See other bills
under the
same topic
                                                      PRINTER'S NO. 1894

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1554 Session of 1997


        INTRODUCED BY MYERS, THOMAS, BELARDI, BELFANTI, PRESTON, MELIO,
           CARN, YOUNGBLOOD, MANDERINO, M. COHEN, CURRY, JOSEPHS,
           GRUITZA, PISTELLA, BOSCOLA, A. H. WILLIAMS, RAMOS,
           WASHINGTON, STURLA AND OLIVER, JUNE 3, 1997

        REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, JUNE 3, 1997


                                     AN ACT

     1  Creating the Jobs Plus Program; providing for further duties of
     2     the Department of Public Welfare; establishing the Jobs Plus
     3     Advisory Board and providing for its powers and duties;
     4     establishing Jobs Plus implementation councils and the Jobs
     5     Plus Program Fund; and providing for certain employer
     6     contributions and reimbursement and for Federal and State
     7     participation and funding.

     8                         TABLE OF CONTENTS
     9  Chapter 1.  Preliminary Provisions
    10  Section 101.  Short title.
    11  Section 102.  Legislative intent.
    12  Section 103.  Definitions.
    13  Chapter 3.  Education and Training
    14  Section 301.  Education and training standards.
    15  Section 302.  Role of departments.
    16  Section 303.  Supportive services.
    17  Section 304.  Contract.
    18  Chapter 5.  Federal Provisions
    19  Section 501.  Exemptions and waivers.

     1  Section 502.  Changes to rules.
     2  Section 503.  Plan amendments.
     3  Section 504.  Federal waivers.
     4  Section 505.  Federal approval.
     5  Chapter 7.  Board and Councils
     6  Section 701.  Jobs Plus Advisory Board.
     7  Section 702.  Jobs plus implementation councils.
     8  Section 703.  Jobs Plus Program Fund.
     9  Chapter 9.  Employers
    10  Section 901.  Utilization of program participants.
    11  Section 902.  Maximum number.
    12  Section 903.  Authority of department.
    13  Section 904.  Procedure.
    14  Section 905.  Ineligible persons.
    15  Section 906.  Unemployment compensation.
    16  Section 907.  Temporary assistance for needy families.
    17  Section 908.  Conditions of employment.
    18  Section 909.  Duty of employers.
    19  Section 910.  Medical assistance.
    20  Section 911.  Individual Education Account.
    21  Section 912.  Tax provisions.
    22  Section 913.  Food stamps.
    23  Chapter 11.  Evaluation of Program
    24  Section 1101.  Annual report.
    25  Chapter 21.  Miscellaneous Provisions
    26  Section 2101.  Effective date.
    27     The General Assembly of the Commonwealth of Pennsylvania
    28  hereby enacts as follows:
    29                             CHAPTER 1
    30                       PRELIMINARY PROVISIONS
    19970H1554B1894                  - 2 -

     1  Section 101.  Short title.
     2     This act shall be known and may be cited as the Public
     3  Service Jobs Act.
     4  Section 102.  Legislative intent.
     5     (a)  Intent.--It is the intent of the General Assembly to
     6  promote greater economic self-sufficiency among families and
     7  workers by:
     8         (1)  Increasing the employability of unemployed and
     9     underemployed persons through on-the-job training.
    10         (2)  Invigorating the public-private work force
    11     partnership through development of jobs with both private
    12     for-profit and public employers.
    13         (3)  Insuring that program participants through their
    14     employment development plans have opportunities to improve
    15     work skills, education and employability and establish recent
    16     work histories with work site training, mentoring, individual
    17     education accounts and provision of necessary support service
    18     benefits that include child care, workers' compensation, job
    19     placement and a guarantee that participation in the Jobs Plus
    20     Program does not result in reductions of net income to
    21     participants.
    22     (b)  Program.--The Jobs Plus Program is created as a program
    23  in which residents of this Commonwealth shall, with the aid of
    24  the temporary assistance for needy families program, be provided
    25  jobs and paid in a way that promotes self-sufficiency and
    26  encourages unemployed persons to improve their position in the
    27  work force.
    28  Section 103.  Definitions.
    29     The following words and phrases when used in this act shall
    30  have the meanings given to them in this section unless the
    19970H1554B1894                  - 3 -

