PRINTER'S NO. 2040
No. 1658 Session of 2001
INTRODUCED BY MYERS, PETRARCA, METCALFE, GEIST, KIRKLAND, JAMES, CRUZ, SOLOBAY, CAWLEY, J. WILLIAMS, WATERS, MELIO, WOGAN, CALTAGIRONE, STURLA, KELLER, WALKO, YOUNGBLOOD, MANDERINO, CORRIGAN, WANSACZ, ROBINSON, LAUGHLIN, DALEY, PRESTON, THOMAS, BROWNE, SHANER, BELFANTI, JOSEPHS AND TRELLO, MAY 23, 2001
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, MAY 23, 2001
AN ACT 1 Providing for a program of grants to develop and provide useful 2 and productive opportunities for unemployed and underemployed 3 people, especially young people, through payments for labor 4 and related costs associated with the construction, repair or 5 rehabilitation of essential community and educational 6 facilities, with the reclamation, improvement and 7 conservation of public lands, and with the creation, repair, 8 rehabilitation and restoration of public safety, public 9 transportation, health, social services and recreation 10 facilities and other activities necessary to the public 11 welfare. 12 TABLE OF CONTENTS 13 Chapter 1. Preliminary Provisions 14 Section 101. Short title. 15 Section 102. Legislative findings. 16 Section 103. Definitions. 17 Chapter 3. Grants to Local Governments 18 Section 301. Direct grants. 19 Section 302. Allocation of funds and preferences. 20 Section 303. Rules, regulations and procedures.
1 Section 304. General limitations. 2 Chapter 5. Public Works and Job Restoration 3 Section 501. Purpose. 4 Section 502. Eligible participants. 5 Section 503. Limitation on use of funds. 6 Chapter 11. Miscellaneous Provisions 7 Section 1101. Effective date. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 CHAPTER 1 11 PRELIMINARY PROVISIONS 12 Section 101. Short title. 13 This act shall be known and may be cited as the Job Creation 14 and Infrastructure Restoration Act. 15 Section 102. Legislative findings. 16 The General Assembly finds and declares as follows: 17 (1) That the investments made during the 1930s, 1940s 18 and 1950s in the infrastructure of the United States through 19 the Roosevelt public works programs, the National Highway Act 20 and other major efforts led to the greatest economic recovery 21 and sustained level of economic growth in the first 150 years 22 of our nation's existence. 23 (2) That this Commonwealth's infrastructure has suffered 24 greatly over the past three decades because of the failure of 25 the Federal Government to renew and restore roads, bridges, 26 public buildings, public lands and other public assets. 27 (3) That the lack of resources for the maintenance of 28 the infrastructure during this period has led to the loss of 29 both jobs and job skills in these vital areas, with 30 consequent increased unemployment and a reduction in the 20010H1658B2040 - 2 -
1 quality of life for residents of affected areas. 2 (4) That there is a critical need to renew and restore 3 both the public buildings and other assets, and the jobs and 4 job skills needed to ensure that those assets are available 5 for use by future generations and for any defense needs the 6 country may face in the future. 7 (5) That policies at the Federal and State level have 8 demonstrated diminished concern for the needs of the 9 communities of the Commonwealth and a shifting of the burden 10 for maintenance and restoration of blighted areas on to State 11 and local governments, in addition to the burden for local 12 needs, such as public safety, education, health and public 13 welfare, that those jurisdictions bear, thereby stretching 14 already shrinking resources beyond the capabilities of those 15 governments to address these needs. 16 (6) That financial incentives that are specifically 17 linked to the development of jobs, and renewal of important 18 job skills will help reverse the trend of continued erosion 19 of the Commonwealth's urban and rural areas and act as an 20 economic stimulus for the Commonwealth. 21 (7) That economic growth rates, future efficiency and 22 competitiveness will be substantially enhanced by programs of 23 assistance to local governments to construct and rehabilitate 24 this Commonwealth's economic stability. 25 (8) That efforts to reform the welfare system are based 26 on the assumption that there will be jobs available in the 27 public and private sectors for current welfare recipients and 28 for noncustodial parents whose responsibilities include 29 providing support for their children. 30 (9) That, absent a concentrated effort on the part of 20010H1658B2040 - 3 -
1 the Commonwealth to create career jobs that provide a living 2 wage, efforts to reform the welfare system are doomed to 3 failure. 4 (10) That creation of living wage jobs in conjunction 5 with a large and sustained community works renewal program 6 will reap significant rewards in direct tax payments at all 7 levels of government, increased economic expansion for the 8 Commonwealth and substantial reductions in the outlays for 9 unemployment support, welfare, Medicaid and other government 10 expenditures and will also lessen the burden on government 11 expenditures that result from lack of employment for those at 12 risk of entering a life of crime. 13 (11) That agriculture is of such importance and since 14 Pennsylvania is ranked third in relation to mass layoffs in 15 the last four months (November, 1996 to the present), this 16 act is committed to reestablishing agricultural services. 