I 

109TH CONGRESS 

1ST SESSION H. R. 26

To amend the Workforce Investment Act of 1998 to establish a Personal 

Reemployment Accounts grant program to assist Americans in returning 

to work. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2005

Mr. PORTER (for himself, Mr. BOEHNER, Mr. MCKEON, and Mr. TIAHRT) introduced the following bill; which was referred to the Committee on Education and the Workforce 

A BILL

To amend the Workforce Investment Act of 1998 to establish 

a Personal Reemployment Accounts grant program to 

assist Americans in returning to work.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Worker Reemployment 

5 Accounts Act of 2005’’. 

6 SEC. 2. GRANTS TO SUPPORT PERSONAL REEMPLOYMENT 

7 ACCOUNTS. 

8 Section 171 of the Workforce Investment Act of 1998 

9 is amended by adding at the end the following: 
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1 ‘‘(e) PERSONAL REEMPLOYMENT ACCOUNTS.—

2 ‘‘(1) DEFINITION.—In this subsection, the term 

3 ‘State’ means each of the several States of the 

4 United States, the District of Columbia, the Com5 monwealth of Puerto Rico, and the United States 

6 Virgin Islands. 

7 ‘‘(2) DEMONSTRATION PROJECT.—In addition 

8 to the demonstration projects under subsection (b), 

9 the Secretary may establish and implement a na10 tional demonstration project designed to analyze and 

11 provide data on workforce training programs that 

12 accelerate the reemployment of unemployed individ13 uals, promote the retention in employment of such 

14 individuals, and provide such individuals with en15 hanced flexibility, choice, and control in obtaining 

16 intensive reemployment, training, and supportive 

17 services. 

18 ‘‘(3) GRANTS.—

19 ‘‘(A) IN GENERAL.—In carrying out the 

20 demonstration project, the Secretary shall make 

21 grants, on a competitive basis, to eligible enti22 ties to provide personal reemployment accounts 

23 to eligible individuals. In awarding grants under 

24 this subsection the Secretary shall take into 

25 consideration awarding grants to eligible enti-
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1 ties from diverse geographic areas, including 

2 rural areas. 

3 ‘‘(B) DURATION.—The Secretary shall 

4 make the grants for periods of not less than 2 

5 years and may renew the grant for each of the 

6 succeeding 3 years. 

7 ‘‘(4) ELIGIBLE ENTITY.—In this subsection, the 

8 term ‘eligible entity’ means—

9 ‘‘(A) a State; or 

10 ‘‘(B) a local board or consortium of local 

11 boards. 

12 ‘‘(5) USE OF FUNDS.—

13 ‘‘(A) IN GENERAL.—An eligible entity that 

14 receives a grant under this subsection shall use 

15 the grant funds to provide, through a local area 

16 or areas, eligible individuals with personal re17 employment accounts. An eligible individual 

18 may receive only 1 personal reemployment ac19 count. 

20 ‘‘(B) GEOGRAPHIC AREA AND AMOUNT.—

21 ‘‘(i) IN GENERAL.—The eligible entity 

22 shall establish the amount of a personal re23 employment account for each eligible indi24 vidual participating, which shall be uni25 form throughout the area represented by 
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1 the eligible entity, and shall not exceed 

2 $3,000. 

3 ‘‘(ii) OPTION FOR STATES.—If the eli4 gible entity is a State, the eligible entity 

5 may choose to use the grant statewide, if 

6 practicable, or only in specified local areas 

7 within a State. 

8 ‘‘(C) ELIGIBLE INDIVIDUALS.—

9 ‘‘(i) IN GENERAL.—Each eligible enti10 ty shall establish eligibility criteria for indi11 viduals for personal reemployment ac12 counts in accordance with this subpara13 graph. 

14 ‘‘(ii) ELIGIBILITY CRITERIAREQUIRE15 MENTS.—

16 ‘‘(I) IN GENERAL.—Subject to 

17 subclause (II), an individual shall be 

18 eligible to receive a personal reemploy19 ment account under a grant awarded 

20 under this subsection if, beginning 

21 after the date of enactment of this 

22 subsection, the individual—

23 ‘‘(aa) is identified by the 

24 State pursuant to section 

25 303(j)(1) of the Social Security 
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1 Act (42 U.S.C. 503(j)(1)) as like2 ly to exhaust regular unemploy3 ment compensation and in need 

4 of job search assistance to make 

5 a successful transition to new 

6 employment, or the individual’s 

7 unemployment can be attributed 

8 in substantial part to unfair com9 petition from Federal Prison In10 dustries, Incorporated; 

11 ‘‘(bb) is receiving regular 

12 unemployment compensation 

13 under any Federal or State un14 employment compensation pro15 gram administered by the State; 

16 and 

17 ‘‘(cc) is eligible for not less 

18 than 20 weeks of regular unem19 ployment compensation described 

20 in item (bb). 

21 ‘‘(II) ADDITIONAL ELIGIBILITY

22 AND PRIORITY CRITERIA.—An eligible 

23 entity may establish criteria that are 

24 in addition to the criteria described in 

25 subclause (I) for the eligibility of indi-
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1 viduals to receive a personal reemploy2 ment account under this subsection. 

3 An eligible entity may also establish 

4 criteria for priority in the provision of 

5 a personal reemployment account to 

6 such eligible individuals under a grant 

7 awarded under this subsection. 

8 ‘‘(iii) TRANSITION RULE.—

9 ‘‘(I) PREVIOUSLY IDENTIFIED AS

10 LIKELY TO EXHAUST UNEMPLOYMENT

11 COMPENSATION.—

12 ‘‘(aa) IN GENERAL.—At the 

13 option of the eligible entity, and 

14 subject to item (bb), an indi15 vidual may be eligible to receive a 

16 personal reemployment account 

17 under this subsection if the indi18 vidual—

19 ‘‘(AA) during the 13-

20 week period ending the week 

21 prior to the date of the en22 actment of the subsection, 

23 was identified by the State 

24 pursuant to section 

25 303(j)(1) of the Social Secu-
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1 rity Act (42 U.S.C. 

2 503(j)(1)) as likely to ex3 haust regular unemployment 

4 compensation and in need of 

5 job search assistance to 

6 make a successful transition 

7 to new employment; and 

8 ‘‘(BB) otherwise meets 

9 the requirements of clause 

10 (ii)(I)(bb) and (cc). 

11 ‘‘(bb) ADDITIONAL ELIGI12 BILITY AND PRIORITY CRI13 TERIA.—An eligible entity may 

14 establish criteria that is in addi15 tion to the criteria described in 

16 item (aa) for the eligibility of in17 dividuals to receive a personal re18 employment account under this 

19 subsection. An eligible entity may 

20 also establish criteria for priority 

21 in the provision of such accounts 

22 to such eligible individuals under 

23 this subsection. 

24 ‘‘(II) PREVIOUSLY EXHAUSTED

25 UNEMPLOYMENT COMPENSATION.—At 
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1 the option of the eligible entity, an in2 dividual may be eligible to receive a 

3 personal reemployment account under 

4 a grant awarded under this subsection 

5 if the individual—

6 ‘‘(aa) during the 26-week 

7 period ending the week prior to 

8 the date of the enactment of this 

9 subsection, exhausted all rights 

10 to any unemployment compensa11 tion; and 

12 ‘‘(bb)(AA) is enrolled in 

13 training and needs additional 

14 support to complete such train15 ing, with a priority of service to 

16 be provided to such individuals 

17 who are training for shortage oc18 cupations or high-growth indus19 tries; or—

20 ‘‘(BB) is separated from 

21 employment in an industry or oc22 cupation that has experienced de23 clining employment, or no longer 

24 provides any employment, in the 

25 local labor market during the 2-
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1 year period ending on the date of 

2 the determination of eligibility of 

3 the individual under this sub4 paragraph. 

5 ‘‘(iv) NO INDIVIDUAL ENTITLE6 MENT.—Nothing in this subsection shall be 

7 construed to entitle any individual to re8 ceive a personal reemployment account. 

