[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1962 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1962
To amend the Social Security Act to establish a new employment,
training, and supportive services program for unemployed and
underemployed individuals, including individuals with barriers to
employment and those who are unemployed or underemployed as a result of
COVID-19, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2021
Mr. Danny K. Davis of Illinois (for himself and Ms. Moore of Wisconsin)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Social Security Act to establish a new employment,
training, and supportive services program for unemployed and
underemployed individuals, including individuals with barriers to
employment and those who are unemployed or underemployed as a result of
COVID-19, 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; AMENDMENT TO SOCIAL SECURITY ACT; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Jobs for Economic
Recovery Act of 2021''.
(b) Amendments to Social Security Act.--Except as otherwise
specifically provided, whenever in this Act an amendment is expressed
in terms of an amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that section or other
provision of the Social Security Act.
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; amendment to Social Security Act; table of
contents.
Sec. 2. Purpose.
Sec. 3. Employment, training, and supportive services program.
Sec. 4. Employee retention work opportunity credit.
Sec. 5. Conforming amendments.
Sec. 6. Effective date; regulations.
SEC. 2. PURPOSE.
The purposes of this act are the following:
(1) To provide immediate funding for subsidized employment
programs that will create job opportunities for individuals who
are not employed or who are underemployed, including
individuals who are not employed or who are underemployed as a
result of COVID-19, when it is safe to provide such
opportunities, taking into account the need to prevent the
spread or recurrence of COVID-19.
(2) To expand subsidized employment programs that reconnect
unemployed and underemployed workers to the workforce.
(3) To drive economic recovery by allowing for sufficient
State and local flexibility to create or expand programs that
place workers in jobs that fill community-specific workforce
gaps and meet employer needs.
(4) To prevent long-term joblessness and structural
unemployment and provide work opportunities for individuals
with barriers to employment.
SEC. 3. EMPLOYMENT, TRAINING, AND SUPPORTIVE SERVICES PROGRAM.
(a) Establishment.--The Social Security Act (42 U.S.C. 301 et seq.)
is amended by inserting after title XII the following:
``TITLE XIII--REEMPLOYMENT AND OTHER JOB-RELATED ASSISTANCE AND
BENEFITS
``SEC. 1301. PURPOSE; DEFINITIONS; ADMINISTRATION.
``(a) Purpose.--The purpose of this title is to provide funds to
States, Indian tribes, local governments, and nonprofit organizations
to initiate and expand the provision of employment services, training
and other services and activities, and supportive services for eligible
individuals in order to--
``(1) promote subsidized employment programs for public,
private for-profit, private non-profit, and employment social
enterprise sector jobs that enable unemployed or underemployed
individuals to earn income and connect to the workforce;
``(2) expand the availability of jobs during economic
downturns or in areas with high unemployment or poverty;
``(3) provide economically and socially disadvantaged
individuals and individuals with barriers to employment (such
as the long-term unemployed, individuals with criminal records,
former foster youth, and other economically and socially
disadvantaged populations) with wages and the ability to gain
job experience;
``(4) provide employers with new pathways into the
workforce development system enabling them to have a greater
role in the training and hiring of new workers and labor market
re-entrants and facilitating their transition from subsidized
job placements to unsubsidized employment; and
``(5) allow for sufficient flexibility for States, Indian
tribes, local governments, and nonprofit organizations to
design programs targeted at community-specific workforce gaps
and employer needs.
``(b) Definitions.--In this title:
``(1) Adult and dislocated worker employment and training
activities.--The term `adult and dislocated worker employment
and training activities' means adult and dislocated worker
employment and training activities funded under chapter 3 of
subtitle B of title I of the Workforce Innovation and
Opportunity Act.
``(2) Dislocated worker.--The term `dislocated worker' has
the meaning given that term in section 3 of the Workforce
Innovation and Opportunity Act.
``(3) Eligible individual.--The term `eligible individual'
means an individual who, on the basis of an assessment by the
State, has been determined to be unlikely to find unsubsidized
employment due to--
``(A) being an individual with a barrier to
employment;
``(B) being a dislocated worker; or
``(C) a period of economic downturn or adverse
local or national economic conditions.
``(4) Employment services.--The term `employment services'
means a subsidized job placement (including a transitional job
described in section 134(d)(5) of the Workforce Innovation and
Opportunity Act) in the public, private for-profit, private
non-profit, or employment social enterprise sector and includes
payment or reimbursement of employer subsidies for expenses
such as wages, the employer share of payroll taxes, employer
costs for unemployment insurance, employer costs for workers'
compensation premiums, and costs attributable to supervision
and other administration directly related to the employment of
an eligible individual in the subsidized job placement.
``(5) Indian tribe.--The term `Indian tribe' has the
meaning given that term in section 419(4).
``(6) Individual with a barrier to employment.--The term
`individual with a barrier to employment' has the meaning given
that term in section 3 of the Workforce Innovation and
Opportunity Act and includes an individual who is an offender
(as defined in such section).
``(7) Integrated education and training.--The term
`integrated education and training' has the meaning given that
term in section 3 of the Workforce Innovation and Opportunity
Act.
``(8) Payroll taxes.--The term `payroll taxes' means taxes
under section 3111, 3221, 3301, or 3321 of the Internal Revenue
Code of 1986, and any similar State or local tax imposed on
employers.
``(9) Period of economic downturn.--The term `period of
economic downturn' means, with respect to a State, a period in
which, for each month of such period--
``(A) the average rate of total unemployment in the
United States (seasonally adjusted) for the most recent
3 months for which data is available is at least 5.5
percent; or
``(B) the average rate of total unemployment in
such State (seasonally adjusted) for the most recent 3
months for which data for all States is available is at
least 5.5 percent.
``(10) Supportive services.--
``(A) In general.--The term `supportive services'
has the meaning given that term in section 3 of the
Workforce Innovation and Opportunity Act.
``(B) Additional services.--Such term includes any
of the following:
``(i) Stipends for an eligible individual
provided with unpaid training services.
``(ii) Legal services.
``(iii) Other supplemental services
necessary for an eligible individual to
participate in the State program funded under
this title.
``(11) State expenditures.--The term `State expenditures'
means all State, local, or tribal funds that are expended by
the State or a local or tribal agency including State, local,
or tribal funds that are matched or reimbursed by the Federal
Government and State, local, or tribal funds that are not
matched or reimbursed by the Federal Government.
``(12) Training and other services or activities.--The term
`training and other services or activities' means any of the
following services or activities if provided in conjunction
with, including in preparation for, a subsidized job placement
and determined by the State as necessary to significantly
increase the likelihood that the job placement will be
successful for the employer and employee and may improve the
prospect of obtaining and retaining unsubsidized jobs:
``(A) Services provided through adult and
dislocated worker employment and training activities.
``(B) Integrated education and training.
``(C) Education directly related to employment.
``(D) Vocational and employment services integrated
with trauma-informed substance use disorder treatment,
in collaboration with a substance use disorder
treatment provider.
``(E) Casework and job coaching.
``(F) Union-provided employment services, including
labor-management training.
``(c) Administration.--
``(1) In general.--Subject to section 1302(d), the program
under this title shall be administered by the Secretary through
the Assistant Secretary for the Administration for Children and
Families within the Department of Health and Human Services and
in consultation with the Secretary of Labor as appropriate.
``(2) Funding for administration.--Out of any money in the
Treasury not otherwise appropriated, for each fiscal year
beginning with fiscal year 2022, there are appropriated to the
Secretary $15,000,000 to administer this title. Amounts
appropriated under the preceding sentence shall remain
available until expended.
``(d) Appropriated Entitlement.--
``(1) In general.--This title establishes an entitlement to
payments under this title for States, Indian tribes and tribal
consortiums, and local governments with plans approved under
this title.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to make payments
to States, Indian tribes and tribal consortiums, and local
governments under sections 1304, 1307, and 1308 for each fiscal
year beginning with fiscal year 2021, such sums as are
necessary.
``SEC. 1302. STATE PLAN REQUIREMENTS.
``(a) In General.--A State is not eligible for payment under
section 1304 unless the State has submitted to the Secretary a plan
that describes--
``(1) the State's strategy for creating or expanding
programs that offer subsidized employment for eligible
individuals and moving such individuals into unsubsidized
employment;
``(2) how such strategy fits with the State's overall
strategy for, and assessment of, the State's workforce needs;
``(3) the employment services, training and other services
or activities, and supportive services to be provided under the
State program funded under this title;
``(4) which specific populations of eligible individuals
the State will serve, with a focus on how the State plans to
assess and serve the eligible individuals with serious or
multiple barriers to employment;
``(5) the strategies the State will use for outreach and
engagement with the populations specified under paragraph (4)
to ensure that such populations are aware of subsidized
employment opportunities in their community;
``(6) the strategies the State will use to ensure that its
programs do not systematically exclude the eligible individuals
with the greatest barriers to employment;
``(7) the strategies the State will use for outreach,
engagement, and ongoing collaboration with employers to promote
employers' use of the program and ensure employers have the
training necessary to support eligible individuals;
``(8) the strategies the State will use to create
employment plans for eligible individuals participating in the
State program funded under this title and, based on such plans,
provide eligible individuals with employment services, training
and other services and activities, and supportive services;
``(9) how the State will coordinate the State program
funded under this title with other relevant systems and
programs based on the populations identified which may include
criminal justice, child support, juvenile justice, child
welfare, homeless services, unemployment insurance, and other
human services and workforce development programs of the State,
including programs supported through the Workforce Innovation
and Opportunity Act;
``(10) how the State will ensure compliance with the
requirements of section 1305;
``(11) a strong logic model for the State's proposed
strategy to provide employment services, training, or other
services and activities and any existing research or evidence
supporting the effectiveness of such strategy;
``(12) how the State will address gaps in employment and
earnings by race, ethnicity, age, and gender and collect data
to measure progress in addressing those gaps;
``(13) how the State will incorporate feedback from
eligible individuals participating in the State program to
improve the program over time;
``(14) how the State will make use of planning and
implementation grants under section 1304(f); and
``(15) such information about other aspects of the plan as
the Secretary may request.
``(b) Other Requirements.--
``(1) Certification.--The State shall include with the plan
a certification that supportive services for eligible
individuals will supplement, and not supplant, other assistance
provided by the State.
``(2) Research or evaluation efforts.--The State shall
agree to participate in any research or evaluation efforts
conducted by the Secretary under section 1306(e), which may
include randomized control trials.
``(c) Deadlines for Submission.--
``(1) Initial plan.--The initial State plan under this
section shall be submitted by the State agency or agencies
responsible for administering the State program under this
title to the Secretary not later than 90 days prior to the
commencement of the State program funded under this title and
shall be for the period beginning on the first day of the
commencement of the State program funded under the title and
ending on the day that is the last day of the period covered by
the unified State plan, the combined State plan submitted by
the State under section 102 or 103 of the Workforce Innovation
and Opportunity Act, or a tribal plan submitted under section
166 of such Act that is in effect as of the date of submission.
``(2) Subsequent plans.--
``(A) In general.--Subject to subparagraph (B),
each State plan submitted under this section after the
initial State plan shall be submitted at the same time
and apply for the same period, as a unified State plan,
a combined State plan submitted by the State under
section 102 or 103 of the Workforce Innovation and
Opportunity Act, or a tribal plan submitted under
section 166 of such Act.
``(B) Amendments to plans.--The Secretary shall
establish procedures to allow States to amend a State
plan submitted under this section prior to the
expiration of the period described in subparagraph (A).
``(3) Approval.--Each State plan submitted under this
section by the State agency or agencies responsible for
administering the State program under this title, and any
amendments to the plan, shall be subject to the approval of the
Secretary, in consultation with the Secretary of Labor as
appropriate.
