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[109th Congress Public Law 281]
[From the U.S. Government Printing Office]

[DOCID: f:publ281.109]

[[Page 120 STAT. 1173]]

Public Law 109-281
109th Congress

                                 An Act

 
     To amend the Workforce Investment Act of 1998 to provide for a 
       YouthBuild program. <<NOTE: Sept. 22, 2006 -  [S. 3534]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: YouthBuild Transfer Act. 29 
USC 2801 note.>> assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``YouthBuild Transfer Act''.

SEC. 2. YOUTHBUILD PROGRAM.

    (a) Establishment of YouthBuild Program in the Department of 
Labor.--Subtitle D of title I of the Workforce Investment Act of 1998 is 
amended by inserting before section 174 (29 U.S.C. 2919) the following 
new section:

``SEC. 173A. <<NOTE: 29 USC 2918a.>> YOUTHBUILD PROGRAM.

    ``(a) Statement of Purpose.--The purposes of this section are--
            ``(1) to enable disadvantaged youth to obtain the education 
        and employment skills necessary to achieve economic self-
        sufficiency in occupations in demand and postsecondary education 
        and training opportunities;
            ``(2) to provide disadvantaged youth with opportunities for 
        meaningful work and service to their communities;
            ``(3) to foster the development of employment and leadership 
        skills and commitment to community development among youth in 
        low-income communities; and
            ``(4) to expand the supply of permanent affordable housing 
        for homeless individuals and low-income families by utilizing 
        the energies and talents of disadvantaged youth.

    ``(b) Definitions.--In this section:
            ``(1) Adjusted income.--The term `adjusted income' has the 
        meaning given the term in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            ``(2) Applicant.--The term `applicant' means an eligible 
        entity that has submitted an application under subsection (c).
            ``(3) Eligible entity.--The term `eligible entity' means a 
        public or private nonprofit agency or organization (including a 
        consortium of such agencies or organizations), including--
                    ``(A) a community-based organization;
                    ``(B) a faith-based organization;
                    ``(C) an entity carrying out activities under this 
                title, such as a local board;
                    ``(D) a community action agency;
                    ``(E) a State or local housing development agency;

[[Page 120 STAT. 1174]]

                    ``(F) an Indian tribe or other agency primarily 
                serving Indians;
                    ``(G) a community development corporation;
                    ``(H) a State or local youth service or conservation 
                corps; and
                    ``(I) any other entity eligible to provide education 
                or employment training under a Federal program (other 
                than the program carried out under this section).
            ``(4) Homeless individual.--The term `homeless individual' 
        has the meaning given the term in section 103 of the McKinney-
        Vento Homeless Assistance Act (42 U.S.C. 11302).
            ``(5) Housing development agency.--The term `housing 
        development agency' means any agency of a State or local 
        government, or any private nonprofit organization, that is 
        engaged in providing housing for homeless individuals or low-
        income families.
            ``(6) Income.--The term `income' has the meaning given the 
        term in section 3(b) of the United States Housing Act of 1937 
        (42 U.S.C. 1437a(b)).
            ``(7) Indian; indian tribe.--The terms `Indian' and `Indian 
        tribe' have the meanings given such terms in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(8) Individual of limited english proficiency.--The term 
        `individual of limited English proficiency' means an eligible 
        participant under this section who meets the criteria set forth 
        in section 203(10) of the Adult Education and Family Literacy 
        Act (20 U.S.C. 9202(10)).
            ``(9) Low-income family.--The term `low-income family' means 
        a family described in section 3(b)(2) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).
            ``(10) Qualified national nonprofit agency.--The term 
        `qualified national nonprofit agency' means a nonprofit agency 
        that--
                    ``(A) has significant national experience providing 
                services consisting of training, information, technical 
                assistance, and data management to YouthBuild programs 
                or similar projects; and
                    ``(B) has the capacity to provide those services.
            ``(11) Registered apprenticeship program.--The term 
        `registered apprenticeship program' means an apprenticeship 
        program--
                    ``(A) registered under the Act of August 16, 1937 
                (commonly known as the `National Apprenticeship Act'; 50 
                Stat. 664, chapter 663; 20 U.S.C. 50 et seq.); and
                    ``(B) that meets such other criteria as may be 
                established by the Secretary under this section.
            ``(12) Transitional housing.--The term `transitional 
        housing' means housing provided for the purpose of facilitating 
        the movement of homeless individuals to independent living 
        within a reasonable amount of time. The term includes housing 
        primarily designed to serve deinstitutionalized homeless 
        individuals and other homeless individuals who are individuals 
        with disabilities or members of families with children.
            ``(13) Youthbuild program.--The term `YouthBuild program' 
        means any program that receives assistance under this section 
        and provides disadvantaged youth with opportunities

[[Page 120 STAT. 1175]]

        for employment, education, leadership development, and training 
        through the rehabilitation or construction of housing for 
        homeless individuals and low-income families, and of public 
        facilities.

    ``(c) YouthBuild Grants.--
            ``(1) Amounts of grants.--The Secretary is authorized to 
        make grants to applicants for the purpose of carrying out 
        YouthBuild programs approved under this section.
            ``(2) Eligible activities.--An entity that receives a grant 
        under this subsection shall use the funds made available through 
        the grant to carry out a YouthBuild program, which may include 
        the following activities:
                    ``(A) Education and workforce investment activities 
                including--
                          ``(i) work experience and skills training 
                      (coordinated, to the maximum extent feasible, with 
                      preapprenticeship and registered apprenticeship 
                      programs) in the rehabilitation and construction 
                      activities described in subparagraphs (B) and (C);
                          ``(ii) occupational skills training;
                          ``(iii) other paid and unpaid work 
                      experiences, including internships and job 
                      shadowing;
                          ``(iv) services and activities designed to 
                      meet the educational needs of participants, 
                      including--
                                    ``(I) basic skills instruction and 
                                remedial education;
                                    ``(II) language instruction 
                                educational programs for individuals 
                                with limited English proficiency;
                                    ``(III) secondary education services 
                                and activities, including tutoring, 
                                study skills training, and dropout 
                                prevention activities, designed to lead 
                                to the attainment of a secondary school 
                                diploma, General Education Development 
                                (GED) credential, or other State-
                                recognized equivalent (including 
                                recognized alternative standards for 
                                individuals with disabilities);
                                    ``(IV) counseling and assistance in 
                                obtaining postsecondary education and 
                                required financial aid; and
                                    ``(V) alternative secondary school 
                                services;
                          ``(v) counseling services and related 
                      activities, such as comprehensive guidance and 
                      counseling on drug and alcohol abuse and referral;
                          ``(vi) activities designed to develop 
                      employment and leadership skills, which may 
                      include community service and peer-centered 
                      activities encouraging responsibility and other 
                      positive social behaviors, and activities related 
                      to youth policy committees that participate in 
                      decision-making related to the program;
                          ``(vii) supportive services and provision of 
                      need-based stipends necessary to enable 
                      individuals to participate in the program and 
                      supportive services to assist individuals, for a 
                      period not to exceed 12 months after the 
                      completion of training, in obtaining or retaining 
                      employment, or applying for and transitioning to 
                      postsecondary education; and

[[Page 120 STAT. 1176]]

                          ``(viii) job search and assistance.
                    ``(B) Supervision and training for participants in 
                the rehabilitation or construction of housing, including 
                residential housing for homeless individuals or low-
                income families, or transitional housing for homeless 
                individuals.
                    ``(C) Supervision and training for participants in 
                the rehabilitation or construction of community and 
                other public facilities, except that not more than 10 
                percent of funds appropriated to carry out this section 
                may be used for such supervision and training.
                    ``(D) Payment of administrative costs of the 
                applicant, except that not more than 15 percent of the 
                amount of assistance provided under this subsection to 
                the grant recipient may be used for such costs.
                    ``(E) Adult mentoring.
                    ``(F) Provision of wages, stipends, or benefits to 
                participants in the program.
                    ``(G) Ongoing training and technical assistance that 
                are related to developing and carrying out the program.
                    ``(H) Follow-up services.
            ``(3) Application.--
                    ``(A) Form and procedure.--To be qualified to 
                receive a grant under this subsection, an eligible 
                entity shall submit an application at such time, in such 
                manner, and containing such information as the Secretary 
                may require.
                    ``(B) Minimum requirements.--The Secretary shall 
                require that the application contain, at a minimum--
                          ``(i) labor market information for the labor 
                      market area where the proposed program will be 
                      implemented, including both current data (as of 
                      the date of submission of the application) and 
                      projections on career opportunities in growing 
                      industries;
                          ``(ii) a request for the grant, specifying the 
                      amount of the grant requested and its proposed 
                      uses;
                          ``(iii) a description of the applicant and a 
                      statement of its qualifications, including a 
                      description of the applicant's relationship with 
                      local boards, one-stop operators, local unions, 
                      entities carrying out registered apprenticeship 
                      programs, other community groups, and employers, 
                      and the applicant's past experience, if any, with 
                      rehabilitation or construction of housing or 
                      public facilities, and with youth education and 
                      employment training programs;
                          ``(iv) a description of the proposed site for 
                      the proposed program;
                          ``(v) a description of the educational and job 
                      training activities, work opportunities, 
                      postsecondary education and training 
                      opportunities, and other services that will be 
                      provided to participants, and how those 
                      activities, opportunities, and services will 
                      prepare youth for employment in occupations in 
                      demand in the labor market area described in 
                      clause (i);
                          ``(vi) a description of the proposed 
                      rehabilitation or construction activities to be 
                      undertaken under the grant and the anticipated 
                      schedule for carrying out such activities;

[[Page 120 STAT. 1177]]

                          ``(vii) a description of the manner in which 
                      eligible youth will be recruited and selected as 
                      participants, including a description of 
                      arrangements that will be made with local boards, 
                      one-stop operators, community- and faith-based 
                      organizations, State educational agencies or local 
                      educational agencies (including agencies of Indian 
                      tribes), public assistance agencies, the courts of 
                      jurisdiction, agencies operating shelters for 
                      homeless individuals and other agencies that serve 
                      youth who are homeless individuals, foster care 
                      agencies, and other appropriate public and private 
                      agencies;
                          ``(viii) a description of the special outreach 
                      efforts that will be undertaken to recruit 
                      eligible young women (including young women with 
                      dependent children) as participants;
                          ``(ix) a description of the specific role of 
                      employers in the proposed program, such as their 
                      role in developing the proposed program and 
                      assisting in service provision and in placement 
                      activities;
                          ``(x) a description of how the proposed 
                      program will be coordinated with other Federal, 
                      State, and local activities and activities 
                      conducted by Indian tribes, such as local 
                      workforce investment activities, vocational 
                      education programs, adult and language instruction 
                      educational programs, activities conducted by 
                      public schools, activities, conducted by community 
                      colleges, national service programs, and other job 
                      training provided with funds available under this 
                      title;
                          ``(xi) assurances that there will be a 
                      sufficient number of adequately trained 
                      supervisory personnel in the proposed program;
                          ``(xii) a description of results to be 
                      achieved with respect to common indicators of 
                      performance for youth and lifelong learning, as 
                      identified by the Secretary;
                          ``(xiii) a description of the applicant's 
                      relationship with local building trade unions 
                      regarding their involvement in training to be 
                      provided through the proposed program, the 
                      relationship of the proposed program to 
                      established registered apprenticeship programs and 
                      employers, and the ability of the applicant to 
                      grant industry-recognized skill certification 
                      through the program;
                          ``(xiv) a description of activities that will 
                      be undertaken to develop the leadership skills of 
                      participants;
                          ``(xv) a detailed budget and a description of 
                      the system of fiscal controls, and auditing and 
                      accountability procedures, that will be used to 
                      ensure fiscal soundness for the proposed program;
                          ``(xvi) a description of the commitments for 
                      any additional resources (in addition to the funds 
                      made available through the grant) to be made 
                      available to the proposed program from--
                                    ``(I) the applicant;
                                    ``(II) recipients of other Federal, 
                                State or local housing and community 
                                development assistance who will sponsor 
                                any part of the rehabilitation, 
                                construction, operation and maintenance, 
                                or other

[[Page 120 STAT. 1178]]

                                housing and community development 
                                activities undertaken as part of the 
                                proposed program; or
                                    ``(III) entities carrying out other 
                                Federal, State, or local activities or 
                                activities conducted by Indian tribes, 
                                including vocational education programs, 
                                adult and language instruction 
                                educational programs, and job training 
                                provided with funds available under this 
                                title;
                          ``(xvii) information identifying, and a 
                      description of, the financing proposed for any--
                                    ``(I) rehabilitation of the property 
                                involved;
                                    ``(II) acquisition of the property; 
                                or
                                    ``(III) construction of the 
                                property;
                          ``(xviii) information identifying, and a 
                      description of, the entity that will operate and 
                      manage the property;
                          ``(xix) information identifying, and a 
                      description of, the data collection systems to be 
                      used;
                          ``(xx) a certification, by a public official 
                      responsible for the housing strategy for the State 
                      or unit of general local government within which 
                      the proposed program is located, that the proposed 
                      program is consistent with the housing strategy; 
                      and
                          ``(xxi) a certification that the applicant 
                      will comply with the requirements of the Fair 
                      Housing Act (42 U.S.C. 3601 et seq.) and will 
                      affirmatively further fair housing.
            ``(4) Selection criteria.--For an applicant to be eligible 
        to receive a grant under this subsection, the applicant and the 
        applicant's proposed program shall meet such selection criteria 
        as the Secretary shall establish under this section, which shall 
        include criteria relating to--
                    ``(A) the qualifications or potential capabilities 
                of an applicant;
                    ``(B) an applicant's potential for developing a 
                successful YouthBuild program;
                    ``(C) the need for an applicant's proposed program, 
                as determined by the degree of economic distress of the 
                community from which participants would be recruited 
                (measured by indicators such as poverty, youth 
                unemployment, and the number of individuals who have 
                dropped out of secondary school) and of the community in 
                which the housing and public facilities proposed to be 
                rehabilitated or constructed is located (measured by 
                indicators such as incidence of homelessness, shortage 
                of affordable housing, and poverty);
                    ``(D) the commitment of an applicant to providing 
                skills training, leadership development, and education 
                to participants;
                    ``(E) the focus of a proposed program on preparing 
                youth for occupations in demand or postsecondary 
                education and training opportunities;
                    ``(F) the extent of an applicant's coordination of 
                activities to be carried out through the proposed 
                program with local boards, one-stop operators, and one-
                stop partners participating in the operation of the one-
                stop delivery

[[Page 120 STAT. 1179]]

                system involved, or the extent of the applicant's good 
                faith efforts in achieving such coordination;
                    ``(G) the extent of the applicant's coordination of 
                activities with public education, criminal justice, 
                housing and community development, national service, or 
                postsecondary education or other systems that relate to 
                the goals of the proposed program;
                    ``(H) the extent of an applicant's coordination of 
                activities with employers in the local area involved;
                    ``(I) the extent to which a proposed program 
                provides for inclusion of tenants who were previously 
                homeless individuals in the rental housing provided 
                through the program;
                    ``(J) the commitment of additional resources (in 
                addition to the funds made available through the grant) 
                to a proposed program by--
                          ``(i) an applicant;
                          ``(ii) recipients of other Federal, State, or 
                      local housing and community development assistance 
                      who will sponsor any part of the rehabilitation, 
                      construction, operation and maintenance, or other 
                      housing and community development activities 
                      undertaken as part of the proposed program; or
                          ``(iii) entities carrying out other Federal, 
                      State, or local activities or activities conducted 
                      by Indian tribes, including vocational education 
                      programs, adult and language instruction 
                      educational programs, and job training provided 
                      with funds available under this title;
                    ``(K) the applicant's potential to serve different 
                regions, including rural areas and States that have not 
                previously received grants for YouthBuild programs; and
                    ``(L) such other factors as the Secretary determines 
                to be appropriate for purposes of carrying out the 
                proposed program in an effective and efficient manner.
            ``(5) <<NOTE: Notification. Deadline.>> Approval.--To the 
        extent practicable, the Secretary shall notify each applicant, 
        not later than 5 months after the date of receipt of the 
        application by the Secretary, whether the application is 
        approved or not approved.

    ``(d) Use of Housing Units.--Residential housing units rehabilitated 
or constructed using funds made available under subsection (c) shall be 
available solely--
            ``(1) for rental by, or sale to, homeless individuals or 
        low-income families; or
            ``(2) for use as transitional or permanent housing, for the 
        purpose of assisting in the movement of homeless individuals to 
        independent living.

    ``(e) Additional Program Requirements.--
            ``(1) Eligible participants.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an individual may participate in a 
                YouthBuild program only if such individual is--
                          ``(i) not less than age 16 and not more than 
                      age 24, on the date of enrollment;
                          ``(ii) a member of a low-income family, a 
                      youth in foster care (including youth aging out of 
                      foster care), a youth offender, a youth who is an 
                      individual with

[[Page 120 STAT. 1180]]

                      a disability, a child of incarcerated parents, or 
                      a migrant youth; and
                          ``(iii) a school dropout.
                    ``(B) Exception for individuals not meeting income 
                or educational need requirements.--Not more than 25 
                percent of the participants in such program may be 
                individuals who do not meet the requirements of clause 
                (ii) or (iii) of subparagraph (A), but who--
                          ``(i) are basic skills deficient, despite 
                      attainment of a secondary school diploma, General 
                      Education Development (GED) credential, or other 
                      State-recognized equivalent (including recognized 
                      alternative standards for individuals with 
                      disabilities); or
                          ``(ii) have been referred by a local secondary 
                      school for participation in a YouthBuild program 
                      leading to the attainment of a secondary school 
                      diploma.
            ``(2) Participation limitation.--An eligible individual 
        selected for participation in a YouthBuild program shall be 
        offered full-time participation in the program for a period of 
        not less than 6 months and not more than 24 months.
            ``(3) Minimum time devoted to educational services and 
        activities.--A YouthBuild program receiving assistance under 
        subsection (c) shall be structured so that participants in the 
        program are offered--
                    ``(A) education and related services and activities 
                designed to meet educational needs, such as those 
                specified in clauses (iv) through (vii) of subsection 
                (c)(2)(A), during at least 50 percent of the time during 
                which the participants participate in the program; and
                    ``(B) work and skill development activities such as 
                those specified in clauses (i), (ii), (iii), and (viii) 
                of subsection (c)(2)(A), during at least 40 percent of 
                the time during which the participants participate in 
                the program.
            ``(4) Authority restriction.--No provision of this section 
        may be construed to authorize any agency, officer, or employee 
        of the United States to exercise any direction, supervision, or 
        control over the curriculum, program of instruction, 
        administration, or personnel of any educational institution 
        (including a school) or school system, or over the selection of 
        library resources, textbooks, or other printed or published 
        instructional materials by any educational institution or school 
        system.
            ``(5) State and local standards.--All educational programs 
        and activities supported with funds provided under subsection 
        (c) shall be consistent with applicable State and local 
        educational standards. Standards and procedures for the programs 
        and activities that relate to awarding academic credit for and 
        certifying educational attainment in such programs and 
        activities shall be consistent with applicable State and local 
        educational standards.

    ``(f) Management and Technical Assistance.--
            ``(1) Secretary assistance.--The Secretary may enter into 
        contracts with 1 or more entities to provide assistance to the 
        Secretary in the management, supervision, and coordination of 
        the program carried out under this section.
            ``(2) Technical assistance.--
                    ``(A) Contracts and grants.--The Secretary shall 
                enter into contracts with or make grants to 1 or more

[[Page 120 STAT. 1181]]

                qualified national nonprofit agencies, in order to 
                provide training, information, technical assistance, and 
                data management to recipients of grants under subsection 
                (c).
                    ``(B) Reservation of funds.--Of the amounts 
                available under subsection (h) to carry out this section 
                for a fiscal year, the Secretary shall reserve 5 percent 
                to carry out subparagraph (A).
            ``(3) Capacity building grants.--
                    ``(A) In general.--In each fiscal year, the 
                Secretary may use not more than 3 percent of the amounts 
                available under subsection (h) to award grants to 1 or 
                more qualified national nonprofit agencies to pay for 
                the Federal share of the cost of capacity building 
                activities.
                    ``(B) Federal share.--The Federal share of the cost 
                described in subparagraph (A) shall be 25 percent. The 
                non-Federal share shall be provided from private 
                sources.

    ``(g) Subgrants and Contracts.--Each recipient of a grant under 
subsection (c) to carry out a YouthBuild program shall provide the 
services and activities described in this section directly or through 
subgrants, contracts, or other arrangements with local educational 
agencies, postsecondary educational institutions, State or local housing 
development agencies, other public agencies, including agencies of 
Indian tribes, or private organizations.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        for each of fiscal years 2007 through 2012 such sums as may be 
        necessary to carry out this section.
            ``(2) Fiscal year.--Notwithstanding section 189(g), 
        appropriations for any fiscal year for programs and activities 
        carried out under this section shall be available for obligation 
        only on the basis of a fiscal year.''.

    (b) Clerical Amendment.--Section 1(b) of the Workforce Investment 
Act of 1998 <<NOTE: 29 USC 2801 prec. note.>> (relating to the table of 
contents) is amended by inserting before the item relating to section 
174 the following:

``Sec. 173A. YouthBuild program''.

    (c) Exception to Program Year Appropriation Cycle Requirement.--
Section 189(g)(1)(A) of the Workforce Investment Act of 1998 (29 U.S.C. 
2939(g)(1)(A)) is amended by inserting ``and section 173A'' after 
``Except as provided in subparagraph (B)''.
    (d) Conforming Amendments.--
            (1) Section 3 of the Housing and Urban Development Act of 
        1968 (12 U.S.C. 1701u) is amended in paragraphs (1)(B)(iii) and 
        (2)(B) of subsection (c), and paragraphs (1)(B)(iii) and (2)(B) 
        of subsection (d), by striking ``Youthbuild'' and all that 
        follows and inserting ``YouthBuild programs receiving assistance 
        under section 173A of the Workforce Investment Act of 1998.''.
            (2) Section 507(b) of the Native American Housing Assistance 
        and Self-Determination Act of 1996 (25 U.S.C. 4183(b)) is 
        amended by striking ``subtitle D of title IV of the Cranston-
        Gonzalez National Affordable Housing Act,''.
            (3) Section 402 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12870) is amended by striking the second 
        sentence of subsections (a) and (b).

    (e) Repeal of Provisions.--Subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et seq.) is 
repealed.

[[Page 120 STAT. 1182]]

    (f) <<NOTE: 12 USC 1701u note.>> Effective Date.--This section and 
the amendments made by this section take effect on the earlier of--
            (1) the date of enactment of this Act; and
            (2) September 30, 2006.

SEC. 3. <<NOTE: 29 USC 2918a note.>> TRANSFER OF FUNCTIONS AND SAVINGS 
            PROVISIONS.

    (a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
            (1) the term ``Federal agency'' has the meaning given to the 
        term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, power, 
        authority, responsibility, right, privilege, activity, or 
        program; and
            (3) the term ``office'' includes any office, administration, 
        agency, institute, unit, organizational entity, or component 
        thereof.

    (b) Transfer of Functions.--There are transferred to the Department 
of Labor all functions which the Secretary of Housing and Urban 
Development exercised before the effective date of this section 
(including all related functions of any officer or employee of the 
Department of Housing and Urban Development) relating to subtitle D of 
title IV of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12899 et seq.).
    (c) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination of the functions that are transferred under 
subsection (b).
    (d) Personnel Provisions.--
            (1) Appointments.--The Secretary of Labor may appoint and 
        fix the compensation of such officers and employees, including 
        investigators, attorneys, and administrative law judges, as may 
        be necessary to carry out the respective functions transferred 
        under this section. Except as otherwise provided by law, such 
        officers and employees shall be appointed in accordance with the 
        civil service laws and their compensation fixed in accordance 
        with title 5, United States Code.
            (2) Experts and consultants.--The Secretary of Labor may 
        obtain the services of experts and consultants in accordance 
        with section 3109 of title 5, United States Code, and compensate 
        such experts and consultants for each day (including traveltime) 
        at rates not in excess of the rate of pay for level IV of the 
        Executive Schedule under section 5315 of such title. The 
        Secretary of Labor may pay experts and consultants who are 
        serving away from their homes or regular place of business 
        travel expenses and per diem in lieu of subsistence at rates 
        authorized by sections 5702 and 5703 of such title for persons 
        in Government service employed intermittently.

    (e) Delegation and Assignment.--Except where otherwise expressly 
prohibited by law or otherwise provided by this section, the Secretary 
of Labor may delegate any of the functions transferred to the Secretary 
of Labor by this section and any function transferred or granted to the 
Secretary of Labor after the effective date of this section to such 
officers and employees of the Department of Labor as the Secretary of 
Labor may designate, and may authorize successive redelegations of such 
functions as may be

[[Page 120 STAT. 1183]]

necessary or appropriate. No delegation of functions by the Secretary of 
Labor under this subsection or under any other provision of this section 
shall relieve the Secretary of Labor of responsibility for the 
administration of such functions.
    (f) Reorganization.--The Secretary of Labor is authorized to 
allocate or reallocate any function transferred under subsection (b) 
among the officers of the Department of Labor, and to establish, 
consolidate, alter, or discontinue such organizational entities in the 
Department of Labor as may be necessary or appropriate.
    (g) Rules.--The Secretary of Labor is authorized to prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 5, United 
States Code, such rules and regulations as the Secretary of Labor 
determines necessary or appropriate to administer and manage the 
functions of the Department of Labor.
    (h) Transfer and Allocations of Appropriations.--Except as otherwise 
provided in this section, the assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds used, held, arising from, 
available to, or to be made available in connection with the functions 
transferred by this section, subject to section 1531 of title 31, United 
States Code, shall be transferred to the Department of Labor. Unexpended 
funds transferred pursuant to this subsection shall be used only for the 
purposes for which the funds were originally authorized and 
appropriated.
    (i) Transfers.--The Director of the Office of Management and Budget, 
at such time or times as the Director shall provide, is authorized to 
make such determinations as may be necessary with regard to the 
functions transferred by this section, and to make such dispositions of 
assets, liabilities, grants, contracts, property, records, and 
unexpended balances of appropriations, authorizations, allocations, and 
other funds used, held, arising from, available to, or to be made 
available in connection with such functions, subject to section 1531 of 
title 31, United States Code, as may be necessary to carry out the 
provisions of this section. The Director of the Office of Management and 
Budget shall provide for the termination of the affairs of all entities 
terminated by this section and for such further measures and 
dispositions as may be necessary to effectuate the purposes of this 
section.
    (j) Savings Provisions.--
            (1) Continuing effect of legal documents.--All orders, 
        determinations, rules, regulations, permits, agreements, grants, 
        contracts, certificates, licenses, registrations, privileges, 
        and other administrative actions--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal agency or official thereof, or by a court of 
                competent jurisdiction, in the performance of functions 
                which are transferred under this section; and
                    (B) which are in effect at the time this section 
                takes effect, or were final before the effective date of 
                this section and are to become effective on or after the 
                effective date of this section,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, the Secretary of Labor or 
        other authorized official, a court of competent jurisdiction, or 
        by operation of law.

[[Page 120 STAT. 1184]]

            (2) Proceedings not affected.--The provisions of this 
        section shall not affect any proceedings, including notices of 
        proposed rulemaking, or any application for any license, permit, 
        certificate, or financial assistance pending before the 
        Department of Housing and Urban Development at the time this 
        section takes effect, with respect to functions transferred by 
        this section but such proceedings and applications shall be 
        continued. Orders shall be issued in such proceedings, appeals 
        shall be taken therefrom, and payments shall be made pursuant to 
        such orders, as if this section had not been enacted, and orders 
        issued in any such proceedings shall continue in effect until 
        modified, terminated, superseded, or revoked by a duly 
        authorized official, by a court of competent jurisdiction, or by 
        operation of law. Nothing in this paragraph shall be deemed to 
        prohibit the discontinuance or modification of any such 
        proceeding under the same terms and conditions and to the same 
        extent that such proceeding could have been discontinued or 
        modified if this section had not been enacted.
            (3) Suits not affected.--The provisions of this section 
        shall not affect suits commenced before the effective date of 
        this section, and in all such suits, proceedings shall be had, 
        appeals taken, and judgments rendered in the same manner and 
        with the same effect as if this section had not been enacted.
            (4) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Department of Housing and 
        Urban Development, or by or against any individual in the 
        official capacity of such individual as an officer of the 
        Department of Housing and Urban Development, shall abate by 
        reason of the enactment of this section.
            (5) Administrative actions relating to promulgation of 
        regulations.--Any administrative action relating to the 
        preparation or promulgation of a regulation by the Department of 
        Housing and Urban Development relating to a function transferred 
        under this section may be continued by the Department of Labor 
        with the same effect as if this section had not been enacted.

    (k) Separability.--If a provision of this section or its application 
to any person or circumstance is held invalid, neither the remainder of 
this section nor the application of the provision to other persons or 
circumstances shall be affected.
    (l) Transition.--The Secretary of Labor is authorized to utilize--
            (1) the services of such officers, employees, and other 
        personnel of the Department of Housing and Urban Development 
        with respect to functions transferred to the Department of Labor 
        by this section; and
            (2) funds appropriated to such functions for such period of 
        time,

as may reasonably be needed to facilitate the orderly implementation of 
this section.
    (m) Accomplishing Orderly Transfer.--Consistent with the 
requirements of this section, the Secretary of Labor and the Secretary 
of Housing and Urban Development shall take such actions as the 
Secretaries determine are appropriate to accomplish the orderly transfer 
of functions as described in subsection (b).
    (n) Administration of Prior Grants.--Notwithstanding any other 
provision of this Act, grants awarded under subtitle D of

[[Page 120 STAT. 1185]]

title IV of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12899 et seq.) with funds appropriated for fiscal year 2006 or a 
preceding fiscal year shall be subject to the continuing authority of 
the Secretary of Housing and Urban Development under the provisions of 
such subtitle, as in effect on the day before the date of enactment of 
this Act, until the authority to expend applicable funds for the grants, 
as specified by the Secretary of Housing and Urban Development, has 
expired and the Secretary has completed the administrative 
responsibilities associated with the grants.
    (o) References.--A reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to--
            (1) the Secretary of Housing and Urban Development with 
        regard to functions transferred under subsection (b), shall be 
        deemed to refer to the Secretary of Labor; and
            (2) the Department of Housing and Urban Development with 
        regard to functions transferred under subsection (b), shall be 
        deemed to refer to the Department of Labor.

    (p) Effective Date.--This section takes effect on the earlier of--
            (1) the date of enactment of this Act; and
            (2) September 30, 2006.

    Approved September 22, 2006.

LEGISLATIVE HISTORY--S. 3534:
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CONGRESSIONAL RECORD, Vol. 152 (2006):
            Aug. 3, considered and passed Senate.
            Sept. 6, considered and passed House.

                                  <all>
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