642 Road to economic self-sufficiency through employment and training (RESET) program; revisions to the special allowance for supportive services requirements

Title 55—PUBLIC WELFARE

DEPARTMENT OF PUBLIC WELFARE

[ 55 PA. CODE CH. 165 ]

Road to Economic Self-Sufficiency Through Employment and Training (RESET) Program; Revisions to the Special Allowance for Supportive Services Requirements

[42 Pa.B. 1992]
[Saturday, April 14, 2012]

 The Department of Public Welfare (Department) amends Chapter 165 (relating to Road to Economic Self-Sufficiency Through Employment and Training (RESET) Program) to read as set forth in Annex A under the authority in sections 201(2), 403(b), 403.1, 405, 405.1, 405.1A, 405.3, 408(c) and 432 of the Public Welfare Code (code) (62 P. S. §§ 201(2), 403(b), 403.1, 405, 405.1, 405.1A, 405.3, 408(c) and 432), as amended by the act of June 30, 2011, (P. L. 89, No. 22) (Act 22).

Omission of Proposed Rulemaking

 Act 22 added several new provisions to the code, including sections 403.1 and 405.1A. Section 403.1(a) of the code authorizes the Department to promulgate final-omitted regulations under section 204(1)(iv) of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1204(1)(iv)), known as the Commonwealth Documents Law (CDL), to establish standards for determining eligibility and the nature and extent of assistance, modify existing benefits and establish benefit limits, among other things. Section 204(1)(iv) of the CDL authorizes an agency to omit or modify notice of proposed rulemaking when the regulation relates to Commonwealth grants or benefits.

 Final-omitted rulemaking under section 403.1 of the code is expressly exempted from the Regulatory Review Act (71 P. S. §§ 745.1—745.12), section 205 of the CDL (45 P. S. § 1205) and section 204(b) of the Commonwealth Attorneys Act (71 P. S. § 732-204(b)). Section 403.1(c) of the code provides that the Department shall take action specified in subsection (a) as may be necessary to ensure that expenditures for State Fiscal Year (FY) 2011-2012 for assistance programs administered by the Department do not exceed the aggregate amount appropriated for programs by the General Appropriations Act of 2011.

 Section 405.1A of the code provides that by January 1, 2012, the Department shall further reduce annual and lifetime limits for the Road to Economic Self-sufficiency Through Employment and Training (RESET) program, including moving and transportation expenses, by up to 25%, or eliminate special allowances from the program. Section 405.1A of the code also directs the Department to utilize the procedures outlined in section 403.1 of the code to effect these changes to the RESET program.

 The Department is amending Chapter 165 in accordance with sections 403.1 and 405.1A of the code. These amendments relate to cash assistance, Supplemental Nutrition Assistance Program (SNAP) benefits and special allowances for supportive services, which are Commonwealth grants and benefits. The final-omitted rulemaking establishes standards for determining eligibility and the nature and extent of assistance, modifies existing benefits and establishes benefit limits.

Purpose

 This final-omitted rulemaking eliminates several types of special allowances, combines public and private transportation related special allowances into one category and reduces the maximum combined annual limit for transportation from $3,000 to $1,500. This final-omitted rulemaking also eliminates the motor vehicle insurance special allowance. In addition, the lifetime limit for other work, education and training-related allowances is reduced from $2,000 to $1,000.

 This final-omitted rulemaking further specifies that the Department will not authorize a special allowance for a service or item that has been paid for or obtained prior to requesting the special allowance, unless required under Federal law. In addition, the individual shall provide verification within the time frame specified on the Agreement of Mutual Responsibility or Employment Development Plan. This verification must document that the special allowance was actually used to obtain the service or item requested.

 This final-omitted rulemaking also amends Chapter 165 to specify the types of special allowances for supportive services that may be issued for individuals who apply for or receive SNAP-only benefits. This final-omitted rulemaking specifies that SNAP-only applicants or recipients whose educational or training-related expenses are being met prior to participation in a SNAP employment and training program or activity are not eligible to receive special allowances for supportive services. This means that SNAP-only applicants or recipients who are participating in an education or training program or activity prior to participation in the Department's SNAP employment and training program are not eligible for special allowances for education or training-related expenses, including books, fees or equipment.

 These amendments meet the statutory requirement in section 405.1A of the code to further reduce annual and lifetime limits, as directed, for the RESET program. These amendments also meet the requirements in section 403.1 of the code, including the requirement in subsection (c) that the changes are necessary to ensure that expenditures for State FY 2011-2012 for assistance programs administered by the Department do not exceed the aggregate amount appropriated for programs by the General Appropriations Act of 2011.

 This final-omitted rulemaking also eliminates two bases for good cause for failure to comply with RESET requirements: allowing an individual to end employment that is sporadic; and allowing an individual to reject a job offer that would result in the loss of income. This final-omitted rulemaking also deletes the ''benefit of the doubt'' language in § 165.52(b) (relating to good cause), which had directed caseworkers to give recipients the benefit of the doubt when determining good cause for failure to comply with work or work-related requirements. Finally, this final-omitted rulemaking adds a new provision stating that the Department may request verification from the individual regarding good cause and clarifies in § 165.52(a) that the good cause provisions apply as permitted by Federal law. Like the special allowance amendments, these good cause amendments are consistent with the requirements in section 403.1 of the code, including the requirement in subsection (c) that the changes are necessary to ensure that expenditures for State FY 2011-2012 for assistance programs administered by the Department do not exceed the aggregate amount appropriated by the General Appropriations Act of 2011.

Background

 In 2010, the Department amended Chapter 165 by establishing new annual and lifetime limits, creating six categories of special allowances for supportive services and enhancing program integrity. See 40 Pa.B. 6665 (November 20, 2010). As a result of State budget constraints and to comply with Act 22 requirements, the Department is again amending Chapter 165 by combining public and private transportation special allowances into one transportation category, reducing the maximum combined annual limit for transportation from $3,000 to $1,500, deleting the motor vehicle insurance special allowance category and reducing the lifetime limit for other work, education and training special allowances from $2,000 to $1,000.

 The Department is also eliminating certain special allowances for supportive services for SNAP-only participants consistent with sections 403.1 and 405.1A of the code and based on guidance from the United States Department of Agriculture, Food and Nutrition Services (FNS). In that guidance, FNS explained that special allowances for moving and relocation costs to accept employment, motor vehicle-related expenses, motor vehicle purchase, vehicle insurance, personal computers, union dues and professional fees are generally not permissible payments under 7 CFR 273.7 (relating to work provisions). This final-omitted rulemaking therefore deletes these special allowances for SNAP-only participants, except that union dues are permissible to the extent required under Federal law. In other Federal guidance, FNS has advised that payments for education or training-related expenses are not permissible SNAP payments under 7 CFR 273.7 when these expenses are being met prior to participation in a SNAP employment and training program. See Administrative Notice 48-2010 (August 24, 2010).

 Chapter 165 currently provides a list of examples of good cause for failure to comply with RESET requirements, which include ending employment that is sporadic and rejecting employment that would result in a net loss of income. In this final-omitted rulemaking, the Department is deleting these two examples because deleting them is consistent with the legislative ''work first'' approach in section 405.1(a.1) of the code, which includes establishing a work history and maximizing economic independence through employment. It is also consistent with the explicit statutory requirement in section 405.1(a.2) of the code that as a condition of eligibility, the individual shall ''accept any offer of employment.'' The Department is also deleting the ''benefit of the doubt'' language in § 165.52(b) because it has determined that this policy tends to diminish the recipient's burden to establish good cause. To further strengthen the Department's good cause policy, a provision has been added to subsection (b) in which the Department may request verification from an individual when determining good cause.

Affected Individuals and Organizations

 This final-omitted rulemaking affects cash assistance and SNAP-only applicants and recipients.

Accomplishments and Benefits

 As required under Act 22, the Department is conserving resources to ensure that the expenditures for State FY 2011-2012 for assistance programs administered by the Department do not exceed the aggregate amount appropriated for the program by the General Appropriations Act of 2011. This final-omitted rulemaking also complies with the directive in section 405.1A of the code to reduce special allowances for supportive services, including moving and transportation expenses, by up to 25%, or to eliminate special allowances from the program.

Fiscal Impact

 The Commonwealth will realize an estimated savings of $1.029 million ($0.244 in State funds) in State FY 2011-2012.

Paperwork Requirements

 There are no new paperwork requirements under this final-omitted rulemaking.

Public Comment

 Although this regulation is being adopted without publication as proposed rulemaking, the Department decided to post a draft regulation on the Department's web site on February 24, 2012, with a 15-day comment period. The Department invited interested persons to submit written comments regarding the regulation to the Department. The Department received 17 comments from 9 commentators. The Department also discussed the Act 22 regulations and responded to questions at the House Health Committee hearing on March 8, 2012.

 The Department considered the comments received in response to the draft regulation. After careful deliberation, the Department decided to maintain the following draft changes to § 165.52: (1) addition of the phrase ''[a]s permitted by Federal law'' in subsection (a); (2) deletion of the current text in subsection (a)(10) and (11), regarding ending employment that is sporadic and rejecting employment that would result in a net loss of income; and (3) deletion of the ''benefit of the doubt'' language in subsection (b). The Department also added a provision stating that the Department may request verification of good cause. Because transportation-related good cause will remain intact, the Department no longer needs to amend §§ 165.51 and 165.61 (relating to compliance review; and sanctions). As a result, the Department removed those draft changes from this final-form rulemaking. For the following reasons, the Department has decided to maintain the remaining policies and procedures in the draft regulations.