``(d) State Agency.--At the option of the State, the program funded
under this title shall be administered by the lead State agency
responsible for administering the State program funded under part A of
title IV, the lead State agencies responsible for administering the
adult and dislocated worker employment and training activities of the
State, or jointly by such agencies.
``SEC. 1303. USE OF FUNDS.
``(a) Authorized Uses.--
``(1) In general.--Subject to paragraph (2), a State shall
use funds paid under section 1304 to provide eligible
individuals with--
``(A) employment services;
``(B) training and other services and activities;
and
``(C) supportive services while eligible
individuals are provided with employment services and
training and other services and activities.
``(2) Spending requirement.--Not less than 70 percent of
the total amount paid to a State for a fiscal year quarter
shall be for expenditures attributable to employment services
that are payment for or reimbursement of employer costs such as
wages, the employer share of payroll taxes, employer costs for
unemployment insurance, employer costs for workers'
compensation premiums, or costs for employer-provided on-the-
job training for subsidized job placements of eligible
individuals.
``(3) Training.--A State may use such funds for training
employers, agency personnel, and other individuals related to
the administration of the State program funded under this title
on issues related to providing eligible individuals with
employment services, training and other services and
activities, and supportive services.
``(4) Administrative costs.--Subject to section 1304(e), a
State may use such funds for the proper and efficient
administration of the State program funded under this title.
``(b) Evidence-Based Practices and Actual Job Placements
Required.--State expenditures for employment services, training and
other services and activities, and supportive services provided to
eligible individuals shall be eligible for a Federal matching payment
under section 1304 only if the State can demonstrate--
``(1) that the employment services, training and other
services and activities, and supportive services provided for
an eligible individual resulted in employment (subsidized or
unsubsidized) for the eligible individual; or
``(2) good cause for why the job placement or employment
did not occur, which may include the failure of an employer or
an eligible individual to carry out the employer's or
individual's commitments to the State program.
``SEC. 1304. PAYMENTS TO STATES.
``(a) Payments to States.--Subject to section 1303 and subsections
(b) and (c) of this section, beginning with the first fiscal year
quarter for which a State plan is approved under this title, and for
each quarter thereafter, the Secretary shall pay each State, out of any
money in the Treasury not otherwise appropriated, an amount equal to
the Federal medical assistance percentage that applies for the fiscal
year to the State under section 1905(b) (without regard to any
adjustments to such percentage applicable under that section or any
other provision of law) of the total amount expended by the State
during the quarter to provide eligible individuals with employment
services, training and other services and activities, and supportive
services authorized under this title in accordance with an approved
State plan and, subject to subsection (e), for the proper and efficient
administration of the program funded under this title.
``(b) Increased Federal Support During Economic Downturns.--
``(1) Increased fmap.--
``(A) In general.--Beginning with any fiscal year
quarter for which the total unemployment in a State
(seasonally adjusted) for the period consisting of the
most recent 3 months for which data for all States are
published equals or exceeds the applicable percentage
specified in paragraph (2), the Federal medical
assistance percentage applicable to payments made under
subsection (a) to the State for the quarter shall be
increased by the applicable number of percentage points
specified in paragraph (2), except that in no case
shall the Federal medical assistance percentage
applicable to payments under subsection (a) for a State
for a quarter exceed 100 percent.
``(B) Duration.--
``(i) In general.--Subject to clause (ii),
an increase in the Federal medical assistance
percentage made in accordance with this
subsection shall remain in effect with respect
to payments made to a State under subsection
(a) for at least 4 consecutive fiscal year
quarters.
``(ii) Additional increase in
unemployment.--If during the period for which
the Federal medical assistance percentage for a
State is increased under this subsection, the
total unemployment in the State (seasonally
adjusted) for the period consisting of the most
recent 3 months for which data for all States
are published exceeds the applicable total
unemployment rate that was the basis for such
increase, the increase in the Federal medical
assistance percentage shall be the applicable
number of percentage points specified in
paragraph (2) that corresponds to the most
recent percentage of total unemployment in the
State, beginning with the first fiscal year
quarter for which such percentage of total
unemployment occurs and continuing for 3
succeeding fiscal year quarters.
``(2) Applicable percentage; applicable number of
percentage points.--For purposes of paragraph (1), if the total
unemployment in a State (seasonally adjusted) for the period
consisting of the most recent 3 months for which data for all
States are published is--
``(A) equal to or greater than 5.5 percent but less
than 6 percent, the applicable number of percentage
points is 20;
``(B) equal to or greater than 6 percent but less
than 6.5 percent, the applicable number of percentage
points is 30;
``(C) equal to or greater than 6.5 percent but less
than 7 percent, the applicable number of percentage
points is 40; and
``(D) equal to or greater than 7 percent, the
applicable number of percentage points is 50.
``(c) Requirements for Payments.--
``(1) Maintenance of effort.--As a condition of receiving
payments under this section for a fiscal year, the total amount
of State expenditures for work, education, and training
activities and supportive services under the State program
funded under part A of title IV and for qualified State
expenditures (as defined in section 409(a)(7)(B)(i)) for such
fiscal year shall not be less than the total amount of such
State expenditures for fiscal year 2019.
``(2) Non-supplantation requirement.--Funds paid to a State
under this section shall be used to supplement, not supplant,
the total amount of State expenditures for employment services,
training and other services and activities, and supportive
services provided through the adult and dislocated worker
employment and training activities of the State for the fiscal
year.
``(d) Administration of Payments.--
``(1) In general.--Prior to the beginning of each fiscal
quarter, the Secretary shall estimate the amount to which a
State will be entitled under this section for such quarter,
based on--
``(A) a report filed by the State containing its
estimate of the total sum to be expended in such
quarter to provide eligible individuals with employment
services, training and other services and activities,
and supportive services through the program funded
under this title; and
``(B) such other investigation as the Secretary may
find necessary.
``(2) Payments.--The Secretary shall then pay to the State,
in such installments as the Secretary shall determine, the
amount so estimated, reduced or increased to the extent of any
overpayment or underpayment which the Secretary determines was
made under this section to such State for any prior quarter and
with respect to which adjustment has not already been made
under this subsection.