     1  context clearly indicates otherwise:
     2     "Board."  The Jobs Plus Advisory Board established in this
     3  act.
     4     "Department."  The Department of Public Welfare of the
     5  Commonwealth.
     6     "Fund."  The Jobs Plus Program Fund established in section
     7  703.
     8     "Jobs Plus Program" or "program."  The Jobs Plus Program
     9  created by this act.
    10     "Local government."  Any political subdivision.
    11     "Secretary."  The Secretary of Public Welfare of the
    12  Commonwealth.
    13     "TANF."  Temporary Assistance for Needy Families.
    14                             CHAPTER 3
    15                       EDUCATION AND TRAINING
    16  Section 301.  Education and training standards.
    17     The objective of developing these standards is to ensure each
    18  of the regions in this Commonwealth has basic guidelines to
    19  operate from while beginning to enable public assistance
    20  recipients, the underemployed and the unemployed to secure
    21  permanent full-time unsubsidized jobs, preferably in the private
    22  sector. These positions will be with wages and benefits that are
    23  adequate to support their families.
    24  Section 302.  Role of departments.
    25     (a)  Private employers.--The Department of Public Welfare, in
    26  consultation with the Department of Community and Economic
    27  Development, shall develop a plan to recruit private sector
    28  employers in each region to offer employment to persons who have
    29  completed their training under this program.
    30     (b)  Public service employment.--
    19970H1554B1894                  - 4 -

     1         (1)  Each secretary individually shall develop
     2     contingency plans to create public service employment in the
     3     various regions of this Commonwealth if private sector
     4     employers are reluctant to participate.
     5         (2)  These plans must be developed with the targets of
     6     the temporary assistance for needy families as the
     7     guidelines. As these plans are developed the secretaries must
     8     make sure that assignment of a person or persons to a public
     9     service job in a nonprofit agency that placement not result
    10     in the displacement of regular employees.
    11  Section 303.  Supportive services.
    12     The Jobs Plus Program shall provide supportive services to a
    13  program participant as assessed during the development of their
    14  plan. The supportive services shall include, but not be limited
    15  to, one or more of the following:
    16         (1)  Day-care services for the participant's child to be
    17     provided for up to one year. As a result of earned income,
    18     these services can be provided through an alternative child-
    19     care arrangement agreed to by the participant and the program
    20     representative.
    21         (2)  In each county or region, the designated
    22     representative responsible for the development of the
    23     participant's plan shall conduct an assessment of the health-
    24     related, social, educational and vocational background of the
    25     participant's family unit in preparing the participant's
    26     plan.
    27         (3)  Transportation services shall be provided by the
    28     program or through an allowance or other means by which the
    29     participant may purchase transportation.
    30         (4)  The secretaries shall establish staff training
    19970H1554B1894                  - 5 -

     1     programs necessary to effectively carry out the goals and
     2     objectives of this act.
     3         (5)  The Secretary of Labor and Industry shall establish
     4     regulations concerning the appropriateness of work site
     5     assignments.
     6  Section 304.  Contract.
     7     A contract shall be made between each applicant and the Jobs
     8  Plus Program outlining the rights and responsibilities of each
     9  party in reference to an educational, vocational and employment
    10  plan developed in cooperation between one applicant and a
    11  program representative. The contract shall be written in the
    12  language in which the applicant is conversant and on a level of
    13  that language that is understandable to the applicant.
    14                             CHAPTER 5
    15                         FEDERAL PROVISIONS
    16  Section 501.  Exemptions and waivers.
    17     The Governor and the department shall work diligently to
    18  obtain all exemptions and waivers from and amendments to Federal
    19  Statutes, rules and regulations necessary to implement the
    20  program at the earliest possible date.
    21  Section 502.  Changes to rules.
    22     Upon obtaining all such exemptions, waivers and amendments,
    23  the department, with the advice of the board, shall adopt such
    24  changes to current rules as may be required to implement the
    25  program.
    26  Section 503.  Plan amendments.
    27     The department, with the advice of the board, shall amend the
    28  State plans program to incorporate the programs into the Jobs
    29  Plus Program for the regions or counties, and shall obtain
    30  Federal approval of plan amendments.
    19970H1554B1894                  - 6 -

