SB 69 — An Act establishing Recovery-to-work as a pilot program within the Department of Labor and Industry; and providing for local recovery-to-work pilot programs, for incentives to encourage business participation and for powers and duties of the Department of Labor and Industry.

PRINTER'S NO.   102

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       SENATE BILL
                       No. 69
                                               Session of
                                                 2025

     INTRODUCED BY LANGERHOLC, YAW, BAKER, FONTANA, STEFANO AND
        J. WARD, JANUARY 22, 2025

     REFERRED TO LABOR AND INDUSTRY, JANUARY 22, 2025


                                     AN ACT
 1   Establishing Recovery-to-work as a pilot program within the
 2      Department of Labor and Industry; and providing for local
 3      recovery-to-work pilot programs, for incentives to encourage
 4      business participation and for powers and duties of the
 5      Department of Labor and Industry.
 6                             TABLE OF CONTENTS
 7   Chapter 1.   Preliminary Provisions
 8   Section 101.   Short title.
 9   Section 102.   Definitions.
10   Chapter 3.   Recovery-to-work
11   Section 301.   Program established.
12   Section 302.   Participation in Recovery-to-work.
13   Section 303.   Application and approval process.
14   Section 304.   Program operation.
15   Chapter 7.   Incentives
16   Section 701.   Business partner incentives.
17   Chapter 9.   Performance Evaluation and Reporting
18   Section 901.   Performance evaluation system.
19   Section 902.   Annual report.
 1   Section 903.    Final report.
 2   Section 904.    Report contents.
 3   Chapter 21.    Miscellaneous Provisions
 4   Section 2101.    Effective date.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7                                   CHAPTER 1
 8                           PRELIMINARY PROVISIONS
 9   Section 101.    Short title.
10      This act shall be known and may be cited as the Recovery-to-
11   work Act.
12   Section 102.    Definitions.
13      The following words and phrases when used in this act shall
14   have the meanings given to them in this section unless the
15   context clearly indicates otherwise:
16      "Board."     A board established under 29 U.S.C. § 3122
17   (relating to local workforce development boards).
18      "Business partner."    A business entity authorized to do
19   business in this Commonwealth.
20      "Department."    The Department of Labor and Industry of the
21   Commonwealth.
22      "Educational institution."      The term includes:
23          (1)     Postsecondary career and technical centers and
24      colleges of technology accredited by the Department of
25      Education.
26          (2)     Community colleges as established under Article XIX-
27      A of the act of March 10, 1949 (P.L.30, No.14), known as the
28      Public School Code of 1949, or the act of August 24, 1963
29      (P.L.1132, No.484), known as the Community College Act of
30      1963.

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 1             (3)   Private licensed schools regulated under the act of
 2        December 15, 1986 (P.L.1585, No.174), known as the Private
 3        Licensed Schools Act.
 4        "Individuals in recovery."    Individuals diagnosed with and
 5   recovering from a drug or alcohol substance use disorder.
 6        "Local pilot program."    A local pilot program under Chapter
 7   3.
 8        "Local workforce development board."       A local workforce
 9   development board established in accordance with 29 U.S.C. §
10   3122.
11        "Participating agencies."    Includes:
12             (1)   The Department of Health of the Commonwealth.
13             (2)   The Department of Community and Economic Development
14        of the Commonwealth.
15             (3)   The Department of Drug and Alcohol Programs of the
16        Commonwealth.
17             (4)   The Department of Human Services of the
18        Commonwealth.
19             (5)   The Department of Corrections of the Commonwealth.
20             (6)   The Pennsylvania Parole Board.
21             (7)   The Pennsylvania Commission on Crime and
22        Delinquency.
23        "Program partners."    Entities that participate in a local
24   pilot program.
25        "Recovery-to-work."    The program established in section
26   301(a).
27        "Support services provider."     An entity that provides drug
28   and alcohol treatment or recovery supports.
29                                   CHAPTER 3
30                                RECOVERY-TO-WORK

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 1   Section 301.     Program established.
 2      (a)    Establishment.--Recovery-to-work is established as a
 3   pilot program within the department.
 4      (b)    Funding sources.--To implement this act, the department
 5   may utilize any of the following:
 6             (1)   Money deposited into the Reemployment Fund.
 7             (2)   Existing money appropriated to the department, if
 8      the use of the money for Recovery-to-work is consistent with
 9      law.
10             (3)   Money appropriated to any participating agency for
11      Recovery-to-work.
12             (4)   Money appropriated from the Opioid Settlement
13      Restricted Account for Recovery-to-work.
14      (c)    Notice.--Upon the initial appropriation of sufficient
15   money to carry out the provisions of this act or a determination
16   by the department that sufficient money is available from
17   another existing source to carry out the provisions of this act,
18   the department shall transmit notice of the appropriation to the
19   Legislative Reference Bureau for publication in the next
20   available issue of the Pennsylvania Bulletin.
21      (d)    Administration.--Recovery-to-work shall be administered
22   by the department to empower local workforce development boards,
23   support services providers, business partners and participating
24   agencies to collaboratively develop innovative local pilot
25   programs to do all the following:
26             (1)   Provide individuals in recovery with career
27      development opportunities and work experience.
28             (2)   Provide individuals in recovery with employability
29      and career readiness skill training as identified by the
30      department in consultation with the Department of Education.

