To amend the temporary assistance to needy families program under part A of title IV of the Social Security Act to provide grants for transitional jobs programs, and for other purposes.

April 3, 2003

Mr. BINGAMAN (for himself, Mr. ROCKEFELLER, and Mr. BREAUX) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the temporary assistance to needy families program under part A of title IV of the Social Security Act to provide grants for transitional jobs programs, 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 `Business Links Act of 2003'.

SEC. 2. TRANSITIONAL JOBS GRANTS.

(a) IN GENERAL- Section 403(a)(4) of the Social Security Act (42 U.S.C. 603(a)(4)) is amended to read as follows:

`(4) INNOVATIVE BUSINESS LINK PARTNERSHIP GRANTS-

`(A) IN GENERAL- The Secretary and the Secretary of Labor (in this paragraph referred to as the `Secretaries') jointly shall award grants in accordance with this paragraph for projects proposed by eligible applicants based on the following:

`(i) The potential effectiveness of the proposed project in carrying out the activities described in subparagraph (E).

`(ii) Evidence of the ability of the eligible applicant to leverage private, State, and local resources.

`(iii) Evidence of the ability of the eligible applicant to coordinate with other organizations at the State and local level.

`(B) DEFINITION OF ELIGIBLE APPLICANT-

`(i) IN GENERAL- In this paragraph, the term `eligible applicant' means a nonprofit organization, a local workforce investment board established under section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 2832), a State, a political subdivision of a State, or an Indian tribe.

`(ii) GRANTS TO PROMOTE BUSINESS LINKAGES-

`(I) ADDITIONAL ELIGIBLE APPLICANT- Only for purposes of grants to carry out the activities described in subparagraph (E)(i), the term `eligible applicant' includes an employer.

`(II) ADDITIONAL REQUIREMENT- In order to qualify as an eligible applicant for purposes of subparagraph (E)(i), the applicant must provide evidence that the application has been developed by and will be implemented by a local or regional consortium that includes, at minimum, employers or employer associations, and education and training providers, in consultation with local labor organizations and social service providers that work with low-income families or individuals with disabilities.

`(C) REQUIREMENTS-

`(i) IN GENERAL- In awarding grants under this paragraph, the Secretaries shall--

`(I) consider the needs of rural areas and cities with large concentrations of residents with an income that is less than 150 percent of the poverty line; and

`(II) ensure that--

`(aa) all of the funds made available under this paragraph (other than funds reserved for use by the Secretaries under subparagraph (J)) shall be used for activities described in subparagraph (E);

`(bb) not less than 40 percent of the funds made available under this paragraph (other than funds so reserved) shall be used for activities described in subparagraph (E)(i); and

`(cc) not less than 40 percent of the funds made available under this paragraph (other than funds so reserved) shall be used for the activities described in subparagraph (E)(ii).

`(ii) CONTINUATION OF AVAILABILITY- If any portion of the funds required to be used for activities referred to in item (bb) or (cc) of clause (i)(II) are not awarded in a fiscal year, such portion shall continue to be available in the subsequent fiscal year for the same activity, in addition to other amounts that may be available for such activities for that subsequent fiscal year.

`(D) DETERMINATION OF GRANT AMOUNT-

`(i) IN GENERAL- Subject to clause (ii), in determining the amount of a grant to be awarded under this paragraph for a project proposed by an eligible applicant, the Secretaries shall provide the eligible applicant with an amount sufficient to ensure that the project has a reasonable opportunity to be successful, taking into account--

`(I) the number and characteristics of the individuals to be served by the project;

`(II) the level of unemployment in the area to be served by the project;

`(III) the job opportunities and job growth in such area;

`(IV) the poverty rate for such area; and

`(V) such other factors as the Secretary deems appropriate in such area.

`(ii) MAXIMUM AWARD FOR GRANTS TO PROMOTE BUSINESS LINKAGES OR PROVIDE TRANSITIONAL JOBS PROGRAMS-

`(I) IN GENERAL- In the case of a grant to carry out activities described in clause (i) or (ii) of subparagraph (E), an eligible applicant awarded a grant under this paragraph may not receive more than $10,000,000 per fiscal year under the grant.

