I 

118TH CONGRESS 

1ST SESSION H. R. 1263 

To assist employers providing employment under special certificates issued 

under section 14(c) of the Fair Labor Standards Act of 1938 in transforming their business and program models to models that support individuals with disabilities through competitive integrated employment, to 

phase out the use of such special certificates, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2023 

Mr. SCOTT of Virginia (for himself and Mrs. RODGERS of Washington) introduced the following bill; which was referred to the Committee on Education and the Workforce 

A BILL 

To assist employers providing employment under special certificates issued under section 14(c) of the Fair Labor 

Standards Act of 1938 in transforming their business 

and program models to models that support individuals 

with disabilities through competitive integrated employment, to phase out the use of such special certificates, 

and for other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Transformation to 

3 Competitive Integrated Employment Act’’. 

4 SEC. 2. TABLE OF CONTENTS. 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Purposes. 

TITLE I—COMPETITIVE INTEGRATED EMPLOYMENT 

TRANSFORMATION GRANT PROGRAMS 

Sec. 101. Program authorized. 

Sec. 102. State grant program. 

Sec. 103. Certificate holder grant program. 

TITLE II—PHASE OUT OF SPECIAL CERTIFICATES UNDER 

SECTION 14(C) OF THE FAIR LABOR STANDARDS ACT OF 1938 

Sec. 201. Transition to fair wages for individuals with disabilities. 

Sec. 202. Prohibition on new special certificates; sunset. 

TITLE III—TECHNICAL ASSISTANCE AND DISSEMINATION 

Sec. 301. Technical Assistance and dissemination. 

TITLE IV—REPORTING AND EVALUATION 

Sec. 401. Impact evaluation and reporting. 

Sec. 402. Wage and hour reports. 

TITLE V—GENERAL PROVISIONS 

Sec. 501. Definitions. 

Sec. 502. Authorization of appropriations. 

5 SEC. 3. PURPOSES. 

6 The purposes of this Act are to— 

7 (1) assist employers with special certificates 

8 issued under section 14(c) of the Fair Labor Stand9 ards Act of 1938 (29 U.S.C. 214(c)) to transform 

10 their business and program operations to models 

11 that support individuals with disabilities to find and 

12 retain work in competitive integrated employment; 


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1 (2) ensure individuals with disabilities, families 

2 of such individuals, State and local governments, 

3 and other stakeholders are involved in the trans4 formations described in paragraph (1); 

5 (3) ensure individuals employed in programs 

6 using such special certificates transition to competi7 tive integrated employment positions and, as needed, 

8 to integrated services that support them in their 

9 homes and in community settings; 

10 (4) identify models and processes for shifting 

11 business and program models from such special cer12 tificates to competitive integrated employment mod13 els and integrated community participation and 

14 wraparound services, and to share that information 

15 with other such special certificate holders, State and 

16 local entities, and other service providers for individ17 uals with disabilities; and 

18 (5) support States and local governments as 

19 they revise and implement their Olmstead plans and 

20 local plans, respectively, in order to improve com21 petitive integrated employment outcomes for individ22 uals with disabilities through all State workforce de23 velopment systems. 


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1 TITLE I—COMPETITIVE INTE2 GRATED EMPLOYMENT 

3 TRANSFORMATION GRANT 

4 PROGRAMS 

5 SEC. 101. PROGRAM AUTHORIZED. 

6 From the amounts appropriated to carry out this 

7 title, the Secretary of Labor shall award grants under sec8 tions 102 and 103, on a competitive basis, to States and 

9 eligible entities to assist employers who were issued special 

10 certificates in transforming their business and program 

11 models from providing employment using such special cer12 tificates to business and program models that employ and 

13 support individuals with disabilities by— 

14 (1) providing competitive integrated employ15 ment, including by compensating all employees of 

16 the employer at a rate that is— 

17 (A) not less than the higher of the rate 

18 specified in section 6(a)(1) of the Fair Labor 

19 Standards Act of 1938 (29 U.S.C. 206(a)(1)) 

20 or the rate specified in the applicable State or 

21 local minimum wage law; and 

22 (B) not less than the customary rate paid 

23 by the employer for the same or similar work 

24 performed by other employees who are not indi25 viduals with disabilities, and who are similarly 


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1 situated in similar occupations by the same em2 ployer and who have similar training, experi3 ence, and skills; 

4 (2) assisting individuals with disabilities who 

5 were employed by the employer in finding and re6 taining work in competitive integrated employment, 

7 which work may be with the employer after such 

8 transformation or in another competitive integrated 

9 employment setting; 

10 (3) providing integrated community participa11 tion and wraparound services for individuals with 

12 disabilities; and 

13 (4) ensuring all such services and other non14 employment services offered under, or with assist15 ance from, such a grant comply with the require16 ments for home and community-based services under 

17 the Home and Community-Based Services (HCBS) 

18 final rule published on January 16, 2014 (79 Fed. 

19 Reg. 2948), or a successor rule. 

20 SEC. 102. STATE GRANT PROGRAM. 

21 (a) APPLICATION.— 

22 (1) IN GENERAL.—To be eligible to receive a 

23 grant under this section, a State shall submit an ap24 plication to the Secretary at such time, in such manVerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263

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1 ner, and including such information as the Secretary 

2 may reasonably require. 

3 (2) CONTENTS.—Each application submitted 

4 under paragraph (1) shall include— 

5 (A) a description of the status of the em6 ployers in the State providing employment 

7 using special certificates, including— 

8 (i) the number of employers in the 

9 State using special certificates to employ 

10 and pay individuals with disabilities; 

11 (ii) the number of employers described 

12 in clause (i) that also employ individuals 

13 with disabilities in competitive integrated 

14 employment, which shall include employers 

15 providing such employment in combination 

16 with integrated services; 

17 (iii) the number of employees em18 ployed under a special certificate, 

19 disaggregated by— 

20 (I) employer; and 

21 (II) demographic characteristics, 

22 including gender, race, ethnicity, and 

23 type of disability, unless indicating 

24 such characteristics would disclose 

25 personally identifiable information; 


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1 (iv) the average, median, minimum, 