     1  Section 504.  Federal waivers.
     2     The department, with the advice of the board, shall obtain
     3  any exemptions and waivers from Federal Statutes and regulations
     4  necessary to qualify the program as a federally approved
     5  demonstration project under section 17 of the Food Stamp Act of
     6  1977 (Public Law 88-525, 7 U.S.C. § 2011 et seq.) and section
     7  1115 of the Social Security Act (49 Stat. 620, 42 U.S.C. § 1315
     8  et seq.).
     9  Section 505.  Federal approval.
    10     The purpose of this chapter is to facilitate implementation
    11  of the program at the earliest possible date and with maximum
    12  Federal financial participation. Therefore, the department is
    13  directed to expedite the acquisition of Federal waiver and
    14  amendment approvals, and the adoption of necessary statute
    15  amendments in close and continuous coordination with appropriate
    16  Federal officials and to prepare and submit completely and in a
    17  timely manner all forms and data required by those officials.
    18  The department, with the advice of the board, is authorized to
    19  make such changes to the program as are necessary to achieve
    20  Federal waiver approval. Any such changes should be, in the
    21  judgment of the secretary, the fewest necessary to achieve
    22  Federal approval for the program. Such changes must maintain the
    23  general purpose and effect of the program described in this act.
    24  If changes to the program required to gain waiver approval would
    25  be too extensive to maintain the general purpose and effect of
    26  the program, the department, with the advice of the board, shall
    27  seek the amendments to Federal statutes that are required for
    28  implementation of the program.
    29                             CHAPTER 7
    30                         BOARD AND COUNCILS
    19970H1554B1894                  - 7 -

     1  Section 701.  Jobs Plus Advisory Board.
     2     (a)  Establishment, membership and terms.--The Jobs Plus
     3  Advisory Board is hereby established to advise the department in
     4  the direction and administration of the program. The board shall
     5  have members, consisting of representatives of the business
     6  community and former recipients of the aid to dependent children
     7  program, the food stamp program or the unemployment insurance
     8  program. Members shall serve three-year terms.
     9     (b)  Appointment.--The Governor shall appoint the members and
    10  the chair. These appointments shall include one from a list of
    11  three suggested by the President pro tempore of the Senate, one
    12  from a list of three suggested by the Minority Leader of the
    13  Senate, two from a list of six suggested by the Speaker of the
    14  House of Representatives, one from a list of three suggested by
    15  the Minority Leader of the House of Representatives, and six
    16  employed former recipients of aid to families with dependent
    17  children who are recommended by the secretary.
    18     (c)  Meetings.--The board shall meet monthly with the
    19  Secretary of Public Welfare and the Secretary of Labor and
    20  Industry.
    21     (d)  Reports.--The board shall report at least annually to
    22  the Governor and the General Assembly on the status and progress
    23  of the program. The chairperson of the board shall have the
    24  additional duty to work with and coordinate the local councils
    25  created in section 702.
    26  Section 702.  Jobs plus implementation councils.
    27     A jobs plus implementation council shall be established in
    28  each county to assist the board and the Department of Public
    29  Welfare in the administration of the program and to allow local
    30  flexibility in dealing with the particular needs of the citizens
    19970H1554B1894                  - 8 -

     1  of each county. Each council shall be primarily responsible for
     2  recruiting and encouraging participation of employment providers
     3  in the county. Each council shall be composed of seven members
     4  who shall be appointed by the county commissioners in each
     5  county. Council members shall be residents of the county in
     6  which they are appointed and shall serve three-year terms. At
     7  least two members shall be current or former recipients of the
     8  aid to dependent children program, the food stamp program or the
     9  unemployment insurance program.
    10  Section 703.  Jobs Plus Program Fund.
    11     (a)  Establishment and purpose.--There is hereby established
    12  a separate account in the State Treasury to be known as the Jobs
    13  Plus Program Fund. All moneys in the fund are continuously
    14  appropriated to the Department of Public Welfare and shall be
    15  used exclusively to meet the necessary expenditures of the
    16  program, including program wage reimbursements to participating
    17  employers, temporary assistance for needy families, food stamp
    18  allotments, jobs program payments and employment-related day-
    19  care payments to eligible residents and administrative costs
    20  directly associated with the operation of the program. No less
    21  than quarterly, the Department of Public Welfare shall meet with
    22  the board to review the cost effectiveness of the program and
    23  shall take any necessary action to modify or suspend the program
    24  to maintain cost neutrality.
    25     (b)  Individual Education Account.--The Individual Education
    26  Account is established as part of the Jobs Plus Program Fund in
    27  order to improve the position of Jobs Plus participants in the
    28  work force by increasing their access to continuing education.
    29  Employer contributions to this account under section 911 shall
    30  be used to pay for the further education as provided in that
    19970H1554B1894                  - 9 -