`(II) RULE OF CONSTRUCTION- Nothing in subclause (I) shall be construed as precluding an otherwise eligible applicant from receiving separate grants to carry out activities described in clause (i) or (ii) of subparagraph (E).

`(iii) GRANT PERIOD- The period in which a grant awarded under this paragraph may be used shall be specified for a period of not less than 36 months and not more than 60 months.

`(E) ALLOWABLE ACTIVITIES- An eligible applicant awarded a grant under this paragraph shall use funds provided under the grant to do the following:

`(i) PROMOTE BUSINESS LINKAGES-

`(I) IN GENERAL- To promote business linkages in which funds shall be used to fund new or expanded programs that are designed to--

`(aa) substantially increase the wages of eligible individuals (as defined in subparagraph (F)), whether employed or unemployed, who have limited English proficiency or other barriers to employment by creating or upgrading job and related skills in partnership with employers, especially by providing supports and services at or near work sites; and

`(bb) identify and strengthen career pathways by expanding and linking work and training opportunities for such individuals in collaboration with employers.

`(II) CONSIDERATION OF IN-KIND, IN-CASH RESOURCES- In determining which programs to fund under this clause, an eligible applicant awarded a grant under this paragraph shall consider the ability of a consortium to provide funds in-kind or in-cash (including employer-provided, paid release time) to help support the programs for which funding is sought.

`(III) PRIORITY- In determining which programs to fund under this clause, an eligible applicant awarded a grant under this paragraph shall give priority to programs that include education or training for which participants receive credit toward a recognized credential, such as an occupational certificate or license.

`(IV) USE OF FUNDS-

`(aa) IN GENERAL- Funds provided to a program under this clause may be used for a comprehensive set of employment and training benefits and services, including job development, job matching, workplace supports and accommodations, curricula development, wage subsidies, retention services, and such other benefits or services as the program deems necessary to achieve the overall objectives of this clause.

`(bb) PROVISION OF SERVICES- So long as a program is principally designed to assist eligible individuals, (as defined in subparagraph (F)), funds may be provided to a program under this clause that also serves low-earning employees of 1 or more employers even if such individuals are not within the definition of eligible individual (as so defined).

`(ii) PROVIDE FOR TRANSITIONAL JOBS PROGRAMS-

`(I) IN GENERAL- To provide for wage-paying transitional jobs programs which combine time-limited employment in the public or nonprofit private sector that is subsidized with public funds with skill development and activities to remove barriers to employment, pursuant to an individualized plan (or, in the case of an eligible individual described in subparagraph (F)(i), an individual responsibility plan developed for an individual under section 408(b)). Such programs also shall provide job development and placement assistance to individual participants to help them move from subsidized employment in transitional jobs into unsubsidized employment, as well as retention services after the transition to unsubsidized employment.

`(II) ELIGIBLE PARTICIPANTS- The Secretary shall ensure that individuals who participate in transitional jobs programs funded under a grant made under this paragraph shall be individuals who have been unemployed because of limited skills, experience, or other barriers to employment, and who are eligible individuals (as defined in subparagraph (F)), provided that so long as a program is designed to, and principally serves, eligible individuals (as so defined), a limited number of individuals who are unemployed because of limited skills, experience, or other barriers to employment, and who have an income below 100 percent of the Federal poverty line but who do not satisfy the definition of eligible individual (as so defined) may be served in the program to the extent the Secretaries determine that the inclusion of such individuals in the program is appropriate.

`(III) USE OF FUNDS- Funds provided to a program under this clause may only be used in accordance with the following:

`(aa) To create subsidized transitional jobs in which work shall be performed directly for the program operator or at other public and non profit organizations (in this subclause referred to as `worksite employers') in the community, and in which 100 percent of the wages shall be subsidized, except as described in item (ff) regarding placements in the private, for profit sector.

`(bb) Participants shall be paid at the rate paid to unsubsidized employees of the worksite employer who perform comparable work at the worksite

where the individual is placed. If no other employees perform the same or comparable work then wages shall be set, at a minimum, at 50 percent of the Lower Living Standard Income Level (commonly referred to as the `LLSIL'), as determined under section 101(24) of the Workforce Investment Act of 1998 (29 U.S.C. 2801(24)), for a family of 3 based on 35 hours per week.

