On the Job Training Act

To amend certain provisions of the Social Security Act relating to demonstration projects designed to provide unemployed workers with the information, skills, and relationships they need for reemployment. 1. Short title This Act may be cited as the On the Job Training Act 2. Removal of barriers to promote reemployment through demonstration projects (a) Modification of numerical limitation Subsection (a) of section 305 of the Social Security Act ( 42 U.S.C. 505 per year 10 States (b) Clarification of application requirements Subsection (b) of such section 305 is amended— (1) by inserting or his or her designee The Governor of any State (2) by striking paragraph (2) and inserting the following: (2) for any waiver requested under subsection (c), a statement describing— (A) the specific provision or provisions of law for which such waiver is requested; and (B) the specific aspects of the project to which such waiver would apply and the reasons why it is needed; . (c) Extension of eligible time period Subsection (d) of such section 305 is amended— (1) in paragraph (1), by striking may must be commenced not later than December 31, 2017; and (2) in paragraph (2)— (A) by striking may not be approved may not be conducted (B) by striking ; and (3) by striking paragraph (3). (d) Clarification of demonstration activities Subsection (e) of such section 305 is amended— (1) in paragraph (1), by striking for employer-provided training, such as to employers or claimants for employer-provided training or (2) in paragraph (2), by striking , not to exceed the weekly benefit amount for each such individual, to pay part of the cost of wages that exceed the unemployed individual's prior benefit level that include disbursements promoting retention (e) Selection of qualifying applications on a first-Come, first-Served basis and review of cost neutrality Subsection (f) of such section 305 is amended to read as follows: (f) The Secretary of Labor shall, in the case of any State for which an application is submitted under subsection (b)— (1) approve completed applications in the order of receipt; (2) before approving an application, determine whether the assurances that the demonstration project would not result in any increased costs to the State's account in the Unemployment Trust Fund required under subsection (b)(4) are credible and disapprove any application that includes assurances that are determined to not be credible; (3) notify the State as to whether such application has been approved or denied within 30 days after receipt of a complete application; and (4) provide public notice of the decision within 10 days after providing notification to the State in accordance with paragraph (3). Public notice under paragraph (3) may be provided through the Internet or other appropriate means. Any application under this section that has not been denied within the 30-day period described in paragraph (3) shall be deemed approved, and public notice of any approval under this sentence shall be provided within 10 days thereafter. . (f) Termination of demonstration projects Subsection (g) of such section 305 is amended to read as follows: (g) The Secretary of Labor may terminate a demonstration project under this section if the Secretary— (1) determines that the State has violated the substantive terms or conditions of the project; (2) notifies the State in writing with sufficient detail describing the violation; and (3) determines that the State has not taken action to correct the violation within 90 days after the notification. . (g) Funding for administrative costs Such section 305 is amended by adding at the end the following new subsection: (i) In addition to the amounts described in subsection (h), during the period of fiscal years 2015 through 2020 there is authorized to be appropriated $6,000,000 to the Secretary of Labor for purposes of making payments to States that have entered into agreements with the Secretary to conduct demonstration projects under this section. A payment to a State under this subsection— (1) shall be used by the State to administer a demonstration project approved under this section; (2) shall remain available until expended; and (3) shall not exceed $200,000 for any fiscal year. . (h) Effective date; transition rule (1) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act. (2) Transition rule (A) In general Nothing in this Act shall be considered to terminate or otherwise affect any demonstration project approved under section 305 of the Social Security Act before the date of the enactment of this Act. (B) Original conditions continue to apply A demonstration project described in subparagraph (A) shall be conducted in the same manner as if subsections (a) through (f) had not been enacted. 3. Evaluation of demonstration projects (a) In general Section 305 of the Social Security Act ( 42 U.S.C. 505 (i) The Secretary of Labor shall conduct an impact evaluation of each demonstration project conducted under this section, using existing data sources to the extent possible and methodology appropriate to determine the effects of the demonstration project, including on individual skill levels, earnings, and employment retention. . (b) Cooperation by State Section 305(b) of the Social Security Act ( 42 U.S.C. 505(b) (5) a description of the manner in which the State will determine the extent to which the goals and outcomes described in paragraph (3) were achieved; (6) assurances that the State will cooperate, in a timely manner, with the Secretary of Labor with respect to the impact evaluation conducted under subsection (i); and . (c) Reporting Not later than 90 days after the end of fiscal year 2014 and each fiscal year thereafter, until the completion of the last evaluation under section 305(i) of the Social Security Act, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, a report that includes a description of— (1) the status of each demonstration project being carried out under this section; (2) the results of the evaluation completed during the previous fiscal year; and (3) the Secretary’s plan for— (A) disseminating the findings of the report to appropriate State agencies; and (B) incorporating the components of successful demonstration projects that reduced benefit duration and increased employment into Federal unemployment law. (d) Public dissemination In addition to the reporting requirements under subparagraph (c), evaluation results shall be shared broadly to inform policymakers, service providers, other partners, and the public in order to promote wide use of successful strategies, including by posting evaluation results on the Internet website of the Department of Labor.

Summary: On the Job Training Act - Amends title III (Grants to States for Unemployment Compensation Administration) of the Social Security Act, with respect to grants to states by the Secretary of Labor for reemployment demonstration projects, to allow grants to up to 10 states per year instead of a maximum of 10 states altogether. Allows a designee of a state governor, instead of only the governor, to apply for such a grant. Requires any project to be commenced by December 31, 2017. Allows direct disbursements under a project to employers who hire individuals receiving unemployment compensation to include disbursements promoting retention. Requires the Secretary of Labor to: (1) approve completed grant applications in the order of receipt; (2) determine, before approving an application, whether its assurances are credible that the project would not result in increased costs to the state's account in the Unemployment Trust Fund; and (3) disapprove any application making assurances determined not credible. Revises requirements for termination of a project to require the Secretary to: (1) notify a state in writing with sufficient detail describing any violation of the substantive terms or conditions of a project justifying its termination, and (2) determine that the state has not taken action to correct the violation within 90 days after notification. Authorizes appropriations for FY2015-FY2020 for additional payments to states for the administrative costs of demonstration projects. Directs the Secretary to evaluate the impact of each demonstration project, using existing data sources and methodology appropriate to determine project effects, including the effect on individual skill levels, earnings, and employment retention.