(2) GRANT CYCLES.—Grants shall be awarded 
under this section in 2 grant cycles. Grants for the 
second grant cycle shall be awarded not earlier than 
the end of the second year of the first 3-year grant 
cycle. 
(f) LIMIT ON AWARD NUMBER.—An eligible entity 
may only be awarded 1 grant total under this section. 
(g) AMOUNT OF AWARDS.—A grant awarded under 
this section may not be made in an amount that is less 
than $100,000, or more than $500,000, for the 3-year 
grant period. 
(h) ELIGIBLE ENTITY DEFINED.—In this title, the 
term ‘‘eligible entity’’ means an entity that— 
(1) employs individuals with disabilities under 
special certificates and is located in a State that did 
not receive a grant under section 102; and 
(2) partners with at least 2 entities with experi-
ence providing support to individuals with disabil-
ities in competitive integrated employment, such 
as— 
(A) an employer providing competitive in-
tegrated employment; 
(B) a State developmental disability agen-
cy; 
(C) a State mental health services agency; 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(D) a representative of an agency de-
scribed in paragraph (6) or (7) of section 8501 
of title 41, United States Code; 
(E) a representative of the State Council 
on Developmental Disabilities, as defined in sec-
tion 102 of the Developmental Disabilities As-
sistance and Bill of Rights Act of 2000 (42 
U.S.C. 15002); 
(F) a representative of the State vocational 
rehabilitation agency, as such term is used 
under the Rehabilitation Act of 1973 (29 
U.S.C. 701 et seq.); 
(G) a representative of the State inde-
pendent living centers, as such term is used 
under the Rehabilitation Act of 1973 (29 
U.S.C. 701 et seq.); 
(H) a representative of one of the State 
University Centers for Excellence in Develop-
mental Disabilities Education, Research, and 
Service, established under subtitle D of title I 
of the Developmental Disabilities Assistance 
and Bill of Rights Act of 2000 (42 U.S.C. 
15061 et seq.); 
(I) a representative of the State protection 
and advocacy system, as defined in section 102 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
of the Developmental Disabilities Assistance 
and Bill of Rights Act of 2000 (42 U.S.C. 
15002); and 
(J) a nonprofit agency or organization spe-
cializing in competitive integrated employment. 
TITLE II—PHASE OUT OF SPE-
CIAL CERTIFICATES UNDER 
SECTION 14(C) OF THE FAIR 
LABOR STANDARDS ACT OF 
1938 
SEC. 201. TRANSITION TO FAIR WAGES FOR INDIVIDUALS 
WITH DISABILITIES. 
(a) IN GENERAL.—Subparagraph (A) of section 
14(c)(1) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 214(c)(1)) is amended to read as follows: 
‘‘(A) at a rate that equals, or exceeds, the 
greater of— 
‘‘(i)(I) 60 percent of the wage rate in ef-
fect under section 6(a)(1), beginning on the ef-
fective date described in section 201(b) of 
Transformation to Competitive Integrated Em-
ployment Act; 
‘‘(II) 70 percent of the wage rate in effect 
under section 6(a)(1), beginning 1 year after 
such effective date; 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
‘‘(III) 80 percent of the wage rate in effect 
under section 6(a)(1), beginning 2 years after 
such effective date; 
‘‘(IV) 90 percent of the wage rate in effect 
under section 6(a)(1), beginning 3 years after 
such effective date; and 
‘‘(V) the wage rate in effect under section 
6(a)(1), beginning 4 years after such effective 
date; or 
‘‘(ii) the wage rate in effect on the day be-
fore the date of enactment of the Trans-
formation to Competitive Integrated Employ-
ment Act for the employment, under a special 
certificate issued under this paragraph, of the 
individual for whom the wage rate is deter-
mined under this paragraph;’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date that is 3 
months after the date of enactment of this Act. 
SEC. 202. PROHIBITION ON NEW SPECIAL CERTIFICATES; 
SUNSET. 
Section 14(c) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 214(c)) (as amended by section 201), 
is further amended by adding at the end the following: 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
‘‘(6) PROHIBITION
ON
NEW
SPECIAL
CERTIFI-
CATES.—Notwithstanding paragraph (1), the Secretary 
shall not issue a special certificate under this subsection 
to an employer that was not issued a special certificate 
under this subsection before the date of enactment of the 
Transformation to Competitive Integrated Employment 
Act. 
‘‘(7) SUNSET.—Beginning on the day after the date 
that is 4 years after the effective date described in section 
201(b) of the Transformation to Competitive Integrated 
Employment Act— 
‘‘(A) the authority to issue special certificates 
under paragraph (1) shall expire; and 
‘‘(B) no special certificates issued under para-
graph (1) shall have any legal effect.’’. 
TITLE III—TECHNICAL ASSIST-
ANCE AND DISSEMINATION 
SEC. 301. TECHNICAL ASSISTANCE AND DISSEMINATION. 
(a) GRANT AUTHORIZED.—From the amounts appro-
priated for this title, the Secretary (acting through the 
Office of Disability Employment Policy of the Department 
of Labor in partnership with the Employment and Train-
ing Administration of the Department of Labor), in part-
nership with the Administration for Community Living of 
the Department of Health and Human Services and the 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
Office of Special Education and Rehabilitative Services of 
the Department of Education, shall award a grant to a 
nonprofit entity to— 
(1)(A) provide technical assistance to employers 
who are transforming from employing individuals 
with disabilities using special certificates to pro-
viding competitive integrated employment; 
(B) identify and disseminate private and public 
sector models of the transition described in subpara-
graph (A); and 
(C) build a set of replicable strategies for em-
ployers using special certificates to increase their use 
of evidence-based practices in providing competitive 
integrated employment and increase their options for 
providing competitive integrated employment; 
(2) collect and disseminate— 
(A) evidence-based practices with respect 
to the transformations described in paragraph 
(1)(A), including practices that increase aware-
ness of and access to training materials from 
and opportunities offered through the Office of 
Disability Employment Policy of the Depart-
ment of Labor; and 
(B) evidence-based strategies for imple-
menting the aims of activities, intended to im-
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
prove the quality of integrated services to result 
in competitive integrated employment for indi-
viduals with disabilities, carried out— 
(i) under the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3101 et 
seq.); 
(ii) through settlement agreements 
made pursuant to the employment require-
ments under the Olmstead decision; or 
(iii) through home and community- 
based services described in the Home and 
Community-Based Services (HCBS) final 
rule published on January 16, 2014 (79 
Fed. Reg. 2948), or a successor rule; 
(3) leverage and increase awareness of and ac-
cess to training materials and opportunities made 
available through training and technical assistance 
investments of— 
(A) the Office of Disability Employment 
Policy of the Department of Labor; 
(B) the Employment and Training Admin-
istration of the Department of Labor; 
(C) the Administration for Community 
Living of the Department of Health and 
Human Services; and 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(D) the Office of Special Education and 
Rehabilitative Services of the Department of 
Education; and 
(4)(A) raise awareness of efforts in States to 
carry out the Employment First initiative; and 
(B) coordinate dissemination efforts related to 
ABLE accounts and other financial asset develop-
ment resources through the ABLE National Re-
source Center and the Department of the Treasury. 
(b) APPLICATION.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under this section, a nonprofit entity shall 
submit an application to the Secretary at such time, 
in such manner, and including such information that 
the Secretary may reasonably require. 
(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
(A) a description of the nonprofit entity’s 
expertise in providing technical assistance that 
shall include evidence of— 
(i) knowledge of transforming busi-
ness and program models providing em-
ployment using special certificates to mod-
els providing competitive integrated em-
ployment and integrated services; 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(ii) knowledge of methods for sup-
porting employers, including employers not 
receiving a grant under title I, to trans-
form as described in clause (i); 
(iii) experience working with non-
profit, for-profit, Federal, State, and local 
agencies focusing on employment of youth 
and adults who are individuals with dis-
abilities; and 
(iv) experience working with individ-
uals with disabilities and their families; 
(B) a description of the nonprofit entity’s 
expertise in providing, collecting, compiling, 
communicating, and disseminating information 
about program and systems change for pro-
grams serving individuals with disabilities that 
shall include— 
(i) expertise documenting program 
change; 
(ii) experience compiling recommended 
practices 
related 
to 
program 
trans-
formations; 
(iii) expertise regarding competitive 
integrated employment for youth and 
adults who are individuals with disabilities; 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(iv) expertise working with individuals 
with disabilities and their families through 
systems change procedures; 
(v) expertise creating accessible prod-
ucts to disseminate learned information, 
including through web-based means; 
(vi) experience creating accessible 
websites to disseminate information; 
(vii) experience working with non-
profit, for-profit, Federal, State, and local 
agencies focusing on employment of youth 
and adults who are individuals with dis-
abilities; 
(viii) experience with assisting youth 
who are individuals with disabilities in 
transitioning from receiving services under 
the Individuals with Disabilities Education 
Act (20 U.S.C. 1401 et seq.) to inclusive 
postsecondary education and competitive 
integrated employment; and 
(ix) experience leveraging resources, 
available through the Office of Disability 
Employment Policy and the Employment 
and Training Administration, that are de-
signed to provide effective and efficient 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
services to job seekers who are individuals 
with disabilities in competitive integrated 
employment settings; and 
(C) a description of the individuals at the 
nonprofit entity who will be responsible for car-
rying out the activities under this title. 
