I

104TH CONGRESS

2D SESSION H. R. 4292

To provide a comprehensive program of adjustment assistance to workers

displaced as a result of any program, project, or activity carried out

under Federal law.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 28, 1996

Mr. BROWN of California introduced the following bill; which was referred to

the Committee on Economic and Educational Opportunities, and in addition to the Committees on Transportation and Infrastructure, and Ways

and Means, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide a comprehensive program of adjustment assistance to workers displaced as a result of any program,

project, or activity carried out under Federal law.

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 ‘‘Displaced Worker Re5 training Act of 1993’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 The table of contents is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Authorization of appropriations.

Sec. 4. Definitions.

TITLE I—GRANTS TO STATES TO PROVIDE WORKER ADJUSTMENT ASSISTANCE BENEFITS TO ELIGIBLE DISPLACED WORKERS

Sec. 101. Authorization.

Sec. 102. Application.

Sec. 103. Reports.

TITLE II—WORKER ADJUSTMENT ASSISTANCE BENEFITS

Subtitle A—Income Support

Sec. 211. Eligibility.

Sec. 212. Weekly income support.

Sec. 213. Application of State laws.

Subtitle B—Wage Supplements

Sec. 221. Eligibility.

Sec. 222. Weekly wage supplement.

Subtitle C—Training

Sec. 231. Approval of training.

Sec. 232. Training programs.

Sec. 233. Supplemental assistance.

Sec. 234. Payment of costs of on-the-job training.

Sec. 235. Eligibility for unemployment insurance.

Subtitle D—Rapid Response Assistance, Basic Readjustment Services,

Relocation Allowances, and Job Search Allowances

Sec. 241. Rapid response assistance and basic readjustment services.

Sec. 242. Relocation allowances.

Sec. 243. Job search allowances.

TITLE III—GENERAL PROVISIONS

Sec. 301. Fraud and recovery of overpayments.

Sec. 302. Penalties.

Sec. 303. Subpoena power.

Sec. 304. Regulations.
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1 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

2 There is authorized to be appropriated from the gen3 eral fund of the Treasury such amounts as may be nec4 essary to carry out the purposes of this Act.

5 SEC. 4. DEFINITIONS.

6 For purposes of this Act, the following definitions

7 apply:

8 (1) AVERAGE WEEKLY HOURS.—The term ‘‘av9 erage weekly hours’’ means the average hours

10 worked by the individual (excluding overtime) in the

11 employment from which the individual has been or

12 claims to have been separated in the 52 weeks (ex13 cluding weeks during which the individual was sick

14 or on vacation) preceding the week specified in the

15 last sentence of paragraph (2)(A).

16 (2) AVERAGE WEEKLY WAGE.—

17 (A) IN GENERAL.—The term ‘‘average

18 weekly wage’’ means the lower of—

19 (i) $962; or

(ii) 1 20 ⁄13 of the total wages paid to an

21 individual in the high quarter.

22 For purposes of clause (ii), the high quarter is

23 that quarter in which the individual’s total

24 wages were highest among the first 4 of the last

25 5 completed calendar quarters immediately be26 fore the quarter in which occurs the week with
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1 respect to which the computation is made. Such

2 week shall be the week in which total separation

3 occurred, or, in cases where partial separation

4 is claimed, an appropriate week, as defined in

5 regulations prescribed by the Secretary.

6 (B) COST-OF-LIVING ADJUSTMENT.—Ef7 fective December 1 of each year after the cal8 endar year in which the date of the enactment

9 of this Act occurs, the dollar amount in sub10 paragraph (A)(i) shall be increased by the per11 cent change in the Consumer Price Index (all

12 items—United States city average) published by

13 the Bureau of Labor Statistics by the percent

14 change in the price index for the base quarter

15 of such year over the price index for the base

16 quarter of the preceding year in which an ad17 justment under this subparagraph was made,

adjusted to the nearest 1 18 ⁄10 of 1 percent. For

19 purposes of applying this subparagraph for the

20 first time, ‘‘$962’’ in subparagraph (A)(i) shall

21 be treated as including an adjustment made

22 under this subparagraph in the base quarter

23 ending on September 30, 1996. As used in this

24 subparagraph—
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1 (i) the term ‘‘base quarter’’, as used

2 with respect to a year, means the calendar

3 quarter ending on September 30 of such

4 year; and

5 (ii) the price index for a base quarter

6 is the arithmetical mean of such index for

7 the 3 months comprising the quarter.

8 (3) DISLOCATION DATE.—The term ‘‘disloca9 tion date’’ means, with respect to a displaced work10 er, the last day of the week specified in the last sen11 tence of paragraph (2)(A). Any computation under

12 this Act regarding weeks of employment before such

13 date includes the week in which such date occurs.