     1  section.
     2     (c)  Fund generally.--Five percent of all funds appropriated
     3  for expenditure by or apportioned to the department for
     4  operation of the temporary assistance for needy families
     5  program, the job opportunities and basic skills program, and for
     6  employment-related day care in the counties shall accrue to the
     7  fund. The fund shall be held and administered by the State
     8  Treasurer in the manner provided by law for the administration
     9  of State moneys. All income earned on moneys in the fund shall
    10  be credited to and deposited in the fund to the extent permitted
    11  by Federal and State law.
    12                             CHAPTER 9
    13                             EMPLOYERS
    14  Section 901.  Utilization of program participants.
    15     The department shall adopt by rule a method to determine
    16  which employers, including public and private sector employers,
    17  shall have the opportunity to utilize program participants. No
    18  employer is required to participate in the program. In the event
    19  that there are unassigned participants whom no employer desires
    20  to utilize, they may be assigned to work for a public agency.
    21  Section 902.  Maximum number.
    22     The maximum number of program participants that any employer
    23  is authorized to receive at any one time shall not exceed 10% of
    24  the total number of the employer's employees. However, each
    25  employer may receive one participant. The department may waive
    26  the limit in special circumstances.
    27  Section 903.  Authority of department.
    28     (a)  Certain employers excluded.--The department by rule may:
    29         (1)  Establish criteria for excluding employers from
    30     participation for failure to abide by program requirements or
    19970H1554B1894                 - 10 -

     1     other demonstrated unwillingness to comply with the stated
     2     intent of the program.
     3         (2)  Provide that employers that have shown a pattern of
     4     terminating participants prior to the completion of training
     5     or of not offering unsubsidizied employment to participants
     6     who have successfully completed training with that employer
     7     shall be ineligible to receive additional participants.
     8     (b)  Jobs.--The department shall insure that jobs made
     9  available to program participants shall:
    10         (1)  Not require work in excess of 40 hours per week.
    11         (2)  Be in conformity with section 3304(a)(5) of the
    12     Federal Unemployment Tax Act (Public Law 99-514, 26 U.S.C. §
    13     3301 et seq.)
    14         (3)  Not be used to displace regular employees nor to
    15     fill unfilled positions previously established.
    16         (4)  Not pay a wage that is substantially less than the
    17     wage paid for similar jobs in the local economy with
    18     appropriate adjustments for experience and training.
    19     (c)  Eligible individuals.--Individuals eligible for the
    20  program shall be limited to those who are:
    21         (1)  Adults and caretaker relatives who are receiving aid
    22     to dependent children benefits.
    23         (2)  Adult food stamp program recipients except as
    24     described in section 905(7).
    25         (3)  Unemployment compensation recipients.
    26         (4)  Unemployed noncaretaker parents of children who are
    27     receiving aid to dependent children benefits.
    28  Section 904.  Procedure.
    29     (a)  Job applicants.--Individuals desiring work through the
    30  program shall contact the nearest county assistance office
    19970H1554B1894                 - 11 -

