[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4186 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 4186

  To amend the Workforce Innovation and Opportunity Act to establish 
       employer-directed skills accounts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 15, 2023

 Ms. Stefanik introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
  To amend the Workforce Innovation and Opportunity Act to establish 
       employer-directed skills accounts, 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 ``Employer-Directed Skills Act''.

SEC. 2. EMPLOYER-DIRECTED SKILLS ACCOUNTS.

    (a) Definitions.--
            (1) Employer-sponsored skills development.--Section 3 of 
        the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) 
        is amended--
                    (A) by redesignating paragraphs (19) through (71) 
                as paragraphs (20) through (72), respectively; and
                    (B) by inserting after paragraph (18), the 
                following:
            ``(19) Employer-sponsored skills development.--The term 
        `employer-sponsored skills development' means a skills 
        development program--
                    ``(A) that is selected by an employer to meet the 
                specific skill demands of the employer;
                    ``(B) that is conducted pursuant to terms and 
                conditions which are established under an employer-
                sponsored skills development agreement described in 
                section 134(c)(3)(I)(iv), including a commitment by the 
                employer to employ an individual upon successful 
                completion of the program;
                    ``(C) for which an employer pays a portion of the 
                cost of the program, which shall not be less than--
                            ``(i) 10 percent of the cost, in the case 
                        of an employer with not more than 50 employees;
                            ``(ii) 25 percent of the cost, in the case 
                        of an employer with more than 50 employees but 
                        not more than 100 employees; and
                            ``(iii) 50 percent of the cost, in the case 
                        of an employer with more than 100 employees; 
                        and
                    ``(D) for which the Federal share of the cost of 
                the program is provided to the employer through an 
                employer-directed skills account in accordance with 
                section 134(c)(3)(I)(ii).''.
            (2) On-the-job training.--Paragraph (45) of section 3 of 
        the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) 
        is amended, as redesignated by paragraph (1)(A)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) in a case in which each of the conditions 
                under section 134(c)(3)(I)(i) are met with respect to 
                such training (including the establishment of an on-
                the-job training agreement described in section 
                134(c)(3)(I)(iii)), provides the Federal share of the 
                cost of training to the employer through an employer-
                directed skills account.''.
            (3) Related conforming amendments.--The Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3101 et seq.) is 
        amended--
                    (A) in section 134(c)(3)(H)(i) (20 U.S.C. 
                3174(c)(3)(H)(i)), by striking ``section 3(44)'' and by 
                inserting ``section 3(45)'';
                    (B) in section 211(e)(3) (20 U.S.C. 3291(e)(3)), by 
                striking ``section 3(45)'' and inserting ``section 
                3(46)'';
                    (C) in section 181(d)(2) (20 U.S.C. 3241(d)(2)), by 
                striking ``transitional employment,'' and inserting 
                ``transitional employment, employer-sponsored skills 
                development''; and
                    (D) in section 194(4) (20 U.S.C. 3254(4)), by 
                inserting ``or employer-sponsored skills development'' 
                after ``On-the-job training''.
    (b) Exceptions for Employer-Sponsored Skills Development.--Section 
122(h) of the Workforce Innovation and Opportunity Act (29 U.S.C. 
3152(h)) is amended--
            (1) in paragraph (1), by inserting ``employer-sponsored 
        skills development,'' after ``incumbent worker training,''; and
            (2) in paragraph (2), by inserting ``employer-sponsored 
        skills development,'' after ``incumbent worker training,''.
    (c) Career Services.--Section 134(c)(2)(A) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3174(c)(2)(A)) is amended--
            (1) in clause (xii), by striking ``and'' at the end;
            (2) in clause (xiii), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
                            ``(xiv) provision of information on 
                        employers in the local areas that are offering 
                        employer-sponsored skills development or on-
                        the-job training programs that may be 
                        reimbursed through an employer-directed skills 
                        account established under section 134(c)(3)(I) 
                        and the performance information available on 
                        such programs; and
                            ``(xv) provision of assistance, in 
                        coordination with employers in the local areas 
                        that are offering employer-sponsored skills 
                        development or on-the-job training, in 
                        establishing employer-sponsored skills 
                        development agreements or on-the-job training 
                        agreements.''.