Discussion of Comments and Major Changes

 Following is a summary of the major comments received following publication of the draft regulation and the Department's response to those comments.

Comment

 Several commentators stated that the Department did not allow sufficient time for review and comment of the regulations. In addition, commentators requested the public comment period be extended an additional 30 days due to the policy changes and the volume of regulations.

Response

 The Department engaged in a transparent public process through which the Department solicited and received numerous comments and input from stakeholders and other interested parties.

 As previously mentioned, the Department posted the draft regulation on the Department's web site on February 24, 2012. The Department invited interested persons to submit written comments, on or before March 9, 2012, regarding the regulation to the Department. In addition, the Department's Regulatory Agenda announced the Act 22 regulations at 42 Pa.B. 879, 894 (February 11, 2012).

 As a final-omitted rulemaking under Act 22, the Department was not required to have a public comment process. However, to encourage transparency and public input the Department provided an opportunity for comment by posting the draft regulation on the Department's web site. This public comment process provided sufficient opportunity for interested parties to submit comments, as supported by the number of comments that were submitted.

 As previously mentioned, the Department removed the draft changes in §§ 165.51 and 165.61 regarding transportation-related good cause. The Department will, however, follow through on its plan to add ''[a]s permitted by Federal law'' to § 165.52(a) and to delete § 165.52(a)(10) and (11). The Department is also deleting the ''benefit of the doubt'' language in § 165.52(b) and adding a provision stating that the Department may request verification of good cause. The Department decided to keep the remaining amendments in this final-omitted rulemaking for the reasons stated elsewhere in this preamble.

 Faced with a budgetary crisis, the Department undertook this final-omitted rulemaking to ensure that its State expenditures for FY 2011-2012 would not exceed its appropriations. To accomplish that task, the Department is refining some of its policies and procedures, changes that are entirely consistent with Federal and State law. Many changes are simply refinements of current policy, such as those involving verification and those required under Federal SNAP law and guidance.

 To continue to provide special allowances to the greatest number of recipients, the Department revised certain special allowance limits in Appendix A (relating to work and work-related special allowances). The authority in Act 22 to amend special allowances and related limits is clear and two-fold: (1) the authority as directed by the General Assembly in section 405.1A of the code; and (2) the authority as permitted by the General Assembly in section 403.1 of the code. Together, these sections provide the legal bases for the Chapter 165 amendments, including those in Appendix A. With the removal of the draft amendments regarding transportation-related good cause and the related draft amendments involving penalties, the remaining policy and procedural changes are relatively modest, conform to the General Assembly's intent under Act 22 and are specifically designed to ensure the integrity of the Department's RESET program.

Comment

 Commentators suggested that the Department has not complied with section 405.1A of the act because this final-omitted rulemaking will be promulgated after January 1, 2012. Section 405.1A of the code provides that ''no later than January 1, 2012, the department shall further reduce annual and lifetime limits for the RESET program, including moving and transportations expenses, by up to twenty-five percent, or eliminate any special allowances from the program.''

Response

 As previously stated, the Department's statutory authority to promulgate this regulation is twofold, existing under sections 403.1 and 405.1A of the code. Although section 405.1A of the code directs the Department to reduce annual and lifetime limits for the RESET program, section 403.1 of the code also authorizes the Department to establish regulations to establish standards for determining eligibility and the nature and extent of assistance and modify benefit limits, which plainly include making revisions and additional reductions to special allowances for cost savings or cost containment purposes. Under section 403.1(e) of the code, the Department has until June 30, 2012, to promulgate this final-omitted rulemaking.

Comment

 Commentators also stated that the Department did not comply with Act 22 by reducing annual and lifetime limits by more than 25%.

Response

 As previously explained, the Department's statutory authority to promulgate this final-omitted rulemaking is not limited to section 405.1A of the code. Section 405.1A of the code directs the Department to reduce annual and lifetime limits for the RESET program by up to 25% or to eliminate special allowances, but section 403.1 of the code authorizes the Department to establish regulations to establish standards for determining eligibility and the nature and extent of assistance and modify benefit limits. This authority includes making revisions and additional reductions to special allowances for cost savings or cost containment purposes. Section 405.1A of the code does not preclude discretionary revisions.

Comment

 Several commentators expressed concern about the proposed reduction or elimination of annual and lifetime limits. Commentators asserted that the reductions in lifetime limits on transportation, education and training allowances undermine the ability of parents to work or participate in welfare to work programs. One commentator also expressed concern that the regulatory amendments will place financial burdens on women and their families when salaries and supports are shrinking. The commentator stated that the safety net is important and worthy of support by the government and taxpayers. Commentators also asserted that the elimination of allowances for car insurance payments means that parents will be faced with the choice of not going to work, their welfare to work programs or driving without car insurance.

