Worker Reemployment Accounts Act of 2004 - Amends the Workforce Investment Act of 1998 to authorize the Secretary of Labor to establish and implement a national demonstration project on personal reemployment accounts (PRAs).
Directs the Secretary to make competitive grants for such project to States or local boards or consortia to provide PRAs to eligible individuals.
Makes eligible for a PRA, in a designated State or local area, individuals who: (1) are identified as likely to exhaust unemployment compensation and in need of job search assistance to make a successful transition to new employment (or if their unemployment can be attributed in substantial part to unfair competition from Federal Prison Industries, Incorporated); (2) are receiving regular unemployment compensation under any Federal or State unemployment compensation program administered by the State; and (3) are eligible for at least 20 weeks of regular unemployment compensation.
Allows PRAs to be used to purchase intensive services, training services, or supportive services through the one-stop delivery system on a fee-for-service basis, or through other providers, consistent with specified safeguards. Provides cash reemployment bonuses, consisting of the balance of their PRAs, to recipients who obtain full-time employment before the end of the 13th week of unemployment for which compensation is paid.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4444 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4444
To amend the Workforce Investment Act of 1998 to establish a Personal
Reemployment Accounts pilot grant program to assist Americans in
returning to work.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 20, 2004
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 pilot 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
2004''.
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.
``(3) Grants.--
``(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--
``(A) a State; or
``(B) a local board or consortium of local boards.
``(5) Use of funds.--
``(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.
``(iii) Transition rule.--
``(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.
``(D) Limitations.--
``(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.
``(B) Reemployment bonus.--
``(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).
``(B) Evaluation.--
``(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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
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