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.

Summary: 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.

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.''.