Response

 The need to apply a fiscally responsible approach in offering supportive services for special allowances related to employment and training, as well as the General Assembly's directive to reduce or eliminate at least some special allowances necessitated at least some changes in benefits. Despite these changes, the Department will continue to provide many supports for employment and training-related needs and also promote personal responsibility and self-sufficiency. Even with these changes, the Department's special allowance program will continue to effectively serve the needs of the vast majority of the recipient population. The safety net will remain intact for the greatest number of eligible recipients, which will help to alleviate the additional financial burden they would have without it.

 The annual limit for all types of transportation special allowances for supportive services will be reduced to $1,500. In addition, the work, education and training related special allowances have been limited to actual cost up to $1,000 in a lifetime. These reductions will help to ensure that limited funding is available to a greater number of participants.

 In addition, a review of the Department's data warehouse revealed that the educational assistance received by individuals from grants, loans and scholarships is usually adequate to cover educational expenses and that an additional payment for the service or item would often be a duplication of employment and training-related supports.

 Finally, the Department deleted the special allowance for motor vehicle insurance since it is the least frequently issued special allowance based on the Department's data warehouse figures and statistics for 2012. Eliminating this special allowance will, therefore, not affect many individuals. Although the few that would benefit from it will experience the change, the Department had to make some difficult budgetary decisions to continue to support the greatest number of needy individuals.

Comment

 Commentators claimed that SNAP special allowance limitations based on FNS guidance lacks sufficient authority for these regulatory amendments.

Response

 The Department regulates SNAP-only special allowances based on FNS regulations and guidance. To maximize its compliance with Federal law and related FNS guidance and to minimize the possibility of Federal disallowance based on noncompliance with Federal law, the Department is prudently exercising its authority to revise its regulations to ensure consistency with Federal law and the guidance interpreting the law.

Comment

 Senator Kitchen expressed concern that the draft regulation states that a nonwillful failure to comply with RESET requirements due to transportation-related reasons results in ineligibility for the family. The plain text meaning of this draft regulation indicates that if, for example, a TANF parent is late because of a flat tire or traffic delays then the whole family would be deemed ineligible. The enforcement of a provision such as this appears harsh and unforgiving. Changing the standard from willful to unwillful places a burden on individuals who are attempting to become self-sufficient and also appears to conflict with the code.

Response

 After careful consideration, the Department has decided to withdraw this proposal and will not, therefore, amend §§ 165.51 and 165.61.

Comment

 Senator Kitchen and commentators also commented that the nonwillful failure to comply with RESET requirements due to transportation-related reasons conflicts with the statutory provisions of the code. The code contains a detailed statutory scheme under section 405.1(a.2) and section 432.3 (62 P. S. § 432.3) that defines what happens if a Temporary Assistance for Needy Families (TANF) parent is noncompliant with RESET requirements. Commentators also asserted that the rulemaking ignores the distinction between pre- and post-24-month sanctions.

Response

 After careful consideration, the Department decided to not to amend the transportation-related examples of good cause in the existing regulations. Consequently, the Department determined that it will also not amend §§ 165.51 and 165.61.

Comment

 Commentators commented on the deletion of certain good cause exceptions in § 165.52(a)(10), (11) and (14). Commentators asserted that the eliminations of certain good cause exceptions are unnecessarily harsh, undermine self-sufficiency and justification has not been provided. In addition, commentators requested the Department retain the ''benefit of the doubt'' language in § 165.52(b).

Response

 After careful consideration, the Department decided to restore the minor transgression language in subsection (b) of the final-omitted rulemaking. The Department, however, decided to proceed with the draft amendments to the good cause provisions. The Department is maintaining the addition of the ''[a]s permitted by Federal law'' language and the deletion of subsection (a)(10) and (11). In addition, the ''benefit of the doubt'' language is also being deleted with a new provision being added which states that the Department may request verification of good cause.

 These amendments are consistent with the legislative intent of the RESET program to promote ''work first'' as the overarching goal based on the premise that establishing a work history is critical to economic self-sufficiency. Establishing a work history includes accepting even temporary or sporadic employment or a job that nets less income than the cash assistance grant and is consistent with the legislative intent in section 405.1(a.1) of the code and the explicit statutory requirement in section 405.1(a.2) of the code that as a condition of eligibility, the individual shall ''accept any offer of employment.'' As stated earlier, the Department is deleting the ''benefit of the doubt'' language because this diminishes the recipient's burden to establish good cause. To underscore the recipient's burden to establish good cause, the Department added a provision that the Department may request verification from the individual when determining good cause. These amendments are reasonable, advance the ''work first'' goal of RESET and are expected to yield cost savings as recipients further establish their work histories, maximize their earnings and rely less on public assistance.