14 (4) ON-THE-JOB TRAINING.—The term ‘‘on-the15 job training’’ means training provided by an em16 ployer to an individual who is employed by the em17 ployer.

18 (5) PARTIAL SEPARATION.—The term ‘‘partial

19 separation’’ means, with respect to an individual

20 who has not been totally separated, that the individ21 ual has had—

22 (A) his or her hours of work reduced to 80

23 percent or less of his or her average weekly

24 hours in employment; and
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1 (B) his or her wages in such employment

2 reduced to 80 percent or less of his or her aver3 age weekly wage.

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

5 the Secretary of Labor.

6 (7) STATE.—The term ‘‘State’’ means any of

7 the several States, the District of Columbia, and the

8 Commonwealth of Puerto Rico.

9 (8) STATE AGENCY.—The term ‘‘State agency’’

10 means the agency of the State which administers the

11 State law.

12 (9) STATE LAW.—The term ‘‘State law’’ means

13 the unemployment insurance law of the State ap14 proved by the Secretary of Labor under section 3304

15 of the Internal Revenue Code of 1986.

16 (10) SUITABLE EMPLOYMENT.—The term

17 ‘‘suitable employment’’ means, with respect to a dis18 placed worker, work of a substantially equal or high19 er skill level than the worker’s past employment, and

20 wages for such work at not less than 80 percent of

21 the worker’s average weekly wage.

22 (11) TOTAL SEPARATION.—The term ‘‘total

23 separation’’ means the layoff or severance of an indi24 vidual from employment.
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1 (12) UNEMPLOYMENT INSURANCE.—The term

2 ‘‘unemployment insurance’’ means the unemploy3 ment compensation payable to an individual under

4 any State law or Federal unemployment compensa5 tion law, including chapter 85 of title 5, United

6 States Code, and the Railroad Unemployment Insur7 ance Act.

8 (13) WEEK.—The term ‘‘week’’ means a week

9 as defined in the applicable State law.

10 (14) WEEK OF UNEMPLOYMENT.—The term

11 ‘‘week of unemployment’’ means a week of total,

12 part-total, or partial unemployment, as determined

13 under the applicable State law or Federal unemploy14 ment insurance law.

15 TITLE I—GRANTS TO STATES TO

16 PROVIDE WORKER ADJUST17 MENT ASSISTANCE BENEFITS

18 TO ELIGIBLE DISPLACED

19 WORKERS

20 SEC. 101. AUTHORIZATION.

21 (a) IN GENERAL.—The Secretary of Labor, in con22 sultation with the heads of appropriate Federal agencies,

23 shall, from amounts appropriated pursuant to section 3,

24 provide grants to States for the purpose of providing to
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1 eligible dislocated workers described in subsection (b) the

2 worker adjustment assistance benefits described in title II.

3 (b) ELIGIBLE DISPLACED WORKERS.—An individual

4 shall be eligible for worker adjustment assistance benefits

5 under title II if the individual has been totally separated

6 or partially separated from employment as a result of any

7 program, project, or activity carried out under Federal

8 law.

9 SEC. 102. APPLICATION.

10 (a) IN GENERAL.—The Secretary may not make a

11 grant under section 101 to a State unless the State sub12 mits to the Secretary an application in such form and con13 taining such information as the Secretary may reasonably

14 require.

15 (b) CONTENTS.—Such application shall include as16 surances that—

17 (1) the State will use amounts received from a

18 grant under section 101 to provide the worker ad19 justment assistance benefits under title II to eligible

20 displaced workers in such State;

21 (2) the State will promptly provide written no22 tice through the mail of such benefits available to

23 each eligible displaced worker;
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1 (3) the State will provide whatever assistance is

2 necessary to enable eligible displaced workers to pre3 pare applications for such benefits;

4 (4) the State will inform the State job training

5 coordinating council established under section 122 of

6 the Job Training Partnership Act (29 U.S.C. 1532),

7 or equivalent agency, and other public or private

8 agencies, institutions, and employers, as appropriate,

9 of projections of the number of eligible displaced

10 workers, if available, and of the needs for training

11 of such workers; and

12 (5) the State will not deny or reduce unemploy13 ment insurance otherwise payable to any eligible dis14 placed worker for any week by reason of any right

15 to the benefits under title II.

16 SEC. 103. REPORTS.

17 (a) STATE REPORTS.—The Secretary may not pro18 vide a grant under section 101 to a State unless the State

19 agrees to submit to the Secretary, in each fiscal year in

20 which the Secretary makes payments under such grant to

21 such State, a report containing such information as the

22 Secretary may reasonably require.

23 (b) REPORTS TO CONGRESS.—The Secretary shall

24 submit to the Congress, in each fiscal year in which the
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1 Secretary makes payments under a grant under section

2 101, a report containing—

3 (1) a compilation of the information contained

4 in each report submitted to the Secretary by a State

5 under subsection (a) for such fiscal year; and

6 (2) an evaluation of the grant program.

7 TITLE II—WORKER ADJUST8 MENT ASSISTANCE BENEFITS

9 Subtitle A—Income Support

10 SEC. 211. ELIGIBILITY.

11 (a) IN GENERAL.—Payment of income support shall

12 be made as provided for in this subtitle to a displaced

13 worker who applies for such support for any week of un14 employment which begins after the dislocation date of the

15 worker if the worker had—

16 (1) in the 156 weeks immediately preceding the

17 dislocation date, at least 52 weeks of employment,

18 and in the 52 weeks immediately preceding the dis19 location date, at least 10 weeks of employment; or

20 (2) if data with respect to such weeks of em21 ployment are not available, equivalent amounts of

22 employment computed under regulations prescribed

23 by the Secretary.
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1 (b) TRAINING UNDER SUBTITLE C.—A displaced

2 worker who is eligible under subsection (a) for income sup3 port is eligible to apply for training under subtitle C.

4 SEC. 212. WEEKLY INCOME SUPPORT.

5 (a) AMOUNT AND DURATION.—Subject to sub6 sections (c), (d), and (e)—

7 (1) the income support amount payable to a

8 displaced worker for a week of unemployment is an

9 amount equal to the product of the average weekly

10 wage of the worker and the appropriate income sup11 port factor set forth in subsection (b); and

12 (2) the maximum number of weeks for which

13 income support is payable to a displaced worker is

14 the number of consecutive weeks (commencing with

15 the week occurring immediately after the dislocation

16 date) that appear in column 2 of the following table

17 opposite the period of months in column 1 of such

18 table that corresponds to the number of months in

19 which the worker was employed before his or her

20 dislocation date:
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Column 1 Column 2

Months of worker employment before dislocation date Maximum number of weeks for

which income support payable

Not fewer than Not more than

12 18 39

18 24 52

24 30 65

30 36 78

36 42 91

42 48 104

48 54 117

54 60 130

60 156

1 No income support may be paid to a displaced worker for

2 any week of unemployment that occurs after the last of

3 the applicable maximum number of weeks specified for the

4 worker in column 2, or, if applicable, the last of any addi5 tional weeks resulting from the application of subsection

6 (c). Notwithstanding the preceding table, the maximum

7 number of weeks for which income support is payable to

8 any worker—

9 (A) who is employed in adversely affected

10 employment for not fewer than 12 months and

11 not more than 18 months before separation,

12 and

13 (B) who is eligible for unemployment com14 pensation for a period longer than 39 weeks,

15 shall be—
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1 (i) the number of weeks for which

2 such worker is eligible for unemployment

3 compensation, or

4 (ii) 52 weeks.

5 whichever is less.

6 (b) INCOME SUPPORT FACTORS.—

7 (1) WORKERS NOT PARTICIPATING IN TRAINING

8 OR WHO MAKE LATE APPLICATION FOR TRAINING.—

9 The income support factors for weeks of unemploy10 ment for a displaced worker who does not enroll in

11 training under subtitle C before the 183d day after

12 his or her dislocation date is as follows:

13 (A) 68 percent for the 1st week and each

14 week thereafter before the 53d week.

15 (B) 58 percent for the 53d week and any

16 week thereafter before the 105th week.

17 (C) 48 percent for the 105th week and any

18 week thereafter before the 157th week.

19 (2) WORKERS WHO MAKE PROMPT APPLICA20 TION FOR TRAINING.—The income support factor for

21 weeks of unemployment for a displaced worker who

22 enrolls in training under subtitle C before the 183d

23 day after his or her dislocation date is 68 percent,

24 except that if such training is completed or the

25 worker ceases to participate in such training as of
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1 any week occurring after the 52d week of unemploy2 ment, subparagraph (B), or both subparagraphs (B)

3 and (C) (as the case may be), of paragraph (1)

4 apply with respect to weeks of unemployment occur5 ring after the week in which such completion or ces6 sation occurred.

7 (c) ADDITIONAL WEEKS OF INCOME SUPPORT.—If

8 a displaced worker enrolls in training under subtitle C be9 fore the 183d day after his or her dislocation date, the

10 maximum number of weeks of income support specified

11 in column 2 of the table in subsection (a)(2) for the work12 er shall be extended by an additional consecutive number

13 of weeks (but in no case more than 26 additional weeks)

14 that the State considers to be reasonably necessary for the

15 worker to complete a degree or certificate program under

16 such training.

17 (d) ADJUSTMENT OF AMOUNT OF INCOME SUP18 PORT.—

19 (1) UNEMPLOYMENT ISSUANCE AND CERTAIN

20 ADDITIONAL PAYMENTS.—The amount of income

21 support payable under subsection (a) to a displaced

22 worker for any week shall be reduced by the amount

23 of—

24 (A) any unemployment insurance that the

25 worker is receiving, or would receive if the
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1 worker applied for such insurance, with respect

2 to that week, except that if the appropriate

3 State agency or Federal agency finally decides

4 that the worker is not entitled to unemployment

5 insurance with respect to such week, reduction

6 under this paragraph shall not apply with re7 spect to such week; and

8 (B) any additional payment to the worker

9 from any other public or private source.

10 (2) AGGREGATE RECEIPTS.—If, with respect to

11 any week of unemployment, the total amount pay12 able to a displaced worker as—

13 (A) remuneration for services performed

14 during such week;

15 (B) income support;

16 (C) unemployment insurance; and

17 (D) any additional payment referred to in

18 paragraph (1)(B),

19 exceeds 75 percent of the amount of the average

20 weekly wage of the worker (or exceeds 85 percent of

21 the amount of such average if the worker is partici22 pating in training under subtitle C), the income sup23 port payable for such week shall be reduced by the

24 amount of such excess.
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1 (e) WAGE SUPPLEMENT OFFSET.—If a displaced

2 worker who has received wage supplements under subtitle

3 B begins receiving income support under this subtitle, the

4 maximum number of weeks of unemployment for which

5 the worker is eligible for income support under subsection

6 (b)(2) shall be reduced by 1 week for each week for which

7 a wage supplement was received.

8 (f) INCOME SUPPORT NOT PAYABLE DURING ON9 THE-JOB TRAINING.—Income support may not be paid to

10 a worker under this section for any week during which

11 the worker receives on-the-job training under section 232.

12 SEC. 213. APPLICATION OF STATE LAWS.

13 Except where inconsistent with the provisions of this

14 subtitle and subject to such regulations as the Secretary

15 may prescribe, the availability and disqualification provi16 sions of the State law—

17 (1) under which a displaced worker is entitled

18 to unemployment insurance (whether or not the

19 worker has filed a claim for such insurance), or

20 (2) if the worker is not so entitled to unemploy21 ment insurance, of the State in which the worker

22 was totally or partially separated,

23 shall apply to any such worker who files a claim for income

24 support. The State law so determined with respect to a

25 separation of a worker shall remain applicable, for pur-
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1 poses of the preceding sentence, with respect to such sepa2 ration until such worker becomes entitled to unemploy3 ment insurance under another State law (whether or not

4 such worker has filed a claim for such insurance).

5 Subtitle B—Wage Supplements

6 SEC. 221. ELIGIBILITY.

7 (a) IN GENERAL.—Payment of a wage supplement

8 shall be made as provided for in this subtitle to a displaced

9 worker who applies for such supplement for any week of

10 full-time employment which begins after the dislocation

11 date of the worker if the worker meets the requirements

12 of section 211(a).

13 (b) PART-TIME TRAINING UNDER SUBTITLE C.—A

14 displaced worker who is eligible under subsection (a) for

15 wage supplements is eligible to apply for part-time train16 ing under subtitle C.

17 SEC. 222. WEEKLY WAGE SUPPLEMENT.

18 (a) AMOUNT.—The amount of a wage supplement

19 payable under this subtitle for a week of full-time employ20 ment is an amount equal to the differences, if any, be21 tween—

22 (1) the wage the displaced worker earns during

23 the week of full-time employment; and

24 (2) an amount equal to 85 percent of the work25 er’s average weekly wage.
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1 (b) DURATION.—Subject to subsection (c), the maxi2 mum number of weeks of full-time employment for which

3 wage supplements may be paid to a displaced worker

4 under this subtitle is 156 weeks. No wage supplement may

5 be paid to a worker for any week that occurs after the

6 156th week after the week in which the dislocation date

7 of the worker occurred.

8 (c) INCOME SUPPORT OFFSET.—If a displaced work9 er who has received income support under subtitle A be10 gins receiving wage supplements under this subtitle, the

11 maximum number of weeks of full-time employment for

12 which the worker is eligible for wage supplements under

13 this subtitle shall be reduced by 1 week for each week for

14 which income support was received.

