[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3534 Enrolled Bill (ENR)]


        S.3534

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six


                                 An Act


 
     To amend the Workforce Investment Act of 1998 to provide for a 
                           YouthBuild program.

    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 ``YouthBuild Transfer Act''.

SEC. 2. YOUTHBUILD PROGRAM.

    (a) Establishment of YouthBuild Program in the Department of 
Labor.--Subtitle D of title I of the Workforce Investment Act of 1998 
is amended by inserting before section 174 (29 U.S.C. 2919) the 
following new section:

``SEC. 173A. YOUTHBUILD PROGRAM.

    ``(a) Statement of Purpose.--The purposes of this section are--
        ``(1) to enable disadvantaged youth to obtain the education and 
    employment skills necessary to achieve economic self-sufficiency in 
    occupations in demand and postsecondary education and training 
    opportunities;
        ``(2) to provide disadvantaged youth with opportunities for 
    meaningful work and service to their communities;
        ``(3) to foster the development of employment and leadership 
    skills and commitment to community development among youth in low-
    income communities; and
        ``(4) to expand the supply of permanent affordable housing for 
    homeless individuals and low-income families by utilizing the 
    energies and talents of disadvantaged youth.
    ``(b) Definitions.--In this section:
        ``(1) Adjusted income.--The term `adjusted income' has the 
    meaning given the term in section 3(b) of the United States Housing 
    Act of 1937 (42 U.S.C. 1437a(b)).
        ``(2) Applicant.--The term `applicant' means an eligible entity 
    that has submitted an application under subsection (c).
        ``(3) Eligible entity.--The term `eligible entity' means a 
    public or private nonprofit agency or organization (including a 
    consortium of such agencies or organizations), including--
            ``(A) a community-based organization;
            ``(B) a faith-based organization;
            ``(C) an entity carrying out activities under this title, 
        such as a local board;
            ``(D) a community action agency;
            ``(E) a State or local housing development agency;
            ``(F) an Indian tribe or other agency primarily serving 
        Indians;
            ``(G) a community development corporation;
            ``(H) a State or local youth service or conservation corps; 
        and
            ``(I) any other entity eligible to provide education or 
        employment training under a Federal program (other than the 
        program carried out under this section).
        ``(4) Homeless individual.--The term `homeless individual' has 
    the meaning given the term in section 103 of the McKinney-Vento 
    Homeless Assistance Act (42 U.S.C. 11302).
        ``(5) Housing development agency.--The term `housing 
    development agency' means any agency of a State or local 
    government, or any private nonprofit organization, that is engaged 
    in providing housing for homeless individuals or low-income 
    families.
        ``(6) Income.--The term `income' has the meaning given the term 
    in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 
    1437a(b)).
        ``(7) Indian; indian tribe.--The terms `Indian' and `Indian 
    tribe' have the meanings given such terms in section 4 of the 
    Indian Self-Determination and Education Assistance Act (25 U.S.C. 
    450b).
        ``(8) Individual of limited english proficiency.--The term 
    `individual of limited English proficiency' means an eligible 
    participant under this section who meets the criteria set forth in 
    section 203(10) of the Adult Education and Family Literacy Act (20 
    U.S.C. 9202(10)).
        ``(9) Low-income family.--The term `low-income family' means a 
    family described in section 3(b)(2) of the United States Housing 
    Act of 1937 (42 U.S.C. 1437a(b)(2)).
        ``(10) Qualified national nonprofit agency.--The term 
    `qualified national nonprofit agency' means a nonprofit agency 
    that--
            ``(A) has significant national experience providing 
        services consisting of training, information, technical 
        assistance, and data management to YouthBuild programs or 
        similar projects; and
            ``(B) has the capacity to provide those services.
        ``(11) Registered apprenticeship program.--The term `registered 
    apprenticeship program' means an apprenticeship program--
            ``(A) registered under the Act of August 16, 1937 (commonly 
        known as the `National Apprenticeship Act'; 50 Stat. 664, 
        chapter 663; 20 U.S.C. 50 et seq.); and
            ``(B) that meets such other criteria as may be established 
        by the Secretary under this section.
        ``(12) Transitional housing.--The term `transitional housing' 
    means housing provided for the purpose of facilitating the movement 
    of homeless individuals to independent living within a reasonable 
    amount of time. The term includes housing primarily designed to 
    serve deinstitutionalized homeless individuals and other homeless 
    individuals who are individuals with disabilities or members of 
    families with children.
        ``(13) Youthbuild program.--The term `YouthBuild program' means 
    any program that receives assistance under this section and 
    provides disadvantaged youth with opportunities for employment, 
    education, leadership development, and training through the 
    rehabilitation or construction of housing for homeless individuals 
    and low-income families, and of public facilities.
    ``(c) YouthBuild Grants.--
        ``(1) Amounts of grants.--The Secretary is authorized to make 
    grants to applicants for the purpose of carrying out YouthBuild 
    programs approved under this section.
        ``(2) Eligible activities.--An entity that receives a grant 
    under this subsection shall use the funds made available through 
    the grant to carry out a YouthBuild program, which may include the 
    following activities:
            ``(A) Education and workforce investment activities 
        including--
                ``(i) work experience and skills training (coordinated, 
            to the maximum extent feasible, with preapprenticeship and 
            registered apprenticeship programs) in the rehabilitation 
            and construction activities described in subparagraphs (B) 
            and (C);
                ``(ii) occupational skills training;
                ``(iii) other paid and unpaid work experiences, 
            including internships and job shadowing;
                ``(iv) services and activities designed to meet the 
            educational needs of participants, including--

                    ``(I) basic skills instruction and remedial 
                education;
                    ``(II) language instruction educational programs 
                for individuals with limited English proficiency;
                    ``(III) secondary education services and 
                activities, including tutoring, study skills training, 
                and dropout prevention activities, designed to lead to 
                the attainment of a secondary school diploma, General 
                Education Development (GED) credential, or other State-
                recognized equivalent (including recognized alternative 
                standards for individuals with disabilities);
                    ``(IV) counseling and assistance in obtaining 
                postsecondary education and required financial aid; and
                    ``(V) alternative secondary school services;

                ``(v) counseling services and related activities, such 
            as comprehensive guidance and counseling on drug and 
            alcohol abuse and referral;
                ``(vi) activities designed to develop employment and 
            leadership skills, which may include community service and 
            peer-centered activities encouraging responsibility and 
            other positive social behaviors, and activities related to 
            youth policy committees that participate in decision-making 
            related to the program;
                ``(vii) supportive services and provision of need-based 
            stipends necessary to enable individuals to participate in 
            the program and supportive services to assist individuals, 
            for a period not to exceed 12 months after the completion 
            of training, in obtaining or retaining employment, or 
            applying for and transitioning to postsecondary education; 
            and
                ``(viii) job search and assistance.
            ``(B) Supervision and training for participants in the 
        rehabilitation or construction of housing, including 
        residential housing for homeless individuals or low-income 
        families, or transitional housing for homeless individuals.
            ``(C) Supervision and training for participants in the 
        rehabilitation or construction of community and other public 
        facilities, except that not more than 10 percent of funds 
        appropriated to carry out this section may be used for such 
        supervision and training.
            ``(D) Payment of administrative costs of the applicant, 
        except that not more than 15 percent of the amount of 
        assistance provided under this subsection to the grant 
        recipient may be used for such costs.
            ``(E) Adult mentoring.
            ``(F) Provision of wages, stipends, or benefits to 
        participants in the program.
            ``(G) Ongoing training and technical assistance that are 
        related to developing and carrying out the program.
            ``(H) Follow-up services.
        ``(3) Application.--
            ``(A) Form and procedure.--To be qualified to receive a 
        grant under this subsection, an eligible entity shall submit an 
        application at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(B) Minimum requirements.--The Secretary shall require 
        that the application contain, at a minimum--
                ``(i) labor market information for the labor market 
            area where the proposed program will be implemented, 
            including both current data (as of the date of submission 
            of the application) and projections on career opportunities 
            in growing industries;
                ``(ii) a request for the grant, specifying the amount 
            of the grant requested and its proposed uses;
                ``(iii) a description of the applicant and a statement 
            of its qualifications, including a description of the 
            applicant's relationship with local boards, one-stop 
            operators, local unions, entities carrying out registered 
            apprenticeship programs, other community groups, and 
            employers, and the applicant's past experience, if any, 
            with rehabilitation or construction of housing or public 
            facilities, and with youth education and employment 
            training programs;
                ``(iv) a description of the proposed site for the 
            proposed program;
                ``(v) a description of the educational and job training 
            activities, work opportunities, postsecondary education and 
            training opportunities, and other services that will be 
            provided to participants, and how those activities, 
            opportunities, and services will prepare youth for 
            employment in occupations in demand in the labor market 
            area described in clause (i);
                ``(vi) a description of the proposed rehabilitation or 
            construction activities to be undertaken under the grant 
            and the anticipated schedule for carrying out such 
            activities;
                ``(vii) a description of the manner in which eligible 
            youth will be recruited and selected as participants, 
            including a description of arrangements that will be made 
            with local boards, one-stop operators, community- and 
            faith-based organizations, State educational agencies or 
            local educational agencies (including agencies of Indian 
            tribes), public assistance agencies, the courts of 
            jurisdiction, agencies operating shelters for homeless 
            individuals and other agencies that serve youth who are 
            homeless individuals, foster care agencies, and other 
            appropriate public and private agencies;
                ``(viii) a description of the special outreach efforts 
            that will be undertaken to recruit eligible young women 
            (including young women with dependent children) as 
            participants;
                ``(ix) a description of the specific role of employers 
            in the proposed program, such as their role in developing 
            the proposed program and assisting in service provision and 
            in placement activities;
                ``(x) a description of how the proposed program will be 
            coordinated with other Federal, State, and local activities 
            and activities conducted by Indian tribes, such as local 
            workforce investment activities, vocational education 
            programs, adult and language instruction educational 
            programs, activities conducted by public schools, 
            activities, conducted by community colleges, national 
            service programs, and other job training provided with 
            funds available under this title;
                ``(xi) assurances that there will be a sufficient 
            number of adequately trained supervisory personnel in the 
            proposed program;
                ``(xii) a description of results to be achieved with 
            respect to common indicators of performance for youth and 
            lifelong learning, as identified by the Secretary;
                ``(xiii) a description of the applicant's relationship 
            with local building trade unions regarding their 
            involvement in training to be provided through the proposed 
            program, the relationship of the proposed program to 
            established registered apprenticeship programs and 
            employers, and the ability of the applicant to grant 
            industry-recognized skill certification through the 
            program;
                ``(xiv) a description of activities that will be 
            undertaken to develop the leadership skills of 
            participants;
                ``(xv) a detailed budget and a description of the 
            system of fiscal controls, and auditing and accountability 
            procedures, that will be used to ensure fiscal soundness 
            for the proposed program;
                ``(xvi) a description of the commitments for any 
            additional resources (in addition to the funds made 
            available through the grant) to be made available to the 
            proposed program from--

                    ``(I) the applicant;
                    ``(II) recipients of other Federal, State or local 
                housing and community development assistance who will 
                sponsor any part of the rehabilitation, construction, 
                operation and maintenance, or other housing and 
                community development activities undertaken as part of 
                the proposed program; or
                    ``(III) entities carrying out other Federal, State, 
                or local activities or activities conducted by Indian 
                tribes, including vocational education programs, adult 
                and language instruction educational programs, and job 
                training provided with funds available under this 
                title;

                ``(xvii) information identifying, and a description of, 
            the financing proposed for any--

                    ``(I) rehabilitation of the property involved;
                    ``(II) acquisition of the property; or
                    ``(III) construction of the property;

