I
105TH CONGRESS
2D SESSION
H. R. 4097
To provide transitional community employment for unemployed persons, and
other individuals in poverty, who live in certain identified communities,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 19, 1998
Ms. NORTON introduced the following bill; which was referred to the Commit-
tee on Education and the Workforce, and in addition to the Committee
on 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 transitional community employment for unem-
ployed persons, and other individuals in poverty, who
live in certain identified communities, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Strategic Transitional
Employment Program Act’’.
SEC. 2. DEFINITIONS.
In this Act:
(1) CHIEF
ELECTED
OFFICIAL.—The term
‘‘chief elected official’’ means—
(A) the chief elected executive officer of
the unit of general local government in a local
area; or
(B) if the local area includes more than 1
unit of general local government, 1 or more
chief elected executive officers, determined in
accordance with the procedure described in sec-
tion 308(d)(1) of Senate Bill 1186, 105th Con-
gress, as reported on October 15, 1997.
(2) 
COMMUNITY.—The 
term 
‘‘community’’
means 1 or more contiguous census tracts or contig-
uous block numbering areas within a local area.
(3) 
COMMUNITY
EMPLOYMENT.—The 
term
‘‘community employment’’ means employment de-
scribed in section 213(b).
(4) EMPLOYMENT PROGRAM.—The term ‘‘em-
ployment program’’ means a strategic transitional
employment program described in section 101 and
funded under this Act.
(5) IDENTIFIED COMMUNITY.—The term ‘‘iden-
tified community’’ means—
(A) for purposes of title II, a community
identified 
by 
a 
Governor 
under 
section
202(c)(2); and
(B) for purposes of title III, a community
identified by a chief elected official under sec-
tion 302(a).
(6) INDIAN TRIBE.—The term ‘‘Indian tribe’’
has the meaning given such term in section 4(e) of
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b(e)).
(7) LOCAL
AREA.—The term ‘‘local area’’
means a local workforce investment area designated
as described in section 307 of Senate Bill 1186,
105th Congress, as reported on October 15, 1997.
(8) NATIVE
HAWAIIAN
ORGANIZATION.—The
term ‘‘Native Hawaiian organization’’ has the mean-
ing given such term in section 9212(3) of the Native
Hawaiian Education Act (20 U.S.C. 7912(3)).
(9) OUTLYING
AREA.—The term ‘‘outlying
area’’ means the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, the Republic of the Mar-
shall Islands, the Federated States of Micronesia,
and the Republic of Palau.
(10) POVERTY LINE.—The term ‘‘poverty line’’
means the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) ap-
plicable to a family of the size involved.
(11) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Labor.
(12) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District
of Columbia, and the Commonwealth of Puerto Rico.
(13) UNEMPLOYED.—The term ‘‘unemployed’’
means unemployed as defined by the Commissioner
of Labor Statistics.
(14) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘‘unit of general local govern-
ment’’ means any general purpose political subdivi-
sion of a State that has the power to levy taxes and
spend funds, as well as general corporate and police
powers.
(15) VETERAN.—The term ‘‘veteran’’ means an
individual who served in the active military, naval, or
air service, and who was discharged or released from
such service under conditions other than dishonor-
able.
TITLE 
I—GRANTS 
TO 
STATES
FOR DEVELOPMENT OF EM-
PLOYMENT PROGRAMS
SEC. 101. GRANTS.
(a) IN GENERAL.—From the funds appropriated to
carry out this title for a fiscal year and not reserved under
section 401, the Secretary shall make grants to assist eli-
gible States and outlying areas in developing strategic
transitional employment programs that provide commu-
nity employment, in local areas with identified commu-
nities, in the States and in outlying areas. The Secretary
shall make the grants to pay for the program share of
the cost of the development.
(b) LIMITS.—No State or outlying area shall receive
a grant under this section in an amount that exceeds
$1,000,000. No State or outlying area shall receive more
than 1 grant under this section.
(c) PERIOD.—Grants made under this section shall
be made for periods of 1 year.
(d) PROGRAM SHARE.—
(1) IN GENERAL.—The program share of the
cost of developing employment programs in a State
or outlying area is 662⁄3 percent.
(2) NON-PROGRAM SHARE.—The non-program
share of the cost may be provided in cash (including
funds made available from federally funded pro-
grams, other than programs carried out under this
Act, with a non-Federal share requirement, and in-
cluding funds from State, local, and private sources)
or in kind, fairly evaluated, including plant, equip-
ment, or services.
SEC. 102. APPLICATIONS.
To be eligible to receive a grant under section 101
to develop employment programs under this title, a State
or outlying area shall submit an application to the Sec-
retary at such time, in such manner, and containing such
information as the Secretary may require.