     1  serving the county in which they reside if they are temporary
     2  assistance for needy families or food stamp program applicants
     3  or recipients. Unemployment insurance applicants or recipients
     4  may gain access to the program through their local State
     5  employment office.
     6     (b)  Employment development plan.--With input from the
     7  participant, case workers shall prepare an employment
     8  development plan designed to assist the participant in removing
     9  barriers to employment, acquiring work skills and obtaining
    10  unsubsidized employment. The case worker shall periodically
    11  review the employment development plan and assess participant
    12  progress in accordance with rules for the program.
    13     (c)  Job inventory.--With the assistance of the local council
    14  and the board, the department shall develop a job inventory of
    15  sufficient size to accommodate all of the participants who
    16  desire to work in the program. In consultation with the
    17  participant, the department shall try to match the profile of a
    18  participant with the needs of an employer when assigning a
    19  participant to work with the employer.
    20     (d)  Termination.--Either the employer or the participant may
    21  terminate the assignment by contacting the appropriate
    22  department office. In such event, the department shall reassess
    23  the needs of the participant and assign the participant to
    24  another program placement or another program component and, at
    25  the employer's request, provide the employer with another
    26  participant.
    27     (e)  Payments.--The department shall pay placement and
    28  barrier removal payments from the fund as necessary to enable
    29  participation in Jobs Plus.
    30     (f)  Job search.--
    19970H1554B1894                 - 12 -

     1         (1)  If after six months of employment under the Personal
     2     Responsibility and Work Opportunity Reconciliation Act of
     3     1996 (Public Law 104-193, 110 Stat. 2105) or the employment
     4     provision of the act of June 13, 1967 (P.L.31, No.21), known
     5     as the Public Welfare Code, a person has not been hired for
     6     an unsubsidized job, the employer shall allow the worker to
     7     undertake eight hours of job search per week. Participating
     8     employers shall consider such time as hours worked for the
     9     purposes of paying wages.
    10         (2)  If after 12 months in a placement a participant has
    11     not been hired for an unsubsidized position, the placement
    12     shall be terminated and the case worker shall reassess the
    13     participant's employment development plan.
    14     (g)  Volunteers.--The department shall accept eligible
    15  volunteers into the program prior to mandating program
    16  participation by eligible persons.
    17     (h)  Preference schedule.--Assignment of participants to
    18  available jobs shall be made on the basis of a preference
    19  schedule developed by the department, with priority given to
    20  employing nonworking parents of children receiving TANF, food
    21  stamp recipients or unemployment compensation recipients, in
    22  that order.
    23  Section 905.  Ineligible persons.
    24     Notwithstanding any other provision of this act, program jobs
    25  shall not be offered to the following groups of persons:
    26         (1)  Teenage custodial parents working to receive their
    27     General Educational Development certificate or high school
    28     diploma.
    29         (2)  Persons determined by the department to require
    30     substance abuse treatment prior to job placement.
    19970H1554B1894                 - 13 -

     1         (3)  Persons determined by the department to be
     2     permanently or temporarily incapacitated and persons who are
     3     primary caregivers to such persons.
     4         (4)  Food stamp applicants or recipients who are employed
     5     full time or are food-stamp-eligible college students
     6     enrolled full time in an institution of higher education or
     7     enrolled half time in an institution of higher education and
     8     working at least 20 hours per week.
     9         (5)  TANF recipients who have not completed both a
    10     lifeskills class and requirements for a General Educational
    11     Development certificate or high school diploma, except when
    12     approved programs to provide life skills and a General
    13     Educational Development certificate are provided to the
    14     participant at the worksite.
    15         (6)  Teenage persons who have not received a General
    16     Educational Development certificate or high school diploma.
    17         (7)  Food stamp recipients in the counties who are
    18     eligible for Supplemental Security Income benefits or other
    19     ongoing Federal or State maintenance benefits based on age or
    20     disability.
    21         (8)  Persons for whom suitable child care arrangements
    22     are necessary but not available.
    23         (9)  Persons for whom transportation is not available,
    24     persons who live in remote areas or persons who would be
    25     required to commute for more than one hour each way, in
    26     accordance with program rules.
    27  Section 906.  Unemployment compensation.
    28     Unemployment compensation recipients may be referred to
    29  available work through the program if the qualifying base year
    30  wages used to establish the claim do not exceed $10,000. If
    19970H1554B1894                 - 14 -