17 Section 103. Definitions. 18 The following words and phrases when used in this act shall 19 have the meanings given to them in this section unless the 20 context clearly indicates otherwise: 21 "Department." The Department of Public Welfare of the 22 Commonwealth. 23 "Local government." Any political subdivision. 24 "Public service." The term includes port facilities, police 25 and fire stations, detention centers, schools, health 26 facilities, industrial research or development parks, research 27 facilities at institutions of higher learning and other projects 28 and the Secretary of Public Welfare determines to be 29 appropriate. 30 "Secretary." The Secretary of Public Welfare of the 20010H1658B2040 - 4 -
1 Commonwealth. 2 "TANF." Temporary assistance for needy families. 3 CHAPTER 3 4 GRANTS TO LOCAL GOVERNMENTS 5 Section 301. Direct grants. 6 (a) General rule.--The department is authorized to make 7 grants to any local government for construction, including 8 demolition and other site preparation activities, renovation, 9 repair, restoration or other improvement of local public works 10 projects, including those public works projects of local 11 governments for which Federal financial assistance is 12 authorized. To the extent appropriate, the department may 13 coordinate with other Federal, State or local agencies in 14 assessing grant requests and in providing appropriate levels of 15 support. 16 (b) Duty of department.--The department shall enter into a 17 letter of intent with the appropriate Federal, State or local 18 agencies to assist in developing the program provided for in 19 this act. 20 (c) Termination of grants.--No new grants shall be made 21 under this section after the expiration of any three-consecutive 22 month period during which the unemployment rate remained below 23 5% for each such month, or after September 30, 2003, whichever 24 occurs first. 25 Section 302. Allocation of funds and preferences. 26 (a) Allocation of funds.--The department shall allocate 5% 27 of the TANF block grant for the administration and 28 implementation of the program provided for in this act. The 29 remainder shall be allocated as follows: 30 (1) After the set-aside required by paragraphs (2) and 20010H1658B2040 - 5 -
1 (3), 60% of the funds shall be allocated among counties on 2 the basis of the ratio that the number of unemployed persons 3 in each county bears to the total number of unemployed 4 persons in all counties, and 40% of the funds shall be 5 allocated among those counties with an average unemployment 6 rate for the preceding six-month period in excess of 6% on 7 the basis of the relative severity of unemployment in each 8 county, except that no county shall be allocated less than 9 .75% or more than 12% of the funds for local public works 10 projects within the county. 11 (2) No less than 10% of each county's allocations shall 12 be set aside and shall be expended only for grants for public 13 works projects under this chapter for local units of general 14 government with populations under 10,000. 15 (3) Up to .75% of the total grant award will be 16 available for project development and preparation and for 17 ongoing project administration. This allocation shall be 18 available for local units of government defined as 19 nonentitlement under the Housing and Urban Development 20 Community Development Block Grant Program. The allocation 21 shall not exceed $15,000 for any single grant award. 22 (b) Preferences.-- 23 (1) In making grants, the department shall give priority 24 to public works projects of local governments that will 25 employ those persons adversely affected by recent changes in 26 Federal and State laws relating to public and other 27 assistance. 28 (2) In making grants, the department shall also give 29 priority to any public works projects requested by a special 30 purpose unit of local government which is endorsed by a 20010H1658B2040 - 6 -
1 general purpose local government within the county. 2 (3) A project requested by a school district shall be 3 accorded the full priority and preference to public works 4 projects of local governments provided in this subsection. 5 (4) A project that creates or adds to an applied 6 research facility at an institution of higher education, and 7 that facility is intended to promote the development of new 8 products and processes, or that, the department determines, 9 will improve the competitiveness of industry shall be 10 accorded full priority and preference. For projects under 11 this section, matching funds requirements shall be waived if 12 the company or companies and school involved commit, in the 13 department's determination, to undertake all future equipment 14 and maintenance expenses. 15 (c) High unemployment rates.-- 16 (1) In making grants under this chapter, if for the 12 17 most recent consecutive months the average unemployment rate 18 in the construction trades is equal to or exceeds 8%, the 19 department shall: 20 (i) expedite and give priority to applications 21 submitted by local governments having unemployment rates 22 for the 12 most recent consecutive months in excess of 23 the State unemployment rate in the construction trades; 24 and 25 (ii) shall give priority thereafter to applications 26 submitted by local governments having average 27 unemployment rates for construction trades for the 12 28 most recent consecutive months in excess of 6%, but less 29 than the State unemployment rate. 30 (2) Information regarding unemployment rates shall be 20010H1658B2040 - 7 -