``(e) Limitation.--Beginning with the fifth fiscal year quarter for
which a State plan is approved under this title, and for each quarter
thereafter, a State shall not receive a payment under this section for
amounts expended by the State during the quarter for the proper and
efficient administration of the program funded under this title that
exceed the amount equal to 15 percent of the amount expended by the
State during the quarter to provide eligible individuals with
employment services, training and other services and activities, and
supportive services.
``(f) Planning and Implementation Grants; Technical Assistance.--
``(1) In general.--In addition to amounts available to make
payments to States under subsection (a), the Secretary shall
make grants to States, Indian tribes (or intertribal
consortiums with a tribal family assistance plan approved under
section 412), and local governments for costs attributable to
the planning and implementation of a State, tribal, or local
program approved under section 1302, 1307, or 1308 and funded
under this title and shall provide technical assistance to
States and Indian tribes with respect to the planning and
implementation of such a program.
``(2) Requirements.--
``(A) Community engagement.--As a condition of
receiving a grant under this subsection, a State,
Indian tribe, or local government shall engage local
communities, including focus groups of target
populations of eligible individuals and employers, in
the planning and implementation of the State, tribal,
or local program approved under section 1302, 1307, or
1308 and funded under this title.
``(B) 2-year limit.--No State, Indian tribe, or
local government shall receive a grant under this
subsection for more than 8 quarters.
``(C) No matching payment required.--No matching
payment shall apply to the grants made under this
subsection.
``SEC. 1305. OTHER PROGRAM REQUIREMENTS.
``(a) Assessment and Employment Plan.--
``(1) In general.--The State shall establish procedures
to--
``(A) assess, within 30 days of determining that an
individual is an eligible individual, the eligible
individual's job skills, education, past work
experience, and potential barriers to employment; and
``(B) create, based on such assessment, an
individualized employment plan for each eligible
individual participating in the program that--
``(i) specifies--
``(I) the initial plan for the
eligible individual, including whether
the eligible individual is to
immediately begin working in a
subsidized job or needs training and
other services and activities, or
supportive services before that
placement can occur; and
``(II) the employment services that
will be provided to the eligible
individual, as well as the training and
other services and activities, and
supportive services that will be
provided to the eligible individual
while the eligible individual is
working in a subsidized job; and
``(ii) provides that, near the end of the
individual's initial placement in a subsidized
job, an assessment will be made regarding
whether the eligible individual will be
converted to a permanent, unsubsidized
employee, and if not, the job search assistance
and additional employment services, training
and other services and activities, and
supportive services that will be provided to
the eligible individual with the goal of
obtaining and retaining unsubsidized
employment.
``(2) No discrimination against individuals with highest
barriers to employment.--The State shall prioritize job
placements for individuals with the highest barriers to
employment and ensure that the procedures established under
paragraph (1) do not result in an eligible individual being
less likely to receive employment services solely on the basis
of the individual's barriers to employment.
``(3) Nondiscrimination.--The State shall ensure that the
procedures established under paragraph (1) do not have the
effect of making any eligible individual less likely to receive
employment services on the basis of the individual's race, sex,
religious creed, national origin, or political affiliation.
``(b) Employment Standards and Criteria for Subsidized Jobs.--
``(1) General requirements.--Any subsidized job placement
for an eligible individual participating in the State program
funded under this title shall satisfy the following
requirements:
``(A) Employment services that are payment for or
reimbursement of employer costs may only be used by an
employer in the public, private for-profit, private
non-profit, or employment social enterprise sector for
costs that are attributable to the hiring of,
compensation for, or on-the-job training of, the
eligible individual.
``(B) An employer in the public, private for-
profit, private non-profit, or employment social
enterprise sector shall not be paid a subsidy that
exceeds 120 percent of wage costs.
``(C) An eligible individual in a subsidized job
placement shall be paid at a rate that is not less than
whichever of the following is highest:
``(i) the minimum hourly wage rate
applicable to the individual under the laws of
the State or locality in which the individual
is employed;
``(ii) the wage rate applicable under
section 6 of the Fair Labor Standards Act of
1938 (29 U.S.C. 206);
``(iii) if determined appropriate by the
State program funded under this title, the
prevailing wage rate in the locality in which
the individual is employed as determined by the
Secretary of Labor, based on area surveys of
wage rates conducted by the Department of
Labor; and
``(iv) where a collective-bargaining
agreement covers employees at the site of the
subsidized job placement, a rate set for the
eligible individual in accordance with the
rates provided for in the agreement, including
prospective wage increases provided for in the
agreement.
``(D) An eligible individual in a subsidized job
placement shall be covered by all relevant labor and
employment laws.
``(E) Subject to paragraph (6), a subsidized job
placement for an eligible individual shall not exceed 6
months unless the placement is extended for not more
than 6 additional months for purposes of improving the
work experience, training and other services and
activities, and supportive services needs of an
eligible individual with less prior work experience,
more skill development and training needs, or greater
employment barriers.
``(F) Employers participating in the State program
agree to make a good faith effort to hire an eligible
individual placed in a subsidized job in their
employment if the individual has demonstrated
satisfactory performance and the employer has a
relevant job opening available and to maintain a record
of the share of subsidized workers hired to
unsubsidized positions on a permanent basis.
``(G) Employers shall ensure that the site of
employment is a location where an eligible individual
in a subsidized job placement who is an individual with
a disability, as defined in section 7 of the
Rehabilitation Act of 1973 (29 U.S.C. 705), interacts
with other persons who are not such individuals with
disabilities (not including supervisory personnel or
individuals who are providing services to such worker)
to the same extent as individuals who are not such
individuals with disabilities and who are in comparable
positions interact with other persons.
``(H) For a site of employment at which workers are
covered by a collective bargaining agreement, no
subsidized job placement shall be made at the site
without the consent of all labor organizations
representing workers at such site.
``(I) In a case where the State is considering
placing an eligible individual with an employer who has
previously participated in the State program, the state
shall consider feedback from workers previously placed
with that employer when determining whether to continue
placing eligible individuals in subsidized jobs with
that employer.