                ``(xviii) information identifying, and a description 
            of, the entity that will operate and manage the property;
                ``(xix) information identifying, and a description of, 
            the data collection systems to be used;
                ``(xx) a certification, by a public official 
            responsible for the housing strategy for the State or unit 
            of general local government within which the proposed 
            program is located, that the proposed program is consistent 
            with the housing strategy; and
                ``(xxi) a certification that the applicant will comply 
            with the requirements of the Fair Housing Act (42 U.S.C. 
            3601 et seq.) and will affirmatively further fair housing.
        ``(4) Selection criteria.--For an applicant to be eligible to 
    receive a grant under this subsection, the applicant and the 
    applicant's proposed program shall meet such selection criteria as 
    the Secretary shall establish under this section, which shall 
    include criteria relating to--
            ``(A) the qualifications or potential capabilities of an 
        applicant;
            ``(B) an applicant's potential for developing a successful 
        YouthBuild program;
            ``(C) the need for an applicant's proposed program, as 
        determined by the degree of economic distress of the community 
        from which participants would be recruited (measured by 
        indicators such as poverty, youth unemployment, and the number 
        of individuals who have dropped out of secondary school) and of 
        the community in which the housing and public facilities 
        proposed to be rehabilitated or constructed is located 
        (measured by indicators such as incidence of homelessness, 
        shortage of affordable housing, and poverty);
            ``(D) the commitment of an applicant to providing skills 
        training, leadership development, and education to 
        participants;
            ``(E) the focus of a proposed program on preparing youth 
        for occupations in demand or postsecondary education and 
        training opportunities;
            ``(F) the extent of an applicant's coordination of 
        activities to be carried out through the proposed program with 
        local boards, one-stop operators, and one-stop partners 
        participating in the operation of the one-stop delivery system 
        involved, or the extent of the applicant's good faith efforts 
        in achieving such coordination;
            ``(G) the extent of the applicant's coordination of 
        activities with public education, criminal justice, housing and 
        community development, national service, or postsecondary 
        education or other systems that relate to the goals of the 
        proposed program;
            ``(H) the extent of an applicant's coordination of 
        activities with employers in the local area involved;
            ``(I) the extent to which a proposed program provides for 
        inclusion of tenants who were previously homeless individuals 
        in the rental housing provided through the program;
            ``(J) the commitment of additional resources (in addition 
        to the funds made available through the grant) to a proposed 
        program by--
                ``(i) an applicant;
                ``(ii) recipients of other Federal, State, or local 
            housing and community development assistance who will 
            sponsor any part of the rehabilitation, construction, 
            operation and maintenance, or other housing and community 
            development activities undertaken as part of the proposed 
            program; or
                ``(iii) entities carrying out other Federal, State, or 
            local activities or activities conducted by Indian tribes, 
            including vocational education programs, adult and language 
            instruction educational programs, and job training provided 
            with funds available under this title;
            ``(K) the applicant's potential to serve different regions, 
        including rural areas and States that have not previously 
        received grants for YouthBuild programs; and
            ``(L) such other factors as the Secretary determines to be 
        appropriate for purposes of carrying out the proposed program 
        in an effective and efficient manner.
        ``(5) Approval.--To the extent practicable, the Secretary shall 
    notify each applicant, not later than 5 months after the date of 
    receipt of the application by the Secretary, whether the 
    application is approved or not approved.
    ``(d) Use of Housing Units.--Residential housing units 
rehabilitated or constructed using funds made available under 
subsection (c) shall be available solely--
        ``(1) for rental by, or sale to, homeless individuals or low-
    income families; or
        ``(2) for use as transitional or permanent housing, for the 
    purpose of assisting in the movement of homeless individuals to 
    independent living.
    ``(e) Additional Program Requirements.--
        ``(1) Eligible participants.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        an individual may participate in a YouthBuild program only if 
        such individual is--
                ``(i) not less than age 16 and not more than age 24, on 
            the date of enrollment;
                ``(ii) a member of a low-income family, a youth in 
            foster care (including youth aging out of foster care), a 
            youth offender, a youth who is an individual with a 
            disability, a child of incarcerated parents, or a migrant 
            youth; and
                ``(iii) a school dropout.
            ``(B) Exception for individuals not meeting income or 
        educational need requirements.--Not more than 25 percent of the 
        participants in such program may be individuals who do not meet 
        the requirements of clause (ii) or (iii) of subparagraph (A), 
        but who--
                ``(i) are basic skills deficient, despite attainment of 
            a secondary school diploma, General Education Development 
            (GED) credential, or other State-recognized equivalent 
            (including recognized alternative standards for individuals 
            with disabilities); or
                ``(ii) have been referred by a local secondary school 
            for participation in a YouthBuild program leading to the 
            attainment of a secondary school diploma.
        ``(2) Participation limitation.--An eligible individual 
    selected for participation in a YouthBuild program shall be offered 
    full-time participation in the program for a period of not less 
    than 6 months and not more than 24 months.
        ``(3) Minimum time devoted to educational services and 
    activities.--A YouthBuild program receiving assistance under 
    subsection (c) shall be structured so that participants in the 
    program are offered--
            ``(A) education and related services and activities 
        designed to meet educational needs, such as those specified in 
        clauses (iv) through (vii) of subsection (c)(2)(A), during at 
        least 50 percent of the time during which the participants 
        participate in the program; and
            ``(B) work and skill development activities such as those 
        specified in clauses (i), (ii), (iii), and (viii) of subsection 
        (c)(2)(A), during at least 40 percent of the time during which 
        the participants participate in the program.
        ``(4) Authority restriction.--No provision of this section may 
    be construed to authorize any agency, officer, or employee of the 
    United States to exercise any direction, supervision, or control 
    over the curriculum, program of instruction, administration, or 
    personnel of any educational institution (including a school) or 
    school system, or over the selection of library resources, 
    textbooks, or other printed or published instructional materials by 
    any educational institution or school system.
        ``(5) State and local standards.--All educational programs and 
    activities supported with funds provided under subsection (c) shall 
    be consistent with applicable State and local educational 
    standards. Standards and procedures for the programs and activities 
    that relate to awarding academic credit for and certifying 
    educational attainment in such programs and activities shall be 
    consistent with applicable State and local educational standards.
    ``(f) Management and Technical Assistance.--
        ``(1) Secretary assistance.--The Secretary may enter into 
    contracts with 1 or more entities to provide assistance to the 
    Secretary in the management, supervision, and coordination of the 
    program carried out under this section.
        ``(2) Technical assistance.--
            ``(A) Contracts and grants.--The Secretary shall enter into 
        contracts with or make grants to 1 or more qualified national 
        nonprofit agencies, in order to provide training, information, 
        technical assistance, and data management to recipients of 
        grants under subsection (c).
            ``(B) Reservation of funds.--Of the amounts available under 
        subsection (h) to carry out this section for a fiscal year, the 
        Secretary shall reserve 5 percent to carry out subparagraph 
        (A).
        ``(3) Capacity building grants.--
            ``(A) In general.--In each fiscal year, the Secretary may 
        use not more than 3 percent of the amounts available under 
        subsection (h) to award grants to 1 or more qualified national 
        nonprofit agencies to pay for the Federal share of the cost of 
        capacity building activities.
            ``(B) Federal share.--The Federal share of the cost 
        described in subparagraph (A) shall be 25 percent. The non-
        Federal share shall be provided from private sources.
    ``(g) Subgrants and Contracts.--Each recipient of a grant under 
subsection (c) to carry out a YouthBuild program shall provide the 
services and activities described in this section directly or through 
subgrants, contracts, or other arrangements with local educational 
agencies, postsecondary educational institutions, State or local 
housing development agencies, other public agencies, including agencies 
of Indian tribes, or private organizations.
    ``(h) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated for 
    each of fiscal years 2007 through 2012 such sums as may be 
    necessary to carry out this section.
        ``(2) Fiscal year.--Notwithstanding section 189(g), 
    appropriations for any fiscal year for programs and activities 
    carried out under this section shall be available for obligation 
    only on the basis of a fiscal year.''.
    (b) Clerical Amendment.--Section 1(b) of the Workforce Investment 
Act of 1998 (relating to the table of contents) is amended by inserting 
before the item relating to section 174 the following:

``Sec. 173A. YouthBuild program''.

    (c) Exception to Program Year Appropriation Cycle Requirement.--
Section 189(g)(1)(A) of the Workforce Investment Act of 1998 (29 U.S.C. 
2939(g)(1)(A)) is amended by inserting ``and section 173A'' after 
``Except as provided in subparagraph (B)''.
    (d) Conforming Amendments.--
        (1) Section 3 of the Housing and Urban Development Act of 1968 
    (12 U.S.C. 1701u) is amended in paragraphs (1)(B)(iii) and (2)(B) 
    of subsection (c), and paragraphs (1)(B)(iii) and (2)(B) of 
    subsection (d), by striking ``Youthbuild'' and all that follows and 
    inserting ``YouthBuild programs receiving assistance under section 
    173A of the Workforce Investment Act of 1998.''.
        (2) Section 507(b) of the Native American Housing Assistance 
    and Self-Determination Act of 1996 (25 U.S.C. 4183(b)) is amended 
    by striking ``subtitle D of title IV of the Cranston-Gonzalez 
    National Affordable Housing Act,''.
        (3) Section 402 of the Cranston-Gonzalez National Affordable 
    Housing Act (42 U.S.C. 12870) is amended by striking the second 
    sentence of subsections (a) and (b).
    (e) Repeal of Provisions.--Subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et seq.) is 
repealed.
    (f) Effective Date.--This section and the amendments made by this 
section take effect on the earlier of--
        (1) the date of enactment of this Act; and
        (2) September 30, 2006.