1 furnished by the Department of Labor and Industry working in 2 concert with the appropriate Federal agency to provide this 3 information on a timely (10-day turnaround) basis. 4 (d) State and local prioritization of applications.-- 5 Whenever a local government submits applications for grants 6 under this chapter for two or more projects, the local 7 government shall submit as part of the applications its priority 8 for each project. 9 (e) Localization of unemployment determinations.--The local 10 unemployment rate may, for purposes of this chapter, and upon 11 request of the applicant, be based upon the unemployment rate of 12 any community or neighborhood (defined without regard to 13 political or other subdivisions or boundaries) within the 14 jurisdiction of the local government. 15 Section 303. Rules, regulations and procedures. 16 (a) General rule.--The department shall, not later than 90 17 days after the effective date of this act, publish in the 18 Pennsylvania Bulletin as proposed rulemaking those rules and 19 regulations, including application forms, necessary to carry out 20 this chapter. These rules and regulations shall assure that 21 adequate consideration is given to the relative needs of various 22 areas of this Commonwealth. The department shall consider among 23 other factors: 24 (1) The severity and duration of employment in proposed 25 project areas. 26 (2) The income levels and extent of underemployment in 27 proposed project areas. 28 (3) The extent to which proposed project areas will 29 contribute to increased employment in the construction trades 30 and future economic growth. 20010H1658B2040 - 8 -
1 (4) The needs of proposed project areas to recover from 2 natural or other disaster which has affected the 3 infrastructure of the area. 4 (b) Consideration of applications.--The department shall 5 make a final determination with respect to each application for 6 a grant not later than the 60th day after the date the 7 department receives the application. 8 (c) Consideration of construction industry employment.--For 9 purposes of this section, in considering the extent of 10 unemployment or underemployment, the department shall consider 11 the amount of unemployment or underemployment in the 12 construction and construction-related industries. 13 Section 304. General limitations. 14 (a) Acquisition of land.--No part of any grant shall be used 15 for the acquisition of any interest in real property. 16 (b) Maintenance costs.--Nothing in this chapter shall be 17 construed to authorize the payment of routine scheduled 18 maintenance costs in connection with any projects constructed in 19 whole or in part with financial assistance provided under this 20 chapter. 21 (c) On-site labor.--Grants made by the department shall be 22 made only for projects for which the applicant gives 23 satisfactory assurances, in such manner and form as may be 24 required by the department and in accordance with those terms 25 and conditions as the department may prescribe, that, if funds 26 are available, onsite labor work can begin within 90 days of 27 project approval. 28 (d) Contracting.-- 29 (1) No part of the construction, including demolition 30 and other site preparation activities, renovation, 20010H1658B2040 - 9 -
1 restoration, repair or other improvement of any public works 2 project for which a grant is made shall be performed directly 3 by any department, agency or instrumentality of the 4 Commonwealth or any local government. 5 (2) Construction of each project shall be performed by 6 contract awarded by competitive bidding, unless the 7 department shall affirmatively find that, under the 8 circumstances relating to the project, an alternative method 9 is in the public interest. 10 (3) Contracts for the construction of each project shall 11 be awarded only on the basis of the lowest responsible bid 12 submitted by a bidder meeting the established criteria of 13 responsibility, subject to subsection (c). 14 (4) No requirement or obligation shall be imposed as a 15 condition precedent to the award of a contract to a bidder 16 for a project or to the department's concurrence in the award 17 of a contract to the bidder, unless the requirement or 18 obligation is otherwise lawful and is specifically set forth 19 in the advertised specifications or in this act. 20 (e) Environmental safeguards.--All local public works 21 projects carried out under this chapter shall comply with all 22 relevant Federal, State and local environmental laws and 23 regulations. 24 (f) Buy American.--If a local public works project carried 25 out with financial assistance under this chapter would be 26 eligible for Federal financial assistance under provisions of 27 law other than this chapter and, under such other provisions of 28 law, would be subject to the Buy American Act of 1988 (Public 29 Law 100-418, 102 Stat. 1543), or similar requirements, such 30 project shall be subject to The Exchange Rates and International 20010H1658B2040 - 10 -
