Economic Recovery On-the-Job Training Act of 2013

Summary: Economic Recovery On-the-Job Training Act of 2013 - Amends the Workforce Investment Act of 1998 to require the Secretary of Labor to make discretionary grants to state and local boards for adult on-the-job training or dislocated worker on-the-job training programs within economically disadvantaged areas and extremely economically disadvantaged areas. Requires the Secretary to ensure that state and local boards within extremely economically disadvantaged areas receive 25% more authorized grant funds than those within economically disadvantaged areas. Defines &quot;economically disadvantaged area&quot; to mean any area for which there is a single five-digit postal zip code, and which includes any portion of a census tract where the median annual household income is less than $40,000 per year. Defines &quot;extremely economically disadvantaged area&quot; similarly, except for a median annual household income of less than $32,000 per year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Recovery On-the-Job 
Training Act of 2013''.

SEC. 2. ON-THE-JOB TRAINING FOR ECONOMICALLY DISADVANTAGED AREAS.

    (a) Amendment to the Workforce Investment Act of 1998.--The 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.) is amended by 
inserting after section 173A (29 U.S.C. 2918a) the following:

``SEC. 173B. ON-THE-JOB TRAINING FOR ECONOMICALLY AND EXTREMELY 
              ECONOMICALLY DISADVANTAGED AREAS.

    ``(a) Definitions.--As used in this section--
            ``(1) the term `economically disadvantaged area' means an 
        area for which there is a single 5-digit postal zip code, and 
        which includes any portion of a census tract in which the 
        median annual household income is less than $40,000 per year;
            ``(2) the term `extremely economically disadvantaged area' 
        means any area which there is a single 5-digit postal zip code, 
        and includes any portion of a census tract in which the median 
        household income is less than $32,000 per year; and
            ``(3) the term `median household income' means the median 
        annual household income as determined by the 2010 census and as 
        updated by the American Community Survey of the Bureau of the 
        Census.
    ``(b) Grants.--
            ``(1) In general.--From the amounts made available under 
        subsection (h), and subject to paragraph (2) and subsection 
        (d), the Secretary shall make grants, on a discretionary basis, 
        to State and local boards, for adult on-the-job training, or 
        dislocated worker on-the-job training, carried out under 
        section 134 and for State and local board functions described 
        in subsection (f) within economically disadvantaged areas and 
        extremely economically disadvantaged areas.
            ``(2) Extremely economically disadvantaged areas.--In 
        making grants under this subsection for a fiscal year, the 
        Secretary shall ensure that of the amount made available under 
        subsection (h) for such fiscal year, the Secretary uses 25 
        percent more of such funds to make grants to State and local 
        boards located within extremely economically disadvantaged 
        areas than to such boards located within economically 
        disadvantaged areas.
    ``(c) Application.--To be eligible to receive a grant under 
subsection (b), a State or a local board shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require. In preparing such an 
application for a grant under subsection (b), a local board shall 
consult with the corresponding State.
    ``(d) Reimbursement of Wage Rates.--Notwithstanding the limitation 
in section 101(31)(B), in making the grants described in subsection 
(b), the Secretary may allow for higher levels of reimbursement of wage 
rates the Secretary determines are appropriate based on factors such 
as--
            ``(1) employer size, in order to facilitate the 
        participation of small- and medium-sized employers;
            ``(2) target populations, in order to enhance job creation 
        for persons with barriers to employment; and
            ``(3) the number of employees that will participate in the 
        on-the-job training, the wage and benefit levels of the 
        employees (before the training and anticipated on completion of 
        the training), the relationship of the training to the 
        competitiveness of the employer and employees, and the 
        existence of other employer-provided training and advancement 
        opportunities.
    ``(e) Administration by Secretary.--The Secretary may use an amount 
that is not more than 1 percent of the funds made available under 
subsection (h) for the administration, management, and oversight of the 
programs, activities, and grants, funded under subsection (b), 
including the evaluation of, and dissemination of information on 
lessons learned through, the use of such funds.
    ``(f) State Oversight and Monitoring.--A local board that receives 
a grant under subsection (b) and is located in a State, shall provide 
not less than 5 percent of the grant funds to the State for State 
functions described in sections 136(f), 184, and 185.
    ``(g) Rule of Construction.--Nothing in this section shall be 
construed to affect the manner in which subtitle B is implemented, for 
activities funded through amounts appropriated under section 137.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2014 and each subsequent fiscal year.
    ``(i) Areas Not Within Census Tracts.--In the case of an area which 
is not tracted for population census tracts, the equivalent county 
divisions (as defined by the Bureau of the Census for purposes of 
defining poverty areas) shall be used for purposes of determining 
median annual household income.''.
    (b) Table of Contents Amendment.--The table of contents in section 
1(b) of the Workforce Investment Act of 1998 (20 U.S.C. 9201 note) is 
amended by inserting after the item relating to section 173A the 
following new item:

``Sec. 173B. On-the-job training for economically and extremely 
                            economically disadvantaged areas.''.