     1  referred, unemployment compensation recipients shall be referred
     2  to the program in accordance with the job referral process used
     3  to refer applicants to available work. When a program job is
     4  offered to an unemployment insurance recipient and the job is
     5  refused, the Department of Labor and Industry shall investigate
     6  the refusal and identify and decide all issues arising
     7  therefrom, including suspension of benefits, in accordance with
     8  the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),
     9  known as the Unemployment Compensation Law.
    10  Section 907.  Temporary assistance for needy families.
    11     TANF and food stamp benefits shall be suspended at the end of
    12  the calendar month in which any employer makes the first wage
    13  payment to a participant who is a custodial parent in a family
    14  that receives TANF or to any adult member of a household
    15  receiving food stamps. Failure of the participant to cooperate
    16  with the requirements of the program shall result in the
    17  participant's removal from the program and the removal of the
    18  needs of the adult or adults from the grant in accordance with
    19  program rules. Rules governing sanctions, hearings or
    20  conciliations for participants in the program shall be the same
    21  as those for the program under this act and the food stamp
    22  program.
    23  Section 908.  Conditions of employment.
    24     (a)  Minimum wage.--Employers shall pay all participating
    25  individuals at least the hourly rate of the Pennsylvania minimum
    26  wage.
    27     (b)  Leave.--Sick leave, holiday and vacation absences shall
    28  conform to the individual employer's rules for new employees.
    29     (c)  Health insurance.--Group health insurance benefits shall
    30  be provided by the employer to program participants if, and to
    19970H1554B1894                 - 15 -

     1  the extent that, Federal or State law requires the employer to
     2  provide such benefits.
     3     (d)  Nature of employment.--All persons participating in the
     4  program shall be considered to be temporary employees of the
     5  individual employer providing the work and shall be entitled
     6  only to benefits required by Federal or State law.
     7     (e)  Work-related injuries.--Employers shall provide workers'
     8  compensation coverage for each program participant.
     9     (f)  Supplemental pay.--In the event that the net monthly
    10  full-time wage paid to a participant would be less than the
    11  level of income from the TANF and the food stamp benefit amount
    12  equivalent that the participant would otherwise receive, the
    13  department shall determine and pay a supplemental payment as
    14  necessary to provide the participant with that level of net
    15  income. The department by rule shall adopt an equivalency scale
    16  to be adjusted for household size and other factors. The purpose
    17  of this equivalency scale is to insure that participants are not
    18  economically disadvantaged in terms of net income by accepting a
    19  job under the program. The department shall determine and pay in
    20  advance supplemental payments to participants on a monthly basis
    21  as necessary to insure equivalent net program wages.
    22  Participants shall be compensated only for time worked.
    23     (g)  Child support.--In addition to, and not in lieu of the
    24  payments provided for under this section, participants shall be
    25  entitled to retain the full child support payments collected by
    26  the department.
    27  Section 909.  Duty of employers.
    28     Program employers shall:
    29         (1)  Endeavor to make program placements positive
    30     learning and training experiences.
    19970H1554B1894                 - 16 -

     1         (2)  Maintain health, safety and working conditions at or
     2     above levels generally acceptable in the industry and no less
     3     than that of comparable jobs of the employer.
     4         (3)  Provide on-the-job training to the degree necessary
     5     for the participants to perform their duties.
     6         (4)  Recruit volunteer mentors from among their regular
     7     employees to assist the participants in becoming oriented to
     8     work and the workplace.
     9         (5)  Sign an agreement for each placement outlining the
    10     specific job offered to the participant and agreeing to abide
    11     by all requirements of the program, including the requirement
    12     that the program not supplant existing jobs. All agreements
    13     shall include provisions noting the employer's responsibility
    14     to repay reimbursements in the event the employer violates
    15     program rules.
    16  Section 910.  Medical assistance.
    17     Program participants who are eligible for federally and State
    18  funded medical assistance at the time they enter the program
    19  shall remain eligible as long as they continue to participate in
    20  the program. In conformity with existing State employment-
    21  related day-care program regulations, child day care shall be
    22  provided for all program participants who require it.
    23  Section 911.  Individual Education Account.
    24     (a)  Employer contributions.--After the participant has
    25  participated in the program for 30 days, in addition to the
    26  participant wage, the employer shall pay $1 for each participant
    27  hour worked into the participant's Individual Education Account.
    28  Contributions to such an account shall be tax deferred or tax
    29  exempt to the extent permitted by Federal and State law. This
    30  contribution shall not be reimbursed by the Jobs Plus Program
    19970H1554B1894                 - 17 -