    (d) Eligibility for Training Services.--Section 134(c)(3) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in clause (i), by inserting ``or (iii)'' after 
                ``clause (ii)'';
                    (B) by redesignating clause (iii) as clause (iv); 
                and
                    (C) by inserting after clause (ii) the following:
                            ``(iii) Participants selected for on-the-
                        job training or employer-sponsored skills 
                        development.--A one-stop operator or one-stop 
                        partner shall not be required to conduct an 
                        interview, evaluation, or assessment of a 
                        participant under clause (i) if such 
                        participant is selected by an employer under 
                        section 134(c)(3)(I)(i) to receive on-the-job 
                        training or employer-sponsored skills 
                        development, and the applicable conditions 
                        under such section are met for such individual 
                        to receive such services.''; and
            (2) in subparagraph (D)--
                    (A) in clause (x), by striking ``and'' at the end;
                    (B) in clause (xi), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(xii) employer-sponsored skills 
                        development programs conducted with a 
                        commitment by an employer to employ an 
                        individual upon successful completion of such a 
                        program.''.
    (e) Employer-Directed Skills Accounts.--
            (1) Local plan.--Section 108(b)(19) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3123) is amended by 
        inserting ``or employer-directed skills accounts'' after 
        ``individual training accounts''.
            (2) Consumer choice requirements.--Section 134(c)(3)(F) of 
        the Workforce Innovation and Opportunity Act (29 U.S.C. 
        3174(c)(3)(F) is amended--
                    (A) by redesignating clauses (iv) and (v) as 
                clauses (v) and (vi), respectively;
                    (B) by inserting after clause (iii), the following:
                            ``(iv) Employer-directed skills accounts.--
                        In a case in which an individual is selected by 
                        an employer under section 134(c)(3)(I)(i) to 
                        receive on-the-job training or employer-
                        sponsored skills development, and the 
                        applicable conditions under such section are 
                        met for such individual to receive such 
                        services, the local board involved shall 
                        arrange for payment for such services through 
                        an employer-directed skills account in 
                        accordance with section 134(c)(3)(I)(ii).''; 
                        and
                    (C) in clause (v), as redesignated by subparagraph 
                (A), by inserting ``or employer-directed skills 
                accounts'' after ``individual training accounts''.
            (3) Additional exception to use of individual training 
        accounts.--Section 134(c)(3)(G) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3174(c)(3)(G)) is amended--
                    (A) by redesignating clauses (iii) and (iv) as 
                clauses (iv) and (v), respectively;
                    (B) in clause (i), by striking ``clause (ii)'' and 
                inserting ``clauses (ii) and (iii)'';
                    (C) by inserting after clause (ii), the following:
                            ``(iii) Employer-directed skills 
                        accounts.--Services authorized under this 
                        paragraph may be provided pursuant to an 
                        employer-directed skills account in lieu of an 
                        individual training account if such services 
                        are employer-sponsored skills development or 
                        on-the-job training and the applicable 
                        conditions under section 134(c)(3)(I)(i) are 
                        met for an individual to receive such 
                        services.''; and
                    (D) in clause (v) (as redesignated by subparagraph 
                (A)), by inserting ``, employer-directed skills 
                accounts,'' after ``individual training accounts''.
            (4) Establishment of employer-directed skills accounts.--
        Section 134(c)(3) of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3174(c)(3)) is amended by adding at the end the 
        following:
                    ``(I) Employer-directed skills accounts.--
                            ``(i) In general.--An individual shall 
                        receive on-the-job training or employer-
                        sponsored skills development through the use of 
                        an employer-directed skills account, if each of 
                        the following conditions are met:
                                    ``(I) An employer selects the 
                                individual, who is not an employee of 
                                such employer, for on-the-job training 
                                or employer-sponsored skills 
                                development.
                                    ``(II)(aa) In the case of an 
                                individual selected under subclause (I) 
                                to receive on-the-job training, an on-
                                the-job training agreement that meets 
                                the requirements of clause (iii) is 
                                established and signed by the 
                                individual and the employer; or
                                    ``(bb) in the case of an individual 
                                selected under subclause (I) to receive 
                                employer-sponsored skills development, 
                                an employer-sponsored skills 
                                development agreement that meets the 
                                requirements of clause (iv) is 
                                established and signed by the 
                                individual and the employer.
