I
103D CONGRESS
2D SESSION
H. R. 3736
To provide incentives for job apprenticeship programs, enhance educational
opportunities, and study the feasibility of consolidating the administration
of all Federal dislocated worker programs.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1994
Mr. ANDREWS of Texas introduced the following bill; which was referred joint-
ly to the Committees on Education and Labor, Ways and Means, and
Post Office and Civil Service
A BILL
To provide incentives for job apprenticeship programs, en-
hance educational opportunities, and study the feasibility
of consolidating the administration of all Federal dis-
located worker programs.
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 ‘‘Workforce Education
Act of 1994’’.
TITLE I—TARGETED JOBS CRED-
IT 
FOR 
SCHOOL-TO-WORK
PROGRAMS
SEC. 101. TARGETED JOBS CREDIT FOR PARTICIPANTS IN
APPROVED SCHOOL-TO-WORK PROGRAMS.
(a) IN
GENERAL.—Subparagraph (I) of section
51(d)(1) of the Internal Revenue Code of 1986 (defining
members of targeted group) is amended to read as follows:
‘‘(I) a qualified participant in an approved
school-to-work program, or’’.
(b) QUALIFIED
PARTICIPANT
IN
AN
APPROVED
SCHOOL-TO-WORK PROGRAM.—Paragraph (10) of section
51(d) of such Code is amended to read as follows:
‘‘(10) QUALIFIED
PARTICIPANT
IN
AN
AP-
PROVED SCHOOL-TO-WORK PROGRAM DEFINED.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the term ‘qualified
participant in an approved school-to-work pro-
gram’ means any individual who is certified
under an approved school-to-work program as—
‘‘(i) having attained age 16 but not
having attained age 23, and
‘‘(ii) being enrolled in and making
satisfactory progress in completing such
approved school-to-work program.
approved school-to-work program shall be equal to
40 percent of the lesser of—
‘‘(A) the wages paid or incurred by the em-
ployer during such taxable year to such quali-
fied participant, or
‘‘(B) $6,000 reduced by the amount of
wages taken into account by the employer for
any prior taxable year with respect to such
qualified participant.
‘‘(3) EARLY TERMINATION OF EMPLOYMENT.—
‘‘(A) IN GENERAL.—If the employment of
any qualified participant in an approved school-
to-work program is terminated by the taxpayer
before the day 1 year after the day on which
such qualified participant began work for the
employer—
‘‘(i) no wages with respect to such
participant shall be taken into account
under this section for the taxable year in
which such employment is terminated, and
‘‘(ii) the tax under this chapter for
the taxable year in which such employment
is terminated shall be increased by the ag-
gregate credits (if any) allowed under sec-
tion 38 for prior taxable years by reason of
wages taken into account with respect to
such qualified participant.
‘‘(B) CERTAIN
EXCEPTIONS
AND
OTHER
RULES
MADE
APPLICABLE.—Rules similar to
the rules of paragraphs (2), (3), and (4) of sec-
tion 45A(d) shall apply for purposes of sub-
paragraph (A).
‘‘(m) OVERALL LIMITATION ON APPROVED SCHOOL-
TO-WORK PROGRAM PARTICIPANTS.—
‘‘(1) IN GENERAL.—For purposes of subsection
(d)(10), the national school-to-work program limita-
tion—
‘‘(A) for calendar year 1995 is 100,000,
‘‘(B) for calendar year 1996 is 150,000,
‘‘(C) for calendar year 1997 is 175,000,
and
‘‘(D) for calendar year 1998 and any sub-
sequent calendar year is 200,000.
‘‘(2) ALLOCATION
TO
STATES.—The national
school-to-work program limitation for any calendar
year shall be allocated among the States in propor-
tion to the number of their eligible participants that
are estimated to be served in approved school-to-
work programs for that year. Such estimates shall
be published by the Secretary of Labor acting
through the Bureau of Job Apprenticeship before
the beginning of the calendar year to which the allo-
cation applies.
