[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4490 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4490
To direct the Secretary of Labor to award formula and competitive
grants for layoff aversion activities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 16, 2021
Mr. Smith of Washington introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To direct the Secretary of Labor to award formula and competitive
grants for layoff aversion activities, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Emergency Economic and Workforce
System Resiliency Act''.
SEC. 2. DEFINITIONS.
(a) In General.--Except as otherwise provided, the terms used in
this Act have the meanings given the terms in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
(b) Employee Ownership Trust.--The term ``employee ownership
trust'' is an indirect form of employee ownership in which a trust
holds a controlling stake in a company on behalf of all its employees
and provides an incentive for owners to sell a controlling stake in
their business.
(c) Employee Stock Ownership Plan.--The term ``employee stock
ownership plan'' has the meaning given the term in section 4975(e)(7)
of the Internal Revenue Code of 1986.
(d) Justice Impacted.--The term ``justice impacted'' means an
individual that has been arrested or convicted of a crime, including an
individual who is currently or formerly incarcerated.
(e) Worker Cooperative.--The term ``worker cooperative'' means a
values-driven business that puts worker and community benefit at the
core of its purpose, and in which--
(1) workers own the business and they participate in its
financial success on the basis of their labor contribution to
the cooperative; and
(2) workers have representation on and vote for the board
of directors, adhering to the principle of one worker, one
vote.
TITLE I--SUPPLEMENTAL FORMULA GRANTS FOR EMERGENCY LAYOFF AVERSION AND
WORKFORCE TRAINING ACTIVITIES
SEC. 101. FORMULA GRANTS.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Labor shall award 5-year grants
in accordance with subsection (b), to States to support efforts to--
(1) reduce and prevent unemployment; and
(2) limit the impact of disruptions (economic, pandemic-
related, transitions of retiring business owners, automation-
related, trade-related, or other forces) on labor markets.
(b) State Allotments.--
(1) In general.--From the amount appropriated under section
105, the Secretary shall--
(A) reserve not more than \1/4\ of 1 percent of
such amount to provide assistance to the outlying
areas; and
(B) make allotments to the States under paragraph
(2) to--
(i) make allocations under subsection (c);
or
(ii) carry out the State activities
described in subsection (d).
(2) Allotments.--The Secretary shall make an allotment in
accordance with section 132(b)(1)(B)(ii) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3172(b)(1)(B)(ii)) to
each State that submits an State plan under section 103.
(c) Within State Allocations.--The Governor of a State shall use
not less than 60 percent of the allotment received under subsection
(b)(2)--
(1) to allocate funds to each local area in the State in
accordance with section 133(b)(2)(A)(i) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3173(b)(2)(A)(i)) to
carry out the activities under section 103, in accordance with
the State plan under section 102, and in consultation with the
State board; and
(2) of which not more than 10 percent may be used for
administrative purposes.
(d) State Activities.--The Governor of a State shall use the
remaining amount of the allotment received under subsection (b)(2)--
(1) to carry out the activities under section 103 in
accordance with the State plan under section 102, and in
consultation with the State board; and
(2) of which not more than 10 percent may be used for
administrative purposes.
SEC. 102. STATE APPLICATIONS.
(a) In General.--
(1) Submission by states.--To receive an allocation under
section 101, a State shall submit a State Workforce Economic
Recovery plan (in this Act referred to as a ``State plan''),
developed by or in consultation with the State board and
approved by the Governor, to the Secretary at such time and in
such manner as the Secretary may reasonably require, and
containing the information described in subsection (b).
(2) Secretarial response.--Upon receipt of a State plan,
the Secretary shall--
(A) approve the State plan; or
(B) provide the State--
(i) with an explanation as to how the State
plan does not meet the goals and requirements
of the grant program under this title; and
(ii) with an opportunity to submit an
updated State plan or to appeal the decision of
the Secretary.
(3) Resubmission.--
(A) Required state plan updates.--At the end of the
first 2-year period of the grant, a State shall--
(i) update the State plan to reflect
changes in the labor market and other economic
conditions affecting the implementation of the
activities funded under the grant; and
(ii) submit to the Secretary such updated
State plan modifications to the State plan.
(B) Authorized state plan updates.--A State may
submit to the Secretary any necessary updates to the
State plan at any point during the grant period.
(b) Contents.--A State plan shall include the following:
(1) A description of how the State plan is aligned with,
enhances, expands, or fills service gaps to the plan submitted
by the State under section 102 or 103 of the Workforce
Innovation and Opportunity Act 29 U.S.C. 3112, 313).
(2) A State strategic vision, including --
(A) a summary of the State's goals--
(i) for preparing an educated and skilled
workforce for meeting the skilled workforce
needs of employers (particularly in existing
and emerging in-demand industry sectors and
occupations), an identification of the median
income for in-demand sectors and occupations,
and how the State will work to ensure worker
access to jobs and industries with higher
median wages, opportunities for workers to
share in the ownership or profits of their
companies, and high quality work environments;
(ii) for ensuring equitable access to
quality jobs for all segments of the State's
population, and the plan for promoting quality
career pathways that lead to high quality jobs
for displaced or incumbent workers; and
(iii) for offering retiring business owners
or business owners planning to close their
businesses opportunities to plan that
transition in order to ensure the continuity of
high quality jobs in the local economy; and
(B) the primary strategies that will be used to
achieve the State vision and goals, the proposed
service delivery infrastructure, and the timeline for
achieving such goals.
(3) A description of the problems the State's proposed
activities aim to solve, and the reason for prioritizing
selected problem areas.
(4) A description of how the State will build capacity
within the State's public higher education system (including 2-
year and 4-year institutions) to support layoff aversion
activities, including by demonstrating how such system will be
utilized and expanded or enhanced to support new labor force
needs.
(5) A description of how the State will collaborate with
other relevant State and local government entities, non-profit
entities, and other relevant groups identified by the State to
carry out activities under section 103, including the roles and
responsibilities of each entity that will participate in the
development, implementation, evaluation, and oversight of each
component of the State plan.
(6) An employer engagement strategy that describes how
employers will be targeted and recruited to participate, and
any expectations for employer participation, such as cash or
in-kind contributions, wage release time for employees,
provision of on-site child care or financial support for child
care, employee participation incentives, work-based learning
opportunities, or loaned instructors.
(7) A description of the data sources (commercial or
public) the State will use to identify growing, stable, and
declining businesses and industry sectors or occupations.
(8) A description of how the State will prioritize
individuals with barriers to employment, people of color,
youth, immigrants, justice impacted adults, and individuals
experiencing pandemic-related job displacement.
(9) A description of how the State will prioritize access
to high-quality jobs by establishing the standards of job
quality that an employer is required to meet as a condition of
receiving funds under this title, which--
(A) are consistent with the minimum standards
established by the Interagency Task Force under section
304, and a description of such standards; and
(B) include a defined livable wage for the State or
by subregion of the State.
(10) Any other requirements as determined by the Secretary.
SEC. 103. USES OF FUNDS.
(a) In General.--A State may use, or ensure that a local area uses,
the funds awarded under this title for any of the following purposes:
(1) Training and education opportunities.
(2) Adult basic education.
(3) Incumbent worker training.
(4) Dislocated worker training.
(5) On-the-job training.
(6) Job seeking assistance.
(7) Layoff aversion, in advance of the notice required
under the Worker Adjustment and Retraining Notification Act (29
U.S.C. 2101 et seq.), which may include assisting employers
with product diversification, market expansion, and improving
productivity.
(8) Partnering with a community development financial
institution or other similar entity to provide entrepreneurial
development and coaching, low-interest loans with affordable
loan terms, or other assistance with starting up a new business
or preserving a business in financial distress.
(9) Developing career pathway opportunities (including
through industry or sector partnerships) to in-demand high
quality jobs in coordination with employers, community-based
organizations, and State higher education systems, including
the State registered apprenticeship system.
(10) Related instruction for pre-apprenticeship, registered
apprenticeship, or other work-based training in an occupational
pathway.
(11) Funding existing or establishing new State or
nonprofit employee ownership resource centers or cooperative
development centers that offer educational and technical
assistance to retiring business owners, new entrepreneurs, or
worker groups for the purpose of using broad-based employee
share ownership in the form of employee stock ownership plans,
worker cooperatives, or employee ownership trusts, to allow
worker groups to buy out retiring business owners.
(12) Capital for revolving loan funds managed by State or
non-profit entities that offer loans to allow worker groups to
buy out retiring business owners, worker groups, or
entrepreneurs looking to save a declining firm through
employee-ownership, or workers or using broad-based employee
share ownership in the form of employee stock ownership plans,
worker cooperatives, or employee ownership trusts.
(13) Providing financial or other assistance to
participants, which will not reduce unemployment benefits, or
count towards income limits for other Federal or State means-
tested programs.
(b) Limitations.--No State or local area may use funds awarded
under this title to--
(1) recruit businesses, employees, or customers from
another State;
(2) assist employers that do not meet the standards of job
quality under section 102(b)(9); or
(3) assist proprietary institutions of higher education (as
defined in section 102(b) of the Higher Education Act of 1965
(20 U.S.C. 1002(b)).
SEC. 104. REPORTING REQUIREMENTS; NATIONAL REPOSITORY.
(a) Reporting Requirements.--
(1) States.--Each State that receives a grant under this
title shall submit to the Secretary an annual report that, to
the extent practicable integrates reporting requirements under
the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et
seq.) and includes--
(A) an evaluation--
(i) of the performance of the activities
funded under the grant--
(I) with respect to indicators of
performance under section 116(b)(2)(A)
of the Workforce Innovation and
Opportunity Act (29 U.S.C.
3141(b)(2)(A)); and
(II) with respect to meeting the
goals of the State plan;
(ii) of the satisfaction of each employer
receiving assistance under this title, on the
basis of the satisfaction measurement framework
as determined by the Interagency Task Force
under section 301; and
(B) information on whether an employer that
received assistance under the grant provided health
benefits, paid sick leave, and paid family and medical
leave to their employees.
(2) Secretary.--The Secretary shall submit a report to
Congress on an annual basis containing a summary of the reports
received under paragraph (1), including promising emerging
practices with respect to layoff aversion and job creation.
(b) National Repository.--The Secretary shall, jointly with the
Interagency Task Force established under title III, establish on a
publicly accessible website, a national repository--
(1) of data-driven, promising practices with respect to
layoff aversion and job creation based on the evaluations
described in subsection (a)(1); and
(2) of recommendations for replicating and scaling up such
practices.
SEC. 105. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $250,000,000 for fiscal
year 2022 and each of the 4 succeeding fiscal years.
TITLE II--COMPETITIVE GRANTS FOR INNOVATIVE LAYOFF AVERSION MODELS
SEC. 201. COMPETITIVE GRANTS.
(a) Grants Authorized.--
(1) In general.--The Secretary shall award planning grants
and implementation grants, on a competitive basis and in
accordance with paragraph (2), to States for innovative layoff
aversion models.
(2) Grant cycles.--In awarding grants under this title, the
Secretary shall award--
(A) a first cycle of grants that shall include--
(i) planning grants, which shall be used
during the 18-month period beginning on the
date on which the grants are awarded; and
(ii) implementation grants, which shall be
used during the 5-year period beginning on the
date on which the grants are awarded; and
(B) a second cycle of grants that shall be new
implementation grants--
(i) to States that used planning grants in
accordance with subparagraph (A)(i); and
(ii) that shall be used during the 3.5-year
period beginning on the date on which the
grants are awarded.
(b) Planning Grants.--
(1) Applications.--
(A) In general.--To receive a planning grant under
this title, a State shall submit an application to the
Secretary, at such time and in such manner as the
Secretary may require, which shall include the
information described in subparagraph (B).
(B) Contents.--Each application shall include the
following:
(i) The need for a planning grant, and
whether the State plans to submit an
application for an implementation grant.
(ii) A description of the planning
activities the State will carry out with the
grant.
(iii) A description of each entity with
which the State will coordinate to carry out
such activities.
(iv) A description of the data sources
(commercial or public) that the State plans to
use to--
(I) investigate in-demand,
stagnant, and declining industry
sectors or occupations and employers in
the State;
(II) determine the needs of
underserved and underrepresented
populations to obtain and retain high
quality jobs; and
(III) identify strategies and
approaches to job creation and lay-off
aversion.
(v) A list of individuals and
organizations, including roles and
responsibilities, of each member of the State
grantee advisory council under title III.
(vi) Potential State administrative
policies or other conditions that may support
or impede implementation of new approaches to
job creation and lay-off aversion.
(2) Grant amount.--A planning grant under this title may
not be less than $75,000, and may not exceed $350,000 for a
State.
(3) Uses of funds.--For a period that may not exceed 18
months after receipt of such grant, a State receiving a
planning grant shall use such grant to carry out at least one
of the following:
(A) To research, develop a proof of concept, or
pilot lay-off aversion and job creation strategies
prior to submission of an implementation grant
application under subsection (c), if the State plans to
apply for such a grant.
(B) To help support the modification or removal of
State administrative policy barriers to implementation
of job creation and lay-off aversion interventions.
(c) Implementation Grants.--
(1) Application process.--
(A) In general.--To receive an implementation grant
under this title, a State shall submit an application
to the Secretary at such time, in such manner, and
containing the information described in subparagraph
(B).
(B) Contents.--Subject to subparagraph (C), each
application shall include the following:
(i) A description of the interventions that
will be carried out including a minimum of one
layoff aversion intervention aimed at a
particular industry sector or occupation or
segment of the workforce, or that is workforce
system-wide, and the plan for deploying such
interventions.
(ii) Projected performance goals for such
interventions, and a timeline for achieving
such goals.
(iii) An analysis of the need for the
grant, the particular problems that will be
addressed through such interventions, and the
reasons for prioritizing such interventions.
(iv) A description of efforts already
underway in the State and that have been
previously implemented to create jobs or avert
lay-offs, and a description of the success
elements and lessons learned that have informed
each type of intervention that will be funded
under the grant.
(v) An identification of the State agency
for fiscal and contract administration, and
description of its management capacity.
(vi) A description of how the State will
collaborate with relevant State and local
government agencies, non-profit entities,
business and employer partners, and any other
groups determined relevant by the State, and
the roles and responsibilities of each such
entity, which may include small business
development entities, economic development
entities, job training entities, unemployment
compensation entities, institutions of higher
education (including 2-year public institutions
of higher education), labor unions, business
associations, community-based organizations,
and American Job Centers and one-stop centers.
(vii) How the State will leverage State,
local, and private resources from partnering
entities, including the entities described in
clause (vi).
(viii) A description of how the State will
identify and prioritize individual workers at-
risk of layoffs and employers or industry
sectors with the most significant risks for
decline and individual workers at risk of
layoffs.
(ix) A list of in-demand industry sectors
or occupations that will be the target of the
interventions, and the corresponding recognized
postsecondary credentials necessary for workers
to obtain jobs in such sectors or occupations,
and how underrepresented populations and
individuals with education and employment
barriers will be supported to succeed in such
sectors or occupations.
(x) A description of the recognized
postsecondary credentials necessary for workers
to obtain in-demand high quality jobs within
targeted sectors or occupations, the
corresponding education and training resources
currently available to be leveraged, new
education and training resources that must be
developed, and the role of employers in helping
to create the appropriate and adequate pipeline
of workers with those credentials.
