[Congressional Record Volume 140, Number 142 (Tuesday, October 4, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    THE NEW REEMPLOYMENT ACT OF 1994

                                 ______


                          HON. WILLIAM D. FORD

                              of michigan

                    in the house of representatives

                        Tuesday, October 4, 1994

  Mr. FORD of Michigan. Mr. Speaker, I rise today with Congressman Pat 
Williams to introduce legislation that begins to reform the Nation's 
employment and training system. This new version of the Reemployment 
Act of 1994 would assist over 1 million dislocated workers to become 
reemployed annually and would begin to improve the existing employment 
and training system by establishing one-stop career systems.
  This bill would provide job search assistance and education or 
training to all dislocated workers who wanted and needed services. To 
encourage longer term training, income support for up to 78 weeks would 
be available. This proposal would also establish a demonstration 
program to award grants to States and localities to create one-stop 
career systems that better integrate the existing array of employment 
and training programs.
  Finally, a national Labor Market Information Program would be created 
to provide locally based labor market information so that all users of 
the system can make informed choices.
  The administration had sent up its ``Reemployment Act'' earlier this 
year. Secretary Reich is to be commended for his commitment to 
improving the reemployment prospects of the working people of this 
country. Three Education and Labor Committee subcommittees held 
hearings on H.R. 4050 this spring to hear from the community. While 
support was voiced for the general principles of the bill, many groups 
were critical of specific components, specifically competition and 
privatization. It became clear that major changes to the bill would be 
necessary.
  Congressman Williams and I have tried to fashion a bill that 
addresses the concerns raised during the hearings and in written 
comments sent to our offices. This legislation incorporates the Clinton 
administration's goals of a single dislocated worker program, 
additional integration of the array of employment and training programs 
through a one-stop mechanism, and better local labor market 
information. In addition, this proposal builds on what works best in 
the current system, creates more flexibility at the State and local 
level, and uses the successful School-to-Work approach for establishing 
one-stop career systems.
  Unfortunately, the committee will not be able to act on this 
legislation this year due to our crowded legislative calendar. The 
Education and Labor Committee has successfully considered major reforms 
in school-to-work programs, elementary and secondary education, and 
direct lending for student loans. Given the late date at which we were 
given to address this complex bill, the committee will not be able to 
act on another major reform before adjournment.
  I expect that the Congress and the administration will take up this 
important issue early next year. It is my hope that the committee will 
use this bill as a starting point for deliberations in the next 
Congress.

 Summary of the New Reemployment Act Offered by Chairman William Ford 
                      and Congressman Pat Williams

       This legislation incorporates the Clinton administration's 
     goals of a single dislocated worker program, additional 
     integration of the array of employment and training programs 
     through a one-stop mechanism, and better local labor market 
     information. In addition, this proposal builds on what works 
     best in the current system, creates more flexibility at the 
     State and local level, and uses the successful School-to-Work 
     approach for establishing one-stop career systems.


                 title i: dislocated worker provisions

       Allotments: 25% of the annual appropriation is reserved at 
     the Secretary's discretion to carry out national activities, 
     primarily for discretionary grants and disaster relief. 75% 
     of funds must be allotted to the States applying the current 
     formula. At least 70% of a State's allocation must be 
     distributed to substate grantees. Up to 30% of a State's 
     allocation may be reserved for State activities such that not 
     more than 5% is available for the purposes of administration 
     and not more than 25% is available for other State 
     activities, primarily for the functions of the dislocated 
     worker unit (DWU).
       States' Roles and Responsibilities: States must establish a 
     ``dislocated worker unit'' (DWU) at the state level. The DWU, 
     pursuant to a State plan, must carry out the following 
     activities: rapid response; promotion of the establishment of 
     worker-management transition assistance committees; 
     information collection and dissemination regarding plant 
     closings; program support; and coordination. The Governor may 
     also award grants for special projects. The Governor, after 
     consultation with the State council and local elected 
     officials designates substate areas (SSA) with incentives for 
     areas representing labor markets.
       Local Roles and Responsibilities: The substate grantee is 
     the focal point for services to dislocated workers at the 
     local level. Any public or non-profit entity, including the 
     Employment Service, Service Delivery Area grant recipients or 
     administrative entities under the Job Training Partnership 
     Act, community colleges and area vocational schools, 
     community based organizations, are eligible to be designated 
     as a substate grantee in accordance with an agreement among 
     the Governor, LEO(s) and private industry council(s). 
     Substate grantees, pursuant to a substate plan, may provide 
     services directly, or through contract, grant or agreement 
     with service providers.
       Services: There are five categories of authorized services 
     for eligible dislocated workers: basic, intensive, education 
     and training, retraining income support, and supportive 
     services. Services can be tailored to the individual to 
     achieve his or her employment goal and no arbitrary limits on 
     the length or cost of training are included. Substate 
     grantees have flexibility to select the types of intensive 
     services to be offered to dislocated workers but must provide 
     for an assessment, counseling, development of an 
     employability development plan (EDP) for eligible 
     individuals, case management, and assistance in the selection 
     of education and training providers and in obtaining income 
     support.
       To encourage longer term training, income support is 
     available. Individuals with more than 3 years of tenure with 
     a previous employer or successor employer are referred to the 
     mandatory income support program contained in Title of H.R. 
     4040. Individuals with 1-3 years tenure with previous or 
     successor employer are eligible for up to 26 additional weeks 
     of income support at UI levels beyond their UI benefit 
     period. To be eligible for income support a dislocated worker 
     must be permanently laid off and have at least one year of 
     tenure with an employer or successor employer; be UI 
     eligible; have exhausted UI benefits; be enrolled in training 
     pursuant to reemployment plan by 16th week of initial 
     unemployment period and be making satisfactory progress. This 
     benefit is paid for with discretionary funds through fiscal 
     year 2000. After fiscal year 2000, this benefit becomes a 
     capped entitlement pending adoption of Title II of H.R. 4040.


                   title ii: one-stop career systems

       Overview: This title adopts the successful School-to-Work 
     model as a flexible framework for establishing one-stop 
     career systems. This approach involves a bottoms-up, 
     collaborative process that builds on the previous efforts of 
     states, localities, and service providers to integrate 
     programs and services. This proposal would establish an all 
     voluntary national program of grants and waivers to assist 
     States and localities in implementing one-stop career 
     systems. This legislation authorizes $250 million annually 
     for Titles II and III.
       The basic components of the one-step career system include:
       Integration of employment and training programs;
       Universal access to services by employers and job seekers;
       Customer choice of information, services and providers;
       Accountability of the providers of information and 
     services.
       Integration Component: One-Stop Career Systems (OSCS ) will 
     integrate employment and training programs by using common 
     intake methodology; coordinated job development and 
     placement; and unified computer systems including uniform 
     management information systems. In addition, OSCS will 
     include at least two of the following: common assessment 
     methodology; cross-training of staff, coordinated 
     employability development teams, joint purchasing and 
     integrated contracting, or individual service accounts.
       Customer Choice Component: One-Stop Career Systems will 
     expand customer choice with respect to the point of entry in 
     the system, the types of intensive services provided, and the 
     providers of education and training services.
       Universal Access Component: One-Stop Career Systems will 
     achieve universal access into the system by including co-
     location of services or multiple points of entry. In 
     addition, OSCS will use at least two of the following to 
     improve access to services: telecommunication and computer 
     technology, outstationing of staff, or satellite officers.
       Accountability Component: The One-Stop Career Systems will 
     provide for accountability by including the use of 
     performance measures, customer satisfaction methods, and 
     consumer reports.
       Application Process: In general, States submit an 
     application to the Secretary of Labor to establish a 
     statewide network of One-Stop Career Systems. However, in 
     those states that are unable or unwilling to apply for a 
     grant, localities may submit an application directly to the 
     Secretary of Labor. Local One-Stop Service Areas are only 
     eligible to receive a grant if the State has not been awarded 
     a grant or is in the first year of a grant. Other features of 
     the application include a collaborative planning process 
     between elected officials, employers, labor organizations, 
     and officials from participating programs.
       Governance: A State Human Resource Investment Council or 
     similar entity must be established. The legislation also 
     requires the designation of one-stop service areas and an 
     independent administrative entity. In addition, a local 
     consortium, composed of employers, labor organizations, and 
     officials from participating programs, must be established to 
     provide for overall strategic policy development. The bill 
     also encourages the voluntary participation of approximately 
     50 employment and training programs. Operating agreements 
     between all participating one-stop service providers are also 
     required.
       Waivers: This legislation contains waiver authority for 
     major employment and training statutes including an expedited 
     waiver process to ease the approval process for states and 
     localities. In addition, an interagency task force is 
     established to report back to Congress with recommendations 
     for statutory changes to facilitate integration of existing 
     federal workforce development programs.


          title iii: national labor market information systems

       Title III establishes a National Labor Market Information 
     program to provide access to local labor market information 
     including, information about where jobs are, necessary skills 
     and experience, and location and quality of training 
     programs. The need for a national strategy is outlined, an 
     Office of Labor Market Information within the Department of 
     Labor is established, and the necessary components of such a 
     program are described.


                            budget overview

       The bill authorizes $1.465 billion for Title I in FY95. 
     Over the next 5 years, total REA expenditures are estimated 
     at $9.9 billion in discretionary funding for Title I.
       The bill authorizes $250 million for Titles II and III for 
     FY95. Over the next 5 years, expenditures for Titles II and 
     III are estimated at $1.25 billion for One-Stop Centers and 
     Labor Market Information.

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