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        PRIOR PRINTER'S NO. 2070                      PRINTER'S NO. 4290

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1682 Session of 2001


        INTRODUCED BY ROHRER, T. ARMSTRONG, BASTIAN, CLARK, CLYMER,
           CREIGHTON, FORCIER, GABIG, LEH, METCALFE, NICKOL, SCHRODER,
           SEMMEL, E. Z. TAYLOR, WILT, YOUNGBLOOD, ZIMMERMAN,
           L. I. COHEN, ROSS, BIRMELIN, HERSHEY, SAYLOR, WATERS, EGOLF,
           R. STEVENSON AND TURZAI, JUNE 4, 2001

        AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 23, 2002

                                     AN ACT

     1  Amending the act of May 18, 1937 (P.L.665, No.176), entitled "An
     2     act relating to the performance of industrial work in homes;
     3     regulating, and in certain cases prohibiting, industrial
     4     homework; imposing duties, restrictions and liabilities on
     5     industrial home-workers and on persons, partnerships,
     6     associations and corporations, directly or indirectly
     7     furnishing materials and articles to home-workers for
     8     manufacture or work thereon; requiring permits and home-
     9     workers' certificates and prescribing the fees therefor;
    10     conferring powers and imposing duties on the Department of
    11     Labor and Industry; and prescribing penalties," further
    12     providing for legislative purpose, for definitions, for
    13     prohibited homework, for power to prohibit, for employers'
    14     permit, for injunction against continued violations, for
    15     fees, for homeworker's certificate, for records, for
    16     conditions of manufacture, for labels, for duty to inspect
    17     and report and for violations and penalties.

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20     Section 1.  Sections 1 and 3 of the act of May 18, 1937
    21  (P.L.665, No.176), known as the Industrial Homework Law, amended
    22  November 24, 1976 (P.L.1196, No.263), are amended to read:
    23     Section 1.  Legislative Purpose.--This State has long


     1  recognized that employment of men, women and children under
     2  conditions detrimental to health and general welfare results in
     3  injury, not only to the workers immediately affected, but also
     4  to the public interest as a whole. This recognition has produced
     5  a broad program of regulatory legislation to conserve the public
     6  welfare. The continuance of an unregulated industrial homework
     7  system in this State runs counter to that program since it is
     8  usually accompanied by excessively low wages, long and irregular
     9  hours, and unsanitary or otherwise inadequate working quarters.
    10  [In enacting this act, the Legislature stated that industrial
    11  homework was harmful to society as a whole, to the industrial
    12  homework work force, and to workers in factory industries forced
    13  to compete against the lower wages and less salutary working
    14  conditions characteristic of industrial homework. The
    15  Legislature concluded that "industrial homework must eventually
    16  be abolished." It is the aim of this act to achieve that goal,
    17  and eliminate the pernicious influence of industrial homework on
    18  the people of this State, by abolishing industrial homework
    19  except when it is engaged in by certain types of individuals
    20  unable to leave their homes to work, as hereinafter specified.]
    21  The Legislature recognizes that industrial homework must be
    22  regulated in order to prevent potential abuses of such work
    23  situations and recognizes that industrial homework should not be
    24  available to the work force as a whole. However, the Legislature
    25  recognizes that industrial homework opportunities can benefit
    26  society as a whole when they are made available to segments of
    27  this State's work force for whom normal work situations pose an
    28  undue hardship. It is the aim of this act to permit certain
    29  individuals to participate in industrial homework and improve
    30  their economic security.
    20010H1682B4290                  - 2 -