``(J) A subsidized job placement in a government
agency shall be subject to the same civil service
protections otherwise applicable to similar jobs at
such agency.
``(K) An eligible individual who works on average
at least 30 hours of service per week in a subsidized
job placement with an employer shall be treated as a
full-time employee of such employer for purposes of
section 4980H of the Internal Revenue Code of 1986.
``(2) Employer of record.--
``(A) In general.--With respect to eligible
individuals in subsidized job placements, the employer
of record may be--
``(i) the employer for whom the individual
performs work;
``(ii) the State or a political subdivision
of the State; or
``(iii) a third party that has entered into
an agreement with the State to serve as the
employer of record with respect to eligible
individuals participating in the State program
funded under this title.
``(B) Evaluations.--If the employer of record with
respect to an eligible individual in a subsidized job
placement is not the employer for whom the individual
performs work, any employer evaluation required under
this title with respect to such job placement shall
include an evaluation of both the employer of record
and the employer for whom the individual performs work.
``(3) Limitation on subsidized job placements per
employer.--
``(A) In general.--No more than 10 percent of the
employees of an employer may be eligible individuals
whose employment with such employer is subsidized under
this title, except that--
``(i) an employer with fewer than 10
employees may employ 1 such individual;
``(ii) an employer with more than 500
employees may not employ more than 50 such
individuals; and
``(iii) there shall be no limitation on the
number of subsidized job placements per
employer if the employer's mission, as reviewed
and evaluated by the State on an annual basis,
includes the provision of employment services,
training and other services and activities, or
supportive services to individuals with
barriers to employment, subject to the State
program's annual review of the outcomes and
experiences of eligible individuals in
subsidized job placements with the employer.
``(B) Application to employers of record.--For
purposes of the limitations described in subparagraph
(A), if an eligible individual in a subsidized job
placement performs work for an employer that is not the
individual's employer of record--
``(i) the individual shall not be
considered to be employed by the employer of
record; and
``(ii) the individual shall be considered
to be employed by the employer for whom the
individual performs work.
``(4) Additional placements.--If, after completing a
subsidized job placement, an eligible individual is unemployed
for at least 4 weeks (regardless of whether such weeks are
consecutive), the eligible individual may apply for a new
subsidized job placement but the immediately subsequent
placement may only be with a different employer (but may be
with the same employer of record, provided that the individual
is performing work for a different employer than the employer
for whom the individual performed work in the previous
subsidized job placement).
``(5) State variation permitted.--Employer subsidies for a
subsidized job placement may vary within a State and among
States carrying out programs under this title provided that all
eligible individuals employed in subsidized jobs shall be paid
not less than the rate specified in subsection (b)(1)(C) and
shall be covered by all relevant labor and employment laws.
``(6) Exception.--With respect to a period of economic
downturn, the Secretary may waive the limit on the duration of
a subsidized job placement under paragraph (1)(E).
``(c) Nondisplacement.--An employer shall not employ an eligible
individual in a subsidized job placement if--
``(1) employing such individual will result in the layoff
or partial displacement (such as a reduction in hours, wages,
or employment benefits) of an existing employee or position of
the employer;
``(2) such individual will assume any of the duties or
responsibilities of an employee who is participating in a
strike, collective bargaining, or union organizing;
``(3) employing such individual infringes upon the
promotional opportunities of an existing employee of the
employer; or
``(4) such individual will perform the same work or
substantially the same work as that performed by any individual
who has been laid off or partially displaced and has not
received an offer from the employer to be restored to the
position the employee had immediately prior to being laid off
or partially displaced.
``(d) Grievance Procedures.--The State shall establish and maintain
a procedure for the filing and adjudication of grievances from eligible
individuals, labor organizations, and other interested individuals
concerning participating employers, including grievances relating to
proposed placements of eligible workers with such employers.
``SEC. 1306. REPORTS; TECHNICAL ASSISTANCE; RESEARCH; AUDIT
REQUIREMENT.
``(a) Quarterly Reports.--
``(1) State reports.--A State shall submit with each
quarterly report required under section 411(a)(1) a report on
the State program funded under this title that contains such
data and information as the Secretary shall require.
``(2) Reports to congress.--The Secretary shall submit with
each annual report to Congress required under section 411(b) a
report on the State programs funded under this title.
``(b) Ongoing Performance Assessment.--
``(1) In general.--The Secretary shall study and submit
annual reports to Congress that--
``(A) measure the performances of the State
programs funded under this title;
``(B) include information about the categories of
individuals and employers served by such programs and
projects, including the extent to which the State is
serving the individuals with the greatest barriers to
employment; and
``(C) describe the activities eligible individuals
engaged in during the year and evaluate the quality of
the services provided under such programs.
``(2) Timing of submissions.--The Secretary shall submit
the reports required by paragraph (1)--
``(A) in the case of the first such report, 2 years
after the date on which the first State program funded
under this title is established; and
``(B) in the case of subsequent reports, annually
thereafter.
``(c) Alignment With Workforce Innovation and Opportunity Act
Programs.--The Secretary shall coordinate with the Secretary of Labor
on aligning performance measures and regulations for the State programs
funded under this title with the performance measures and regulations
applicable to the core programs of States funded under the Workforce
Innovation and Opportunity Act.
``(d) Individual Eligibility Assessment Guidance.--The Secretary,
in consultation with the Secretary of Labor as appropriate, shall study
and issue guidance to States on best practices for assessing whether an
individual satisfies the criteria for being an eligible individual
under section 1301(b)(3) as being unlikely to find unsubsidized
employment due to individual barriers, the individual's status as a
displaced worker, or economic conditions in the State in which the
individual lives or works.
