To amend the Workforce Investment Act of 1998 to establish a Personal Reemployment Accounts grant program to assist Americans in returning to work.

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

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 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) MINIMUM 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;

`(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 for the 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 90-day period ending on 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 90-day period ending on 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 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 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 relating to delivery of services shall apply to the program under this chapter:

`(A) Recipients may use funds from the personal reemployment account to purchase the services described in paragraph (1) through the one-stop delivery system on a fee-for-service basis, or through other providers, consistent with safeguards described in the State plan under section 135G.

`(B) The one-stop delivery system may pay costs for such services directly on behalf of the recipient, through a voucher system, or by reimbursement to the recipient upon receipt of appropriate cost documentation, consistent with safeguards described in the State plan under section 135G.

`(C) Each one-stop delivery system shall make available to recipients information on training providers specified in section 134(d)(4)(F)(ii), information available to the one-stop delivery system on providers of the intensive and supportive services described in paragraph (1), and information relating to occupations in demand in the local area.

`(3) LIMITATIONS- The following limitations shall apply with respect to personal reemployment accounts under this chapter:

`(A)(i) Amounts in a personal reemployment account may be used for up to one year from the date of the establishment of the account.

`(ii) No personal reemployment account may be established beginning 2 years after the date of the enactment of the Back to Work Incentive Act of 2003.

`(B) Each recipient shall submit cost documentation as required by the one-stop delivery system.

`(C) For the 1-year period following the establishment of the account, recipients may not receive intensive, supportive, or training services funded under this title except on a fee-for-services basis as specified in paragraph (2)(A).

`(D) Amounts in a personal reemployment account shall be nontransferable.

`(b) INCOME SUPPORT- A State may authorize recipients determined eligible under section 135E(b)(3)(B) to withdraw amounts from the personal reemployment account on a weekly basis for purposes of income support in amounts up to the average weekly amount of unemployment compensation that the individual received prior to his or her exhaustion of rights to unemployment compensation if the individual is engaged in job search, intensive services, or training that is expected to lead to employment.

`(c) REEMPLOYMENT BONUS-

`(1) IN GENERAL- Subject to paragraph (2)--

`(A) if a recipient determined eligible under section 135E(b)(2) obtains full-time employment before the end of the 13th week of unemployment for which unemployment compensation is paid, the balance of his or her personal reemployment account shall be provided directly to the recipient in cash; and

`(B) if a recipient determined eligible under section 135E(b)(3) obtains full-time employment before the end of the 13th week after the date on which the account is established, the balance of his or her personal reemployment account shall be provided directly to the recipient in cash.

`(2) LIMITATIONS- The following limitations shall apply with respect to a recipient described in paragraph (1):

`(A) 60 percent of the remaining personal reemployment account balance shall be paid to the recipient at the time of reemployment.

`(B) 40 percent of the remaining personal reemployment account balance shall be paid to the recipient not later than 6 months after the date of reemployment.

`(3) EXCEPTION REGARDING SUBSEQUENT UNEMPLOYMENT- If a recipient described in paragraph (1) subsequently becomes unemployed due to a lack of work after receiving the portion of the reemployment bonus specified under paragraph (2)(A), the individual may use the amount remaining in the personal reemployment account for the purposes described in subsection (a) but may not be eligible for additional cash payments under this subsection.

`SEC. 135G. STATE PLAN.

`(a) IN GENERAL- In order for a State to receive an allotment under section 135C, the Governor of the State shall submit to the Secretary a plan that includes a description of how the State intends to carry out the personal reemployment accounts authorized under this chapter, including--

`(1) the criteria and methods to be used for determining eligibility for the personal reemployment accounts, including whether the State intends to include the optional categories described in section 135E(b)(3), and the additional criteria and priority for service that the State intends to apply, if any, pursuant to section 135E(b)(2)(B);

`(2) the methods or procedures, developed in consultation with local boards and chief elected officials, to be used to provide eligible individuals information relating to services and providers, and safeguards, developed in consultation with such boards and officials, to ensure that funds from the personal reemployment accounts are used for purposes authorized under this chapter and are not used for services or providers that are wholly unreasonable or egregious;

`(3) how the State will coordinate the activities carried out under this chapter with the employment and training activities carried out under section 134 and other activities carried out through the one-stop delivery system in the State.

`(b) PLAN SUBMISSION AND APPROVAL- A State plan submitted to the Secretary under subsection (a) by a Governor shall be considered to be approved by the Secretary at the end of the 30-day period beginning on the date the Secretary receives the plan, unless the Secretary makes a written determination during such period that the plan is incomplete or otherwise inconsistent with the provisions of this chapter.

`SEC. 135H. PROGRAM INFORMATION.

`The Secretary may require from States the collection and reporting on such financial, performance, and other program-related information as the Secretary determines is appropriate to carry out this chapter, including the evaluation described in section 135I.

`SEC. 135I. EVALUATION.

`(a) EVALUATION- From the amount made available under section 135C(a)(1), the Secretary, pursuant to the authority provided under section 172, shall, directly or through grants, contracts, or cooperative agreements with appropriate entities, conduct an evaluation of the activities carried out under this chapter.

`(b) CONDUCT OF EVALUATION- The evaluation shall examine the effectiveness of such activities in achieving the purposes described in section 135A and such other purposes as the Secretary determines are appropriate.

`(c) REPORT- The report to Congress under section 172(e) relating to the results of the evaluations required under section 172 shall include the recommendation of the Secretary with respect to the use of personal reemployment accounts as a mechanism to assist individuals in obtaining and retaining employment.'.

SEC. 3. ADMINISTRATION.

Section 117(d) of the Workforce Investment Act of 1998 (29 U.S.C. 2832(d)) is amended--

(1) in paragraph (3)(B)(i)(I), by striking `sections 128 and 133' and inserting `sections 128, 133, and 135D'; and

(2) in paragraph (4), by inserting `, activities authorized under section 135F' after `section 134'.

SEC. 4. DELIVERY OF SERVICES.

Section 134(c)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(c)(1)) is amended--

(1) in subparagraph (D), by striking `and' at the end;

(2) in subparagraph (E), by striking the period at the end and inserting `; and'; and

(3) by adding at the end the following:

`(F) shall provide access to personal reemployment accounts in accordance to section 135E.'.

SEC. 5. AUTHORIZATION OF APPROPRIATION.

Section 137 of the Workforce Investment Act of 1998 (29 U.S.C. 2872) is amended by adding at the end the following:

`(d) PERSONAL REEMPLOYMENT ACCOUNTS-

`(1) IN GENERAL- There is authorized to be appropriated $3,600,000,000 for fiscal year 2003 to carry out chapter 5A.

`(2) AVAILABILITY- Amounts appropriated pursuant to the authorization of appropriations under paragraph (1) to carry out section 135I are authorized to remain available until expended.'.

SEC. 6. CONFORMING AMENDMENT.

The table of contents for the Workforce Investment Act of 1998 is amended by inserting after the items relating to chapter 5 of subtitle B of title I the following new items:

`Chapter 5A--Personal Reemployment Accounts

`Sec. 135A. Purposes.

`Sec. 135B. Definitions.

`Sec. 135C. Grants to States.

`Sec. 135D. Within State allocation.

`Sec. 135E. Personal reemployment accounts.

`Sec. 135F. Use of funds.

`Sec. 135G. State plan.

`Sec. 135H. Program information.

`Sec. 135I. Evaluation, technical assistance, and data collection activities.'.

END