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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 26 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Worker Reemployment Accounts Act of 
2005''.

SEC. 2. GRANTS TO SUPPORT PERSONAL REEMPLOYMENT ACCOUNTS.

    Section 171 of the Workforce Investment Act of 1998 is amended by 
adding at the end the following:
    ``(e) Personal Reemployment Accounts.--
            ``(1) Definition.--In this subsection, the term `State' 
        means each of the several States of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and the 
        United States Virgin Islands.
            ``(2) Demonstration project.--In addition to the 
        demonstration projects under subsection (b), the Secretary may 
        establish and implement a national demonstration project 
        designed to analyze and provide data on workforce training 
        programs that accelerate the reemployment of unemployed 
        individuals, promote the retention in employment of such 
        individuals, and provide such individuals with enhanced 
        flexibility, choice, and control in obtaining intensive 
        reemployment, training, and supportive services.
            ``(3) Grants.--
                    ``(A) In general.--In carrying out the 
                demonstration project, the Secretary shall make grants, 
                on a competitive basis, to eligible entities to provide 
                personal reemployment accounts to eligible individuals. 
                In awarding grants under this subsection the Secretary 
                shall take into consideration awarding grants to 
                eligible entities from diverse geographic areas, 
                including rural areas.
                    ``(B) Duration.--The Secretary shall make the 
                grants for periods of not less than 2 years and may 
                renew the grant for each of the succeeding 3 years.
            ``(4) Eligible entity.--In this subsection, the term 
        `eligible entity' means--
                    ``(A) a State; or
                    ``(B) a local board or consortium of local boards.
            ``(5) Use of funds.--
                    ``(A) In general.--An eligible entity that receives 
                a grant under this subsection shall use the grant funds 
                to provide, through a local area or areas, eligible 
                individuals with personal reemployment accounts. An 
                eligible individual may receive only 1 personal 
                reemployment account.
                    ``(B) Geographic area and amount.--
                            ``(i) In general.--The eligible entity 
                        shall establish the amount of a personal 
                        reemployment account for each eligible 
                        individual participating, which shall be 
                        uniform throughout the area represented by the 
                        eligible entity, and shall not exceed $3,000.
                            ``(ii) Option for states.--If the eligible 
                        entity is a State, the eligible entity may 
                        choose to use the grant statewide, if 
                        practicable, or only in specified local areas 
                        within a State.
                    ``(C) Eligible individuals.--
                            ``(i) In general.--Each eligible entity 
                        shall establish eligibility criteria for 
                        individuals for personal reemployment accounts 
                        in accordance with this subparagraph.
                            ``(ii) Eligibility criteria requirements.--
                                    ``(I) In general.--Subject to 
                                subclause (II), an individual shall be 
                                eligible to receive a personal 
                                reemployment account under a grant 
                                awarded under this subsection if, 
                                beginning after the date of enactment 
                                of this subsection, the individual--
                                            ``(aa) is 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, or the individual's 
                                        unemployment can be attributed 
                                        in substantial part to unfair 
                                        competition from Federal Prison 
                                        Industries, Incorporated;
                                            ``(bb) is receiving regular 
                                        unemployment compensation under 
                                        any Federal or State 
                                        unemployment compensation 
                                        program administered by the 
                                        State; and
                                            ``(cc) is eligible for not 
                                        less than 20 weeks of regular 
                                        unemployment compensation 
                                        described in item (bb).
                                    ``(II) Additional eligibility and 
                                priority criteria.--An eligible entity 
                                may establish criteria that are in 
                                addition to the criteria described in 
                                subclause (I) for the eligibility of 
                                individuals to receive a personal 
                                reemployment account under this 
                                subsection. An eligible entity may also 
                                establish criteria for priority in the 
                                provision of a personal reemployment 
                                account to such eligible individuals 
                                under a grant awarded under this 
                                subsection.
                            ``(iii) Transition rule.--
                                    ``(I) Previously identified as 
                                likely to exhaust unemployment 
                                compensation.--
                                            ``(aa) In general.--At the 
                                        option of the eligible entity, 
                                        and subject to item (bb), an 
                                        individual may be eligible to 
                                        receive a personal reemployment 
                                        account under this subsection 
                                        if the individual--

                                                    ``(AA) during the 
                                                13-week period ending 
                                                the week prior to the 
                                                date of the enactment 
                                                of the subsection, was 
                                                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; and

                                                    ``(BB) otherwise 
                                                meets the requirements 
                                                of clause (ii)(I)(bb) 
                                                and (cc).

