I 112th CONGRESS 2d Session H. R. 6427 IN THE HOUSE OF REPRESENTATIVES September 14, 2012 Mr. Smith of Washington introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend title IV of the Social Security Act to create a competitive self-sustainable social services grant program to provide workforce development opportunities and training to people with barriers to employment under the program of block grants to States for temporary assistance for needy families, and for other purposes.

1.

Short title

This Act may be cited as the Capitalizing Workforce Development Act of 2012.

2.

Job training resources grant program

(a)

In general

Section 403(a) of the Social Security Act (42 U.S.C. 603(a)) is amended by adding at the end the following : (6)

Job training resources grants

(A)

Use of funds

The Secretary shall use the funds made available under subparagraph (F) to award grants to eligible applicants on a competitive basis for the purpose of supporting the purchase, renovation, construction, or lease and improvement of real property to be used by qualified self-sustaining job programs. (B)

Qualified self-sustaining job program

For purposes of this paragraph, the term qualified self-sustaining job program means a program which— (i)provides job training, job placement, or other employment-related services to individuals with employment challenges; and (ii)except for funds made available under this paragraph for the expenses described in subparagraph (A), does not require Federal funds for programmatic or administrative expenses relating to the provision of the services described in clause (i). Nothing in this subparagraph shall prohibit any applicant or grantee under this paragraph from participating in any other Federal program.(C)

Priority

In awarding grants under this paragraph, the Secretary shall give priority to eligible applicants that demonstrate significant successful experience in establishing qualified self-sustaining job programs or, in the case of an eligible applicant described in subparagraph (D)(i), that include among their membership one or more local organizations that have been awarded a grant under section 413(h)(3)(A). (D)

Eligible applicant

For purposes of this paragraph, the term eligible applicant means— (i)a national organization which is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from tax under section 501(a) of such Code, the mission of which is to provide employment-related services to individuals with employment challenges; (ii)a State or political subdivision thereof; or (iii)an Indian tribe or tribal organization. (E)

Grant conditions and requirements

(i)

Job placement performance goals

Each award of a grant under this paragraph shall be conditioned upon the establishment by the Secretary, in coordination with the grantee, of— (I)the job placement performance goals for each qualified self-sustaining job program operated by the grantee that will receive the grant funds (or the subgrantee under clause (iii), if any); and (II)the performance assessment dates (not earlier than 1 year after the date the grant is awarded to the grantee) on which the achievement of such goals will be measured by the Secretary. (ii)

Protection of Federal interest

For all real property purchased, renovated, constructed, or improved using funds made available under this paragraph, the Secretary shall ensure the protection of the Federal Government’s interest in such real property in such manner as may be prescribed by the Secretary. (iii)

Subawards

An eligible applicant described in subparagraph (D)(i) that receives funds made available under this paragraph shall distribute such funds among its local member organizations to carry out the purposes described in subparagraph (A) with respect to qualified self-sustaining job programs. (F)

Appropriation

Out of any money in the Treasury not otherwise appropriated, there are appropriated $200,000,000 for grants under this paragraph for fiscal year 2013, to remain available through fiscal year 2016. . (b)

Recapture penalty

(1)

In general

Section 409(a) of the Social Security Act (42 U.S.C. 609(a)) is amended by adding at the end the following: (17)

Penalty for failure to meet job placement performance goals of qualified self-sustaining job program

(A)

In general

If the Secretary determines that a recipient of funds under section 403(a)(6) has failed to meet the job placement performance goals established under section 403(a)(6)(E)(i) as of any performance assessment date established under section 403(a)(6)(E)(i)(II), the Secretary shall require repayment of such funds to the Treasury in a proportional amount to the degree of such failure. (B)

Timing of repayment

The payments required by subparagraph (A) shall be made over the 10-fiscal-year period beginning with the date the Secretary makes the determination under subparagraph (A). No interest shall accrue with respect to such payments. (C)

Election to comply

With the consent of the Secretary, in lieu of the payments required by subparagraph (A), the recipient of funds may elect to come into compliance with the job placement performance goals established under section 403(a)(6)(E)(i). Such compliance shall be demonstrated in such manner and in such time as the Secretary shall prescribe. (D)

Failure by State

In the case of a State that is subject to a penalty under this paragraph, in lieu of the payments required by subparagraph (A), the Secretary may reduce the grant payable to such State under section 403(a)(1) in the same amount and over the same 10-fiscal-year period that such payments would have been made. (E)

Nonapplicability of State penalty limitations

Subsections (c) and (d) shall not apply in the case of any penalty under this paragraph, except for a penalty with respect to which reductions are made under subparagraph (D). . (2)

Exclusion from State reasonable cause exception

Section 409(b)(2) of the Social Security Act (42 U.S.C. 609(b)(2)) is amended by striking or (13) and inserting (13), or (17).

3.

Offset to ensure PAYGO compliance

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