2 and maximum number of hours such em3 ployees work per week, disaggregated by 

4 employer, and reported for the State as a 

5 whole; and 

6 (v) the average, median, minimum, 

7 and maximum hourly wage for such em8 ployees, disaggregated by employer, and 

9 reported for the State as a whole; 

10 (B) a description of the activities of the 

11 State with respect to competitive integrated em12 ployment for individuals with disabilities, in13 cluding, as applicable— 

14 (i) a copy of the State plan for car15 rying out the Employment First initiative; 

16 (ii) a copy of the Olmstead plan of the 

17 State; 

18 (iii) a description of activities related 

19 to the development and promotion of 

20 ABLE accounts; and 

21 (iv) a description of the medical as22 sistance provided by the State through a 

23 Medicaid buy-in eligibility pathway under 

24 subclause (XV) or (XVI) of section 

25 1902(a)(10)(A)(ii) of the Social Security 


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1 Act (42 U.S.C. 1396a(a)(10)(A)(ii)), in2 cluding any premiums or other cost shar3 ing imposed on individuals who enroll in 

4 the State Medicaid program through such 

5 a pathway; 

6 (C) a description of activities to be funded 

7 under the grant, and the goals of such activi8 ties, including— 

9 (i) the process to be used to identify 

10 each employer in the State that will trans11 form its business and program models 

12 from employing individuals with disabilities 

13 using special certificates to employing indi14 viduals with disabilities in competitive inte15 grated employment settings, or a setting 

16 involving a combination of competitive in17 tegrated employment and integrated serv18 ices; 

19 (ii) the number of such employers in 

20 the State that will carry out a trans21 formation described in clause (i); 

22 (iii) the service delivery infrastructure 

23 that will be implemented in the State to 

24 support individuals with disabilities who 

25 have been employed under special certifiVerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263

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1 cates through such a transformation, in2 cluding providing enhanced integrated 

3 services to support individuals with the 

4 most significant disabilities; 

5 (iv) a description of the process to re6 cruit and engage Federal, State, and local 

7 governments and nonprofit and private em8 ployers to hire individuals with disabilities 

9 into competitive integrated employment 

10 who have been employed under special cer11 tificates; 

12 (v) the competitive integrated employ13 ment and integrated services that will be 

14 implemented in the State to support such 

15 individuals; 

16 (vi) a timeline for phasing out employ17 ment using special certificates in the State, 

18 which shall not extend past the date on 

19 which the legal effect of such certificates 

20 expires under section 14(c)(7) of the Fair 

21 Labor Standards Act of 1938 (29 U.S.C. 

22 214(c)(7)), as added by title II; 

23 (vii) a timeline for the expansion of 

24 employers that will provide competitive in25 tegrated employment, or a combination of 


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1 competitive integrated employment and in2 tegrated services, to individuals with dis3 abilities who have been employed by such 

4 employers under special certificates; 

5 (viii) a description of the expanded 

6 competitive integrated employment and in7 tegrated services to be provided to such in8 dividuals as a result of transformations de9 scribed in clause (i); and 

10 (ix) a description of the process to be 

11 used to engage stakeholders in such trans12 formations; 

13 (D) a description of how the activities 

14 under the grant will coordinate and align Fed15 eral, State, and local programs, agencies, and 

16 funding in the transformations described in 

17 subparagraph (C)(i); 

18 (E) a description of the State’s evaluation 

19 plan to determine the social and economic im20 pact of the grant, including the impact (as 

21 measured throughout the transformation and 

22 the 2-year period after the State has phased out 

23 employment using special certificates) on— 

24 (i) the employment status of individ25 uals with disabilities in the State, including 


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1 the number of hours worked, average 

2 wages, and job satisfaction, of such indi3 viduals; and 

4 (ii) changes in provider capacity to 

5 support competitive integrated employment 

6 and integrated services; 

7 (F) assurances that— 

8 (i) the activities carried out under the 

9 grant will result in each employer in the 

10 State that provides employment using spe11 cial certificates on the date of enactment of 

12 this Act transforming as described in sub13 paragraph (C)(i); 

14 (ii) individuals with the most signifi15 cant disabilities, including intellectual and 

16 developmental disabilities, who will be af17 fected by such a transformation will be 

18 given priority in receiving the necessary 

19 competitive integrated employment sup20 ports and integrated services to succeed 

21 during and after such a transformation; 

22 (iii) each individual in the State who 

23 is employed under a special certificate will, 

24 as a result of such a transformation, be 


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1 employed in competitive integrated employ2 ment; 

3 (iv) at a minimum, the State agencies 

4 responsible for developmental disability 

5 services, Medicaid, education, vocational 

6 rehabilitation, mental health services, 

7 transportation, and workforce development 

8 agree to be partners in the goals of the 

9 grant; 

10 (v) until the date that is 2 years after 

11 the legal effect of special certificates ex12 pires under section 14(c)(7) of the Fair 

13 Labor Standards Act of 1938 (29 U.S.C. 

14 214(c)(7)), as added by title II, the State 

15 will comply with requirements of the Sec16 retary with respect to the collection of 

17 data, and will require employers providing 

18 employment under special certificates in 

19 the State to comply with such require20 ments; 

21 (vi) the State will cooperate with the 

22 evaluation under title IV by providing all 

23 data required and allow the evaluation of 

24 activities under the grant; 


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1 (vii) the State will establish an advi2 sory council described in paragraph (3) to 

3 monitor and guide the process of trans4 forming business and program models of 

5 employers in the State as described in sub6 paragraph (C)(i); 

7 (viii) the State will cooperate with the 

8 nonprofit entity carrying out technical as9 sistance and dissemination activities under 

10 title III; 

11 (ix) all integrated services and non12 employment services offered by employers 

13 in the State will comply with— 

14 (I) the requirements for home 

15 and community-based services under 

16 the Home and Community-Based 

17 Services (HCBS) final rule published 

18 on January 16, 2014 (79 Fed. Reg. 