1 Economic Policy Coordination Act of 1988. 2 (g) Minority participation.--If a local public works project 3 carried out with financial assistance under this chapter is 4 eligible for Federal financial assistance under provisions of 5 law other than this chapter and, under such other provision of 6 law, is subject to any minority participation requirement, the 7 project shall be subject to such requirement under this chapter, 8 in the same manner and to the same extent as such project would 9 be subject to those requirements under such other provisions of 10 law. 11 (h) Applicability of laws regarding individuals with 12 disabilities.--Sections 504 and 505 of the Rehabilitation Act of 13 1973 (Public Law 93-112, 29 U.S.C. § 701 et seq.) and the 14 Americans With Disabilities Act of 1990 (Public Law 101-336, 104 15 Stat. 327) shall apply to local public works projects carried 16 out under this act. The Governor, with the approval of the 17 Auditor General and the State Treasurer, shall transfer to the 18 Department of Labor and Industry such funds as may become 19 available under Subchapter B, and shall allocate such funds into 20 equal shares for the following fiscal years: 21 July 1, 2001, to June 30, 2002 22 July 1, 2002, to June 30, 2003 23 July 1, 2003, to June 30, 2004 24 CHAPTER 5 25 PUBLIC WORKS AND JOB RESTORATION 26 Section 501. Purpose. 27 It is the purpose of this chapter to develop and provide 28 useful and productive opportunities for unemployed and 29 underemployed people, especially young people, through payments 30 from the funds allocated for this purpose, for labor and related 20010H1658B2040 - 11 -
1 costs associated with the construction, repair or rehabilitation 2 of essential community and educational facilities; with the 3 reclamation, improvement and conservation of public lands; and 4 with the creation, repair, rehabilitation and restoration of 5 public safety, public transportation, health, social services 6 and recreation facilities and other activities necessary to the 7 public welfare. 8 Section 502. Eligible participants. 9 (a) General eligibility requirements.--An individual shall 10 be eligible to participate in a program, project or activity 11 receiving funds under this chapter only if the individual meets 12 all of the following: 13 (1) Is a resident or citizen of this Commonwealth. 14 (2) Is an unemployed individual at the time of 15 enrollment. 16 (3) Has been unemployed for at least 30 days immediately 17 preceding the date of such enrollment, except as otherwise 18 provided in subsection (e) or (f) and section 902. 19 Individuals may be certified for purposes of this section under 20 procedures agreed to by the eligible administrative entity and 21 established in regulations established by the department. 22 (b) Duration of eligibility.--No individual who is eligible 23 under subsection (a) shall receive wages from funds made 24 available under this chapter in excess of 52 weeks in any two- 25 year period, in accordance with the following subsidy schedule: 26 (1) Up to 75% of the participant's wages may be 27 subsidized for the first 26 weeks. 28 (2) Up to 50% of the participant's wages may be 29 subsidized for the next 13 weeks. 30 (3) Up to 25% of the participant's wages may be 20010H1658B2040 - 12 -
1 subsidized for the next 13 weeks. 2 (c) Priority for participation.--In the selection of 3 participants for activities under this chapter, priority shall 4 be given to individuals who: 5 (1) At the time of selection, have exhausted or are 6 otherwise not eligible for unemployment benefits, 7 particularly: 8 (i) Those individuals who have been unemployed for 9 the longest periods of time preceding the date of their 10 selection. 11 (ii) Those residing in households in which no other 12 member is employed on a full-time basis. 13 (iii) Those individuals who are or were qualified 14 participants in aid to families with dependent children 15 (AFDC) or in a program under the Trade Adjustment Act of 16 1979 (Public Law 96-39, 93 Stat. 144) or other Federal 17 program providing job reemployment assistance due to base 18 closure, factory closure or other job loss due to 19 economic factors. 20 (iv) Those young people who are unemployed and who 21 reside in communities with the highest levels of 22 unemployment or underemployment. 23 (2) Except for individuals described in subparagraph 24 (iv), have been employed within the past two years by the 25 employer that is providing the subsidized job position. 26 (d) Special consideration for recipients of public 27 assistance.--Entities receiving funds under this chapter shall 28 give special consideration to applicants who are: 29 (1) Custodial parents of children who are recipients of 30 assistance under Title IV of the Social Security Act (49 20010H1658B2040 - 13 -
1 Stat. 620, 42 U.S.C. § 301 et seq.). 2 (2) Noncustodial parents of nondependent children who 3 are recipients of assistance under Title IV of the Social 4 Security Act, but only if the applicants agree in writing to 5 the withholding of an appropriate portion of their wages to 6 be applied to the support of the children under any child 7 support order. 8 (e) Special consideration for veterans.--With regard to 9 services to veterans provided under section 701(a)(3)(xv), 10 special consideration in selecting participants for employment 11 in such activities should be given to veterans who otherwise 12 meet the eligibility requirements in this section. 13 (f) Special consideration for public assistance 14 recipients.--Special consideration shall be given to current and 15 former recipients of public assistance and to current and former 16 recipients to aid to families with dependent children. 17 (g) Equal employment opportunities.--In certifying eligible 18 participants under subsection (a) and in referring them for 19 employment, the administrative entity shall be responsible for 20 ensuring equal employment opportunities and the full 21 participation of traditionally underrepresented groups, 22 including women and racial and ethnic minorities, in employment 23 provided with funds made available under this subchapter. Each 24 recipient of funds shall be responsible for ensuring such 25 opportunities and full participation in the selection of 26 eligible participants for such employment. 27 Section 503. Limitation on use of funds. 28 (a) Reservation for wages and benefits.--Not less than 75% 29 of the funds made available to any recipient from funds 30 appropriated for any fiscal year shall be used to provide for 20010H1658B2040 - 14 -
1 wages and related employment benefits to eligible participants 2 for work which the recipient certifies has been performed in one 3 or more of the activities authorized under this act. 4 (b) Limitation on administrative costs.--No more than 10% of 5 the funds provided to any recipient from funds appropriated for 6 any fiscal year may be used for the cost of administration. 7 (c) Acquisition of tools, equipment and materials.--The 8 remainder of the funds provided to any recipient from funds 9 appropriated for the fiscal year, after compliance with 10 subsection (a) and deduction of costs of administration 11 permitted by subsection (b), may be used for the acquisition of 12 supplies, tools, equipment and other materials directly related 13 to the purpose for which the funds were provided. 14 (d) Use of other funds.-- 15 (1) Nothing in this act shall be construed to preclude 16 or limit the payment of the costs of administration or the 17 costs of supplies, tools, equipment or other materials 18 directly related to the project or program being funded, 19 either in whole or in part, from Federal sources such as 20 section 106 of the Housing and Community Development Act of 21 1974 (Public Law 93-383, 88 Stat. 139) or from non-Federal 22 sources other than this act. 23 (2) In designating projects under this act, the 24 recipient shall, to the extent feasible, ensure that 25 supplies, tools, equipment or other materials purchased or 26 procured in accordance with paragraph (1) have been 27 manufactured, mined or produced in the United States, unless 28 the supply, tool, equipment or material is not available in 29 reasonable quantity and quality as required to fulfill the 30 needs of the project or activity. 20010H1658B2040 - 15 -
1 (e) Training cost exception.--Notwithstanding subsection 2 (a), funds available may be used for costs associated with 3 training and related support for a number of participants if: 4 (1) Employers have made commitments to fill an equal 5 number of unsubsidized jobs with participants who have 6 successfully completed training. 7 (2) The recipient has entered into an agreement for the 8 provision of such training to participants with one or more 9 of the following: an apprenticeship training program which is 10 certified by the Department of Labor for the construction 11 industry and meets Federal standards for apprenticeship 12 training, an administrative entity designated under section 13 103(b)(1)(B) of the Job Training Partnership Act (Public Law 14 97-300, 29 U.S.C. § 1513), a local educational agency, a 15 vocational education school, an institution of higher 16 education, a community-based organization, a community action 17 agency, a community development corporation or other 18 qualified public or private nonprofit provider of training 19 services. 20 (3) The costs associated with providing such training 21 and related support to any participant from funds available 22 under this act do not exceed, on a weekly basis, the maximum 23 wage which may be paid with funds available under this act. 24 Apprenticeship training shall be included in the project 25 agreements negotiated with the building trades councils as 26 outlined in section 304(d)(2). Minority participation 27 requirements as specified in this act shall be applied to such 28 project agreements. 29 (f) Salary limitation.--Funds available for the cost of 30 administration pursuant to subsection (b) may not be used to pay 20010H1658B2040 - 16 -
1 salaries or wages to administrative or supervisory employees as 2 follows: 3 (1) at a rate that is greater than the rate of the 4 salaries or wages paid to employees performing comparable 5 functions for the same employer; or 6 (2) if there is no such comparable rate, at a rate which 7 is in excess of the rate of pay prescribed for GS-13 of the 8 General Schedule with respect to employees of the Federal 9 Government. 10 CHAPTER 11 11 MISCELLANEOUS PROVISIONS 12 Section 1101. Effective date. 13 This act shall take effect in 60 days. C15L14SFL/20010H1658B2040 - 17 -