`(cc) Transitional jobs shall be limited to not less than 6 months and not more than 24 months, however, nothing shall preclude a participant from moving into unsubsidized employment at a point prior to the maximum duration of the transitional job placement. Participants shall be paid wages based on a workweek of not less than 30 hours per week or more than 40 hours per week, except that a parent of a child under the age of 6, a child who is disabled, or a child with other special needs, or an individual who for other reasons cannot successfully participate for 30 to 40 hours per week, may be allowed to participate for more limited hours, but not less than 20 hours per week. In any work week, 50 percent to 80 percent of hours shall be spent in the transitional job and 20 percent to 50 percent of hours shall be spent in education or training, or other services designed to reduce or eliminate any barriers.

`(dd) Program operators shall provide case management services and ensure access to appropriate education, training, and other services, including job accommodation, work supports, and supported employment, as appropriate and consistent with an individual plan that is based on the individual's strengths, resources, priorities, concerns, abilities, capabilities, career interests, and informed choice and that is developed with each participant. The goal of each participant's plan shall focus on preparation for unsubsidized jobs in demand in the local economy which offer the potential for advancement and growth. Services shall also include job placement assistance and retention services, which may include coaching and work place supports, for 12 months after entry into unsubsidized placement. Participants shall also receive support services such as subsidized child care and transportation, on the same basis as those services are made available to recipients of assistance under the State program funded under this part who are engaged in work-related activities.

`(ee) Providers shall work with individual recipients to determine eligibility for other employment-related supports which may include (but are not limited to) supported employment, other vocational rehabilitation services, and programs or services available under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.), or the ticket to work and self-sufficiency program established under section 1148, and, to the extent possible, shall provide transitional employment in collaboration with entities providing, or arranging for the provision of, such other supports.

`(ff) Not more than 20 percent of the placements for a grantee shall be with a private for-profit company, except that such 20 percent limit may be waived by the Secretary for programs in rural areas when the grantee can demonstrate insufficient public and non-profit worksites. When a placement is made at a private for-profit company, the company shall pay 50 percent of program costs (including wages) for each participant, and the company shall agree, in writing, to hire each participant into an unsubsidized position at the completion of the agreed upon subsidized placement, or sooner, provided that the participant's job performance has been satisfactory. Not more than 5 percent of the workforce of a private for-profit company may be composed of transitional jobs participants.

`(IV) DEFINITION OF TRANSITIONAL JOBS PROGRAM- In this clause, the term `transitional jobs program' means a program that is intended to serve current and former recipients of assistance under a State or tribal program funded under this part and other low-income individuals who have been unable to secure employment through job search or other employment-related services because of limited skills, experience, or other barriers to employment.

`(iii) CAPITALIZATION- To develop capitalization procedures for the delivery of self-sustainable social services.

`(iv) ADMINISTRATIVE EXPENDITURES- Not more than 5 percent of the funds awarded to an eligible applicant under this paragraph may be used for administrative expenditures incurred in carrying out the activities described in clause (i), (ii), or (iii) or for expenditures related to carrying out the assessments and reports required under subparagraph (H).

`(F) DEFINITION OF ELIGIBLE INDIVIDUAL- In this paragraph, the term `eligible individual' means--

`(i) an individual who is a parent who is a recipient of assistance under a State or tribal program funded under this part;

`(ii) an individual who is a parent who has ceased to receive assistance under such a State or tribal program;

`(iii) an individual who is at risk of receiving assistance under a State or tribal program funded under this part;

`(iv) an individual with a disability; or

`(v) a noncustodial parent who is unemployed, or is having difficulty in paying child support obligations, including such a parent who is a former criminal offender.

`(G) APPLICATION- Each eligible applicant desiring a grant under this paragraph shall submit an application to the Secretaries at such time, in such manner, and accompanied by such information as the Secretaries may require.

`(H) ASSESSMENTS AND REPORTS BY GRANTEES-

`(i) IN GENERAL- An eligible applicant that receives a grant under this paragraph shall assess and report on the outcomes of programs funded under the grant, including the identity of each program operator, demographic information about each participant, including education level, literacy level, prior work experience and identified barriers to employment, the nature of education, training, or other services received by the participant, the reason for the participant's leaving the program, and outcomes related to the placement of the participant in an unsubsidized job, including 1-year employment retention, wage at placement, benefits, and earnings progression, as specified by the Secretaries.

`(ii) ASSISTANCE- The Secretaries shall--

`(I) assist grantees in conducting the assessment required under clause (i) by making available where practicable low-cost means of tracking the labor market outcomes of participants; and

`(II) encourage States to provide such assistance.

`(I) APPLICATION TO REQUIREMENTS OF THE STATE PROGRAM-

`(i) WORK PARTICIPATION REQUIREMENTS- With respect to any month in which a recipient of assistance under a State or tribal program funded under this part who satisfactorily participates in a business linkage or transitional jobs program described in subparagraph (E) that is paid for with funds made available under a grant made under this paragraph, such participation shall be considered to satisfy the work participation requirements of section 407 and be included for purposes of determining monthly participation rates under subsection (b)(1)(B)(i) of that section.

`(ii) PARTICIPATION NOT CONSIDERED ASSISTANCE- A benefit or service provided with funds made available under a grant made under this paragraph shall not be considered assistance for any purpose under a State or tribal program funded under this part.

`(J) ASSESSMENTS BY THE SECRETARIES-

`(i) RESERVATION OF FUNDS- Of the amount appropriated under subparagraph (L) for each of fiscal years 2004 and 2005, $3,000,000 of such amount for each such fiscal year is reserved for use by the Secretaries to prepare an interim and final report summarizing and synthesizing outcomes and lessons learned from the programs funded through grants awarded under this paragraph.

`(ii) INTERIM AND FINAL ASSESSMENTS- With respect to the reports prepared under clause (i), the Secretaries shall submit--

`(I) the interim report not later than 4 years after the date of enactment of the Business Links Act of 2003; and

`(II) the final report not later than 6 years after such date of enactment.

`(K) EVALUATIONS-

`(i) RESERVATION OF FUNDS- Of the amount appropriated under subparagraph (L) for a fiscal year, an amount equal to 1.5 percent of such amount for each such fiscal year shall be reserved for use by the Secretaries to conduct evaluations in accordance with the requirements of clause (ii).

`(ii) REQUIREMENTS- The Secretaries--

`(I) shall develop a plan to evaluate the extent to which programs funded under grants made under this paragraph have been effective in promoting sustained, unsubsidized employment for each group of eligible participants, and in improving the skills and wages of participants in comparison to the participants' skills and wages prior to participation in the programs;

`(II) may evaluate the use of such a grant by a grantee, as the Secretaries deem appropriate, in accordance with an agreement entered into with the grantee after good-faith negotiations; and

`(III) shall include, as appropriate, the following outcome measures in the evaluation plan developed under subclause (I):

`(aa) Placements in unsubsidized employment.

`(bb) Retention in unsubsidized employment 6 months and 12 months after initial placement.

`(cc) Earnings of individuals at the time of placement in unsubsidized employment.

`(dd) Earnings of individuals 12 months after placement in unsubsidized employment.

`(ee) The extent to which unsubsidized job placements include access to affordable employer-sponsored health insurance and paid leave benefits.

`(ff) Comparison of pre- and post-program wage rates of participants.

`(gg) Comparison of pre- and post-program skill levels of participants.

`(hh) Wage growth and employment retention in relation to occupations and industries at initial placement in unsubsidized employment and over the first 12 months after initial placement.

`(ii) Recipient of cash assistance under the State program funded under this part.

`(jj) Average expenditures per participant.

`(iii) REPORTS TO CONGRESS- The Secretaries shall submit to Congress the following reports on the evaluations of programs funded under grants made under this paragraph:

`(I) INTERIM REPORT- An interim report not later than 4 years after the date of enactment of the Business Links Act of 2003.

`(II) FINAL REPORT- A final report not later than 6 years after such date of enactment.

`(L) APPROPRIATION-

`(i) IN GENERAL- Out of any money in the Treasury of the United States not otherwise appropriated, there is appropriated for grants under this section, $200,000,000 for each of fiscal years 2004 through 2008.

`(ii) AVAILABILITY- Amounts appropriated under clause (i) for a fiscal year shall remain available for obligation for 5 fiscal years after the fiscal year in which the amount is appropriated.'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on October 1, 2003.

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