Unemployment Insurance Reemployment Demonstration Projects Act

Unemployment Insurance Reemployment Demonstration Projects Act - Title I: Basic Demonstration Project Requirements and Service Delivery System - Directs the Secretary of Labor (the Secretary) to establish, before July 1, 1988, and carry out demonstration projects during FY 1988 through 1990 to assist at least five States in the following ways. Requires such projects to determine methods of identifying, early during their unemployment insurance (UI) entitlement period, dislocated UI recipients (defines dislocated UI recipients as dislocated workers who are receiving unemployment compensation payments, likely to exhaust such unemployment insurance benefits, and likely to have difficulty becoming reemployed in a similar job). Requires such projects to develop model integrated service delivery systems for providing: (1) screening of unemployment insurance recipients to identify dislocated UI recipients; (2) intake of dislocated UI recipients; and (3) referral of such individuals to early intervention reemployment services. Requires such projects to demonstrate the effectiveness of such services under a variety of conditions. Requires such projects to demonstrate new or innovative methods of facilitating rapid reemployment of dislocated UI recipients, including relocation assistance, reemployment bonuses, self-employment allowances, and economic adjustment allowances. Requires such projects to evaluate activities under this Act.

Requires such projects to be carried out pursuant to cooperative agreements with States. Sets forth characteristics of such agreements.

Directs the Secretary to enter into cooperative agreements, to be effective for a three-year period, with at least five States that meet specified conditions. Directs the Secretary to give priority consideration to States that meet specified selection criteria.

Directs the Secretary to certify to the Secretary of the Treasury any State with which an agreement is entered under this Act. Directs the Secretary of the Treasury to make payments to each certified State, out of the employment security administration account of the Unemployment Trust Fund. Requires such Federal share to equal 80 percent of the cost of the demonstration project. Requires the State to provide its share in a separate State account for exclusive use by the project. Limits administrative expenses to 25 percent of the funds expended on such projects. Limits to $50,000,000 for any fiscal year the maximum amount which may be paid out of the employment security administration account to carry out this Act. Waives restrictions, under the Social Security Act and the Internal Revenue Code, on the use of funds from the employment security administration account of the Unemployment Trust Fund.

Sets forth requirements for the integrated service delivery system put into place by the State agency for the demonstration project established pursuant to an agreement. Requires such system to establish a screening, intake, and referral mechanism in local unemployment insurance offices to: (1) identify UI recipients who have been dislocated from their previous jobs; (2) inform such recipients of reemployment services available under the demonstration; and (3) refer them to the New Start program no later than the sixth week of their unemployment period. Requires such system to establish a New Start program in public employment service offices providing an initial sequence of reemployment services to dislocated UI recipients, before assistance with job search, training, or other services, that includes: (1) orientation services; (2) vocational and aptitude testing; (3) a job search workshop emphasizing job-seeking skills; (4) individualized assessment; (5) vocational and career counseling; and (6) assistance in developing an individualized employability plan. Requires such system to approve for each dislocated UI recipient an individualized employability plan which sets forth an employment objective and describes the reemployment services to be provided to enable such individual to obtain long-term unsubsidized employment. Requires such system to implement such plans by providing such recipients with additional reemployment services as prescribed in such plans, such as assistance with job search, training, or other allowable demonstration services.

Requires such system to integrate, in specified ways, reemployment services currently available to dislocated workers in the State, including services available from the unemployment insurance service, the public employment service, service delivery areas, private industry councils established under the Job Training Partnership Act (JTPA), and trade adjustment assistance.

Requires such system to enhance the usefulness of job training services currently provided in substate areas under the JTPA for dislocated UI recipients, who need to enter training as early in the unemployment insurance entitlement period as possible, by providing for: (1) occupational skill training provided on an open-entry, open-exit basis; (2) occupational skill training provided under an individually paced format; and (3) on-the-job training vouchers that enable individuals to develop their own on-the-job training positions with private sector firms. Requires such system to demonstrate at least one new or innovative service designed to promote rapid reemployment of dislocated UI recipients, including: (1) relocation assistance; (2) reemployment bonuses; (3) self-employment allowances; and (4) economic adjustment allowances.

Directs the Secretary to assist in developing and implementing demonstration projects by providing States with: (1) information on exemplary dislocated worker programs, methods, and practices nationwide and state-of-the-art research; and (2) technical assistance with the development and implementation of demonstration services and procedures, including the training of demonstration project staff.

Requires each State which receives payments under this title to report to the Secretary for each fiscal year for which payment is made. Sets forth required contents of such reports. Directs the Secretary to report to the Congress for each fiscal year for which a demonstration project is carried out under this Act. Sets forth required contents of such report. Directs the Secretary to provide for an evaluation of demonstration projects conducted in each State. Requires such evaluation to be designed to make specified determinations.

Title II: Reemployment Services and Special Provisions - Sets forth allowable demonstration reemployment services which may be received in any combination by an individual determined to be a dislocated UI recipient by the screening mechanism, following completion of the New Start sequence of services and upon approval of an individualized employability development plan. Lists such services as follows: (1) self-directed job search assistance, including resource centers and counselor follow-up activities; (2) job clubs; (3) occupational skill training (classroom training) for occupations in which demand exceeds supply in the individual's local labor market area; (4) on-the-job training, including vouchers; (5) basic education; (6) entrepreneurial training and technical assistance; (7) relocation assistance, including both out-of-area job search and relocation allowances; (8) self-employment allowances; (9) reemployment bonuses; (10) economic adjustment allowances; (11) labor market information; (12) vocational, career, and financial counseling; (13) job matching and referral services, including use of validity generalization techniques; (14) job placement services; and (15) supportive services, including transportation, child care, and other reasonable project participation expenses.

Requires participating States, in cooperation with local private industry councils, to provide for the establishment of two or more of the following business services: (1) enhanced job matching and referral services, to help ensure the proper referral of participants to job openings; (2) labor market surveys to determine local business needs for qualified applicants in particular occupations, and to ensure that training is provided in occupations that are in demand locally and in a manner consistent with local standards for specific occupations; (3) expedited arrangements for on-the-job training contracts with private employers aimed at simplifying on-the-job training paperwork and reducing turnaround time in processing contracts; (4) customized job training courses aimed at providing a particular business with workers who have been trained to perform a specific job in that specific firm; and (5) outreach efforts to the local business community to determine other business needs and ways in which the demonstration project can help meet those needs.

Sets forth conditions under which dislocated UI recipients may be provided with the following types of reemployment services: (1) relocation assistance, including out-of-area job search and relocation allowances; (2) self-employment allowances; (3) reemployment bonuses; and (4) economic adjustment allowances.

Makes State and Federal requirements relating to availability for work, active search for work, or refusal to accept suitable work inapplicable to individuals who enroll for training or retraining services in accordance with procedures established by the State, or who have been authorized by the State to enroll in such services, in projects conducted under this Act.

Title III: Extended Benefits for Individuals Receiving Training - Requires participating States to establish an extended compensation account, in addition to any other Federal or State unemployment compensation account established for the individual, for each dislocated UI recipient who enrolls or has been authorized to enroll for training or retraining services in projects conducted under this Act.

Establishes in such account an amount up to 30 times the amount the individual would receive as a weekly benefit of regular unemployment compensation if eligible for such compensation.

Permits weekly payments from such account only during a period in which the individual: (1) has exhausted all other Federal or State unemployment compensation benefits; and (2) is successfully participating, or has been authorized to enroll in, training or retraining services.

Provides for payment from the extended unemployment compensation account established under the Social Security Act to each State of an amount equal to one-half of the sum of the amounts paid to individuals under this title. Authorizes appropriations to the extended unemployment compensation account in amounts necessary to carry out this title.