PRINTER'S NO. 1227 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.1108 Session of 2025 INTRODUCED BY E. NELSON, GIRAL, VENKAT, M. MACKENZIE, KHAN, HILL-EVANS, BRENNAN, BURGOS, HANBIDGE, DOUGHERTY, K.HARRIS, STENDER, D. WILLIAMS, FLEMING, COOK, BENNINGHOFF, FLOOD, SCHLEGEL, DAVANZO, B. MILLER AND CIRESI, APRIL 3, 2025 REFERRED TO COMMITTEE ON HUMAN SERVICES, APRIL 3, 2025 AN ACT Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An act to consolidate, editorially revise, and codify the public welfare laws of the Commonwealth," in public assistance, further providing for copayments for subsidized child care ; and making a repeal. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 408.3 heading, (c), (e) and (f) of the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, are amended to read: Section 408.3. [Copayments for] Subsidized Child Care.--* * * (c) In establishing the copayment amounts pursuant to this section, all of the following shall apply: (1) Copayments shall be on a sliding scale based on a percentage of the family's annual income taking into account Federal poverty income guidelines and considerations to support economic self-sufficiency . Copayments shall be updated annually. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (2) At the department's discretion, copayments may be imposed: (i) for each child enrolled in subsidized child care; (ii) based upon family size; or (iii) in accordance with both subparagraphs (i) and (ii). (3) Copayment amounts shall be a minimum of five dollars ($5) per week and shall increase in incremental amounts, based on a percentage of the family's annual income, as determined by the department. [(3.1) At initial application, the family's annual income may not exceed two hundred percent of the Federal poverty income guidelines. (3.2) After an initial determination or redetermination of eligibility, a child shall continue to be enrolled in subsidized child care for twelve months regardless of either of the following: (i) A temporary change in the parent or caretaker's status as working or attending a job training or educational program. (ii) An increase in the family's annual income, if the income does not exceed eighty-five percent of the State median income for a family of the same size. ] (4) [Subject to subsection (e), a ] A family's annual copayment under either paragraph (1) or (2) shall not exceed: (i) eight percent of the family's annual income if the family's annual income is one hundred percent of the Federal poverty income guideline or less; (ii) eleven percent of the family's annual income if the family's annual income exceeds one hundred percent of the Federal poverty income guideline, but is not more than two hundred fifty percent of the Federal poverty income guideline; 20250HB1108PN1227 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (iii) thirteen percent of the family's annual income if the family's annual income exceeds two hundred fifty percent of the Federal poverty income guideline, but is not more than two hundred seventy-five percent of the Federal poverty income guideline; or (iv) beginning after July 1, 2017, fifteen percent of the family's annual income if the family's annual income exceeds two hundred seventy-five percent of the Federal poverty income guideline, but is not more than three hundred percent of the Federal poverty income guideline or eighty-five percent of the State median income, whichever is lower. (5) Notwithstanding this subsection, beginning with State fiscal year 2012-2013, the department may adjust the annual copayment percentages specified in this subsection by promulgation of final-omitted regulations under section 204 of the act of July 31, 1968 (P.L.769, No.240), referred to as the "Commonwealth Documents Law." [(6) Subject to subsection (e), at a redetermination, after June 30, 2017, a family that exceeds the minimum work requirements as a result of each parent or caretaker or, in the case of a single-parent household, as a result of the sole parent or caretaker, by working additional wage-earning hours shall have a reduced copayment, not to be less than that which is set forth under paragraph (3). This paragraph shall apply only to a family that, after mutually qualifying for and receiving subsidized child care and being current on the required copayments as set forth in this subsection, increases its average work week after the effective date of this paragraph and has increased the family's annual income as a result of working additional wage-earning hours. The copayment deduction 20250HB1108PN1227 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 shall be applied as follows: (i) For an average work week of at least twenty-five wage- earning hours per parent or caretaker, a three-quarters of one percent deduction from the amount set forth under this subsection. (ii) For an average work week of at least thirty wage- earning hours per parent or caretaker, a one and one-half percent deduction from the amount set forth under this subsection. (iii) For an average work week of at least thirty-five wage- earning hours per parent or caretaker, a two and one-quarter percent deduction from the amount set forth under this subsection. (iv) For an average work week of at least forty wage-earning hours per parent or caretaker, a three percent deduction from the amount set forth under this subsection. (7) At its redetermination of eligibility, a parent or caretaker shall provide documentation of its average work week hours to receive the child care copayment deduction. The department shall apply the copayment deduction after receiving the required documentation. (8) A family that has previously qualified for a deduction in the child care copayment shall continue to remain eligible for the copayment deduction if: (i) the family's annual income does not exceed three hundred percent of the Federal poverty income guideline or eighty-five percent of the State median income, whichever is lower; (ii) the parent or caretaker has been in compliance with paragraph (7); (iii) the parent or caretaker continues to exceed the 20250HB1108PN1227 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 minimum work requirements by working additional wage-earning hours; (iv) the family's annual income has increased as a result of working additional wage-earning hours; and (v) the parent or caretaker is current and remains current with making its copayment to the child care provider. (9) The average work week of a family shall be calculated by reviewing the family's income statements and taking the number of hours worked per parent over a twelve-month period and dividing by fifty-two. ] * * * (e) [To the extent that money is appropriated for the purpose, the department shall increase eligibility under subsection (c)(4) for subsidized child care from two hundred thirty-five percent of the Federal poverty income guideline up to three hundred percent of the Federal poverty income guideline and shall apply a copayment deduction under subsection (c)(6). The department shall not be required to maintain eligibility above two hundred thirty-five percent of the Federal poverty income guideline or apply a copayment deduction unless funding is appropriated by the General Assembly. (f) As used in this section, "wage-earning hours" means hours for which an individual is financially compensated by an employer. The term does not include hours spent volunteering, in education or in job training, unless those hours are compensated as a condition of employment. ] The following shall apply to eligibility for subsidized child care: (1) At an initial determination, the family's annual income may not exceed two hundred percent of the Federal poverty income guidelines. 20250HB1108PN1227 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (2) At a redetermination, the following shall apply: (i) Except as provided under subparagraph (ii)(A) , the family's annual income may not exceed two hundred thirty-five percent of the Federal poverty income guidelines or eighty-five percent of the State median income for a family of the same size, whichever is lower. (ii) As follows: (A) To the extent that money is appropriated by the General Assembly for the purpose of this clause , the family's annual income may not exceed three hundred percent of the Federal poverty income guidelines or eighty-five percent of the State median income for a family of the same size, whichever is lower. (B) For fiscal year 2023-2024 and each fiscal year thereafter, no less than twenty-five million dollars ($25,000,000) from money appropriated to the department for child-care services shall be used for the purposes specified under clause (A). (3) For twelve months after an initial determination under paragraph (1) or a redetermination of eligibility under paragraph (2), a child shall remain eligible for subsidized child care regardless of either of the following: (i) A temporary change in the parent or caretaker's status as working or attending a job training or educational program. (ii) An increase in the family's annual income, if the income does not exceed eighty-five percent of the State median income for a family of the same size. Section 2. Repeals are as follows: (1) The General Assembly declares that the repeal under paragraph (2) is necessary to effectuate the amendment of section 408.3 heading, (c), (e) and (f) of the act. 20250HB1108PN1227 - 6 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (2) Section 1729-E(a)(8) of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, is repealed. Section 3. This act shall take effect in 60 days. 20250HB1108PN1227 - 7 - 1 2 3