IB 

Union Calendar No. 22

108TH CONGRESS 

1ST SESSION H. R. 444

[Report No. 108–35] 

To amend the Workforce Investment Act of 1998 to establish a Personal 

Reemployment Accounts grant program to assist Americans in returning 

to work. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2003

Mr. PORTER (for himself, Mr. BOEHNER, Mr. MCKEON, Ms. PRYCE of Ohio, 

Mr. BALLENGER, Mr. GREENWOOD, Mr. SOUDER, Mr. NORWOOD, Mr. 

DEMINT, Mr. ISAKSON, Mr. PLATTS, Mr. TIBERI, Mr. KELLER, Mr. 

WILSON of South Carolina, Mr. KLINE, Mr. BEAUPREZ, Mr. 

CUNNINGHAM, Mr. GREEN of Wisconsin, Mr. HAYES, Mr. MCHUGH, Mr. 

NETHERCUTT, Mr. OXLEY, Mr. SIMMONS, Mr. SMITH of New Jersey, Mr. 

TIAHRT, and Mr. WOLF) introduced the following bill; which was referred 

to the Committee on Education and the Workforce 

MARCH 13, 2003 

Additional sponsors: Mr. GILLMOR, Mr. ROGERS of Alabama, Mr. JANKLOW, 

Mr. BAKER, Mrs. MYRICK, Mr. MURPHY, Ms. GINNY BROWN-WAITE of 

Florida, Mr. MARIO DIAZ-BALART of Florida, Mr. KOLBE, Ms. DUNN, 

Ms. HART, Mr. FOLEY, Ms. EDDIE BERNICE JOHNSON of Texas, and 

Mr. OSE

MARCH 13, 2003 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 
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[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on January 29, 2003] 

A BILL

To amend the Workforce Investment Act of 1998 to establish 

a Personal Reemployment Accounts grant program to 

assist Americans in returning to work.

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 ‘‘Back to Work Incentive 

5 Act of 2003’’. 

6 SEC. 2. GRANTS TO SUPPORT PERSONAL REEMPLOYMENT 

7 ACCOUNTS. 

8 Subtitle B of title I of the Workforce Investment Act 

9 of 1998 (29 U.S.C. 2811 et seq.) is amended by inserting 

10 after chapter 5 the following new chapter: 

11 ‘‘CHAPTER 5A—PERSONAL 

12 REEMPLOYMENT ACCOUNTS 

13 ‘‘SEC. 135A. PURPOSES. 

14 ‘‘The purposes of this chapter are to provide for the 

15 establishment of personal reemployment accounts for cer16 tain individuals identified as likely to exhaust their unem17 ployment compensation in order to—
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1 ‘‘(1) accelerate the reemployment of such individ2 uals; 

3 ‘‘(2) promote the retention in employment of 

4 such individuals; and 

5 ‘‘(3) provide such individuals with enhanced 

6 flexibility, choice, and control in obtaining intensive 

7 reemployment, training, and supportive services. 

8 ‘‘SEC. 135B. DEFINITION. 

9 ‘‘In this chapter, the term ‘State’ means each of the 

10 several States of the United States, the District of Columbia, 

11 the Commonwealth of Puerto Rico, and the United States 

12 Virgin Islands. 

13 ‘‘SEC. 135C. GRANTS TO STATES. 

14 ‘‘(a) GRANTS.—The Secretary shall—

‘‘(1) reserve 2 15 ⁄10 of 1 percent of the amount ap16 propriated under section 137(d) for use under section 

17 135I; and 

18 ‘‘(2) use the remainder of the amount appro19 priated under section 137(d) to make allotments in 

20 accordance with subsection (b). 

21 ‘‘(b) ALLOTMENT AMONG STATES.—

22 ‘‘(1) IN GENERAL.—From the amount made 

23 available under subsection (a)(2), the Secretary shall 

24 allot to each State an amount that is proportionate 

25 to the relative number of unemployed individuals in 
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1 the State as compared to the total number of unem2 ployed individuals in all States in order to provide 

3 assistance for eligible individuals in accordance with 

4 this chapter. 

5 ‘‘(2) SMALL STATE MINIMUM ALLOTMENT.—The 

6 Secretary shall ensure that—

7 ‘‘(A) each State (other than the United 

8 States Virgin Islands) shall receive an allotment

under paragraph (1) that is not less than 3 9 ⁄10

10 of 1 percent of the amount made available under 

11 subsection (a)(2) for the fiscal year; and 

12 ‘‘(B) the United States Virgin Islands shall 

13 receive an allotment under paragraph (1) that is 

not less than 1 14 ⁄10 of 1 percent of the amount 

15 made available under subsection (a)(2) for the 

16 fiscal year. 

17 ‘‘(c) AVAILABILITY.—Notwithstanding section 

18 189(g)(1), amounts made available under subsection (a) to 

19 carry out this chapter shall be available for obligation and 

20 expenditure beginning on the date of the enactment of the 

21 Back to Work Incentive Act of 2003. 

22 ‘‘SEC. 135D. WITHIN STATE ALLOCATION. 

23 ‘‘(a) ALLOCATION.—Of the amount allotted to a State 

24 under section 135C—
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1 ‘‘(1) not more than 2 percent of the amount may 

2 be reserved by the Governor of the State to enhance 

3 the system of worker profiling described in section 

4 303(j) of the Social Security Act and to establish and 

5 operate a data management system, as necessary, and 

6 carry out other appropriate activities to implement 

7 this chapter; 

8 ‘‘(2) 5 percent of the amount shall be allocated 

9 by the State to local areas in accordance with the for10 mula described in subsection (b) for start-up costs 

11 and other operating costs related to the provision of 

12 assistance under this chapter; and 

13 ‘‘(3) the remainder of the amount shall be pro14 vided to local areas consistent with the methods and 

15 procedures described in section 135G(a)(4) for the es16 tablishment of personal reemployment accounts de17 scribed in section 135E for eligible individuals in 

18 such local areas. 

19 ‘‘(b) FORMULA.—A State shall allocate funds to local 

20 areas in the State under subsection (a)(2) in an amount 

21 that is proportionate to the relative number of unemployed 

22 individuals in the local area as compared to the total num23 ber of unemployed individuals in the State. 

24 ‘‘(c) AVAILABILITY.—Notwithstanding section 

25 189(g)(2), amounts allotted to a State under section 135C, 
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1 and amounts subsequently provided to a local area under 

2 this section, shall be available for obligation and expendi3 ture only for the 3-year period beginning on the date of 

4 the enactment of the Back to Work Incentive Act of 2003. 

5 ‘‘SEC. 135E. PERSONAL REEMPLOYMENT ACCOUNTS. 

6 ‘‘(a) ACCOUNTS.—

7 ‘‘(1) IN GENERAL.—Funds provided to a local 

8 area under section 135D shall be used to provide eli9 gible individuals with personal reemployment ac10 counts to be used in accordance with section 135F. An 

11 eligible individual may receive only one personal re12 employment account. 

13 ‘‘(2) AMOUNT.—The State shall establish the 

14 amount of a personal reemployment account, which 

15 shall be uniform throughout the State, and shall not 

16 exceed $3,000. 

17 ‘‘(b) ELIGIBLE INDIVIDUALS.—

18 ‘‘(1) IN GENERAL.—Each State shall establish 

19 eligibility criteria for individuals for personal reem20 ployment accounts in accordance with this subsection. 

21 ‘‘(2) ELIGIBILITY CRITERIA REQUIREMENTS.—

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graph (B), an individual shall be eligible to re24 ceive assistance under this chapter if, beginning 
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1 after the date of enactment of the Back to Work 

2 Incentive Act of 2003, the individual— 

3 ‘‘(i) is identified by the State pursuant 

4 to section 303(j)(1) of the Social Security 

5 Act as likely to exhaust regular unemploy6 ment compensation and in need of job 

7 search assistance to make a successful tran8 sition to new employment or an individ9 ual’s unemployment can be attributed in 

10 substantial part to unfair competition from 

11 Federal Prison Industries, Inc.; 

12 ‘‘(ii) is receiving regular unemploy13 ment compensation under any State or Fed14 eral unemployment compensation program 

15 administered by the State; and 

16 ‘‘(iii) is eligible for not less than 20 

17 weeks of regular unemployment compensa18 tion described in clause (ii). 

19 ‘‘(B) ADDITIONAL ELIGIBILITY AND PRI20 ORITY CRITERIA.—A State may establish criteria 

21 that is in addition to the criteria described in 

22 subparagraph (A) for the eligibility of individ23 uals to receive assistance under this chapter. A 

24 State may also establish criteria for priority in 
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1 the provision of assistance to such eligible indi2 viduals under this chapter. 

3 ‘‘(3) TRANSITION RULE.—

4 ‘‘(A) PREVIOUSLY IDENTIFIED AS LIKELY

5 TO EXHAUST UNEMPLOYMENT COMPENSATION.—

6 ‘‘(i) IN GENERAL.—At the option of the 

7 State, and subject to clause (ii), an indi8 vidual may be eligible to receive assistance 

9 under this chapter if the individual—

10 ‘‘(I) during the 13-week period 

11 ending the week prior to the date of the 

12 enactment of the Back to Work Incen13 tive Act of 2003, was identified by the 

14 State pursuant to section 303(j)(1) of 

15 the Social Security Act as likely to ex16 haust regular unemployment com17 pensation and in need of job search as18 sistance to make a successful transition 

19 to new employment; and 

20 ‘‘(II) otherwise meets the require21 ments of clauses (ii) and (iii) of para22 graph (2)(A). 

23 ‘‘(ii) ADDITIONAL ELIGIBILITY AND

24 PRIORITY CRITERIA.—A State may establish 

25 criteria that is in addition to the criteria 
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1 described in clause (i) for the eligibility of 

2 individuals to receive assistance under this 

3 chapter. A State may also establish criteria 

4 for priority in the provision of assistance to 

5 such eligible individuals under this chapter. 

6 ‘‘(B) PREVIOUSLY EXHAUSTED UNEMPLOY7 MENT COMPENSATION.—At the option of the 

8 State, an individual may be eligible to receive 

9 assistance under this chapter if the individual—

10 ‘‘(i) during the 26-week period ending 

11 the week prior to the date of the enactment 

12 of the Back to Work Incentive Act of 2003, 

13 exhausted all rights to any unemployment 

14 compensation; and 

15 ‘‘(ii)(I) is enrolled in training and 

16 needs additional support to complete such 

17 training, with a priority of service to be 

18 provided to such individuals who are train19 ing for shortage occupations or high-growth 

20 industries; or 

21 ‘‘(II) is separated from employment in 

22 an industry or occupation that has experi23 enced declining employment, or no longer 

24 provides any employment, in the local labor 

25 market during the two-year period ending 
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1 on the date of the determination of eligi2 bility of the individual under this subpara3 graph. 

4 ‘‘(4) NO INDIVIDUAL ENTITLEMENT.—Nothing in 

5 this chapter shall be construed to entitle any indi6 vidual to receive a personal reemployment account. 

7 ‘‘(c) LOCAL ADMINISTRATION.—

8 ‘‘(1) INFORMATION AND ATTESTATION.—Prior to 

9 the establishment of a personal reemployment account 

10 for an eligible individual under this chapter, the local 

11 board, through the one-stop delivery system, shall en12 sure that the individual—

13 ‘‘(A) is informed of the requirements appli14 cable to the personal reemployment account, in15 cluding the allowable uses of funds from the ac16 count, the limitations on access to services de17 scribed under section 135F(a)(3)(C) and a de18 scription of such services, and the conditions for 

19 receiving a reemployment bonus; 

20 ‘‘(B) has the option to develop a personal 

21 reemployment plan which will identify the em22 ployment goals and appropriate combination of 

23 services selected by the individual to achieve the 

24 employment goals; and 
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1 ‘‘(C) signs an attestation that the indi2 vidual has been given the option to develop a 

3 personal reemployment plan in accordance with 

4 subparagraph (B), will comply with the require5 ments relating to the personal reemployment ac6 counts under this chapter, and will reimburse 

7 the account or, if the account has been termi8 nated, the program under this chapter, for any 

9 amounts expended from the account that are not 

10 allowable. 

11 ‘‘(2) PERIODIC INTERVIEWS.—If a recipient ex12 hausts his or her rights to any unemployment com13 pensation, and the recipient has a remaining balance 

14 in his or her personal reemployment account, the one15 stop delivery system shall conduct periodic interviews 

16 with the recipient to assist the recipient in meeting 

17 his or her individual employment goals. 

18 ‘‘SEC. 135F. USE OF FUNDS. 

19 ‘‘(a) ALLOWABLE ACTIVITIES.—

20 ‘‘(1) IN GENERAL.—Subject to the requirements 

21 contained in paragraphs (2) and (3), a recipient may 

22 use amounts in a personal reemployment account to 

23 purchase one or more of the following: 
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1 ‘‘(A) Intensive services, including those 

2 types of services specified in section 

3 134(d)(3)(C). 

4 ‘‘(B) Training services, including those 

5 types of services specified in section 

6 134(d)(4)(D). 

7 ‘‘(C) Supportive services, except for needs8 related payments. 

9 ‘‘(D) Assistance to purchase or lease an 

10 automobile, if such assistance is necessary to 

11 allow the recipient to accept a bona fide offer of 

12 employment for which there is a reasonable ex13 pectation of long-term duration. 

14 ‘‘(2) DELIVERY OF SERVICES.—The following re15 quirements relating to delivery of services shall apply 

16 to the program under this chapter: 

17 ‘‘(A) Recipients may use funds from the 

18 personal reemployment account to purchase the 

19 services described in paragraph (1) through the 

20 one-stop delivery system on a fee-for-service 

21 basis, or through other providers, consistent with 

22 safeguards described in the State and local plans 

23 under section 135G. 

24 ‘‘(B) The local board, through the one-stop 

25 delivery system, may pay costs for such services 
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1 directly on behalf of the recipient, through a 

2 voucher system, or by reimbursement to the re3 cipient upon receipt of appropriate cost docu4 mentation, consistent with safeguards described 

5 in the State plan under section 135G. 

6 ‘‘(C) Each local board, through the one-stop 

7 delivery system, shall make available to recipi8 ents information on training providers specified 

9 in section 134(d)(4)(F)(ii), information avail10 able to the one-stop delivery system on providers 

11 of the intensive and supportive services described 

12 in paragraph (1), and information relating to 

13 occupations in demand in the local area. 

14 ‘‘(3) LIMITATIONS.—The following limitations 

15 shall apply with respect to personal reemployment ac16 counts under this chapter: 

17 ‘‘(A)(i) Amounts in a personal reemploy18 ment account may be used for up to one year 

19 from the date of the establishment of the account. 

20 ‘‘(ii) No personal reemployment account 

21 may be established beginning 2 years after the 

22 date of the enactment of the Back to Work Incen23 tive Act of 2003. 
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1 ‘‘(B) Each recipient shall submit cost docu2 mentation as required by the one-stop delivery 

3 system. 

4 ‘‘(C) For the 1-year period following the es5 tablishment of the account, recipients may not 

6 receive intensive, supportive, or training services 

7 funded under this title except on a fee-for-services 

8 basis as specified in paragraph (2)(A). 

9 ‘‘(D) Amounts in a personal reemployment 

10 account shall be nontransferable. 

11 ‘‘(b) INCOME SUPPORT.—A State may authorize re12 cipients determined eligible under section 135E(b)(3)(B) to 

13 withdraw amounts from the personal reemployment account

14 on a weekly basis for purposes of income support in 

15 amounts up to the average weekly amount of unemployment 

16 compensation that the individual received prior to his or 

17 her exhaustion of rights to unemployment compensation if 

18 the individual is engaged in job search, intensive services, 

19 or training that is expected to lead to employment. 

20 ‘‘(c) REEMPLOYMENT BONUS.—

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2)—

22 ‘‘(A) if a recipient determined eligible under 

23 section 135E(b)(2) obtains full-time employment 

24 before the end of the 13th week of unemployment 

25 for which unemployment compensation is paid, 
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1 the balance of his or her personal reemployment 

2 account shall be provided directly to the recipi3 ent in cash; and 

4 ‘‘(B) if a recipient determined eligible 

5 under section 135E(b)(3) obtains full-time em6 ployment before the end of the 13th week after 

7 the date on which the account is established, the 

8 balance of his or her personal reemployment ac9 count shall be provided directly to the recipient 

10 in cash. 

11 ‘‘(2) LIMITATIONS.—The following limitations 

12 shall apply with respect to a recipient described in 

13 paragraph (1): 

14 ‘‘(A) 60 percent of the remaining personal 

15 reemployment account balance shall be paid to 

16 the recipient at the time of reemployment. 

17 ‘‘(B) 40 percent of the remaining personal 

18 reemployment account balance shall be paid to 

19 the recipient after 26 weeks of employment reten20 tion. 

21 ‘‘(3) EXCEPTION REGARDING SUBSEQUENT UN22 EMPLOYMENT.—If a recipient described in paragraph 

23 (1) subsequently becomes unemployed due to a lack of 

24 work after receiving the portion of the reemployment 

25 bonus specified under paragraph (2)(A), the indi-
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1 vidual may use the amount remaining in the per2 sonal reemployment account for the purposes de3 scribed in subsection (a) but may not be eligible for 

4 additional cash payments under this subsection. 

5 ‘‘SEC. 135G. STATE AND LOCAL PLANS. 

6 ‘‘(a) STATE PLAN.—In order for a State to receive an 

7 allotment under section 135C, the Governor of the State 

8 shall submit to the Secretary a plan for approval that in9 cludes a description of how the State intends to carry out 

10 the personal reemployment accounts authorized under this 

11 chapter, including—

12 ‘‘(1) the criteria and methods to be used for de13 termining eligibility for the personal reemployment 

14 accounts, including whether the State intends to in15 clude the optional categories described in section 

16 135E(b)(3), and the additional criteria and priority 

17 for service that the State intends to apply, if any, 

18 pursuant to section 135E(b)(2)(B); 

19 ‘‘(2) the methods or procedures, developed in con20 sultation with local boards and chief elected officials, 

21 to be used to provide eligible individuals information 

22 relating to services and providers, and safeguards, de23 veloped in consultation with such boards and officials, 

24 to ensure that funds from the personal reemployment 

25 accounts are used for purposes authorized under this 
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1 chapter and to ensure the quality and integrity of 

2 services and providers, consistent with the purpose of 

3 providing such individuals with enhanced flexibility, 

4 choice, and control in obtaining intensive reemploy5 ment, training, and supportive services; 

6 ‘‘(3) how the State will coordinate the activities 

7 carried out under this chapter with the employment 

8 and training activities carried out under section 134 

9 and other activities carried out by each local board 

10 through the one-stop delivery system in the State; and 

11 ‘‘(4) the methods and procedures for providing 

12 funds to local areas under section 135D(a)(3). 

13 ‘‘(b) LOCAL PLAN.—In order for a local area to receive 

14 an allocation under section 135D, the local board, in part15 nership with the chief elected official for the local area in16 volved, shall submit to the Governor a plan for approval 

17 that includes a description of how the local board intends 

18 to carry out the personal reemployment accounts, consistent 

19 with the requirements of this chapter and with the State 

20 plan established under subsection (a), including—

21 ‘‘(1) a description of how the local board will co22 ordinate the activities carried out under this chapter 

23 with the employment and training activities carried 

24 out in the local area under section 134; and 
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1 ‘‘(2) a description of the methods or procedures 

2 to be used to provide eligible individuals information 

3 relating to the jobs that are available in the local area 

4 in high demand occupations and information on serv5 ices and providers, and the safeguards the local area 

6 will initiate to ensure that funds from the personal 

7 reemployment accounts are used for purposes author8 ized under this chapter and to ensure the quality and 

9 integrity of services and providers, consistent with the 

10 purpose of providing such individuals with enhanced 

11 flexibility, choice, and control in obtaining intensive 

12 reemployment, training, and supportive services, and 

13 consistent with the State plan. 

14 ‘‘(c) STATE PLAN SUBMISSION AND APPROVAL.—A 

15 State plan submitted to the Secretary under subsection (a) 

16 by a Governor shall be considered to be approved by the 

17 Secretary at the end of the 30-day period beginning on the 

18 date the Secretary receives the plan, unless the Secretary 

19 makes a written determination during such period that the 

20 plan is incomplete or otherwise inconsistent with the provi21 sions of this chapter. 

