[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2438 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2438
To assist employers providing employment under special certificates
issued under section 14(c) of the Fair Labor Standards Act of 1938 in
transforming their business and program models to models that support
people with disabilities through competitive integrated employment, to
phase out the use of such special certificates, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 24, 2025
Mr. Van Hollen (for himself, Mr. Daines, Mrs. Gillibrand, and Mrs.
Blackburn) introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To assist employers providing employment under special certificates
issued under section 14(c) of the Fair Labor Standards Act of 1938 in
transforming their business and program models to models that support
people with disabilities through competitive integrated employment, to
phase out the use of such special certificates, 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 ``Transformation to Competitive
Integrated Employment Act''.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purposes.
TITLE I--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT
PROGRAMS
Sec. 101. Program authorized.
Sec. 102. State grant program.
Sec. 103. Certificate holder grant program.
TITLE II--PHASE OUT OF SPECIAL CERTIFICATES UNDER SECTION 14(c) OF THE
FAIR LABOR STANDARDS ACT OF 1938
Sec. 201. Transition to fair wages for people with disabilities.
Sec. 202. Prohibition on new special certificates; sunset.
TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION
Sec. 301. Technical Assistance and dissemination.
TITLE IV--REPORTING AND EVALUATION
Sec. 401. Impact evaluation and reporting.
Sec. 402. Wage and hour reports.
TITLE V--GENERAL PROVISIONS
Sec. 501. Definitions.
Sec. 502. Authorization of appropriations.
SEC. 3. PURPOSES.
The purposes of this Act are to--
(1) assist employers with special certificates issued under
section 14(c) of the Fair Labor Standards Act of 1938 (29
U.S.C. 214(c)) to transform their business and program
operations to models that support people with disabilities to
find and retain work in competitive integrated employment;
(2) ensure people with disabilities, families of such
people, State and local governments, and other stakeholders are
involved in the transformations described in paragraph (1);
(3) ensure people employed in programs using such special
certificates transition to competitive integrated employment
positions and, as needed, to integrated services that support
them in their homes and in community settings;
(4) identify models and processes for shifting business and
program models from such special certificates to competitive
integrated employment models and integrated community
participation and wraparound services, and to share that
information with other such special certificate holders, State
and local entities, and other service providers for people with
disabilities; and
(5) support States and local governments as they revise and
implement their Olmstead plans and local plans, respectively,
in order to improve competitive integrated employment outcomes
for people with disabilities through all State workforce
development systems.
TITLE I--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT
PROGRAMS
SEC. 101. PROGRAM AUTHORIZED.
From the amounts appropriated to carry out this title, the
Secretary of Labor shall award grants under sections 102 and 103, on a
competitive basis, to States and eligible entities to assist employers
who were issued special certificates in transforming their business and
program models from providing employment using such special
certificates to business and program models that employ and support
people with disabilities by--
(1) providing competitive integrated employment, including
by compensating all employees of the employer at a rate that
is--
(A) not less than the higher of the rate specified
in section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) or the rate specified in the
applicable State or local minimum wage law; and
(B) not less than the customary rate paid by the
employer for the same or similar work performed by
other employees who are not people with disabilities,
and who are similarly situated in similar occupations
by the same employer and who have similar training,
experience, and skills;
(2) assisting people with disabilities who were employed by
the employer in finding and retaining work in competitive
integrated employment, which work may be with the employer
after such transformation or in another competitive integrated
employment setting;
(3) providing integrated community participation and
wraparound services for people with disabilities; and
(4) ensuring all such services and other non-employment
services offered by the employer comply with the requirements
for home and community-based services under the final rule of
the Department of Health and Human Services entitled ``Medicaid
Program; State Plan Home and Community-Based Services, 5-Year
Period for Waivers, Provider Payment Reassignment, and Home and
Community-Based Setting Requirements for Community First Choice
and Home and Community-Based Services (HCBS) Waivers'' (79 Fed.
Reg. 2948 (January 16, 2014)), or a successor rule.
SEC. 102. STATE GRANT PROGRAM.
(a) Application.--
(1) In general.--To be eligible to receive a grant under
this section, a State shall submit an application to the
Secretary at such time, in such manner, and including such
information as the Secretary may reasonably require.
(2) Contents.--Each application submitted under paragraph
(1) shall include--
(A) a description of the status of the employers in
the State providing employment using special
certificates, including--
(i) the number of employers in the State
using special certificates to employ and pay
people with disabilities;
(ii) the number of employers described in
clause (i) that also employ people with
disabilities in competitive integrated
employment, which shall include employers
providing such employment in combination with
integrated services;
(iii) the number of employees employed
under a special certificate, disaggregated by--
(I) employer; and
(II) demographic characteristics,
including gender, race, ethnicity, and
type of disability, unless indicating
such characteristics would disclose
personal identifying information;
(iv) the average, median, minimum, and
maximum number of hours such employees work per
week, disaggregated by employer, and reported
for the State as a whole; and
(v) the average, median, minimum, and
maximum hourly wage for such employees,
disaggregated by employer, and reported for the
State as a whole;
(B) a description of the activities of the State
with respect to competitive integrated employment for
people with disabilities, including, as applicable--
(i) a copy of the State plan for carrying
out the Employment First initiative;
(ii) a copy of the Olmstead plan of the
State;
(iii) a description of activities related
to the development and promotion of ABLE
accounts; and
(iv) a description of the medical
assistance provided by the State through a
Medicaid buy-in eligibility pathway under
subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)), including any
premiums or other cost sharing imposed on
individuals who enroll in the State Medicaid
program through such a pathway;
(C) a description of activities to be funded under
the grant, and the goals of such activities,
including--
(i) the process to be used to identify each
employer in the State that will transform its
business and program models from employing
people with disabilities using special
certificates to employing people with
disabilities in competitive integrated
employment settings or settings involving a
combination of competitive integrated
employment and integrated services;
(ii) the number of such employers in the
State that will carry out a transformation
described in clause (i);
(iii) the service delivery infrastructure
that will be implemented in the State to
support people with disabilities who have been
employed under special certificates through
such a transformation, including providing
enhanced integrated services to support people
with the most significant disabilities;
(iv) a description of the process to
recruit and engage Federal, State, and local
governments and nonprofit and private employers
to hire people with disabilities into
competitive integrated employment who have been
employed under special certificates;
(v) the competitive integrated employment
and integrated services that will be
implemented in the State to support such
people;
(vi) a timeline for assisting employers
that operate in the State in phasing out
employment using special certificates, which
shall not extend past the date on which the
legal effect of such certificates expires under
section 14(c)(7) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 214(c)(7)), as added by
title II;
(vii) a timeline for the expansion of
employers that will provide competitive
integrated employment, or a combination of
competitive integrated employment and
integrated services, to people with
disabilities who have been employed by such
employers under special certificates;
(viii) a description of the expanded
competitive integrated employment and
integrated services to be provided to such
people as a result of transformations described
in clause (i); and
(ix) a description of the process to be
used to engage stakeholders in such
transformations;
(D) a description of how the activities under the
grant will coordinate and align Federal, State, and
local programs, agencies, and funding in the
transformations described in subparagraph (C)(i);
(E) a description of the State's evaluation plan to
determine the social and economic impact of the grant,
including the impact (as measured throughout the
transformation and the 2-year period after the State
has assisted employers in phasing out employment using
special certificates) on--
(i) the employment status of people with
disabilities in the State, including the number
of hours worked, average wages, and job
satisfaction, of such people; and
(ii) changes in provider capacity to
support competitive integrated employment and
integrated services;
(F) assurances that--
(i) the activities carried out under the
grant will result in each employer in the State
that provides employment using special
certificates on the date of enactment of this
Act transforming as described in subparagraph
(C)(i);
(ii) people with the most significant
disabilities, including intellectual and
developmental disabilities, who will be
affected by such a transformation will be given
priority in receiving the necessary competitive
integrated employment supports and integrated
services to succeed during and after such a
transformation;
(iii) each individual in the State who is
employed under a special certificate will, as a
result of such a transformation, be given an
opportunity to be employed in competitive
integrated employment;
(iv) at a minimum, the State agencies
responsible for developmental disability
services, Medicaid, education, vocational
rehabilitation, mental health services,
transportation, and workforce development agree
to be partners in the goals of the grant;
(v) until the date that is 2 years after
the legal effect of special certificates
expires under section 14(c)(7) of the Fair
Labor Standards Act of 1938 (29 U.S.C.
214(c)(7)), as added by title II, the State
will comply with requirements of the Secretary
with respect to the collection of data, and
will require employers providing employment
under special certificates in the State to
comply with such requirements;
(vi) the State will cooperate with the
evaluation under title IV by providing all data
required and allow the evaluation of activities
under the grant;
(vii) the State will establish an advisory
council described in paragraph (3) to monitor
and guide the process of transforming business
and program models of employers in the State as
described in subparagraph (C)(i);
(viii) the State will cooperate with the
nonprofit entity carrying out technical
assistance and dissemination activities under
title III;
(ix) all integrated services and non-
employment services offered by employers in the
State will comply with--
(I) the requirements for home and
community-based services under the
final rule of the Department of Health
and Human Services entitled ``Medicaid
Program; State Plan Home and Community-
Based Services, 5-Year Period for
Waivers, Provider Payment Reassignment,
and Home and Community-Based Setting
Requirements for Community First Choice
and Home and Community-Based Services
(HCBS) Waivers'' (79 Fed. Reg. 2948
(January 16, 2014)), or a successor
rule;
(II) the holding of the Olmstead
decision; and
(III) the Americans with
Disabilities Act of 1990 (42 U.S.C.
12101 et seq.); and
(x) the State will disseminate information
to all people with disabilities employed under
special certificates regarding the availability
of--
(I) ABLE accounts and other asset
developmental options for people with
disabilities;
(II) the Ticket to Work and Self
Sufficiency Program established under
section 1148 of the Social Security Act
(42 U.S.C. 1320b-19); and
(III) other resources related to
benefits counseling for people with
disabilities who wish to work or are
working in competitive integrated
employment settings; and
(G) such other information and assurances as the
Secretary may reasonably require.
(3) Members of the advisory council.--A State receiving a
grant under this section shall, for the purpose described in
paragraph (2)(F)(vii), establish an advisory council composed
of the following:
(A) People with disabilities (who shall comprise
not less than 25 percent of the members), including
such people with intellectual or developmental
disabilities who are or were employed under a special
certificate.
(B) A family member of a person with an
intellectual or developmental disability who is
employed under a special certificate.
(C) A family member of a person with an
intellectual or developmental disability who is
employed in competitive integrated employment.
(D) An employer providing competitive integrated
employment.
(E) An employer providing employment under special
certificates.
(F) A representative of a nonprofit agency or
organization specializing in competitive integrated
employment.
(G) A representative of the State developmental
disability agency.
(H) A representative of the State vocational
rehabilitation agency, as such term is used under the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
(I) A representative of an agency that is in the
State and described in paragraph (6) or (7) of section
8501 of title 41, United States Code.
(J) A representative of the State independent
living centers, as such term is used under the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
(K) A representative of the State Council on
Developmental Disabilities, as defined in section 102
of the Developmental Disabilities Assistance and Bill
of Rights Act of 2000 (42 U.S.C. 15002).
(L) A representative of one of the State University
Centers for Excellence in Developmental Disabilities
Education, Research, and Service, established under
subtitle D of title I of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (42 U.S.C.
15061 et seq.).
(M) A representative of the State protection and
advocacy system, as defined in section 102 of the
Developmental Disabilities Assistance and Bill of
Rights Act of 2000 (42 U.S.C. 15002).
(N) A representative of the State Medicaid office.
(O) Representatives of other State agencies and
disability organizations and other disability related
offices and groups with expertise in competitive
integrated employment.
(b) Geographic Diversity.--To the extent practicable, the Secretary
shall distribute grant funds under this section equitably among
geographic areas of the United States, and take into account rural and
urban diversity.
(c) Duration of Awards.--A grant under this section shall be
awarded for a period of 5 years.
(d) Limit on Award Number.--A State may only be awarded 1 grant
under this section.
(e) Amount of Awards.--A grant awarded under this section may not
be made in an amount that is less than $3,000,000, or more than
$15,000,000, for the 5-year grant period.
(f) Additional Funding for Supported Employment Services.--
(1) In general.--Title VI of the Rehabilitation Act of 1973
is amended--
(A) in section 603 (29 U.S.C. 795h)--
(i) in subsection (a), by adding at the end
the following:
``(3) References.--For purposes of this subsection, any
reference in this subsection to sums or amounts appropriated
shall not include the amounts appropriated under section
611(e).'';
(ii) in subsection (c)--
(I) by inserting ``or a grant under
section 611'' after ``allotment under
this title''; and
(II) by inserting ``or such grant''
after ``such allotment''; and
(iii) in subsection (d)--
(I) by inserting ``or a grant under
section 611'' after ``allotment under
this title''; and
(II) by inserting ``or such grant''
after ``such allotment'';
(B) in section 604(b)(2) (29 U.S.C. 795i(b)(2)), by
inserting ``(or made available through a grant awarded
under section 611)'' after ``allotted under this
title'';
(C) in section 610 (29 U.S.C. 795o)--
(i) by inserting ``, except for section
611,'' after ``this title'';
(ii) by striking ``and''; and
(iii) by inserting ``, and such sums as may
be necessary for each of fiscal years 2026
through 2035'' before the period at the end;
and
(D) by adding at the end the following:
``SEC. 611. ADDITIONAL FUNDING FOR CERTAIN STATES WITH COMPETITIVE
INTEGRATED EMPLOYMENT.
``(a) Grants.--From amounts appropriated under subsection (e), the
Secretary, in consultation with the Secretary of Labor, shall award a
grant under this section to each eligible State that submits an
application under subsection (c) for the purposes described in section
604.
``(b) Eligibility.--
``(1) In general.--A State is eligible for a grant under
this section for a fiscal year if the State--
``(A) is eligible for an allotment under section
603(a) for the fiscal year; and
``(B) has successfully completed a grant under
section 102 of the Transformation to Competitive
Integrated Employment Act during that fiscal year or
the preceding fiscal year, as determined under
paragraph (2).
``(2) Successfully completing a competitive integrated
employment grant.--A State has successfully completed a grant
under section 102 of the Transformation to Competitive
Integrated Employment Act if, at the conclusion of the 5-year
period of the grant, the Secretary of Labor determines the
State has complied with all requirements under such section for
such grant.
``(c) Application.--A State seeking a grant under this section
shall submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may reasonably
require, including information demonstrating the State has successfully
complied with the requirements under subsection (b)(2).
``(d) Awards.--
``(1) In general.--A grant to a State under this section
shall be awarded in an amount determined under paragraph (2)
for each of 5 fiscal years, except as provided under paragraph
(3).
``(2) Amount.--Subject to available appropriations under
subsection (e), the amount of a grant under this section to a
State for a fiscal year shall be equal to 25 percent of the
amount allotted to such State under subsection (a) of section
603 for the preceding fiscal year (excluding any additional
amounts allotted to the State under subsection (b) of such
section).
``(3) Continued compliance.--In the case that a State
receiving a grant under this section ceases compliance with
subsection (b)(2) for a fiscal year--
``(A) no amounts shall be awarded through such
grant for such fiscal year; or
``(B) if such amounts have already been awarded to
the State for such fiscal year, the State shall return
to the Secretary such amounts.
``(4) Competitive integrated employment fund.--
``(A) Establishment of fund.--There is established
in the Treasury of the United States a fund to be known
as the `Competitive Integrated Employment Fund'
(referred to in this paragraph as the `Fund').
``(B) Deposits.--The Secretary shall deposit into
the Fund any amount received under paragraph (3)(B).
``(C) Use of fund amounts.--Amounts in the Fund
shall be available to the Secretary of Labor, without
fiscal year limitation, for activities to increase
competitive integrated employment opportunities for
people with disabilities.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated for each of fiscal years 2031 through 2035 such sums as
may be necessary to carry out this section.''.
(2) Table of contents.--The table of contents in section
1(b) of the Rehabilitation Act of 1973 is amended by inserting
after the item relating to section 610 the following:
``Sec. 611. Additional funding for certain States with competitive
integrated employment.''.
SEC. 103. CERTIFICATE HOLDER GRANT PROGRAM.
(a) In General.--To be eligible to receive a grant under this
section, an eligible entity shall submit an application to the
Secretary at such time, in such manner, and including such information
as the Secretary may reasonably require.
(b) Contents.--Each application submitted under subsection (a)
shall include--
(1) the status of the eligible entity's use of special
certificates to employ people with disabilities, including--
(A)(i) the number of employees the eligible entity
employs using such special certificates at the time of
submission of the application;
(ii) the aggregate demographic profile of such
employees, including gender, race, and type of
disability of such employees, unless indicating such
demographic profile would disclose personal identifying
information; and
(iii) an historical accounting, covering each of
the previous 4 fiscal years, of--
(I) the number of employees with a
disability working for a wage that is--
(aa) less than the higher of the
rate specified in section 6(a)(1) of
the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) or the rate
specified in the applicable State or
local minimum wage law; or
(bb) less than the customary rate
paid by the employer for the same or
similar work performed by other
employees who are not people with
disabilities, and who are similarly
situated in similar occupations by the
same employer and who have similar
training, experience, and skills; and
(II) an aggregate demographic profile of
such employees including gender, race,
ethnicity, age, and type of disability;
(B) the average, minimum, maximum, and range of
hourly wages paid to employees employed using such
special certificates during the previous year;
(C) for each of the preceding 5 fiscal years, the
number of people with disabilities, disaggregated by
fiscal year, who have been transitioned by the eligible
entity from employment under such special certificates
to competitive integrated employment; and
(D) a description of the business and program
models (including the financial and organizational
structure) of the eligible entity that is using the
special certificates, including--
(i) the number and type of contracts the
entity has entered into during the preceding 5
fiscal years to supply goods or services,
including an indication for each such contract
of whether people with disabilities are
employed under the contract;
(ii) the budget and the funding structure,
including all sources of funding, for the
preceding 5 fiscal years;
(iii) the human resource structure; and
(iv) the entities partnering with the
eligible entity as described in subsection
(h)(2);
(2) a description of activities to be funded under the
grant, and the goals of such activities, including--
(A) a description of the business and program
models of competitive integrated employment or a
combination of competitive integrated employment,
integrated services, and other companionship and
personal support services, into which the models of the
eligible entity will transform, including the business
plan, employment structure, and leadership organization
of the eligible entity;
(B) a description of--
(i) the integrated services to be provided
by the eligible entity; or
(ii) the eligible entity's process for
referring an individual requiring such services
to a provider of such services to ensure that
the individual receives such services;
(C) after the transformation of the eligible
entity's business and program models as described in
subparagraph (A), the number of employees that will be
employed under such models;
(D) the date on which the eligible entity will
discontinue using special certificates, and the funding
structure the eligible entity will use to provide
competitive integrated employment or a combination of
such employment and integrated services; and
(E) the process to be used for the transformation
of the eligible entity's business and program models as
described in subparagraph (A), including--
(i) redesign of contracts;
(ii) changes in funding sources;
(iii) staff training on competitive
integrated employment support and practices;
(iv) input from key stakeholders, including
people with disabilities, their families, and
other local stakeholders; and
(v) a description of the individuals who
will be responsible for the development and
implementation of such process;
(3) a description of the process to recruit and engage
Federal, State, and local governments and nonprofit and private
employers to hire people with disabilities who have been
employed under special certificates;
(4) a timeline of activities to be implemented and goals to
be reached on at least a quarterly basis during the 3-year
grant period;
(5) a description of how the activities under the grant
will coordinate and align Federal, State, and local programs,
agencies, and funding in the transformation described in
paragraph (2)(A);
(6) assurances that--
(A) the activities carried out under the grant will
result in the transformation described in paragraph
(2)(A);
(B) people with disabilities who are employed by
the eligible entity under special certificates will be
employed in competitive integrated employment;
(C) the eligible entity will comply with the
requirements of the Secretary with respect to the
collection of data;
(D) the eligible entity will cooperate in the
evaluation described in title IV by providing all data
required and allow evaluation of the activities under
the grant; and
(E) the eligible entity will cooperate with the
nonprofit entity carrying out technical assistance and
dissemination required under title III;
(7) a description of the eligible entity's evaluation plan
to determine the impact of the grant;
(8) assurances of collaboration and support from all State
entities involved in supporting people with disabilities to
secure competitive integrated employment, including the State
Medicaid agency, the State developmental disability agency, the
State vocational rehabilitation agency, the State department of
education, and the State board, and other State and local
governmental entities (including the local board) and
organizations that support transformations to providing
competitive integrated employment and integrated services for
employees employed under a special certificate; and
(9) such other information and assurances as the Secretary
may reasonably require.
(c) Geographic Diversity.--To the extent practicable, the Secretary
shall distribute grant funds under this section equitably among
geographic areas of the United States, and shall take into account
rural and urban diversity.
(d) Program Size.--To the extent practicable, the Secretary shall
distribute grant funds under this section equitably among eligible
entities providing employment using special certificates serving
different numbers of people.
(e) Duration of Awards.--
(1) Grant period.--A grant awarded under this section shall
be awarded for a period of 3 years.
(2) Grant cycles.--Grants shall be awarded under this
section in 2 grant cycles. Grants for the second grant cycle
shall be awarded not earlier than the end of the second year of
the first 3-year grant cycle.
(f) Limit on Award Number.--An eligible entity may only be awarded
1 grant total under this section.
(g) Amount of Awards.--A grant awarded under this section may not
be made in an amount that is less than $200,000, or more than $750,000,
for the 3-year grant period.
(h) Eligible Entity Defined.--In this title, the term ``eligible
entity'' means an entity that--
(1) employs people with disabilities under special
certificates and is located in a State that did not receive a
grant under section 102; and
(2) partners with at least 2 entities with experience
providing support to people with disabilities in competitive
integrated employment, such as--
(A) an employer providing competitive integrated
employment;
(B) a State developmental disability agency;
(C) a State mental health services agency;
(D) a representative of an agency described in
paragraph (6) or (7) of section 8501 of title 41,
United States Code;
(E) a representative of the State Council on
Developmental Disabilities, as defined in section 102
of the Developmental Disabilities Assistance and Bill
of Rights Act of 2000 (42 U.S.C. 15002);
(F) a representative of the State vocational
rehabilitation agency, as such term is used under the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
(G) a representative of the State independent
living centers, as such term is used under the
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
(H) a representative of one of the State University
Centers for Excellence in Developmental Disabilities
Education, Research, and Service, established under
subtitle D of title I of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (42 U.S.C.
15061 et seq.);
(I) a representative of the State protection and
advocacy system, as defined in section 102 of the
Developmental Disabilities Assistance and Bill of
Rights Act of 2000 (42 U.S.C. 15002); and
(J) a nonprofit agency or organization specializing
in competitive integrated employment.
TITLE II--PHASE OUT OF SPECIAL CERTIFICATES UNDER SECTION 14(c) OF THE
FAIR LABOR STANDARDS ACT OF 1938
SEC. 201. TRANSITION TO FAIR WAGES FOR PEOPLE WITH DISABILITIES.
(a) In General.--Subparagraph (A) of section 14(c)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to read as
follows:
``(A) at a rate that equals, or exceeds, the greater of--
``(i)(I) 60 percent of the wage rate in effect
under section 6(a)(1), beginning on the effective date
described in section 201(b) of the Transformation to
Competitive Integrated Employment Act;
``(II) 70 percent of the wage rate in effect under
section 6(a)(1), beginning 2 years after the date of
enactment of such Act;
``(III) 80 percent of the wage rate in effect under
section 6(a)(1), beginning 3 years after such date of
enactment;
``(IV) 90 percent of the wage rate in effect under
section 6(a)(1), beginning 4 years after such date of
enactment; and
``(V) the wage rate in effect under section
6(a)(1), beginning 5 years after such date of
enactment; or
``(ii) the wage rate in effect on the day before
the date of enactment of the Transformation to
Competitive Integrated Employment Act for the
employment, under a special certificate issued under
this paragraph, of the individual for whom the wage
rate is determined under this paragraph;''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date that is 90 days after the date of enactment of
this Act.
SEC. 202. PROHIBITION ON NEW SPECIAL CERTIFICATES; SUNSET.
Section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C.
214(c)) (as amended by section 201), is further amended by adding at
the end the following:
``(6) Prohibition on New Special Certificates.--Notwithstanding
paragraph (1), the Secretary shall not issue a special certificate
under this subsection to an employer that was not issued a special
certificate under this subsection before the date of enactment of the
Transformation to Competitive Integrated Employment Act.
``(7) Sunset.--Beginning on the day after the date that is 5 years
after the date of enactment of the Transformation to Competitive
Integrated Employment Act--
``(A) the authority to issue special certificates under
paragraph (1) shall expire; and
``(B) no special certificates issued under paragraph (1)
shall have any legal effect.''.
TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION
SEC. 301. TECHNICAL ASSISTANCE AND DISSEMINATION.
(a) Grant Authorized.--From the amounts appropriated for this
title, the Secretary (acting through the Office of Disability
Employment Policy in partnership with the Employment and Training
Administration), in partnership with the Administration for Community
Living of the Department of Health and Human Services and the Office of
Special Education and Rehabilitative Services of the Department of
Education, shall award a grant to a nonprofit entity to--
(1) provide technical assistance to employers who are
transforming from employing people with disabilities using
special certificates to providing competitive integrated
employment;
(2) identify and disseminate private and public sector
models of the transformation described in subparagraph (A);
(3) build a set of replicable strategies for employers
using special certificates to increase their use of evidence-
based practices in providing competitive integrated employment
and increase their options for providing competitive integrated
employment;
(4) collect and disseminate--
(A) evidence-based practices with respect to the
transformations described in paragraph (1)(A),
including practices that increase awareness of and
access to training materials from and opportunities
offered through the Office of Disability Employment
Policy; and
(B) evidence-based strategies for implementing the
aims of activities that are intended to improve the
quality of integrated services provided to people with
disabilities leading to competitive integrated
employment and that are carried out--
(i) under the Workforce Innovation and
Opportunity Act (29 U.S.C. 3101 et seq.);
(ii) through settlement agreements made
pursuant to the employment requirements under
the Olmstead decision; or
(iii) through home and community-based
services described in the final rule of the
Department of Health and Human Services
entitled ``Medicaid Program; State Plan Home
and Community-Based Services, 5-Year Period for
Waivers, Provider Payment Reassignment, and
Home and Community-Based Setting Requirements
for Community First Choice and Home and
Community-Based Services (HCBS) Waivers'' (79
Fed. Reg. 2948 (January 16, 2014)), or a
successor rule;
(5) leverage and increase awareness of and access to
training materials and opportunities made available through
training and technical assistance investments of--
(A) the Office of Disability Employment Policy;
(B) the Employment and Training Administration;
(C) the Administration for Community Living of the
Department of Health and Human Services; and
(D) the Office of Special Education and
Rehabilitative Services of the Department of Education;
(6) raise awareness of efforts in States to carry out the
Employment First initiative; and
(7) coordinate dissemination efforts related to ABLE
accounts and other financial asset development resources
through the ABLE National Resource Center and the Department of
the Treasury.
(b) Application.--
(1) In general.--To be eligible to receive a grant under
this section, a nonprofit entity shall submit an application to
the Secretary at such time, in such manner, and including such
information that the Secretary may reasonably require.
(2) Contents.--Each application submitted under paragraph
(1) shall include--
(A) a description of the nonprofit entity's
expertise in providing technical assistance that shall
include evidence of--
(i) knowledge of transforming business and
program models providing employment using
special certificates to models providing
competitive integrated employment and
integrated services;
(ii) knowledge of methods for supporting
employers, including employers not receiving a
grant or assistance through a grant under title
I, to transform as described in clause (i);
(iii) experience working with nonprofit
entities, for-profit entities, and Federal,
State, and local agencies focusing on
employment of youth and adults who are people
with disabilities; and
(iv) experience working with people with
disabilities and their families;
(B) a description of the nonprofit entity's
expertise in providing, collecting, compiling,
communicating, and disseminating information about
program and systems change for programs serving people
with disabilities that shall include--
(i) expertise documenting program change;
(ii) experience compiling recommended
practices related to program transformations;
(iii) expertise regarding competitive
integrated employment for youth and adults who
are people with disabilities;
(iv) expertise working with people with
disabilities and their families through systems
change procedures;
(v) expertise creating accessible products
to disseminate learned information, including
through web-based means;
(vi) experience creating accessible
websites to disseminate information;
(vii) experience working with nonprofit
entities, for-profit entities, and Federal,
State, and local agencies focusing on
employment of youth and adults who are people
with disabilities;
(viii) experience with assisting youth who
are people with disabilities in transitioning
from receiving services under the Individuals
with Disabilities Education Act (20 U.S.C. 1401
et seq.) and from kindergarten through grade 12
to inclusive postsecondary education and
competitive integrated employment; and
(ix) experience leveraging resources,
available through the Office of Disability
Employment Policy and the Employment and
Training Administration, that are designed to
provide effective and efficient services to job
seekers who are people with disabilities in
competitive integrated employment settings; and
(C) a description of the individuals at the
nonprofit entity who will be responsible for carrying
out the activities under this section.
(3) Duration of award.--A grant under this section shall be
awarded for a period of 6 years, and shall be non-renewable.
(4) Definition of nonprofit entity.--In this section, the
term ``nonprofit entity'' means a nonprofit entity with
expertise in collecting, compiling, communicating, and
disseminating information about program and systems change for
programs serving people with disabilities.
TITLE IV--REPORTING AND EVALUATION
SEC. 401. IMPACT EVALUATION AND REPORTING.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall enter into a contract with a
nonprofit entity with experience in conducting evaluations of program
and systems change efforts to--
(1) conduct a multi-year evaluation on the impact of this
Act, including the amendments made by this Act, with respect to
people with disabilities (including such people receiving a
wage rate under section 14(c) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 214(c)), as amended by title II); and
(2) prepare the reports described in subsection (c).
(b) Evaluation.--In carrying out subsection (a)(1), the nonprofit
entity awarded a contract under this section shall evaluate--
(1) changes in wages and employment for people described in
subsection (a)(1); and
(2) actions taken by employers and States to comply with
the amendments made by title II and, in the case of an employer
or State receiving funds under title I, to comply with the
transformation requirements under such title.
(c) Reports.--The Secretary shall submit to the Committee on
Health, Education, Labor, and Pensions of the Senate and the Committee
on Education and Workforce of the House of Representatives, the
following reports on the evaluation conducted under subsection (a)(1):
(1) An interim report on the evaluation, not later than 3
years after the evaluation commences under subsection (a)(1).
(2) A final report on such evaluation, not later than 18
months after the date on which the legal effect of special
certificates expire pursuant to paragraph (7) of section 14(c)
of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), as
added by title II.
SEC. 402. WAGE AND HOUR REPORTS.
(a) In General.--For each year of the 5-year period described in
section 14(c)(1)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C.
214(c)(1)(A)), as amended by title II, the Secretary (acting through
the Administrator of the Wage and Hour Division), in coordination with
the Civil Rights Division of the Department of Justice, shall submit to
the Committee on Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and Workforce of the House of
Representatives, an annual report summarizing practices of employers
providing employment using special certificates, which, with respect to
the preceding year, shall include--
(1) the number of employees (of such employers) who are
people with disabilities and who are compensated at a rate that
is less than--
(A) the higher of the rate specified in section
6(a)(1) of the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) or the rate specified in the
applicable State or local minimum wage law; or
(B) the customary rate paid by the employer for the
same or similar work performed by other employees who
are not people with disabilities, and who are similarly
situated in similar occupations by the same employer
and who have similar training, experience, and skills;
(2) the type of employment setting (such as segregated
employment or competitive integrated employment) and the
integrated services provided by such employers;
(3) the average hourly wage, minimum and maximum hourly
wage, and average hours worked per week of employees described
in paragraph (1), disaggregated by employer and by State;
(4) the aggregate demographic characteristics of employees
described in paragraph (1), including the gender, ethnicity,
race, and type of disability of such employees; and
(5) the number of employees who have transitioned from
employment provided under a special certificate to competitive
integrated employment, disaggregated by employer and by State.
(b) Report on Audit of Existing Special Certificate Holders.--Not
later than 1 year after the date of enactment of this Act, the
Secretary (acting through the Administrator of the Wage and Hour
Division) shall--
(1) conduct an audit of not less than 10 percent of
employers providing employment to employees using special
certificates, as of the date of enactment of this Act, which
shall include an audit of--
(A) the training and support provided to such
employees to promote their transition to competitive
integrated employment;
(B) the actions taken by employers to identify
competitive integrated employment for such employees;
and
(C) the wages of such employees, including whether
such wages are at a rate that is less than--
(i) the higher of the rate specified in
section 6(a)(1) of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206(a)(1)) or the rate
specified in the applicable State or local
minimum wage law; or
(ii) the customary rate paid by the
employer for the same or similar work performed
by other employees who are not people with
disabilities, and who are similarly situated in
similar occupations by the same employer and
who have similar training, experience, and
skills; and
(2) submit a report on such audit to the Committee on
Health, Education, Labor, and Pensions of the Senate, the
Special Committee on Aging of the Senate, and the Committee on
Education and Workforce of the House of Representatives.
TITLE V--GENERAL PROVISIONS
SEC. 501. DEFINITIONS.
In this Act:
(1) ABLE account.--The term ``ABLE account'' has the
meaning given such term in section 529A(e)(6) of the Internal
Revenue Code of 1986.
(2) Competitive integrated employment.--The term
``competitive integrated employment'' has the meaning given the
term in section 7(5) of the Rehabilitation Act of 1973 (29
U.S.C. 705(5)).
(3) Disability.--The term ``disability'' includes any
intellectual, developmental, mental health, or other
disability.
(4) Integrated community participation and wraparound
services; integrated services.--
(A) In general.--Except as provided in subparagraph
(B), the terms ``integrated community participation and
wraparound services'' and ``integrated services'' mean
services for people with disabilities that are--
(i) designed to assist such people in
developing skills and abilities to reside
successfully in home and community-based
settings;
(ii) provided in accordance with a person-
centered written plan of care;
(iii) created using evidence-based
practices that lead to such people--
(I) maintaining competitive
integrated employment;
(II) achieving independent living;
or
(III) maximizing socioeconomic
self-sufficiency, optimal independence,
and full participation in the
community;
(iv) provided in a community location that
is not specifically intended for people with
disabilities;
(v) provided in a location that--
(I) allows the people receiving the
services to interact with people
without disabilities to the fullest
extent possible; and
(II) makes it possible for the
people receiving the services to access
community resources that are not
specifically intended for people with
disabilities and to have the same
opportunity to participate in the
community as people who do not have a
disability;
(vi) provided in multiple locations to
allow the individual receiving the services to
have options, thereby--
(I) optimizing individual
initiative, autonomy, and independence;
and
(II) facilitating choice regarding
services and supports, and choice
regarding the provider of such
services; and
(vii) in compliance with the final rule of
the Department of Health and Human Services
entitled ``Medicaid Program; State Plan Home
and Community-Based Services, 5-Year Period for
Waivers, Provider Payment Reassignment, and
Home and Community-Based Setting Requirements
for Community First Choice and Home and
Community-Based Services (HCBS) Waivers'' (79
Fed. Reg. 2948 (January 16, 2014)), or a
successor rule.
(B) Exclusions.--The terms ``integrated community
participation and wraparound services'' and
``integrated services'' shall not include a service
provided in any of the following settings:
(i) A nursing facility.
(ii) An institution for people with mental
diseases.
(iii) An intermediate care facility for
people with intellectual disabilities.
(iv) A congregate setting in which an
individual does not have the ability, at the
time preferred by the individual and in
accordance with other preferences of the
individual, to access services supporting the
full inclusion and engagement of the individual
in the greater community.
(5) Local board; local plan.--The terms ``local board'' and
``local plan'' have the meanings given such terms in section 3
of the Workforce Innovation and Opportunity Act (29 U.S.C.
3102).
(6) Olmstead decision.--The term ``Olmstead decision''
means the decision of the Supreme Court of the United States in
Olmstead v. L.C., 527 U.S. 581 (1999).
(7) Olmstead plan.--The term ``Olmstead plan'', with
respect to a State, means the plan of the State for complying
with the holding in the Olmstead decision.
(8) People with disabilities.--The term ``people with
disabilities'' includes individuals described in section
14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
214(c)(1)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(10) Special certificate.--The term ``special certificate''
means a special certificate issued under section 14(c) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)).
(11) State.--The term ``State'' means each of the 50
States, the District of Columbia, the Commonwealth of Puerto
Rico, and the territory of Guam.
(12) State board.--The term ``State board'' has the meaning
given such term in section 3 of the Workforce Innovation and
Opportunity Act.
(13) Workforce development system.--The term ``workforce
development system'' has the meaning given such term in section
3 of the Workforce Innovation and Opportunity Act.
SEC. 502. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to carry
out this Act, $200,000,000 for each of fiscal years 2026 through 2030.
(b) Technical Assistance.--From amounts made available under
subsection (a) for each fiscal year, 1 percent shall be allocated for
the activities under title III.
<all>