the commencement of employment with another
9 employer.
10 (b) Reduced amount of tax credit.--For purposes of
11 subsection (a), the business entity may claim 30% of the amount
12 of the job creation tax credit specified in the commitment
13 letter if the job candidate receives at least $6,000 in wages
14 from the business entity during the course of employment.
15 Section 7. Other reasons for termination.
16 (a) General rule.--Notwithstanding any other law, a business
17 entity may claim a job creation tax credit in the amount
18 specified in subsection (b) for any tax credit job relating to a
19 job candidate whose employment lasts less than one year if:
20 (1) the job candidate is unable to continue the
21 employment due to death or disability; or
22 (2) the job candidate is terminated for cause.
23 (b) Reduced amount of tax credit.--For purposes of
24 subsection (a), the business entity may claim a percentage of
25 the amount of the job creation tax credit specified in the
26 commitment letter that is equal to the proportion of the year
27 that the job candidate worked for the business entity.
28 Section 8. Eligibility for State job.
29 Any citizen of this Commonwealth who is ineligible for public
30 assistance or a public assistance recipient whose public
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1 assistance benefits are terminated as a result of the act of May
2 16, 1996 (P.L.175, No.35), entitled, "An act amending the act of
3 June 13, 1967 (P.L.31, No.21), entitled 'An act to consolidate,
4 editorially revise, and codify the public welfare laws of the
5 Commonwealth,' further providing for legislative intent, for
6 definitions, for uniform administration of assistance, for
7 community work and training regulations, for work registration
8 and for administrative duties and personal obligations;
9 providing for grant diversion; further providing for special
10 needs and self-sufficiency, for eligibility, for voluntary
11 termination of employment, for identification and proof of
12 residence, for limits on property holdings, for support from
13 legally responsible relatives, for paternity determinations and
14 support enforcement, for protective payments, for determination
15 of need and for eligibility verification; providing for aliens
16 and for diminished welfare payments; further providing for
17 medical eligibility; providing for medical assistance
18 deductibles and for medical assistance pharmacy services;
19 further providing for penalties; making appropriations; imposing
20 duties upon the Department of Public Welfare; and making
21 repeals," shall be eligible to apply for a State job under this
22 act.
23 Section 9. State jobs.
24 (a) General rule.--Fifteen percent of all State jobs shall
25 be filled by job candidates.
26 (b) Applicability.--Nothing in this act shall be construed
27 or operate to:
28 (1) interfere with or impair any collective bargaining
29 agreement involving State jobs that is in effect on the
30 effective date of this act; or
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1 (2) alter the status of or adversely affect any State
2 jobs that are of classified service under the act of August
3 5, 1941 (P.L.752, No.286), known as the Civil Service Act.
4 Section 10. Rules and regulations for State jobs.
5 The Secretary of Administration shall promulgate rules and
6 regulations necessary to administer and enforce section 9.
7 Section 11. Cooperative duties.
8 The Department of Public Welfare shall cooperate with,
9 provide the necessary data and information to and generally
10 assist the Department of Community and Economic Development and
11 the Secretary of Administration in the implementation and
12 enforcement of this act.
13 Section 12. Effective date.
14 This act shall take effect in 60 days.
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