SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Transformation to 
Competitive Integrated Employment Act’’. 
SEC. 2. TABLE OF CONTENTS. 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Purposes. 
TITLE I—COMPETITIVE INTEGRATED EMPLOYMENT 
TRANSFORMATION GRANT PROGRAMS 
Sec. 101. Program authorized. 
Sec. 102. State grant program. 
Sec. 103. Certificate holder grant program. 
TITLE II—PHASE OUT OF SPECIAL CERTIFICATES UNDER 
SECTION 14(C) OF THE FAIR LABOR STANDARDS ACT OF 1938 
Sec. 201. Transition to fair wages for individuals with disabilities. 
Sec. 202. Prohibition on new special certificates; sunset. 
TITLE III—TECHNICAL ASSISTANCE AND DISSEMINATION 
Sec. 301. Technical Assistance and dissemination. 
TITLE IV—REPORTING AND EVALUATION 
Sec. 401. Impact evaluation and reporting. 
Sec. 402. Wage and hour reports. 
TITLE V—GENERAL PROVISIONS 
Sec. 501. Definitions. 
Sec. 502. Authorization of appropriations. 
SEC. 3. PURPOSES. 
The purposes of this Act are to— 
(1) assist employers with special certificates 
issued under section 14(c) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 214(c)) to transform 
their business and program operations to models 
that support individuals with disabilities to find and 
retain work in competitive integrated employment; 
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(2) ensure individuals with disabilities, families 
of such individuals, State and local governments, 
and other stakeholders are involved in the trans-
formations described in paragraph (1); 
(3) ensure individuals employed in programs 
using such special certificates transition to competi-
tive integrated employment positions and, as needed, 
to integrated services that support them in their 
homes and in community settings; 
(4) identify models and processes for shifting 
business and program models from such special cer-
tificates to competitive integrated employment mod-
els and integrated community participation and 
wraparound services, and to share that information 
with other such special certificate holders, State and 
local entities, and other service providers for individ-
uals with disabilities; and 
(5) support States and local governments as 
they revise and implement their Olmstead plans and 
local plans, respectively, in order to improve com-
petitive integrated employment outcomes for individ-
uals with disabilities through all State workforce de-
velopment systems. 
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TITLE 
I—COMPETITIVE 
INTE-
GRATED 
EMPLOYMENT 
TRANSFORMATION 
GRANT 
PROGRAMS 
SEC. 101. PROGRAM AUTHORIZED. 
From the amounts appropriated to carry out this 
title, the Secretary of Labor shall award grants under sec-
tions 102 and 103, on a competitive basis, to States and 
eligible entities to assist employers who were issued special 
certificates in transforming their business and program 
models from providing employment using such special cer-
tificates to business and program models that employ and 
support individuals with disabilities by— 
(1) providing competitive integrated employ-
ment, including by compensating all employees of 
the employer at a rate that is— 
(A) not less than the higher of the rate 
specified in section 6(a)(1) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206(a)(1)) 
or the rate specified in the applicable State or 
local minimum wage law; and 
(B) not less than the customary rate paid 
by the employer for the same or similar work 
performed by other employees who are not indi-
viduals with disabilities, and who are similarly 
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situated in similar occupations by the same em-
ployer and who have similar training, experi-
ence, and skills; 
(2) assisting individuals with disabilities who 
were employed by the employer in finding and re-
taining work in competitive integrated employment, 
which work may be with the employer after such 
transformation or in another competitive integrated 
employment setting; 
(3) providing integrated community participa-
tion and wraparound services for individuals with 
disabilities; and 
(4) ensuring all such services and other non- 
employment services offered under, or with assist-
ance from, such a grant comply with the require-
ments for home and community-based services under 
the Home and Community-Based Services (HCBS) 
final rule published on January 16, 2014 (79 Fed. 
Reg. 2948), or a successor rule. 
SEC. 102. STATE GRANT PROGRAM. 
(a) APPLICATION.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under this section, a State shall submit an ap-
plication to the Secretary at such time, in such man-
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ner, and including such information as the Secretary 
may reasonably require. 
