[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3601 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3601

To amend the Workforce Innovation and Opportunity Act to provide for a 
   program that employs pay-for-performance financing for workforce 
                         development projects.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 11, 2018

 Mr. Booker (for himself and Mr. Young) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend the Workforce Innovation and Opportunity Act to provide for a 
   program that employs pay-for-performance financing for workforce 
                         development projects.

    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 ``Delivering Outcomes for American 
Workers Act''.

SEC. 2. PAY-FOR-PERFORMANCE WORKFORCE DEVELOPMENT PROGRAM.

    Subtitle D of title I of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3221 et seq.) is amended--
            (1) by redesignating section 172 as section 173; and
            (2) by inserting after section 171 the following:

``SEC. 172. PAY-FOR-PERFORMANCE WORKFORCE DEVELOPMENT PROGRAM.

    ``(a) General Authority.--The Secretary shall establish and carry 
out a Pay-for-Performance workforce development program. In carrying 
out the program, the Secretary may enter into agreements with eligible 
entities to provide for workforce development projects that are 
designed to accomplish outcomes that, in turn, enable the eligible 
entities to achieve specified long-term employment-related goals.
    ``(b) Long-Term Employment-Related Goals.--Not less often than 
annually, the Secretary shall issue guidance that specifies long-term 
employment-related goals, such as sustained long-term employment or 
increased earnings over time, for projects carried out under this 
section. The guidance shall specify long-term employment-related goals 
that an eligible entity shall address in an application for a project 
to be carried out in the upcoming fiscal year.
    ``(c) Eligible Entities.--To be eligible to enter into an agreement 
under this section, an entity shall be a State, a political subdivision 
of a State, a State board, a local board, an Indian tribe or tribal 
organization (as such terms are defined in section 166(b)), or a 
partnership of entities described in this subsection.
    ``(d) Applications.--To be eligible to enter into an agreement 
under this section, an entity shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
            ``(1) a description of a potential workforce development 
        approach that the entity proposes to carry out by entering into 
        a contract with one or more service providers for a workforce 
        development project, in accordance with an outcomes rate card 
        described in subsection (e)(1) and approved as part of the 
        application;
            ``(2) a description of the geographic area and target 
        population that the entity intends to serve through the 
        project, along with a data-driven rationale for the size and 
        expected impact of the project;
            ``(3) a description of expected participant- and community-
        level social benefits as a result of the project;
            ``(4) the outcomes rate card described in subsection (e)(1) 
        and an assurance that the entity will incorporate the terms 
        specified on the card into the contracts with service 
        providers;
            ``(5) evidence, including the results of prior rigorous 
        experimental or quasi-experimental studies, demonstrating that 
        the outcomes specified on the outcomes rate card predict 
        whether the long-term employment-related goals will be 
        achieved;
            ``(6) an assurance that the entity will contribute the non-
        program share described in subsection (g) of the cost of each 
        project involved;
            ``(7) an assurance that the entity will hold an open and 
        fair procurement process to select service providers to provide 
        services under the project;
            ``(8) a commitment that the entity will ensure that service 
        delivery is not skewed toward the participants most likely to 
        achieve the desired outcomes;
            ``(9) an assurance that necessary administrative data 
        systems and information technology infrastructure are available 
        or will be available to connect the data and information from a 
        service provider with outcomes validation and performance 
        management and payment processes; and
            ``(10) a plan for evaluation of the project as described in 
        subsection (j)(1).
    ``(e) Outcomes.--
            ``(1) Card prepared by eligible entity.--To be eligible to 
        enter into an agreement under this section, an entity shall 
        prepare an outcomes rate card that specifies each of the 
        following and any additional information requested by the 
        Secretary:
                    ``(A) The long-term employment-related goals the 
                eligible entity hopes to achieve.
                    ``(B) The specific outcomes that the eligible 
                entity hopes to achieve, which will be used to assess 
                whether long-term employment-related goals are 
                achieved.
                    ``(C) The price for each such outcome, that the 
                eligible entity proposes that the Secretary will pay to 
                reimburse an eligible entity for each participant that 
                achieves the outcome, consistent with paragraph (2)(B).
                    ``(D) Other terms that the eligible entity proposes 
                to incorporate into each contract with a service 
                provider.
            ``(2) Guidance prepared by secretary.--Not less often than 
        annually, the Secretary shall issue guidance, on which eligible 
        entities may base outcomes rate cards prepared under paragraph 
        (1). The guidance shall include information describing sample 
        outcomes and factors for entities to consider when proposing 
        their prices, including the type of population being served. 
        The guidance shall describe the harder-to-serve populations for 
        which entities may propose higher prices.
    ``(f) Awarding Agreements.--
            ``(1) Timeline in awarding agreement.--Not later than 6 
        months after receiving an application, the Secretary shall 
        determine whether to enter into an agreement for a workforce 
        development project with an eligible entity.
            ``(2) Priority populations.--In selecting eligible entities 
        for agreements, the Secretary shall give priority to entities 
        who propose to serve veterans and individuals with barriers to 
        employment, including homeless individuals and long-term 
        unemployed individuals.
            ``(3) Agreement authority.--
                    ``(A) Agreement requirements.--The Secretary may 
                enter into an agreement for a workforce development 
