[Congressional Record Volume 149, Number 54 (Thursday, April 3, 2003)]
[Senate]
[Pages S4837-S4839]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Mr. Rockefeller, and Mr. Breaux):
  S. 786. A bill to amend the temporary assistance to needy families 
program under part A of title IV of the Social Security Act to provide 
grants for transitional jobs programs, and for other purposes; to the 
Committee on Finance.
  Mr. BINGAMAN. Mr. President, I rise today to introduce the Business 
Links Act, on behalf of myself, Senator Rockefeller and Senator Breaux.
  The Business Links Act is a companion bill to the Education Works 
Act, which I introduced a short time ago. Both of these bills address 
the need to support State efforts to use welfare to work strategies 
that combine work with a flexible mix of education, training and other 
supports. The Business Links Act, more specifically, provides resources 
to States seeking to implement one of the most effective of these types 
of programs: transitional jobs programs. These programs provide 
subsidized, temporary, wage-paying jobs for 20 to 35 hours a week, 
along with access to job readiness, basic education, vocational skills, 
and other barrier-removal services based on individualized plans. The 
Business Links Act would provide states with funding to implement these 
transitional jobs programs and other training and support programs such 
as Business Links.
  Existing transitional jobs programs are achieving great outcomes. 
Research has shown that 81 percent to 94 percent of those who completed 
transitional jobs programs went on to unsubsidized jobs with wages, and 
that most of these individuals moved into full-time employment. 
Transitional jobs can be particularly effective for the hardest to 
serve welfare recipients. For people who face barriers, or who lack the 
skills or experience to compete successfully in the labor market, paid 
work in a supportive environment, together with access to needed 
services provides a real chance to move into stable, permanent 
employment. Transitional jobs not only help individuals, but 
communities as well. In providing work opportunities for hard-to-employ 
individuals, these programs reduce pressure on local emergency systems 
and decrease government expenditures on health care, food stamps, and 
cash assistance.
  Our legislation also supports ``business link'' programs that provide 
individuals with fewer barriers and those who have historically found 
only very low wage employment with intensive training and skill 
development activities designed to lead to long-term, higher paid 
employment. These programs are based on partnerships with the private 
sector. In my home State, just such a program is producing great 
results the Teamworks program. During a 12-week course, participants 
are provided with training in life and employment skills, necessary 
supports such as childcare and transportation, assistance in their job 
search efforts and ongoing support for 18 months after job placement. 
Impressively, the average wage of those completing the program is $1.50 
per hour higher than other programs and job retention rates are 20 
percent higher.
  Additional Federal support for transitional job and business link 
programs is sorely needed. The Welfare-to-work funds that have 
previously been used to support these programs are nearly exhausted. In 
addition, in a period of rising caseloads and state budget crises such 
as we are now facing, funding transitional jobs solely with existing 
TANF funds will be very difficult.
  I urge my colleagues to join me in supporting the Business Links Act, 
which will provide States with the tools they need to implement 
programs that work. I ask unanimous consent that the text of the bill 
be printed in the Record.

[[Page S4838]]

  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 786

       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 ``Business Links Act of 
     2003''.

     SEC. 2. TRANSITIONAL JOBS GRANTS.

       (a) In General.--Section 403(a)(4) of the Social Security 
     Act (42 U.S.C. 603(a)(4)) is amended to read as follows:
       ``(4) Innovative business link partnership grants.--
       ``(A) In general.--The Secretary and the Secretary of Labor 
     (in this paragraph referred to as the ``Secretaries'') 
     jointly shall award grants in accordance with this paragraph 
     for projects proposed by eligible applicants based on the 
     following:
       ``(i) The potential effectiveness of the proposed project 
     in carrying out the activities described in subparagraph (E).
       ``(ii) Evidence of the ability of the eligible applicant to 
     leverage private, State, and local resources.
       ``(iii) Evidence of the ability of the eligible applicant 
     to coordinate with other organizations at the State and local 
     level.
       ``(B) Definition of eligible applicant.--
       ``(i) In general.--In this paragraph, the term `eligible 
     applicant' means a nonprofit organization, a local workforce 
     investment board established under section 117 of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2832), a State, a 
     political subdivision of a State, or an Indian tribe.
       ``(ii) Grants to promote business linkages.--

       ``(I) Additional eligible applicant.--Only for purposes of 
     grants to carry out the activities described in subparagraph 
     (E)(i), the term `eligible applicant' includes an employer.
       ``(II) Additional requirement.--In order to qualify as an 
     eligible applicant for purposes of subparagraph (E)(i), the 
     applicant must provide evidence that the application has been 
     developed by and will be implemented by a local or regional 
     consortium that includes, at minimum, employers or employer 
     associations, and education and training providers, in 
     consultation with local labor organizations and social 
     service providers that work with low-income families or 
     individuals with disabilities.

       ``(C) Requirements.--
       ``(i) In general.--In awarding grants under this paragraph, 
     the Secretaries shall--

       ``(I) consider the needs of rural areas and cities with 
     large concentrations of residents with an income that is less 
     than 150 percent of the poverty line; and
       ``(II) ensure that--

       ``(aa) all of the funds made available under this paragraph 
     (other than funds reserved for use by the Secretaries under 
     subparagraph (J)) shall be used for activities described in 
     subparagraph (E);
       ``(bb) not less than 40 percent of the funds made available 
     under this paragraph (other than funds so reserved) shall be 
     used for activities described in subparagraph (E)(i); and
       ``(cc) not less than 40 percent of the funds made available 
     under this paragraph (other than funds so reserved) shall be 
     used for the activities described in subparagraph (E)(ii).
       ``(ii) Continuation of availability.--If any portion of the 
     funds required to be used for activities referred to in item 
     (bb) or (cc) of clause (i)(II) are not awarded in a fiscal 
     year, such portion shall continue to be available in the 
     subsequent fiscal year for the same activity, in addition to 
     other amounts that may be available for such activities for 
     that subsequent fiscal year.
       ``(D) Determination of grant amount.--
       ``(i) In general.--Subject to clause (ii), in determining 
     the amount of a grant to be awarded under this paragraph for 
     a project proposed by an eligible applicant, the Secretaries 
     shall provide the eligible applicant with an amount 
     sufficient to ensure that the project has a reasonable 
     opportunity to be successful, taking into account--

       ``(I) the number and characteristics of the individuals to 
     be served by the project;
       ``(II) the level of unemployment in the area to be served 
     by the project;
       ``(III) the job opportunities and job growth in such area;
       ``(IV) the poverty rate for such area; and
       ``(V) such other factors as the Secretary deems appropriate 
     in such area.

       ``(ii) Maximum award for grants to promote business 
     linkages or provide transitional jobs programs.--

       ``(I) In general.--In the case of a grant to carry out 
     activities described in clause (i) or (ii) of subparagraph 
     (E), an eligible applicant awarded a grant under this 
     paragraph may not receive more than $10,000,000 per fiscal 
     year under the grant.
       ``(II) Rule of construction.--Nothing in subclause (I) 
     shall be construed as precluding an otherwise eligible 
     applicant from receiving separate grants to carry out 
     activities described in clause (i) or (ii) of subparagraph 
     (E).

       ``(iii) Grant period.--The period in which a grant awarded 
     under this paragraph may be used shall be specified for a 
     period of not less than 36 months and not more than 60 
     months.
       ``(E) Allowable activities.--An eligible applicant awarded 
     a grant under this paragraph shall use funds provided under 
     the grant to do the following:
       ``(i) Promote business linkages.--

       ``(I) In general.--To promote business linkages in which 
     funds shall be used to fund new or expanded programs that are 
     designed to--

       ``(aa) substantially increase the wages of eligible 
     individuals (as defined in subparagraph (F)), whether 
     employed or unemployed, who have limited English proficiency 
     or other barriers to employment by creating or upgrading job 
     and related skills in partnership with employers, especially 
     by providing supports and services at or near work sites; and
       ``(bb) identify and strengthen career pathways by expanding 
     and linking work and training opportunities for such 
     individuals in collaboration with employers.

       ``(II) Consideration of in-kind, in-cash resources.--In 
     determining which programs to fund under this clause, an 
     eligible applicant awarded a grant under this paragraph shall 
     consider the ability of a consortium to provide funds in-kind 
     or in-cash (including employer-provided, paid release time) 
     to help support the programs for which funding is sought.
       ``(III) Priority.--In determining which programs to fund 
     under this clause, an eligible applicant awarded a grant 
     under this paragraph shall give priority to programs that 
     include education or training for which participants receive 
     credit toward a recognized credential, such as an 
     occupational certificate or license.
       ``(IV) Use of funds.--

       ``(aa) In general.--Funds provided to a program under this 
     clause may be used for a comprehensive set of employment and 
     training benefits and services, including job development, 
     job matching, workplace supports and accommodations, 
     curricula development, wage subsidies, retention services, 
     and such other benefits or services as the program deems 
     necessary to achieve the overall objectives of this clause.
       ``(bb) Provision of services.--So long as a program is 
     principally designed to assist eligible individuals, (as 
     defined in subparagraph (F)), funds may be provided to a 
     program under this clause that also serves low-earning 
     employees of 1 or more employers even if such individuals are 
     not within the definition of eligible individual (as so 
     defined).
       ``(ii) Provide for transitional jobs programs.--

       ``(I) In general.--To provide for wage-paying transitional 
     jobs programs which combine time-limited employment in the 
     public or nonprofit private sector that is subsidized with 
     public funds with skill development and activities to remove 
     barriers to employment, pursuant to an individualized plan 
     (or, in the case of an eligible individual described in 
     subparagraph (F)(i), an individual responsibility plan 
     developed for an individual under section 408(b)). Such 
     programs also shall provide job development and placement 
     assistance to individual participants to help them move from 
     subsidized employment in transitional jobs into unsubsidized 
     employment, as well as retention services after the 
     transition to unsubsidized employment.
       ``(II) Eligible participants.--The Secretary shall ensure 
     that individuals who participate in transitional jobs 
     programs funded under a grant made under this paragraph shall 
     be individuals who have been unemployed because of limited 
     skills, experience, or other barriers to employment, and who 
     are eligible individuals (as defined in subparagraph (F)), 
     provided that so long as a program is designed to, and 
     principally serves, eligible individuals (as so defined), a 
     limited number of individuals who are unemployed because of 
     limited skills, experience, or other barriers to employment, 
     and who have an income below 100 percent of the Federal 
     poverty line but who do not satisfy the definition of 
     eligible individual (as so defined) may be served in the 
     program to the extent the Secretaries determine that the 
     inclusion of such individuals in the program is appropriate.
       ``(III) Use of funds.--Funds provided to a program under 
     this clause may only be used in accordance with the 
     following:

       ``(aa) To create subsidized transitional jobs in which work 
     shall be performed directly for the program operator or at 
     other public and non profit organizations (in this subclause 
     referred to as `worksite employers') in the community, and in 
     which 100 percent of the wages shall be subsidized, except as 
     described in item (ff) regarding placements in the private, 
     for profit sector.
       ``(bb) Participants shall be paid at the rate paid to 
     unsubsidized employees of the worksite employer who perform 
     comparable work at the worksite where the individual is 
     placed. If no other employees perform the same or comparable 
     work then wages shall be set, at a minimum, at 50 percent of 
     the Lower Living Standard Income Level (commonly referred to 
     as the `LLSIL'), as determined under section 101(24) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801(24)), for a 
     family of 3 based on 35 hours per week.
       ``(cc) Transitional jobs shall be limited to not less than 
     6 months and not more than 24 months, however, nothing shall 
     preclude a participant from moving into unsubsidized 
     employment at a point prior to the maximum duration of the 
     transitional job placement. Participants shall be paid wages 
     based on a workweek of not less than 30 hours per week or 
     more than 40 hours per week, except that a parent of a child 
     under the age of 6, a child who is disabled, or a child with 
     other special needs, or an individual who for other reasons 
     cannot successfully participate for 30

[[Page S4839]]

     to 40 hours per week, may be allowed to participate for more 
     limited hours, but not less than 20 hours per week. In any 
     work week, 50 percent to 80 percent of hours shall be spent 
     in the transitional job and 20 percent to 50 percent of hours 
     shall be spent in education or training, or other services 
     designed to reduce or eliminate any barriers.
       ``(dd) Program operators shall provide case management 
     services and ensure access to appropriate education, 
     training, and other services, including job accommodation, 
     work supports, and supported employment, as appropriate and 
     consistent with an individual plan that is based on the 
     individual's strengths, resources, priorities, concerns, 
     abilities, capabilities, career interests, and informed 
     choice and that is developed with each participant. The goal 
     of each participant's plan shall focus on preparation for 
     unsubsidized jobs in demand in the local economy which offer 
     the potential for advancement and growth. Services shall also 
     include job placement assistance and retention services, 
     which may include coaching and work place supports, for 12 
     months after entry into unsubsidized placement. Participants 
     shall also receive support services such as subsidized child 
     care and transportation, on the same basis as those services 
     are made available to recipients of assistance under the 
     State program funded under this part who are engaged in work-
     related activities.
       ``(ee) Providers shall work with individual recipients to 
     determine eligibility for other employment-related supports 
     which may include (but are not limited to) supported 
     employment, other vocational rehabilitation services, and 
     programs or services available under the Workforce Investment 
     Act of 1998 (29 U.S.C. 2801 et seq.), or the ticket to work 
     and self-sufficiency program established under section 1148, 
     and, to the extent possible, shall provide transitional 
     employment in collaboration with entities providing, or 
     arranging for the provision of, such other supports.
       ``(ff) Not more than 20 percent of the placements for a 
     grantee shall be with a private for-profit company, except 
     that such 20 percent limit may be waived by the Secretary for 
     programs in rural areas when the grantee can demonstrate 
     insufficient public and non-profit worksites. When a 
     placement is made at a private for-profit company, the 
     company shall pay 50 percent of program costs (including 
     wages) for each participant, and the company shall agree, in 
     writing, to hire each participant into an unsubsidized 
     position at the completion of the agreed upon subsidized 
     placement, or sooner, provided that the participant's job 
     performance has been satisfactory. Not more than 5 percent of 
     the workforce of a private for-profit company may be composed 
     of transitional jobs participants.

       ``(IV) Definition of transitional jobs program.--In this 
     clause, the term `transitional jobs program' means a program 
     that is intended to serve current and former recipients of 
     assistance under a State or tribal program funded under this 
     part and other low-income individuals who have been unable to 
     secure employment through job search or other employment-
     related services because of limited skills, experience, or 
     other barriers to employment.

       ``(iii) Capitalization.--To develop capitalization 
     procedures for the delivery of self-sustainable social 
     services.
       ``(iv) Administrative expenditures.--Not more than 5 
     percent of the funds awarded to an eligible applicant under 
     this paragraph may be used for administrative expenditures 
     incurred in carrying out the activities described in clause 
     (i), (ii), or (iii) or for expenditures related to carrying 
     out the assessments and reports required under subparagraph 
     (H).
       ``(F) Definition of eligible individual.--In this 
     paragraph, the term `eligible individual' means--
       ``(i) an individual who is a parent who is a recipient of 
     assistance under a State or tribal program funded under this 
     part;
       ``(ii) an individual who is a parent who has ceased to 
     receive assistance under such a State or tribal program;
       ``(iii) an individual who is at risk of receiving 
     assistance under a State or tribal program funded under this 
     part;
       ``(iv) an individual with a disability; or
       ``(v) a noncustodial parent who is unemployed, or is having 
     difficulty in paying child support obligations, including 
     such a parent who is a former criminal offender.
       ``(G) Application.--Each eligible applicant desiring a 
     grant under this paragraph shall submit an application to the 
     Secretaries at such time, in such manner, and accompanied by 
     such information as the Secretaries may require.
       ``(H) Assessments and reports by grantees.--
       ``(i) In general.--An eligible applicant that receives a 
     grant under this paragraph shall assess and report on the 
     outcomes of programs funded under the grant, including the 
     identity of each program operator, demographic information 
     about each participant, including education level, literacy 
     level, prior work experience and identified barriers to 
     employment, the nature of education, training, or other 
     services received by the participant, the reason for the 
     participant's leaving the program, and outcomes related to 
     the placement of the participant in an unsubsidized job, 
     including 1-year employment retention, wage at placement, 
     benefits, and earnings progression, as specified by the 
     Secretaries.
       ``(ii) Assistance.--The Secretaries shall--

       ``(I) assist grantees in conducting the assessment required 
     under clause (i) by making available where practicable low-
     cost means of tracking the labor market outcomes of 
     participants; and
       ``(II) encourage States to provide such assistance.

