[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5015 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5015

 To promote workforce development in rural areas and assist low income 
     residents of rural communities in moving from welfare to work.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2002

 Mrs. Clayton introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To promote workforce development in rural areas and assist low income 
     residents of rural communities in moving from welfare to work.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Self-Sufficiency and Workforce 
Advancement Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Unemployment and underemployment rates are higher in 
        rural than in urban areas.
            (2) Jobs in rural areas are more heavily concentrated in 
        minimum wage, part-time, and seasonal employment than in urban 
        areas.
            (3) Average earnings are lower and poverty rates are higher 
        in rural areas than in urban areas.
            (4) Work support services such as education and job 
        training, child care, and public transportation are less 
        available in rural areas.
            (5) Rural residents have less formal education than do 
        urban residents.
            (6) Overall, the barriers to successfully moving from 
        welfare to work and to achieving economic stability and 
        security among low-income families are greater in rural than in 
        urban and suburban areas.
            (7) Research on rural welfare reform has shown that--
                    (A) State welfare reform programs have found 
                positive impacts on long-term welfare recipients in 
                urban areas but not in rural areas;
                    (B) employment, earnings, and poverty outcomes have 
                been found to be worse for rural single mothers than 
                for urban single mothers during the 1990s; and
                    (C) there is some evidence that it is more 
                difficult to reduce welfare caseloads in rural areas 
                than in urban ones.
            (8) One of the main purposes of the 1996 welfare reform law 
        was to move all low-income families toward economic self-
        sufficiency and not just those residing in urban and suburban 
        areas.
            (9) Therefore, additional jobs, work supports, and targeted 
        resources are needed to support low-income residents of rural 
        areas in entering the workforce and moving towards self-
        sufficiency.

SEC. 3. GRANTS FOR TRANSITIONAL JOBS PROGRAMS.

    (a) In General.--The Secretary of Health and Human Services (in 
this section referred to as the ``Secretary'') shall make grants among 
eligible applicants, on a competitive basis, in accordance with this 
section.
    (b) Application Requirements.--An entity desiring to receive a 
grant under this section shall submit to the Secretary an application 
in such form and manner and at such time as the Secretary may require. 
Any such application shall include a description of--
            (1) the local labor market of the eligible rural area, the 
        barriers that low income individuals face in the labor market, 
        and the problems associated with implementing welfare reform in 
        the area;
            (2) how the applicant's use of grant funds under subsection 
        (d) will address the problems referred to in paragraph (1); and
            (3) the criteria which the applicant will use to select 
        entities to participate in the provision of transitional jobs 
        and employment services under a transitional jobs program 
        established by the applicant, as described in subsection (e).
    (c) Basis for Competition.--In determining whether to make a grant 
to an applicant under this section, the Secretary shall consider the 
following:
            (1) The percentage by which the national average 
        unemployment or poverty rate is exceeded by the unemployment or 
        poverty rate in the area in which the program proposed in the 
        application would seek to provide transitional jobs.
            (2) The extent to which the program proposed in the 
        application would be effective in helping the program 
        participants achieve stable employment and job advancement.
            (3) The extent to which the program proposed in the 
        application would seek to place participants in transitional 
        jobs that expand the diversity of the local economy and that 
        are not in traditional rural occupations such as agriculture, 
        mining, and forestry.
            (4) The extent to which the program proposed in the 
        application was developed in consultation and coordination with 
        appropriate stakeholders in the eligible rural areas, 
        including--
                    (A) potential program participants;
                    (B) employers;
                    (C) labor organizations;
                    (D) community-based organizations; and
                    (E) units of local government.
    (d) Use of Grant Funds.--
            (1) In general.--Each grantee shall use the grant funds 
        to--
                    (A) establish a transitional jobs program as 
                described in subsection (e);
                    (B) provide each program participant with an 
                individualized plan of services as described in 
                subsection (f); and
                    (C) prepare and submit the reports described in 
                subsection (g).
            (2) Limitation on administrative expenses.--A grantee shall 
        not use more than 10 percent of the grant funds for 
        administrative expenses (including expenses associated with 
preparing and submitting the reports described in subsection (g)).
    (e) Requirements for a Transitional Jobs Program.--With respect to 
the transitional jobs program of the grantee, the grantee shall ensure 
the following:
            (1) In general.--The transitional jobs program shall--
                    (A) place each program participant in a position of 
                employment with an employer in the eligible rural area; 
                and
                    (B) provide for the reimbursement of each such 
                employer in an amount equal to 100 percent (50 percent 
                in the case of any for-profit employer) of the sum of 
                all wages paid to each program participant employed by 
                such employer and all payroll taxes required to be paid 
                by such employer with respect to each such participant.
            (2) Means test for program participants.--Each program 
        participant shall be an individual who has income that is less 
        than 185 percent of the poverty line (as defined in section 
        673(2) of the Omnibus Budget Reconciliation Act of 1981, 
        including any revision required by such section, applicable to 
        a family of the size involved), and not less than 50 percent of 
        all such participants in the program shall have income that is 
        less than 100 percent of the poverty line (as of the date that 
        such participants enroll in the program).
            (3) Duration of employment.--A program participant shall 
        not be placed in a position of employment for more than 12 
        months.
            (4) Minimum wage.--A program participant shall not be 
        placed in a position of employment which is compensated at a 
        rate less than the greatest applicable minimum wage provided 
        under Federal or State law.
            (5) Hours per week.--
                    (A) In general.--Each program participant shall be 
                placed in a position of employment which provides for 
                such number of hours of employment per week as equals 
                or exceeds the relevant minimum and does not exceed the 
                relevant maximum.
                    (B) Relevant maximum.--For purposes of subparagraph 
                (A), the term ``relevant maximum'' means, with respect 
                to any program participant for any week, the difference 
                between 40 and the number of hours such participant 
                participates in counseling, training, and services 
                during such week under subsection (f)(3).
                    (C) Relevant minimum.--For purposes of subparagraph 
                (A) and except as provided in subparagraph (D), the 
                term ``relevant minimum'' means, with respect to any 
                program participant for any week, the difference 
                between 30 and the number of hours such participant 
                participates in counseling, training, and services 
                during such week under subsection (f)(3).
                    (D) Exception to relevant minimum.--With respect to 
                any program participant for any week, the relevant 
                minimum may be determined by substituting ``20'' for 
                ``30'' in subparagraph (C) if such participant--
                            (i) is a parent with a child who--
                                    (I) has not attained 6 years of 
                                age;
                                    (II) is disabled; or
                                    (III) has other special needs; or
                            (ii) is an individual, or a member of a 
                        class of individuals, identified by the 
                        Secretary for purposes of this clause as 
                        eligible for reduced hours.
            (6) Requirements related to worker protections.--With 
        respect to the program, the grantee shall ensure the following:
                    (A) Limit on program participation.--An employer 
                with more than 20 employees shall not employ a program 
                participant if more than 5 percent of such employer's 
                workforce would consist of program participants as a 
                result of such employment. An employer with 20 or fewer 
                employees shall not employ more than 1 program 
                participant at a time or employ any program participant 
                for more than 12 months during any 18-month period.
                    (B) Nondisplacement.--An employer shall not--
                            (i) displace an employee or position 
                        (including partial displacement such as 
                        reduction in hours, wages, or benefits) or 
                        impair a contract or collective bargaining 
                        agreement, as a result of the employment of a 
                        program participant, or
                            (ii) assign any program participant to fill 
                        any established unfilled vacancy or to perform 
                        any service, duty, or activity with respect to 
                        which an individual has recall rights pursuant 
                        to a collective bargaining agreement or 
                        applicable personnel procedures, or which had 
                        been performed by or assigned to an employee 
                        who--
                                    (I) resigned or was discharged 
                                during the preceding 12 months;
                                    (II) is subject to a reduction in 
                                force;
                                    (III) is on leave;
                                    (IV) is on strike; or
                                    (V) is being locked out.
                    (C) Promotional opportunity.--An employer shall not 
                assign any program participant to an employment 
                position if any employee of such employer is eligible 
                and qualified to be promoted to such position.
                    (D) Consultation.--Before placing any program 
                participant, the grantee shall consult with the 
                appropriate local labor organizations representing 
                employees in the area who are engaged in the same or 
                similar work as that proposed for the participant, to 
                ensure compliance with this paragraph.
    (f) Requirements for Individualized Plans of Services.--
            (1) In general.--The grantee shall develop an individual 
        plan of services for each program participant designed to 
        prepare such participant for employment positions available in 
        the local economy which offer the potential for advancement and 
        growth.
            (2) Counseling and training.--Each plan developed under 
        paragraph (1) shall provide for--
                    (A) case management services to monitor the 
                progress of the participant;
                    (B) appropriate education, training, and other 
                services to prepare the participant for employment;
                    (C) job placement assistance; and
                    (D) counseling and other services to aid the 
                participant in obtaining and retaining employment.
            (3) Duration.--Each plan developed under paragraph (1) 
        shall provide for at least 6 (and not more than 15) hours per 
        week of counseling, training, and services for each program 
        participant during the 24-month period beginning on the date 
        that such participant is placed in a position of employment 
        under the program.
            (4) Stipend.--Under each plan developed under paragraph 
        (1), the grantee shall pay the program participant a weekly 
        stipend in an amount equal to the product of--
                    (A) the hourly wage earned by such participant in 
                the position of employment in which such participant is 
                placed under the program, and
                    (B) the number of hours of counseling, training, 
                and services in which the participant took part during 
                such week.
    (g) Annual Reports.--
            (1) In general.--Each grantee shall submit to the Secretary 
        an annual report described in paragraph (2) for each year 
        during which any program participant participated in a 
        transitional jobs program under subsection (e) or received a 
        stipend under subsection (f)(4).
            (2) Form and contents.--Each report submitted under 
        paragraph (1) shall be submitted at such time and in such form 
        and manner as the Secretary may require, and shall include--
                    (A) demographic information about each participant, 
                including education level, literacy level, and prior 
                work experience;
                    (B) the identity of each entity that provided 
                counseling, training, or services to any participant 
                under subsection (f) and a description of the 
                counseling, training, or services so provided;
                    (C) the number of participants who left the program 
                before completing the program and the reasons 
                therefore;
                    (D) the number of participants who did and did not 
                secure unsubsidized employment during--
                            (i) the 60-day period beginning on the date 
                        that such participant completed the program; 
                        and
                            (ii) the 60-day period beginning on the 
                        date that such participant completed the plan 
                        of services described in subsection (f); and
                    (E) information regarding the unsubsidized 
                employment secured by participants during the periods 
                described in subparagraph (D), including industry, 
                occupation, starting wages and hours, availability of 
                employer sponsored health insurance, and sick and 
                vacation leave.
    (h) Program Assessment.--
            (1) In general.--The Secretary shall conduct a study 
        regarding the employment and earnings status of program 
        participants as of the date which is 12 months after the date 
        such participant completes the plan of services described in 
        subsection (f).
            (2) Statistical sampling.--The Secretary shall conduct the 
        study under paragraph (1) by using such method of statistical 
        sampling as the Secretary determines appropriate to obtain an 
        accurate representation of the employment and earnings status 
        of all program participants.
            (3) Grantee cooperation.--Each grantee shall provide such 
        information as the Secretary may request for purposes of 
        carrying out this subsection.
            (4) Report.--The Secretary shall submit a report to 
        Congress describing the results of the study conducted under 
        paragraph (1) and including such conclusions, analysis, and 
        recommendations as the Secretary considers appropriate.
    (i) Deadline for Expenditure of Grant Funds.--
            (1) Return of unexpended funds.--A grantee to which funds 
        are provided under this section shall remit to the Secretary 
        any portion of such funds which are not expended within 3 years 
        after date on which such funds are received by the grantee, 
        except to the extent that the grantee demonstrates to the 
        satisfaction of the Secretary that the grantee had good cause 
        for not expending the funds.
            (2) Redistribution of unexpended funds.--The Secretary 
        shall redistribute any funds remitted under paragraph (1) among 
        other eligible applicants who have not received a grant under 
        this section.
    (j) Regulations and Noncompliance.--
            (1) Regulations.--Within 90 days after the date of the 
        enactment of this Act, the Secretary shall prescribe such 
        regulations as may be necessary to carry out this section, 
        including procedures for the reporting of alleged violations of 
        this section and remedies for such violations.
            (2) Noncompliance.--If a grantee fails to comply with any 
        requirement of this title, the Secretary may take such actions 
        as are necessary to obtain reimbursement of any grant funds 
        which were misused or remain unused.
    (k) Definitions.--In this section:
            (1) Eligible applicants.--The term ``eligible applicant'' 
        means any of the following:
                    (A) A unit of local government.
                    (B) A community-based non-profit organization.
                    (C) A labor organization.
                    (D) An Indian tribe (as defined in section 4 of the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b)).
                    (E) A community, technical, or vocational college.
                    (F) A local welfare, human service, or workforce 
                development agency.
                    (G) An entity determined to be appropriate by the 
                Secretary.
                    (H) A combination of the entities described in this 
                paragraph.
            (2) Eligible rural area.--
                    (A) In general.--Within 180 days after the date of 
                the enactment of this section, the Secretary shall 
                define the term ``eligible rural area'' for purposes of 
                this section.
                    (B) Considerations.--The Secretary shall consider 
                including in the definition the following factors:
                            (i) Poverty level.
                            (ii) Trends pertaining to persistent 
                        poverty, joblessness, and population loss.
                            (iii) Loss of agricultural or other natural 
                        resource-based employment.
                            (iv) Significant labor market dependency on 
                        a single industry sector.
    (l) Appropriations.--
            (1) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated to the Secretary $75,000,000 for each of fiscal 
        years 2003 through 2007 to carry out this section.
            (2) Limitation on use of funds for administrative 
        expenses.--Of any amount made available under paragraph (1) for 
        a fiscal year, not more than 10 percent of such amount may be 
        used by the Secretary for administrative expenses and 
        evaluations.

SEC. 4. GRANTS TO IMPLEMENT RURAL WORKFORCE INVESTMENT PLANS.

    (a) Purposes.--The purposes of this section are--
            (1) to provide rural communities with flexible resources to 
        address labor market and workforce deficiencies;
            (2) to implement innovative community and workforce 
        development strategies that strengthen rural economies and 
        provide low-income individuals with jobs that will enable them 
        to become economically independent; and
            (3) to provide the targeted resources necessary to ensure 
        that rural, economically depressed regions do not continue to 
        fall behind urban and suburban regions in welfare reform 
        efforts.
    (b) Grant Authority.--The Secretary of Health and Human Services 
(in this section referred to as the ``Secretary'') shall make grants 
among eligible applicants, on a competitive basis, in accordance with 
this section.
    (c) Application Requirements.--An entity desiring to receive a 
grant under this section shall submit to the Secretary an application 
at such time and in such form and manner as the Secretary may require. 
Any such application shall include a proposed rural workforce 
investment plan described in subsection (d).
    (d) Rural Workforce Investment Plan.--
            (1) Plan requirements.--Any rural workforce investment plan 
        submitted by the applicant shall include--
                    (A) a description of the workforce needs of the 
                eligible rural area;
                    (B) a description of the basic services in the 
                eligible rural area that are available to assist low-
                income individuals in achieving economic security and 
                stability;
                    (C) a description of the opportunities for economic 
                diversification and innovation in the eligible rural 
                area, with particular attention to entrepreneurial 
                support and innovation;
                    (D) a description of the current and future human 
                resource capacity of the eligible rural area;
                    (E) an identification of innovative public and 
                private collaborations in the eligible rural area that 
                will build workforce capacity and provide low-income 
                individuals with support in achieving economic 
                stability and security;
                    (F) a clear explanation of how the proposed 
                activities and use of grant funds will increase the 
                ability of low-income individuals to get and keep jobs 
                that lead to economic security and stability;
                    (G) an identification of the entity which will 
                manage any grant funds awarded to such applicant; and
                    (H) a listing of annual performance goals and a 
                description of the strategies to be used to meet such 
                goals.
            (2) Workforce investment activities.--The activities 
        proposed to be carried out with grant funds under the plan may 
        include activities to--
                    (A) support the development and training of rural 
                workforces to facilitate the transition of individuals 
                from welfare to work and their movement into jobs that 
                provide them opportunities for advancement;
                    (B) provide assistance to entities in the eligible 
                rural area that provide workforce development services;
                    (C) assist with job training, workforce 
                development, and other needs related to the development 
                and maintenance of strong local and regional economies 
                including such facilities, infrastructure, and other 
                physical assets as are determined by the Secretary;
                    (D) assist in the development of collaborations 
                that link public, private, and philanthropic resources 
                to achieve solutions to rural workforce problems and 
                enable low-income individuals residing in rural areas 
                to move from dependency to economic security; and
                    (E) provide funds that will enable communities to 
                solve problems associated with the distance between 
                rural residents and available jobs.