(3) DURATION OF AWARD.—A grant under this 
section shall be awarded for a period of 6 years, and 
shall be non-renewable. 
(4) NONPROFIT ENTITY DEFINED.—In this sec-
tion, the term ‘‘nonprofit entity’’ means a nonprofit 
entity with expertise in collecting, compiling, com-
municating, and disseminating information about 
program and systems change for programs serving 
individuals with disabilities. 
TITLE IV—REPORTING AND 
EVALUATION 
SEC. 401. IMPACT EVALUATION AND REPORTING. 
(a) IN GENERAL.—Not later than 6 months after the 
date of enactment of this Act, the Secretary shall enter 
into a contract with a nonprofit entity with experience in 
conducting evaluations of program and systems change ef-
forts to— 
(1) conduct a multi-year evaluation on the im-
pact of this Act, including the amendments made by 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
this Act, with respect to individuals with disabilities 
(including such individuals receiving a wage rate 
under section 14(c) of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 214(c)), as amended by title II); 
and 
(2) prepare the reports described in subsection 
(c). 
(b) EVALUATION.—In carrying out subsection (a)(1), 
the nonprofit entity awarded a contract under this section 
shall evaluate— 
(1) changes in wages and employment for indi-
viduals described in subsection (a)(1); and 
(2) actions taken by employers and States to 
comply with the amendments made by title II and, 
in the case of an employer or State receiving funds 
under title I, to comply with the transformation re-
quirements under such title. 
(c) REPORTS.—The Secretary shall submit to the 
Committee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and the 
Workforce of the House of Representatives, the following 
reports on the evaluation conducted under subsection 
(a)(1): 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(1) An interim report on the evaluation, not 
later than 3 years after the evaluation commences 
under subsection (a)(1). 
(2) A final report on such evaluation, not later 
than 18 months after the date on which the legal ef-
fect of special certificates expire pursuant to para-
graph (7) of section 14(c) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 214(c)), as added by 
title II. 
SEC. 402. WAGE AND HOUR REPORTS. 
(a) IN GENERAL.—For each year of the 5-year period 
described in section 14(c)(1)(A) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 214(c)(1)(A)), as amended 
by title II, the Secretary (acting through the Adminis-
trator of the Wage and Hour Division), in coordination 
with the Civil Rights Division of the Department of Jus-
tice, shall submit to the Committee on Health, Education, 
Labor, and Pensions of the Senate and the Committee on 
Education and the Workforce of the House of Representa-
tives, an annual report summarizing practices of employ-
ers providing employment using special certificates, which, 
with respect to the preceding year, shall include— 
(1) the number of employees (of such employ-
ers) who are individuals with disabilities and who 
are compensated at a rate that is less than— 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(A) the higher of the rate specified in sec-
tion 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) or the rate speci-
fied in the applicable State or local minimum 
wage law; or 
(B) the customary rate paid by the em-
ployer for the same or similar work performed 
by other employees who are not individuals with 
disabilities, and who are similarly situated in 
similar occupations by the same employer and 
who have similar training, experience, and 
skills; 
(2) the type of employment setting (such as 
segregated employment or competitive integrated 
employment) and the integrated services provided by 
such employers; 
(3) the average hourly wage, minimum and 
maximum hourly wage, and average hours worked 
per week of employees described in paragraph (1), 
disaggregated by employer and by State; 
(4) the aggregate demographic characteristics 
of employees described in paragraph (1), including 
the gender, ethnicity, race, and type of disability of 
such employees; and 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(5) the number of employees who have 
transitioned from employment provided under a spe-
cial certificate to competitive integrated employment, 
disaggregated by employer and by State. 