15 Subtitle C—Training

16 SEC. 231. APPROVAL OF TRAINING.

17 (a) IN GENERAL.—

18 (1) CONDITIONS FOR APPROVAL.—If the State

19 determines with respect to a displaced worker who

20 is eligible under section 211(c) or 221(b) to apply

21 for training under this subtitle that—

22 (A) there is no suitable employment (which

23 may include technical and professional employ24 ment) available for the worker,
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1 (B) the worker would benefit from appro2 priate training,

3 (C) there is reasonable expectation of suit4 able employment following completion of such

5 training,

6 (D) training approved by the State is rea7 sonably available to the worker from either gov8 ernmental agencies or private sources (which

9 may include institutions of higher education or

10 area vocational education schools, as defined in

11 section 521(4) of the Carl D. Perkins Voca12 tional and Applied Technology Education Act,

13 and employers),

14 (E) the worker is qualified to undertake

15 and complete such training, and

16 (F) such training is suitable for the worker

17 and available at a reasonable cost,

18 the State shall approve such training for the worker.

19 (2) PRIORITY FOR CERTAIN TRAINING PRO20 GRAMS.—In approving training under paragraph (1)

21 for displaced workers, the State shall give priority to

22 training under the programs described in section

23 232(a)(6) (relating to training under the programs

24 in environmental engineering, environmental clean-
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1 up, advanced telecommunications, transportation, in2 frastructure, and computer technology).

3 (3) DEFINITIONS.—

4 (A) REASONABLE COST.—For purposes of

5 applying paragraph (1)(F), the term ‘‘reason6 able cost’’, as applied to any undergraduate,

7 graduate, professional, or post-graduate pro8 gram at an institution of higher education, is a

9 tuition cost that does not exceed the maximum

10 average tuition cost of like programs offered at

11 the public institutions of higher education in

12 the State concerned.

13 (B) REASONABLE EXPECTATION OF SUIT14 ABLE EMPLOYMENT.—For purposes of applying

15 paragraph (1)(C), a reasonable expectation of

16 suitable employment does not require that suit17 able employment opportunities for a worker be

18 available, or offered, immediately upon the com19 pletion of training approved under paragraph

20 (1).

21 (b) PAYMENT OF COSTS.—The following require22 ments apply with respect to the provision of training under

23 this subtitle:

24 (1) If the costs of training a displaced worker

25 are paid by the State under subsection (a), no other
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1 payment for such costs may be made under any

2 other provision of Federal law.

3 (2) No payment may be made under subsection

4 (a) of the costs of training a displaced worker if

5 such costs—

6 (A) have already been paid under any

7 other provision of Federal law; or

8 (B) are reimbursable under any other pro9 vision of Federal law and a portion of such

10 costs have already been paid under such other

11 provision of Federal law.

12 (3) The provisions of this subsection do not

13 apply to, or take into account, any funds provided

14 under any other provision of Federal law which are

15 used for any purpose other than the direct payment

16 of the costs incurred in training a particular dis17 placed worker, even if such use has the effect of in18 directly paying or reducing any portion of the costs

19 involved in training the worker.

20 (c) TRAINING COSTS PAID FROM OTHER

21 SOURCES.—

22 (1) IN GENERAL.—The State is not required

23 under this subtitle to pay the costs of any training

24 approved under subsection (a) to the extent that

25 such costs are paid—
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1 (A) under any Federal or State program

2 other than this part; or

3 (B) from any source other than this sec4 tion.

5 (2) REPAYMENT AGREEMENT.—Before approv6 ing any training to which paragraph (1) may apply,

7 the State may require that the displaced worker

8 enter into an agreement with the State under which

9 the State will not be required to pay under this sub10 title the portion of the costs of such training that

11 the worker has reason to believe will be paid under

12 the program, or by the source, described in subpara13 graph (A) or (B) of paragraph (1).

14 SEC. 232. TRAINING PROGRAMS.

15 (a) TYPES THAT MAY BE APPROVED.—The training

16 programs that may be approved under section 231(a) in17 clude—

18 (1) technical, vocational, undergraduate, grad19 uate, professional, and post-graduate programs of

20 study;

21 (2) on-the-job training;

22 (3) any training program approved by a private

23 industry council established under section 103 of the

24 Job Training Partnership Act (29 U.S.C. 1512);

25 (4) any program of remedial education;
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1 (5) any training program (other than a training

2 program described in subsection (b)) for which all,

3 or any portion, of the costs of training the worker

4 are paid—

5 (A) under any Federal or State program

6 other than this subtitle; or

7 (B) from any source other than this sec8 tion;

9 (6) any training program in environmental en10 gineering, environmental cleanup, advanced tele11 communications, transportation, infrastructure, and

12 computers; and

13 (7) any other training program approved by the

14 State.

15 Training programs shall be made available on both full16 time and part-time bases to meet the respective needs of

17 displaced workers. The State shall prescribe regulations

18 which set forth the criteria under each of the training cat19 egories listed in paragraphs (1) through (7) that will be

20 used as the basis for approving training programs under

21 section 231.

22 (b) RESTRICTIONS ON APPROVAL.—The State may

23 not approve a training program if—
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1 (1) all or a portion of the costs of the training

2 program are paid under any nongovernmental plan

3 or program;

4 (2) the displaced worker has a right to obtain

5 training or funds for training under such plan or

6 program; and

7 (3) such plan or program requires the worker

8 to reimburse the plan or program from funds pro9 vided under this subtitle, or from wages paid under

10 such training program, for any portion of the costs

11 of such training program paid under the plan or

12 program.

13 (c) DURATION OF TRAINING.—The maximum num14 ber of weeks of training that a displaced worker may re15 ceive under this subtitle is 156 weeks. For purposes com16 puting such maximum number of weeks, any week (or ag17 gregate number of days that equals a week) that is not

18 treated as a week or day within the regular academic or

19 instructional year (or equivalent period) of the institution

20 or entity providing the training shall be excluded.

21 SEC. 233. SUPPLEMENTAL ASSISTANCE.

22 The State may, where appropriate, authorize supple23 mental assistance necessary to defray reasonable transpor24 tation and subsistence expenses for separate maintenance

25 when training is provided in facilities which are not within
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1 commuting distance of a displaced worker’s regular place

2 of residence. The State may not authorize—

3 (1) payments for subsistence that exceed which4 ever is the lesser of—

5 (A) the actual per diem expenses for sub6 sistence; or

7 (B) payments at 50 percent of the prevail8 ing per diem allowance rate authorized under

9 the Federal travel regulations; or

10 (2) payments for travel expenses exceeding the

11 prevailing mileage rate authorized under the Federal

12 travel regulations.

13 SEC. 234. PAYMENT OF COSTS OF ON-THE-JOB TRAINING.

14 The State shall pay the costs of any on-the-job train15 ing of a displaced worker that is approved under section

16 231(a) in equal monthly installments, but the State may

17 pay such costs, notwithstanding any other provision of this

18 section, only if—

19 (1) no currently employed worker is displaced

20 by such displaced worker (including partial displace21 ment such as a reduction in the hours of non22 overtime work, wages, or employment benefits);

23 (2) such training does not impair existing con24 tracts for services or collective bargaining agree25 ments;
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1 (3) in the case of training which would be in2 consistent with the terms of a collective bargaining

3 agreement, the written concurrence of the labor or4 ganization concerned has been obtained;

5 (4) no other individual is on layoff from the

6 same, or any substantially equivalent, job for which

7 such displaced worker is being trained;

8 (5) the employer has not terminated the em9 ployment of any regular employee or otherwise re10 duced the work force of the employer with the inten11 tion of filling the vacancy so created by hiring such

12 displaced worker;

13 (6) the job for which such displaced worker is

14 being trained is not being created in a promotional

15 line that will infringe in any way upon the pro16 motional opportunities of currently employed individ17 uals;

18 (7) such training is not for the same occupation

19 which requires the same level of skill as that from

20 which the worker was separated;

21 (8) the employer certifies to the State that the

22 employer will continue to employ such worker for at

23 least 26 weeks after completion of such training if

24 the worker desires to continue such employment and
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1 the employer does not have due cause to terminate

2 such employment;

3 (9) the employer has not received payment

4 under section 231(a) with respect to any other on5 the-job training provided by such employee which

6 failed to meet the requirements of paragraphs (1),

7 (2), (3), (4), (5) and (6); and

8 (10) the employer has not taken, at any time,

9 any action which violated the terms of any certifi10 cation described in paragraph (8) made by such em11 ployee with respect to any other on-the-job training

12 provided by such employer for which the State has

13 made a payment under section 231(a).

14 SEC. 235. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE.

15 A displaced worker may not be determined to be ineli16 gible or disqualified for unemployment insurance or bene17 fits under this Act because—

18 (1) the individual is in training approved under

19 section 231(a);

20 (2) of leaving work which is not suitable em21 ployment to enter such training; or

22 (3) of the application to any such week in train23 ing of provisions of State law or Federal unemploy24 ment insurance law relating to availability for work,

25 active search for work, or refusal to accept work.
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1 Subtitle D—Rapid Response Assist2 ance, Basic Readjustment Serv3 ices, Relocation Allowances, and

4 Job Search Allowances

5 SEC. 241. RAPID RESPONSE ASSISTANCE AND BASIC READ6 JUSTMENT SERVICES.

7 (a) ELIGIBILITY.—An individual who is—

8 (1) a displaced worker (whether or not eligible

9 for benefits under subtitle A or B); or

10 (2) an individual who—

11 (A) has received notice of impending total

12 or partial separation from employment; and

13 (B) had in the 52 weeks immediately pre14 ceding the date of such notice at least 26 weeks

15 of employment;

16 is entitled to the rapid response assistance and basic read17 justment services under this subtitle.

18 (b) DURATION.—An individual described in sub19 section (a) is entitled to receive rapid response assistance

20 and basic readjustment services—

21 (1) if applicable, on and after the date of the

22 notice referred to in subsection (a)(2) and before the

23 day after the dislocation date of the individual; and

24 (2) during the period of—
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1 (A) the 13 consecutive weeks commencing

2 with the week immediately following the disloca3 tion date, in the case of rapid response assist4 ance; and

5 (B) the 156 consecutive weeks commencing

6 with the week immediately following the disloca7 tion date, in the case of basic readjustment

8 services.

9 (c) DELIVERY OF RAPID RESPONSE ASSISTANCE.—

10 (1) IMPENDING PERMANENT CLOSURE OR SUB11 STANTIAL LAYOFF.—In a situation involving an im12 pending permanent closure or substantial layoff of

13 50 or more individuals, a State may provide funds,

14 where other public or private resources are not expe15 ditiously available, for a preliminary assessment of

16 the advisability of conducting a comprehensive study

17 exploring the feasibility of having a company or

18 group, including the workers, purchase the plant and

19 continue it in operation.

20 (2) OVERSIGHT BY SECRETARY.—The Sec21 retary shall oversee the administration by each State

22 of the rapid response assistance services provided in

23 such State and the effectiveness, efficiency, and

24 timeliness of the delivery of such services. If the Sec25 retary determines that such services are not being
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1 performed adequately, the Secretary shall implement

2 appropriate corrective action, including, where nec3 essary, the selection of a new rapid response assist4 ance service provider.

5 (d) RAPID RESPONSE ASSISTANCE AND BASIC READ6 JUSTMENT SERVICES DESCRIBED.—For purposes of this

7 subtitle—

8 (1) the term ‘‘rapid response assistance’’ means

9 assistance described in section 314(b) of the Job

10 Training Partnership Act (29 U.S.C. 1661c(b)); and

11 (2) the term ‘‘basic readjustment services’’

12 means services described in section 314(c) of such

13 Act (29 U.S.C. 1661c(c)).

14 SEC. 242. RELOCATION ALLOWANCES.

15 (a) IN GENERAL.—A displaced worker (whether or

16 not eligible for benefits under subtitle A or B) may file

17 an application with the State for a relocation allowance

18 under this section.

19 (b) CONDITIONS.—A relocation allowance may be

20 granted only to assist a displaced worker in relocating

21 within the United States and only if the State determines

22 that such worker cannot reasonably be expected to secure

23 suitable employment in the commuting area in which he

24 resides and that such worker—

25 (1) has obtained—
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1 (A) suitable employment affording a rea2 sonable expectation of long-term duration in the

3 area in which he wishes to relocate; or

4 (B) a bona fide offer of such employment;

5 and

6 (2) is totally separated from employment at the

7 time relocation commences.

8 (c) RELOCATION ALLOWANCE DEFINED.—For the

9 purposes of this section, the term ‘‘relocation allowance’’

10 means—

11 (1) 90 percent of the reasonable and necessary

12 expenses (including subsistence and transportation

13 expenses at levels not exceeding those allowable

14 under section 223(1) and (2)) specified in regula15 tions prescribed by the State, incurred in transport16 ing a worker and his or her family if any, and

17 household effects, and

18 (2) a lump sum 2 times the weekly wage (ex19 cluding overtime, bonuses, or any other payment not

20 considered basic wage) received by the worker in the

21 last week of 35 or more hours of work occurring be22 fore the worker’s dislocation date,

23 except that the aggregate of such expenses and lump sum

24 paid to any displaced worker may not exceed $4,000.
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1 SEC. 243. JOB SEARCH ALLOWANCES.

2 (a) IN GENERAL.—A displaced worker (whether or

3 not eligible for benefits under subtitle A or B) may file

4 an application with the State for a job search allowance.

5 Such allowance, if granted shall provide reimbursement to

6 the worker of 90 percent of the cost of necessary job

7 search expenses as prescribed by regulations of the State,

8 except that—

9 (1) such reimbursement may not exceed $800

10 for any worker; and

11 (2) reimbursement may not be made for sub12 sistence and transportation expenses at levels ex13 ceeding those allowable under section 233.