                                            ``(bb) Additional 
                                        eligibility and priority 
                                        criteria.--An eligible entity 
                                        may establish criteria that is 
                                        in addition to the criteria 
                                        described in item (aa) for the 
                                        eligibility of individuals to 
                                        receive a personal reemployment 
                                        account under this subsection. 
                                        An eligible entity may also 
                                        establish criteria for priority 
                                        in the provision of such 
                                        accounts to such eligible 
                                        individuals under this 
                                        subsection.
                                    ``(II) Previously exhausted 
                                unemployment compensation.--At the 
                                option of the eligible entity, an 
                                individual may be eligible to receive a 
                                personal reemployment account under a 
                                grant awarded under this subsection if 
                                the individual--
                                            ``(aa) during the 26-week 
                                        period ending the week prior to 
                                        the date of the enactment of 
                                        this subsection, exhausted all 
                                        rights to any unemployment 
                                        compensation; and
                                            ``(bb)(AA) is enrolled in 
                                        training and needs additional 
                                        support to complete such 
                                        training, with a priority of 
                                        service to be provided to such 
                                        individuals who are training 
                                        for shortage occupations or 
                                        high-growth industries; or--
                                            ``(BB) is separated from 
                                        employment in an industry or 
                                        occupation that has experienced 
                                        declining employment, or no 
                                        longer provides any employment, 
                                        in the local labor market 
                                        during the 2-year period ending 
                                        on the date of the 
                                        determination of eligibility of 
                                        the individual under this 
                                        subparagraph.
                            ``(iv) No individual entitlement.--Nothing 
                        in this subsection shall be construed to 
                        entitle any individual to receive a personal 
                        reemployment account.
                    ``(D) Limitations.--
                            ``(i) Information and attestation.--Prior 
                        to the establishment of a personal reemployment 
                        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--
                                    ``(I) is informed of the 
                                requirements applicable to the personal 
                                reemployment account, including the 
                                allowable uses of funds from the 
                                account, the limitations on access to 
                                services described in paragraph 
                                (7)(A)(iii) and a description of such 
                                services, and the conditions for 
                                receiving a reemployment bonus;
                                    ``(II) has the option to develop a 
                                personal reemployment plan which will 
                                identify the employment goals and 
                                appropriate combination of services 
                                selected by the individual to achieve 
                                the employment goals; and
                                    ``(III) signs an attestation that 
                                the individual has been given the 
                                option to develop a personal 
                                reemployment plan in accordance with 
                                subclause (II), will comply with the 
                                requirements under this subsection 
                                relating to the personal reemployment 
                                accounts, and will reimburse the 
                                account or, if the account has been 
                                terminated, the grant awarded under 
                                this subsection, for any amounts 
                                expended from the account that are not 
                                allowable.
                            ``(ii) 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 personal reemployment 
                        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.
                            ``(iii) Use of personal reemployment 
                        accounts.--The eligible entity receiving a 
                        grant shall ensure that eligible individuals 
                        receiving a personal reemployment account use 
                        the account in accordance with paragraph (7).
            ``(6) Application for grants.--To be eligible to receive a 
        grant under this subsection, 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--
                    ``(A) if the eligible entity is a State--
                            ``(i) assurance that the application was 
                        developed in conjunction with the local board 
                        or boards and chief elected officials where the 
                        personal reemployment accounts shall be made 
                        available; and
                            ``(ii) a description of the methods and 
                        procedures for providing funds to local areas 
                        where the personal reemployment accounts shall 
                        be made available; and
                    ``(B) a description of the criteria and methods to 
                be used for determining eligibility for the personal 
                reemployment account, including whether the eligible 
                entity intends to include the optional categories 
                described in paragraph (5)(C)(iii), and the additional 
                criteria and priority for service that the eligible 
                entity intends to apply, if any, pursuant to paragraph 
                (5)(C)(ii)(II);
                    ``(C) a description of the methods or procedures to 
                be used to provide eligible individuals information 
                relating to services and providers;
                    ``(D) a description of safeguards to ensure that 
                funds from the personal reemployment accounts are used 
                for purposes authorized under this subsection 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;
                    ``(E) a description of how the eligible entity will 
                coordinate the activities carried out under this 
                subsection 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
                    ``(F) an assurance that the eligible entity will 
                comply with any evaluation and reporting requirements 
