[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 444 Reported in House (RH)]

                                                  Union Calendar No. 22
108th CONGRESS
  1st Session
                                H. R. 444

                          [Report No. 108-35]

 To amend the Workforce Investment Act of 1998 to establish a Personal 
Reemployment Accounts grant program to assist Americans in returning to 
                                 work.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 29, 2003

 Mr. Porter (for himself, Mr. Boehner, Mr. McKeon, Ms. Pryce of Ohio, 
Mr. Ballenger, Mr. Greenwood, Mr. Souder, Mr. Norwood, Mr. DeMint, Mr. 
   Isakson, Mr. Platts, Mr. Tiberi, Mr. Keller, Mr. Wilson of South 
    Carolina, Mr. Kline, Mr. Beauprez, Mr. Cunningham, Mr. Green of 
   Wisconsin, Mr. Hayes, Mr. McHugh, Mr. Nethercutt, Mr. Oxley, Mr. 
Simmons, Mr. Smith of New Jersey, Mr. Tiahrt, and Mr. Wolf) introduced 
 the following bill; which was referred to the Committee on Education 
                           and the Workforce

                             March 13, 2003

 Additional sponsors: Mr. Gillmor, Mr. Rogers of Alabama, Mr. Janklow, 
 Mr. Baker, Mrs. Myrick, Mr. Murphy, Ms. Ginny Brown-Waite of Florida, 
 Mr. Mario Diaz-Balart of Florida, Mr. Kolbe, Ms. Dunn, Ms. Hart, Mr. 
         Foley, Ms. Eddie Bernice Johnson of Texas, and Mr. Ose

                             March 13, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                               29, 2003]

_______________________________________________________________________

                                 A BILL


 
 To amend the Workforce Investment Act of 1998 to establish a Personal 
Reemployment Accounts grant program to assist Americans in returning 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 ``Back to Work Incentive Act of 
2003''.

SEC. 2. GRANTS TO SUPPORT PERSONAL REEMPLOYMENT ACCOUNTS.

    Subtitle B of title I of the Workforce Investment Act of 1998 (29 
U.S.C. 2811 et seq.) is amended by inserting after chapter 5 the 
following new chapter:

              ``CHAPTER 5A--PERSONAL REEMPLOYMENT ACCOUNTS

``SEC. 135A. PURPOSES.

    ``The purposes of this chapter are to provide for the establishment 
of personal reemployment accounts for certain individuals identified as 
likely to exhaust their unemployment compensation in order to--
            ``(1) accelerate the reemployment of such individuals;
            ``(2) promote the retention in employment of such 
        individuals; and
            ``(3) provide such individuals with enhanced flexibility, 
        choice, and control in obtaining intensive reemployment, 
        training, and supportive services.

``SEC. 135B. DEFINITION.

    ``In this chapter, the term `State' means each of the several 
States of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, and the United States Virgin Islands.

``SEC. 135C. GRANTS TO STATES.

    ``(a) Grants.--The Secretary shall--
            ``(1) reserve \2/10\ of 1 percent of the amount 
        appropriated under section 137(d) for use under section 135I; 
        and
            ``(2) use the remainder of the amount appropriated under 
        section 137(d) to make allotments in accordance with subsection 
        (b).
    ``(b) Allotment Among States.--
            ``(1) In general.--From the amount made available under 
        subsection (a)(2), the Secretary shall allot to each State an 
        amount that is proportionate to the relative number of 
        unemployed individuals in the State as compared to the total 
        number of unemployed individuals in all States in order to 
        provide assistance for eligible individuals in accordance with 
        this chapter.
            ``(2) Small state minimum allotment.--The Secretary shall 
        ensure that--
                    ``(A) each State (other than the United States 
                Virgin Islands) shall receive an allotment under 
paragraph (1) that is not less than \3/10\ of 1 percent of the amount 
made available under subsection (a)(2) for the fiscal year; and
                    ``(B) the United States Virgin Islands shall 
                receive an allotment under paragraph (1) that is not 
                less than \1/10\ of 1 percent of the amount made 
                available under subsection (a)(2) for the fiscal year.
    ``(c) Availability.--Notwithstanding section 189(g)(1), amounts 
made available under subsection (a) to carry out this chapter shall be 
available for obligation and expenditure beginning on the date of the 
enactment of the Back to Work Incentive Act of 2003.

``SEC. 135D. WITHIN STATE ALLOCATION.

    ``(a) Allocation.--Of the amount allotted to a State under section 
135C--
            ``(1) not more than 2 percent of the amount may be reserved 
        by the Governor of the State to enhance the system of worker 
        profiling described in section 303(j) of the Social Security 
        Act and to establish and operate a data management system, as 
        necessary, and carry out other appropriate activities to 
        implement this chapter;
            ``(2) 5 percent of the amount shall be allocated by the 
        State to local areas in accordance with the formula described 
        in subsection (b) for start-up costs and other operating costs 
        related to the provision of assistance under this chapter; and
            ``(3) the remainder of the amount shall be provided to 
        local areas consistent with the methods and procedures 
        described in section 135G(a)(4) for the establishment of 
        personal reemployment accounts described in section 135E for 
        eligible individuals in such local areas.
    ``(b) Formula.--A State shall allocate funds to local areas in the 
State under subsection (a)(2) in an amount that is proportionate to the 
relative number of unemployed individuals in the local area as compared 
to the total number of unemployed individuals in the State.
    ``(c) Availability.--Notwithstanding section 189(g)(2), amounts 
allotted to a State under section 135C, and amounts subsequently 
provided to a local area under this section, shall be available for 
obligation and expenditure only for the 3-year period beginning on the 
date of the enactment of the Back to Work Incentive Act of 2003.

``SEC. 135E. PERSONAL REEMPLOYMENT ACCOUNTS.

    ``(a) Accounts.--
            ``(1) In general.--Funds provided to a local area under 
        section 135D shall be used to provide eligible individuals with 
        personal reemployment accounts to be used in accordance with 
        section 135F. An eligible individual may receive only one 
        personal reemployment account.
            ``(2) Amount.--The State shall establish the amount of a 
        personal reemployment account, which shall be uniform 
        throughout the State, and shall not exceed $3,000.
    ``(b) Eligible Individuals.--
            ``(1) In general.--Each State shall establish eligibility 
        criteria for individuals for personal reemployment accounts in 
        accordance with this subsection.
            ``(2) Eligibility criteria requirements.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                individual shall be eligible to receive assistance 
                under this chapter if, beginning after the date of 
                enactment of the Back to Work Incentive Act of 2003, 
                the individual--
                            ``(i) is identified by the State pursuant 
                        to section 303(j)(1) of the Social Security Act 
                        as likely to exhaust regular unemployment 
                        compensation and in need of job search 
                        assistance to make a successful transition to 
                        new employment or an individual's unemployment 
                        can be attributed in substantial part to unfair 
                        competition from Federal Prison Industries, 
                        Inc.;
                            ``(ii) is receiving regular unemployment 
                        compensation under any State or Federal 
                        unemployment compensation program administered 
                        by the State; and
                            ``(iii) is eligible for not less than 20 
                        weeks of regular unemployment compensation 
                        described in clause (ii).
                    ``(B) Additional eligibility and priority 
                criteria.--A State may establish criteria that is in 
                addition to the criteria described in subparagraph (A) 
                for the eligibility of individuals to receive 
                assistance under this chapter. A State may also 
                establish criteria for priority in the provision of 
                assistance to such eligible individuals under this 
                chapter.
            ``(3) Transition rule.--
                    ``(A) Previously identified as likely to exhaust 
                unemployment compensation.--
                            ``(i) In general.--At the option of the 
                        State, and subject to clause (ii), an 
                        individual may be eligible to receive 
                        assistance under this chapter if the 
                        individual--
                                    ``(I) during the 13-week period 
                                ending the week prior to the date of 
                                the enactment of the Back to Work 
                                Incentive Act of 2003, was identified 
                                by the State pursuant to section 
                                303(j)(1) of the Social Security Act as 
                                likely to exhaust regular unemployment 
                                compensation and in need of job search 
                                assistance to make a successful 
                                transition to new employment; and
                                    ``(II) otherwise meets the 
                                requirements of clauses (ii) and (iii) 
                                of paragraph (2)(A).
                            ``(ii) Additional eligibility and priority 
                        criteria.--A State may establish criteria that 
                        is in addition to the criteria described in 
                        clause (i) for the eligibility of individuals 
                        to receive assistance under this chapter. A 
                        State may also establish criteria for priority 
                        in the provision of assistance to such eligible 
                        individuals under this chapter.
                    ``(B) Previously exhausted unemployment 
                compensation.--At the option of the State, an 
                individual may be eligible to receive assistance under 
                this chapter if the individual--
                            ``(i) during the 26-week period ending the 
                        week prior to the date of the enactment of the 
                        Back to Work Incentive Act of 2003, exhausted 
                        all rights to any unemployment compensation; 
                        and
                            ``(ii)(I) is enrolled in training and needs 
                        additional support to complete such training, 
                        with a priority of service to be provided to 
                        such individuals who are training for shortage 
                        occupations or high-growth industries; or
                            ``(II) is separated from employment in an 
                        industry or occupation that has experienced 
                        declining employment, or no longer provides any 
                        employment, in the local labor market during 
                        the two-year period ending on the date of the 
                        determination of eligibility of the individual 
                        under this subparagraph.
            ``(4) No individual entitlement.--Nothing in this chapter 
        shall be construed to entitle any individual to receive a 
        personal reemployment account.
    ``(c) Local Administration.--
            ``(1) Information and attestation.--Prior to the 
        establishment of a personal reemployment account for an 
        eligible individual under this chapter, the local board, 
        through the one-stop delivery system, shall ensure that the 
        individual--
                    ``(A) is informed of the requirements applicable to 
                the personal reemployment account, including the 
                allowable uses of funds from the account, the 
                limitations on access to services described under 
                section 135F(a)(3)(C) and a description of such 
                services, and the conditions for receiving a 
                reemployment bonus;
                    ``(B) has the option to develop a personal 
                reemployment plan which will identify the employment 
                goals and appropriate combination of services selected 
                by the individual to achieve the employment goals; and
                    ``(C) signs an attestation that the individual has 
                been given the option to develop a personal 
                reemployment plan in accordance with subparagraph (B), 
                will comply with the requirements relating to the 
                personal reemployment accounts under this chapter, and 
                will reimburse the account or, if the account has been 
                terminated, the program under this chapter, for any 
                amounts expended from the account that are not 
                allowable.
            ``(2) Periodic interviews.--If a recipient exhausts his or 
        her rights to any unemployment compensation, and the recipient 
        has a remaining balance in his or her personal reemployment 
        account, the one-stop delivery system shall conduct periodic 
        interviews with the recipient to assist the recipient in 
        meeting his or her individual employment goals.

``SEC. 135F. USE OF FUNDS.

    ``(a) Allowable Activities.--
            ``(1) In general.--Subject to the requirements contained in 
        paragraphs (2) and (3), a recipient may use amounts in a 
        personal reemployment account to purchase one or more of the 
        following:
                    ``(A) Intensive services, including those types of 
                services specified in section 134(d)(3)(C).
                    ``(B) Training services, including those types of 
                services specified in section 134(d)(4)(D).
                    ``(C) Supportive services, except for needs-related 
                payments.
                    ``(D) Assistance to purchase or lease an 
                automobile, if such assistance is necessary to allow 
                the recipient to accept a bona fide offer of employment 
                for which there is a reasonable expectation of long-
                term duration.
            ``(2) Delivery of services.--The following requirements 
        relating to delivery of services shall apply to the program 
        under this chapter:
                    ``(A) Recipients may use funds from the personal 
                reemployment account to purchase the services described 
                in paragraph (1) through the one-stop delivery system 
                on a fee-for-service basis, or through other providers, 
                consistent with safeguards described in the State and 
                local plans under section 135G.
                    ``(B) The local board, through the one-stop 
                delivery system, may pay costs for such services 
                directly on behalf of the recipient, through a voucher 
                system, or by reimbursement to the recipient upon 
                receipt of appropriate cost documentation, consistent 
                with safeguards described in the State plan under 
                section 135G.
                    ``(C) Each local board, through the one-stop 
                delivery system, shall make available to recipients 
                information on training providers specified in section 
                134(d)(4)(F)(ii), information available to the one-stop 
                delivery system on providers of the intensive and 
                supportive services described in paragraph (1), and 
                information relating to occupations in demand in the 
                local area.
            ``(3) Limitations.--The following limitations shall apply 
        with respect to personal reemployment accounts under this 
        chapter:
                    ``(A)(i) Amounts in a personal reemployment account 
                may be used for up to one year from the date of the 
                establishment of the account.
                    ``(ii) No personal reemployment account may be 
                established beginning 2 years after the date of the 
                enactment of the Back to Work Incentive Act of 2003.
                    ``(B) Each recipient shall submit cost 
                documentation as required by the one-stop delivery 
                system.
                    ``(C) For the 1-year period following the 
                establishment of the account, recipients may not 
                receive intensive, supportive, or training services 
                funded under this title except on a fee-for-services 
                basis as specified in paragraph (2)(A).
                    ``(D) Amounts in a personal reemployment account 
                shall be nontransferable.
    ``(b) Income Support.--A State may authorize recipients determined 
eligible under section 135E(b)(3)(B) to withdraw amounts from the 
personal reemployment account  on a weekly basis for purposes of income 
support in amounts up to the average weekly amount of unemployment 
compensation that the individual received prior to his or her 
exhaustion of rights to unemployment compensation if the individual is 
engaged in job search, intensive services, or training that is expected 
to lead to employment.
    ``(c) Reemployment Bonus.--
            ``(1) In general.--Subject to paragraph (2)--
                    ``(A) if a recipient determined eligible under 
                section 135E(b)(2) obtains full-time employment before 
                the end of the 13th week of unemployment for which 
                unemployment compensation is paid, the balance of his 
                or her personal reemployment account shall be provided 
                directly to the recipient in cash; and
                    ``(B) if a recipient determined eligible under 
                section 135E(b)(3) obtains full-time employment before 
                the end of the 13th week after the date on which the 
                account is established, the balance of his or her 
                personal reemployment account shall be provided 
                directly to the recipient in cash.
            ``(2) Limitations.--The following limitations shall apply 
        with respect to a recipient described in paragraph (1):
                    ``(A) 60 percent of the remaining personal 
                reemployment account balance shall be paid to the 
                recipient at the time of reemployment.
                    ``(B) 40 percent of the remaining personal 
                reemployment account balance shall be paid to the 
                recipient after 26 weeks of employment retention.
            ``(3) Exception regarding subsequent unemployment.--If a 
        recipient described in paragraph (1) subsequently becomes 
        unemployed due to a lack of work after receiving the portion of 
        the reemployment bonus specified under paragraph (2)(A), the 
        individual may use the amount remaining in the personal 
        reemployment account for the purposes described in subsection 
        (a) but may not be eligible for additional cash payments under 
        this subsection.

``SEC. 135G. STATE AND LOCAL PLANS.

    ``(a) State Plan.--In order for a State to receive an allotment 
under section 135C, the Governor of the State shall submit to the 
Secretary a plan for approval that includes a description of how the 
State intends to carry out the personal reemployment accounts 
authorized under this chapter, including--
            ``(1) the criteria and methods to be used for determining 
        eligibility for the personal reemployment accounts, including 
        whether the State intends to include the optional categories 
        described in section 135E(b)(3), and the additional criteria 
        and priority for service that the State intends to apply, if 
        any, pursuant to section 135E(b)(2)(B);
            ``(2) the methods or procedures, developed in consultation 
        with local boards and chief elected officials, to be used to 
        provide eligible individuals information relating to services 
        and providers, and safeguards, developed in consultation with 
        such boards and officials, to ensure that funds from the 
        personal reemployment accounts are used for purposes authorized 
        under this chapter and to ensure the quality and integrity of 
        services and providers, consistent with the purpose of 
        providing such individuals with enhanced flexibility, choice, 
        and control in obtaining intensive reemployment, training, and 
        supportive services;
            ``(3) how the State will coordinate the activities carried 
        out under this chapter with the employment and training 
        activities carried out under section 134 and other activities 
        carried out by each local board through the one-stop delivery 
        system in the State; and
            ``(4) the methods and procedures for providing funds to 
        local areas under section 135D(a)(3).
    ``(b) Local Plan.--In order for a local area to receive an 
allocation under section 135D, the local board, in partnership with the 
chief elected official for the local area involved, shall submit to the 
Governor a plan for approval that includes a description of how the 
local board intends to carry out the personal reemployment accounts, 
consistent with the requirements of this chapter and with the State 
plan established under subsection (a), including--
            ``(1) a description of how the local board will coordinate 
        the activities carried out under this chapter with the 
        employment and training activities carried out in the local 
        area under section 134; and
            ``(2) a description of the methods or procedures to be used 
        to provide eligible individuals information relating to the 
        jobs that are available in the local area in high demand 
        occupations and information on services and providers, and the 
        safeguards the local area will initiate to ensure that funds 
        from the personal reemployment accounts are used for purposes 
        authorized under this chapter and to ensure the quality and 
        integrity of services and providers, consistent with the 
        purpose of providing such individuals with enhanced 
        flexibility, choice, and control in obtaining intensive 
        reemployment, training, and supportive services, and consistent 
        with the State plan.
    ``(c) State Plan Submission and Approval.--A State plan submitted 
to the Secretary under subsection (a) by a Governor shall be considered 
to be approved by the Secretary at the end of the 30-day period 
beginning on the date the Secretary receives the plan, unless the 
Secretary makes a written determination during such period that the 
plan is incomplete or otherwise inconsistent with the provisions of 
this chapter.

``SEC. 135H. PROGRAM INFORMATION.

    ``The Secretary may require from States the collection and 
reporting on such financial, performance, and other program-related 
information as the Secretary determines is appropriate to carry out 
this chapter, including the evaluation described in section 135I.

``SEC. 135I. EVALUATION.

    ``(a) Evaluation.--From the amount made available under section 
135C(a)(1), the Secretary, pursuant to the authority provided under 
section 172, shall, directly or through grants, contracts, or 
cooperative agreements with appropriate entities, conduct an evaluation 
of the activities carried out under this chapter.
    ``(b) Conduct of Evaluation.--The evaluation shall examine the 
effectiveness of such activities in achieving the purposes described in 
section 135A and such other purposes as the Secretary determines are 
appropriate.
    ``(c) Report.--The report to Congress under section 172(e) relating 
to the results of the evaluations required under section 172 shall 
include the recommendation of the Secretary with respect to the use of 
personal reemployment accounts as a mechanism to assist individuals in 
obtaining and retaining employment.''.

SEC. 3. ADMINISTRATION.

    Section 117(d) of the Workforce Investment Act of 1998 (29 U.S.C. 
2832(d)) is amended--
            (1) in paragraph (3)(B)(i)(I), by striking ``sections 128 
        and 133'' and inserting ``sections 128, 133, and 135D''; and
            (2) in paragraph (4), by inserting ``, activities 
        authorized under section 135F'' after ``section 134''.

SEC. 4. DELIVERY OF SERVICES.

    Section 134(c)(1) of the Workforce Investment Act of 1998 (29 
U.S.C. 2864(c)(1)) is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) shall provide access to personal reemployment 
                accounts in accordance to section 135E.''.

SEC. 5. AUTHORIZATION OF APPROPRIATION.

    Section 137 of the Workforce Investment Act of 1998 (29 U.S.C. 
2872) is amended by adding at the end the following:
    ``(d) Personal Reemployment Accounts.--
            ``(1) In general.--There is authorized to be appropriated 
        $3,600,000,000 for fiscal year 2003 to carry out chapter 5A.
            ``(2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) to carry 
        out section 135I are authorized to remain available until 
        expended.''.

SEC. 6. CONFORMING AMENDMENT.

    The table of contents for the Workforce Investment Act of 1998 is 
amended by inserting after the items relating to chapter 5 of subtitle 
B of title I the following new items:

              ``Chapter 5A--Personal Reemployment Accounts

``Sec. 135A. Purposes.
``Sec. 135B. Definition.
``Sec. 135C. Grants to States.
``Sec. 135D. Within State allocation.
``Sec. 135E. Personal reemployment accounts.
``Sec. 135F. Use of funds.
``Sec. 135G. State and local plans.
``Sec. 135H. Program information.
``Sec. 135I. Evaluation.''.




                                                  Union Calendar No. 22

108th CONGRESS

  1st Session

                               H. R. 444

                          [Report No. 108-35]

_______________________________________________________________________

                                 A BILL

 To amend the Workforce Investment Act of 1998 to establish a Personal 
Reemployment Accounts grant program to assist Americans in returning to 
                                 work.

_______________________________________________________________________

                             March 13, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed