To amend title IV of the Social Security Act to create a competitive self-sustainable social services grant program to provide workforce development opportunities and training to people with barriers to employment under the program of block grants to States for temporary assistance for needy families, and for other purposes.

Summary: Capitalizing Workforce Development Act of 2012 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to direct the Secretary of Health and Human Services (HHS) to award competitive grants to support the purchase, renovation, construction, or lease and improvement of real property to be used by qualified self-sustaining job programs that provide job training, job placement, or other employment-related services to individuals with employment challenges.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Capitalizing Workforce Development 
Act of 2012''.

SEC. 2. JOB TRAINING RESOURCES GRANT PROGRAM.

    (a) In General.--Section 403(a) of the Social Security Act (42 
U.S.C. 603(a)) is amended by adding at the end the following :
            ``(6) Job training resources grants.--
                    ``(A) Use of funds.--The Secretary shall use the 
                funds made available under subparagraph (F) to award 
                grants to eligible applicants on a competitive basis 
                for the purpose of supporting the purchase, renovation, 
                construction, or lease and improvement of real property 
                to be used by qualified self-sustaining job programs.
                    ``(B) Qualified self-sustaining job program.--For 
                purposes of this paragraph, the term `qualified self-
                sustaining job program' means a program which--
                            ``(i) provides job training, job placement, 
                        or other employment-related services to 
                        individuals with employment challenges; and
                            ``(ii) except for funds made available 
                        under this paragraph for the expenses described 
                        in subparagraph (A), does not require Federal 
                        funds for programmatic or administrative 
                        expenses relating to the provision of the 
                        services described in clause (i).
                Nothing in this subparagraph shall prohibit any 
                applicant or grantee under this paragraph from 
                participating in any other Federal program.
                    ``(C) Priority.--In awarding grants under this 
                paragraph, the Secretary shall give priority to 
                eligible applicants that demonstrate significant 
                successful experience in establishing qualified self-
                sustaining job programs or, in the case of an eligible 
                applicant described in subparagraph (D)(i), that 
                include among their membership one or more local 
                organizations that have been awarded a grant under 
                section 413(h)(3)(A).
                    ``(D) Eligible applicant.--For purposes of this 
                paragraph, the term `eligible applicant' means--
                            ``(i) a national organization which is 
                        described in section 501(c)(3) of the Internal 
                        Revenue Code of 1986 and is exempt from tax 
                        under section 501(a) of such Code, the mission 
                        of which is to provide employment-related 
                        services to individuals with employment 
                        challenges;
                            ``(ii) a State or political subdivision 
                        thereof; or
                            ``(iii) an Indian tribe or tribal 
                        organization.
                    ``(E) Grant conditions and requirements.--
                            ``(i) Job placement performance goals.--
                        Each award of a grant under this paragraph 
                        shall be conditioned upon the establishment by 
                        the Secretary, in coordination with the 
                        grantee, of--
                                    ``(I) the job placement performance 
                                goals for each qualified self-
                                sustaining job program operated by the 
                                grantee that will receive the grant 
                                funds (or the subgrantee under clause 
                                (iii), if any); and
                                    ``(II) the performance assessment 
                                dates (not earlier than 1 year after 
                                the date the grant is awarded to the 
                                grantee) on which the achievement of 
                                such goals will be measured by the 
                                Secretary.
                            ``(ii) Protection of federal interest.--For 
                        all real property purchased, renovated, 
                        constructed, or improved using funds made 
                        available under this paragraph, the Secretary 
                        shall ensure the protection of the Federal 
                        Government's interest in such real property in 
                        such manner as may be prescribed by the 
                        Secretary.
                            ``(iii) Subawards.--An eligible applicant 
                        described in subparagraph (D)(i) that receives 
                        funds made available under this paragraph shall 
                        distribute such funds among its local member 
                        organizations to carry out the purposes 
                        described in subparagraph (A) with respect to 
                        qualified self-sustaining job programs.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury not otherwise appropriated, there are 
                appropriated $200,000,000 for grants under this 
                paragraph for fiscal year 2013, to remain available 
                through fiscal year 2016.''.
    (b) Recapture Penalty.--
            (1) In general.--Section 409(a) of the Social Security Act 
        (42 U.S.C. 609(a)) is amended by adding at the end the 
        following:
            ``(17) Penalty for failure to meet job placement 
        performance goals of qualified self-sustaining job program.--
                    ``(A) In general.--If the Secretary determines that 
                a recipient of funds under section 403(a)(6) has failed 
                to meet the job placement performance goals established 
                under section 403(a)(6)(E)(i) as of any performance 
                assessment date established under section 
                403(a)(6)(E)(i)(II), the Secretary shall require 
                repayment of such funds to the Treasury in a 
                proportional amount to the degree of such failure.
                    ``(B) Timing of repayment.--The payments required 
                by subparagraph (A) shall be made over the 10-fiscal-
                year period beginning with the date the Secretary makes 
                the determination under subparagraph (A). No interest 
                shall accrue with respect to such payments.
                    ``(C) Election to comply.--With the consent of the 
                Secretary, in lieu of the payments required by 
                subparagraph (A), the recipient of funds may elect to 
                come into compliance with the job placement performance 
                goals established under section 403(a)(6)(E)(i). Such 
                compliance shall be demonstrated in such manner and in 
                such time as the Secretary shall prescribe.
                    ``(D) Failure by state.--In the case of a State 
                that is subject to a penalty under this paragraph, in 
                lieu of the payments required by subparagraph (A), the 
                Secretary may reduce the grant payable to such State 
                under section 403(a)(1) in the same amount and over the 
                same 10-fiscal-year period that such payments would 
                have been made.
                    ``(E) Nonapplicability of state penalty 
                limitations.--Subsections (c) and (d) shall not apply 
                in the case of any penalty under this paragraph, except 
                for a penalty with respect to which reductions are made 
                under subparagraph (D).''.
            (2) Exclusion from state reasonable cause exception.--
        Section 409(b)(2) of the Social Security Act (42 U.S.C. 
        609(b)(2)) is amended by striking ``or (13)'' and inserting 
        ``(13), or (17)''.

[SEC. 3. OFFSET TO ENSURE PAYGO COMPLIANCE.

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