(2) CONTENTS.—Each application submitted 
under paragraph (1) shall include— 
(A) a description of the status of the em-
ployers in the State providing employment 
using special certificates, including— 
(i) the number of employers in the 
State using special certificates to employ 
and pay individuals with disabilities; 
(ii) the number of employers described 
in clause (i) that also employ individuals 
with disabilities in competitive integrated 
employment, which shall include employers 
providing such employment in combination 
with integrated services; 
(iii) the number of employees em-
ployed 
under 
a 
special 
certificate, 
disaggregated by— 
(I) employer; and 
(II) demographic characteristics, 
including gender, race, ethnicity, and 
type of disability, unless indicating 
such characteristics would disclose 
personally identifiable information; 
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(iv) the average, median, minimum, 
and maximum number of hours such em-
ployees work per week, disaggregated by 
employer, and reported for the State as a 
whole; and 
(v) the average, median, minimum, 
and maximum hourly wage for such em-
ployees, disaggregated by employer, and 
reported for the State as a whole; 
(B) a description of the activities of the 
State with respect to competitive integrated em-
ployment for individuals with disabilities, in-
cluding, as applicable— 
(i) a copy of the State plan for car-
rying out the Employment First initiative; 
(ii) a copy of the Olmstead plan of the 
State; 
(iii) a description of activities related 
to the development and promotion of 
ABLE accounts; and 
(iv) a description of the medical as-
sistance provided by the State through a 
Medicaid buy-in eligibility pathway under 
subclause (XV) or (XVI) of section 
1902(a)(10)(A)(ii) of the Social Security 
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Act (42 U.S.C. 1396a(a)(10)(A)(ii)), in-
cluding any premiums or other cost shar-
ing imposed on individuals who enroll in 
the State Medicaid program through such 
a pathway; 
(C) a description of activities to be funded 
under the grant, and the goals of such activi-
ties, including— 
(i) the process to be used to identify 
each employer in the State that will trans-
form its business and program models 
from employing individuals with disabilities 
using special certificates to employing indi-
viduals with disabilities in competitive inte-
grated employment settings, or a setting 
involving a combination of competitive in-
tegrated employment and integrated serv-
ices; 
(ii) the number of such employers in 
the State that will carry out a trans-
formation described in clause (i); 
(iii) the service delivery infrastructure 
that will be implemented in the State to 
support individuals with disabilities who 
have been employed under special certifi-
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cates through such a transformation, in-
cluding 
providing 
enhanced 
integrated 
services to support individuals with the 
most significant disabilities; 
(iv) a description of the process to re-
cruit and engage Federal, State, and local 
governments and nonprofit and private em-
ployers to hire individuals with disabilities 
into competitive integrated employment 
who have been employed under special cer-
tificates; 
(v) the competitive integrated employ-
ment and integrated services that will be 
implemented in the State to support such 
individuals; 
(vi) a timeline for phasing out employ-
ment using special certificates in the State, 
which shall not extend past the date on 
which the legal effect of such certificates 
expires under section 14(c)(7) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 
214(c)(7)), as added by title II; 
(vii) a timeline for the expansion of 
employers that will provide competitive in-
tegrated employment, or a combination of 
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competitive integrated employment and in-
tegrated services, to individuals with dis-
abilities who have been employed by such 
employers under special certificates; 
(viii) a description of the expanded 
competitive integrated employment and in-
tegrated services to be provided to such in-
dividuals as a result of transformations de-
scribed in clause (i); and 
(ix) a description of the process to be 
used to engage stakeholders in such trans-
formations; 
(D) a description of how the activities 
under the grant will coordinate and align Fed-
eral, State, and local programs, agencies, and 
funding in the transformations described in 
subparagraph (C)(i); 
(E) a description of the State’s evaluation 
plan to determine the social and economic im-
pact of the grant, including the impact (as 
measured throughout the transformation and 
the 2-year period after the State has phased out 
employment using special certificates) on— 
(i) the employment status of individ-
uals with disabilities in the State, including 
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the number of hours worked, average 
wages, and job satisfaction, of such indi-
viduals; and 
(ii) changes in provider capacity to 
support competitive integrated employment 
and integrated services; 
(F) assurances that— 
(i) the activities carried out under the 
grant will result in each employer in the 
State that provides employment using spe-
cial certificates on the date of enactment of 
this Act transforming as described in sub-
paragraph (C)(i); 
(ii) individuals with the most signifi-
cant disabilities, including intellectual and 
developmental disabilities, who will be af-
fected by such a transformation will be 
given priority in receiving the necessary 
competitive integrated employment sup-
ports and integrated services to succeed 
during and after such a transformation; 
(iii) each individual in the State who 
is employed under a special certificate will, 
as a result of such a transformation, be 
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employed in competitive integrated employ-
ment; 
(iv) at a minimum, the State agencies 
responsible for developmental disability 
services, Medicaid, education, vocational 
rehabilitation, 
mental 
health 
services, 
transportation, and workforce development 
agree to be partners in the goals of the 
grant; 
(v) until the date that is 2 years after 
the legal effect of special certificates ex-
pires under section 14(c)(7) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 
214(c)(7)), as added by title II, the State 
will comply with requirements of the Sec-
retary with respect to the collection of 
data, and will require employers providing 
employment under special certificates in 
the State to comply with such require-
ments; 
(vi) the State will cooperate with the 
evaluation under title IV by providing all 
data required and allow the evaluation of 
activities under the grant; 
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(vii) the State will establish an advi-
sory council described in paragraph (3) to 
monitor and guide the process of trans-
forming business and program models of 
employers in the State as described in sub-
paragraph (C)(i); 
(viii) the State will cooperate with the 
nonprofit entity carrying out technical as-
sistance and dissemination activities under 
title III; 
(ix) all integrated services and non- 
employment services offered by employers 
in the State will comply with— 
(I) the requirements for home 
and community-based services under 
the 
Home 
and 
Community-Based 
Services (HCBS) final rule published 
on January 16, 2014 (79 Fed. Reg. 
2948), or a successor rule; 
(II) the holding of the Olmstead 
decision; and 
(III) the Americans with Disabil-
ities Act of 1990 (42 U.S.C. 12101 et 
seq.); and 
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