[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 786 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                 S. 786

To amend the temporary assistance to needy families program under part 
    A of title IV of the Social Security Act to provide grants for 
          transitional jobs programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 3, 2003

 Mr. Bingaman (for himself, Mr. Rockefeller, and Mr. Breaux) introduced 
        the following bill; which was read twice and referred to the 
        Committee on FinanceYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

_______________________________________________________________________

                                 A BILL


 
To amend the temporary assistance to needy families program under part 
    A of title IV of the Social Security Act to provide grants for 
          transitional jobs programs, and for other purposes.

    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 ``Business Links Act of 2003''.

SEC. 2. TRANSITIONAL JOBS GRANTS.

    (a) In General.--Section 403(a)(4) of the Social Security Act (42 
U.S.C. 603(a)(4)) is amended to read as follows:
            ``(4) Innovative business link partnership grants.--
                    ``(A) In general.--The Secretary and the Secretary 
                of Labor (in this paragraph referred to as the 
                ``Secretaries'') jointly shall award grants in 
                accordance with this paragraph for projects proposed by 
                eligible applicants based on the following:
                            ``(i) The potential effectiveness of the 
                        proposed project in carrying out the activities 
                        described in subparagraph (E).
                            ``(ii) Evidence of the ability of the 
                        eligible applicant to leverage private, State, 
                        and local resources.
                            ``(iii) Evidence of the ability of the 
                        eligible applicant to coordinate with other 
                        organizations at the State and local level.
                    ``(B) Definition of eligible applicant.--
                            ``(i) In general.--In this paragraph, the 
                        term `eligible applicant' means a nonprofit 
                        organization, a local workforce investment 
                        board established under section 117 of the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2832), a State, a political subdivision of a 
                        State, or an Indian tribe.
                            ``(ii) Grants to promote business 
                        linkages.--
                                    ``(I) Additional eligible 
                                applicant.--Only for purposes of grants 
                                to carry out the activities described 
                                in subparagraph (E)(i), the term 
                                `eligible applicant' includes an 
                                employer.
                                    ``(II) Additional requirement.--In 
                                order to qualify as an eligible 
                                applicant for purposes of subparagraph 
                                (E)(i), the applicant must provide 
                                evidence that the application has been 
                                developed by and will be implemented by 
                                a local or regional consortium that 
                                includes, at minimum, employers or 
                                employer associations, and education 
                                and training providers, in consultation 
                                with local labor organizations and 
                                social service providers that work with 
                                low-income families or individuals with 
                                disabilities.
                    ``(C) Requirements.--
                            ``(i) In general.--In awarding grants under 
                        this paragraph, the Secretaries shall--
                                    ``(I) consider the needs of rural 
                                areas and cities with large 
                                concentrations of residents with an 
                                income that is less than 150 percent of 
                                the poverty line; and
                                    ``(II) ensure that--
                                            ``(aa) all of the funds 
                                        made available under this 
                                        paragraph (other than funds 
                                        reserved for use by the 
                                        Secretaries under subparagraph 
                                        (J)) shall be used for 
                                        activities described in 
                                        subparagraph (E);
                                            ``(bb) not less than 40 
                                        percent of the funds made 
                                        available under this paragraph 
                                        (other than funds so reserved) 
                                        shall be used for activities 
                                        described in subparagraph 
                                        (E)(i); and
                                            ``(cc) not less than 40 
                                        percent of the funds made 
                                        available under this paragraph 
                                        (other than funds so reserved) 
                                        shall be used for the 
                                        activities described in 
                                        subparagraph (E)(ii).
                            ``(ii) Continuation of availability.--If 
                        any portion of the funds required to be used 
                        for activities referred to in item (bb) or (cc) 
                        of clause (i)(II) are not awarded in a fiscal 
                        year, such portion shall continue to be 
                        available in the subsequent fiscal year for the 
                        same activity, in addition to other amounts 
                        that may be available for such activities for 
                        that subsequent fiscal year.
                    ``(D) Determination of grant amount.--
                            ``(i) In general.--Subject to clause (ii), 
                        in determining the amount of a grant to be 
                        awarded under this paragraph for a project 
                        proposed by an eligible applicant, the 
                        Secretaries shall provide the eligible 
                        applicant with an amount sufficient to ensure 
                        that the project has a reasonable opportunity 
                        to be successful, taking into account--
                                    ``(I) the number and 
                                characteristics of the individuals to 
                                be served by the project;
                                    ``(II) the level of unemployment in 
                                the area to be served by the project;
                                    ``(III) the job opportunities and 
                                job growth in such area;
                                    ``(IV) the poverty rate for such 
                                area; and
                                    ``(V) such other factors as the 
                                Secretary deems appropriate in such 
                                area.
                            ``(ii) Maximum award for grants to promote 
                        business linkages or provide transitional jobs 
                        programs.--
                                    ``(I) In general.--In the case of a 
                                grant to carry out activities described 
                                in clause (i) or (ii) of subparagraph 
                                (E), an eligible applicant awarded a 
                                grant under this paragraph may not 
                                receive more than $10,000,000 per 
                                fiscal year under the grant.
                                    ``(II) Rule of construction.--
                                Nothing in subclause (I) shall be 
                                construed as precluding an otherwise 
                                eligible applicant from receiving 
                                separate grants to carry out activities 
                                described in clause (i) or (ii) of 
                                subparagraph (E).
                            ``(iii) Grant period.--The period in which 
                        a grant awarded under this paragraph may be 
                        used shall be specified for a period of not 
                        less than 36 months and not more than 60 
                        months.
                    ``(E) Allowable activities.--An eligible applicant 
                awarded a grant under this paragraph shall use funds 
                provided under the grant to do the following:
                            ``(i) Promote business linkages.--
                                    ``(I) In general.--To promote 
                                business linkages in which funds shall 
                                be used to fund new or expanded 
                                programs that are designed to--
                                            ``(aa) substantially 
                                        increase the wages of eligible 
                                        individuals (as defined in 
                                        subparagraph (F)), whether 
                                        employed or unemployed, who 
                                        have limited English 
                                        proficiency or other barriers 
                                        to employment by creating or 
                                        upgrading job and related 
                                        skills in partnership with 
                                        employers, especially by 
                                        providing supports and services 
                                        at or near work sites; and
                                            ``(bb) identify and 
                                        strengthen career pathways by 
                                        expanding and linking work and 
                                        training opportunities for such 
                                        individuals in collaboration 
                                        with employers.
                                    ``(II) Consideration of in-kind, 
                                in-cash resources.--In determining 
                                which programs to fund under this 
                                clause, an eligible applicant awarded a 
                                grant under this paragraph shall 
                                consider the ability of a consortium to 
                                provide funds in-kind or in-cash 
                                (including employer-provided, paid 
                                release time) to help support the 
                                programs for which funding is sought.
                                    ``(III) Priority.--In determining 
                                which programs to fund under this 
                                clause, an eligible applicant awarded a 
                                grant under this paragraph shall give 
                                priority to programs that include 
                                education or training for which 
                                participants receive credit toward a 
                                recognized credential, such as an 
                                occupational certificate or license.
                                    ``(IV) Use of funds.--
                                            ``(aa) In general.--Funds 
                                        provided to a program under 
                                        this clause may be used for a 
                                        comprehensive set of employment 
                                        and training benefits and 
                                        services, including job 
                                        development, job matching, 
                                        workplace supports and 
                                        accommodations, curricula 
                                        development, wage subsidies, 
                                        retention services, and such 
                                        other benefits or services as 
                                        the program deems necessary to 
                                        achieve the overall objectives 
                                        of this clause.
                                            ``(bb) Provision of 
                                        services.--So long as a program 
                                        is principally designed to 
                                        assist eligible individuals, 
                                        (as defined in subparagraph 
                                        (F)), funds may be provided to 
                                        a program under this clause 
                                        that also serves low-earning 
                                        employees of 1 or more 
                                        employers even if such 
                                        individuals are not within the 
                                        definition of eligible 
                                        individual (as so defined).
                            ``(ii) Provide for transitional jobs 
                        programs.--
                                    ``(I) In general.--To provide for 
                                wage-paying transitional jobs programs 
                                which combine time-limited employment 
                                in the public or nonprofit private 
                                sector that is subsidized with public 
                                funds with skill development and 
                                activities to remove barriers to 
                                employment, pursuant to an 
                                individualized plan (or, in the case of 
                                an eligible individual described in 
                                subparagraph (F)(i), an individual 
                                responsibility plan developed for an 
                                individual under section 408(b)). Such 
                                programs also shall provide job 
                                development and placement assistance to 
                                individual participants to help them 
                                move from subsidized employment in 
                                transitional jobs into unsubsidized 
                                employment, as well as retention 
                                services after the transition to 
                                unsubsidized employment.
                                    ``(II) Eligible participants.--The 
                                Secretary shall ensure that individuals 
                                who participate in transitional jobs 
                                programs funded under a grant made 
                                under this paragraph shall be 
                                individuals who have been unemployed 
                                because of limited skills, experience, 
                                or other barriers to employment, and 
                                who are eligible individuals (as 
                                defined in subparagraph (F)), provided 
                                that so long as a program is designed 
                                to, and principally serves, eligible 
                                individuals (as so defined), a limited 
                                number of individuals who are 
                                unemployed because of limited skills, 
                                experience, or other barriers to 
                                employment, and who have an income 
                                below 100 percent of the Federal 
                                poverty line but who do not satisfy the 
                                definition of eligible individual (as 
                                so defined) may be served in the 
                                program to the extent the Secretaries 
                                determine that the inclusion of such 
                                individuals in the program is 
                                appropriate.
                                    ``(III) Use of funds.--Funds 
                                provided to a program under this clause 
                                may only be used in accordance with the 
                                following:
                                            ``(aa) To create subsidized 
                                        transitional jobs in which work 
                                        shall be performed directly for 
                                        the program operator or at 
                                        other public and non profit 
                                        organizations (in this 
                                        subclause referred to as 
                                        `worksite employers') in the 
                                        community, and in which 100 
                                        percent of the wages shall be 
                                        subsidized, except as described 
                                        in item (ff) regarding 
                                        placements in the private, for 
                                        profit sector.
                                            ``(bb) Participants shall 
                                        be paid at the rate paid to 
                                        unsubsidized employees of the 
                                        worksite employer who perform 
                                        comparable work at the 
worksite where the individual is placed. If no other employees perform 
the same or comparable work then wages shall be set, at a minimum, at 
50 percent of the Lower Living Standard Income Level (commonly referred 
to as the `LLSIL'), as determined under section 101(24) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801(24)), for a family of 
3 based on 35 hours per week.
                                            ``(cc) Transitional jobs 
                                        shall be limited to not less 
                                        than 6 months and not more than 
                                        24 months, however, nothing 
                                        shall preclude a participant 
                                        from moving into unsubsidized 
                                        employment at a point prior to 
                                        the maximum duration of the 
                                        transitional job placement. 
                                        Participants shall be paid 
                                        wages based on a workweek of 
                                        not less than 30 hours per week 
                                        or more than 40 hours per week, 
                                        except that a parent of a child 
                                        under the age of 6, a child who 
                                        is disabled, or a child with 
                                        other special needs, or an 
                                        individual who for other 
                                        reasons cannot successfully 
                                        participate for 30 to 40 hours 
                                        per week, may be allowed to 
                                        participate for more limited 
                                        hours, but not less than 20 
                                        hours per week. In any work 
                                        week, 50 percent to 80 percent 
                                        of hours shall be spent in the 
                                        transitional job and 20 percent 
                                        to 50 percent of hours shall be 
                                        spent in education or training, 
                                        or other services designed to 
                                        reduce or eliminate any 
                                        barriers.
                                            ``(dd) Program operators 
                                        shall provide case management 
                                        services and ensure access to 
                                        appropriate education, 
                                        training, and other services, 
                                        including job accommodation, 
                                        work supports, and supported 
                                        employment, as appropriate and 
                                        consistent with an individual 
                                        plan that is based on the 
                                        individual's strengths, 
                                        resources, priorities, 
                                        concerns, abilities, 
                                        capabilities, career interests, 
                                        and informed choice and that is 
                                        developed with each 
                                        participant. The goal of each 
                                        participant's plan shall focus 
                                        on preparation for unsubsidized 
                                        jobs in demand in the local 
                                        economy which offer the 
                                        potential for advancement and 
                                        growth. Services shall also 
                                        include job placement 
                                        assistance and retention 
                                        services, which may include 
                                        coaching and work place 
                                        supports, for 12 months after 
                                        entry into unsubsidized 
                                        placement. Participants shall 
                                        also receive support services 
                                        such as subsidized child care 
                                        and transportation, on the same 
                                        basis as those services are 
                                        made available to recipients of 
                                        assistance under the State 
                                        program funded under this part 
                                        who are engaged in work-related 
                                        activities.
                                            ``(ee) Providers shall work 
                                        with individual recipients to 
                                        determine eligibility for other 
                                        employment-related supports 
                                        which may include (but are not 
                                        limited to) supported 
                                        employment, other vocational 
                                        rehabilitation services, and 
                                        programs or services available 
                                        under the Workforce Investment 
                                        Act of 1998 (29 U.S.C. 2801 et 
                                        seq.), or the ticket to work 
                                        and self-sufficiency program 
                                        established under section 1148, 
                                        and, to the extent possible, 
                                        shall provide transitional 
                                        employment in collaboration 
                                        with entities providing, or 
                                        arranging for the provision of, 
                                        such other supports.
                                            ``(ff) Not more than 20 
                                        percent of the placements for a 
                                        grantee shall be with a private 
                                        for-profit company, except that 
                                        such 20 percent limit may be 
                                        waived by the Secretary for 
                                        programs in rural areas when 
                                        the grantee can demonstrate 
                                        insufficient public and non-
                                        profit worksites. When a 
                                        placement is made at a private 
                                        for-profit company, the company 
                                        shall pay 50 percent of program 
                                        costs (including wages) for 
                                        each participant, and the 
                                        company shall agree, in 
                                        writing, to hire each 
                                        participant into an 
                                        unsubsidized position at the 
                                        completion of the agreed upon 
                                        subsidized placement, or 
                                        sooner, provided that the 
                                        participant's job performance 
                                        has been satisfactory. Not more 
                                        than 5 percent of the workforce 
                                        of a private for-profit company 
                                        may be composed of transitional 
                                        jobs participants.
                                    ``(IV) Definition of transitional 
                                jobs program.--In this clause, the term 
                                `transitional jobs program' means a 
                                program that is intended to serve 
                                current and former recipients of 
                                assistance under a State or tribal 
                                program funded under this part and 
                                other low-income individuals who have 
                                been unable to secure employment 
                                through job search or other employment-
                                related services because of limited 
                                skills, experience, or other barriers 
                                to employment.
                            ``(iii) Capitalization.--To develop 
                        capitalization procedures for the delivery of 
                        self-sustainable social services.
                            ``(iv) Administrative expenditures.--Not 
                        more than 5 percent of the funds awarded to an 
                        eligible applicant under this paragraph may be 
                        used for administrative expenditures incurred 
                        in carrying out the activities described in 
                        clause (i), (ii), or (iii) or for expenditures 
                        related to carrying out the assessments and 
                        reports required under subparagraph (H).
                    ``(F) Definition of eligible individual.--In this 
                paragraph, the term `eligible individual' means--
                            ``(i) an individual who is a parent who is 
                        a recipient of assistance under a State or 
                        tribal program funded under this part;
                            ``(ii) an individual who is a parent who 
                        has ceased to receive assistance under such a 
                        State or tribal program;
                            ``(iii) an individual who is at risk of 
                        receiving assistance under a State or tribal 
                        program funded under this part;
                            ``(iv) an individual with a disability; or
                            ``(v) a noncustodial parent who is 
                        unemployed, or is having difficulty in paying 
                        child support obligations, including such a 
                        parent who is a former criminal offender.
                    ``(G) Application.--Each eligible applicant 
                desiring a grant under this paragraph shall submit an 
                application to the Secretaries at such time, in such 
                manner, and accompanied by such information as the 
                Secretaries may require.
                    ``(H) Assessments and reports by grantees.--
                            ``(i) In general.--An eligible applicant 
                        that receives a grant under this paragraph 
                        shall assess and report on the outcomes of 
                        programs funded under the grant, including the 
                        identity of each program operator, demographic 
                        information about each participant, including 
                        education level, literacy level, prior work 
                        experience and identified barriers to 
                        employment, the nature of education, training, 
                        or other services received by the participant, 
                        the reason for the participant's leaving the 
                        program, and outcomes related to the placement 
                        of the participant in an unsubsidized job, 
                        including 1-year employment retention, wage at 
                        placement, benefits, and earnings progression, 
                        as specified by the Secretaries.
                            ``(ii) Assistance.--The Secretaries shall--
                                    ``(I) assist grantees in conducting 
                                the assessment required under clause 
                                (i) by making available where 
                                practicable low-cost means of tracking 
                                the labor market outcomes of 
                                participants; and
                                    ``(II) encourage States to provide 
                                such assistance.
                    ``(I) Application to requirements of the state 
                program.--
                            ``(i) Work participation requirements.--
                        With respect to any month in which a recipient 
                        of assistance under a State or tribal program 
                        funded under this part who satisfactorily 
                        participates in a business linkage or 
                        transitional jobs program described in 
                        subparagraph (E) that is paid for with funds 
                        made available under a grant made under this 
                        paragraph, such participation shall be 
                        considered to satisfy the work participation 
                        requirements of section 407 and be included for 
                        purposes of determining monthly participation 
                        rates under subsection (b)(1)(B)(i) of that 
                        section.
                            ``(ii) Participation not considered 
                        assistance.--A benefit or service provided with 
                        funds made available under a grant made under 
                        this paragraph shall not be considered 
                        assistance for any purpose under a State or 
                        tribal program funded under this part.
                    ``(J) Assessments by the secretaries.--
                            ``(i) Reservation of funds.--Of the amount 
                        appropriated under subparagraph (L) for each of 
                        fiscal years 2004 and 2005, $3,000,000 of such 
                        amount for each such fiscal year is reserved 
                        for use by the Secretaries to prepare an 
                        interim and final report summarizing and 
                        synthesizing outcomes and lessons learned from 
                        the programs funded through grants awarded 
                        under this paragraph.
                            ``(ii) Interim and final assessments.--With 
                        respect to the reports prepared under clause 
                        (i), the Secretaries shall submit--
                                    ``(I) the interim report not later 
                                than 4 years after the date of 
                                enactment of the Business Links Act of 
                                2003; and
                                    ``(II) the final report not later 
                                than 6 years after such date of 
                                enactment.
                    ``(K) Evaluations.--
                            ``(i) Reservation of funds.--Of the amount 
                        appropriated under subparagraph (L) for a 
                        fiscal year, an amount equal to 1.5 percent of 
                        such amount for each such fiscal year shall be 
                        reserved for use by the Secretaries to conduct 
                        evaluations in accordance with the requirements 
                        of clause (ii).
                            ``(ii) Requirements.--The Secretaries--
                                    ``(I) shall develop a plan to 
                                evaluate the extent to which programs 
                                funded under grants made under this 
                                paragraph have been effective in 
                                promoting sustained, unsubsidized 
                                employment for each group of eligible 
                                participants, and in improving the 
                                skills and wages of participants in 
                                comparison to the participants' skills 
                                and wages prior to participation in the 
                                programs;
                                    ``(II) may evaluate the use of such 
                                a grant by a grantee, as the 
                                Secretaries deem appropriate, in 
                                accordance with an agreement entered 
                                into with the grantee after good-faith 
                                negotiations; and
                                    ``(III) shall include, as 
                                appropriate, the following outcome 
                                measures in the evaluation plan 
                                developed under subclause (I):
                                            ``(aa) Placements in 
                                        unsubsidized employment.
                                            ``(bb) Retention in 
                                        unsubsidized employment 6 
                                        months and 12 months after 
                                        initial placement.
                                            ``(cc) Earnings of 
                                        individuals at the time of 
                                        placement in unsubsidized 
                                        employment.
                                            ``(dd) Earnings of 
                                        individuals 12 months after 
                                        placement in unsubsidized 
                                        employment.
                                            ``(ee) The extent to which 
                                        unsubsidized job placements 
                                        include access to affordable 
                                        employer-sponsored health 
                                        insurance and paid leave 
                                        benefits.
                                            ``(ff) Comparison of pre- 
                                        and post-program wage rates of 
                                        participants.
                                            ``(gg) Comparison of pre- 
                                        and post-program skill levels 
                                        of participants.
                                            ``(hh) Wage growth and 
                                        employment retention in 
                                        relation to occupations and 
                                        industries at initial placement 
                                        in unsubsidized employment and 
                                        over the first 12 months after 
                                        initial placement.
                                            ``(ii) Recipient of cash 
                                        assistance under the State 
                                        program funded under this part.
                                            ``(jj) Average expenditures 
                                        per participant.
                            ``(iii) Reports to congress.--The 
                        Secretaries shall submit to Congress the 
                        following reports on the evaluations of 
                        programs funded under grants made under this 
                        paragraph:
                                    ``(I) Interim report.--An interim 
                                report not later than 4 years after the 
                                date of enactment of the Business Links 
                                Act of 2003.
                                    ``(II) Final report.--A final 
                                report not later than 6 years after 
                                such date of enactment.
                    ``(L) Appropriation.--
                            ``(i) In general.--Out of any money in the 
                        Treasury of the United States not otherwise 
                        appropriated, there is appropriated for grants 
                        under this section, $200,000,000 for each of 
                        fiscal years 2004 through 2008.
                            ``(ii) Availability.--Amounts appropriated 
                        under clause (i) for a fiscal year shall remain 
                        available for obligation for 5 fiscal years 
                        after the fiscal year in which the amount is 
                        appropriated.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.
                                 <all>