19 2948), or a successor rule; 

20 (II) the holding of the Olmstead 

21 decision; and 

22 (III) the Americans with Disabil23 ities Act of 1990 (42 U.S.C. 12101 et 

24 seq.); and 


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1 (x) the State will disseminate informa2 tion to all individuals with disabilities em3 ployed under special certificates regarding 

4 the availability of— 

5 (I) ABLE accounts and other 

6 asset developmental options for indi7 viduals with disabilities; 

8 (II) the Ticket to Work and Self 

9 Sufficiency Program established under 

10 section 1148 of the Social Security 

11 Act (42 U.S.C. 1320b–19); and 

12 (III) other resources related to 

13 benefits counseling for individuals 

14 with disabilities who wish to or are 

15 working in competitive integrated em16 ployment settings; and 

17 (G) such other information and assurances 

18 as the Secretary may reasonably require. 

19 (3) MEMBERS OF THE ADVISORY COUNCIL.—A 

20 State receiving a grant under this section shall, for 

21 the purpose described in paragraph (2)(F)(vii), es22 tablish an advisory council composed of the fol23 lowing: 

24 (A) Individuals with disabilities, including 

25 such individuals with intellectual and developVerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263

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1 mental disabilities, who are or were employed 

2 under a special certificate, who shall comprise 

3 not less than 25 percent of the members. 

4 (B) A family member of an individual with 

5 an intellectual or developmental disability who 

6 is employed under a special certificate. 

7 (C) A family member of an individual with 

8 an intellectual or developmental disability who 

9 is employed in competitive integrated employ10 ment. 

11 (D) An employer providing competitive in12 tegrated employment. 

13 (E) An employer providing employment 

14 under special certificates. 

15 (F) A representative of a nonprofit agency 

16 or organization specializing in competitive inte17 grated employment. 

18 (G) A representative of the State develop19 mental disability agency. 

20 (H) A representative of the State voca21 tional rehabilitation agency, as such term is 

22 used under the Rehabilitation Act of 1973 (29 

23 U.S.C. 701 et seq.). 


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1 (I) A representative of an agency in the 

2 State described in paragraph (6) or (7) of sec3 tion 8501 of title 41, United States Code. 

4 (J) A representative of the State inde5 pendent living centers, as such term is used 

6 under the Rehabilitation Act of 1973 (29 

7 U.S.C. 701 et seq.). 

8 (K) A representative of the State Council 

9 on Developmental Disabilities, as defined in sec10 tion 102 of the Developmental Disabilities As11 sistance and Bill of Rights Act of 2000 (42 

12 U.S.C. 15002). 

13 (L) A representative of one of the State 

14 University Centers for Excellence in Develop15 mental Disabilities Education, Research, and 

16 Service, established under subtitle D of title I 

17 of the Developmental Disabilities Assistance 

18 and Bill of Rights Act of 2000 (42 U.S.C. 

19 15061 et seq.). 

20 (M) A representative of the State protec21 tion and advocacy system, as defined in section 

22 102 of the Developmental Disabilities Assist23 ance and Bill of Rights Act of 2000 (42 U.S.C. 

24 15002). 


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1 (N) A representative of the State Medicaid 

2 office. 

3 (O) Representatives of other State agencies 

4 and disability organizations and other disability 

5 related offices and groups with expertise in 

6 competitive integrated employment. 

7 (b) GEOGRAPHIC DIVERSITY.—To the extent prac8 ticable, the Secretary shall distribute grant funds under 

9 this section equitably among geographic areas of the 

10 United States, and take into account rural and urban di11 versity. 

12 (c) DURATION OF AWARDS.—A grant under this sec13 tion shall be awarded for a period of 5 years. 

14 (d) LIMIT ON AWARD NUMBER.—A State may only 

15 be awarded 1 grant under this section. 

16 (e) AMOUNT OF AWARDS.—A grant awarded under 

17 this section may not be made in an amount that is less 

18 than $2,000,000, or more than $10,000,000 for the 5 year 

19 grant period. 

20 (f) ADDITIONAL FUNDING FOR SUPPORTED EMPLOY21 MENT SERVICES.— 

22 (1) IN GENERAL.—Title VI of the Rehabilita23 tion Act of 1973 is amended— 

24 (A) in section 603 (29 U.S.C. 795h)— 


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1 (i) in subsection (a), by adding at the 

2 end the following: 

3 ‘‘(3) REFERENCES.—For purposes of this sub4 section, any reference to sums or amounts appro5 priated under this title shall not be considered to in6 clude the amounts appropriated under section 

7 611(e).’’; 

8 (ii) in subsection (c)— 

9 (I) by inserting ‘‘or a grant 

10 under section 611’’ after ‘‘allotment 

11 under this title’’; and 

12 (II) by inserting ‘‘or such grant’’ 

13 after ‘‘such allotment’’; and 

14 (iii) in subsection (d)— 

15 (I) by inserting ‘‘or a grant 

16 under section 611’’ after ‘‘allotment 

17 under this title’’; and 

18 (II) by inserting ‘‘or such grant’’ 

19 after ‘‘such allotment’’; 

20 (B) in section 604(b)(2) (29 U.S.C. 

21 795i(b)(2)), by inserting ‘‘(including through a 

22 grant awarded under section 611)’’ after ‘‘this 

23 title’’; 


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1 (C) in section 610 (29 U.S.C. 795o), by in2 serting ‘‘, except for section 611,’’ after ‘‘this 

3 title’’; and 

4 (D) by adding at the end the following: 

5 ‘‘SEC. 611. ADDITIONAL FUNDING FOR CERTAIN STATES 

6 WITH COMPETITIVE INTEGRATED EMPLOY7 MENT. 

8 ‘‘(a) GRANTS.—From amounts appropriated under 

9 subsection (e), the Secretary shall award a grant under 

10 this section to each eligible State that submits an applica11 tion under subsection (c) for the purposes described in sec12 tion 604. 

13 ‘‘(b) ELIGIBILITY.— 

14 ‘‘(1) IN GENERAL.—A State is eligible for a 

15 grant under this section for a fiscal year if the 

16 State— 

17 ‘‘(A) is eligible for an allotment under sec18 tion 603(a) for the fiscal year; and 

19 ‘‘(B) has successfully completed a grant 

20 under section 102 of the Transformation to 

21 Competitive Integrated Employment Act during 

22 that fiscal year or the preceding fiscal year, as 

23 determined under paragraph (2). 

24 ‘‘(2) SUCCESSFULLY COMPLETING A COMPETI25 TIVE INTEGRATED EMPLOYMENT GRANT.—A State 


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1 has successfully completed a grant under section 

2 102 of the Transformation to Competitive Inte3 grated Employment Act if, at the conclusion of the 

4 5-year period of the grant, the Secretary deter5 mines— 

6 ‘‘(A) the State has complied with all re7 quirements under such section for such grant; 

8 ‘‘(B) the State has ceased issuing special 

9 certificates under section 14(c) of the Fair 

10 Labor Standards Act of 1938 (29 U.S.C. 

11 214(c)); and 

12 ‘‘(C) no special certificates issued under 

13 such section have any force or effect. 

14 ‘‘(c) APPLICATION.—A State seeking a grant under 

15 this section shall submit an application to the Secretary 

16 at such time, in such manner, and containing such infor17 mation as the Secretary may reasonably require, including 

18 information demonstrating the State has successfully com19 plied with the requirements under subsection (b)(2). 

20 ‘‘(d) AWARDS.— 

21 ‘‘(1) IN GENERAL.—A grant to a State under 

22 this section shall be awarded in an amount deter23 mined under paragraph (2) for a fiscal year, except 

24 as provided under paragraph (3). 


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1 ‘‘(2) AMOUNT.—Subject to available appropria2 tions under subsection (e), the amount of a grant 

3 under this section to a State for a fiscal year shall 

4 be equal to 25 percent of the amount allotted to 

5 such State under subsection (a) of section 603 for 

6 the preceding fiscal year (excluding any additional 

7 amounts allotted to the State under subsection (b) 

8 of such section). 

9 ‘‘(3) CONTINUED COMPLIANCE.—If a State re10 ceiving a grant under this section ceases compliance 

11 with subparagraph (B) or (C) of subsection (b)(2) 

12 for a fiscal year— 

13 ‘‘(A) no amounts shall be awarded through 

14 such grant for such fiscal year; or 

15 ‘‘(B) in a case in which such amounts have 

16 already been awarded to the State for such fis17 cal year, the State shall return to the Secretary 

18 such amounts. 

19 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated for each of fiscal years 

21 2028 through 2032 such sums as may be necessary to 

22 carry out this section.’’. 

23 (2) TABLE OF CONTENTS.—The table of con24 tents in section 1(b) of the Rehabilitation Act of 


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1 1973 is amended by adding after the item relating 

2 to section 610 the following: 

‘‘Sec. 611. Additional funding for certain States with competitive integrated 

employment.’’. 

3 SEC. 103. CERTIFICATE HOLDER GRANT PROGRAM. 

4 (a) IN GENERAL.—To be eligible to receive a grant 

5 under this section, an eligible entity shall submit an appli6 cation to the Secretary at such time, in such manner, and 

7 including such information as the Secretary may reason8 ably require. 

9 (b) CONTENTS.—Each application submitted under 

10 subsection (a) shall include— 

11 (1) the status of the eligible entity’s use of spe12 cial certificates to employ individuals with disabil13 ities, including— 

14 (A)(i) the number of employees the eligible 

15 entity employs using such special certificates at 

16 the time of submission of the application; 

17 (ii) the aggregate demographic profile of 

18 such employees, including gender, race, and 

19 type of disability of such employees, unless indi20 cating such demographic profile would disclose 

21 personally identifiable information; and 

22 (iii) an historical accounting, covering each 

23 of the previous 4 fiscal years, of— 


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1 (I) the number of employees with a 

2 disability working for a wage that is— 

3 (aa) less than the higher of the 

4 rate specified in section 6(a)(1) of the 

5 Fair Labor Standards Act of 1938 

6 (29 U.S.C. 206(a)(1)) or the rate 

7 specified in the applicable State or 

8 local minimum wage law; or 

9 (bb) less than the customary rate 

10 paid by the employer for the same or 

11 similar work performed by other em12 ployees who are not individuals with 

13 disabilities, and who are similarly sit14 uated in similar occupations by the 

15 same employer and who have similar 

16 training, experience, and skills; 

17 (II) an aggregate demographic profile 

18 of such employees including gender, race, 

19 ethnicity, age, and type of disability; 

20 (B) the average, minimum, maximum, and 

21 range of hourly wages paid to employees em22 ployed using such special certificates during the 

23 previous year; 

24 (C) during the preceding 5 fiscal years, the 

25 number of individuals with disabilities, 


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1 disaggregated by fiscal year, who have been 

2 transitioned by the eligible entity from employ3 ment under such special certificates to competi4 tive integrated employment; and 

5 (D) a description of the business and pro6 gram models (including the financial and orga7 nizational structure) of the eligible entity that 

8 is using the special certificates, including— 

9 (i) the number and types of contracts 

10 the entity has entered into during the pre11 ceding 5 fiscal years to supply goods or 

12 services and under which individuals with 

13 or without disabilities are employed; 

14 (ii) the budget and the funding struc15 ture, including all sources of funding, for 

16 the preceding 5 fiscal years; 

17 (iii) the human resource structure; 

18 and 

19 (iv) the entities partnering with the 

20 eligible entity as described in subsection 

21 (h)(2); 

22 (2) a description of activities to be funded 

23 under the grant, and the goals of such activities, in24 cluding— 


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1 (A) a description of the business and pro2 gram models of competitive integrated employ3 ment or a combination of competitive integrated 

4 employment and integrated services into which 

5 the models of the eligible entity will transform, 

6 including the business plan, employment struc7 ture, and leadership organization of the eligible 

8 entity; 

9 (B) a description of— 

10 (i) the integrated services to be pro11 vided by the eligible entity; or 

12 (ii) the eligible entity’s process for re13 ferring an individual requiring such serv14 ices to a provider of such services to en15 sure that the individual receives such serv16 ices; 

17 (C) after the transformation of the eligible 

18 entity’s business and program models as de19 scribed in subparagraph (A), the number of em20 ployees that will be employed under such mod21 els; 

22 (D) the date on which the eligible entity 

23 will discontinue using special certificates, and 

24 the funding structure the eligible entity will use 

25 to provide competitive integrated employment 


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1 or a combination of such employment and inte2 grated services; and 

3 (E) the process to be used for the trans4 formation of the eligible entity’s business and 