                the Secretary may require.
            ``(7) Use of personal reemployment accounts.--
                    ``(A) Allowable activities.--
                            ``(i) In general.--Subject to the 
                        requirements contained in clauses (ii) and 
                        (iii), a recipient of a personal reemployment 
                        account may use amounts in a personal 
                        reemployment account to purchase 1 or more of 
                        the following:
                                    ``(I) Intensive services, including 
                                those type of services specified in 
                                section 134(d)(3)(C).
                                    ``(II) Training services, including 
                                those types of services specified in 
                                section 134(d)(4)(D).
                                    ``(III) Supportive services, except 
                                for needs related payments.
                            ``(ii) Delivery of services.--The following 
                        requirements relating to delivery of services 
                        shall apply to the grants under this 
                        subsection:
                                    ``(I) Recipients may use funds from 
                                the personal reemployment account to 
                                purchase the services described in 
                                clause (i) through the one-stop 
                                delivery system on a fee-for-service 
                                basis, or through other providers, 
                                consistent with the safeguards 
                                described in paragraph (6)(D).
                                    ``(II) The eligible entity, through 
                                the one-stop delivery system in the 
                                participating local area, may pay costs 
                                for such services directly on behalf of 
                                the recipient, through a voucher 
                                system, or by reimbursement to the 
                                recipient upon receipt of appropriate 
                                cost documentation.
                                    ``(III) Each eligible entity, 
                                through the one-stop delivery system in 
                                the participating local area, shall 
                                make available to recipients 
                                information on training providers 
                                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 clause (i), and 
                                information relating to occupations in 
                                demand in the local area.
                            ``(iii) Limitations.--The following 
                        limitations shall apply with respect to 
                        personal reemployment accounts under this 
                        subsection:
                                    ``(I) Amounts in a personal 
                                reemployment account may be used for up 
                                to 1 year from the date of the 
                                establishment of the account.
                                    ``(II) Each recipient shall submit 
                                cost documentation as required by the 
                                one-stop delivery system.
                                    ``(III) For the 1-year period 
                                following the establishment of the 
                                account, recipients may not receive 
                                intensive, supportive, or training 
                                services funded under this title except 
                                on a fee-for-services basis as 
                                specified in clause (ii)(I).
                                    ``(IV) Amounts in a personal 
                                reemployment account shall be 
                                nontransferable.
                    ``(B) Reemployment bonus.--
                            ``(i) In general.--Subject to clause (ii)--
                                    ``(I) if a recipient determined 
                                eligible under paragraph (5)(C)(ii) 
                                obtains full-time employment before the 
                                13th week of unemployment for which 
                                unemployment compensation is paid, the 
                                balance of his or her personal 
                                reemployment account shall be provided 
                                directly to the recipient in cash; and
                                    ``(II) if a recipient determined 
                                eligible under paragraph (5)(C)(iii) 
                                obtains full-time employment before the 
                                end of the 13th week after the date on 
                                which the account is established, the 
                                balance of his or her personal 
                                reemployment account shall be provided 
                                directly to the recipient in cash.
                            ``(ii) Limitations.--The following 
                        limitations shall apply with respect to a 
                        recipient described in clause (i):
                                    ``(I) 60 percent of the remaining 
                                personal reemployment account balance 
                                shall be paid to the recipient at the 
                                time of employment.
                                    ``(II) 40 percent of the remaining 
                                personal reemployment account shall be 
                                paid to the recipient after 26 weeks of 
                                employment retention.
                            ``(iii) Exception regarding subsequent 
                        employment.--If a recipient described in clause 
                        (i) subsequently becomes unemployed due to a 
                        lack of work after receiving the portion of the 
                        reemployment bonus specified under clause 
                        (ii)(I), the individual may use the amount 
                        remaining in the personal reemployment account 
                        for the purposes described in subparagraph (A) 
                        but may not be eligible for additional cash 
                        payments under this subparagraph.
            ``(8) Program information and evaluation.--
                    ``(A) Information.--The Secretary may require from 
                eligible entities the collection and reporting on such 
                financial, performance, and other program-related 
                information as the Secretary determines is appropriate 
                to carry out this subsection, including the evaluation 
                described in subparagraph (B).
                    ``(B) Evaluation.--
                            ``(i) In general.--The Secretary, pursuant 
                        to the authority provided under 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 subsection.
                            ``(ii) Report.--The report to Congress 
                        under section 172(e) relating to the results of 
                        the evaluations required under section 172 
                        shall include the recommendation of the 
                        Secretary with respect to the use of personal 
                        reemployment account as a mechanism to assist 
                        individuals in obtaining and retaining 
                        employment.''.
                                 <all>
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