                                    ``(III) The employer submits to the 
                                local board each of the following:
                                            ``(aa) A certification that 
                                        the individual requires an on-
                                        the-job training or employer-
                                        sponsored skills development 
                                        program to obtain employment 
                                        with the employer, and has the 
                                        skills and qualifications to 
                                        successfully participate in 
                                        such a program.
                                            ``(bb) A certification that 
                                        the employer will submit the 
                                        necessary performance 
                                        information to the local board 
                                        in accordance with section 
                                        122(h).
                                            ``(cc) The on-the-job 
                                        training agreement or the 
                                        employer-sponsored skills 
                                        development agreement described 
                                        in subclause (II), as 
                                        applicable.
                                    ``(IV) The local board involved 
                                reviews and approves each certification 
                                and agreement received under subclause 
                                (III), by considering the following:
                            ``(ii) Approval of agreements.--In 
                        determining whether to approve an employer-
                        sponsored skills development agreement or an 
                        on-the-job training agreement under clause 
                        (i)(IV), the local board involved shall 
                        consider the following:
                                    ``(I) The characteristics of the 
                                participants of the on-the-job training 
                                or employer-sponsored skills 
                                development that is the subject of the 
                                agreement.
                                    ``(II) The size of the employer 
                                submitting such agreement, with a 
                                priority on supporting agreements 
                                submitted by small businesses.
                                    ``(III) The alignment of the 
                                agreement with the workforce investment 
                                needs identified in the local plan of 
                                the local area under section 108.
                                    ``(IV) In the case of an employer-
                                sponsored skills development agreement, 
                                if the employer-sponsored skills 
                                development offered--
                                            ``(aa) is for preparation 
                                        to work in an in-demand 
                                        industry sector or occupation; 
                                        and
                                            ``(bb) leads to a 
                                        recognized postsecondary 
                                        credential.
                                    ``(V) Any other factors the local 
                                board determines appropriate.
                            ``(iii) Payment to employers.--The local 
                        board involved in on-the-job training or 
                        employer-sponsored skills development under 
                        clause (i) shall arrange for the appropriate 
                        payment of such services through an employer-
                        directed skills account as follows:
                                    ``(I) On-the-job training.--For on-
                                the-job training, the local board 
                                involved shall reimburse the employer 
                                from funds in the employer-directed 
                                skills account in accordance to the 
                                reimbursement requirements of section 
                                3(45)(B) and after receipt of 
                                documentation of the wages earned by 
                                the individual during such training.
                                    ``(II) Employer-sponsored skills 
                                development.--For employer-sponsored 
                                skills development services, the local 
                                board involved shall reimburse the 
                                employer from funds in the employer-
                                directed skills account for the Federal 
                                share of the costs of the program after 
                                receipt of documentation from the 
                                employer of payment of such costs.
                            ``(iv) On-the-job training agreement.--An 
                        on-the-job training agreement under clause (i) 
                        shall--
                                    ``(I) establish--
                                            ``(aa) the length of the 
                                        on-the-job training;
                                            ``(bb) the hourly wage rate 
                                        of the individual;
                                            ``(cc) the skills necessary 
                                        for the job and the 
                                        individual's current skill 
                                        level as of the date of the 
                                        agreement; and
                                            ``(dd) the skills to be 
                                        learned during the on-the-job 
                                        training; and
                                    ``(II) include an assurance that 
                                the employer will provide the local 
                                board involved with documentation of 
                                the wages earned by the individual 
                                while engaged in such on-the-job 
                                training for the purpose of 
                                reimbursement to the employer.
                            ``(v) Employer-sponsored skills development 
                        agreement.--An employer-sponsored skills 
                        development agreement referred to in clause (i) 
                        shall establish--
                                    ``(I) the provider of the employer-
                                sponsored skills development program;
                                    ``(II) the length of such program;
                                    ``(III) the skills to be learned 
                                during such program;
                                    ``(IV) a commitment by the employer 
                                to employ the individual upon 
                                successful completion of the program;
                                    ``(V) the cost of the program;
                                    ``(VI) the amount of such cost that 
                                will be paid by the employer (the non-
                                Federal share), which shall be not less 
                                than the amount specified in section 
                                3(19)(C); and
                                    ``(VII) any recognized 
                                postsecondary credentials that will be 
                                awarded to successful participants.''.
                                 <all>