109th CONGRESS
1st Session
H. R. 26
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 4, 2005
Mr. PORTER (for himself, Mr. BOEHNER, Mr. MCKEON, and Mr. TIAHRT) introduced
the following bill; which was referred to the Committee on Education and the
Workforce
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 `Worker Reemployment Accounts Act of 2005'.
SEC. 2. GRANTS TO SUPPORT PERSONAL REEMPLOYMENT ACCOUNTS.
Section 171 of the Workforce Investment Act of 1998 is amended by adding at
the end the following:
`(e) Personal Reemployment Accounts-
`(1) DEFINITION- In this subsection, 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.
`(2) DEMONSTRATION PROJECT- In addition to the demonstration projects under
subsection (b), the Secretary may establish and implement a national demonstration
project designed to analyze and provide data on workforce training programs
that accelerate the reemployment of unemployed individuals, promote the
retention in employment of such individuals, and provide such individuals
with enhanced flexibility, choice, and control in obtaining intensive reemployment,
training, and supportive services.
`(A) IN GENERAL- In carrying out the demonstration project, the Secretary
shall make grants, on a competitive basis, to eligible entities to provide
personal reemployment accounts to eligible individuals. In awarding grants
under this subsection the Secretary shall take into consideration awarding
grants to eligible entities from diverse geographic areas, including rural
areas.
`(B) DURATION- The Secretary shall make the grants for periods of not
less than 2 years and may renew the grant for each of the succeeding 3
years.
`(4) ELIGIBLE ENTITY- In this subsection, the term `eligible entity' means--
`(B) a local board or consortium of local boards.
`(A) IN GENERAL- An eligible entity that receives a grant under this subsection
shall use the grant funds to provide, through a local area or areas, eligible
individuals with personal reemployment accounts. An eligible individual
may receive only 1 personal reemployment account.
`(B) GEOGRAPHIC AREA AND AMOUNT-
`(i) IN GENERAL- The eligible entity shall establish the amount of a
personal reemployment account for each eligible individual participating,
which shall be uniform throughout the area represented by the eligible
entity, and shall not exceed $3,000.
`(ii) OPTION FOR STATES- If the eligible entity is a State, the eligible
entity may choose to use the grant statewide, if practicable, or only
in specified local areas within a State.
`(C) ELIGIBLE INDIVIDUALS-
`(i) IN GENERAL- Each eligible entity shall establish eligibility criteria
for individuals for personal reemployment accounts in accordance with
this subparagraph.
`(ii) ELIGIBILITY CRITERIA REQUIREMENTS-
`(I) IN GENERAL- Subject to subclause (II), an individual shall be
eligible to receive a personal reemployment account under a grant
awarded under this subsection if, beginning after the date of enactment
of this subsection, the individual--
`(aa) is identified by the State pursuant to section 303(j)(1) of
the Social Security Act (42 U.S.C. 503(j)(1)) as likely to exhaust regular
unemployment compensation and in need of job search assistance to make a successful
transition to new employment, or the individual's unemployment can be attributed
in substantial part to unfair competition from Federal Prison Industries,
Incorporated;
`(bb) is receiving regular unemployment compensation under any Federal
or State unemployment compensation program administered by the State; and
`(cc) is eligible for not less than 20 weeks of regular unemployment
compensation described in item (bb).
`(II) ADDITIONAL ELIGIBILITY AND PRIORITY CRITERIA- An eligible entity
may establish criteria that are in addition to the criteria described
in subclause (I) for the eligibility of individuals to receive a personal
reemployment account under this subsection. An eligible entity may
also establish criteria for priority in the provision of a personal
reemployment account to such eligible individuals under a grant awarded
under this subsection.
`(I) PREVIOUSLY IDENTIFIED AS LIKELY TO EXHAUST UNEMPLOYMENT COMPENSATION-
`(aa) IN GENERAL- At the option of the eligible entity, and subject
to item (bb), an individual may be eligible to receive a personal reemployment
account under this subsection if the individual--
`(AA) during the 13-week period ending the week prior to the date of the
enactment of the subsection, was identified by the State pursuant to section
303(j)(1) of the Social Security Act (42 U.S.C. 503(j)(1)) as likely to exhaust
regular unemployment compensation and in need of job search assistance to
make a successful transition to new employment; and
`(BB) otherwise meets the requirements of clause (ii)(I)(bb) and (cc).
`(bb) ADDITIONAL ELIGIBILITY AND PRIORITY CRITERIA- An eligible entity
may establish criteria that is in addition to the criteria described in item
(aa) for the eligibility of individuals to receive a personal reemployment
account under this subsection. An eligible entity may also establish criteria
for priority in the provision of such accounts to such eligible individuals
under this subsection.
`(II) PREVIOUSLY EXHAUSTED UNEMPLOYMENT COMPENSATION- At the option
of the eligible entity, an individual may be eligible to receive a
personal reemployment account under a grant awarded under this subsection
if the individual--
`(aa) during the 26-week period ending the week prior to the date
of the enactment of this subsection, exhausted all rights to any unemployment
compensation; and
`(bb)(AA) 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--
`(BB) 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 2-year period ending on the date of the
determination of eligibility of the individual under this subparagraph.
`(iv) NO INDIVIDUAL ENTITLEMENT- Nothing in this subsection shall be
construed to entitle any individual to receive a personal reemployment
account.