``(e) Research and Evaluation.--
``(1) Ongoing evaluation of state implementation
strategies.--
``(A) In general.--The Secretary shall develop an
experimental or control group testing protocol to
continuously evaluate the impact and effectiveness of
State strategies for implementing employment services,
training and other services and activities under this
title, including--
``(i) the impact of such State strategies
on employment outcomes for eligible
individuals;
``(ii) the relationship among engagement,
impact, and program outcomes, as well as an
examination of program performance;
``(iii) an identification of successful
activities for achieving the purposes
identified in section 1301;
``(iv) the impact on income and earnings
gains, job quality improvement, and poverty
reduction (relative to both the official
poverty line and the supplemental poverty
measure) for eligible individuals participating
in the State program funded under this title
and the families of such individuals;
``(v) an evaluation of program access to
determine the extent to which States are
serving individuals with the greatest barriers
to employment and the portion of State
caseloads that are made up of such individuals;
and
``(vi) any other analysis deemed
appropriate by the Secretary.
``(B) Other requirements.--
``(i) Diverse selection of programs.--In
choosing State programs to participate in
evaluations under this subsection, the
Secretary shall select programs representing a
diversity of policy approaches, geographic
locations, labor market conditions, and
populations served.
``(ii) Data-driven evaluation.--Evaluations
under this subsection shall be rigorous and use
data to statistically measure program outcomes
and impacts.
``(2) Reports.--Not later than 2 years after the date of
enactment of this section and every 2 years thereafter, the
Secretary shall submit to Congress and make publicly available
a report on the initial implementation of activities conducted
under this title, including any available results of the
evaluations conducted under paragraph (1) with respect to such
activities, together with such recommendations for legislation
or administrative action as the Secretary determines
appropriate.
``(3) Best practices.--The Secretary shall use the results
of the evaluations conducted under paragraph (1) to recommend
best practices for implementing employment services, training
and other services and activities under this title and share
such information with participating States under this title.
``(4) Funding.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
for fiscal year 2022 $100,000,000 to conduct evaluations under
this subsection. Amounts appropriated under the preceding
sentence shall remain available until expended.
``(f) Coordination of Data Collection.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Labor, shall determine the data States shall
collect and report regarding the State program funded under
this title and the extent to which that data collection and
reporting, and required evaluations, can be coordinated with
the data collection, reporting, and evaluations required for
the State program funded under part A of title IV and the
performance accountability measures under section 116(b) of the
Workforce Innovation and Opportunity Act for the adult and
dislocated worker employment and training activities of the
State.
``(2) Coordination with other efforts.--The Secretary, in
consultation with the Secretary of Labor and the Secretary of
Education, shall assure that the data collected under this
title aligns as much as possible with efforts to collect
longitudinal data related to the performance of education,
training, and workforce programs.
``(g) Disaggregated Data.--Data collected and submitted under this
section shall be disaggregated by race, ethnicity, age, gender, and
classification in the Standard Occupational Classification System of
the Bureau of Labor Statistics.
``(h) Funding.--The Secretary shall use funding made available
under section 1301(c)(2) to conduct the performance assessments
required under subsection (b) and the research and evaluation required
under subsection (e).
``(i) Inspector General Audit.--The Inspector General of the
Department of Health and Human Services shall biennially audit a sample
of the State programs funded under this title to ensure compliance with
program requirements, including compliance with the nondisplacement
requirements of section 1305(c), and to identify and protect against
any waste, fraud, or abuse in such programs.
``SEC. 1307. DIRECT FUNDING AND ADMINISTRATION FOR PROGRAMS OPERATED BY
INDIAN TRIBES.
``(a) In General.--An Indian tribe or intertribal consortium with a
tribal family assistance plan approved under section 412 (or any Indian
tribe that is a member of such a consortium) or under the Indian
Employment, Training and Related Services Act (25 U.S.C. 3401 et seq.)
that proposes to establish a program under this title shall submit an
application to the Secretary to directly receive payments for
expenditures made to carry out the program (in this section referred to
as a `tribal program application').
``(b) Tribal Program Application Requirements.--Subject to
subsection (c), a tribal program application shall include a plan that
meets the requirements of section 1302 in the same manner as such
requirements apply to a State.
``(c) Program Requirements.--
``(1) In general.--The program requirements specified in
this title shall apply to an Indian tribe or intertribal
consortium with a tribal program application and plan approved
under this section in the same manner as such requirements
apply to a State except to the extent that the Secretary
determines that a requirement cannot reasonably be met by a
tribe in the same or similar manner as such requirement would
apply to a State.
``(2) Non-supplantation requirement.--Funds paid to an
Indian tribe or intertribal consortium with a tribal program
application and plan approved under this section or the Indian
Employment, Training and Related Services Act (25 U.S.C. 3401
et seq.) shall be used to supplement, not supplant, the total
amount of Indian tribe or intertribal consortium expenditures
for employment services, training and other services and
activities, and supportive services provided through the adult
and dislocated worker employment and training activities of the
Indian tribe or intertribal consortium for the fiscal year.
``(d) Payments.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall pay an Indian tribe or intertribal consortium with a
tribal program application and plan approved under this section
in the same manner as States are paid under section 1304.
``(2) Application of tribal fmap.--The Federal medical
assistance percentage that would apply under subsection (d) of
section 479B if an Indian tribe or tribal consortium operated a
program under that section (in this subsection referred to as
the `tribal FMAP'), shall apply to payments made to the Indian
tribe or tribal consortium for expenditures attributable to
carrying out a program under this title, unless the tribal FMAP
is less than the Federal medical assistance percentage that
applies to the State in which the Indian tribe or tribal
consortium is located in which case the State Federal medical
assistance percentage shall apply. In the case of an Indian
tribe or tribal consortium that is located in more than 1
State, the State in which the Indian tribe or tribal consortium
is located that has the highest Federal medical assistance
percentage shall apply to the preceding sentence.
``SEC. 1308. DIRECT FUNDING AND ADMINISTRATION FOR PROGRAMS OPERATED BY
LOCAL GOVERNMENTS.