Comment

 Commentators claimed that eligibility for special allowances is not determined within the time frames required under § 165.45 (relating to time frames for authorization of special allowances for supportive services). Therefore, recipients have to borrow money for employment and training expenses. Commentators commented that special allowances should not be barred from being reimbursed due to untimely eligibility determinations. Commentators also state that this delay inappropriately rewards staff for stalling on special allowance requests by reducing their workload if they neglect the requests long enough.

Response

 The Department disagrees with the assertion that welfare offices often exceed the time frames for authorizing special allowances. Recipients shall provide necessary verification to establish their eligibility for special allowances, which sometimes delays the process. The intent of this regulatory amendment under § 165.44 (relating to verification for special allowances for supportive services) is not to withhold legitimate special allowances for eligible recipients. Rather, the intent is to prohibit reimbursement if the need for the special allowance no longer exists, unless Federal law requires it.

Regulatory Review Act

 Under section 403.1 of the code, this final-omitted rulemaking is not subject to review under the Regulatory Review Act.

Findings

 The Department finds that:

 (1) Notice of proposed rulemaking is omitted in accordance with section 204(1)(iv) of the CDL and 1 Pa. Code § 7.4(1) (iv) because the final-omitted rulemaking relates to Commonwealth grants and benefits.

 (2) Adoption of this final-omitted rulemaking in the manner provided by this order is necessary and appropriate for the administration and enforcement of the code.

Order

 The Department, acting under the code, orders that:

 (a) The regulations of the Department, 55 Pa. Code Chapter 165, are amended by amending §§ 165.1, 165.41, 165.44, 165.46 and 165.52 and Appendix A to read as set forth in Annex A.

 (b) The Secretary of the Department shall submit this order and Annex A to the Office of General Counsel for approval as to legality and form as required by law.

 (c) The Secretary of the Department shall certify and deposit this order and Annex A with the Legislative Reference Bureau as required by law.

 (d) This order shall take effect upon final publication in the Pennsylvania Bulletin.

GARY D. ALEXANDER, 
Secretary

 Fiscal Note: 14-526. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 55. PUBLIC WELFARE

PART II. PUBLIC ASSISTANCE MANUAL

Subpart C. ELIGIBILITY REQUIREMENTS

CHAPTER 165. ROAD TO ECONOMIC SELF-SUFFICIENCY THROUGH EMPLOYMENT AND TRAINING (RESET) PROGRAM

GENERAL RESET PROVISIONS

§ 165.1. General.

 (a) A recipient who is not exempt shall participate in and comply with RESET, including meeting hourly and other work and work-related requirements as specified on the AMR or EDP, unless the recipient establishes good cause. An exempt individual may volunteer to participate in an approved work or work-related activity. The Department will inform an applicant and recipient of the rights, responsibilities and services and benefits available to RESET participants. The Department or its agent will assess the recipient's ability to meet RESET participation requirements after consultation with the recipient.

 (b) The Department will provide RESET participants with case management and special allowances for supportive services as required to help them become self-sufficient. The Department will authorize special allowances for supportive services for the least costly item or service which is available and practical considering the location and hours of scheduled employment or training, and the location of the participant's residence in relation to the provider of the item or service. In addition, the Department will provide participants with or refer them to work or work-related activities designed to break the cycle of welfare dependency. To the extent it deems possible, the Department will identify and promote resources in the public and private sectors that may assist participants to prepare for and obtain employment they may realistically be expected to obtain.

 (c) Nothing in this chapter shall be interpreted as requiring the Department to develop or to offer or to continue to offer employment, education, training, work-related activities or work experience programs.

 (d) This chapter applies to applicants and recipients of TANF and GA cash assistance. Sections 165.1, 165.2, 165.31(d), 165.41—165.46, 165.52, 165.71, 165.81, 165.91 and Appendix A also apply to SNAP only participants defined in § 165.2 (relating to definitions) as permitted by Federal law. For SNAP only participants, a special allowance for supportive services may be authorized as determined by the Department only up to the employment start date, with the following exception. SNAP only participants may receive special allowances for supportive services not to exceed the types and time frames permitted by Federal law.

 (e) The Department may provide for additional supportive services to the extent required by an approved work, work-related or educational program under a written agreement with the Department.

SPECIAL ALLOWANCES FOR SUPPORTIVE SERVICES

§ 165.41. Eligibility for special allowances for supportive services.

 (a) A participant may receive special allowances for supportive services, as specified in this chapter, to enable the individual to participate in an approved work or work-related activity for the number of hours as specified on the AMR or EDP. Supportive services will be provided if required by the individual to participate in an approved work or work-related activity.

