Worker Recovery Act of 2005 - Amends the Workforce Investment Act of 1998 to establish a temporary program to provide worker recovery accounts to workers affected by a Gulf hurricane disaster.
Directs the Secretary of Labor to make grants to eligible entities to provide such accounts to eligible individuals affected by Hurricane Katrina or Hurricane Rita, in order to meet such individuals' employment and training needs.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3976 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3976
To accelerate the reemployment and employment of individuals affected
by Hurricanes Katrina and Rita by establishing grants to eligible
entities to provide worker recovery accounts to eligible individuals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 6, 2005
Mr. Boustany (for himself, Mr. Boehner, Mr. McKeon, Mr. Wilson of South
Carolina, Mr. Porter, Mr. Jindal, Mr. Alexander, Mr. Baker, Mr.
McCrery, and Mr. Pickering) introduced the following bill; which was
referred to the Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To accelerate the reemployment and employment of individuals affected
by Hurricanes Katrina and Rita by establishing grants to eligible
entities to provide worker recovery accounts to eligible individuals.
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 Recovery Act of 2005''.
SEC. 2. PURPOSES.
The purposes of this act are to accelerate the reemployment and
employment of individuals affected by Hurricanes Katrina and Rita, and
provide such individuals with enhanced flexibility, choice, and control
in obtaining intensive reemployment, training, and supportive services.
SEC. 3. GRANTS TO SUPPORT WORKER RECOVERY ACCOUNTS.
Subtitle F of title I of the Workforce Investment Act of 1998 (29
U.S.C. 2801 et seq.) is amended by redesignating subtitle F as subtitle
G and inserting after subtitle E the following:
``Subtitle F--Temporary Program to Provide Worker Recovery Accounts to
Workers Affected by a Gulf Hurricane Disaster
``SEC. 196. ESTABLISHMENT OF WORKER RECOVERY ACCOUNTS GRANT PROGRAM.
``(a) In General.--The Secretary shall make grants to eligible
entities to provide worker recovery accounts to eligible individuals in
accordance with this subtitle in order to meet the employment and
training needs of individuals affected by Hurricane Katrina or
Hurricane Rita.
``(b) Eligible Entities.--For purposes of this subtitle, an
eligible entity means--
``(1) the States of Louisiana, Mississippi, Alabama, and
Texas;
``(2) States to which a significant number of individuals
described in subsection (d)(2)(A)(i) and (ii) have relocated;
and
``(3) a local board or a consortium of local boards
established in a local area or areas--
``(A) within the boundaries of which is an area
that has been declared a major disaster under section
401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170) as a result
of Hurricane Katrina or Hurricane Rita and where the
President has determined payment of assistance under
section 410(a) of such Act is warranted; or
``(B) to which a significant number of individuals
described in subsection (d)(2)(A)(i) and (ii) have
relocated.
``(c) Use of Grant Funds.--
``(1) In general.--An eligible entity that receives a grant
under this subtitle shall use the grant funds to provide,
through a local area or areas, eligible individuals with worker
recovery accounts. An eligible individual may receive only 1
worker recovery account.
``(2) Amount in accounts.--The eligible entity shall
establish the amount to be provided for each worker recovery
account, which shall be uniform throughout the State or local
area and shall not be in excess of $5,000.
``(3) Limitation on administrative costs.--Of the amount
awarded to an eligible entity under a grant under this
subtitle, not more than 5 percent of the amount may be used for
the costs of administration.
``(d) Eligible Individuals.--
``(1) In general.--Each eligible entity shall establish
eligibility criteria for individuals for worker recovery
accounts in accordance with this subsection.
``(2) Eligibility criteria requirements.--
``(A) In general.--An individual shall be eligible
to receive a worker recovery account under a grant
awarded under this subtitle if the individual--
``(i)(I) was employed in a county in
Mississippi or Alabama, or a parish in
Louisiana, where a major disaster has been
declared under section 401 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) as a result of
Hurricane Katrina and where the President has
determined payment of assistance under section
410(a) of such Act is warranted; or
``(II) was employed in a county in Texas or
a parish in Louisiana where a major disaster
has been declared under section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act as a result of
Hurricane Rita and where the President has
determined payment of assistance under section
410(a) of such Act is warranted;
``(ii) has lost the employment described in
clause (i) as a direct result of a Hurricane
Katrina or Hurricane Rita; and
``(iii) either
``(I)(aa) has been 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;
``(bb) is receiving regular
unemployment compensation as
defined in section 205(2) of
the Federal-State Extended
Unemployment Compensation Act
of 1970; and
``(cc) filed the claim for
unemployment compensation not
later than 9 months after the
declaration of the major
disaster described in clause
(i); or
``(II) is receiving disaster
unemployment assistance under section
410(a) of the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5177(a)).
``(B) Additional eligibility and priority
criteria.--An eligible entity may establish criteria
that are in addition to the criteria described in
subparagraph (A) for the eligibility of individuals to
receive a worker recovery account under this subtitle.
An eligible entity may also establish criteria for
priority in the provision of a worker recovery account
to such eligible individuals under a grant awarded
under this subtitle.
``(3) No individual entitlement.--Nothing in this subtitle
shall be construed to entitle any individual to receive a
worker recovery account.