9 ‘‘(D) LIMITATIONS.—

10 ‘‘(i) INFORMATION AND ATTESTA11 TION.—Prior to the establishment of a per12 sonal reemployment account for an eligible 

13 individual, the eligible entity receiving a 

14 grant, through the one-stop delivery sys15 tem in the participating local area or 

16 areas, shall ensure that the individual—

17 ‘‘(I) is informed of the require18 ments applicable to the personal reem19 ployment account, including the allow20 able uses of funds from the account, 

21 the limitations on access to services 

22 described in paragraph (7)(A)(iii) and 

23 a description of such services, and the 

24 conditions for receiving a reemploy25 ment bonus; 
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1 ‘‘(II) has the option to develop a 

2 personal reemployment plan which will 

3 identify the employment goals and ap4 propriate combination of services se5 lected by the individual to achieve the 

6 employment goals; and 

7 ‘‘(III) signs an attestation that 

8 the individual has been given the op9 tion to develop a personal reemploy10 ment plan in accordance with sub11 clause (II), will comply with the re12 quirements under this subsection re13 lating to the personal reemployment 

14 accounts, and will reimburse the ac15 count or, if the account has been ter16 minated, the grant awarded under 

17 this subsection, for any amounts ex18 pended from the account that are not 

19 allowable. 

20 ‘‘(ii) PERIODIC INTERVIEWS.—If a re21 cipient exhausts his or her rights to any 

22 unemployment compensation, and the re23 cipient has a remaining balance in his or 

24 her personal reemployment account, the 

25 one-stop delivery system shall conduct peri-
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1 odic interviews with the recipient to assist 

2 the recipient in meeting his or her indi3 vidual employment goals. 

4 ‘‘(iii) USE OF PERSONAL REEMPLOY5 MENT ACCOUNTS.—The eligible entity re6 ceiving a grant shall ensure that eligible 

7 individuals receiving a personal reemploy8 ment account use the account in accord9 ance with paragraph (7). 

10 ‘‘(6) APPLICATION FOR GRANTS.—To be eligible 

11 to receive a grant under this subsection, an eligible 

12 entity shall submit an application to the Secretary at 

13 such time, in such manner, and containing such in14 formation as the Secretary may require, including—

15 ‘‘(A) if the eligible entity is a State—

16 ‘‘(i) assurance that the application 

17 was developed in conjunction with the local 

18 board or boards and chief elected officials 

19 where the personal reemployment accounts 

20 shall be made available; and 

21 ‘‘(ii) a description of the methods and 

22 procedures for providing funds to local 

23 areas where the personal reemployment ac24 counts shall be made available; and 
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1 ‘‘(B) a description of the criteria and 

2 methods to be used for determining eligibility 

3 for the personal reemployment account, includ4 ing whether the eligible entity intends to include 

5 the optional categories described in paragraph 

6 (5)(C)(iii), and the additional criteria and pri7 ority for service that the eligible entity intends 

8 to apply, if any, pursuant to paragraph 

9 (5)(C)(ii)(II); 

10 ‘‘(C) a description of the methods or proce11 dures to be used to provide eligible individuals 

12 information relating to services and providers; 

13 ‘‘(D) a description of safeguards to ensure 

14 that funds from the personal reemployment ac15 counts are used for purposes authorized under 

16 this subsection and to ensure the quality and 

17 integrity of services and providers, consistent 

18 with the purpose of providing eligible individ19 uals with enhanced flexibility, choice, and con20 trol in obtaining intensive reemployment, train21 ing, and supportive services; 

22 ‘‘(E) a description of how the eligible enti23 ty will coordinate the activities carried out 

24 under this subsection with the employment and 

25 training activities carried out under section 134 
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1 and other activities carried out by local boards 

2 through the one-stop delivery system in the 

3 State or local area; and 

4 ‘‘(F) an assurance that the eligible entity 

5 will comply with any evaluation and reporting 

6 requirements the Secretary may require. 

7 ‘‘(7) USE OF PERSONAL REEMPLOYMENT AC8 COUNTS.—

9 ‘‘(A) ALLOWABLE ACTIVITIES.—

10 ‘‘(i) IN GENERAL.—Subject to the re11 quirements contained in clauses (ii) and 

12 (iii), a recipient of a personal reemploy13 ment account may use amounts in a per14 sonal reemployment account to purchase 1 

15 or more of the following: 

16 ‘‘(I) Intensive services, including 

17 those type of services specified in sec18 tion 134(d)(3)(C). 

19 ‘‘(II) Training services, including 

20 those types of services specified in sec21 tion 134(d)(4)(D). 

22 ‘‘(III) Supportive services, except 

23 for needs related payments. 

24 ‘‘(ii) DELIVERY OF SERVICES.—The 

25 following requirements relating to delivery 
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1 of services shall apply to the grants under 

2 this subsection: 

3 ‘‘(I) Recipients may use funds 

4 from the personal reemployment ac5 count to purchase the services de6 scribed in clause (i) through the one7 stop delivery system on a fee-for-serv8 ice basis, or through other providers, 

9 consistent with the safeguards de10 scribed in paragraph (6)(D). 