     1     Section 3.  Definitions.--The following words, terms and
     2  phrases, when used in this act, shall have the meanings ascribed
     3  to them in this section, except where the context clearly
     4  indicates a different meaning.
     5     (a)  "Contractor." Any person who for the account or benefit
     6  of an employer[, representative contractor or other person,]
     7  distributes to a home-worker [, or any other person], not
     8  recruited or engaged by such employer, [representative
     9  contractor, or other person,] articles or materials to be
    10  manufactured in a home, and thereafter to be returned to him or
    11  otherwise disposed of in accordance with his directions.
    12     (b)  "Department." The Department of Labor and Industry of
    13  this Commonwealth.
    14     (c)  "Employer." Any person who for his own account or
    15  benefit, directly or indirectly, or through an employe[, agent,
    16  independent contractor, or any other person] or contractor.
    17     (1)  Delivers, or causes to be delivered to another person,
    18  any articles or materials to be manufactured in a home and
    19  thereafter to be returned to him, not for the personal use of
    20  himself or of a member of his family, or thereafter to be
    21  disposed of otherwise in accordance with his directions, or
    22     (2)  Sells to another person, any materials or articles for
    23  the purpose of having such articles or materials manufactured in
    24  a home and of then rebuying such materials or articles after
    25  such manufacture, either by himself, or by someone designated by
    26  him.
    27     (c.1)  "Family." The spouse and children of a home-worker,
    28  and the mother, father, grandmother, and grandfather of a home-
    29  worker and his spouse.
    30     (d)  "Home." Any room, house, apartment, or other premises,
    20010H1682B4290                  - 3 -

     1  whichever is most extensively used, in whole or in part, as a
     2  place of dwelling, and including outbuildings upon premises that
     3  are primarily used as a place of dwelling, where such
     4  outbuildings are under the control of the person dwelling on
     5  such premises.
     6     (e)  "Home-worker." Any person engaged in manufacturing in a
     7  home, articles or materials for an employer[, a representative
     8  contractor,] or a contractor.
     9     (f)  "Industrial Homework." Any manufacture in a home of
    10  articles[,] or materials for an employer[, a representative
    11  contractor,] or a contractor.
    12     (g)  "Manufacture." To prepare, alter, repair, finish, or
    13  process, in whole or in part, or handle in any way connected
    14  with the production, wrapping, packaging, or preparation for
    15  display of an article or materials.
    16     (h)  "Person." An individual, partnership, firm, association,
    17  domestic or foreign corporation, the legal representatives of a
    18  deceased individual, or the receiver, trustee, or successor of
    19  an individual, partnership, association, or corporation.
    20     [(i)  "Representative Contractor." Any person who receives
    21  from an employer, or contractor not within the State, articles
    22  or materials to be distributed by him to any home-worker, or
    23  other person, not recruited or engaged by such employer or
    24  contractor, to be manufactured in a home, and thereafter to be
    25  returned to him, or otherwise disposed of, in accordance with
    26  his directions.]
    27     The singular shall include the plural, and the masculine
    28  shall include the feminine and neuter.
    29     Section 2.  Sections 4 and 5 of the act are amended to read:
    30     Section 4.  Prohibited Homework.--It shall be unlawful to
    20010H1682B4290                  - 4 -

     1  manufacture in a home for an employer[,] or contractor[, or
     2  representative contractor,] any of the following articles, or to
     3  perform in a home, for such persons, any of the following work,
     4  and no permit issued under this act shall be deemed to authorize
     5  such manufacture or the performance of any such work:--
     6     (a)  Articles of food or drink.
     7     (b)  Articles for use in connection with the serving of food
     8  or drink.
     9     [(c)  Toys and dolls.]
    10     (d) Tobacco.
    11     (e)  Drugs and poisons.
    12     (f)  Bandages and other sanitary goods.
    13     (g)  Explosives, fireworks, and articles of like character.
    14     [(h)  The tearing or sewing of rags: Provided, That the word
    15  "rags" shall not be deemed to apply to new remnants, clippings,
    16  or salvages which are the by-products of manufacturing
    17  processes.]
    18     (i)  Articles, the processing of which requires exposure to
    19  substances determined by the department to be hazardous to the
    20  health or safety of persons so exposed.
    21     Section 5.  Power to Prohibit.--(a)  The department shall
    22  have the power, upon its own initiative, to make an
    23  investigation of that portion or branch of any industry which
    24  employs home-workers, in order to determine:
    25     (1)  Whether the wages and conditions of employment are
    26  injurious to the health and welfare of home-workers in such
    27  portion or branch; or
    28     (2)  Whether the wages and conditions of employment
    29  prevailing in such portion or branch have the effect of
    30  rendering unduly difficult the maintenance of existing labor
    20010H1682B4290                  - 5 -