5 program models as described in subparagraph 

6 (A), including— 

7 (i) redesign of contracts; 

8 (ii) changes in funding sources; 

9 (iii) staff training on competitive inte10 grated employment support and practices; 

11 (iv) input from key stakeholders, in12 cluding individuals with disabilities, their 

13 families, and other local stakeholders; and 

14 (v) a description of the individuals 

15 who will be responsible for the development 

16 and implementation of such process; 

17 (3) a description of the process to recruit and 

18 engage Federal, State, and local governments and 

19 nonprofit and private employers to hire individuals 

20 with disabilities who have been employed under spe21 cial certificates; 

22 (4) a timeline of activities to be implemented 

23 and goals to be reached on at least a quarterly basis 

24 during the 3-year grant period; 


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1 (5) a description of how the activities under the 

2 grant will coordinate and align Federal, State, and 

3 local programs, agencies, and funding in the trans4 formation described in paragraph (2)(A); 

5 (6) assurances that— 

6 (A) the activities carried out under the 

7 grant will result in the transformation described 

8 in paragraph (2)(A); 

9 (B) individuals with disabilities who are 

10 employed by the eligible entity under special 

11 certificates will be employed in competitive inte12 grated employment; 

13 (C) the eligible entity will comply with the 

14 requirements of the Secretary with respect to 

15 the collection of data; 

16 (D) the eligible entity will cooperate with 

17 the evaluation described in title IV by providing 

18 all data required and allow evaluation of the ac19 tivities under the grant; and 

20 (E) the eligible entity will cooperate with 

21 the nonprofit entity carrying out technical as22 sistance and dissemination required under title 

23 III; 

24 (7) a description of the eligible entity’s evalua25 tion plan to determine the impact of the grant; 


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1 (8) assurances of collaboration and support 

2 from all State entities, including the State Medicaid 

3 agency, the State developmental disability agency, 

4 the State vocational rehabilitation agency, the State 

5 department of education, the State board, the local 

6 board, and other State and local governmental enti7 ties and organizations that support transformations 

8 to providing competitive integrated employment and 

9 integrated services for employees employed under a 

10 special certificate; and 

11 (9) such other information and assurances as 

12 the Secretary may reasonably require. 

13 (c) GEOGRAPHIC DIVERSITY.—To the extent prac14 ticable, the Secretary shall distribute grant funds under 

15 this section equitably among geographic areas of the 

16 United States, and shall take into account rural and urban 

17 diversity. 

18 (d) PROGRAM SIZE.—To the extent practicable, the 

19 Secretary shall distribute grant funds under this section 

20 equitably among eligible entities providing employment 

21 using special certificates serving different numbers of indi22 viduals. 

23 (e) DURATION OF AWARDS.— 

24 (1) GRANT PERIOD.—A grant awarded under 

25 this section shall be awarded for a period of 3 years. 


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1 (2) GRANT CYCLES.—Grants shall be awarded 

2 under this section in 2 grant cycles. Grants for the 

3 second grant cycle shall be awarded not earlier than 

4 the end of the second year of the first 3-year grant 

5 cycle. 

6 (f) LIMIT ON AWARD NUMBER.—An eligible entity 

7 may only be awarded 1 grant total under this section. 

8 (g) AMOUNT OF AWARDS.—A grant awarded under 

9 this section may not be made in an amount that is less 

10 than $100,000, or more than $500,000, for the 3-year 

11 grant period. 

12 (h) ELIGIBLE ENTITY DEFINED.—In this title, the 

13 term ‘‘eligible entity’’ means an entity that— 

14 (1) employs individuals with disabilities under 

15 special certificates and is located in a State that did 

16 not receive a grant under section 102; and 

17 (2) partners with at least 2 entities with experi18 ence providing support to individuals with disabil19 ities in competitive integrated employment, such 

20 as— 

21 (A) an employer providing competitive in22 tegrated employment; 

23 (B) a State developmental disability agen24 cy; 

25 (C) a State mental health services agency; 


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1 (D) a representative of an agency de2 scribed in paragraph (6) or (7) of section 8501 

3 of title 41, United States Code; 

4 (E) a representative of the State Council 

5 on Developmental Disabilities, as defined in sec6 tion 102 of the Developmental Disabilities As7 sistance and Bill of Rights Act of 2000 (42 

8 U.S.C. 15002); 

9 (F) a representative of the State vocational 

10 rehabilitation agency, as such term is used 

11 under the Rehabilitation Act of 1973 (29 

12 U.S.C. 701 et seq.); 

13 (G) a representative of the State inde14 pendent living centers, as such term is used 

15 under the Rehabilitation Act of 1973 (29 

16 U.S.C. 701 et seq.); 

17 (H) a representative of one of the State 

18 University Centers for Excellence in Develop19 mental Disabilities Education, Research, and 

20 Service, established under subtitle D of title I 

21 of the Developmental Disabilities Assistance 

22 and Bill of Rights Act of 2000 (42 U.S.C. 

23 15061 et seq.); 

24 (I) a representative of the State protection 

25 and advocacy system, as defined in section 102 


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1 of the Developmental Disabilities Assistance 

2 and Bill of Rights Act of 2000 (42 U.S.C. 

3 15002); and 

4 (J) a nonprofit agency or organization spe5 cializing in competitive integrated employment. 

6 TITLE II—PHASE OUT OF SPE7 CIAL CERTIFICATES UNDER 

8 SECTION 14(C) OF THE FAIR 

9 LABOR STANDARDS ACT OF 

10 1938 

11 SEC. 201. TRANSITION TO FAIR WAGES FOR INDIVIDUALS 

12 WITH DISABILITIES. 

13 (a) IN GENERAL.—Subparagraph (A) of section 

14 14(c)(1) of the Fair Labor Standards Act of 1938 (29 

15 U.S.C. 214(c)(1)) is amended to read as follows: 

16 ‘‘(A) at a rate that equals, or exceeds, the 

17 greater of— 

18 ‘‘(i)(I) 60 percent of the wage rate in ef19 fect under section 6(a)(1), beginning on the ef20 fective date described in section 201(b) of 

21 Transformation to Competitive Integrated Em22 ployment Act; 

23 ‘‘(II) 70 percent of the wage rate in effect 

24 under section 6(a)(1), beginning 1 year after 

25 such effective date; 


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1 ‘‘(III) 80 percent of the wage rate in effect 

2 under section 6(a)(1), beginning 2 years after 

3 such effective date; 

4 ‘‘(IV) 90 percent of the wage rate in effect 

5 under section 6(a)(1), beginning 3 years after 

6 such effective date; and 

7 ‘‘(V) the wage rate in effect under section 

8 6(a)(1), beginning 4 years after such effective 

9 date; or 

10 ‘‘(ii) the wage rate in effect on the day be11 fore the date of enactment of the Trans12 formation to Competitive Integrated Employ13 ment Act for the employment, under a special 

14 certificate issued under this paragraph, of the 

15 individual for whom the wage rate is deter16 mined under this paragraph;’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 subsection (a) shall take effect on the date that is 3 

19 months after the date of enactment of this Act. 

20 SEC. 202. PROHIBITION ON NEW SPECIAL CERTIFICATES; 

21 SUNSET. 

22 Section 14(c) of the Fair Labor Standards Act of 

23 1938 (29 U.S.C. 214(c)) (as amended by section 201), 

24 is further amended by adding at the end the following: 


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1 ‘‘(6) PROHIBITION ON NEW SPECIAL CERTIFI2 CATES.—Notwithstanding paragraph (1), the Secretary 

3 shall not issue a special certificate under this subsection 

4 to an employer that was not issued a special certificate 

5 under this subsection before the date of enactment of the 

6 Transformation to Competitive Integrated Employment 

7 Act. 

8 ‘‘(7) SUNSET.—Beginning on the day after the date 

9 that is 4 years after the effective date described in section 

10 201(b) of the Transformation to Competitive Integrated 

11 Employment Act— 

12 ‘‘(A) the authority to issue special certificates 

13 under paragraph (1) shall expire; and 

14 ‘‘(B) no special certificates issued under para15 graph (1) shall have any legal effect.’’. 

16 TITLE III—TECHNICAL ASSIST17 ANCE AND DISSEMINATION 

18 SEC. 301. TECHNICAL ASSISTANCE AND DISSEMINATION. 

19 (a) GRANT AUTHORIZED.—From the amounts appro20 priated for this title, the Secretary (acting through the 

21 Office of Disability Employment Policy of the Department 

22 of Labor in partnership with the Employment and Train23 ing Administration of the Department of Labor), in part24 nership with the Administration for Community Living of 

25 the Department of Health and Human Services and the 


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1 Office of Special Education and Rehabilitative Services of 

2 the Department of Education, shall award a grant to a 

3 nonprofit entity to— 

4 (1)(A) provide technical assistance to employers 

5 who are transforming from employing individuals 

6 with disabilities using special certificates to pro7 viding competitive integrated employment; 

8 (B) identify and disseminate private and public 

9 sector models of the transition described in subpara10 graph (A); and 

11 (C) build a set of replicable strategies for em12 ployers using special certificates to increase their use 

13 of evidence-based practices in providing competitive 

14 integrated employment and increase their options for 

15 providing competitive integrated employment; 

16 (2) collect and disseminate— 

17 (A) evidence-based practices with respect 

18 to the transformations described in paragraph 

19 (1)(A), including practices that increase aware20 ness of and access to training materials from 

21 and opportunities offered through the Office of 

22 Disability Employment Policy of the Depart23 ment of Labor; and 

24 (B) evidence-based strategies for imple25 menting the aims of activities, intended to imVerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263

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1 prove the quality of integrated services to result 

2 in competitive integrated employment for indi3 viduals with disabilities, carried out— 

4 (i) under the Workforce Innovation 

5 and Opportunity Act (29 U.S.C. 3101 et 

6 seq.); 

7 (ii) through settlement agreements 

8 made pursuant to the employment require9 ments under the Olmstead decision; or 

10 (iii) through home and community11 based services described in the Home and 

12 Community-Based Services (HCBS) final 

13 rule published on January 16, 2014 (79 

14 Fed. Reg. 2948), or a successor rule; 

15 (3) leverage and increase awareness of and ac16 cess to training materials and opportunities made 

17 available through training and technical assistance 

18 investments of— 

19 (A) the Office of Disability Employment 

20 Policy of the Department of Labor; 

21 (B) the Employment and Training Admin22 istration of the Department of Labor; 

23 (C) the Administration for Community 

24 Living of the Department of Health and 

25 Human Services; and 


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1 (D) the Office of Special Education and 

2 Rehabilitative Services of the Department of 

3 Education; and 

4 (4)(A) raise awareness of efforts in States to 

5 carry out the Employment First initiative; and 

6 (B) coordinate dissemination efforts related to 

7 ABLE accounts and other financial asset develop8 ment resources through the ABLE National Re9 source Center and the Department of the Treasury. 

10 (b) APPLICATION.— 

11 (1) IN GENERAL.—To be eligible to receive a 

12 grant under this section, a nonprofit entity shall 

13 submit an application to the Secretary at such time, 

14 in such manner, and including such information that 

15 the Secretary may reasonably require. 

16 (2) CONTENTS.—Each application submitted 

17 under paragraph (1) shall include— 

18 (A) a description of the nonprofit entity’s 

19 expertise in providing technical assistance that 

20 shall include evidence of— 

21 (i) knowledge of transforming busi22 ness and program models providing em23 ployment using special certificates to mod24 els providing competitive integrated em25 ployment and integrated services; 


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1 (ii) knowledge of methods for sup2 porting employers, including employers not 

3 receiving a grant under title I, to trans4 form as described in clause (i); 

5 (iii) experience working with non6 profit, for-profit, Federal, State, and local 

7 agencies focusing on employment of youth 

8 and adults who are individuals with dis9 abilities; and 

10 (iv) experience working with individ11 uals with disabilities and their families; 

12 (B) a description of the nonprofit entity’s 

13 expertise in providing, collecting, compiling, 

14 communicating, and disseminating information 

15 about program and systems change for pro16 grams serving individuals with disabilities that 

17 shall include— 

18 (i) expertise documenting program 

19 change; 

20 (ii) experience compiling recommended 

21 practices related to program trans22 formations; 

23 (iii) expertise regarding competitive 

24 integrated employment for youth and 

25 adults who are individuals with disabilities; 


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1 (iv) expertise working with individuals 

2 with disabilities and their families through 

3 systems change procedures; 

4 (v) expertise creating accessible prod5 ucts to disseminate learned information, 

6 including through web-based means; 

7 (vi) experience creating accessible 

8 websites to disseminate information; 

9 (vii) experience working with non10 profit, for-profit, Federal, State, and local 

11 agencies focusing on employment of youth 

12 and adults who are individuals with dis13 abilities; 

14 (viii) experience with assisting youth 

15 who are individuals with disabilities in 

16 transitioning from receiving services under 

17 the Individuals with Disabilities Education 

18 Act (20 U.S.C. 1401 et seq.) to inclusive 

19 postsecondary education and competitive 

20 integrated employment; and 

21 (ix) experience leveraging resources, 

22 available through the Office of Disability 

23 Employment Policy and the Employment 

24 and Training Administration, that are de25 signed to provide effective and efficient 


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1 services to job seekers who are individuals 

2 with disabilities in competitive integrated 

3 employment settings; and 

4 (C) a description of the individuals at the 

5 nonprofit entity who will be responsible for car6 rying out the activities under this title. 

7 (3) DURATION OF AWARD.—A grant under this 

8 section shall be awarded for a period of 6 years, and 

9 shall be non-renewable. 

10 (4) NONPROFIT ENTITY DEFINED.—In this sec11 tion, the term ‘‘nonprofit entity’’ means a nonprofit 

12 entity with expertise in collecting, compiling, com13 municating, and disseminating information about 

14 program and systems change for programs serving 

15 individuals with disabilities. 

16 TITLE IV—REPORTING AND 

17 EVALUATION 

18 SEC. 401. IMPACT EVALUATION AND REPORTING. 

19 (a) IN GENERAL.—Not later than 6 months after the 

20 date of enactment of this Act, the Secretary shall enter 

21 into a contract with a nonprofit entity with experience in 

22 conducting evaluations of program and systems change ef23 forts to— 

24 (1) conduct a multi-year evaluation on the im25 pact of this Act, including the amendments made by 


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1 this Act, with respect to individuals with disabilities 

2 (including such individuals receiving a wage rate 

3 under section 14(c) of the Fair Labor Standards Act 

4 of 1938 (29 U.S.C. 214(c)), as amended by title II); 

5 and 

6 (2) prepare the reports described in subsection 

7 (c). 

8 (b) EVALUATION.—In carrying out subsection (a)(1), 

9 the nonprofit entity awarded a contract under this section 

10 shall evaluate— 

11 (1) changes in wages and employment for indi12 viduals described in subsection (a)(1); and 

13 (2) actions taken by employers and States to 

14 comply with the amendments made by title II and, 

15 in the case of an employer or State receiving funds 

16 under title I, to comply with the transformation re17 quirements under such title. 

18 (c) REPORTS.—The Secretary shall submit to the 

19 Committee on Health, Education, Labor, and Pensions of 

20 the Senate and the Committee on Education and the 

21 Workforce of the House of Representatives, the following 

22 reports on the evaluation conducted under subsection 

23 (a)(1): 


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1 (1) An interim report on the evaluation, not 

2 later than 3 years after the evaluation commences 

3 under subsection (a)(1). 

4 (2) A final report on such evaluation, not later 

5 than 18 months after the date on which the legal ef6 fect of special certificates expire pursuant to para7 graph (7) of section 14(c) of the Fair Labor Stand8 ards Act of 1938 (29 U.S.C. 214(c)), as added by 

9 title II. 

10 SEC. 402. WAGE AND HOUR REPORTS. 

11 (a) IN GENERAL.—For each year of the 5-year period 

12 described in section 14(c)(1)(A) of the Fair Labor Stand13 ards Act of 1938 (29 U.S.C. 214(c)(1)(A)), as amended 

14 by title II, the Secretary (acting through the Adminis15 trator of the Wage and Hour Division), in coordination 

16 with the Civil Rights Division of the Department of Jus17 tice, shall submit to the Committee on Health, Education, 

18 Labor, and Pensions of the Senate and the Committee on 

19 Education and the Workforce of the House of Representa20 tives, an annual report summarizing practices of employ21 ers providing employment using special certificates, which, 

22 with respect to the preceding year, shall include— 

23 (1) the number of employees (of such employ24 ers) who are individuals with disabilities and who 

25 are compensated at a rate that is less than— 


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1 (A) the higher of the rate specified in sec2 tion 6(a)(1) of the Fair Labor Standards Act of 

3 1938 (29 U.S.C. 206(a)(1)) or the rate speci4 fied in the applicable State or local minimum 

5 wage law; or 

6 (B) the customary rate paid by the em7 ployer for the same or similar work performed 

8 by other employees who are not individuals with 

9 disabilities, and who are similarly situated in 

10 similar occupations by the same employer and 

11 who have similar training, experience, and 

12 skills; 

13 (2) the type of employment setting (such as 

14 segregated employment or competitive integrated 

15 employment) and the integrated services provided by 

16 such employers; 

17 (3) the average hourly wage, minimum and 

18 maximum hourly wage, and average hours worked 

19 per week of employees described in paragraph (1), 

20 disaggregated by employer and by State; 

21 (4) the aggregate demographic characteristics 

22 of employees described in paragraph (1), including 

23 the gender, ethnicity, race, and type of disability of 

24 such employees; and 


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1 (5) the number of employees who have 

2 transitioned from employment provided under a spe3 cial certificate to competitive integrated employment, 

4 disaggregated by employer and by State. 

5 (b) REPORT ON SURVEY OF EXISTING SPECIAL CER6 TIFICATE HOLDERS.—Not later than 1 year after the date 

7 of enactment of this Act, the Secretary (acting through 

8 the Administrator of the Wage and Hour Division) shall— 

9 (1) survey not less than 10 percent of employ10 ers providing employment to employees using special 

11 certificates, as of the date of enactment of this Act, 

12 which shall include an evaluation of— 

13 (A) the training and support provided to 

14 such employees to promote their transition to 

15 competitive integrated employment; 

16 (B) the actions taken by employers to 

17 identify competitive integrated employment for 

18 such employees; and 

19 (C) the wages of such employees, including 

20 whether such wages are at a rate that is less 

21 than— 

22 (i) the higher of the rate specified in 

23 section 6(a)(1) of the Fair Labor Stand24 ards Act of 1938 (29 U.S.C. 206(a)(1)) or 


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1 the rate specified in the applicable State or 

2 local minimum wage law; or 

3 (ii) the customary rate paid by the 

4 employer for the same or similar work per5 formed by other employees who are not in6 dividuals with disabilities, and who are 

7 similarly situated in similar occupations by 

8 the same employer and who have similar 

9 training, experience, and skills; and 

10 (2) submit a report on the results of such sur11 vey to the Committee on Health, Education, Labor, 

12 and Pensions of the Senate, the Special Committee 

13 on Aging of the Senate, and the Committee on Edu14 cation and the Workforce of the House of Rep15 resentatives. 

16 TITLE V—GENERAL PROVISIONS 

17 SEC. 501. DEFINITIONS. 

18 In this Act: 

19 (1) ABLE ACCOUNT.—The term ‘‘ABLE ac20 count’’ has the meaning given such term in section 

21 529A(e)(6) of the Internal Revenue Code of 1986. 

22 (2) COMPETITIVE INTEGRATED EMPLOY23 MENT.—The term ‘‘competitive integrated employ24 ment’’ has the meaning given the term in section 


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1 7(5) of the Rehabilitation Act of 1973 (29 U.S.C. 

2 705(5)). 

3 (3) DISABILITY.—The term ‘‘disability’’ in4 cludes any intellectual, developmental, mental health, 

5 or other disability. 

6 (4) INTEGRATED COMMUNITY PARTICIPATION

7 AND WRAPAROUND SERVICES; INTEGRATED SERV8 ICES.— 

9 (A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the terms ‘‘integrated com11 munity participation and wraparound services’’ 

12 or ‘‘integrated services’’ mean services for indi13 viduals with disabilities that are— 

14 (i) designed to assist such individuals 

15 in developing skills and abilities to reside 

16 successfully in home and community-based 

17 settings; 

18 (ii) provided in accordance with a per19 son-centered written plan of care; 

20 (iii) created using evidence-based 

21 practices that lead to such individuals— 

22 (I) maintaining competitive inte23 grated employment; 

24 (II) achieving independent living; 

25 or 


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1 (III) maximizing socioeconomic 

2 self-sufficiency, optimal independence, 

3 and full participation in the commu4 nity; 

5 (iv) provided in a community location 

6 that is not specifically intended for individ7 uals with disabilities; 

8 (v) provided in a location that— 

9 (I) allows the individuals receiv10 ing the services to interact with indi11 viduals without disabilities to the full12 est extent possible; and 

13 (II) makes it possible for the in14 dividuals receiving the services to ac15 cess community resources that are not 

16 specifically intended for individuals 

17 with disabilities and to have the same 

18 opportunities to participate in the 

19 community as individuals who do not 

20 have a disability; 

21 (vi) provided in multiple locations to 

22 allow the individual receiving the services 

23 to have options, thereby— 


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1 (I) optimizing individual initia2 tive, autonomy, and independence; 

3 and 

4 (II) facilitating choice regarding 

5 services and supports, and choice re6 garding the provider of such services; 

7 and 

8 (vii) in compliance with the Home and 

9 Community-Based Services (HCBS) final 

10 rule published on January 16, 2014 (79 

11 Fed. Reg. 2948), or a successor rule. 

12 (B) EXCLUSIONS.—The terms ‘‘integrated 

13 community participation and wraparound serv14 ices’’ or ‘‘integrated services’’ shall not include 

15 a service provided in any of the following set16 tings: 

17 (i) A nursing facility. 

18 (ii) An institution for individuals with 

19 mental diseases. 

20 (iii) An intermediate care facility for 

21 individuals with intellectual disabilities. 

22 (iv) A congregate setting in which an 

23 individual does not have the ability, at the 

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1 dividual, to access services supporting the 

2 full inclusion and engagement of the indi3 vidual in the greater community. 

4 (5) LOCAL BOARD; LOCAL PLAN.—The terms 

5 ‘‘local board’’ and ‘‘local plan’’ have the meanings 

6 given such terms in section 3 of the Workforce Inno7 vation and Opportunity Act (29 U.S.C. 3102). 

8 (6) OLMSTEAD DECISION.—The term 

9 ‘‘Olmstead decision’’ means the decision of the Su10 preme Court of the United States in Olmstead v. 

11 L.C., 527 U.S. 581 (1999). 

12 (7) OLMSTEAD PLAN.—The term ‘‘Olmstead 

13 plan’’, with respect to a State, means the plan of the 

14 State for complying with the holding in the 

15 Olmstead decision. 

16 (8) INDIVIDUALS WITH DISABILITIES.—The 

17 term ‘‘individuals with disabilities’’ includes individ18 uals described in section 14(c)(1) of the Fair Labor 

19 Standards Act of 1938 (29 U.S.C. 214(c)(1)). 

20 (9) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Labor. 

22 (10) SPECIAL CERTIFICATE.—The term ‘‘spe23 cial certificate’’ means a special certificate issued 

24 under section 14(c) of the Fair Labor Standards Act 

25 of 1938 (29 U.S.C. 214(c)). 


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1 (11) STATE.—The term ‘‘State’’ means each of 

2 the 50 States, the District of Columbia, the Com3 monwealth of Puerto Rico, and the territory of 

4 Guam. 

5 (12) STATE BOARD.—The term ‘‘State board’’ 

6 has the meaning given such term in section 3 of the 

7 Workforce Innovation and Opportunity Act. 

8 (13) WORKFORCE DEVELOPMENT SYSTEM.— 

9 The term ‘‘workforce development system’’ has the 

10 meaning given such term in section 3 of the Work11 force Innovation and Opportunity Act. 

12 SEC. 502. AUTHORIZATION OF APPROPRIATIONS. 

13 There are authorized to be appropriated to carry out 

14 this Act (other than section 102(f)), $50,000,000 for each 

15 of fiscal years 2024 through 2029. 

Æ 


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