(xi) A list of individuals and
organizations, including roles and
responsibilities, of each member of the State
advisory council under title III.
(xii) A description of how the State will
prioritize access to high-quality jobs by
establishing the standards of job quality that
an employer is required to meet as a condition
of receiving funds under this title, which are
consistent with the minimum standards
established by the Interagency Task Force under
section 304, and a description of such
standards.
(xiii) Any other information required by
the Secretary.
(C) Simplified application process.--The Secretary
shall establish a simplified application process for
States that have received a planning grant under this
title who are seeking to apply for an implementation
grant.
(2) Grant amount.--
(A) In general.--Subject to subparagraph (B), an
implementation grant under this title shall be made to
a State in an amount that is not less than $5,000,000
and not more than $20,000,000.
(B) Additional funds.--A State that is awarded an
implementation grant under this section for piloting
the following models may receive up to $5,000,000 in
additional funds:
(i) Establishing a State or local public
holding company that invests and acquires
ownership in distressed businesses to allow
them to continue operating or reopen later.
(ii) Piloting a model that seeks to improve
individual economic security through every
stage of career life, particularly for workers
who are left out of traditional unemployment
insurance, benefits, or worker training and
retraining programs such as independent
contractors, gig-workers, business owners, and
individuals who are caring for dependents or
otherwise not working outside of the home. This
may include efforts to provide broader lifelong
access to income support, access to pensions or
retirement savings accounts, health care
benefits, paid family leave, medical leave, and
other fringe benefits.
(iii) Establishing sector-based or labor-
management governance boards with shared
oversight over a worker support fund. Worker
support funds may be used to provide ongoing
training and retraining opportunities, income
support during unemployment, health insurance
or other health and wellness benefits, flexible
or compensation during alternative or flexible
work schedules, paid sick leave or paid family
leave, or other benefits as determined by the
joint sector-based or worker-management
governing body.
(3) Priority.--In awarding implementation grants under this
Act, the Secretary, in consultation with the Interagency Task
Force, shall prioritize the following States:
(A) States that demonstrate the greatest need.
(B) States that have the most thorough plans for
deploying interventions.
(C) States that prioritize individuals with
barriers to employment, people of color, immigrants,
youth, justice impacted individuals, or people
experiencing pandemic-related job displacement.
(D) States that are committed to forging career
pathways with employers that provide high quality jobs
(as defined by the State in section 102(b)(10)), or in
a case in which the State does not submit a State plan
under title I, as defined in accordance with the
requirements of section 102(b)(10).
(E) States that have the most thorough, actionable
and achievable plans for deploying interventions, and
present reliable and relevant evidence for the
interventions chosen.
(d) Reporting Requirements.--
(1) States.--Each State shall submit annual performance
reports to the Secretary that demonstrate how the grant funded
activities are performing with respect to indicators of
performance under section 116(b)(2)(A) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)), and
the business satisfaction measures established by Interagency
Task Force established under title IV.
(2) Secretary.--The Secretary shall submit to Congress, a
report --
(A) on an annual basis, containing a summary of the
reports submitted under paragraph (1); and
(B) at the conclusion of each implementation grant
period, the results of a rigorous, independent
evaluation of the grants awarded under this title.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this title, $250,000,000--
(1) of which up to 70 percent may be used to award the
first round of grants under subsection (a)(2)(A); and
(2) of which any remaining funds shall be used to award a
second round of grants under subsection (a)(2)(B).
TITLE III--STATE GRANTEE ADVISORY COUNSEL
SEC. 301. STATE GRANTEE ADVISOR COUNSEL.
(a) In General.--Each State that receives a grant under title I or
title II shall establish a State grantee advisory counsel.
(b) Membership and Duties.--
(1) In general.--The State board shall serve as the State
grantee advisory council and shall oversee and assess the
performance of the activities carried out under the grant
received under title I or II.