(b) REPORT ON SURVEY OF EXISTING SPECIAL CER-
TIFICATE HOLDERS.—Not later than 1 year after the date 
of enactment of this Act, the Secretary (acting through 
the Administrator of the Wage and Hour Division) shall— 
(1) survey not less than 10 percent of employ-
ers providing employment to employees using special 
certificates, as of the date of enactment of this Act, 
which shall include an evaluation of— 
(A) the training and support provided to 
such employees to promote their transition to 
competitive integrated employment; 
(B) the actions taken by employers to 
identify competitive integrated employment for 
such employees; and 
(C) the wages of such employees, including 
whether such wages are at a rate that is less 
than— 
(i) the higher of the rate specified in 
section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(a)(1)) or 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
the rate specified in the applicable State or 
local minimum wage law; or 
(ii) the customary rate paid by the 
employer for the same or similar work per-
formed by other employees who are not in-
dividuals with disabilities, and who are 
similarly situated in similar occupations by 
the same employer and who have similar 
training, experience, and skills; and 
(2) submit a report on the results of such sur-
vey to the Committee on Health, Education, Labor, 
and Pensions of the Senate, the Special Committee 
on Aging of the Senate, and the Committee on Edu-
cation and the Workforce of the House of Rep-
resentatives. 
TITLE V—GENERAL PROVISIONS 
SEC. 501. DEFINITIONS. 
In this Act: 
(1) ABLE ACCOUNT.—The term ‘‘ABLE ac-
count’’ has the meaning given such term in section 
529A(e)(6) of the Internal Revenue Code of 1986. 
(2) 
COMPETITIVE
INTEGRATED
EMPLOY-
MENT.—The term ‘‘competitive integrated employ-
ment’’ has the meaning given the term in section 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
7(5) of the Rehabilitation Act of 1973 (29 U.S.C. 
705(5)). 
(3) DISABILITY.—The term ‘‘disability’’ in-
cludes any intellectual, developmental, mental health, 
or other disability. 
(4) INTEGRATED
COMMUNITY
PARTICIPATION 
AND
WRAPAROUND
SERVICES; INTEGRATED
SERV-
ICES.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the terms ‘‘integrated com-
munity participation and wraparound services’’ 
or ‘‘integrated services’’ mean services for indi-
viduals with disabilities that are— 
(i) designed to assist such individuals 
in developing skills and abilities to reside 
successfully in home and community-based 
settings; 
(ii) provided in accordance with a per-
son-centered written plan of care; 
(iii) 
created 
using 
evidence-based 
practices that lead to such individuals— 
(I) maintaining competitive inte-
grated employment; 
(II) achieving independent living; 
or 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(III) maximizing socioeconomic 
self-sufficiency, optimal independence, 
and full participation in the commu-
nity; 
(iv) provided in a community location 
that is not specifically intended for individ-
uals with disabilities; 
(v) provided in a location that— 
(I) allows the individuals receiv-
ing the services to interact with indi-
viduals without disabilities to the full-
est extent possible; and 
(II) makes it possible for the in-
dividuals receiving the services to ac-
cess community resources that are not 
specifically intended for individuals 
with disabilities and to have the same 
opportunities to participate in the 
community as individuals who do not 
have a disability; 
(vi) provided in multiple locations to 
allow the individual receiving the services 
to have options, thereby— 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(I) optimizing individual initia-
tive, autonomy, and independence; 
and 
(II) facilitating choice regarding 
services and supports, and choice re-
garding the provider of such services; 
and 
(vii) in compliance with the Home and 
Community-Based Services (HCBS) final 
rule published on January 16, 2014 (79 
Fed. Reg. 2948), or a successor rule. 
(B) EXCLUSIONS.—The terms ‘‘integrated 
community participation and wraparound serv-
ices’’ or ‘‘integrated services’’ shall not include 
a service provided in any of the following set-
tings: 
(i) A nursing facility. 
(ii) An institution for individuals with 
mental diseases. 
(iii) An intermediate care facility for 
individuals with intellectual disabilities. 
(iv) A congregate setting in which an 
individual does not have the ability, at the 
time preferred by the individual and in ac-
cordance with other preferences of the in-
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS
(11) STATE.—The term ‘‘State’’ means each of 
the 50 States, the District of Columbia, the Com-
monwealth of Puerto Rico, and the territory of 
Guam. 
(12) STATE BOARD.—The term ‘‘State board’’ 
has the meaning given such term in section 3 of the 
Workforce Innovation and Opportunity Act. 
(13) WORKFORCE
DEVELOPMENT
SYSTEM.— 
The term ‘‘workforce development system’’ has the 
meaning given such term in section 3 of the Work-
force Innovation and Opportunity Act. 
SEC. 502. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this Act (other than section 102(f)), $50,000,000 for each 
of fiscal years 2024 through 2029. 
Æ 
VerDate Sep 11 2014 
21:56 Mar 15, 2023
Jkt 039200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6301
E:\BILLS\H1263.IH
H1263
kjohnson on DSK79L0C42PROD with BILLS