11 ‘‘(II) The eligible entity, through 

12 the one-stop delivery system in the 

13 participating local area, may pay costs 

14 for such services directly on behalf of 

15 the recipient, through a voucher sys16 tem, or by reimbursement to the re17 cipient upon receipt of appropriate 

18 cost documentation. 

19 ‘‘(III) Each eligible entity, 

20 through the one-stop delivery system 

21 in the participating local area, shall 

22 make available to recipients informa23 tion on training providers specified in 

24 section 134(d)(4)(F)(ii), information 

25 available to the one-stop delivery sys-
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1 tem on providers of the intensive and 

2 supportive services described in clause 

3 (i), and information relating to occu4 pations in demand in the local area. 

5 ‘‘(iii) LIMITATIONS.—The following 

6 limitations shall apply with respect to per7 sonal reemployment accounts under this 

8 subsection: 

9 ‘‘(I) Amounts in a personal reem10 ployment account may be used for up 

11 to 1 year from the date of the estab12 lishment of the account. 

13 ‘‘(II) Each recipient shall submit 

14 cost documentation as required by the 

15 one-stop delivery system. 

16 ‘‘(III) For the 1-year period fol17 lowing the establishment of the ac18 count, recipients may not receive in19 tensive, supportive, or training serv20 ices funded under this title except on 

21 a fee-for-services basis as specified in 

22 clause (ii)(I). 

23 ‘‘(IV) Amounts in a personal re24 employment account shall be non25 transferable. 
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1 ‘‘(B) REEMPLOYMENT BONUS.—

2 ‘‘(i) IN GENERAL.—Subject to clause 

3 (ii)—

4 ‘‘(I) if a recipient determined eli5 gible under paragraph (5)(C)(ii) ob6 tains full-time employment before the 

7 13th week of unemployment for which 

8 unemployment compensation is paid, 

9 the balance of his or her personal re10 employment account shall be provided 

11 directly to the recipient in cash; and 

12 ‘‘(II) if a recipient determined el13 igible under paragraph (5)(C)(iii) ob14 tains full-time employment before the 

15 end of the 13th week after the date 

16 on which the account is established, 

17 the balance of his or her personal re18 employment account shall be provided 

19 directly to the recipient in cash. 

20 ‘‘(ii) LIMITATIONS.—The following 

21 limitations shall apply with respect to a re22 cipient described in clause (i): 

23 ‘‘(I) 60 percent of the remaining 

24 personal reemployment account bal-
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1 ance shall be paid to the recipient at 

2 the time of employment. 

3 ‘‘(II) 40 percent of the remaining 

4 personal reemployment account shall 

5 be paid to the recipient after 26 weeks 

6 of employment retention. 

7 ‘‘(iii) EXCEPTION REGARDING SUBSE8 QUENT EMPLOYMENT.—If a recipient de9 scribed in clause (i) subsequently becomes 

10 unemployed due to a lack of work after re11 ceiving the portion of the reemployment 

12 bonus specified under clause (ii)(I), the in13 dividual may use the amount remaining in 

14 the personal reemployment account for the 

15 purposes described in subparagraph (A) 

16 but may not be eligible for additional cash 

17 payments under this subparagraph. 

18 ‘‘(8) PROGRAM INFORMATION AND EVALUA19 TION.—

20 ‘‘(A) INFORMATION.—The Secretary may 

21 require from eligible entities the collection and 

22 reporting on such financial, performance, and 

23 other program-related information as the Sec24 retary determines is appropriate to carry out 
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1 this subsection, including the evaluation de2 scribed in subparagraph (B). 

3 ‘‘(B) EVALUATION.—

4 ‘‘(i) IN GENERAL.—The Secretary, 

5 pursuant to the authority provided under 

6 section 172, shall, directly or through 

7 grants, contracts, or cooperative agreement 

8 with appropriate entities, conduct an eval9 uation of the activities carried out under 

10 any grants awarded under this subsection. 

11 ‘‘(ii) REPORT.—The report to Con12 gress under section 172(e) relating to the 

13 results of the evaluations required under 

14 section 172 shall include the recommenda15 tion of the Secretary with respect to the 

16 use of personal reemployment account as a 

17 mechanism to assist individuals in obtain18 ing and retaining employment.’’.

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