 (b) A special allowance for supportive services is made only to the extent that the item or service is not available from another public or non-profit source at no cost to the individual, and cannot be met by educational assistance. The activity may not be secondary education or an equivalent level of vocational or technical training, unless the individual is pregnant or a custodial parent.

 (c) The Department will inform the individual, orally and in writing, of the availability of special allowances for supportive services at application, redetermination, recertification and whenever the AMR or EDP is developed or revised.

 (d) The Department will assist the participant to obtain supportive services required to participate in approved work or work-related activities as specified on an AMR or EDP, with one exception. Supportive services are not available for a SNAP only participant to maintain current employment, except as provided in § 165.1(d) (relating to general).

 (e) Except as otherwise restricted in this chapter, special allowances for supportive services may be granted up to the maximum amount and frequency established by the Department in Appendix A (relating to work and work-related special allowances).

 (f) The Department will not pay for education or training-related expenses for a SNAP only participant when these expenses are being met prior to participation in a SNAP employment and training program.

§ 165.44. Verification for special allowances for supportive services.

 (a) Verification needed to authorize special allowances for supportive services.

 (1) Before authorizing the special allowance for supportive services, the Department will determine the following:

 (i) Whether the supportive service requested is required to enable the participant to engage in an approved work or work-related activity.

 (ii) The expected charge for the service or item requested.

 (iii) The date the service or item is needed by the participant.

 (iv) The date that payment for the service or item is required under the provider's usual payment policy or practice.

 (v) The Department will not pay for or provide a special allowance for items and services already paid for or obtained unless required under Federal law.

 (2) Verification, including collateral contact, that the special allowances for supportive services is required will be provided prior to authorization.

 (3) Acceptable verification consists of collateral contacts, written statements or completed Departmental forms, obtained from sources such as employers, prospective employers, school officials, employment and training providers or providers of supportive services. If collateral contacts are used, the information will be documented in the participant's file.

 (4) The Department will use collateral contacts whenever necessary to ensure that payment is made in advance of the date that payment is required.

 (b) Verification needed for reoccurring and nonrecurring special allowances for supportive services.

 (1) The individual's eligibility for a special allowance for a supportive service is reviewed monthly, or more often if expenses are likely to change, at each redetermination or recertification, whenever a change in employment or training is reported by the individual or the employment and training provider, and whenever the AMR or EDP is revised.

 (i) A participant shall verify the actual costs incurred by the participant for the supportive service and the participant's attendance at the approved work or work-related activity. The Department may require that the participant or provider of the supportive service, or both, verify that the participant received the approved special allowance for supportive services and that the provider received payment for the amount the participant was eligible to receive.

 (ii) When verification provided indicates a change in eligibility, payment of the special allowance to the participant shall be reduced, terminated or increased, as appropriate, upon issuance of a confirming notice to the participant, in accordance with § 133.4(c) (relating to procedures).

 (iii) The individual shall provide verification of expenditure of the special allowance within the time frame specified on the AMR or EDP.

 (2) The Department will process an overpayment referral to recover a special allowance for supportive services to the extent of the misuse in accordance with § 165.91 (relating to restitution) and Chapter 255 (relating to restitution). Circumstances for which a referral may be appropriate include the following:

 (i) The participant was ineligible for cash assistance or SNAP only benefits in the month the Department issued a special allowance for supportive services.

 (ii) The participant did not use the special allowance for supportive services for its intended purpose.

 (iii) The actual cost of the supportive service was less than the estimated cost of the service.

 (iv) The participant provided falsified or erroneous documentation to obtain a special allowance for supportive services.

 (v) The participant received a reoccurring special allowance for supportive services when the need no longer existed.

 (vi) The participant or provider of supportive services, or both, did not provide verification, such as a receipt, that the supportive services requested were obtained using the special allowance payment.

 (vii) The participant did not participate in or comply with RESET, including meeting hourly and other work and work-related requirements as specified on the AMR or EDP.

§ 165.46. Types of special allowances for supportive services.

 (a) Transportation and related expenses. The Department will pay for transportation and related expenses required for an individual to engage in approved work or work-related activities up to the maximum allowance established in Appendix A (relating to work or work-related special allowances). Transportation-related allowances are provided for the least costly type of transportation which is available and practical considering the location and hours of scheduled approved work or work-related activity, the participant's physical condition and the need to transport children to a child care provider. Transportation-related allowances are not provided if the activity is secondary education or an equivalent level of vocational or technical training unless the individual is pregnant or a custodial parent.

 (1) Public transportation. Public transportation-related allowances are provided for costs incurred for transportation provided by bus, subway, commuter rail, taxi, paratransit or other recognized modes of transportation.