     1  Fund except as provided in paragraph (b).
     2     (b)  Reimbursement on account of certain employers.--If the
     3  employer hires a participant in a unsubsidized position for at
     4  least 30 days, the Jobs Plus Program Fund shall reimburse one-
     5  half of the employer's contribution to the Individual Education
     6  Account to the employer.
     7     (c)  Access.--Any participant for whom an Individual
     8  Education Account contribution is made shall be eligible for
     9  access to education benefits from that participant's Individual
    10  Education Account at any time after the participant has left the
    11  program and has held a full-time, unsubsidized job for at least
    12  30 days.
    13     (d)  Duty of Pennsylvania Higher Education Assistance
    14  Agency.--When any participant has qualified for use of that
    15  participant's Individual Education Account, an amount equal to
    16  that participant's Individual Education Account balance shall be
    17  transferred to the Pennsylvania Higher Education Assistance
    18  Agency for that participant's use. Only one Individual Education
    19  Account shall be created for any participant. Each account shall
    20  be administered by the Pennsylvania Higher Education Assistance
    21  Fund and shall be used for continuing education and training in
    22  any of the State's community colleges or institutions of higher
    23  education for the participant and the participant's immediate
    24  family.
    25  Section 912.  Tax provisions.
    26     (a)  Subjects of tax.--Program participant wages shall be
    27  subject to Federal and State income taxes, Social Security taxes
    28  and unemployment insurance tax, which shall be withheld and paid
    29  in accordance with Federal and State law. Supplemental payments
    30  made pursuant to section 15(f) shall not be subject to State
    19970H1554B1894                 - 18 -

     1  income taxes and, to the extent allowed by Federal law, shall
     2  not be subject to Federal income taxes and Social Security
     3  taxes.
     4     (b)  Employer reimbursement.--The department shall reimburse
     5  employers for the employer share of Social Security,
     6  unemployment insurance and workers' compensation premiums paid
     7  on behalf of program participants, as well as the minimum wage
     8  earnings paid to program participants by the employer from the
     9  Jobs Plus Program Fund.
    10     (c)  Enforcement.--If the department finds that an employer
    11  has violated any of the rules of the program, the department:
    12         (1)  Shall withhold any amounts due to employers under
    13     this section.
    14         (2)  May seek repayment of any amounts paid to employers
    15     under this section.
    16  Section 913.  Food stamps.
    17     If approval is obtained from the Federal Government for the
    18  program established in this act, the Department of Public
    19  Welfare may distribute food stamp program benefits to any
    20  eligible person in the form of cash rather than coupons.
    21                             CHAPTER 11
    22                       EVALUATION OF PROGRAM
    23  Section 1101.  Annual report.
    24     (a)  Content.--Each year the department shall submit a
    25  written report to the Governor and the General Assembly
    26  containing a full and complete analysis of the program. The
    27  report shall include recommendations from the department and the
    28  board regarding appropriate revisions to the program and the
    29  potential for its permanent implementation in this Commonwealth.
    30     (b)  Conduct of evaluation.--The evaluation of the program
    19970H1554B1894                 - 19 -

     1  shall be conducted by an independent evaluator using a
     2  combination of group comparison, survey and individualized event
     3  and attitude recording techniques. Performance in attaining
     4  program goals in each region shall be matched against
     5  performance using the traditional welfare and employment
     6  characteristics. In addition, the composite performance of the
     7  regions shall be compared to the rest of this Commonwealth. The
     8  evaluation shall include measurements of whether program
     9  participation has improved the quality of life of program
    10  participants. In addition, as a part of the evaluation of the
    11  program, the Department of Labor and Industry shall determine
    12  whether the program has displaced unsubsidized employment
    13  opportunities that would otherwise have been available and
    14  whether the program has had any discernible impact on the
    15  economies or wage levels in individual regions.
    16     (c)  Goals.--The target goals for the program are to reduce
    17  the program eligible in unemployed or underemployed regions by
    18  TANF, food stamp and unemployment compensation caseloads 50% by
    19  the end of the third year of the program and to reduce the costs
    20  associated with these caseloads by 25% over the three-year pilot
    21  period.
    22                             CHAPTER 21
    23                      MISCELLANEOUS PROVISIONS
    24  Section 2101.  Effective date.
    25     This act shall take effect in 60 days.




    D7L67DGS/19970H1554B1894        - 20 -