109TH CONGRESS

2D SESSION S. 3534

AN ACT

To amend the Workforce Investment Act of 1998 to provide

for a YouthBuild program.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘YouthBuild Transfer

5 Act’’.
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1 SEC. 2. YOUTHBUILD PROGRAM.

2 (a) ESTABLISHMENT OF YOUTHBUILD PROGRAM IN

3 THE DEPARTMENT OF LABOR.—Subtitle D of title I of

4 the Workforce Investment Act of 1998 is amended by in5 serting before section 174 (29 U.S.C. 2919) the following

6 new section:

7 ‘‘SEC. 173A. YOUTHBUILD PROGRAM.

8 ‘‘(a) STATEMENT OF PURPOSE.—The purposes of

9 this section are—

10 ‘‘(1) to enable disadvantaged youth to obtain

11 the education and employment skills necessary to

12 achieve economic self-sufficiency in occupations in

13 demand and postsecondary education and training

14 opportunities;

15 ‘‘(2) to provide disadvantaged youth with op16 portunities for meaningful work and service to their

17 communities;

18 ‘‘(3) to foster the development of employment

19 and leadership skills and commitment to community

20 development among youth in low-income commu21 nities; and

22 ‘‘(4) to expand the supply of permanent afford23 able housing for homeless individuals and low-in24 come families by utilizing the energies and talents of

25 disadvantaged youth.

26 ‘‘(b) DEFINITIONS.—In this section:
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1 ‘‘(1) ADJUSTED INCOME.—The term ‘adjusted

2 income’ has the meaning given the term in section

3 3(b) of the United States Housing Act of 1937 (42

4 U.S.C. 1437a(b)).

5 ‘‘(2) APPLICANT.—The term ‘applicant’ means

6 an eligible entity that has submitted an application

7 under subsection (c).

8 ‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en9 tity’ means a public or private nonprofit agency or

10 organization (including a consortium of such agen11 cies or organizations), including—

12 ‘‘(A) a community-based organization;

13 ‘‘(B) a faith-based organization;

14 ‘‘(C) an entity carrying out activities under

15 this title, such as a local board;

16 ‘‘(D) a community action agency;

17 ‘‘(E) a State or local housing development

18 agency;

19 ‘‘(F) an Indian tribe or other agency pri20 marily serving Indians;

21 ‘‘(G) a community development corpora22 tion;

23 ‘‘(H) a State or local youth service or con24 servation corps; and
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1 ‘‘(I) any other entity eligible to provide

2 education or employment training under a Fed3 eral program (other than the program carried

4 out under this section).

5 ‘‘(4) HOMELESS INDIVIDUAL.—The term

6 ‘homeless individual’ has the meaning given the term

7 in section 103 of the McKinney-Vento Homeless As8 sistance Act (42 U.S.C. 11302).

9 ‘‘(5) HOUSING DEVELOPMENT AGENCY.—The

10 term ‘housing development agency’ means any agen11 cy of a State or local government, or any private

12 nonprofit organization, that is engaged in providing

13 housing for homeless individuals or low-income fami14 lies.

15 ‘‘(6) INCOME.—The term ‘income’ has the

16 meaning given the term in section 3(b) of the United

17 States Housing Act of 1937 (42 U.S.C. 1437a(b)).

18 ‘‘(7) INDIAN; INDIAN TRIBE.—The terms ‘In19 dian’ and ‘Indian tribe’ have the meanings given

20 such terms in section 4 of the Indian Self-Deter21 mination and Education Assistance Act (25 U.S.C.

22 450b).

23 ‘‘(8) INDIVIDUAL OF LIMITED ENGLISH PRO24 FICIENCY.—The term ‘individual of limited English

25 proficiency’ means an eligible participant under this
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1 section who meets the criteria set forth in section

2 203(10) of the Adult Education and Family Lit3 eracy Act (20 U.S.C. 9202(10)).

4 ‘‘(9) LOW-INCOME FAMILY.—The term ‘low-in5 come family’ means a family described in section

6 3(b)(2) of the United States Housing Act of 1937

7 (42 U.S.C. 1437a(b)(2)).

8 ‘‘(10) QUALIFIED NATIONAL NONPROFIT AGEN9 CY.—The term ‘qualified national nonprofit agency’

10 means a nonprofit agency that—

11 ‘‘(A) has significant national experience

12 providing services consisting of training, infor13 mation, technical assistance, and data manage14 ment to YouthBuild programs or similar

15 projects; and

16 ‘‘(B) has the capacity to provide those

17 services.

18 ‘‘(11) REGISTERED APPRENTICESHIP PRO19 GRAM.—The term ‘registered apprenticeship pro20 gram’ means an apprenticeship program—

21 ‘‘(A) registered under the Act of August

22 16, 1937 (commonly known as the ‘National

23 Apprenticeship Act’; 50 Stat. 664, chapter 663;

24 20 U.S.C. 50 et seq.); and
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1 ‘‘(B) that meets such other criteria as may

2 be established by the Secretary under this sec3 tion.

4 ‘‘(12) TRANSITIONAL HOUSING.—The term

5 ‘transitional housing’ means housing provided for

6 the purpose of facilitating the movement of homeless

7 individuals to independent living within a reasonable

8 amount of time. The term includes housing pri9 marily designed to serve deinstitutionalized homeless

10 individuals and other homeless individuals who are

11 individuals with disabilities or members of families

12 with children.

13 ‘‘(13) YOUTHBUILD PROGRAM.—The term

14 ‘YouthBuild program’ means any program that re15 ceives assistance under this section and provides dis16 advantaged youth with opportunities for employ17 ment, education, leadership development, and train18 ing through the rehabilitation or construction of

19 housing for homeless individuals and low-income

20 families, and of public facilities.

21 ‘‘(c) YOUTHBUILD GRANTS.—

22 ‘‘(1) AMOUNTS OF GRANTS.—The Secretary is

23 authorized to make grants to applicants for the pur24 pose of carrying out YouthBuild programs approved

25 under this section.
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1 ‘‘(2) ELIGIBLE ACTIVITIES.—An entity that re2 ceives a grant under this subsection shall use the

3 funds made available through the grant to carry out

4 a YouthBuild program, which may include the fol5 lowing activities:

6 ‘‘(A) Education and workforce investment

7 activities including—

8 ‘‘(i) work experience and skills train9 ing (coordinated, to the maximum extent

10 feasible, with preapprenticeship and reg11 istered apprenticeship programs) in the re12 habilitation and construction activities de13 scribed in subparagraphs (B) and (C);

14 ‘‘(ii) occupational skills training;

15 ‘‘(iii) other paid and unpaid work ex16 periences, including internships and job

17 shadowing;

18 ‘‘(iv) services and activities designed

19 to meet the educational needs of partici20 pants, including—

21 ‘‘(I) basic skills instruction and

22 remedial education;

23 ‘‘(II) language instruction edu24 cational programs for individuals with

25 limited English proficiency;
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1 ‘‘(III) secondary education serv2 ices and activities, including tutoring,

3 study skills training, and dropout pre4 vention activities, designed to lead to

5 the attainment of a secondary school

6 diploma, General Education Develop7 ment (GED) credential, or other

8 State-recognized equivalent (including

9 recognized alternative standards for

10 individuals with disabilities);

11 ‘‘(IV) counseling and assistance

12 in obtaining postsecondary education

13 and required financial aid; and

14 ‘‘(V) alternative secondary school

15 services;

16 ‘‘(v) counseling services and related

17 activities, such as comprehensive guidance

18 and counseling on drug and alcohol abuse

19 and referral;

20 ‘‘(vi) activities designed to develop

21 employment and leadership skills, which

22 may include community service and peer23 centered activities encouraging responsi24 bility and other positive social behaviors,

25 and activities related to youth policy com-
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1 mittees that participate in decision-making

2 related to the program;

3 ‘‘(vii) supportive services and provi4 sion of need-based stipends necessary to

5 enable individuals to participate in the pro6 gram and supportive services to assist indi7 viduals, for a period not to exceed 12

8 months after the completion of training, in

9 obtaining or retaining employment, or ap10 plying for and transitioning to postsec11 ondary education; and

12 ‘‘(viii) job search and assistance.

13 ‘‘(B) Supervision and training for partici14 pants in the rehabilitation or construction of

15 housing, including residential housing for home16 less individuals or low-income families, or tran17 sitional housing for homeless individuals.

18 ‘‘(C) Supervision and training for partici19 pants in the rehabilitation or construction of

20 community and other public facilities, except

21 that not more than 10 percent of funds appro22 priated to carry out this section may be used

23 for such supervision and training.

24 ‘‘(D) Payment of administrative costs of

25 the applicant, except that not more than 15
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1 percent of the amount of assistance provided

2 under this subsection to the grant recipient may

3 be used for such costs.

4 ‘‘(E) Adult mentoring.

5 ‘‘(F) Provision of wages, stipends, or bene6 fits to participants in the program.

7 ‘‘(G) Ongoing training and technical as8 sistance that are related to developing and car9 rying out the program.

10 ‘‘(H) Follow-up services.

11 ‘‘(3) APPLICATION.—

12 ‘‘(A) FORM AND PROCEDURE.—To be

13 qualified to receive a grant under this sub14 section, an eligible entity shall submit an appli15 cation at such time, in such manner, and con16 taining such information as the Secretary may

17 require.

18 ‘‘(B) MINIMUM REQUIREMENTS.—The Sec19 retary shall require that the application contain,

20 at a minimum—

21 ‘‘(i) labor market information for the

22 labor market area where the proposed pro23 gram will be implemented, including both

24 current data (as of the date of submission
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1 of the application) and projections on ca2 reer opportunities in growing industries;

3 ‘‘(ii) a request for the grant, speci4 fying the amount of the grant requested

5 and its proposed uses;

6 ‘‘(iii) a description of the applicant

7 and a statement of its qualifications, in8 cluding a description of the applicant’s re9 lationship with local boards, one-stop oper10 ators, local unions, entities carrying out

11 registered apprenticeship programs, other

12 community groups, and employers, and the

13 applicant’s past experience, if any, with re14 habilitation or construction of housing or

15 public facilities, and with youth education

16 and employment training programs;

17 ‘‘(iv) a description of the proposed site

18 for the proposed program;

19 ‘‘(v) a description of the educational

20 and job training activities, work opportuni21 ties, postsecondary education and training

22 opportunities, and other services that will

23 be provided to participants, and how those

24 activities, opportunities, and services will

25 prepare youth for employment in occupa-
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1 tions in demand in the labor market area

2 described in clause (i);

3 ‘‘(vi) a description of the proposed re4 habilitation or construction activities to be

5 undertaken under the grant and the antici6 pated schedule for carrying out such activi7 ties;

8 ‘‘(vii) a description of the manner in

9 which eligible youth will be recruited and

10 selected as participants, including a de11 scription of arrangements that will be

12 made with local boards, one-stop operators,

13 community- and faith-based organizations,

14 State educational agencies or local edu15 cational agencies (including agencies of In16 dian tribes), public assistance agencies, the

17 courts of jurisdiction, agencies operating

18 shelters for homeless individuals and other

19 agencies that serve youth who are homeless

20 individuals, foster care agencies, and other

21 appropriate public and private agencies;

22 ‘‘(viii) a description of the special out23 reach efforts that will be undertaken to re24 cruit eligible young women (including
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1 young women with dependent children) as

2 participants;

3 ‘‘(ix) a description of the specific role

4 of employers in the proposed program,

5 such as their role in developing the pro6 posed program and assisting in service pro7 vision and in placement activities;

8 ‘‘(x) a description of how the proposed

9 program will be coordinated with other

10 Federal, State, and local activities and ac11 tivities conducted by Indian tribes, such as

12 local workforce investment activities, voca13 tional education programs, adult and lan14 guage instruction educational programs,

15 activities conducted by public schools, ac16 tivities, conducted by community colleges,

17 national service programs, and other job

18 training provided with funds available

19 under this title;

20 ‘‘(xi) assurances that there will be a

21 sufficient number of adequately trained su22 pervisory personnel in the proposed pro23 gram;

24 ‘‘(xii) a description of results to be

25 achieved with respect to common indicators
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1 of performance for youth and lifelong

2 learning, as identified by the Secretary;

3 ‘‘(xiii) a description of the applicant’s

4 relationship with local building trade

5 unions regarding their involvement in

6 training to be provided through the pro7 posed program, the relationship of the pro8 posed program to established registered

9 apprenticeship programs and employers,

10 and the ability of the applicant to grant in11 dustry-recognized skill certification

12 through the program;

13 ‘‘(xiv) a description of activities that

14 will be undertaken to develop the leader15 ship skills of participants;

16 ‘‘(xv) a detailed budget and a descrip17 tion of the system of fiscal controls, and

18 auditing and accountability procedures,

19 that will be used to ensure fiscal soundness

20 for the proposed program;

21 ‘‘(xvi) a description of the commit22 ments for any additional resources (in ad23 dition to the funds made available through

24 the grant) to be made available to the pro25 posed program from—
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1 ‘‘(I) the applicant;

2 ‘‘(II) recipients of other Federal,

3 State or local housing and community

4 development assistance who will spon5 sor any part of the rehabilitation, con6 struction, operation and maintenance,

7 or other housing and community de8 velopment activities undertaken as

9 part of the proposed program; or

10 ‘‘(III) entities carrying out other

11 Federal, State, or local activities or

12 activities conducted by Indian tribes,

13 including vocational education pro14 grams, adult and language instruction

15 educational programs, and job train16 ing provided with funds available

17 under this title;

18 ‘‘(xvii) information identifying, and a

19 description of, the financing proposed for

20 any—

21 ‘‘(I) rehabilitation of the property

22 involved;

23 ‘‘(II) acquisition of the property;

24 or
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1 ‘‘(III) construction of the prop2 erty;

3 ‘‘(xviii) information identifying, and a

4 description of, the entity that will operate

5 and manage the property;

6 ‘‘(xix) information identifying, and a

7 description of, the data collection systems

8 to be used;

9 ‘‘(xx) a certification, by a public offi10 cial responsible for the housing strategy

11 for the State or unit of general local gov12 ernment within which the proposed pro13 gram is located, that the proposed program

14 is consistent with the housing strategy;

15 and

16 ‘‘(xxi) a certification that the appli17 cant will comply with the requirements of

18 the Fair Housing Act (42 U.S.C. 3601 et

19 seq.) and will affirmatively further fair

20 housing.

21 ‘‘(4) SELECTION CRITERIA.—For an applicant

22 to be eligible to receive a grant under this sub23 section, the applicant and the applicant’s proposed

24 program shall meet such selection criteria as the
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1 Secretary shall establish under this section, which

2 shall include criteria relating to—

3 ‘‘(A) the qualifications or potential capa4 bilities of an applicant;

5 ‘‘(B) an applicant’s potential for devel6 oping a successful YouthBuild program;

7 ‘‘(C) the need for an applicant’s proposed

8 program, as determined by the degree of eco9 nomic distress of the community from which

10 participants would be recruited (measured by

11 indicators such as poverty, youth unemploy12 ment, and the number of individuals who have

13 dropped out of secondary school) and of the

14 community in which the housing and public fa15 cilities proposed to be rehabilitated or con16 structed is located (measured by indicators such

17 as incidence of homelessness, shortage of af18 fordable housing, and poverty);

19 ‘‘(D) the commitment of an applicant to

20 providing skills training, leadership develop21 ment, and education to participants;

22 ‘‘(E) the focus of a proposed program on

23 preparing youth for occupations in demand or

24 postsecondary education and training opportu25 nities;
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1 ‘‘(F) the extent of an applicant’s coordina2 tion of activities to be carried out through the

3 proposed program with local boards, one-stop

4 operators, and one-stop partners participating

5 in the operation of the one-stop delivery system

6 involved, or the extent of the applicant’s good

7 faith efforts in achieving such coordination;

8 ‘‘(G) the extent of the applicant’s coordina9 tion of activities with public education, criminal

10 justice, housing and community development,

11 national service, or postsecondary education or

12 other systems that relate to the goals of the

13 proposed program;

14 ‘‘(H) the extent of an applicant’s coordina15 tion of activities with employers in the local

16 area involved;

17 ‘‘(I) the extent to which a proposed pro18 gram provides for inclusion of tenants who were

19 previously homeless individuals in the rental

20 housing provided through the program;

21 ‘‘(J) the commitment of additional re22 sources (in addition to the funds made available

23 through the grant) to a proposed program by—

24 ‘‘(i) an applicant;
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1 ‘‘(ii) recipients of other Federal,

2 State, or local housing and community de3 velopment assistance who will sponsor any

4 part of the rehabilitation, construction, op5 eration and maintenance, or other housing

6 and community development activities un7 dertaken as part of the proposed program;

8 or

9 ‘‘(iii) entities carrying out other Fed10 eral, State, or local activities or activities

11 conducted by Indian tribes, including voca12 tional education programs, adult and lan13 guage instruction educational programs,

14 and job training provided with funds avail15 able under this title;

16 ‘‘(K) the applicant’s potential to serve dif17 ferent regions, including rural areas and States

18 that have not previously received grants for

19 YouthBuild programs; and

20 ‘‘(L) such other factors as the Secretary

21 determines to be appropriate for purposes of

22 carrying out the proposed program in an effec23 tive and efficient manner.

24 ‘‘(5) APPROVAL.—To the extent practicable, the

25 Secretary shall notify each applicant, not later than
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1 5 months after the date of receipt of the application

2 by the Secretary, whether the application is ap3 proved or not approved.

4 ‘‘(d) USE OF HOUSING UNITS.—Residential housing

5 units rehabilitated or constructed using funds made avail6 able under subsection (c) shall be available solely—

7 ‘‘(1) for rental by, or sale to, homeless individ8 uals or low-income families; or

9 ‘‘(2) for use as transitional or permanent hous10 ing, for the purpose of assisting in the movement of

11 homeless individuals to independent living.

12 ‘‘(e) ADDITIONAL PROGRAM REQUIREMENTS.—

13 ‘‘(1) ELIGIBLE PARTICIPANTS.—

14 ‘‘(A) IN GENERAL.—Except as provided in

15 subparagraph (B), an individual may partici16 pate in a YouthBuild program only if such indi17 vidual is—

18 ‘‘(i) not less than age 16 and not

19 more than age 24, on the date of enroll20 ment;

21 ‘‘(ii) a member of a low-income fam22 ily, a youth in foster care (including youth

23 aging out of foster care), a youth offender,

24 a youth who is an individual with a dis-
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1 ability, a child of incarcerated parents, or

2 a migrant youth; and

3 ‘‘(iii) a school dropout.

4 ‘‘(B) EXCEPTION FOR INDIVIDUALS NOT

5 MEETING INCOME OR EDUCATIONAL NEED RE6 QUIREMENTS.—Not more than 25 percent of

7 the participants in such program may be indi8 viduals who do not meet the requirements of

9 clause (ii) or (iii) of subparagraph (A), but

10 who—

11 ‘‘(i) are basic skills deficient, despite

12 attainment of a secondary school diploma,

13 General Education Development (GED)

14 credential, or other State-recognized equiv15 alent (including recognized alternative

16 standards for individuals with disabilities);

17 or

18 ‘‘(ii) have been referred by a local sec19 ondary school for participation in a

20 YouthBuild program leading to the attain21 ment of a secondary school diploma.

22 ‘‘(2) PARTICIPATION LIMITATION.—An eligible

23 individual selected for participation in a YouthBuild

24 program shall be offered full-time participation in
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1 the program for a period of not less than 6 months

2 and not more than 24 months.

3 ‘‘(3) MINIMUM TIME DEVOTED TO EDU4 CATIONAL SERVICES AND ACTIVITIES.—A

5 YouthBuild program receiving assistance under sub6 section (c) shall be structured so that participants in

7 the program are offered—

8 ‘‘(A) education and related services and ac9 tivities designed to meet educational needs,

10 such as those specified in clauses (iv) through

11 (vii) of subsection (c)(2)(A), during at least 50

12 percent of the time during which the partici13 pants participate in the program; and

14 ‘‘(B) work and skill development activities

15 such as those specified in clauses (i), (ii), (iii),

16 and (viii) of subsection (c)(2)(A), during at

17 least 40 percent of the time during which the

18 participants participate in the program.

19 ‘‘(4) AUTHORITY RESTRICTION.—No provision

20 of this section may be construed to authorize any

21 agency, officer, or employee of the United States to

22 exercise any direction, supervision, or control over

23 the curriculum, program of instruction, administra24 tion, or personnel of any educational institution (in25 cluding a school) or school system, or over the selec-
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1 tion of library resources, textbooks, or other printed

2 or published instructional materials by any edu3 cational institution or school system.

4 ‘‘(5) STATE AND LOCAL STANDARDS.—All edu5 cational programs and activities supported with

6 funds provided under subsection (c) shall be con7 sistent with applicable State and local educational

8 standards. Standards and procedures for the pro9 grams and activities that relate to awarding aca10 demic credit for and certifying educational attain11 ment in such programs and activities shall be con12 sistent with applicable State and local educational

13 standards.

14 ‘‘(f) MANAGEMENT AND TECHNICAL ASSISTANCE.—

15 ‘‘(1) SECRETARY ASSISTANCE.—The Secretary

16 may enter into contracts with 1 or more entities to

17 provide assistance to the Secretary in the manage18 ment, supervision, and coordination of the program

19 carried out under this section.

20 ‘‘(2) TECHNICAL ASSISTANCE.—

21 ‘‘(A) CONTRACTS AND GRANTS.—The Sec22 retary shall enter into contracts with or make

23 grants to 1 or more qualified national nonprofit

24 agencies, in order to provide training, informa25 tion, technical assistance, and data manage-
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1 ment to recipients of grants under subsection

2 (c).

3 ‘‘(B) RESERVATION OF FUNDS.—Of the

4 amounts available under subsection (h) to carry

5 out this section for a fiscal year, the Secretary

6 shall reserve 5 percent to carry out subpara7 graph (A).

8 ‘‘(3) CAPACITY BUILDING GRANTS.—

9 ‘‘(A) IN GENERAL.—In each fiscal year,

10 the Secretary may use not more than 3 percent

11 of the amounts available under subsection (h)

12 to award grants to 1 or more qualified national

13 nonprofit agencies to pay for the Federal share

14 of the cost of capacity building activities.

15 ‘‘(B) FEDERAL SHARE.—The Federal

16 share of the cost described in subparagraph (A)

17 shall be 25 percent. The non-Federal share

18 shall be provided from private sources.

19 ‘‘(g) SUBGRANTS AND CONTRACTS.—Each recipient

20 of a grant under subsection (c) to carry out a YouthBuild

21 program shall provide the services and activities described

22 in this section directly or through subgrants, contracts,

23 or other arrangements with local educational agencies,

24 postsecondary educational institutions, State or local
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1 housing development agencies, other public agencies, in2 cluding agencies of Indian tribes, or private organizations.

3 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—

4 ‘‘(1) IN GENERAL.—There are authorized to be

5 appropriated for each of fiscal years 2007 through

6 2012 such sums as may be necessary to carry out

7 this section.

8 ‘‘(2) FISCAL YEAR.—Notwithstanding section

9 189(g), appropriations for any fiscal year for pro10 grams and activities carried out under this section

11 shall be available for obligation only on the basis of

12 a fiscal year.’’.

13 (b) CLERICAL AMENDMENT.—Section 1(b) of the

14 Workforce Investment Act of 1998 (relating to the table

15 of contents) is amended by inserting before the item relat16 ing to section 174 the following:

‘‘Sec. 173A. YouthBuild program’’.

17 (c) EXCEPTION TO PROGRAM YEAR APPROPRIATION

18 CYCLE REQUIREMENT.—Section 189(g)(1)(A) of the

19 Workforce Investment Act of 1998 (29 U.S.C.

20 2939(g)(1)(A)) is amended by inserting ‘‘and section

21 173A’’ after ‘‘Except as provided in subparagraph (B)’’.

22 (d) CONFORMING AMENDMENTS.—

23 (1) Section 3 of the Housing and Urban Devel24 opment Act of 1968 (12 U.S.C. 1701u) is amended

25 in paragraphs (1)(B)(iii) and (2)(B) of subsection
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1 (c), and paragraphs (1)(B)(iii) and (2)(B) of sub2 section (d), by striking ‘‘Youthbuild’’ and all that

3 follows and inserting ‘‘YouthBuild programs receiv4 ing assistance under section 173A of the Workforce

5 Investment Act of 1998.’’.

6 (2) Section 507(b) of the Native American

7 Housing Assistance and Self-Determination Act of

8 1996 (25 U.S.C. 4183(b)) is amended by striking

9 ‘‘subtitle D of title IV of the Cranston-Gonzalez Na10 tional Affordable Housing Act,’’.

11 (3) Section 402 of the Cranston-Gonzalez Na12 tional Affordable Housing Act (42 U.S.C. 12870) is

13 amended by striking the second sentence of sub14 sections (a) and (b).

15 (e) REPEAL OF PROVISIONS.—Subtitle D of title IV

16 of the Cranston-Gonzalez National Affordable Housing

17 Act (42 U.S.C. 12899 et seq.) is repealed.

18 (f) EFFECTIVE DATE.—This section and the amend19 ments made by this section take effect on the earlier of—

20 (1) the date of enactment of this Act; and

21 (2) September 30, 2006.

22 SEC. 3. TRANSFER OF FUNCTIONS AND SAVINGS PROVI23 SIONS.

24 (a) DEFINITIONS.—For purposes of this section, un25 less otherwise provided or indicated by the context—
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1 (1) the term ‘‘Federal agency’’ has the meaning

2 given to the term ‘‘agency’’ by section 551(1) of title

3 5, United States Code;

4 (2) the term ‘‘function’’ means any duty, obli5 gation, power, authority, responsibility, right, privi6 lege, activity, or program; and

7 (3) the term ‘‘office’’ includes any office, ad8 ministration, agency, institute, unit, organizational

9 entity, or component thereof.

10 (b) TRANSFER OF FUNCTIONS.—There are trans11 ferred to the Department of Labor all functions which the

12 Secretary of Housing and Urban Development exercised

13 before the effective date of this section (including all re14 lated functions of any officer or employee of the Depart15 ment of Housing and Urban Development) relating to sub16 title D of title IV of the Cranston-Gonzalez National Af17 fordable Housing Act (42 U.S.C. 12899 et seq.).

18 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY

19 THE OFFICE OF MANAGEMENT AND BUDGET.—If nec20 essary, the Office of Management and Budget shall make

21 any determination of the functions that are transferred

22 under subsection (b).

23 (d) PERSONNEL PROVISIONS.—

24 (1) APPOINTMENTS.—The Secretary of Labor

25 may appoint and fix the compensation of such offi-
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1 cers and employees, including investigators, attor2 neys, and administrative law judges, as may be nec3 essary to carry out the respective functions trans4 ferred under this section. Except as otherwise pro5 vided by law, such officers and employees shall be

6 appointed in accordance with the civil service laws

7 and their compensation fixed in accordance with title

8 5, United States Code.

9 (2) EXPERTS AND CONSULTANTS.—The Sec10 retary of Labor may obtain the services of experts

11 and consultants in accordance with section 3109 of

12 title 5, United States Code, and compensate such ex13 perts and consultants for each day (including travel14 time) at rates not in excess of the rate of pay for

15 level IV of the Executive Schedule under section

16 5315 of such title. The Secretary of Labor may pay

17 experts and consultants who are serving away from

18 their homes or regular place of business travel ex19 penses and per diem in lieu of subsistence at rates

20 authorized by sections 5702 and 5703 of such title

21 for persons in Government service employed inter22 mittently.

23 (e) DELEGATION AND ASSIGNMENT.—Except where

24 otherwise expressly prohibited by law or otherwise pro25 vided by this section, the Secretary of Labor may delegate
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1 any of the functions transferred to the Secretary of Labor

2 by this section and any function transferred or granted

3 to the Secretary of Labor after the effective date of this

4 section to such officers and employees of the Department

5 of Labor as the Secretary of Labor may designate, and

6 may authorize successive redelegations of such functions

7 as may be necessary or appropriate. No delegation of func8 tions by the Secretary of Labor under this subsection or

9 under any other provision of this section shall relieve the

10 Secretary of Labor of responsibility for the administration

11 of such functions.

12 (f) REORGANIZATION.—The Secretary of Labor is

13 authorized to allocate or reallocate any function trans14 ferred under subsection (b) among the officers of the De15 partment of Labor, and to establish, consolidate, alter, or

16 discontinue such organizational entities in the Department

17 of Labor as may be necessary or appropriate.

18 (g) RULES.—The Secretary of Labor is authorized to

19 prescribe, in accordance with the provisions of chapters

20 5 and 6 of title 5, United States Code, such rules and

21 regulations as the Secretary of Labor determines nec22 essary or appropriate to administer and manage the func23 tions of the Department of Labor.

24 (h) TRANSFER AND ALLOCATIONS OF APPROPRIA25 TIONS.—Except as otherwise provided in this section, the
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1 assets, liabilities, grants, contracts, property, records, and

2 unexpended balances of appropriations, authorizations, al3 locations, and other funds used, held, arising from, avail4 able to, or to be made available in connection with the

5 functions transferred by this section, subject to section

6 1531 of title 31, United States Code, shall be transferred

7 to the Department of Labor. Unexpended funds trans8 ferred pursuant to this subsection shall be used only for

9 the purposes for which the funds were originally author10 ized and appropriated.

11 (i) TRANSFERS.—The Director of the Office of Man12 agement and Budget, at such time or times as the Direc13 tor shall provide, is authorized to make such determina14 tions as may be necessary with regard to the functions

15 transferred by this section, and to make such dispositions

16 of assets, liabilities, grants, contracts, property, records,

17 and unexpended balances of appropriations, authoriza18 tions, allocations, and other funds used, held, arising from,

19 available to, or to be made available in connection with

20 such functions, subject to section 1531 of title 31, United

21 States Code, as may be necessary to carry out the provi22 sions of this section. The Director of the Office of Manage23 ment and Budget shall provide for the termination of the

24 affairs of all entities terminated by this section and for
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1 such further measures and dispositions as may be nec2 essary to effectuate the purposes of this section.

3 (j) SAVINGS PROVISIONS.—

4 (1) CONTINUING EFFECT OF LEGAL DOCU5 MENTS.—All orders, determinations, rules, regula6 tions, permits, agreements, grants, contracts, certifi7 cates, licenses, registrations, privileges, and other

8 administrative actions—

9 (A) which have been issued, made, grant10 ed, or allowed to become effective by the Presi11 dent, any Federal agency or official thereof, or

12 by a court of competent jurisdiction, in the per13 formance of functions which are transferred

14 under this section; and

15 (B) which are in effect at the time this

16 section takes effect, or were final before the ef17 fective date of this section and are to become

18 effective on or after the effective date of this

19 section,

20 shall continue in effect according to their terms until

21 modified, terminated, superseded, set aside, or re22 voked in accordance with law by the President, the

23 Secretary of Labor or other authorized official, a

24 court of competent jurisdiction, or by operation of

25 law.
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1 (2) PROCEEDINGS NOT AFFECTED.—The provi2 sions of this section shall not affect any proceedings,

3 including notices of proposed rulemaking, or any ap4 plication for any license, permit, certificate, or finan5 cial assistance pending before the Department of

6 Housing and Urban Development at the time this

7 section takes effect, with respect to functions trans8 ferred by this section but such proceedings and ap9 plications shall be continued. Orders shall be issued

10 in such proceedings, appeals shall be taken there11 from, and payments shall be made pursuant to such

12 orders, as if this section had not been enacted, and

13 orders issued in any such proceedings shall continue

14 in effect until modified, terminated, superseded, or

15 revoked by a duly authorized official, by a court of

16 competent jurisdiction, or by operation of law. Noth17 ing in this paragraph shall be deemed to prohibit the

18 discontinuance or modification of any such pro19 ceeding under the same terms and conditions and to

20 the same extent that such proceeding could have

21 been discontinued or modified if this section had not

22 been enacted.

23 (3) SUITS NOT AFFECTED.—The provisions of

24 this section shall not affect suits commenced before

25 the effective date of this section, and in all such
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1 suits, proceedings shall be had, appeals taken, and

2 judgments rendered in the same manner and with

3 the same effect as if this section had not been en4 acted.

5 (4) NONABATEMENT OF ACTIONS.—No suit, ac6 tion, or other proceeding commenced by or against

7 the Department of Housing and Urban Develop8 ment, or by or against any individual in the official

9 capacity of such individual as an officer of the De10 partment of Housing and Urban Development, shall

11 abate by reason of the enactment of this section.

12 (5) ADMINISTRATIVE ACTIONS RELATING TO

13 PROMULGATION OF REGULATIONS.—Any administra14 tive action relating to the preparation or promulga15 tion of a regulation by the Department of Housing

16 and Urban Development relating to a function

17 transferred under this section may be continued by

18 the Department of Labor with the same effect as if

19 this section had not been enacted.

20 (k) SEPARABILITY.—If a provision of this section or

21 its application to any person or circumstance is held in22 valid, neither the remainder of this section nor the applica23 tion of the provision to other persons or circumstances

24 shall be affected.
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1 (l) TRANSITION.—The Secretary of Labor is author2 ized to utilize—

3 (1) the services of such officers, employees, and

4 other personnel of the Department of Housing and

5 Urban Development with respect to functions trans6 ferred to the Department of Labor by this section;

7 and

8 (2) funds appropriated to such functions for

9 such period of time,

10 as may reasonably be needed to facilitate the orderly im11 plementation of this section.

12 (m) ACCOMPLISHING ORDERLY TRANSFER.—Con13 sistent with the requirements of this section, the Secretary

14 of Labor and the Secretary of Housing and Urban Devel15 opment shall take such actions as the Secretaries deter16 mine are appropriate to accomplish the orderly transfer

17 of functions as described in subsection (b).

18 (n) ADMINISTRATION OF PRIOR GRANTS.—Notwith19 standing any other provision of this Act, grants awarded

20 under subtitle D of title IV of the Cranston-Gonzalez Na21 tional Affordable Housing Act (42 U.S.C. 12899 et seq.)

22 with funds appropriated for fiscal year 2006 or a pre23 ceding fiscal year shall be subject to the continuing au24 thority of the Secretary of Housing and Urban Develop25 ment under the provisions of such subtitle, as in effect
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1 on the day before the date of enactment of this Act, until

2 the authority to expend applicable funds for the grants,

3 as specified by the Secretary of Housing and Urban Devel4 opment, has expired and the Secretary has completed the

5 administrative responsibilities associated with the grants.

6 (o) REFERENCES.—A reference in any other Federal

7 law, Executive order, rule, regulation, or delegation of au8 thority, or any document of or relating to—

9 (1) the Secretary of Housing and Urban Devel10 opment with regard to functions transferred under

11 subsection (b), shall be deemed to refer to the Sec12 retary of Labor; and

13 (2) the Department of Housing and Urban De14 velopment with regard to functions transferred

15 under subsection (b), shall be deemed to refer to the

16 Department of Labor.

17 (p) EFFECTIVE DATE.—This section takes effect on

18 the earlier of—

19 (1) the date of enactment of this Act; and

20 (2) September 30, 2006.

Passed the Senate August 3, 2006.

Attest:

Secretary.
109TH CONGRESS

2D SESSION S. 3534

AN ACT

To amend the Workforce Investment Act of 1998

to provide for a YouthBuild program.