 (i) An allowance for public transportation is the actual cost to the participant up to the maximum amount established by the Department in Appendix A.

 (ii) Verification of the need and the cost of transportation is required.

 (2) Private transportation. Private transportation-related allowances are provided for costs incurred for transportation provided by privately owned vehicles, ride sharing and car or van pools.

 (i) An allowance for private transportation provided by a vehicle owned by the participant is the mileage rate established by the Department in Appendix A and the actual cost of parking and highway or bridge tolls up to the maximum amount established by the Department in Appendix A.

 (ii) An allowance for transportation provided by a volunteer driver or if the participant is permitted to use another person's vehicle is the mileage rate established by the Department in Appendix A and the actual cost of parking and highway or bridge tolls up to the maximum amount established by the Department in Appendix A.

 (iii) An allowance provided for transportation by a car or van pool is the participant's proportionate share of the cost up to the maximum amount established by the Department in Appendix A. If the participant's share is a flat fee, the payment is the actual fee up to the maximum amount established by the Department in Appendix A.

 (3) Motor vehicle purchase or repair. When there is no other type of practical transportation available or other available transportation is more expensive, a special allowance may be authorized toward the purchase, down payment or repair of a motor vehicle for an individual to participate in an approved work or work-related activity.

 (i) The maximum total allowance toward a motor vehicle purchase, down payment and repair is limited to the rate and frequency established by the Department in Appendix A.

 (ii) Preexpenditure approval is required.

 (4) Motor vehicle-related expenses. The cost of a driver's license, State inspection fee, emission control inspection fee, license plates and vehicle registration fee may be authorized for a participant if they are required for participation in an approved work or work-related activity.

 (i) Payment is made for actual cost up to the maximum allowance and frequency established by the Department in Appendix A.

 (ii) Preexpenditure approval is required.

 (b) Other expenses related to approved work and work-related activities. Special allowances may be authorized for other items related to participation in approved work or work-related activities. Preexpenditure approval is required. The maximum allowances for these items are subject to the rates and frequencies established by the Department in Appendix A.

 (1) Clothing. The Department may refer a participant to other public or nonprofit sources that provide clothing and grooming items at no cost. If these sources are not available or do not have appropriate clothing or other required items, the Department may authorize a special allowance for supportive services for clothing and grooming items required to participate in an approved work or work-related activity.

 (2) Tools and other equipment. A special allowance may be authorized for tools and other equipment which an employer, education, employment or training provider requires for participation in an approved work or work-related activity but which are not provided by the employer, education, employment or training provider and are not available under Federal, State or other educational grants.

 (3) Books and supplies. A special allowance may be authorized for books and supplies that an employer or employment and training provider requires for a participant to participate in an approved work or work-related activity if these items are not provided by the employer or training provider and are not available under Federal, State or other educational grants.

 (4) Fees. A special allowance for supportive services may be authorized for a fee to take a test such as a high school equivalency test, a test that is a prerequisite for employment or for registration or enrollment fees required for an individual to enter an approved work or work-related activity. Tuition is not construed to be a fee.

 (5) Union dues and professional fees. If payment of union dues or professional fees is a condition of employment, a special allowance for supportive services may be authorized to participants who receive TANF or GA cash assistance for the initial fee only and for the period up to the date of the participant's first pay. A special allowance for supportive services may not be issued to pay for reoccurring fees, such as license fees, even if they are necessary for the individual to maintain employment.

COMPLIANCE REVIEW AND GOOD CAUSE

§ 165.52. Good cause.

 (a) As permitted by Federal law, good cause includes the following circumstances beyond the individual's control:

 (1) The job was beyond the capacity of the individual.

 (2) The individual reasonably attempted and is unable to secure or to maintain transportation.

 (3) The individual reasonably attempted and cannot secure or maintain appropriate child care, as defined in § 165.2 (relating to definitions), or appropriate adult care for an incapacitated adult living in the same home, within a reasonable distance from the individual's home, as defined in § 165.2.

 (4) The working conditions are substandard; that is, the place of employment is not free of recognized hazards that are causing or are likely to cause death or serious physical harm, or the wages paid are below the minimum wage if applicable for that type of employment or are below the prevailing wage normally paid in the community for that specific kind of employment.

 (5) The individual establishes a basis for a claim of discrimination by an employer or fellow employees based on age, race, sex, color, handicap, religious beliefs, national origin or political beliefs or other unlawful discrimination.

 (6) The individual leaves a job in connection with patterns of employment in which workers frequently move from one employer to another, such as migrant farm labor, construction work or temporary work through an agency. Even though employment at the new site has not actually started, leaving the previous employment shall be considered good cause it if is part of the pattern of that type of employment.

 (7) Personal illness or illness of another household or family member.