SEC. 3. TRANSFER OF FUNCTIONS AND SAVINGS PROVISIONS.

    (a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
        (1) the term ``Federal agency'' has the meaning given to the 
    term ``agency'' by section 551(1) of title 5, United States Code;
        (2) the term ``function'' means any duty, obligation, power, 
    authority, responsibility, right, privilege, activity, or program; 
    and
        (3) the term ``office'' includes any office, administration, 
    agency, institute, unit, organizational entity, or component 
    thereof.
    (b) Transfer of Functions.--There are transferred to the Department 
of Labor all functions which the Secretary of Housing and Urban 
Development exercised before the effective date of this section 
(including all related functions of any officer or employee of the 
Department of Housing and Urban Development) relating to subtitle D of 
title IV of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12899 et seq.).
    (c) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination of the functions that are transferred under 
subsection (b).
    (d) Personnel Provisions.--
        (1) Appointments.--The Secretary of Labor may appoint and fix 
    the compensation of such officers and employees, including 
    investigators, attorneys, and administrative law judges, as may be 
    necessary to carry out the respective functions transferred under 
    this section. Except as otherwise provided by law, such officers 
    and employees shall be appointed in accordance with the civil 
    service laws and their compensation fixed in accordance with title 
    5, United States Code.
        (2) Experts and consultants.--The Secretary of Labor may obtain 
    the services of experts and consultants in accordance with section 
    3109 of title 5, United States Code, and compensate such experts 
    and consultants for each day (including traveltime) at rates not in 
    excess of the rate of pay for level IV of the Executive Schedule 
    under section 5315 of such title. The Secretary of Labor may pay 
    experts and consultants who are serving away from their homes or 
    regular place of business travel expenses and per diem in lieu of 
    subsistence at rates authorized by sections 5702 and 5703 of such 
    title for persons in Government service employed intermittently.
    (e) Delegation and Assignment.--Except where otherwise expressly 
prohibited by law or otherwise provided by this section, the Secretary 
of Labor may delegate any of the functions transferred to the Secretary 
of Labor by this section and any function transferred or granted to the 
Secretary of Labor after the effective date of this section to such 
officers and employees of the Department of Labor as the Secretary of 
Labor may designate, and may authorize successive redelegations of such 
functions as may be necessary or appropriate. No delegation of 
functions by the Secretary of Labor under this subsection or under any 
other provision of this section shall relieve the Secretary of Labor of 
responsibility for the administration of such functions.
    (f) Reorganization.--The Secretary of Labor is authorized to 
allocate or reallocate any function transferred under subsection (b) 
among the officers of the Department of Labor, and to establish, 
consolidate, alter, or discontinue such organizational entities in the 
Department of Labor as may be necessary or appropriate.
    (g) Rules.--The Secretary of Labor is authorized to prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 5, United 
States Code, such rules and regulations as the Secretary of Labor 
determines necessary or appropriate to administer and manage the 
functions of the Department of Labor.
    (h) Transfer and Allocations of Appropriations.--Except as 
otherwise provided in this section, the assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds used, 
held, arising from, available to, or to be made available in connection 
with the functions transferred by this section, subject to section 1531 
of title 31, United States Code, shall be transferred to the Department 
of Labor. Unexpended funds transferred pursuant to this subsection 
shall be used only for the purposes for which the funds were originally 
authorized and appropriated.
    (i) Transfers.--The Director of the Office of Management and 
Budget, at such time or times as the Director shall provide, is 
authorized to make such determinations as may be necessary with regard 
to the functions transferred by this section, and to make such 
dispositions of assets, liabilities, grants, contracts, property, 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds used, held, arising from, available to, or 
to be made available in connection with such functions, subject to 
section 1531 of title 31, United States Code, as may be necessary to 
carry out the provisions of this section. The Director of the Office of 
Management and Budget shall provide for the termination of the affairs 
of all entities terminated by this section and for such further 
measures and dispositions as may be necessary to effectuate the 
purposes of this section.
    (j) Savings Provisions.--
        (1) Continuing effect of legal documents.--All orders, 
    determinations, rules, regulations, permits, agreements, grants, 
    contracts, certificates, licenses, registrations, privileges, and 
