I 

116TH CONGRESS 

1ST SESSION H. R. 873 

To assist employers providing employment under special certificates issued 

under section 14(c) of the Fair Labor Standards Act of 1938 to transform their business and program models, to support individuals with 

disabilities to transition to competitive integrated employment, to phase 

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

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 30, 2019 

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

A BILL 

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

Standards Act of 1938 to transform their business and 

program models, to support individuals with disabilities 

to transition to competitive integrated employment, to 

phase out the use of such special certificates, and for 

other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

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

3 Competitive Employment Act’’. 

4 SEC. 2. TABLE OF CONTENTS. 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Purposes. 

TITLE I—COMPETITIVE INTEGRATED EMPLOYMENT 

TRANSFORMATION GRANT PROGRAMS 

Sec. 101. Program authorized. 

Sec. 102. State grant program. 

Sec. 103. Certificate holder grant program. 

TITLE II—PHASE OUT OF SPECIAL CERTIFICATES UNDER 

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

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

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

TITLE III—TECHNICAL ASSISTANCE AND DISSEMINATION 

Sec. 301. Grant authorized. 

Sec. 302. Application. 

TITLE IV—REPORTING AND EVALUATION 

Sec. 401. Impact evaluation and reporting. 

Sec. 402. Wage and hour report. 

TITLE V—GENERAL PROVISIONS 

Sec. 501. Definitions. 

Sec. 502. Authorization of appropriations. 

5 SEC. 3. PURPOSES. 

6 The purposes of this Act are to— 

7 (1) assist employers with special certificates 

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

10 their business and program models to models that 

11 support individuals with intellectual, developmental, 


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1 mental health, and other disabilities to find and re2 tain work in competitive integrated employment; 

3 (2) ensure individuals with disabilities, families, 

4 local and State governments, and other stakeholders 

5 are involved in the transformations described in 

6 paragraph (1); 

7 (3) ensure individuals employed in programs 

8 using such special certificates transition to competi9 tive integrated employment positions and, as needed, 

10 to services that support them as needed in inte11 grated home and community-based settings; 

12 (4) identify models and processes for shifting 

13 business and program models from such special cer14 tificates to competitive integrated employment mod15 els and integrated community participation and 

16 wraparound models, and to share that information 

17 with other such special certificate holders, State and 

18 local entities, and other service providers for those 

19 with intellectual, developmental, mental health, and 

20 other disabilities; and 

21 (5) support State and local governments as they 

22 revise and implement their Olmstead plans to im23 prove integrated employment options and home and 

24 community-based services options for all people with 

25 disabilities. 


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1 TITLE I—COMPETITIVE INTE2 GRATED EMPLOYMENT 

3 TRANSFORMATION GRANT 

4 PROGRAMS 

5 SEC. 101. PROGRAM AUTHORIZED. 

6 From the amounts appropriated to carry out this 

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

9 eligible entities to assist such States and entities to trans10 form their business and program models from providing 

11 employment using special certificates issued under section 

12 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 

13 214(c)) to models that support individuals with intellec14 tual, developmental, and other disabilities by— 

15 (1) operating competitive integrated employ16 ment businesses; 

17 (2) assisting such individuals in finding and re18 taining work in competitive integrated employment; 

19 and 

20 (3) providing integrated employment and inte21 grated community participation and wraparound 

22 services (in this Act referred to as ‘‘integrated serv23 ices’’) for such individuals. 

24 SEC. 102. STATE GRANT PROGRAM. 

25 (a) APPLICATION.— 


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

2 grant under this section, a State shall submit an ap3 plication to the Secretary at such time, in such man4 ner, and including such information as the Secretary 

5 may reasonably require. 

6 (2) CONTENTS.—Each application submitted 

7 under paragraph (1) shall include— 

8 (A) a description of the status of the em9 ployers in the State providing employment 

10 using special certificates, including— 

11 (i) the number of employers providing 

12 employment using special certificates; 

13 (ii) the number of such employers 

14 that provide competitive integrated employ15 ment, which shall include employers pro16 viding such employment in combination 

17 with integrated services; 

18 (iii) the number of employees em19 ployed under a special certificate, disaggre20 gated by employer; 

21 (iv) the average number of hours such 

22 an employee works per week (including the 

23 range and median of hours), disaggregated 

24 by employer, and reported for the State as 

25 a whole; and 


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1 (v) the average hourly wage for such 

2 an employee (including the range and me3 dian wage), disaggregated by employer, 

4 and reported for the State as a whole; 

5 (B) a description of activities to be funded 

6 under the grant, and the goals of such activi7 ties, including— 

8 (i) the process to be used to identify 

9 each employer in the State that will trans10 form its business and program models 

11 from providing employment using special 

12 certificates to providing competitive inte13 grated employment or a combination of 

14 competitive integrated employment and in15 tegrated services, which, by the end of the 

16 6-year grant period for the State, results 

17 in the discontinuation of employment using 

18 special certificates in the State, with the 

19 exception that any individual employed 

20 under a special certificate as of June 4, 

21 1997, may continue to be employed in the 

22 employment setting in which such indi23 vidual was employed as of the day before 

24 the date of enactment of this Act, without 

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1 tegrated employment or a combination of 

2 integrated employment and integrated 

3 services; 

4 (ii) the number of such employers in 

5 the State that will carry out a trans6 formation described in clause (i); 

7 (iii) the service delivery infrastructure 

8 that will be implemented in the State to 

9 support individuals who have been em10 ployed under special certificates through 

11 such a transformation; 

12 (iv) the integrated employment and 

13 integrated services that will be imple14 mented in the State to support such indi15 viduals; 

16 (v) the timeline for phasing out em17 ployment using special certificates in the 

18 State; 

19 (vi) a timeline for the expansion of 

20 employers that will provide competitive in21 tegrated employment or a combination of 

22 competitive integrated employment and in23 tegrated services for individuals who have 

24 been employed under special certificates; 


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1 (vii) a description of the expanded in2 tegrated employment and integrated serv3 ices to be provided to such individuals as 

4 a result of a transformations described in 

5 clause (i); and 

6 (viii) a description of the process to be 

7 used to engage stakeholders in such trans8 formations; 

9 (C) a description of how the activities 

10 under the grant will coordinate and align Fed11 eral, State, and local programs, agencies, and 

12 funding in the transformations described in 

13 subparagraph (B)(i); 

14 (D) a description of the State’s evaluation 

15 plan to determine the impact of the grant; 

16 (E) assurances that— 

17 (i) the activities carried out under the 

18 grant will result in each employer in the 

19 State that provides employment using spe20 cial certificates to transform as described 

21 in subparagraph (B)(i); 

22 (ii) individuals with the most signifi23 cant intellectual and developmental disabil24 ities who will be impacted by such a trans25 formation will be given priority in receiving 


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1 the necessary supports and services to suc2 ceed during and after such a trans3 formation; 

4 (iii) each individual in the State who 

5 is employed under a special certificate will, 

6 as a result of such a transformation, be 

7 employed in competitive integrated employ8 ment or be so employed and receive the in9 tegrated services desired by the individual; 

10 (iv) the State agencies responsible for 

11 developmental disability services, Medicaid, 

12 education, vocational rehabilitation, mental 

13 health services, and other supports agree 

14 to be partners in the goals of the grant; 

15 (v) the State will comply with require16 ments of the Secretary with respect to the 

17 collection of data and will require employ18 ers providing employment under special 

19 certificates in the State to comply with 

20 such requirements; 

21 (vi) the State will cooperate with the 

22 evaluation under title IV by providing all 

23 data required and allow the evaluation of 

24 activities under the grant; 


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1 (vii) the State will create an advisory 

2 council described in paragraph (3) to mon3 itor and guide the process of transforming 

4 business and program models of employers 

5 in the State; and 

6 (viii) the State will cooperate with the 

7 nonprofit entity carrying out technical as8 sistance and dissemination activities under 

9 title III; and 

10 (F) such other information and assurances 

11 as the Secretary may reasonably require. 

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

13 State receiving a grant under this section shall cre14 ate an advisory council composed of the following: 

15 (A) At least 25 percent of the members are 

16 individuals with disabilities. 

17 (B) Two family members of individuals 

18 with intellectual or developmental disabilities 

19 who are employed under a special certificate. 

20 (C) Two employers providing competitive 

21 integrated employment. 

22 (D) Two employers providing employment 

23 under special certificates. 


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1 (E) A representative of a nonprofit agency 

2 specializing in competitive integrated employ3 ment. 

4 (F) A representative of the State develop5 mental disability agency. 

6 (G) A representative of the State voca7 tional rehabilitation agency, as such term is 

8 used under the Rehabilitation Act of 1973 (29 

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

10 (H) A representative of an agency in the 

11 State described in paragraph (6) or (7) of sec12 tion 8501 of title 41, United States Code. 

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

15 under the Rehabilitation Act of 1973 (29 

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

17 (J) A representative of the State Council 

18 on Developmental Disabilities, as defined in sec19 tion 102 of the Developmental Disabilities As20 sistance and Bill of Rights Act of 2000 (42 

21 U.S.C. 15002). 

22 (K) A representative of one of the State 

23 University Centers for Excellence in Develop24 mental Disabilities Education, Research, and 

25 Service, established under subtitle D of title I 


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1 of the Developmental Disabilities Assistance 

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

3 15061 et seq.). 

4 (L) Representatives of other State agency 

5 and disability organizations (such as the State 

6 Medicaid agencies, State Protection and Advo7 cacy systems (as defined in section 102 of the 

8 Developmental Disabilities Assistance and Bill 

9 of Rights Act of 2000 (42 U.S.C. 15002)), and 

10 other disability related offices and groups with 

11 expertise in competitive integrated employ12 ment). 

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

15 this section equitably among geographic areas of the 

16 United States, and take into account rural and urban di17 versity. 

18 (c) DURATION OF AWARDS.—A grant under this sec19 tion shall be awarded for a period of 6 years. 

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

21 be awarded 1 grant under this section. 

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

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

24 than $2,000,000, or more than $10,000,000, for the 6- 

25 year grant period. 


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1 SEC. 103. CERTIFICATE HOLDER GRANT PROGRAM. 

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

3 under this section, an eligible entity shall submit an appli4 cation to the Secretary at such time, in such manner, and 

5 including such information as the Secretary may reason6 ably require. 

7 (b) CONTENTS.—Each application submitted under 

8 subsection (a) shall include— 

9 (1) the status of the eligible entity’s use of spe10 cial certificates to employ individuals, including— 

11 (A) the number of employees the eligible 

12 entity employs using such special certificates; 

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

14 range of hourly wages paid to employees em15 ployed using such special certificates during the 

16 previous year; 

17 (C) during the preceding 5-year period, the 

18 number of individuals who have been 

19 transitioned by the eligible entity from employ20 ment under such special certificates to competi21 tive integrated employment; and 

22 (D) a description of the business and pro23 gram models (including the financial and orga24 nizational structure) of the eligible entity that 

25 is using the special certificates, including— 


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1 (i) the number of employees paid at a 

2 wage below the Federal minimum wage 

3 under section 6(a) of the Fair Labor 

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

5 at the time of the application; 

6 (ii) the number and type of contracts 

7 the entity has entered into during the pre8 ceding 3 fiscal years; 

9 (iii) the budget and the funding struc10 ture for the preceding 3 fiscal years; 

11 (iv) the human resource structure; 

12 and 

13 (v) the community partners described 

14 in subsection (h)(2) that have partnered 

15 with the eligible entity; 

16 (2) a description of activities to be funded 

17 under the grant, and the goals of the grant activi18 ties, including— 

19 (A) a description of the business and pro20 gram models of competitive integrated employ21 ment or a combination of competitive integrated 

22 employment and integrated services into which 

23 the models of the eligible entity will transform, 

24 including the business plan, employment struc25 ture, and leadership organization; 


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1 (B) a description of the evidence-based, in2 tegrated services— 

3 (i) to be provided by the eligible enti4 ty; or 

5 (ii) the eligible entity’s process for re6 ferring an individual requiring such serv7 ices to a provider of such services to en8 sure that the individual receives such serv9 ices; 

10 (C) after the transformation of the eligible 

11 entity’s business and program models as de12 scribed in subparagraph (A), the number of em13 ployees that will be employed under such mod14 els; 

15 (D) the date on which the eligible entity 

16 will discontinue using special certificates, and 

17 the funding structure the eligible entity will use 

18 to provide competitive integrated employment 

19 or a combination of such employment and inte20 grated services; and 

21 (E) the process to be used for the trans22 formation of the eligible entity’s business and 

23 program models as described in subparagraph 

24 (A), including— 

25 (i) redesign of contracts; 


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1 (ii) any changes in funding sources; 

2 (iii) staff training on inclusive employ3 ment practices; 

4 (iv) input from key stakeholders, in5 cluding individuals with disabilities, their 

6 families, and other local stakeholders; and 

7 (v) a description of the individuals 

8 who will be responsible for the development 

9 and implementation of such process; 

10 (3) a timeline of activities to be implemented 

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

12 during the 3-year grant period; 

13 (4) a description of how the activities under the 

14 grant will coordinate and align Federal, State, and 

15 local programs, agencies, and funding in the trans16 formation described in paragraph (2)(A); 

17 (5) assurances that— 

18 (A) the activities carried out under the 

19 grant will result in the transformation described 

20 in paragraph (2)(A); 

21 (B) individuals who are employed by the 

22 eligible entity under special certificates will be 

23 employed in competitive integrated employment 

24 or be so employed and receive the integrated 

25 services desired by the individual; 


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1 (C) the eligible entity will comply with the 

2 requirements of the Secretary with respect to 

3 the collection of data; 

4 (D) the eligible entity will cooperate with 

5 the evaluation described in title IV by providing 

6 all data required and allow evaluation of the ac7 tivities under the grant; and 

8 (E) the eligible entity will cooperate with 

9 the nonprofit entity carrying out technical as10 sistance and dissemination required under title 

11 III; 

12 (6) a description of the eligible entity’s evalua13 tion plan to determine the impact of the grant; 

14 (7) assurances of collaboration and support 

15 from all State entities (including the State Medicaid 

16 agency, the State developmental disability agency, 

17 and the State vocational rehabilitation agency) for 

18 whom the eligible entity is an approved provider of 

19 services; and 

20 (8) such other information and assurances as 

21 the Secretary may reasonably require. 

22 (c) GEOGRAPHIC DIVERSITY.—To the extent prac23 ticable, the Secretary shall distribute grant funds under 

24 this section equitably among geographic areas of the 


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

2 diversity. 

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

4 Secretary shall distribute grant funds under this section 

5 equitably among eligible entities providing employment 

6 using special certificates serving different numbers of indi7 viduals. 

8 (e) DURATION OF AWARDS.— 

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

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

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

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

13 second grant cycle shall be awarded upon the expira14 tion of the first 3-year grant period under this sec15 tion. 

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

17 may only be awarded 1 grant under this section. 

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

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

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

21 grant period. 

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

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


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1 (1) employs individuals under special certifi2 cates and is located in a State that did not receive 

3 a grant under section 102; and 

4 (2) partners with at least 2 entities with experi5 ence providing support to individuals with disabil6 ities in competitive integrated employment, such 

7 as— 

8 (A) an employer providing competitive in9 tegrated employment; 

10 (B) a State developmental disability agen11 cy; 

12 (C) a State mental health services agency; 

13 (D) a representative of an agency de14 scribed in paragraph (6) or (7) of section 8501 

15 of title 41, United States Code; 

16 (E) a representative of the State Council 

17 on Developmental Disabilities, as defined in sec18 tion 102 of the Developmental Disabilities As19 sistance and Bill of Rights Act of 2000 (42 

20 U.S.C. 15002); 

21 (F) a representative of the State vocational 

22 rehabilitation agency, as such term is used 

23 under the Rehabilitation Act of 1973 (29 

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


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1 (G) a representative of the State inde2 pendent living centers, as such term is used 

3 under the Rehabilitation Act of 1973 (29 

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

5 (H) a representative of one of the State 

6 University Centers for Excellence in Develop7 mental Disabilities Education, Research, and 

8 Service, established under subtitle D of title I 

9 of the Developmental Disabilities Assistance 

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

11 15061 et seq.); and 

12 (I) a nonprofit agency specializing in com13 petitive integrated employment. 

14 TITLE II—PHASE OUT OF SPE15 CIAL CERTIFICATES UNDER 

16 SECTION 14(c) OF THE FAIR 

17 LABOR STANDARDS ACT OF 

18 1938 

19 SEC. 201. TRANSITION TO FAIR WAGES FOR INDIVIDUALS 

20 WITH DISABILITIES. 

21 Subparagraph (A) of section 14(c)(1) of the Fair 

22 Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is 

23 amended to read as follows: 

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

25 greater of— 


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1 ‘‘(i)(I) 50 percent of the wage rate in 

2 effect under section 6(a)(1), beginning 6 

3 months after the date of enactment of the 

4 Transformation to Competitive Employ5 ment Act; 

6 ‘‘(II) 60 percent of the wage rate in 

7 effect under section 6(a)(1), beginning 2 

8 years after such date; 

9 ‘‘(III) 70 percent of the wage rate in 

10 effect under section 6(a)(1), beginning 3 

11 years after such date; 

12 ‘‘(IV) 80 percent of the wage rate in 

13 effect under section 6(a)(1), beginning 4 

14 years after such date; 

15 ‘‘(V) 90 percent of the wage rate in 

16 effect under section 6(a)(1), beginning 5 

17 years after such date; and 

18 ‘‘(VI) the wage rate in effect under 

19 section 6(a)(1), on the date that is 6 years 

20 after the date of enactment of the Trans21 formation to Competitive Employment Act; 

22 or 

23 ‘‘(ii) the wage rate in effect on the 

24 day before the date of enactment of the 

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1 ment Act for the employment, under a spe2 cial certificate issued under this para3 graph, of the individual for whom the wage 

4 rate is determined under this paragraph.’’. 

5 SEC. 202. PROHIBITION ON NEW SPECIAL CERTIFICATES; 

6 SUNSET. 

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

8 1938 (29 U.S.C. 214(c)) (as amended by section 201), 

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

10 ‘‘(6) PROHIBITION ON NEW SPECIAL CERTIFI11 CATES.—Notwithstanding paragraph (1), the Secretary 

12 shall not issue a special certificate under this subsection 

13 to an employer that was not issued a special certificate 

14 under this subsection before the date of enactment of the 

15 Transformation to Competitive Employment Act. 

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

17 on which the wage rate described in paragraph 

18 (1)(A)(i)(VI) takes effect, the authority to issue special 

19 certificates under paragraph (1) shall expire, and no spe20 cial certificates issued under paragraph (1) shall have any 

21 legal effect.’’. 


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1 TITLE III—TECHNICAL ASSIST2 ANCE AND DISSEMINATION 

3 SEC. 301. GRANT AUTHORIZED. 

4 From the amounts appropriated for this title, the 

5 Secretary (acting through the Office of Disability Employ6 ment Policy) shall award a grant to a nonprofit entity to— 

7 (1) provide technical assistance to employers 

8 transforming their business and program models 

9 from providing employment for individuals with dis10 abilities under special certificates to providing com11 petitive integrated employment to such individuals; 

12 and 

13 (2) collect and disseminate learned practices on 

14 such transformations. 

15 SEC. 302. APPLICATION. 

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

17 under this section, a nonprofit entity shall submit an ap18 plication to the Secretary at such time, in such manner, 

19 and including such information that the Secretary may 

20 reasonably require. 

21 (b) CONTENTS.—Each application submitted under 

22 subsection (a) shall include— 

23 (1) a description of the nonprofit entity’s exper24 tise in providing technical assistance that shall in25 clude evidence of— 


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1 (A) knowledge of transforming business 

2 and program models providing employment 

3 using special certificates to models providing 

4 competitive integrated employment; 

5 (B) knowledge of methods for supporting 

6 employers, including employers not receiving a 

7 grant under title I, to transform as described in 

8 subparagraph (A); 

9 (C) experience working with nonprofit, for10 profit, local, State, and Federal agencies focus11 ing on employment of youth and adults with 

12 disabilities; and 

13 (D) experience working with individuals 

14 with disabilities and their families; and 

15 (2) a description of the nonprofit entity’s exper16 tise in providing, collecting, compiling, commu17 nicating, and disseminating information about pro18 gram and systems change for programs serving indi19 viduals with disabilities that shall include— 

20 (A) expertise documenting program 

21 change; 

22 (B) experience compiling recommended 

23 practices related to program transformations; 


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1 (C) expertise regarding competitive inte2 grated employment for youth and adults with 

3 disabilities; 

4 (D) expertise working with individuals with 

5 disabilities and their families through systems 

6 change procedures; 

7 (E) expertise creating products to dissemi8 nate learned information, including through 

9 web-based means; 

10 (F) experience creating websites to dis11 seminate information; and 

12 (G) experience working with nonprofit, for13 profit, local, State, and Federal agencies focus14 ing on employment of youth and adults with 

15 disabilities. 

16 (c) KEY PERSONNEL.—A description of the individ17 uals at the nonprofit entity who will be responsible for car18 rying out the activities of this title. 

19 (d) DURATION OF AWARD.—A grant under this sec20 tion shall be awarded for a period of 6 years, and shall 

21 be non-renewable. 

22 (e) NONPROFIT ENTITY DEFINED.—In this title, the 

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1 seminating information about program and systems 

2 change for programs serving individuals with disabilities. 

3 TITLE IV—REPORTING AND 

4 EVALUATION 

5 SEC. 401. IMPACT EVALUATION AND REPORTING. 

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

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

8 into a contract with a nonprofit entity with experience in 

9 conducting evaluations of program and systems change ef10 forts to— 

11 (1) conduct a multi-year evaluation on the im12 pact of this Act, including the amendments made by 

13 this Act, with respect to individuals with disabilities 

14 (including individuals receiving a wage rate under 

15 section 14(c) of the Fair Labor Standards Act of 

16 1938 (29 U.S.C. 214(c)), as amended by title II of 

17 this Act); and 

18 (2) prepare the reports described in subsection 

19 (c). 

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

21 the nonprofit entity awarded a contract under this section 

22 shall evaluate— 

23 (1) changes in wages and employment for indi24 viduals described in subsection (a)(1); and 


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1 (2) actions taken by employers and States to 

2 comply with the amendments made by title II and, 

3 in the case of an employer or State receiving funds 

4 under title I, to comply with the transformation re5 quirements under such title. 

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

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

8 the Senate and the Committee on Education and Labor 

9 of the House of Representatives, the following reports on 

10 the evaluation conducted under subsection (a)(1): 

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

12 later than 3 years after the evaluation commences 

13 under subsection (a)(1). 

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

15 than 18 months after the date on which the legal ef16 fect of special certificates expire pursuant to para17 graph (7) of section 14(c) of the Fair Labor Stand18 ards Act of 1938 (29 U.S.C. 214(c)), as added by 

19 title II of this Act. 

20 SEC. 402. WAGE AND HOUR REPORT. 

21 For each year of the 6-year period described in sec22 tion 14(c)(1)(A) of the Fair Labor Standards Act of 1938 

23 (29 U.S.C. 214(c)(1)(A)), as amended by title II of this 

24 Act, the Secretary (acting through the Administrator of 

25 the Wage and Hour Division of Department of Labor) 


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1 shall submit to the Committee on Health, Education, 

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

3 Education and Labor of the House of Representatives, an 

4 annual report summarizing practices of employers pro5 viding employment using special certificates which, with 

6 respect to the preceding year, shall include— 

7 (1) the number of employees paid a wage that 

8 is below the minimum wage specified under section 

9 6(a) of the Fair Labor Standards Act of 1938 (29 

10 U.S.C. 206(a)); 

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

12 segregated employment, competitive integrated em13 ployment, non-employment, or seeking employment) 

14 and the integrated services provided by such employ15 ers; 

16 (3) the average hourly wage, minimum and 

17 maximum hourly wage, and average hours worked 

18 per week, disaggregated by employer and by State; 

19 and 

20 (4) the number of employees who have 

21 transitioned from employment provided under a spe22 cial certificate to competitive integrated employment, 

23 disaggregated by employer and by State. 


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1 TITLE V—GENERAL PROVISIONS 

2 SEC. 501. DEFINITIONS. 

3 In this Act: 

4 (1) COMPETITIVE INTEGRATED EMPLOY5 MENT.—The term ‘‘competitive integrated employ6 ment’’ has the meaning given the term in section 

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

8 705(5)). 

9 (2) INTEGRATED COMMUNITY PARTICIPATION

10 AND WRAPAROUND SERVICES; INTEGRATED SERV11 ICES.— 

12 (A) IN GENERAL.—The terms ‘‘integrated 

13 community participation and wraparound serv14 ices’’ and ‘‘integrated services’’ mean services— 

15 (i) designed to assist individuals with 

16 disabilities in acquiring, retaining, and im17 proving skills necessary to reside success18 fully in home and community-based set19 tings; 

20 (ii) provided consistent with written 

21 plans of care; and 

22 (iii) that meet the following require23 ments with respect to the setting in which 

24 the services are provided: 


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1 (I) The services are provided to 

2 an individual in a setting that is in 

3 the community, which allows the indi4 vidual to engage in community life, 

5 receive the services in the community, 

6 and have the same access to the com7 munity as an individual not receiving 

8 the services. 

9 (II) Multiple service settings are 

10 provided as options to the individual 

11 receiving the services. 

12 (III) The service setting opti13 mizes individual initiative, autonomy, 

14 and independence. 

15 (IV) The service setting facili16 tates choice regarding services and 

17 supports, and choice regarding who 

18 provides the services. 

19 (B) EXCLUSIONS.—The following settings 

20 do not meet the requirements described in sub21 paragraph (A)(iii): 

22 (i) A nursing facility. 

23 (ii) An institution for mental diseases. 

24 (iii) An intermediate care facility for 

25 individuals with intellectual disabilities. 


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1 (3) INTEGRATED EMPLOYMENT.—The term 

2 ‘‘integrated employment’’ has the meaning given the 

3 term ‘‘competitive integrated employment’’ in sub4 paragraphs (B) and (C) of section 7(5) of the Reha5 bilitation Act of 1973 (29 U.S.C. 705(5)). 

6 (4) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of Labor. 

8 (5) SPECIAL CERTIFICATE.—The term ‘‘special 

9 certificate’’ means a special certificate issued under 

10 section 14(c) of the Fair Labor Standards Act of 

11 1938 (29 U.S.C. 214(c)). 

12 (6) STATE.—The term ‘‘State’’ means each of 

13 the 50 States, the District of Columbia, the Com14 monwealth of Puerto Rico, and the territory of 

15 Guam. 

16 SEC. 502. AUTHORIZATION OF APPROPRIATIONS. 

17 There are authorized to be appropriated to carry out 

18 this Act, $300,000,000 for fiscal years 2020 through 

19 2025. 

Æ 


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