`(i) INFORMATION AND ATTESTATION- Prior to the establishment of a personal
reemployment account for an eligible individual, the eligible entity
receiving a grant, through the one-stop delivery system in the participating
local area or areas, shall ensure that the individual--
`(I) 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 in paragraph (7)(A)(iii)
and a description of such services, and the conditions for receiving
a reemployment bonus;
`(II) 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
`(III) signs an attestation that the individual has been given the
option to develop a personal reemployment plan in accordance with
subclause (II), will comply with the requirements under this subsection
relating to the personal reemployment accounts, and will reimburse
the account or, if the account has been terminated, the grant awarded
under this subsection, for any amounts expended from the account that
are not allowable.
`(ii) 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.
`(iii) USE OF PERSONAL REEMPLOYMENT ACCOUNTS- The eligible entity receiving
a grant shall ensure that eligible individuals receiving a personal
reemployment account use the account in accordance with paragraph (7).
`(6) APPLICATION FOR GRANTS- To be eligible to receive a grant under this
subsection, an eligible entity shall submit an application to the Secretary
at such time, in such manner, and containing such information as the Secretary
may require, including--
`(A) if the eligible entity is a State--
`(i) assurance that the application was developed in conjunction with
the local board or boards and chief elected officials where the personal
reemployment accounts shall be made available; and
`(ii) a description of the methods and procedures for providing funds
to local areas where the personal reemployment accounts shall be made
available; and
`(B) a description of the criteria and methods to be used for determining
eligibility for the personal reemployment account, including whether the
eligible entity intends to include the optional categories described in
paragraph (5)(C)(iii), and the additional criteria and priority for service
that the eligible entity intends to apply, if any, pursuant to paragraph
(5)(C)(ii)(II);
`(C) a description of the methods or procedures to be used to provide
eligible individuals information relating to services and providers;
`(D) a description of safeguards to ensure that funds from the personal
reemployment accounts are used for purposes authorized under this subsection
and to ensure the quality and integrity of services and providers, consistent
with the purpose of providing eligible individuals with enhanced flexibility,
choice, and control in obtaining intensive reemployment, training, and
supportive services;
`(E) a description of how the eligible entity will coordinate the activities
carried out under this subsection with the employment and training activities
carried out under section 134 and other activities carried out by local
boards through the one-stop delivery system in the State or local area;
and
`(F) an assurance that the eligible entity will comply with any evaluation
and reporting requirements the Secretary may require.
`(7) USE OF PERSONAL REEMPLOYMENT ACCOUNTS-
`(A) ALLOWABLE ACTIVITIES-
`(i) IN GENERAL- Subject to the requirements contained in clauses (ii)
and (iii), a recipient of a personal reemployment account may use amounts
in a personal reemployment account to purchase 1 or more of the following:
`(I) Intensive services, including those type of services specified
in section 134(d)(3)(C).
`(II) Training services, including those types of services specified
in section 134(d)(4)(D).
`(III) Supportive services, except for needs related payments.
`(ii) DELIVERY OF SERVICES- The following requirements relating to delivery
of services shall apply to the grants under this subsection:
`(I) Recipients may use funds from the personal reemployment account
to purchase the services described in clause (i) through the one-stop
delivery system on a fee-for-service basis, or through other providers,
consistent with the safeguards described in paragraph (6)(D).
`(II) The eligible entity, through the one-stop delivery system in
the participating local area, 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.
`(III) Each eligible entity, through the one-stop delivery system
in the participating local area, 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 clause (i),
and information relating to occupations in demand in the local area.
`(iii) LIMITATIONS- The following limitations shall apply with respect
to personal reemployment accounts under this subsection:
`(I) Amounts in a personal reemployment account may be used for up
to 1 year from the date of the establishment of the account.
`(II) Each recipient shall submit cost documentation as required by
the one-stop delivery system.
`(III) 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 clause (ii)(I).
`(IV) Amounts in a personal reemployment account shall be nontransferable.
`(i) IN GENERAL- Subject to clause (ii)--
`(I) if a recipient determined eligible under paragraph (5)(C)(ii)
obtains full-time employment before 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
`(II) if a recipient determined eligible under paragraph (5)(C)(iii)
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.
`(ii) LIMITATIONS- The following limitations shall apply with respect
to a recipient described in clause (i):
`(I) 60 percent of the remaining personal reemployment account balance
shall be paid to the recipient at the time of employment.
`(II) 40 percent of the remaining personal reemployment account shall
be paid to the recipient after 26 weeks of employment retention.
`(iii) EXCEPTION REGARDING SUBSEQUENT EMPLOYMENT- If a recipient described
in clause (i) subsequently becomes unemployed due to a lack of work
after receiving the portion of the reemployment bonus specified under
clause (ii)(I), the individual may use the amount remaining in the personal
reemployment account for the purposes described in subparagraph (A)
but may not be eligible for additional cash payments under this subparagraph.
`(8) PROGRAM INFORMATION AND EVALUATION-
`(A) INFORMATION- The Secretary may require from eligible entities the
collection and reporting on such financial, performance, and other program-related
information as the Secretary determines is appropriate to carry out this
subsection, including the evaluation described in subparagraph (B).
`(i) IN GENERAL- The Secretary, pursuant to the authority provided under
section 172, shall, directly or through grants, contracts, or cooperative
agreement with appropriate entities, conduct an evaluation of the activities
carried out under any grants awarded under this subsection.
`(ii) 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 account as a mechanism to assist individuals in obtaining
and retaining employment.'.
END