``(e) Administration.--
``(1) Information and attestation.--Prior to the
establishment of a worker recovery 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--
``(A) is informed of the requirements applicable to
the worker recovery account, including the allowable
uses of funds from the account, the limitations on
access to services described in section 196B and a
description of such services, and the conditions for
receiving a reemployment bonus;
``(B) has the option to develop a worker recovery
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 has
been given the option to develop a worker recovery plan
in accordance with subparagraph (B), will comply with
the requirements under this subtitle relating to the
worker recovery accounts, and will reimburse the
account or, if the account has been terminated, the
grant awarded under this subtitle, 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 worker recovery 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.
``(3) Use of worker recovery accounts.--The eligible entity
receiving a grant shall ensure that eligible individuals
receiving a worker recovery account use the account in
accordance with section 196B.
``SEC. 196A. APPLICATION FOR GRANTS.
``To be eligible to receive a grant under this subtitle, 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 at a minimum--
``(1) if the eligible entity is a State--
``(A) assurance that the application was developed
in conjunction with the local board or boards and chief
elected officials where the worker recovery accounts
shall be made available; and
``(B) a description of the methods and procedures
for providing funds, including administrative funds, to
local areas where the worker recovery accounts shall be
made available;
``(2) a description of the criteria and methods to be used
for determining eligibility for the worker recovery account,
including the additional criteria and priority for service that
the eligible entity intends to apply, if any, pursuant to
section 196(d)(2)(B);
``(3) a description of the methods or procedures to be used
to provide eligible individuals information relating to
services and providers;
``(4) a description of safeguards to ensure that funds from
the worker recovery accounts are used for purposes authorized
under this subtitle 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;
``(5) a description of how the eligible entity will
coordinate the activities carried out under this subtitle 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
``(6) an assurance that the eligible entity will comply
with any evaluation and reporting requirements the Secretary
may require.
``SEC. 196B. USE OF WORKER RECOVERY ACCOUNTS.
``(a) Allowable Activities.--
``(1) In general.--Subject to the requirements contained in
paragraphs (2) and (3), a recipient of a worker recovery
account may use amounts in a worker recovery account to
purchase 1 or more of the following:
``(A) Intensive services, including those type 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) and relocation assistance.
``(2) Delivery of services.--The following requirements
relating to delivery of services shall apply to the grants
under this subtitle:
``(A) Recipients may use funds from the worker
recovery 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 the safeguards described in section
196A(d).
``(B) The eligible entity, through the one-stop
delivery system in the participating local area or
areas, may pay costs for such services directly on
behalf of the recipient, through a voucher system,
through arrangements with private financial
institutions, or by reimbursement to the recipient upon
receipt of appropriate cost documentation.
``(C) Each eligible entity, through the one-stop
delivery system in the participating local area or
areas, shall make available to recipients information
on training providers, including information 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), including child care, and information
relating to occupations in demand in the local area and
occupations in demand in the home State of an
individual who has relocated.
``(3) Limitations.--The following limitations shall apply
with respect to worker recovery accounts under this subtitle:
``(A) Amounts in a worker recovery account may be
used for up to 1 year from the date of the
establishment of the account.
``(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 title I of this Act except on a fee-for-
services basis as specified in paragraph (2)(A).
``(D) Amounts in a worker recovery account shall be
nontransferable.
``(b) Reemployment Bonus.--
``(1) In general.--Subject to paragraph (2), if a recipient
determined eligible under section 196(d) obtains full-time
employment before the 13th week of unemployment for which
unemployment compensation (including disaster unemployment
assistance) is paid, or if such individual was already
receiving unemployment compensation (including disaster
unemployment assistance) on the date of enactment of this
subtitle and obtains full-time employment before the 13th week
after the week in which the worker recovery account is
established, the balance of his or her worker recovery account
in an amount not to exceed $1,000 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 worker recovery
account balance as determined under paragraph (1), up
to a maximum of $600, shall be paid to the recipient at
the time of employment.
``(B) 40 percent of the remaining worker recovery
account balance as determined under paragraph (1), up
to a maximum of $400, shall be paid to the recipient
after 26 weeks of employment retention.
``(3) Exception regarding subsequent employment.--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 worker recovery
account for the purposes described in subsection (a) but may
not be eligible for additional cash payments under this
subparagraph.
``SEC. 196C. PROGRAM INFORMATION AND EVALUATION.
``(a) Information.--The Secretary may require eligible entities
receiving a grant under this subtitle to collect and report on such
financial, performance, and other program-related information as the
Secretary determines is appropriate to carry out this subtitle,
including the evaluation described in subsection (b).
``(b) Evaluation.--
``(1) In general.--The Secretary, pursuant to the authority
provided in 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 subtitle.
``(2) Report.--The Secretary shall report to Congress
relating to the results of the evaluations required under
paragraph (1), which shall include any recommendations the
Secretary deems appropriate with respect to the use of worker
recovery account as a mechanism to assist individuals in
obtaining and retaining employment.
``SEC. 196D. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subtitle $650,000,000 for fiscal year 2006.
``(b) Availability of Funds.-- Funds authorized under this subtitle
shall be available for obligation upon the date of enactment of the
appropriation and shall remain available for obligation until September
30, 2006 and for expenditure until September 30, 2007.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on 21st Century Competitiveness.
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