14 (b) CONDITIONS.—A job search allowance may be

15 granted only—

16 (1) to assist a displaced worker who has been

17 totally separated in securing a job within the United

18 States;

19 (2) where the State determines that such work20 er cannot reasonably be expected to secure suitable

21 employment in the commuting area in which he re22 sides; and

23 (3) where the worker has filed an application

24 for such allowance with the State before—

25 (A) the later of—
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1 (i) the 156th week after the disloca2 tion date of the worker; or

3 (ii) the 156th week after the date of

4 the worker’s last total separation; or

5 (B) the 182d day after the concluding date

6 of any training received by the worker, if the

7 worker was referred to such training by the

8 State.

9 (c) REIMBURSEMENT.—The State shall reimburse

10 any adversely affected worker for necessary expenses in11 curred by such worker in participating in a job search pro12 gram approved by the State.

13 TITLE III—GENERAL

14 PROVISIONS

15 SEC. 301. FRAUD AND RECOVERY OF OVERPAYMENTS.

16 (a) LIABILITY FOR REPAYMENT.—

17 (1) IN GENERAL.—If a State, the Secretary, or

18 a court of competent jurisdiction determines that

19 any person has received any payment under this Act

20 for which the person was not eligible, including a

21 payment referred to in subsection (b), such person

22 shall be liable to repay such amount to the State or

23 the Secretary, as the case may be, except that the

24 State or the Secretary may waive such repayment if
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1 such State or the Secretary determines, in accord2 ance with guidelines by the Secretary, that—

3 (A) the payment was made without fault

4 on the part of such individual; and

5 (B) requiring such repayment would be

6 contrary to equity and good conscience.

7 (2) RECOVERY.—Unless an overpayment is oth8 erwise recovered, or waived under paragraph (1), the

9 State or the Secretary shall recover the overpayment

10 by deductions from any sums payable to such person

11 under this Act, under any Federal unemployment

12 compensation law administered by the State agency

13 of the State or the Secretary, or under any other

14 Federal law administered by the State or the Sec15 retary which provides for the payment of assistance

16 or an allowance with respect to unemployment, and,

17 notwithstanding any other provision of State law or

18 Federal law to the contrary, the Secretary may re19 quire the State to recover any overpayment under

20 this Act by deduction from any unemployment insur21 ance payable to such person under the State law, ex22 cept that no single deduction under this paragraph

23 shall exceed 50 percent of the amount otherwise pay24 able.
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1 (b) FRAUD.—If a State, the Secretary, or a court of

2 competent jurisdiction determines that an individual—

3 (1) knowingly has made, or caused another to

4 make, a false statement or representation of a mate5 rial fact, or

6 (2) knowingly has failed, or caused another to

7 fail, to disclose a material fact,

8 and as a result of such false statement or representation,

9 or of such nondisclosure, such individual has received any

10 payment under this Act to which the individual was not

11 entitled, such individual shall, in addition to any other

12 penalty provided by law, be ineligible for any further pay13 ments under this Act.

14 (c) NOTICE AND HEARING.—Except for overpay15 ments determined by a court of competent jurisdiction, no

16 repayment may be required, and no deduction may be

17 made, under this section until a determination under sub18 section (a)(1) by the State or the Secretary, as the case

19 may be, has been made, notice of the determination and

20 an opportunity for a fair hearing thereon has been given

21 to the individual concerned, and the determination has be22 come final.

23 (d) DISPOSITION OF RECOVERED AMOUNTS.—Any

24 amount recovered under this section shall be returned to

25 the general fund of the Treasury.
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1 SEC. 302. PENALTIES.

2 Whoever makes a false statement of a material fact

3 knowing it to be false, or knowingly fails to disclose a ma4 terial fact, for the purpose of obtaining or increasing for

5 himself or herself or for any other person any payment

6 authorized to be furnished under this Act shall be fined

7 not more than $1,000 or imprisoned for not more than

8 1 year, or both.

9 SEC. 303. SUBPOENA POWER.

10 (a) IN GENERAL.—The Secretary may require by

11 subpoena the attendance of witnesses and the production

12 of evidence necessary for the Secretary to make a deter13 mination under the provisions of this Act.

14 (b) COMPLIANCE.—If a person refuses to obey a sub15 poena issued under subsection (a), a United States district

16 court within the jurisdiction of which the relevant proceed17 ing under this title is conducted may, upon petition by

18 the Secretary, issue an order requiring compliance with

19 such subpoena.

20 SEC. 304. REGULATIONS.

21 (a) IN GENERAL.—The Secretary shall prescribe

22 such regulations as may be necessary to carry out the pro23 visions of this Act.

24 (b) TRANSITION.—In prescribing regulations under

25 subsection (a), the Secretary shall promulgate such rules
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1 and procedures as may be necessary to provide for an or2 derly transition to and implementation of this Act.

Æ