I

103D CONGRESS

2D SESSION H. R. 3736

To provide incentives for job apprenticeship programs, enhance educational

opportunities, and study the feasibility of consolidating the administration

of all Federal dislocated worker programs.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 26, 1994

Mr. ANDREWS of Texas introduced the following bill; which was referred jointly to the Committees on Education and Labor, Ways and Means, and

Post Office and Civil Service

A BILL

To provide incentives for job apprenticeship programs, enhance educational opportunities, and study the feasibility

of consolidating the administration of all Federal dislocated worker programs.

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 ‘‘Workforce Education

5 Act of 1994’’.
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1 TITLE I—TARGETED JOBS CRED2 IT FOR SCHOOL-TO-WORK

3 PROGRAMS

4 SEC. 101. TARGETED JOBS CREDIT FOR PARTICIPANTS IN

5 APPROVED SCHOOL-TO-WORK PROGRAMS.

6 (a) IN GENERAL.—Subparagraph (I) of section

7 51(d)(1) of the Internal Revenue Code of 1986 (defining

8 members of targeted group) is amended to read as follows:

9 ‘‘(I) a qualified participant in an approved

10 school-to-work program, or’’.

11 (b) QUALIFIED PARTICIPANT IN AN APPROVED

12 SCHOOL-TO-WORK PROGRAM.—Paragraph (10) of section

13 51(d) of such Code is amended to read as follows:

14 ‘‘(10) QUALIFIED PARTICIPANT IN AN AP15 PROVED SCHOOL-TO-WORK PROGRAM DEFINED.—

16 ‘‘(A) IN GENERAL.—Except as otherwise

17 provided in this paragraph, the term ‘qualified

18 participant in an approved school-to-work pro19 gram’ means any individual who is certified

20 under an approved school-to-work program as—

21 ‘‘(i) having attained age 16 but not

22 having attained age 23, and

23 ‘‘(ii) being enrolled in and making

24 satisfactory progress in completing such

25 approved school-to-work program.
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1 ‘‘(B) LIMITATION ON NUMBER OF PARTICI2 PANTS.—

3 ‘‘(i) IN GENERAL.—Any individual

4 who begins work for the employer during

5 any calendar year shall not be treated as

6 a qualified participant in an approved

7 school-to-work program unless the individ8 ual is certified under such program as an

9 eligible participant with respect to such

10 calendar year.

11 ‘‘(ii) LIMITATION ON CERTIFI12 CATIONS.—The aggregate number of indi13 viduals certified under an approved school14 to-work program as eligible participants

15 with respect to any calendar year shall not

16 exceed the portion of the national school17 to-work program limitation for such cal18 endar year allocated under subsection (m)

19 to such program.

20 ‘‘(C) APPROVED SCHOOL-TO-WORK PRO21 GRAM.—The term ‘approved school-to-work pro22 gram’ means any program which—

23 ‘‘(i) is a planned program of struc24 tured job training designed to integrate

25 academic instruction provided by an edu-
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1 cational institution and work-based learn2 ing provided by an employer, and

3 ‘‘(ii) is approved by the Secretary of

4 Labor acting through the Bureau of Job

5 Apprenticeship.

6 ‘‘(D) WAGES.—In the case of remunera7 tion attributable to services performed while the

8 individual meets the requirements of subpara9 graph (A), wages, and unemployment insurance

10 wages, shall be determined without regard to

11 section 3306(c)(10)(C).

12 ‘‘(E) CROSS REFERENCE.—

‘‘For special rules and limitations applicable to

credit for qualified participants in approved schoolto-work programs, see subsections (l) and (m).’’

13 (c) SPECIAL RULES AND OVERALL LIMITATIONS.—

14 Section 51 of such Code is amended by adding at the end

15 thereof the following new subsections:

16 ‘‘(l) SPECIAL RULES FOR CREDIT FOR APPROVED

17 SCHOOL-TO-WORK PROGRAM PARTICIPANTS.—

18 ‘‘(1) TERMINATION NOT APPLICABLE.—Para19 graph (4) of subsection (c) shall not apply in the

20 case of any qualified participant in an approved

21 school-to-work program.

22 ‘‘(2) CREDIT NOT LIMITED TO FIRST YEAR

23 WAGES.—The credit determined under subsection

24 (a) with respect to any qualified participant in an
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1 approved school-to-work program shall be equal to

2 40 percent of the lesser of—

3 ‘‘(A) the wages paid or incurred by the em4 ployer during such taxable year to such quali5 fied participant, or

6 ‘‘(B) $6,000 reduced by the amount of

7 wages taken into account by the employer for

8 any prior taxable year with respect to such

9 qualified participant.

10 ‘‘(3) EARLY TERMINATION OF EMPLOYMENT.—

11 ‘‘(A) IN GENERAL.—If the employment of

12 any qualified participant in an approved school13 to-work program is terminated by the taxpayer

14 before the day 1 year after the day on which

15 such qualified participant began work for the

16 employer—

17 ‘‘(i) no wages with respect to such

18 participant shall be taken into account

19 under this section for the taxable year in

20 which such employment is terminated, and

21 ‘‘(ii) the tax under this chapter for

22 the taxable year in which such employment

23 is terminated shall be increased by the ag24 gregate credits (if any) allowed under sec25 tion 38 for prior taxable years by reason of
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1 wages taken into account with respect to

2 such qualified participant.

3 ‘‘(B) CERTAIN EXCEPTIONS AND OTHER

4 RULES MADE APPLICABLE.—Rules similar to

5 the rules of paragraphs (2), (3), and (4) of sec6 tion 45A(d) shall apply for purposes of sub7 paragraph (A).

8 ‘‘(m) OVERALL LIMITATION ON APPROVED SCHOOL9 TO-WORK PROGRAM PARTICIPANTS.—

10 ‘‘(1) IN GENERAL.—For purposes of subsection

11 (d)(10), the national school-to-work program limita12 tion—

13 ‘‘(A) for calendar year 1995 is 100,000,

14 ‘‘(B) for calendar year 1996 is 150,000,

15 ‘‘(C) for calendar year 1997 is 175,000,

16 and

17 ‘‘(D) for calendar year 1998 and any sub18 sequent calendar year is 200,000.

19 ‘‘(2) ALLOCATION TO STATES.—The national

20 school-to-work program limitation for any calendar

21 year shall be allocated among the States in propor22 tion to the number of their eligible participants that

23 are estimated to be served in approved school-to24 work programs for that year. Such estimates shall

25 be published by the Secretary of Labor acting
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1 through the Bureau of Job Apprenticeship before

2 the beginning of the calendar year to which the allo3 cation applies.

4 ‘‘(3) ALLOCATION TO APPROVED SCHOOL-TO5 WORK PROGRAMS.—The portion of the national

6 school-to-work program limitation for any calendar

7 year which is allocated to any State shall be allo8 cated among the approved school-to-work programs

9 in such State in such manner as the Secretary of

10 Labor acting through the Bureau of Job Apprentice11 ship shall prescribe.’’

12 (d) EFFECTIVE DATE.—The amendments made by

13 this section shall apply in the case of individuals who begin

14 work for the employer after December 31, 1994.

15 TITLE II—AUTHORIZATION OF

16 APPROPRIATIONS FOR THE

17 NATIONAL AND COMMUNITY

18 SERVICE ACT OF 1990

19 SEC. 201. AUTHORIZATION OF APPROPRIATIONS FOR THE

20 NATIONAL SERVICE TRUST PROGRAM, NA21 TIONAL SERVICE EDUCATIONAL AWARDS,

22 AND QUALITY AND INNOVATION ACTIVITIES.

23 Section 501(a)(2)(A) of the National and Community

24 Service Act of 1990 (42 U.S.C. 12681(a)(2)(A)) is amend25 ed by striking ‘‘$500,000,000 for fiscal year 1995, and
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1 $700,000,000 for fiscal year 1996’’ and inserting

2 ‘‘$1,000,000,000 for fiscal year 1995, $1,400,000,000 for

3 fiscal year 1996, and $3,000,000,000 for each of the fiscal

4 years 1997 through 1999’’.

5 SEC. 202. AUTHORIZATION OF APPROPRIATIONS FOR CIVIL6 IAN COMMUNITY CORPS DEMONSTRATION

7 PROGRAM.

8 Section 501(a)(3) of the National and Community

9 Service Act of 1990 (42 U.S.C. 12681(a)(3)) is amended

10 by striking ‘‘through 1996’’ and inserting ‘‘through

11 1999’’.

12 SEC. 203. AUTHORIZATION OF APPROPRIATIONS FOR AD13 MINISTRATION OF THE NATIONAL AND COM14 MUNITY SERVICE ACT OF 1990.

15 Section 501(a)(4)(A) of the National and Community

16 Service Act of 1990 (42 U.S.C. 12681(a)(4)(A)) is amend17 ed by striking ‘‘$60,000,000 for fiscal year 1995, and

18 $70,000,000 for fiscal year 1996’’ and inserting

19 ‘‘$80,000,000 for fiscal year 1995, $90,000,000 for fiscal

20 year 1996, and $100,000,000 for each of the fiscal years

21 1997 through 1999’’.
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1 TITLE III—STUDY AND REPORT

2 RELATING TO CONSOLIDA3 TION OF FEDERAL DIS4 LOCATED WORKER PRO5 GRAMS

6 SEC. 301. STUDY.

7 (a) IN GENERAL.—The Secretary of Labor shall con8 duct a study on the feasibility of consolidating the admin9 istration of the Federal dislocated worker programs de10 scribed in subsection (b) into a single comprehensive pro11 gram, the goals of which are—

12 (1) to speed up the process of determining the

13 eligibility of individuals for training and related serv14 ices under such programs;

15 (2) to give such individuals increased flexibility

16 in how they receive and use such training and relat17 ed services; and

18 (3) to reduce the overlap in administration

19 among such programs and to provide more efficient

20 service under such programs by establishing local

21 common points of access for such training and relat22 ed services.

23 (b) FEDERAL DISLOCATED WORKER PROGRAMS.—

24 The Federal dislocated worker programs described in this

25 subsection are—
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1 (1) programs under title III of the Job Train2 ing Partnership Act (29 U.S.C. 1651 et seq.), in3 cluding—

4 (A) the defense conversion adjustment pro5 gram under section 325 of such Act (29 U.S.C.

6 1662d);

7 (B) the defense diversification program

8 under section 325A of such Act (29 U.S.C.

9 1662d-1); and

10 (C) the clean air employment transition as11 sistance program under section 326 of such Act

12 (29 U.S.C. 1662e); and

13 (2) the trade adjustment assistance program

14 under chapter 2 of title II of the Trade Act of 1974

15 (19 U.S.C. 2271 et seq.).

16 SEC. 302. REPORT.

17 Not later than 1 year after the date of the enactment

18 of this Act, the Secretary of Labor shall submit to the

19 Congress a report containing—

20 (1) the results of the study carried out under

21 section 301; and

22 (2) if appropriate, recommendations for legisla23 tion to achieve the consolidation of the administra24 tion of the Federal dislocated worker programs de25 scribed in such section.
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1 TITLE IV—FINANCING

2 PROVISIONS

3 SEC. 401. REQUIRING CERTAIN AGENCIES TO PREFUND

4 GOVERNMENT HEALTH BENEFITS CONTRIBU5 TIONS FOR THEIR ANNUITANTS.

6 (a) DEFINITIONS.—For the purpose of this section—

7 (1) the term ‘‘agency’’ means any agency or

8 other instrumentality within the executive branch of

9 the Government, the receipts and disbursements of

10 which are not generally included in the totals of the

11 budget of the United States Government submitted

12 by the President;

13 (2) the term ‘‘health benefits plan’’ means, with

14 respect to an agency, a health benefits plan, estab15 lished by or under Federal law, in which employees

16 or annuitants of such agency may participate;

17 (3) the term ‘‘health–benefits coverage’’ means

18 coverage under a health benefits plan’’;

19 (4) an individual shall be considered to be an

20 ‘‘annuitant of an agency’’ if such individual is enti21 tled to an annuity, under a retirement system estab22 lished by or under Federal law, by virtue of—

23 (A) such individual’s service with, and sep24 aration from, such agency; or
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1 (B) being the survivor of an annuitant

2 under subparagraph (A) or of an individual who

3 died while employed by such agency; and

4 (5) the term ‘‘Office’’ means the Office of Per5 sonnel Management.

6 (b) PREFUNDING REQUIREMENT.—

7 (1) IN GENERAL.—Effective as of October 1,

8 1994, each agency (or February 1, 1995, in the case

9 of the agency with the greatest number of employ10 ees, as determined by the Office) shall be required

11 to prepay the Government contributions which are

12 or will be required in connection with providing

13 health–benefits coverage for annuitants of such

14 agency.

15 (2) REGULATIONS.—The Office shall prescribe

16 such regulations as may be necessary to carry out

17 this section. The regulations shall be designed to en18 sure at least the following:

19 (A) Amounts paid by each agency shall be

20 sufficient to cover the amounts which would

21 otherwise be payable by such agency (on a

22 ‘‘pay–as–you–go’’ basis), on or after the appli23 cable effective date under paragraph (1), on be24 half of—
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1 (i) individuals who are annuitants of

2 the agency as of such effective date; and

3 (ii) individuals who are employed by

4 the agency as of such effective date, or

5 who become employed by the agency after

6 such effective date, after such individuals

7 have become annuitants of the agency (in8 cluding their survivors).

9 (B)(i) For purposes of determining any

10 amounts payable by an agency—

11 (I) this section shall be treated as if

12 it had taken effect at the beginning of the

13 20–year period which ends on the effective

14 date applicable under paragraph (1) with

15 respect to such agency; and

16 (II) in addition to any amounts pay17 able under subparagraph (A), each agency

18 shall also be responsible for paying any

19 amounts for which it would have been re20 sponsible, with respect to the 20–year pe21 riod described in subclause (I), in connec22 tion with any individuals who are annu23 itants or employees of the agency as of the

24 applicable effective date under paragraph

25 (1).
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1 (ii) Any amounts payable under this sub2 paragraph for periods preceding the applicable

3 effective date under paragraph (1) shall be pay4 able in equal installments over the 20–year pe5 riod beginning on such effective date.

6 (c) FASB STANDARDS.—Regulations under sub7 section (b) shall be in conformance with the provisions of

8 standard 106 of the Financial Accounting Standards

9 Board, issued in December 1990.

10 (d) CLARIFICATION.—Nothing in this section shall be

11 considered to permit or require duplicative payments on

12 behalf of any individuals.

13 (e) DRAFT LEGISLATION.—The Office shall prepare

14 and submit to Congress any draft legislation which may

15 be necessary in order to carry out this section.

16 SEC. 402. RESCISSION OF FUNDS FOR TRAVEL ACCOUNTS.

17 (a) IN GENERAL.—Of the funds made available in

18 any appropriations Act for fiscal year 1994 to any execu19 tive department or agency, or any entity in the legislative

20 branch, for purposes of official travel, 15 percent is re21 scinded. The Director of the Office of Management and

22 Budget shall allocate such rescission among the appro23 priate accounts, and shall submit to the Congress a report

24 setting forth such allocation.
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1 (b) EXCEPTIONS.—Subsection (a) shall not apply

2 to—

3 (1) the Department of Defense, the Department

4 of Justice, the Department of State, the Department

5 of the Treasury, the Department of Veterans Af6 fairs, or any agency or office within any such de7 partment; or

8 (2) the Office of Personnel Management in car9 rying out its responsibilities under the Voting Rights

10 Act of 1965.

Æ