‘‘(3) ALLOCATION
TO
APPROVED
SCHOOL-TO-
WORK
PROGRAMS.—The portion of the national
school-to-work program limitation for any calendar
year which is allocated to any State shall be allo-
cated among the approved school-to-work programs
in such State in such manner as the Secretary of
Labor acting through the Bureau of Job Apprentice-
ship shall prescribe.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply in the case of individuals who begin
work for the employer after December 31, 1994.
TITLE 
II—AUTHORIZATION 
OF
APPROPRIATIONS 
FOR 
THE
NATIONAL AND COMMUNITY
SERVICE ACT OF 1990
SEC. 201. AUTHORIZATION OF APPROPRIATIONS FOR THE
NATIONAL SERVICE TRUST PROGRAM, NA-
TIONAL 
SERVICE 
EDUCATIONAL 
AWARDS,
AND QUALITY AND INNOVATION ACTIVITIES.
Section 501(a)(2)(A) of the National and Community
Service Act of 1990 (42 U.S.C. 12681(a)(2)(A)) is amend-
ed by striking ‘‘$500,000,000 for fiscal year 1995, and
$700,000,000 for fiscal year 1996’’ and inserting
‘‘$1,000,000,000 for fiscal year 1995, $1,400,000,000 for
fiscal year 1996, and $3,000,000,000 for each of the fiscal
years 1997 through 1999’’.
SEC. 202. AUTHORIZATION OF APPROPRIATIONS FOR CIVIL-
IAN COMMUNITY CORPS DEMONSTRATION
PROGRAM.
Section 501(a)(3) of the National and Community
Service Act of 1990 (42 U.S.C. 12681(a)(3)) is amended
by striking ‘‘through 1996’’ and inserting ‘‘through
1999’’.
SEC. 203. AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATION OF THE NATIONAL AND COM-
MUNITY SERVICE ACT OF 1990.
Section 501(a)(4)(A) of the National and Community
Service Act of 1990 (42 U.S.C. 12681(a)(4)(A)) is amend-
ed by striking ‘‘$60,000,000 for fiscal year 1995, and
$70,000,000 for fiscal year 1996’’ and inserting
‘‘$80,000,000 for fiscal year 1995, $90,000,000 for fiscal
year 1996, and $100,000,000 for each of the fiscal years
1997 through 1999’’.
TITLE III—STUDY AND REPORT
RELATING 
TO 
CONSOLIDA-
TION 
OF 
FEDERAL 
DIS-
LOCATED 
WORKER 
PRO-
GRAMS
SEC. 301. STUDY.
(a) IN GENERAL.—The Secretary of Labor shall con-
duct a study on the feasibility of consolidating the admin-
istration of the Federal dislocated worker programs de-
scribed in subsection (b) into a single comprehensive pro-
gram, the goals of which are—
(1) to speed up the process of determining the
eligibility of individuals for training and related serv-
ices under such programs;
(2) to give such individuals increased flexibility
in how they receive and use such training and relat-
ed services; and
(3) to reduce the overlap in administration
among such programs and to provide more efficient
service under such programs by establishing local
common points of access for such training and relat-
ed services.
(b) FEDERAL DISLOCATED WORKER PROGRAMS.—
The Federal dislocated worker programs described in this
subsection are—
(1) programs under title III of the Job Train-
ing Partnership Act (29 U.S.C. 1651 et seq.), in-
cluding—
(A) the defense conversion adjustment pro-
gram under section 325 of such Act (29 U.S.C.
1662d);
(B) the defense diversification program
under section 325A of such Act (29 U.S.C.
1662d-1); and
(C) the clean air employment transition as-
sistance program under section 326 of such Act
(29 U.S.C. 1662e); and
(2) the trade adjustment assistance program
under chapter 2 of title II of the Trade Act of 1974
(19 U.S.C. 2271 et seq.).
SEC. 302. REPORT.
Not later than 1 year after the date of the enactment
of this Act, the Secretary of Labor shall submit to the
Congress a report containing—
(1) the results of the study carried out under
section 301; and
(2) if appropriate, recommendations for legisla-
tion to achieve the consolidation of the administra-
tion of the Federal dislocated worker programs de-
scribed in such section.
TITLE IV—FINANCING
PROVISIONS
SEC. 401. REQUIRING CERTAIN AGENCIES TO PREFUND
GOVERNMENT HEALTH BENEFITS CONTRIBU-
TIONS FOR THEIR ANNUITANTS.
(a) DEFINITIONS.—For the purpose of this section—
(1) the term ‘‘agency’’ means any agency or
other instrumentality within the executive branch of
the Government, the receipts and disbursements of
which are not generally included in the totals of the
budget of the United States Government submitted
by the President;
(2) the term ‘‘health benefits plan’’ means, with
respect to an agency, a health benefits plan, estab-
lished by or under Federal law, in which employees
or annuitants of such agency may participate;
(3) the term ‘‘health–benefits coverage’’ means
coverage under a health benefits plan’’;
(4) an individual shall be considered to be an
‘‘annuitant of an agency’’ if such individual is enti-
tled to an annuity, under a retirement system estab-
lished by or under Federal law, by virtue of—
(A) such individual’s service with, and sep-
aration from, such agency; or
(B) being the survivor of an annuitant
under subparagraph (A) or of an individual who
died while employed by such agency; and
(5) the term ‘‘Office’’ means the Office of Per-
sonnel Management.
(b) PREFUNDING REQUIREMENT.—
(1) IN GENERAL.—Effective as of October 1,
1994, each agency (or February 1, 1995, in the case
of the agency with the greatest number of employ-
ees, as determined by the Office) shall be required
to prepay the Government contributions which are
or will be required in connection with providing
health–benefits coverage for annuitants of such
agency.
(2) REGULATIONS.—The Office shall prescribe
such regulations as may be necessary to carry out
this section. The regulations shall be designed to en-
sure at least the following:
(A) Amounts paid by each agency shall be
sufficient to cover the amounts which would
otherwise be payable by such agency (on a
‘‘pay–as–you–go’’ basis), on or after the appli-
cable effective date under paragraph (1), on be-
half of—
(i) individuals who are annuitants of
the agency as of such effective date; and
(ii) individuals who are employed by
the agency as of such effective date, or
who become employed by the agency after
such effective date, after such individuals
have become annuitants of the agency (in-
cluding their survivors).
(B)(i) For purposes of determining any
amounts payable by an agency—
(I) this section shall be treated as if
it had taken effect at the beginning of the
20–year period which ends on the effective
date applicable under paragraph (1) with
respect to such agency; and
(II) in addition to any amounts pay-
able under subparagraph (A), each agency
shall also be responsible for paying any
amounts for which it would have been re-
sponsible, with respect to the 20–year pe-
riod described in subclause (I), in connec-
tion with any individuals who are annu-
itants or employees of the agency as of the
applicable effective date under paragraph
(1).
(ii) Any amounts payable under this sub-
paragraph for periods preceding the applicable
effective date under paragraph (1) shall be pay-
able in equal installments over the 20–year pe-
riod beginning on such effective date.
(c) FASB STANDARDS.—Regulations under sub-
section (b) shall be in conformance with the provisions of
standard 106 of the Financial Accounting Standards
Board, issued in December 1990.
(d) CLARIFICATION.—Nothing in this section shall be
considered to permit or require duplicative payments on
behalf of any individuals.
(e) DRAFT LEGISLATION.—The Office shall prepare
and submit to Congress any draft legislation which may
be necessary in order to carry out this section.
SEC. 402. RESCISSION OF FUNDS FOR TRAVEL ACCOUNTS.
(a) IN GENERAL.—Of the funds made available in
any appropriations Act for fiscal year 1994 to any execu-
tive department or agency, or any entity in the legislative
branch, for purposes of official travel, 15 percent is re-
scinded. The Director of the Office of Management and
Budget shall allocate such rescission among the appro-
priate accounts, and shall submit to the Congress a report
setting forth such allocation.
(b) EXCEPTIONS.—Subsection (a) shall not apply
to—
(1) the Department of Defense, the Department
of Justice, the Department of State, the Department
of the Treasury, the Department of Veterans Af-
fairs, or any agency or office within any such de-
partment; or
(2) the Office of Personnel Management in car-
rying out its responsibilities under the Voting Rights
Act of 1965.
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