       ``(I) Application to requirements of the state program.--
       ``(i) Work participation requirements.--With respect to any 
     month in which a recipient of assistance under a State or 
     tribal program funded under this part who satisfactorily 
     participates in a business linkage or transitional jobs 
     program described in subparagraph (E) that is paid for with 
     funds made available under a grant made under this paragraph, 
     such participation shall be considered to satisfy the work 
     participation requirements of section 407 and be included for 
     purposes of determining monthly participation rates under 
     subsection (b)(1)(B)(i) of that section.
       ``(ii) Participation not considered assistance.--A benefit 
     or service provided with funds made available under a grant 
     made under this paragraph shall not be considered assistance 
     for any purpose under a State or tribal program funded under 
     this part.
       ``(J) Assessments by the secretaries.--
       ``(i) Reservation of funds.--Of the amount appropriated 
     under subparagraph (L) for each of fiscal years 2004 and 
     2005, $3,000,000 of such amount for each such fiscal year is 
     reserved for use by the Secretaries to prepare an interim and 
     final report summarizing and synthesizing outcomes and 
     lessons learned from the programs funded through grants 
     awarded under this paragraph.
       ``(ii) Interim and final assessments.--With respect to the 
     reports prepared under clause (i), the Secretaries shall 
     submit--

       ``(I) the interim report not later than 4 years after the 
     date of enactment of the Business Links Act of 2003; and
       ``(II) the final report not later than 6 years after such 
     date of enactment.

       ``(K) Evaluations.--
       ``(i) Reservation of funds.--Of the amount appropriated 
     under subparagraph (L) for a fiscal year, an amount equal to 
     1.5 percent of such amount for each such fiscal year shall be 
     reserved for use by the Secretaries to conduct evaluations in 
     accordance with the requirements of clause (ii).
       ``(ii) Requirements.--The Secretaries--

       ``(I) shall develop a plan to evaluate the extent to which 
     programs funded under grants made under this paragraph have 
     been effective in promoting sustained, unsubsidized 
     employment for each group of eligible participants, and in 
     improving the skills and wages of participants in comparison 
     to the participants' skills and wages prior to participation 
     in the programs;
       ``(II) may evaluate the use of such a grant by a grantee, 
     as the Secretaries deem appropriate, in accordance with an 
     agreement entered into with the grantee after good-faith 
     negotiations; and
       ``(III) shall include, as appropriate, the following 
     outcome measures in the evaluation plan developed under 
     subclause (I):

       ``(aa) Placements in unsubsidized employment.
       ``(bb) Retention in unsubsidized employment 6 months and 12 
     months after initial placement.
       ``(cc) Earnings of individuals at the time of placement in 
     unsubsidized employment.
       ``(dd) Earnings of individuals 12 months after placement in 
     unsubsidized employment.
       ``(ee) The extent to which unsubsidized job placements 
     include access to affordable employer-sponsored health 
     insurance and paid leave benefits.
       ``(ff) Comparison of pre- and post-program wage rates of 
     participants.
       ``(gg) Comparison of pre- and post-program skill levels of 
     participants.
       ``(hh) Wage growth and employment retention in relation to 
     occupations and industries at initial placement in 
     unsubsidized employment and over the first 12 months after 
     initial placement.
       ``(ii) Recipient of cash assistance under the State program 
     funded under this part.
       ``(jj) Average expenditures per participant.
       ``(iii) Reports to congress.--The Secretaries shall submit 
     to Congress the following reports on the evaluations of 
     programs funded under grants made under this paragraph:

       ``(I) Interim report.--An interim report not later than 4 
     years after the date of enactment of the Business Links Act 
     of 2003.
       ``(II) Final report.--A final report not later than 6 years 
     after such date of enactment.

       ``(L) Appropriation.--
       ``(i) In general.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there is 
     appropriated for grants under this section, $200,000,000 for 
     each of fiscal years 2004 through 2008.
       ``(ii) Availability.--Amounts appropriated under clause (i) 
     for a fiscal year shall remain available for obligation for 5 
     fiscal years after the fiscal year in which the amount is 
     appropriated.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2003.
                                 ______