 (8) A personal emergency.

 (9) The individual failed to receive notice at least 2 days prior to the date of a scheduled RESET activity.

 (10) The individual was placed in an education or training activity that was beyond the capacity of the individual to complete, and the individual is willing to participate in another activity better suited to the individual's needs and aptitudes.

 (11) A required employment and training activity conflicts with scheduled hours of employment or a job interview.

 (12) The location of a RESET site or job is more than 2 hours round-trip by reasonably available public or private transportation from the individual's residence.

 (13) The individual is claiming to be exempt from RESET participation requirements under § 165.21 (relating to exemptions from RESET participation requirements) and is cooperating in an attempt to provide verification of exemption.

 (b) In determining good cause, the worker will consider all the facts and circumstances, especially if the transgression is relatively minor (such as reporting to a component a few minutes late) or isolated in nature (such as forgetting to keep an appointment, despite good overall attendance). The Department may request verification from the individual when determining good cause. Even after the CAO has made a preliminary determination of the lack of good cause, an individual may offer evidence of good cause to avoid sanction.

 (c) The Department may grant good cause for up to 6 months to an individual, when strict application of any RESET participation requirement would not promote an individual's approved plan for self-sufficiency, as recorded on the AMR, and would make it more difficult for the individual to fulfill the plan. Examples of good cause for not strictly complying with a RESET participation requirement include:

 (1) Hours that an individual is participating in an approved education or training activity which began during the first 24 months of receipt of cash assistance, if the total hours of instruction, lab time and work or work-related activity, whichever applies, equals at least 20 hours per week.

 (2) Hours that an individual is participating in an internship, student teaching, or practicum assignment required as part of an approved education or training curriculum, if the individual is maintaining satisfactory progress as determined by the school or training agency, and the total hours of this activity and work or work-related activity, whichever applies, equals at least 20 hours per week.

 (d) The Department may also grant good cause to a pregnant or parenting individual under 22 years of age who is enrolled in high school or attending a minimum 20-hour per week GED program, until the individual graduates from high school, receives a GED or reaches 22 years of age, whichever occurs first.

APPENDIX A

WORK AND WORK-RELATED SPECIAL ALLOWANCES

Type of Allowance	Frequency TANF or GA	SNAP Only	Maximum Allowance
TRANSPORTATION RELATED ALLOWANCES			—actual cost up to $1,500 annually except for moving/relocation costs to accept employment
Transportation Public   —bus —subway —commuter rail —taxi —paratransit	—as required for job interviews, work or work-related activities   —for employment, may be authorized for the period up to the date of the first pay	—as required for job interviews, work or work-related activities   —for employment, may be authorized for the period up to the start date
Transportation Private	—as required for job interviews, work or work-related activities	—as required for job interviews, work or work-related activities	—mileage reimbursement rate will be set by the Department by notice not to exceed Commonwealth
—privately-owned vehicle —volunteer car and driver	—for employment, may be authorized for the period up to the date of the first pay	—for employment, may be authorized for the period up to the start date	reimbursement rate for actual cost of gasoline, plus the actual cost of parking and highway and bridge tolls
Transportation Car or van pool	—as required for work or work-related activities   —for employment, may be authorized for the period up to the date of the first pay	—as required for work or work-related activities   —for employment, may be authorized for the period up to the start date
Moving/relocation costs to accept employment	—to accept a verified offer of gainful, permanent employment   —no more than once in a 12-month period	Not permitted.	—actual cost up to $200
Motor Vehicle Repair	—as required for work or work-related activities	—as required for work or work-related activities or if required to accept employment
Motor Vehicle-Related Expenses —driver's license —State inspection fee —emission control inspection fee —license plates —vehicle registration fee	—as required for work or work-related activities	Not permitted.
MOTOR VEHICLE PURCHASE	—as required for work or work-related activities	Not permitted.	—actual cost for one vehicle up to $1,500 in a lifetime.
CLOTHING	—as required for work or work-related activities	—as required for work or work-related activities or if required to accept employment	—required clothing or actual cost of clothing up to $150 annually
WORK, EDUCATION AND TRAINING- RELATED ALLOWANCES			—actual cost up to $1,000 a lifetime
Tools and Equipment	—as required for work or work-related activities	—as required for work or work-related activities or if required to accept employment   Personal computers and related hardware or software are not permitted.
Books and Supplies	—as required for work or work-related activities	—as required for work or work-related activities
Fees	—as required for work or work-related activities	—as required for work-or work-related activities or if required to accept employment
Union Dues/ Professional Fees	—may be authorized for the period up to date of first pay	Not permitted, unless required under Federal law.

[Pa.B. Doc. No. 12-642. Filed for public inspection April 13, 2012, 9:00 a.m.]