SEC. 103. DEVELOPMENT ACTIVITIES.
A State or outlying area that receives a grant under
section 101 shall use the funds made available through
the grant to develop employment programs by developing
the State plan described in section 202 or the application
described in section 222, as appropriate.
SEC. 104. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this title $50,000,000 for fiscal year 1999 and such sums
as may be necessary for each of fiscal years 2000 through
2002.
TITLE II—GRANTS TO STATES
FOR 
IMPLEMENTATION 
OF
EMPLOYMENT PROGRAMS
Subtitle A—State Activities
SEC. 201. STATE ALLOTMENTS.
(a) IN GENERAL.—From the funds appropriated to
carry out this title for a fiscal year and not reserved under
section 221, 233, or 401, the Secretary shall make allot-
ments under subsection (b) to assist eligible States in
making grants to local areas, in order to implement em-
ployment programs in the States. The Secretary shall
make the allotments to pay for the program share of the
cost of the implementation.
(b) STATE ALLOTMENTS.—Of the funds described in
subsection (a), the Secretary shall allot—
(1) 50 percent on the basis of the relative num-
ber of unemployed individuals in each State, com-
pared to the total number of unemployed individuals
in all States; and
(2) 50 percent on the basis of the relative num-
ber of individuals in poverty in each State, compared
to the total number of individuals in poverty in all
States.
(c) ELIGIBILITY.—To be eligible to receive an allot-
ment under this section for a fiscal year, a State shall
have received a grant under section 101 for a preceding
fiscal year.
(d) REALLOTMENT.—If any part of the funds allotted
under this section to a State for a fiscal year is not distrib-
uted to the State, or used for implementation grants to
local areas under title III, for such fiscal year, any remain-
ing funds from such part shall be reallotted under this
section for such fiscal year to the remaining eligible
States.
(e) PROGRAM SHARE.—
(1) IN GENERAL.—The program share of the
cost of implementing employment programs in a
State is 662⁄3 percent.
(2) NON-PROGRAM SHARE.—The non-program
share of the cost may be provided in cash (including
funds made available from federally funded pro-
grams, other than programs carried out under this
Act, with a non-Federal share requirement, and in-
cluding funds from State, local, and private sources)
or in kind, fairly evaluated, including plant, equip-
ment, or services.
(f) DEFINITION.—In this section, the term ‘‘individ-
ual in poverty’’ means an individual who received an in-
come, or is a member of a family that received a total
need of the local areas for the employment to
be provided through the employment programs.
(2) IDENTIFICATION OF COMMUNITIES WITHIN
LOCAL AREAS.—To enable the chief elected officials
of the local areas to develop local plans under sec-
tion 212 and to enable the Governor to make the se-
lection described in paragraph (1), the Governor
shall compile data, including information on income
levels, the poverty rate, the unemployment rate, edu-
cation levels, housing values, and the housing owner
occupancy rate in divisions in the local areas. The
Governor shall compile the data from the smallest
geographic divisions that are common to the areas
and for which the data is available. The Governor
shall analyze the data to identify urban and rural
communities in the local area that, collectively, have
high poverty rates and unemployment rates and low
income levels, education levels, housing values, and
housing owner occupancy rates relative to such
rates, levels, and values of the States and counties
in which the communities are located. The Governor
shall distribute the data, and the results of the anal-
ysis, to the chief elected official.
(d) DEVELOPMENT PROCESS.—In developing the
State plan, the Governor shall, at a minimum, solicit the
zations and partnerships and with other social services
programs.
(c) FISCAL AGENT.—The Governor of the State shall
serve as the fiscal agent for the allotment to the State
under section 201.
(d) ADMINISTRATIVE EXPENSES.—Not more than 10
percent of the funds made available to a State through
an allotment made under section 201 may be used for the
administration of the State plan.
SEC. 204. STATE REPORTS.
Each Governor of a State receiving funds under this
title to carry out employment programs in the State shall
annually prepare and submit to the Secretary a report
containing—
(1) the information received by the State from
local reports submitted under section 217; and
(2) information on the costs of the programs to
the State and level of funding provided by the State
for such programs.
Subtitle B—Local Activities
SEC. 211. LOCAL GRANTS.
A State that receives an allotment under section 201
for a fiscal year shall use the funds made available
through the allotment to make grants to local areas, in
order to implement employment programs.
SEC. 212. LOCAL PLANS.
(a) IN GENERAL.—For a local area to be eligible to
receive a grant under section 211 for an employment pro-
gram, the chief elected official of the local area shall sub-
mit an application to the State at such time, in such man-
ner, and containing such information as the State may
require.
(b) CONTENTS.—At a minimum, the application shall
include a local plan containing—
(1) information describing and justifying the lo-
cations at which, and the strategy by which, the
chief elected official will provide community employ-
ment positions in the area through the employment
program in the area, determined in accordance with
subsection (c);
(2) information describing the community em-
ployment projects to be carried out in the local area
through the employment program, the type of work
to be performed by participants in the projects, the
eligible employers that will carry out the projects,
and the compensation and benefits to be provided to
participants in the projects;
(3) information specifying the manner in which
the chief elected official will implement the employ-
ment program, including—
(A) the manner in which the official will
link the employment provided through the pro-
gram with—
(i) activities that provide training and
skill development;
(ii) job readiness activities;
(iii) job placement assistance; and
(iv) support services;
for placement in public or private employment
that is not subsidized with funds made available
under this Act, especially employment in growth
occupations specified by the Secretary and in
occupations with wages above the rates speci-
fied in subclauses (I) and (II) of section
214(a)(1)(A)(ii);
(B) the manner in which the official will—
(i) ensure that the employment pro-
vided through the program will develop the
skills of and provide work experience to
participants in the program, including par-
ticipants who are ages 16 through 25, and
otherwise prepare the participants in the
program for placement in public or private
employment that is not subsidized with
funds made available under this Act, espe-
cially employment in growth occupations
specified by the Secretary and in occupa-
tions with wages above the rates specified
in subclauses (I) and (II) of section
214(a)(1)(A)(ii); and
(ii) provide for the generation of par-
ticipant skill development plans, developed
by the employer of the participant and the
participant, setting forth goals and time
frames for the development of skills by
participants during the period of participa-
tion and after such period;
(C) the manner in which persons des-
ignated by the official will assess the job readi-
ness and skills of applicants for the projects;
(D) the manner in which the employment
provided through the program will increase the
number of positions available to low-skilled
workers, in a local area with a severe shortage
of such positions;
(E) the manner in which the official will
coordinate the employment program with other
Federal and State employment and training
programs, including programs funded through
welfare-to-work grants made under section
403(a)(5) of the Social Security Act (42 U.S.C.
603(a)(5)), with programs providing child care
and transportation services, and with other so-
cial service programs; and
(F) the manner in which the official will
provide community employment through the
employment program;
(4) an assurance that the official will require
each employer who seeks to carry out an employ-
ment project to submit a job description to the offi-
cial for each position in the project, that includes a
description of—
(A) the tasks to be performed by partici-
pants in the position; and
(B) the training to be provided by the em-
ployer to participants in the position; and
(5) a certification that the official has developed
the local plan in a manner that will assure compli-
ance with the requirements of paragraphs (1) and
(2) of section 214(b).
(c) AREAS.—In determining the locations at which,
and the strategy by which, the official will provide employ-
ment positions in the area, the chief elected official shall
use the data described in section 202(c)(2) and shall con-
sider information supplied by public agencies and commu-
nity-based organizations in the local area.
(d) DEVELOPMENT PROCESS.—
(1) IN GENERAL.—In developing the local plan,
the chief elected official shall, at a minimum, solicit
the opinions of organizations and partnerships in the
local area that are responsible for planning, setting
policy for, and administering employment and train-
ing programs described in subsection (b)(3)(E) in
the local area. To the extent possible, the chief elect-
ed official shall arrange for the organizations and
partnerships to develop the local plan, including car-
rying out the responsibilities of the chief elected offi-
cial under this section.
(2) SPECIFIC INVOLVEMENT.—At a minimum,
representatives of community-based organizations,
organizations serving victims of domestic violence,
labor organizations, private employers, and residents
of the local area shall assist in the development of
the plan, especially the selection of the employment
projects and employers described in subsection
(b)(2), the determination of the compensation and
benefits described in subsection (b)(2), and the ef-
forts to make the certification described in sub-
section (b)(5). In addition, in any case in which a
(c) ELIGIBLE EMPLOYERS.—To be eligible to be an
employer in an employment program, an entity shall be
an agency of a unit of general local government, a non-
profit private organization, or another private organiza-
tion.
(d) ELIGIBLE INDIVIDUALS.—
(1) MINIMUM
ELIGIBILITY
REQUIREMENTS.—
To be eligible to be selected to be a participant in
the employment program, an individual shall be a
person who—
(A) has been unemployed for a period of
not less than 15 weeks or is receiving assistance
under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C.
601 et seq.);
(B) is an individual who received an in-
come, or is a member of a family that received
a total family income that, in relation to family
size, does not exceed the poverty line;
(C) resides in an identified community;
(D) has engaged in structured job search
activities for not less than 4 weeks; and
(E) meets such skill requirements for the
position involved as the chief elected official in
the local area shall prescribe.
(2) PRIORITIES.—In determining which of the
eligible individuals described in paragraph (1) shall
be selected to participate in an employment pro-
gram, the chief elected official shall give priority to
veterans.
(3) CONTINUED ELIGIBILITY.—To remain eligi-
ble to participate in the employment program, a par-
ticipant shall participate in structured job search ac-
tivities in accordance with such standards as the
chief elected official shall specify.
(e) NONDUPLICATION.—
(1) IN
GENERAL.—Assistance provided under
this title shall be used only for an employment pro-
gram that is in addition to activities otherwise avail-
able in the local area of such program.
(2) PRIVATE ENTITY.—Assistance made avail-
able under this title shall not be provided to a pri-
vate entity to conduct activities that are the same as
or substantially equivalent to activities provided by
a State or local government agency that serves the
area that such entity resides in, unless the require-
ments of section 214(b) are met.
SEC. 214. REQUIREMENTS AND RESTRICTIONS.
(a) BENEFITS.—
(1) WAGES.—
(A) IN GENERAL.—
(i) RATE
OF
COMPENSATION.—Indi-
viduals participating in community employ-
ment in a program carried out under this
title shall be compensated at the same
rates as similarly situated employees, as
determined by the Secretary, and in ac-
cordance with applicable law.
(ii) MINIMUM
RATE.—The rate of
compensation provided by an employer for
an individual under clause (i) shall not be
less than the highest of—
(I) the rate specified in section
6(a)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 206(a)(1));
(II) the rate specified in applica-
ble State or local minimum wage law;
(III) the prevailing rate of pay
for individuals employed in similar oc-
cupations, as determined by the Sec-
retary, by the same employer; and
(IV) an hourly rate, calculated as
the rate that would enable a partici-
pant to earn 100 percent of the pov-
erty line for a family of 3 if the par-
ticipant were to perform 40 hours per
week of work in the program, for a
full year.
(B) CONSTRUCTION.—The reference in
subparagraph (A)(ii)(I) to section 6(a)(1) of the
Fair Labor Standards Act of 1938—
(i) shall be deemed to be a reference
to section 6(c) of that Act (29 U.S.C.
206(c)) for individuals in the Common-
wealth of Puerto Rico;
(ii) shall be deemed to be a reference
to section 6(a)(3) (29 U.S.C. 206(a)(3)) of
that Act for individuals in American
Samoa (for purposes of subtitle C, if sub-
paragraph (A) applies under that subtitle);
and
(iii) shall not be applicable for individ-
uals in other territorial jurisdictions in
which section 6 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206) does not
apply (for purposes of subtitle C, if sub-
paragraph (A) applies under that subtitle).
(2) BENEFITS.—
(A) HEALTH INSURANCE.—
(i) IN GENERAL.—A State involved in
an employment program carried out under
this title shall ensure the provision of a
basic health care policy for each partici-
pant who is employed through the pro-
gram, if the participant is not otherwise
covered by a health care policy. The State
may retain funds from a grant to a local
area under section 211 to ensure the provi-
sion of such policies for such participants
in an employment program in the local
area. The Secretary shall establish mini-
mum standards that all plans shall meet in
order to qualify for payment under this
title, any circumstances in which an alter-
native health care policy may be sub-
stituted for the basic health care policy,
and mechanisms to prohibit a participant
from dropping existing coverage (in exist-
ence on the date the participant first ap-
plies for the program).
(ii) OPTION.—A State involved in an
employment program carried out under
this title may elect to provide from its own
funds a health care policy for participants
that does not meet all of the standards es-
tablished by the Secretary if the fair mar-
ket value of such policy is equal to or
greater than the fair market value of a
plan that meets the minimum standards
established by the Secretary, and is con-
sistent with other applicable laws.
(B) COVERAGE OF CERTAIN EMPLOYMENT-
RELATED TAXES.—To the extent an employer
involved in an employment program carried out
under this title is subject to the taxes imposed
on an employer under sections 3111 and 3301
of the Internal Revenue Code of 1986, and
taxes imposed on an employer under a work-
men’s compensation act, for a participant, the
assistance provided to an employer for the par-
ticipant under the program shall include an
amount equal to the amount of such taxes. For
purposes of section 3309(b)(5) of the Internal
Revenue Code of 1986, employment programs
carried out under this title shall not be consid-
ered to be programs described in such section,
and participants in employment programs car-
ried out under this title shall not be considered
to be individuals described in such section.