I 
111TH CONGRESS 
1ST SESSION H. R. 4299 
To authorize a capitalization of self-sustainable social services grant program 
to provide workforce development opportunities and training to people 
with barriers to employment. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2009 
Mr. SMITH of Washington (for himself, Mr. GRIJALVA, Ms. WATSON, Mr. 
CARNAHAN, Ms. CLARKE, Mr. DICKS, Mr. BUCHANAN, and Mr. BRALEY 
of Iowa) introduced the following bill; which was referred to the Com-
mittee on Education and Labor 
A BILL 
To authorize a capitalization of self-sustainable social serv-
ices grant program to provide workforce development 
opportunities and training to people with barriers to 
employment. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CAPITALIZATION GRANTS TO BUILD JOBS. 
(a) IN GENERAL.—The Secretary shall award grants 
in accordance with this section for projects proposed by 
eligible applicants who— 
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(1) demonstrate the potential effectiveness of 
the proposed project to develop capitalization proce-
dures for the creation of jobs and the delivery of 
self-sustainable social services to people with barriers 
to employment; and 
(2) provide evidence of the ability of the eligible 
applicant to coordinate with community colleges and/ 
or other organizations at the State and local level. 
(b) DEFINITIONS.—In this section— 
(1) the term ‘‘capitalization procedures’’ means 
the use of capital funding to build, renovate, provide 
leasehold improvements, or purchase real property; 
(2) the term ‘‘eligible applicant’’ means a non-
profit organization whose mission is to provide work-
force development opportunities and training to peo-
ple with barriers to employment, a local workforce 
investment board established under section 117 of 
the Workforce Investment Act of 1998 (29 U.S.C. 
2832), a State, a political subdivision of a State, or 
an Indian tribe; 
(3) the term ‘‘Secretary’’ means the Secretary 
of Labor; and 
(4) the term ‘‘self-sustainable social services’’ 
means education, training, and career services for 
people with barriers to employment that are sus-
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tained by the independent business model of the 
grantee and do not require federal funding for basic 
programmatic expenses, although this provision does 
not preclude applicants from participating in other 
Federal programs. 
(c) PRIORITY.—Applicants demonstrating prior expe-
rience using capitalization to build sustainable job training 
and job creation projects will be given priority in the first 
round of grants, including organizations awarded grants 
under section 413(h)(3)(A) of the Social Security Act and 
organizations that are similarly situated in other regions 
that also have the capacity to replicate the model imple-
mented under section 413(h)(3)(A). 
(d) SINGLE GRANTEE.—The Secretary may choose to 
grant funds to a single national organization to distribute 
funds among its member local organizations if the national 
organization includes in its membership local organiza-
tions that were previously awarded grants under section 
413(h)(3)(A) and those prior grantees agree to provide 
technical assistance to new grantees. 
(e) APPLICATION.—Each eligible applicant desiring a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied 
by such information as the Secretary may require. 
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(f) ASSESSMENTS AND REPORTS BY GRANTEES.—An 
eligible applicant that receives a grant under this section 
shall assess and report on the outcomes of self-sustainable 
social services that result from newly capitalized entities, 
including the identity of each service operator, the number 
of jobs created, demographic information about service re-
cipients, including education level, literacy level, prior 
work experience and identified barriers to employment, the 
nature of education, training, or other services received, 
the reason for leaving the program, and outcomes related 
to the placement of the service recipients in an unsub-
sidized job, including 9-month employment retention, 
wage at placement, benefits, and earnings progression, as 
specified by the Secretary. 
(g) EVALUATIONS.— 
(1) IN GENERAL.—The Secretary is authorized 
to conduct evaluation and research, either directly or 
through grants or contracts, to determine the effec-
tiveness of capitalization in providing workforce de-
velopment opportunities and training to people with 
barriers to employment after the grantee has had 3 
years to capitalize and build or expand its programs. 
(2) RESERVATION OF FUNDS.—Of the amount 
appropriated for a fiscal year, an amount equal to 
1 percent of such amount for each such fiscal year 
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