    (e) Basis for Competition.--
            (1) Determinations by secretary.--The Secretary shall not 
        make a grant to an eligible applicant under this section unless 
        the Secretary has determined that--
                    (A) the plan submitted by the applicant meets the 
                requirements of subsection (d);
                    (B) the management and organizational structure of 
                the applicant is sufficient to oversee plan activities;
                    (C) the applicant is able to provide the grantee 
                share required by subsection (g);
                    (D) the applicant agrees to achieve, to the maximum 
                extent practicable, the annual performance goals 
                referred to in subsection (d)(1)(H);
                    (E) the grant will not supplant non-Federal funds 
                currently expended to support the purposes of this 
                section;
                    (F) the entity identified by the applicant to 
                manage the grant funds meets such requirements as the 
                Secretary shall establish to ensure that such entity is 
                qualified and reliable; and
                    (G) the applicant and the plan of such applicant 
                adequately represents the interests of all demographic 
                groups in the eligible rural area.
            (2) Preferences.--In awarding grants under this section, 
        the Secretary shall give a preference to eligible applicants--
                    (A) that exhibit entrepreneurial innovation, 
                particularly in a public-private partnership;
                    (B) that represent a broad coalition of interests 
                described in subparagraphs (A) through (G) of section 
                3(k)(1);
                    (C) that address deficiencies in job promotion, job 
                retention, and workforce development services;
                    (D) that encourage economic diversification in the 
                eligible rural area;
                    (E) whose rural workforce investment plan 
                strengthens workforce and community development so that 
                low-income people can get and keep jobs that will 
                enable them to increase their earnings and economic 
                independence and stability;
                    (F) from communities or regions where the 
                unemployment or poverty rate exceeds 120 percent of the 
                national average unemployment or poverty rate;
                    (G) from the rural counties which are most isolated 
                from a population center;
                    (H) whose rural workforce investment plan provides 
                for collaboration and coordination with local Workforce 
                Investment Boards established pursuant to section 117 
                of the Workforce Investment Act of 1998, and 
                transitional jobs programs established under section 3 
                of this Act; and
                    (I) whose rural workforce investment plan addresses 
                other workforce development needs identified by the 
                Secretary.
    (f) Use of Grant Funds.--Each grantee shall use the grant funds 
to--
            (1) implement the rural workforce investment plan approved 
        by the Secretary under subsection (e); and
            (2) prepare the annual reports described in subsection (h).
    (g) Cost Sharing.--
            (1) In general.--Each grantee shall provide cash, services, 
        materials, and other contributions (excluding grant funds), 
        which have a combined value of not less than 25 percent of the 
        grant funds, to carry out the activities described in 
        subsection (f).
            (2) Waiver.--The Secretary may waive the requirement of 
        paragraph (1) with respect to any grantee if the Secretary 
        determines that such requirement would create a barrier to full 
        participation in the program.
    (h) Annual reports.--With respect to each year covered by the 
workforce investment plan, each grantee shall submit to the Secretary a 
report at such time and in such form and manner as the Secretary may 
require. Each such report shall include a description of the grantee's 
success or failure in meeting the annual performance goals referred to 
in subsection (d)(1)(H).
    (i) Duties of the Secretary.--The Secretary shall--
            (1) provide advice and technical assistance to applicants 
        and grantees regarding workforce development and the means by 
        which to assist rural low-income individuals and families 
        attain jobs, develop basic life skills, and achieve economic 
        security and stability;
            (2) evaluate the progress of grantees in achieving the 
        annual performance goals referred to in subsection (d)(1)(H); 
        and
            (3) with respect to any year for which a grantee submits a 
        report under subsection (h), submit a report to the President 
        and to the Congress describing the effects on eligible rural 
        areas of the grants made under this section and such other 
        information as the Secretary determines appropriate.
    (j) Regulations and Noncompliance.--
            (1) Regulations.--Within 90 days after the date of the 
        enactment of this Act, the Secretary shall prescribe such 
        regulations as may be necessary to carry out this section, 
        including procedures for the reporting of alleged violations of 
        this section and remedies for such violations.
            (2) Noncompliance.--If a grantee fails to comply with any 
        requirement of this title, the Secretary may take such actions 
        as are necessary to obtain reimbursement of any grant funds 
        which were misused or remain unused.
    (k) Definitions.--In this section:
            (1) Eligible applicants.--The term ``eligible applicant'' 
        means a consortium of entities described in subparagraphs (A) 
        through (G) of section 3(k)(1) which represent the public, 
        nonprofit, and private sector interests in the eligible rural 
        area, including the interests of demographic groups which 
        compose such sectors.
            (2) Eligible rural area.--The term ``eligible rural area'' 
        has the meaning given such term under section 3(k)(2).
    (l) Appropriations.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated to the 
Secretary $75,000,000 for each of fiscal years 2003 through 2007 to 
carry out this section.
                                 <all>