To provide special rules for disaster relief employment under the Workforce Investment Act of 1998 for individuals displaced by Hurricane Katrina.

Summary: Flexibility for Displaced Workers Act - (Sec. 2) Allows national emergency grant funds to states under the Workforce Investment Act of 1998 (WIA) for addressing the effects of Hurricane Katrina (Katrina) to be used to provide disaster relief employment on projects that provide assistance in areas outside of the Katrina-disaster area.

 Allows such funds to be used to provide disaster relief employment and other WIA assistance, or temporary general public sector employment, to Katrina-affected individuals, including those who have relocated from states in the disaster area, who were unemployed at the time of the disaster, or who are without employment history, in addition those who meet WIA eligibility requirements.

Limits such general public sector employment to not more than six months in addition to such disaster relief employment. Authorizes the Secretary of Labor, however, to extend the duration of employment under this Act and WIA for up to an additional six months due to extraordinary circumstances.

Directs the Secretary, in awarding WIA national emergency grants for disaster relief employment, to give priority: (1) first, to states with major disaster areas; and (2) second, to the remaining states that have been most heavily impacted by the demand for services by Katrina-affected workers.

Allows any state, with the Secretary's approval, to use available WIA national emergency grant funds to assist Katrina-affected workers, including those who have relocated from states in the Katrina-disaster area.

Authorizes the Secretary to award a WIA national emergency grant for employment and training assistance (ETA) for dislocated workers to an eligible entity to provide ETA to Katrina-affected workers, including workers who have relocated from Katrina-disaster areas.

(Sec. 3) Expresses the sense of Congress that: (1) states operating one-stop centers should make them available for use in Katrina-affected areas and areas where large numbers of Katrina's victims have been relocated; and (2) one-stop operators should increase access for Katrina-affected individuals, including through expanded operational hours and on-site services for those in temporary housing.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexibility for Displaced Workers 
Act''.

SEC. 2. SPECIAL RULES FOR NATIONAL EMERGENCY GRANTS RELATED TO 
              HURRICANE KATRINA.

    (a) Use of Grants for Projects Outside Disaster Area.--Funds 
provided to States that submit applications for assistance described in 
section 173(a)(2) of the Workforce Investment Act of 1998 (29 U.S.C. 
2918(a)(2)) to address the effects of Hurricane Katrina may be used to 
provide disaster relief employment and other assistance under section 
173(d)(1) of such Act (29 U.S.C. 2918(d)(1)) on projects that provide 
assistance in areas outside of the disaster area (as such term is 
defined in section 173(a)(2) of such Act).
    (b) Expanded Eligibility for Disaster Relief Employment.--Funds 
provided to States that submit applications for assistance described 
under section 173(a)(2) of the Workforce Investment Act of 1998 (29 
U.S.C. 2918(a)(2)) to address the effects of Hurricane Katrina may be 
used to provide disaster relief employment and other assistance under 
section 173(d)(1) of such Act, or public sector employment authorized 
under subsection (c) of this Act, to individuals affected by Hurricane 
Katrina, including those who have relocated from States in which a 
major disaster was declared under section 102 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122) due to 
the effects of Hurricane Katrina, who were unemployed at the time of 
the disaster or who are without employment history, in addition to 
individuals who are eligible for such employment under section 
173(d)(2) of the Workforce Investment Act of 1998.
    (c) Authorization for General Public Sector Employment.--Funds 
provided to States that submit applications for assistance described in 
section 173(a)(2) of the Workforce Investment Act of 1998 to address 
the effects of Hurricane Katrina may be used to provide to eligible 
individuals temporary employment by public sector entities for a period 
not to exceed 6 months in addition to disaster relief employment 
described in section 173(d)(1) of such Act.
    (d) Extension of the Duration of Disaster Relief Employment.--The 
Secretary of Labor may extend the 6-month maximum duration of 
employment under this Act and under section 173(d) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(d)) for not more than an 
additional 6 months due to extraordinary circumstances.
    (e) Priority for Disaster Relief Employment Funds.--In awarding 
national emergency grants to States under section 173(a)(2) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918(a)(2)) to address the 
effects of Hurricane Katrina by providing disaster relief employment, 
the Secretary of Labor shall--
        (1) first, give priority to States in which areas that have 
    suffered major disasters (as defined in section 102 of the Robert 
    T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
    5122)) are located; and
        (2) second, give priority to the remaining States that have 
    been most heavily impacted by the demand for services by workers 
    affected by Hurricane Katrina.
    (f) Eligibility for Needs-Related Payments.--Funds provided to 
States that submit applications for assistance described in section 
173(a)(2) of the Workforce Investment Act of 1998 (29 U.S.C. 
2918(a)(2)) to address the effects of Hurricane Katrina may be used to 
provide needs-related payments (described in section 134(e)(3) of such 
Act (29 U.S.C. 2864(e)(3))) to individuals described in subsection (b) 
who do not qualify for (or have ceased to qualify for) unemployment 
compensation, and who are not employed on a project described under 
section 173(d) of such Act, for the purpose of enabling such 
individuals to participate in activities described in paragraphs (2), 
(3), or (4) of section 134(d) of such Act.
    (g) Use of Available Funds.--With the approval of the Secretary of 
Labor, any State may use funds that remain available for expenditure 
under any grants awarded to the State under section 173 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918) or under this 
section, to provide any assistance authorized under such section 173 or 
this section, or personal protective equipment not otherwise available 
through public funds or private contributions, to assist workers 
affected by Hurricane Katrina, including workers who have relocated 
from areas for which an emergency or major disaster (as defined in 
section 102 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5122)) was declared, due to the effects of 
Hurricane Katrina.
    (h) Expanded Eligibility for Employment and Training Activities.--
        (1) In general.--In awarding national emergency grants under 
    section 173(a)(1) of the Workforce Investment Act of 1998 (29 
    U.S.C. 2918(a)(1)), the Secretary may award such a grant to an 
    entity to provide employment and training assistance available 
    under section 173(a)(1) of such Act to workers affected by 
    Hurricane Katrina, including workers who have relocated from areas 
    for which an emergency or major disaster (as defined in section 102 
    of the Robert T. Stafford Disaster Relief and Emergency Assistance 
    Act (42 U.S.C. 5122)) was declared, due to the effects of Hurricane 
    Katrina.
        (2) Eligible entity.--In this subsection, the term ``entity'' 
    means a State, a local board (as defined in section 101 of the 
    Workforce Investment Act of 1998 (29 U.S.C. 2801)), or an entity 
    described in section 166(c) of such Act (29 U.S.C. 2911(c)), that 
    submits an application for assistance described in section 
    173(a)(1) of the Workforce Investment Act of 1998 to address the 
    effects of Hurricane Katrina.

SEC. 3. SENSE OF CONGRESS.

    (a) Mobile One-Stop Centers.--It is the sense of Congress that 
States that operate mobile one-stop centers, established as part of 
one-stop delivery systems authorized under subtitle B of title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2811 et seq.) should, where 
possible, make such centers available for use in the areas affected by 
Hurricane Katrina, and areas where large numbers of workers affected by 
Hurricane Katrina have been relocated.
    (b) Expanded Operational Hours.--It is the sense of Congress that 
one-stop operators (as such term is defined in section 101 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801) should increase 
access for workers affected by Hurricane Katrina to the one-stop 
delivery systems authorized under subtitle B of title I of such Act, 
including through the implementation of expanded operational hours at 
one-stop centers and on-site services for individuals in temporary 
housing locations.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.