``(a) In General.--The Secretary shall establish procedures under
which a local government, or a consortium of local governments within a
State, may submit an application to the Secretary to establish a
program under this title and directly receive payments for expenditures
made to carry out the program (in this section referred to as a `local
government program application'), if--
``(1) the State in which the local government or consortium
is located has not elected to establish a State program under
this title; or
``(2) the local government or consortium can demonstrate
that a local program would meet a need or serve a population
that is not met or sufficiently served by the State program
under this title.
``(b) Local Government Program Application Requirements.--Subject
to subsection (c), a local government program application shall include
a plan that meets the requirements of section 1302 in the same manner
as such requirements apply to a State.
``(c) Program Requirements.--
``(1) In general.--The program requirements specified in
this title shall apply to a local government or consortium with
a local government program application and plan approved under
this section in the same manner as such requirements apply to a
State except to the extent that the Secretary determines that a
requirement cannot reasonably be met by a local government in
the same or similar manner as such requirement would apply to a
State.
``(2) Non-supplantation requirement.--Funds paid to a local
government or consortium with a local government program
application and plan approved under this section shall be used
to supplement, not supplant, the total amount of local
government or consortium expenditures for employment services,
training and other services and activities, and supportive
services provided through the adult and dislocated worker
employment and training activities of the local government or
consortium for the fiscal year.
``(d) Payments.--The Secretary shall pay a local government or
consortium with a local government program application and plan
approved under this section in the same manner as States are paid under
section 1304.
``SEC. 1309. GRANTS TO NONPROFIT ORGANIZATIONS.
``(a) In General.--The Secretary, in consultation with the
Secretary of Labor, shall award multi-year grants on a competitive
basis to nonprofit organizations that submit applications to carry out
employment services programs, if the nonprofit organization
demonstrates that--
``(1) the nonprofit organization is unable to receive
funding through the relevant State program under this title;
and
``(2) the employment services program of the nonprofit
organization would meet a need or serve a population that is
not met or sufficiently served by the relevant State program
under this title.
``(b) Scope of Grants.--Grants under this subsection may be
regional programs or serve specific populations.
``(c) Application Process.--A nonprofit organization seeking a
grant under this subsection shall submit an application to the
Secretary at such a time, in such a manner, and containing such
information as the Secretary may reasonably require. Such information
shall, to the extent practicable, include information similar to that
required in a State plan under section 1302.
``(d) Selection.--The Secretary shall select applicants to receive
a grant under this subsection based on--
``(1) the applicant's level of experience and commitment to
providing subsidized jobs;
``(2) the applicant's demonstrated ability to recruit
individuals of the region or other specific population served
by the grant and provide work opportunities for such
individuals; and
``(3) such other criteria as the Secretary determines
appropriate.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section for each of
fiscal years 2021 through 2026, such sums as are necessary.''.
(b) Public Information About Availability of Employment Services.--
Not later than January 1, 2023, the Secretary of Health and Human
Services shall make information publicly available to jobseekers
(either on a website established for such purpose or on an existing
Federal online resource that provides information to jobseekers)
about--
(1) whether they are eligible for employment services under
a State, local government, or tribal program under title XIII
of the Social Security Act (as added by subsection (a)); and
(2) the appropriate State, local government, or tribal
agency to contact for further information about such services
and programs.
SEC. 4. EMPLOYEE RETENTION WORK OPPORTUNITY CREDIT.
(a) In General.--Section 51 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(l) Employee Retention Credit.--
``(1) In general.--The amount of the work opportunity
credit determined under subsection (a) for the taxable year
shall be increased by an amount equal to 40 percent of the
qualified second-year wages for such year with respect to
previously subsidized employees.
``(2) Qualified second-year wages.--
``(A) In general.--For purposes of this subsection,
the term `qualified second-year wages' means qualified
wages (determined as if previously subsidized employees
were members of a targeted group)--
``(i) which are paid to a previously
subsidized employee, and
``(ii) which are attributable to service
rendered during the 1-year period beginning on
the day after the last day of the 1-year period
with respect to such employee determined under
subsection (b)(2).
``(B) Limitation.--The amount of the qualified
second-year wages which may be taken into account with
respect to any individual shall not exceed $6,000 per
year.
``(3) Previously subsidized employee.--For purposes of this
subsection, the term `previously subsidized employee' means an
individual who is hired by an employer through the subsidized
employment program under title XIII of the Social Security Act
and who has been employed by the same employer for a
consecutive 24 months as of the last day of the preceding
taxable year.''.
(b) GAO Study.--The Comptroller General of the United States shall
conduct a study on the employee retention credit under section 51(l) of
the Internal Revenue Code of 1986 and, not later than 6 months after
the last day of the second taxable year beginning after the date of the
enactment of this Act, shall report to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives--
(1) whether such retention credit had a meaningful impact
on retention as compared with other currently existing and
previous subsidized employment programs; and
(2) whether such retention credit was easily understood by
employers and had an impact on hiring decisions in addition to
any subsidy received under title XIII of the Social Security
Act.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5. CONFORMING AMENDMENTS.
(a) TANF.--
(1) State plan.--Section 402 (42 U.S.C. 602) is amended--
(A) in subsection (a)(1)--
(i) in subparagraph (A)(iii), by inserting
``or employment services, training and other
services and activities, and supportive
services provided under the State program
funded under title XIII'' before the period;
and
(ii) in subparagraph (B)--
(I) in clause (iv), by inserting
``, unless the parent or caretaker is
participating in the State program
funded under title XIII'' before the
period; and
(II) by adding at the end the
following:
``(vi) The document shall indicate
whether the State elects to carry out a
State program to provide employment
services, training and other services
and activities, and supportive services
under title XIII.''; and
(B) by adding at the end the following:
``(d) State Option To Submit Plan That Aligns With the State Plan
Under Title XIII.--A State may elect to submit the State plan required
under this section at the same time and in the same manner, and to
apply for the same period, as the State plan required under section
1302.''.
(2) Participation in the state employment, training, and
supportive services program under title xiii-a deemed to be
meeting work participation requirements.--Section 407(c)(2) (42
U.S.C. 607(c)(2)) is amended by adding at the end the
following:
``(E) Participation in the state employment,
training, and supportive services program under title
xiii-a deemed to be meeting work participation
requirements.--For purposes of determining monthly
participation rates under paragraphs (1)(B)(i) and
(2)(B) of subsection (b), the following individuals are
deemed to be engaged in work for a month:
``(i) Recipients.--Any recipient who is
participating in the State employment,
training, and supportive services program under
title XIII (for any number of hours per week
during the month) and is receiving assistance
under the State program funded under this part
or under any State program funded with
qualified State expenditures (as defined in
section 409(a)(7)(B)(i)).
``(ii) Individuals who would otherwise be
recipients.--Any individual who is
participating in the State employment,
training, and supportive services program under
title XIII (for any number of hours per week
during the month) and would be a recipient of
assistance under the State program funded under
this part or under any State program funded
with qualified State expenditures (as defined
in section 409(a)(7)(B)(i)) but for the
individual's participation in the State
employment, training and supportive services
program under title XIII.''.
(3) Tribal programs.--Section 412(b) (42 U.S.C. 612(b)) is
amended by adding at the end the following:
``(4) Option to submit plan that aligns with the plan under
title xiii.--An Indian tribe or tribal consortium may elect to
submit a tribal family assistance plan required under this
section at the same time and in the same manner, and to apply
for the same period, as the plan required under section
1307.''.
(b) Title XI.--Section 1101(a)(1) of such Act (42 U.S.C.
1301(a)(1)) is amended by striking ``title XX'' and inserting ``titles
XIII and XX''.
(c) Internal Revenue Code.--Section 51(c)(2)(B) of the Internal
Revenue Code of 1986 is amended by striking ``section 482(e)'' and
inserting ``title XIII''.
(d) Table of Contents for Title XIII.--Title XIII, as added by
section 3(a), is amended by inserting the following before section
1301:
``TITLE XIII--REEMPLOYMENT AND OTHER JOB-RELATED ASSISTANCE AND
BENEFITS
``Sec. 1301. Purpose; definitions; administration.
``Sec. 1302. State plan requirements.
``Sec. 1303. Use of funds.
``Sec. 1304. Payments to States.
``Sec. 1305. Other program requirements.
``Sec. 1306. Reports; technical assistance; research; audit
requirement.
``Sec. 1307. Direct funding and administration for programs operated by
Indian tribes.
``Sec. 1308. Direct funding and administration for programs operated by
local governments.
``Sec. 1309. Grants to nonprofit organizations.''.
SEC. 6. EFFECTIVE DATE; REGULATIONS.
(a) Effective Date.--Except as provided in section 4(c), the
amendments made by this Act shall take effect on January 1, 2023.
(b) Option To Accelerate Funding.--
(1) In general.--If the Secretary of Health and Human
Services receives from a State, Indian tribe, or unit of local
government, a written notice, in such form and manner and
containing such information as the Secretary shall require,
that the State, Indian tribe, or unit of local government is
operating, or wishes to operate, an employment assistance
program, then, during the period beginning on the first day of
the first fiscal quarter that begins on or after the date that
the Secretary receives such notice and ending on December 31,
2022, the Secretary shall make payments to the State, Indian
tribe, or unit of local government under paragraph (3).
(2) Definitions.--In this subsection:
(A) Employment assistance program.--The term
``employment assistance program'' means a program
operated by a State, Indian tribe, or local government
that provides qualified program assistance, including a
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 401 et seq.) or any other
State, tribal, or local program financed with Federal
funds.
(B) Qualified program assistance.--The term
``qualified program assistance'' means employment
services, training and other services and activities,
or supportive services (as such terms are defined in
section 1301(b) of the Social Security Act, as added by
section 3), including any such services designed to
reemploy individuals who are unemployed or
underemployed for reasons related to COVID-19, but
shall not include any employment services, training and
other services and activities or supportive services
that cannot be provided in a manner that is safe for
both program administrators and participants due to a
COVID-19 outbreak.
(3) Payments.--
(A) In general.--Subject to subparagraph (B), the
Secretary shall pay to any State, Indian tribe, or
local government that has a notice in effect under
paragraph (1) for a fiscal quarter with respect to an
employment assistance program, an amount equal to the
amount that such State, tribe, or local government
would receive under title XIII of the Social Security
Act (as added by section 3) if--
(i) such title were in effect with respect
to such State, tribe, or local government;
(ii) the State, tribe, or local government
had a plan that met all requirements of such
title and was approved under such title for
such fiscal quarter, and the amounts expended
by the State, tribe, or local government on
qualified program assistance under such
program, were amounts expended by the State,
tribe, or local government to provide such
assistance under such plan;
(iii) the requirements of sections 1303,
1304(c), 1305, and 1306 of such title did not
apply; and
(iv) the Federal medical assistance
percentage for the State, Indian tribe or
tribal consortium, or local government were 100
percent.
(B) Limitations.--
(i) No duplicate funding.--For purposes of
subparagraph (A), in determining the amounts
expended by a State, tribe, or local government
under an employment assistance program to
provide qualified program assistance, the total
amount of State expenditures on such assistance
shall be reduced by the amount of Federal funds
(other than funds paid under this subsection)
that have been paid or that are expected to be
paid to the State, tribe, or local government
with respect to such assistance.
(ii) No funding for administrative expenses
unrelated to qualified program assistance.--No
payment shall be made to a State, Indian tribe,
or local government under this subsection for
administrative expenses of an employment
assistance program that are not attributable to
the administration of qualified program
assistance.
(c) Regulations.--The Secretary of Health and Human Services, in
consultation with the Secretary of Labor as appropriate, shall--
(1) not later than 30 days after the date of enactment of
this Act, issue guidance to States on how to seek accelerated
funding under subsection (b);
(2) not later than 9 months after the date of the enactment
of this Act, issue proposed regulations for the purpose of
implementing title XIII of the Social Security Act (as added by
section 2 of this Act), including regulations establishing
uniform data collection requirements; and
(3) not later than 18 months after the date of enactment of
this Act, publish final regulations for such purpose.
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