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 1            (3)   Provide individuals in recovery with support
 2      services for their continued recovery.
 3            (4)   Provide local workforce development boards with the
 4      funding necessary to support program partners and business
 5      partners implementing innovative local pilot programs.
 6            (5)   Provide program partners with informational
 7      resources to help them conduct successful local pilot
 8      programs.
 9            (6)   Seek to identify other funding sources, including
10      Federal grants, which may support local pilot programs.
11   Section 302.    Participation in Recovery-to-work.
12      (a)   Eligibility.--A local workforce development board shall
13   be eligible to apply for funding. The department shall establish
14   priority workforce areas based on substance use and unemployment
15   statistics.
16      (b)   Guidelines.--The department, in consultation with
17   participating agencies, shall develop guidelines that specify
18   the requirements for participation in Recovery-to-work.
19      (c)   Occupational focus.--Local pilot programs must be
20   focused on providing individuals in recovery with job training
21   and work experience that will prepare individuals in recovery
22   for continued success for job opportunities that exist in their
23   local workforce development areas.
24   Section 303.    Application and approval process.
25      (a)   Application.--An eligible local workforce development
26   board under section 302(a) may submit an application to the
27   department requesting approval for participation in Recovery-to-
28   work.
29      (b)   Application requirements.--A completed application must
30   describe the proposed local pilot program in the form and manner

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 1   prescribed by the department. An application must include all of
 2   the following:
 3            (1)   A list of program partners, including participation
 4      by a support services provider and a declaration of interest
 5      by at least two business partners. The program partners may
 6      include educational institutions, nonprofit business-support
 7      entities, job seeker support entities, registered
 8      apprenticeship programs and economic development agencies.
 9            (2)   A description of how the proposed local pilot
10      program will meet the guidelines under section 302(b).
11            (3)   A projection of costs associated with the proposed
12      local pilot program, including an enumeration of
13      opportunities to leverage other funding and programming
14      resources.
15            (4)   Information on occupations that will be the focus of
16      the proposed local pilot program, including data on local
17      demand.
18            (5)   Information on industry-recognized credentials or
19      certifications awarded to program participants upon
20      completion.
21            (6)   Documentation of interest by a business partner that
22      plans to receive the incentive under section 701.
23            (7)   A start date for the proposed local pilot program.
24            (8)   A list of clear objectives and measurable goals that
25      the proposed local pilot program will seek to achieve.
26            (9)   Documentation of an agreement among the program
27      partners describing the role of each program partner within
28      the proposed local pilot program and the expectations that
29      each program partner agrees to fulfill.
30      (c)   Approval process.--

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 1            (1)   The department, in consultation with participating
 2      agencies and the board as needed, shall approve up to seven
 3      local pilot programs for participation in Recovery-to-work in
 4      the first year after the effective date of this paragraph.
 5            (2)   Priority must be given to a proposed local pilot
 6      program demonstrating one or more of the following
 7      characteristics:
 8                  (i)    Substantial program integration across
 9            educational levels, including use of multiple components
10            identified in the department guidelines under section
11            302(b).
12                  (ii)    An ability to leverage other funding and
13            programming resources.
14                  (iii)    A commitment from one or more business
15            partners to provide preferred interviews to individuals
16            in recovery completing the local pilot program.
17                  (iv)    Capability to provide exposure to high-priority
18            or in-demand occupations as identified by the department.
19      (d)   Contractual relationship.--Within 30 days of the
20   completion of the approval process, the department shall enter
21   into a contract with each local workforce development board
22   approved for participation in Recovery-to-work. The contract
23   shall require the signatories to provide the services described
24   in the approved application from money appropriated or
25   distributed for this purpose or from money identified by the
26   participating agencies in accordance with section 301(d)(6).
27      (e)   Termination and replacement.--The department, in
28   consultation with participating agencies and the board as
29   needed, may terminate a local pilot program for failure to
30   comply with program requirements. Consistent with the process in

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 1   subsection (c), a replacement local pilot program may be
 2   approved.
 3   Section 304.    Program operation.
 4      (a)   Cooperative management.--In collaboration with the
 5   participating agencies and the board, the department shall:
 6            (1)   Manage the operation of Recovery-to-work.
 7            (2)   Establish an application process.
 8            (3)   Enumerate outcome-based metrics by which local pilot
 9      programs will be evaluated under Chapter 9.
10            (4)   Institute guidelines and procedures as necessary to
11      implement Recovery-to-work. The guidelines must enumerate
12      allowed and disallowed expenses and provide that
13      administrative expenses over 5% shall be disallowed.
14      (b)   Informational resources.--In collaboration with the
15   participating agencies and the board, the department shall
16   provide informational resources to help program partners conduct
17   successful local pilot programs.
18      (c)   Distribution.--The department, in consultation with
19   participating agencies and the board, as needed, shall determine
20   the distribution of available money from money appropriated for
21   the purposes of this act.
22                                 CHAPTER 7
23                                 INCENTIVES
24   Section 701.    Business partner incentives.
25      (a)   Eligibility.--Subject to the availability of funding
26   under subsection (c), if, at the end of a training period, a
27   business partner hires an individual in recovery for a job
28   opening, the business partner is eligible to receive an
29   incentive payment in the amount of $1,250 if all of the
30   following occur:

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 1            (1)   The individual in recovery remains employed an
 2      average of 35 hours per week for 26 consecutive weeks.
 3            (2)   The individual in recovery earns wages that meet or
 4      exceed the negotiated performance measure for the local
 5      workforce development board for median earnings the second
 6      quarter after exiting the Adult program authorized under the
 7      Workforce Innovation and Opportunity Act (Public Law 113-128,
 8      128 Stat. 1425).
 9      (b)     Application.--A business partner may apply for an
10   incentive payment under subsection (a). The application form
11   shall be prescribed and furnished by the department and bear the
12   notarized signature of the applicant.
13      (c)     Funding.--
14            (1)   Incentive payments under subsection (a) shall be
15      paid from money appropriated for payment.
16            (2)   Fifteen percent of the total amount of money
17      authorized for a fiscal year shall be reserved for business
18      partners with fewer than 100 employees. If the reserved
19      amount is not committed by April 30 of each year, the
20      reserved amount shall be available to business partners that
21      have at least 100 employees.
22      (d)     Penalty.--A business partner that falsifies an
23   application for an incentive payment shall be required to refund
24   the department the total amount of the incentive payment
25   awarded.
26                                 CHAPTER 9
27                    PERFORMANCE EVALUATION AND REPORTING
28   Section 901.    Performance evaluation system.
29      The department shall develop and implement an evaluation and
30   performance improvement system which does the following:

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 1          (1)     Collects critical information on an annual basis or
 2      more frequently as determined by the department, including:
 3                (i)    Skill training being received by individuals in
 4          recovery.
 5                (ii)    Challenges foreseen by business partners.
 6                (iii)    Local pilot program best practices.
 7                (iv)    Retention rate of individuals in recovery
 8          employed as a result of a local pilot program.
 9          (2)     Defines the benefits of Recovery-to-work and its
10      effects on business partners and individuals in recovery.
11   Section 902.    Annual report.
12      Within 60 days of the end of a fiscal year in which a local
13   pilot program is in operation, the department, participating
14   agencies and the board shall jointly submit a report regarding
15   the implementation of Recovery-to-work and the local pilot
16   programs over the previous fiscal year to the following:
17          (1)     The Governor.
18          (2)     The Auditor General.
19          (3)     The chairperson and minority chairperson of the
20      Appropriations Committee of the Senate.
21          (4)     The chairperson and minority chairperson of the
22      Appropriations Committee of the House of Representatives.
23          (5)     The chairperson and minority chairperson of the
24      Education Committee of the Senate.
25          (6)     The chairperson and minority chairperson of the
26      Education Committee of the House of Representatives.
27          (7)     The chairperson and minority chairperson of the
28      Labor and Industry Committee of the Senate.
29          (8)     The chairperson and minority chairperson of the
30      Labor and Industry Committee of the House of Representatives.

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 1   Section 903.     Final report.
 2      Within six months of the expiration of local recovery-to-work
 3   pilot programs, the department, participating agencies and the
 4   board shall jointly submit a report regarding the implementation
 5   of Recovery-to-work and the local pilot programs to the
 6   following:
 7             (1)   The Governor.
 8             (2)   The Auditor General.
 9             (3)   The chairperson and minority chairperson of the
10      Appropriations Committee of the Senate.
11             (4)   The chairperson and minority chairperson of the
12      Appropriations Committee of the House of Representatives.
13             (5)   The chairperson and minority chairperson of the
14      Education Committee of the Senate.
15             (6)   The chairperson and minority chairperson of the
16      Education Committee of the House of Representatives.
17             (7)   The chairperson and minority chairperson of the
18      Labor and Industry Committee of the Senate.
19             (8)   The chairperson and minority chairperson of the
20      Labor and Industry Committee of the House of Representatives.
21   Section 904.     Report contents.
22      (a)    General rule.--In addition to information or analysis
23   required by the department, in consultation with participating
24   agencies and the board, as needed, the interim and final reports
25   must include information about each local pilot program,
26   including whether:
27             (1)   The local pilot program achieved the clear
28      objectives and measurable goals proposed under section 303(b)
29      (8).
30             (2)   An analysis of each local pilot program according to

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 1      the outcome-based metrics enumerated by the department under
 2      section 304(a)(3).
 3            (3)   The number of participating individuals in recovery.
 4            (4)   The amount expended.
 5      (b)   Best practices.--The reports must identify best
 6   practices observed from among the most successful local pilot
 7   programs.
 8                                 CHAPTER 21
 9                          MISCELLANEOUS PROVISIONS
10   Section 2101.    Effective date.
11      This act shall take effect immediately.




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