(2) Other entities.--Representatives of the following
entities shall be invited to serve as a member of the State
grantee advisory council, if not a member of the State board:
(A) The State workforce system.
(B) The State unemployment compensation agency.
(C) The State higher education system, including 2-
year public institutions of higher education.
(D) The State, local, or regional chambers of
commerce.
(E) Representatives of employer organizations.
(F) Representatives of labor organizations or joint
labor-management organizations.
(G) Community-based organizations.
(H) An established State-based employee ownership
center that offers education and technical assistance
to retiring business owners, worker groups,
entrepreneurs, or declining firms, for the purpose of
using broad-based employee share ownership in the form
of employee stock ownership plans, worker cooperatives,
or employee ownership trusts, to allow worker groups to
buy out businesses.
(I) Any other member relevant to the activities
carried out by the State under the grant awarded under
title I or II.
TITLE IV--INTERAGENCY TASK FORCE
SEC. 401. PURPOSES.
Not later than 6 months after the date of enactment of this Act,
the Secretaries of Commerce and Labor (in this title referred to as the
``Secretaries'') shall, jointly, assemble a Federal interagency task
force to--
(1) identify any challenges that a State or local area
receiving funds under this Act has had to overcome; and
(2) collect and disseminate best practices, and develop and
recommend policies at the Federal level to support ongoing
efforts to limit the impact of market disruptions on workers,
employers, and industry sectors or occupations, particularly
with respect to individuals with barriers to employment, people
of color, youth, immigrants, justice impacted individuals, and
people experiencing pandemic-related job displacement;
(3) establish a framework for a State receiving a grant
under this Act to measure employer satisfaction with respect to
activities funded under this Act; and
(4) establish the minimum standards of job quality that an
employer is required to meet as a condition of receiving
assistance under this Act, which shall consider the following:
(A) Whether the employer provides wages at or above
the minimum living wage standards for States and
localities determined by research centers at public or
private non-profit institutions of higher education or
think tanks. Living wage models used by the Interagency
Task Force must use a market-based approach that
utilizes geographically specific expenditure data
related to a household's expected minimum food, child
care, health insurance, housing, transportation, and
other basic needs costs.
(B) Whether the employer provides access to ongoing
training and advancement opportunities.
(C) Whether the employer provides paid sick days,
paid family leave, or paid medical leave or short-term
disability leave.
(D) Whether the employer provides adequate hours
and predictable schedules.
SEC. 402. COMPOSITION.
The Secretaries shall appoint the following individuals to serve as
members of the Task Force:
(1) The Secretary of Labor.
(2) The head of the Employment and Training Administration
of the Department of Labor.
(3) The Administrator of the Economic Development
Administration of the Department of Commerce.
(4) The Administrator of the Small Business Administration.
(5) The Director of the Community Development Financial
Institutions Fund.
(6) The Administrator of the Office of Career, Technical,
and Adult Education of the Department of Education.
(7) The Administrator of the Office of Postsecondary
Education at the Department of Education.
(8) A representative from the Employment and Training
Administration.
SEC. 403. MEETINGS.
The Interagency Task Force shall meet at least on an annual basis
until the date on which the Task Force is terminated to evaluate the
activities being carried out by each State receiving a grant grantees
under this Act and impact of those activities on employers, incumbent
workers, and job-seekers, including the effectiveness of such
activities--
(1) in keeping workers employed in high quality jobs;
(2) helping workers transition smoothly to high quality in-
demand jobs during economic disruption;
(3) improving firm resiliency during economic disruption;
and
(4) expanding the number of jobs available in high-quality
in-demand industry sectors and occupations.
SEC. 404. REPORT.
Not later than 1 year after the funds awarded under the final grant
under this Act are expended, the Interagency Task Force shall submit a
report to Congress detailing recommendations for a Federal program
based on the most promising practices carried out with the funds
awarded under titles I and II.
SEC. 405. SUNSET.
The Interagency Task Force shall terminate after submitting its
final report under section 404.
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