                project if the Secretary approves the application and 
                determines that each of the following requirements are 
                met:
                            ``(i) Outcome and reimbursement.--The 
                        eligible entity agrees to develop and implement 
                        (through contracts with service providers) a 
                        workforce development project--
                                    ``(I) that is designed to achieve 
                                specified long-term employment-related 
                                goals; and
                                    ``(II) for which the Secretary will 
                                reimburse the eligible entity for a 
                                program share of the cost of the 
                                project, subject to subparagraph (B).
                            ``(ii) Outcome that predicts achievement.--
                        Based on information provided in the 
                        application submitted under subsection (d) or 
                        other relevant information, particularly the 
                        results of prior rigorous experimental or 
                        quasi-experimental studies, the proposed 
                        outcomes predict whether the long-term 
                        employment-related goals will be achieved.
                    ``(B) Maximum reimbursement.--The Secretary may 
                enter into an agreement with a target reimbursement 
                amount (for the total reimbursement expected to be 
                provided under the agreement for the project involved) 
                of not more than $20,000,000, except that the maximum 
                reimbursement to be provided under such an agreement--
                            ``(i) subject to clause (ii), will be 
                        determined in accordance with the outcomes rate 
                        card described in subsection (e)(1) and 
                        included in the agreement; and
                            ``(ii) will not exceed the amount of the 
                        program share of the cost described in 
                        subsection (d)(6).
    ``(g) Program Share.--
            ``(1) In general.--The program share of the cost described 
        in subsection (d)(6) shall be not more than 75 percent.
            ``(2) Non-program share.--An eligible entity shall 
        contribute the non-program share of the cost--
                    ``(A) in cash; and
                    ``(B) from public or private sources, including 
                Federal sources other than the program carried out 
                under this section.
            ``(3) Federal sources.--Funds that are appropriated to 
        carry out this section, or appropriated under Federal law and 
        designated for use under paragraph (2)(B), shall remain 
        available until expended.
    ``(h) Technical Assistance.--The Secretary shall reserve not more 
than $10,000,000 to provide technical assistance to aid entities 
described in subsection (c) in developing outcomes rate cards under 
subsection (e)(1) and refining the data systems described in subsection 
(d)(9).
    ``(i) Data Sharing.--The Secretary shall ensure that the eligible 
entities that enter into agreements under this section have appropriate 
data sharing agreements in place, to enable the eligible entities to 
access administrative data needed to measure the outcomes, and to 
measure the long-term employment-related goals.
    ``(j) Evaluations.--
            ``(1) Projects.--The Secretary shall conduct an evaluation 
        of each workforce development project carried out under this 
        section, using reliable, evidence-based research methodologies 
        (including if possible contemporaneous use of a comparison 
        group) that allow for the strongest possible causal inferences 
        for the project--
                    ``(A) to determine whether the project carried out 
                in accordance with the related outcome rate card 
                yielded the desired long-term employment-related goals;
                    ``(B) to determine if the outcomes were accurate 
                predictors of whether the corresponding long-term 
                employment-related goals were achieved;
                    ``(C) to assess the implementation of the project 
                and its impact on--
                            ``(i) employment, including private sector 
                        employment;
                            ``(ii) wages and benefits in private sector 
                        employment; and
                            ``(iii) poverty; and
                    ``(D) to develop best practices for workforce 
                development projects.
            ``(2) Program.--The Secretary shall conduct an evaluation 
        of the Pay-for-Performance workforce development program 
        carried out under this section--
                    ``(A) using the methodologies described in 
                paragraph (1);
                    ``(B) making the determinations and assessment 
                required in subparagraphs (A) through (C) of paragraph 
                (1) for that program; and
                    ``(C) developing best practices for pay-for-
                performance workforce development programs.
            ``(3) Reservation.--The Secretary shall reserve, for each 
        fiscal year in which a project or program is to be evaluated 
        under this subsection, not less than $5,000,000 to carry out 
        this subsection.
    ``(k) Website.--The Secretary shall establish and maintain a web 
page on which the Secretary shall make publicly available--
            ``(1) a copy of, or method of accessing, each notice 
        published in the Federal Register regarding a project to be 
        funded pursuant to this section; and
            ``(2) for each eligible entity that has entered into an 
        agreement with the Secretary for such a project, information 
        stating--
                    ``(A) the long-term employment-related goals and 
                outcome rate cards for the project;
                    ``(B) a description of each workforce development 
                approach and service provider to be used in the 
                project;
                    ``(C) the target population that will be served by 
                the project;
                    ``(D) the expected social benefits to participants 
                in the project and others who may be impacted;
                    ``(E) the information included in the outcomes rate 
                card and the methodology to be used to determine if the 
                participants achieve the outcomes;
                    ``(F) the project timeline; and
                    ``(G) the maximum reimbursement possible for the 
                project.
    ``(l) Regulations.--The Secretary may issue regulations as 
necessary to carry out this section.''.

SEC. 3. FUNDING.

    Section 173 of the Workforce Innovation and Opportunity Act, as 
redesignated by section 2(1), is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following:
    ``(e) Pay-for-Performance Workforce Development Program.--To carry 
out section 172--
            ``(1) funds available under section 286(s)(2)(A) of the 
        Immigration and Nationality Act (8 U.S.C. 1356(s)(2)(A)) may be 
        used; and
            ``(2) there are authorized to be appropriated such sums as 
        may be necessary for fiscal year 2019, and sums appropriated 
        under this paragraph shall remain available until 5 years after 
        the date of enactment of the Delivering Outcomes for American 
        Workers Act.''.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Immigration and Nationality Act.--Section 286(s)(2) of the 
Immigration and Nationality Act (8 U.S.C. 1356(s)(2)) is amended by 
striking ``(2)'' and all that follows through ``50 percent of amounts'' 
and inserting the following:
            ``(2) Use of fees.--
                    ``(A) Pay-for-performance workforce development 
                program.--From a portion equal to 50 percent of the 
                amounts deposited into the H-1B Nonimmigrant Petitioner 
                Account for a fiscal year, the greater of $100,000,000, 
                or all of the portion, shall remain available to the 
                Secretary of Labor until expended to carry out the 
                section 172 of the Workforce Innovation and Opportunity 
                Act.
                    ``(B) Job training.--The remainder of the 
                portion''.
    (b) Table of Contents.--The table of contents in section 1(b) of 
the Workforce Innovation and Opportunity Act is amended--
            (1) by redesignating the item relating to section 172 as 
        the item relating to section 173; and
            (2) by inserting after the item relating to section 171 the 
        following:

``Sec. 172. Pay-for-Performance workforce development program.''.

SEC. 5. PROSPECTIVE REPEAL OF AUTHORITY.

    (a) Repeal.--Effective 5 years after the date of enactment of this 
Act--
            (1) section 172 of the Workforce Innovation and Opportunity 
        Act, as added by section 2 of this Act, is repealed;
            (2) the Workforce Innovation and Opportunity Act (29 U.S.C. 
        3101 et seq.), as amended by sections 3 and 4 of this Act, is 
        amended--
                    (A) in the table of contents, by striking the item 
                relating to section 172; and
                    (B) in section 173, by striking subsection (e); and
            (3) section 286(s)(2) of the Immigration and Nationality 
        Act (8 U.S.C. 1356(s)(2)), as amended by section 4 of this Act, 
        is amended--
                    (A) by striking subparagraph (A); and
                    (B) in subparagraph (B), by striking ``(B)'' and 
                all that follows through ``of the portion'' and 
                inserting ``50 percent of amounts''.
    (b) Agreements Still in Effect.--Notwithstanding the amendments 
made by subsection (a), an agreement entered into under section 172(a) 
of the Workforce Innovation and Opportunity Act before the effective 
date of the amendments made by subsection (a) shall remain in full 
force and effect under the terms, and for the duration, of the 
agreement.
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