22 ‘‘SEC. 135H. PROGRAM INFORMATION. 

23 ‘‘The Secretary may require from States the collection 

24 and reporting on such financial, performance, and other 

25 program-related information as the Secretary determines is 
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1 appropriate to carry out this chapter, including the evalua2 tion described in section 135I. 

3 ‘‘SEC. 135I. EVALUATION. 

4 ‘‘(a) EVALUATION.—From the amount made available 

5 under section 135C(a)(1), the Secretary, pursuant to the 

6 authority provided under section 172, shall, directly or 

7 through grants, contracts, or cooperative agreements with 

8 appropriate entities, conduct an evaluation of the activities 

9 carried out under this chapter. 

10 ‘‘(b) CONDUCT OF EVALUATION.—The evaluation shall 

11 examine the effectiveness of such activities in achieving the 

12 purposes described in section 135A and such other purposes 

13 as the Secretary determines are appropriate.

14 ‘‘(c) REPORT.—The report to Congress under section 

15 172(e) relating to the results of the evaluations required 

16 under section 172 shall include the recommendation of the 

17 Secretary with respect to the use of personal reemployment 

18 accounts as a mechanism to assist individuals in obtaining 

19 and retaining employment.’’. 

20 SEC. 3. ADMINISTRATION. 

21 Section 117(d) of the Workforce Investment Act of 1998 

22 (29 U.S.C. 2832(d)) is amended—

23 (1) in paragraph (3)(B)(i)(I), by striking ‘‘sec24 tions 128 and 133’’ and inserting ‘‘sections 128, 133, 

25 and 135D’’; and 
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1 (2) in paragraph (4), by inserting ‘‘, activities 

2 authorized under section 135F’’ after ‘‘section 134’’. 

3 SEC. 4. DELIVERY OF SERVICES. 

4 Section 134(c)(1) of the Workforce Investment Act of 

5 1998 (29 U.S.C. 2864(c)(1)) is amended—

6 (1) in subparagraph (D), by striking ‘‘and’’ at 

7 the end; 

8 (2) in subparagraph (E), by striking the period 

9 at the end and inserting ‘‘; and’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(F) shall provide access to personal reem12 ployment accounts in accordance to section 

13 135E.’’. 

14 SEC. 5. AUTHORIZATION OF APPROPRIATION. 

15 Section 137 of the Workforce Investment Act of 1998 

16 (29 U.S.C. 2872) is amended by adding at the end the fol17 lowing: 

18 ‘‘(d) PERSONAL REEMPLOYMENT ACCOUNTS.—

19 ‘‘(1) IN GENERAL.—There is authorized to be ap20 propriated $3,600,000,000 for fiscal year 2003 to 

21 carry out chapter 5A. 

22 ‘‘(2) AVAILABILITY.—Amounts appropriated 

23 pursuant to the authorization of appropriations 

24 under paragraph (1) to carry out section 135I are 

25 authorized to remain available until expended.’’. 
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1 SEC. 6. CONFORMING AMENDMENT. 

2 The table of contents for the Workforce Investment Act 

3 of 1998 is amended by inserting after the items relating 

4 to chapter 5 of subtitle B of title I the following new items:

‘‘CHAPTER 5A—PERSONAL REEMPLOYMENT ACCOUNTS

‘‘Sec. 135A. Purposes. 

‘‘Sec. 135B. Definition. 

‘‘Sec. 135C. Grants to States. 

‘‘Sec. 135D. Within State allocation. 

‘‘Sec. 135E. Personal reemployment accounts. 

‘‘Sec. 135F. Use of funds. 

‘‘Sec. 135G. State and local plans. 

‘‘Sec. 135H. Program information. 

‘‘Sec. 135I. Evaluation.’’.
Union Calendar No. 22

108TH CONGRESS 

1ST SESSION H. R. 444

[Report No. 108–35] 

A BILL

To amend the Workforce Investment Act of 1998 

to establish a Personal Reemployment Accounts grant program to assist Americans in returning to work. 

MARCH 13, 2003

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed