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Union Calendar No. 22
108th CONGRESS
1st Session
H. R. 444
[Report No. 108-35]
To amend the Workforce Investment Act of 1998 to establish a Personal
Reemployment Accounts grant program to assist Americans in returning to
work.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 29, 2003
Mr. Porter (for himself, Mr. Boehner, Mr. McKeon, Ms. Pryce of Ohio,
Mr. Ballenger, Mr. Greenwood, Mr. Souder, Mr. Norwood, Mr. DeMint, Mr.
Isakson, Mr. Platts, Mr. Tiberi, Mr. Keller, Mr. Wilson of South
Carolina, Mr. Kline, Mr. Beauprez, Mr. Cunningham, Mr. Green of
Wisconsin, Mr. Hayes, Mr. McHugh, Mr. Nethercutt, Mr. Oxley, Mr.
Simmons, Mr. Smith of New Jersey, Mr. Tiahrt, and Mr. Wolf) introduced
the following bill; which was referred to the Committee on Education
and the Workforce
March 13, 2003
Additional sponsors: Mr. Gillmor, Mr. Rogers of Alabama, Mr. Janklow,
Mr. Baker, Mrs. Myrick, Mr. Murphy, Ms. Ginny Brown-Waite of Florida,
Mr. Mario Diaz-Balart of Florida, Mr. Kolbe, Ms. Dunn, Ms. Hart, Mr.
Foley, Ms. Eddie Bernice Johnson of Texas, and Mr. Ose
March 13, 2003
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on January
29, 2003]
_______________________________________________________________________
A BILL
To amend the Workforce Investment Act of 1998 to establish a Personal
Reemployment Accounts grant program to assist Americans in returning to
work.
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 ``Back to Work Incentive Act of
2003''.
SEC. 2. GRANTS TO SUPPORT PERSONAL REEMPLOYMENT ACCOUNTS.
Subtitle B of title I of the Workforce Investment Act of 1998 (29
U.S.C. 2811 et seq.) is amended by inserting after chapter 5 the
following new chapter:
``CHAPTER 5A--PERSONAL REEMPLOYMENT ACCOUNTS
``SEC. 135A. PURPOSES.
``The purposes of this chapter are to provide for the establishment
of personal reemployment accounts for certain individuals identified as
likely to exhaust their unemployment compensation in order to--
``(1) accelerate the reemployment of such individuals;
``(2) promote the retention in employment of such
individuals; and
``(3) provide such individuals with enhanced flexibility,
choice, and control in obtaining intensive reemployment,
training, and supportive services.
``SEC. 135B. DEFINITION.
``In this chapter, the term `State' means each of the several
States of the United States, the District of Columbia, the Commonwealth
of Puerto Rico, and the United States Virgin Islands.
``SEC. 135C. GRANTS TO STATES.
``(a) Grants.--The Secretary shall--
``(1) reserve \2/10\ of 1 percent of the amount
appropriated under section 137(d) for use under section 135I;
and
``(2) use the remainder of the amount appropriated under
section 137(d) to make allotments in accordance with subsection
(b).
``(b) Allotment Among States.--
``(1) In general.--From the amount made available under
subsection (a)(2), the Secretary shall allot to each State an
amount that is proportionate to the relative number of
unemployed individuals in the State as compared to the total
number of unemployed individuals in all States in order to
provide assistance for eligible individuals in accordance with
this chapter.
``(2) Small state minimum allotment.--The Secretary shall
ensure that--
``(A) each State (other than the United States
Virgin Islands) shall receive an allotment under
paragraph (1) that is not less than \3/10\ of 1 percent of the amount
made available under subsection (a)(2) for the fiscal year; and
``(B) the United States Virgin Islands shall
receive an allotment under paragraph (1) that is not
less than \1/10\ of 1 percent of the amount made
available under subsection (a)(2) for the fiscal year.
``(c) Availability.--Notwithstanding section 189(g)(1), amounts
made available under subsection (a) to carry out this chapter shall be
available for obligation and expenditure beginning on the date of the
enactment of the Back to Work Incentive Act of 2003.
``SEC. 135D. WITHIN STATE ALLOCATION.
``(a) Allocation.--Of the amount allotted to a State under section
135C--
``(1) not more than 2 percent of the amount may be reserved
by the Governor of the State to enhance the system of worker
profiling described in section 303(j) of the Social Security
Act and to establish and operate a data management system, as
necessary, and carry out other appropriate activities to
implement this chapter;
``(2) 5 percent of the amount shall be allocated by the
State to local areas in accordance with the formula described
in subsection (b) for start-up costs and other operating costs
related to the provision of assistance under this chapter; and
``(3) the remainder of the amount shall be provided to
local areas consistent with the methods and procedures
described in section 135G(a)(4) for the establishment of
personal reemployment accounts described in section 135E for
eligible individuals in such local areas.
``(b) Formula.--A State shall allocate funds to local areas in the
State under subsection (a)(2) in an amount that is proportionate to the
relative number of unemployed individuals in the local area as compared
to the total number of unemployed individuals in the State.
``(c) Availability.--Notwithstanding section 189(g)(2), amounts
allotted to a State under section 135C, and amounts subsequently
provided to a local area under this section, shall be available for
obligation and expenditure only for the 3-year period beginning on the
date of the enactment of the Back to Work Incentive Act of 2003.
``SEC. 135E. PERSONAL REEMPLOYMENT ACCOUNTS.
``(a) Accounts.--
``(1) In general.--Funds provided to a local area under
section 135D shall be used to provide eligible individuals with
personal reemployment accounts to be used in accordance with
section 135F. An eligible individual may receive only one
personal reemployment account.
``(2) Amount.--The State shall establish the amount of a
personal reemployment account, which shall be uniform
throughout the State, and shall not exceed $3,000.
``(b) Eligible Individuals.--
``(1) In general.--Each State shall establish eligibility
criteria for individuals for personal reemployment accounts in
accordance with this subsection.
``(2) Eligibility criteria requirements.--
``(A) In general.--Subject to subparagraph (B), an
individual shall be eligible to receive assistance
under this chapter if, beginning after the date of
enactment of the Back to Work Incentive Act of 2003,
the individual--
``(i) is identified by the State pursuant
to section 303(j)(1) of the Social Security Act
as likely to exhaust regular unemployment
compensation and in need of job search
assistance to make a successful transition to
new employment or an individual's unemployment
can be attributed in substantial part to unfair
competition from Federal Prison Industries,
Inc.;
``(ii) is receiving regular unemployment
compensation under any State or Federal
unemployment compensation program administered
by the State; and
``(iii) is eligible for not less than 20
weeks of regular unemployment compensation
described in clause (ii).
``(B) Additional eligibility and priority
criteria.--A State may establish criteria that is in
addition to the criteria described in subparagraph (A)
for the eligibility of individuals to receive
assistance under this chapter. A State may also
establish criteria for priority in the provision of
assistance to such eligible individuals under this
chapter.
``(3) Transition rule.--
``(A) Previously identified as likely to exhaust
unemployment compensation.--
``(i) In general.--At the option of the
State, and subject to clause (ii), an
individual may be eligible to receive
assistance under this chapter if the
individual--
``(I) during the 13-week period
ending the week prior to the date of
the enactment of the Back to Work
Incentive Act of 2003, was identified
by the State pursuant to section
303(j)(1) of the Social Security Act as
likely to exhaust regular unemployment
compensation and in need of job search
assistance to make a successful
transition to new employment; and
``(II) otherwise meets the
requirements of clauses (ii) and (iii)
of paragraph (2)(A).
``(ii) Additional eligibility and priority
criteria.--A State may establish criteria that
is in addition to the criteria described in
clause (i) for the eligibility of individuals
to receive assistance under this chapter. A
State may also establish criteria for priority
in the provision of assistance to such eligible
individuals under this chapter.
``(B) Previously exhausted unemployment
compensation.--At the option of the State, an
individual may be eligible to receive assistance under
this chapter if the individual--
``(i) during the 26-week period ending the
week prior to the date of the enactment of the
Back to Work Incentive Act of 2003, exhausted
all rights to any unemployment compensation;
and
``(ii)(I) is enrolled in training and needs
additional support to complete such training,
with a priority of service to be provided to
such individuals who are training for shortage
occupations or high-growth industries; or
``(II) is separated from employment in an
industry or occupation that has experienced
declining employment, or no longer provides any
employment, in the local labor market during
the two-year period ending on the date of the
determination of eligibility of the individual
under this subparagraph.
``(4) No individual entitlement.--Nothing in this chapter
shall be construed to entitle any individual to receive a
personal reemployment account.
``(c) Local Administration.--
``(1) Information and attestation.--Prior to the
establishment of a personal reemployment account for an
eligible individual under this chapter, the local board,
through the one-stop delivery system, shall ensure that the
individual--
``(A) is informed of the requirements applicable to
the personal reemployment account, including the
allowable uses of funds from the account, the
limitations on access to services described under
section 135F(a)(3)(C) and a description of such
services, and the conditions for receiving a
reemployment bonus;
``(B) has the option to develop a personal
reemployment plan which will identify the employment
goals and appropriate combination of services selected
by the individual to achieve the employment goals; and
``(C) signs an attestation that the individual has
been given the option to develop a personal
reemployment plan in accordance with subparagraph (B),
will comply with the requirements relating to the
personal reemployment accounts under this chapter, and
will reimburse the account or, if the account has been
terminated, the program under this chapter, for any
amounts expended from the account that are not
allowable.
``(2) Periodic interviews.--If a recipient exhausts his or
her rights to any unemployment compensation, and the recipient
has a remaining balance in his or her personal reemployment
account, the one-stop delivery system shall conduct periodic
interviews with the recipient to assist the recipient in
meeting his or her individual employment goals.
``SEC. 135F. USE OF FUNDS.
``(a) Allowable Activities.--
``(1) In general.--Subject to the requirements contained in
paragraphs (2) and (3), a recipient may use amounts in a
personal reemployment account to purchase one or more of the
following:
``(A) Intensive services, including those types of
services specified in section 134(d)(3)(C).
``(B) Training services, including those types of
services specified in section 134(d)(4)(D).
``(C) Supportive services, except for needs-related
payments.
``(D) Assistance to purchase or lease an
automobile, if such assistance is necessary to allow
the recipient to accept a bona fide offer of employment
for which there is a reasonable expectation of long-
term duration.
``(2) Delivery of services.--The following requirements
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