    other administrative actions--
            (A) which have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        the performance of functions which are transferred under this 
        section; and
            (B) which are in effect at the time this section takes 
        effect, or were final before the effective date of this section 
        and are to become effective on or after the effective date of 
        this section,
    shall continue in effect according to their terms until modified, 
    terminated, superseded, set aside, or revoked in accordance with 
    law by the President, the Secretary of Labor or other authorized 
    official, a court of competent jurisdiction, or by operation of 
    law.
        (2) Proceedings not affected.--The provisions of this section 
    shall not affect any proceedings, including notices of proposed 
    rulemaking, or any application for any license, permit, 
    certificate, or financial assistance pending before the Department 
    of Housing and Urban Development at the time this section takes 
    effect, with respect to functions transferred by this section but 
    such proceedings and applications shall be continued. Orders shall 
    be issued in such proceedings, appeals shall be taken therefrom, 
    and payments shall be made pursuant to such orders, as if this 
    section had not been enacted, and orders issued in any such 
    proceedings shall continue in effect until modified, terminated, 
    superseded, or revoked by a duly authorized official, by a court of 
    competent jurisdiction, or by operation of law. Nothing in this 
    paragraph shall be deemed to prohibit the discontinuance or 
    modification of any such proceeding under the same terms and 
    conditions and to the same extent that such proceeding could have 
    been discontinued or modified if this section had not been enacted.
        (3) Suits not affected.--The provisions of this section shall 
    not affect suits commenced before the effective date of this 
    section, and in all such suits, proceedings shall be had, appeals 
    taken, and judgments rendered in the same manner and with the same 
    effect as if this section had not been enacted.
        (4) Nonabatement of actions.--No suit, action, or other 
    proceeding commenced by or against the Department of Housing and 
    Urban Development, or by or against any individual in the official 
    capacity of such individual as an officer of the Department of 
    Housing and Urban Development, shall abate by reason of the 
    enactment of this section.
        (5) Administrative actions relating to promulgation of 
    regulations.--Any administrative action relating to the preparation 
    or promulgation of a regulation by the Department of Housing and 
    Urban Development relating to a function transferred under this 
    section may be continued by the Department of Labor with the same 
    effect as if this section had not been enacted.
    (k) Separability.--If a provision of this section or its 
application to any person or circumstance is held invalid, neither the 
remainder of this section nor the application of the provision to other 
persons or circumstances shall be affected.
    (l) Transition.--The Secretary of Labor is authorized to utilize--
        (1) the services of such officers, employees, and other 
    personnel of the Department of Housing and Urban Development with 
    respect to functions transferred to the Department of Labor by this 
    section; and
        (2) funds appropriated to such functions for such period of 
    time,
as may reasonably be needed to facilitate the orderly implementation of 
this section.
    (m) Accomplishing Orderly Transfer.--Consistent with the 
requirements of this section, the Secretary of Labor and the Secretary 
of Housing and Urban Development shall take such actions as the 
Secretaries determine are appropriate to accomplish the orderly 
transfer of functions as described in subsection (b).
    (n) Administration of Prior Grants.--Notwithstanding any other 
provision of this Act, grants awarded under subtitle D of title IV of 
the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899 
et seq.) with funds appropriated for fiscal year 2006 or a preceding 
fiscal year shall be subject to the continuing authority of the 
Secretary of Housing and Urban Development under the provisions of such 
subtitle, as in effect on the day before the date of enactment of this 
Act, until the authority to expend applicable funds for the grants, as 
specified by the Secretary of Housing and Urban Development, has 
expired and the Secretary has completed the administrative 
responsibilities associated with the grants.
    (o) References.--A reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to--
        (1) the Secretary of Housing and Urban Development with regard 
    to functions transferred under subsection (b), shall be deemed to 
    refer to the Secretary of Labor; and
        (2) the Department of Housing and Urban Development with regard 
    to functions transferred under subsection (b), shall be deemed to 
    refer to the Department of Labor.
    (p) Effective Date.--This section takes effect on the earlier of--
        (1) the date of enactment of this Act; and
        (2) September 30, 2006.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.