     1  standards, or the observance and enforcement of labor standards
     2  established by law, or regulation for the industry of which such
     3  portion or branch is a part, thus jeopardizing wages or working
     4  conditions of the factory workers in such industry.
     5     (b)  If, [on the basis of information in its possession, with
     6  or without an investigation] after investigation and hearing as
     7  provided in [this] section 6, the department shall find that
     8  industrial homework cannot be continued within any industry
     9  without injuring the health and welfare of the home-workers
    10  within that industry, or without rendering unduly difficult the
    11  maintenance of existing labor standards or the observance and
    12  enforcement of labor standards established by law for the
    13  protection of the factory workers in that industry, the
    14  department shall, by order, require all employers[,
    15  representative contractors,] or contractors in such industry to
    16  discontinue the furnishing within this Commonwealth of articles
    17  or materials for industrial homework, and no permit issued under
    18  this act shall be deemed thereafter to authorize the furnishing
    19  of articles, or materials for industrial homework prohibited by
    20  such order.
    21     [(c)  All power machines used in conduct of industrial
    22  homework shall be guarded in accordance with the laws and
    23  regulations of the Department of Labor and Industry.]
    24     Section 3.  Section 7 of the act, amended November 24, 1976
    25  (P.L.1196, No.263), is amended to read:
    26     Section 7.  Permit Required by Employers [and Representative
    27  Contractors].--Every employer [and every representative
    28  contractor] within this Commonwealth] must procure from the       <--
    29  department an employer's permit. Application for such permit
    30  shall be made on a form prescribed by the department. Such
    20010H1682B4290                  - 6 -

     1  permit shall be in writing, dated when issued, and signed by the
     2  Secretary of Labor and Industry, or his duly authorized
     3  representative. It shall give the name and address of the person
     4  to whom it is issued and shall designate and limit the acts that
     5  are permitted. Such permit shall be valid for a period of one
     6  year from the date of its issuance, unless sooner revoked.
     7     Section 4.  Section 8 of the act, repealed in part April 28,
     8  1978 (P.L.202, No.53), is amended to read:
     9     Section 8.  Injunction against Continued Violations.--
    10  Whenever any employer [or representative contractor] has twice
    11  been found guilty of conducting his business without an
    12  employer's permit, the department may apply to the court for an
    13  injunction, and such court shall upon such application issue an
    14  injunction to restrain such employer [or representative
    15  contractor] from further violating the provisions of this act.
    16     Section 5.  Sections 10, 11, 12, 13, 14 and 16.1 of the act,
    17  amended or added November 24, 1976 (P.L.1196, No.263), are
    18  amended to read:
    19     Section 10.  Fees.--(a)  A fee of five hundred dollars
    20  ($500.00) shall be paid to the department for the original
    21  issuance of an employer's permit.
    22     (b)  For each annual renewal of such permit, the employer [or
    23  representative contractor] shall pay to the department a fee
    24  of--
    25     (1)  One hundred dollars ($100.00), where at no time during
    26  the preceding year did the employer, [or representative
    27  contractor,] directly or indirectly, have business relations
    28  simultaneously with more than one hundred home-workers.
    29     (2)  Two hundred dollars ($200.00), where at any time during
    30  the preceding year the employer, [or representative contractor,]
    20010H1682B4290                  - 7 -

     1  directly or indirectly, had business relations simultaneously
     2  with more than one hundred, but less than three hundred home-
     3  workers.
     4     (3)  Three hundred dollars ($300.00), where at any time
     5  during the preceding year the employer, [or representative
     6  contractor,] directly or indirectly, had business relations
     7  simultaneously with three hundred or more home-workers.
     8     (c)  A fee of three hundred dollars ($300.00) shall be paid
     9  to the department for the issuance of a contractor's permit. For
    10  each annual renewal of such permit, the contractor shall pay to
    11  the department a fee of one hundred dollars ($100.00).
    12     (d)  No fee shall be required for the original issuance of an
    13  employer's[, representative contractor's] or contractor's permit
    14  nor renewal thereof for employment of handicapped people where
    15  the department finds:
    16     (1)  That a person is unable to adjust to factory employment
    17  because of old age or physical or mental deficiency or
    18  disability or is unable to leave home because his services are
    19  essential to care for an invalid in the home;
    20     (2)  That the employer and home-worker comply with all
    21  requirements and conditions of this act and all rules and
    22  regulations of the department;
    23     (3)  That such limited distribution of work to handicapped
    24  persons is not inconsistent with the purpose and policy of this
    25  act.
    26     Section 11.  Home-Worker's Certificate.--(a)  Every person
    27  desiring to engage in industrial homework within this
    28  Commonwealth must procure from the department a home-worker's
    29  certificate, which shall be issued without cost and which shall
    30  be valid for a period of one year from the date of its issuance,
    20010H1682B4290                  - 8 -

     1  unless sooner revoked or suspended by action of the department
     2  or, under subsection (f) of this section, automatically.
     3  Application for such certificate shall be made in such form as
     4  the department may by regulation prescribe and must be remade
     5  each year. Such certificate shall be valid only for work
     6  performed by the applicant himself in his own home, and in
     7  accordance with the provisions of this act.
     8     (b)  No home-worker's certificate shall be issued:--
     9     (1)  To any person under the age of sixteen years; or
    10     (2)  To any person known to be suffering from an infectious,
    11  contagious, or communicable disease, or known to be living in a
    12  home that is not clean, sanitary and free from infectious,
    13  contagious, or communicable diseases.
    14     [(3)  To any person, unless that person]
    15     (b.1)  The EXCEPT AS SET FORTH IN SUBSECTION (B), THE          <--
    16  department shall issue a home-worker's certificate to the
    17  following individuals who meet eligibility requirements:
    18     (1)  A person who is unable to leave his home to work on
    19  account of:
    20     (i)  his own physical handicap, if that handicap has lasted
    21  for more than thirty consecutive days; or
    22     (ii)  his own illness, if that illness has lasted for more
    23  than thirty consecutive days; or
    24     (iii)  the necessity of caring for a member of his family who
    25  is ill or handicapped, if that illness and/or handicap and
    26  necessity has lasted for more than thirty consecutive days.
    27     (2)  A parent who is caring for one or more minor children.
    28     (3)  An individual for whom transportation to normal
    29  employment cannot be obtained or constitutes an unreasonable
    30  burden.
    20010H1682B4290                  - 9 -

     1     (4)  Members of a family household primarily engaged in
     2  farming.
     3     (5)  Any individual who possesses a unique situation for
     4  which the department believes the issuance of a certificate is
     5  consistent with the intent of this act.
     6     (B.2)  THE DEPARTMENT SHALL NOT ISSUE A HOME-WORKER'S          <--
     7  CERTIFICATE TO AN INDIVIDUAL WHO MEETS THE ELIGIBILITY
     8  REQUIREMENTS OF SUBSECTION (B.1)(2), (3), (4) OR (5) IF THE
     9  INDUSTRIAL HOMEWORK REGULATIONS PROMULGATED UNDER THE FAIR LABOR
    10  STANDARDS ACT OF 1938 (52 STAT. 1060, 29 U.S.C. § 201 ET SEQ.)
    11  DO NOT PERMIT SUCH HOMEWORK.
    12     (c)  It shall be the duty of each applicant for a home-
    13  worker's certificate to prove his eligibility for a certificate
    14  [by presenting evidence of handicap or illness of himself or
    15  illness or handicap of a family member sufficient to prove to
    16  the department that he qualifies for a home-worker's certificate
    17  under one of the exceptions set forth in subsection (b)(3) of
    18  this section]. The department shall be empowered to require any
    19  applicant for a home-worker's certificate, or any family member
    20  of any applicant for a home-worker's certificate upon whose
    21  illness an applicant is relying in order to obtain a
    22  certificate, to submit to a medical examination by a physician
    23  of the department's choosing in order to aid the department in
    24  making a decision on whether or not to issue a certificate, the
    25  examination to be conducted at the expense of the department.
    26     (d)  Whenever a physical examination by a physician is
    27  necessary, in order for a person to qualify for or to retain a
    28  home-worker's certificate, if the person is working, or has been
    29  promised work on the condition that he obtain a home-worker's
    30  certificate, it shall be the duty of the employer[,
    20010H1682B4290                 - 10 -

     1  representative contractor,] or contractor for which the person
     2  is working or by which the person has been promised work[,] to
     3  pay the cost of the physical examination.
     4     (e)  Every certificate shall contain [the following
     5  information, in addition to] any information which the
     6  department [shall,] deems necessary, which shall be established
     7  by regulation.[, require:
     8     (1)  The home-worker's
     9     (i)  name,
    10     (ii)  address,
    11     (iii)  sex,
    12     (iv)  Social Security number,
    13     (v)  date of birth,
    14     (vi)  height,
    15     (vii)  weight,
    16     (viii)  eye color,
    17     (ix)  hair color; and
    18     (2)  The expiration date of the certificate; and
    19     (3)  The basis of the home-worker's eligibility for a
    20  certificate, as set forth in subsection (b)(3) above.]
    21     (f)  Upon the termination of the [handicap, illness, or
    22  necessity of caring for a family member who is ill or
    23  handicapped] situation which has qualified a person for a home-
    24  worker's certificate under subsection [(b)(3)] (b.1) of this
    25  section, that person's certificate shall automatically be
    26  revoked.
    27     (g)  The department may revoke, or suspend any home-worker's
    28  certificate if it finds that the holder is performing industrial
    29  homework contrary to the conditions under which the certificate
    30  was issued, or to any provision of this act, or has permitted
    20010H1682B4290                 - 11 -

     1  any person not holding a valid home-worker's certificate to
     2  assist him in performing his industrial homework or has obtained
     3  the certificate through fraud or misrepresentation.
     4     (h)  The department shall keep records of the applications
     5  made and certificates issued under this section, and of all
     6  information contained thereon.
     7     [(i)  Notwithstanding any provisions of this act to the
     8  contrary, a special home-worker's certificate may be issued to a
     9  person who does not qualify for a certificate under subsections
    10  (b)(3) and (c) if the person meets the other qualifications of
    11  subsection (b) and if the person has been employed fulltime for
    12  a period of at least six months in the manufacture of shoes, and
    13  is unable to continue his factory employment, if the following
    14  conditions are met:
    15     (1)  The special certificate holder may perform homework only
    16  for an employer which operates a factory in which shoes are
    17  manufactured, and which does not have more than five percent of
    18  its employes engaged in the manufacture of shoes in industrial
    19  homework.
    20     (2)  The homework performed by the special certificate holder
    21  must be part of the manufacturing process of shoes.
    22     (3)  The special certificate holder must be paid the same
    23  wages and receive the same benefits as the employer pays or
    24  affords to employes in its factory who perform similar work.
    25     (4)  The employer must deliver and pick up all the materials
    26  used in or produced by homework at the home of the special
    27  certificate holder without charge to the home-worker.
    28     (5)  All machinery, equipment, and materials used in the
    29  manufacture of goods by the special certificate holder must be
    30  supplied to the special certificate holder and maintained by the
    20010H1682B4290                 - 12 -

     1  employer without charge to the home-worker.
     2  A certificate issued under authority of this subsection shall bear
     3  a mark indicating that it permits its holder to engage in
     4  homework only in the shoe manufacturing industry. The provisions
     5  of this act shall govern the issuance and use of a special home-
     6  worker's certificate insofar as they do not conflict with this
     7  subsection. The use of a special home-worker's certificate in
     8  violation of this act shall automatically revoke the
     9  certificate.
    10     (j)  Notwithstanding any provisions of this act to the
    11  contrary, a special home-worker's certificate may be issued to a
    12  person who does not qualify for a certificate under subsections
    13  (b)(3) and (c) if the person meets the other qualifications of
    14  subsection (b), has been employed fulltime for a period of at
    15  least one month in the manufacture of brushes, is unable to
    16  continue his factory employment, and if the following conditions
    17  are met:
    18     (1)  The special certificate holder performs homework only
    19  for an employer operating a factory in which brushes are
    20  manufactured who does not have more than thirty per cent of its
    21  employes engaged in the manufacture of brushes in industrial
    22  homework.
    23     (2)  The homework performed by the special certificate holder
    24  is part of the process of manufacturing brushes.
    25     (3)  The employer delivers and picks up all the materials
    26  used in or produced by homework at the home of the special
    27  certificate holder without charge to the home-worker.
    28     (4)  All machinery, equipment, and materials used in the
    29  manufacture of goods by the special certificate holder is
    30  supplied to the special certificate holder and maintained by the
    20010H1682B4290                 - 13 -

     1  employer without charge to the home-worker.
     2  A certificate issued pursuant to this subsection shall bear a
     3  mark indicating that it permits its holder to engage in homework
     4  only in the brush manufacturing industry. The provisions of this
     5  act shall govern the issuance and use of a special home-worker's
     6  certificate insofar as they do not conflict with this
     7  subsection. The use of a special home-worker's certificate in
     8  violation of this act shall automatically revoke the
     9  certificate.]
    10     Section 12.  Records to Be Kept.--[No person] Persons having
    11  an employer's or a contractor's permit shall [deliver, or cause
    12  to be delivered, or received, any articles or materials for or
    13  as a result of industrial homework, unless he shall keep in such
    14  form and forward to the department at such intervals, as it may
    15  by regulation prescribe, and on such blanks as it may provide, a
    16  complete and accurate record of all persons engaged in
    17  industrial homework on articles or materials furnished or
    18  distributed by him; of all places where such persons work; of
    19  all articles or materials furnished and distributed to such
    20  persons, described as the department may require; of all goods
    21  which such persons have manufactured; of the net cash wages
    22  received by each home-worker; of the Social Security number and
    23  certificate number of each home-worker; and of all contractors
    24  to whom he has furnished articles or materials to be
    25  manufactured for him in any home.] maintain records as required
    26  through regulation by the department. Records kept pursuant to
    27  this section shall be open, at all times, to inspection by the
    28  department.
    29     Section 13.  Conditions of Manufacture.--Industrial homework
    30  on articles or materials manufactured for any person to whom an
    20010H1682B4290                 - 14 -

     1  employer's permit has been issued shall be performed:--
     2     (a)  Only by a person possessing a valid home-worker's
     3  certificate.
     4     (b)  Only by persons over the age of sixteen years.
     5     (c)  Only by persons resident in the home in which the work
     6  is done.
     7     (d)  Only during such hours as may be fixed by law or
     8  regulation as permissible hours of labor in factories by persons
     9  of the same age and sex as the home-worker; and
    10     (e)  Only in a home that is clean and sanitary and free from
    11  any infectious, contagious, or communicable disease.
    12     [(f)  Only by persons who are incapable of leaving their
    13  homes to work because of one of the reasons stated in section
    14  11(b) (3).]
    15     (g)  Only with power machines which are guarded in accordance
    16  with the laws and regulations of the department.
    17     (H)  ONLY IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF MAY  <--
    18  13, 1915 (P.L.286, NO.177), KNOWN AS THE "CHILD LABOR LAW" AND
    19  THE ACT OF JANUARY 17, 1968 (P.L.11, NO.5), KNOWN AS "THE
    20  MINIMUM WAGE ACT OF 1968," NOTWITHSTANDING ANY PROVISION OF
    21  THESE ACTS TO THE CONTRARY.
    22     Upon the issuance of an employer's permit to an employer[, or
    23  representative contractor,] or a contractor's permit to a
    24  contractor, such employer[, representative contractor,] or
    25  contractor[,] shall be deemed to have accepted responsibility
    26  for the observance of the conditions of manufacture specified by
    27  this section; and each of such conditions shall be deemed to be
    28  a condition of the employer's or contractor's permit to the same
    29  extent as though it were expressly set forth therein.
    30     Section 14.  Labels Required.--(a)  No employer[, or
    20010H1682B4290                 - 15 -

     1  representative contractor,] or contractor[,] shall deliver, or
     2  cause to be delivered, any articles or materials to be
     3  manufactured by any home-worker, unless there has been
     4  conspicuously affixed to each article or material a label, or
     5  other mark of identification, bearing the employer's or
     6  [representative] contractor's name and address, printed or
     7  written legibly in English; but if the articles or materials are
     8  of such a nature that they cannot be individually so labeled or
     9  identified, then the employer or [representative] contractor
    10  shall conspicuously label, in like manner, the package, or other
    11  container in which such articles or materials are delivered, or
    12  are to be kept, while in the possession of the home-worker.
    13     (b)  Every article manufactured in whole or in part by
    14  industrial homework which is offered for sale, wholesale and
    15  retail, shall bear a conspicuous label stating in clearly
    16  legible type that it has been manufactured by industrial
    17  homework. It shall be the duty of the department to prescribe
    18  regulations concerning the nature and placement of labels on
    19  such articles.
    20     Section 16.1.  Duty to Inspect and Report.--It shall be the
    21  duty of every employer[, representative contractor] and
    22  contractor, at least once each month, or more frequently, if he
    23  has reasonable cause to believe that a home-worker is not in
    24  compliance with section 11 or section 13:
    25     (1)  To inspect the home of every home-worker to which it
    26  delivers goods to the extent required to determine whether the
    27  provisions of section 13 are being complied with; [and]
    28     (2)  To inspect the certificate of every home-worker to which
    29  it delivers goods to the extent required to determine whether
    30  the certificate is valid and whether the holder of the
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     1  certificate possesses the physical characteristics stated on the
     2  certificate in compliance with section 11; and
     3     (3)  To report to the department within twenty-four hours
     4  after discovery, the name and address of any home-worker whom it
     5  reasonably believes[, on the basis of the performance of the
     6  duties imposed by subsections (a) and (b) of this section,] to
     7  be performing or seeking to perform homework in violation of
     8  this act.
     9     Section 6.  Section 17.1 of the act, added November 24, 1976
    10  (P.L.1196, No.263) and repealed in part April 28, 1978 (P.L.202,
    11  No.53), is amended to read:
    12     Section 17.1.  Violations and Penalties.--(a)  It shall be a
    13  summary offense[, punishable by a fine of one thousand dollars
    14  ($1,000.00) or imprisonment for up to sixty days, or both]:
    15     (1)  For any person to obtain or attempt to obtain an
    16  employer's or a contractor's permit required by section 7 or
    17  section 9 through fraud or misrepresentation[; or].
    18     (2)  For any person to deliver or cause to be delivered, to
    19  any person, any articles or materials for manufacture by
    20  industrial homework, prohibited by section 4 or by the
    21  department under authority of section 5[; or].
    22     (3)  For any person to deliver or cause to be delivered, to
    23  any person, any articles or materials for manufacture by
    24  industrial homework, if the person delivering or causing the
    25  delivery does not have in his possession a valid appropriate
    26  permit required by section 7 or section 9[; or].
    27     (4)  For any person to deliver or cause to be delivered, to
    28  any person, any articles or materials for manufacturing by
    29  industrial homework, if the person to whom the articles or
    30  materials are delivered does not possess a home-worker's
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     1  certificate which is valid or which, after performance of the
     2  inspection required by section 16, a person could reasonably
     3  believe to be valid[; or].
     4     (5)  For any person to fail to keep records or make a report
     5  as required by section 12, or refuse to grant access to such
     6  records as required by section 12, or to keep records or make a
     7  report required by section 12 inaccurately, if the inaccuracy is
     8  due to fraud, misrepresentation, or reckless disregard for
     9  accuracy[; or].
    10     (6)  For any person to fail to perform any duty imposed by
    11  section 16[; or].
    12     (7)  For an employer[, representative contractor,] or
    13  contractor to obtain or aid any person to obtain a home-worker's
    14  certificate, if he knows or has reason to know that the person
    15  does not meet the qualifications of a home-worker set forth in
    16  section 11[; or].
    17     (8)  For any person to sell or to possess with intent to
    18  sell, any articles manufactured in violation of any provision of
    19  this act, or any manufactured articles which have not been
    20  labeled as required by section 14(b), if the person knows or
    21  should have known that the articles were manufactured by
    22  industrial homework and are not labeled as required by this act.
    23     (9)  For any person to make a deduction from the wages of
    24  salary of any home-worker prohibited by section 8.
    25     (b)  It shall be a summary offense[, punishable by a fine of
    26  five hundred dollars ($500.00) or imprisonment for up to thirty
    27  days, or both,] for any person to deliver or cause to be
    28  delivered, to any person, any articles or materials for
    29  manufacture by industrial homework which are not labeled in the
    30  manner prescribed by section 14(a).
    20010H1682B4290                 - 18 -

     1     (c)  It shall be a [summary offense, punishable by a fine of
     2  five thousand dollars ($5,000.00) or imprisonment for between
     3  sixty and ninety days, or both,] misdemeanor of the third degree
     4  for any person to commit a second violation of this act within
     5  five years from the date of his conviction for violation of this
     6  act.
     7     (d)  If a person convicted under this section is a
     8  corporation, the president and any other officer of the
     9  corporation empowered to supervise the action of the corporation
    10  found to be violative of this act shall be subject to the
    11  penalties of imprisonment provided for by this section.
    12     (f)  Upon learning of the conviction of any person for
    13  violation of this act, it shall be the duty of the Secretary of
    14  Labor and Industry, or his authorized representative, to revoke
    15  any permit which the convicted person may hold. The department
    16  shall not issue any permit authorized by this act to any such
    17  person, or his successor in interest, for a period of five years
    18  after the revocation of the permit becomes final. If a person
    19  convicted under this act did not have a valid permit at the time
    20  of his conviction, the department shall not issue any permit
    21  authorized by this act to any such person, or his successor in
    22  interest, for a period of five years after the person's
    23  conviction becomes final. In its performance of the duties
    24  imposed on it by this subsection, the department shall afford
    25  the convicted person due process of law.
    26     (g)  When delivery or causing delivering of any articles or
    27  materials for manufacture by industrial homework is an element
    28  of an offense under this section, and more than one delivery
    29  violative of this act is made to the same individual home-worker
    30  within one calendar week, those deliveries shall constitute only
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     1  one offense under this act. In such a case the person making or
     2  causing the delivery shall be found guilty of that portion of
     3  the act which he has violated which carries the most onerous
     4  penalty. Deliveries during each calendar week to different
     5  individuals shall constitute separate offenses.
     6     Section 7.  This act shall take effect in 60 days.
















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