I 
112TH CONGRESS 
2D SESSION 
H. R. 6427 
To amend title IV of the Social Security Act to create a competitive self- 
sustainable social services grant program to provide workforce develop-
ment opportunities and training to people with barriers to employment 
under the program of block grants to States for temporary assistance 
for needy families, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2012 
Mr. SMITH of Washington introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committee 
on Education and the Workforce, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend title IV of the Social Security Act to create 
a competitive self-sustainable social services grant pro-
gram to provide workforce development opportunities and 
training to people with barriers to employment under 
the program of block grants to States for temporary 
assistance for needy families, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Capitalizing Workforce 
Development Act of 2012’’. 
SEC. 2. JOB TRAINING RESOURCES GRANT PROGRAM. 
(a) IN GENERAL.—Section 403(a) of the Social Secu-
rity Act (42 U.S.C. 603(a)) is amended by adding at the 
end the following : 
‘‘(6) JOB TRAINING RESOURCES GRANTS.— 
‘‘(A) USE OF FUNDS.—The Secretary shall 
use the funds made available under subpara-
graph (F) to award grants to eligible applicants 
on a competitive basis for the purpose of sup-
porting the purchase, renovation, construction, 
or lease and improvement of real property to be 
used by qualified self-sustaining job programs. 
‘‘(B) QUALIFIED
SELF-SUSTAINING
JOB 
PROGRAM.—For purposes of this paragraph, 
the term ‘qualified self-sustaining job program’ 
means a program which— 
‘‘(i) provides job training, job place-
ment, or other employment-related services 
to individuals with employment challenges; 
and 
‘‘(ii) except for funds made available 
under this paragraph for the expenses de-
scribed in subparagraph (A), does not re-
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quire Federal funds for programmatic or 
administrative expenses relating to the pro-
vision of the services described in clause 
(i). 
Nothing in this subparagraph shall prohibit any 
applicant or grantee under this paragraph from 
participating in any other Federal program. 
‘‘(C) 
PRIORITY.—In 
awarding 
grants 
under this paragraph, the Secretary shall give 
priority to eligible applicants that demonstrate 
significant successful experience in establishing 
qualified self-sustaining job programs or, in the 
case of an eligible applicant described in sub-
paragraph (D)(i), that include among their 
membership one or more local organizations 
that have been awarded a grant under section 
413(h)(3)(A). 
‘‘(D) ELIGIBLE APPLICANT.—For purposes 
of this paragraph, the term ‘eligible applicant’ 
means— 
‘‘(i) a national organization which is 
described in section 501(c)(3) of the Inter-
nal Revenue Code of 1986 and is exempt 
from tax under section 501(a) of such 
Code, the mission of which is to provide 
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employment-related services to individuals 
with employment challenges; 
‘‘(ii) a State or political subdivision 
thereof; or 
‘‘(iii) an Indian tribe or tribal organi-
zation. 
‘‘(E) GRANT CONDITIONS AND REQUIRE-
MENTS.— 
‘‘(i) JOB PLACEMENT PERFORMANCE 
GOALS.—Each award of a grant under this 
paragraph shall be conditioned upon the 
establishment by the Secretary, in coordi-
nation with the grantee, of— 
‘‘(I) the job placement perform-
ance goals for each qualified self-sus-
taining job program operated by the 
grantee that will receive the grant 
funds (or the subgrantee under clause 
(iii), if any); and 
‘‘(II) the performance assessment 
dates (not earlier than 1 year after 
the date the grant is awarded to the 
grantee) on which the achievement of 
such goals will be measured by the 
Secretary. 
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‘‘(ii) PROTECTION
OF
FEDERAL
IN-
TEREST.—For all real property purchased, 
renovated, constructed, or improved using 
funds made available under this para-
graph, the Secretary shall ensure the pro-
tection of the Federal Government’s inter-
est in such real property in such manner 
as may be prescribed by the Secretary. 
‘‘(iii) SUBAWARDS.—An eligible appli-
cant described in subparagraph (D)(i) that 
receives funds made available under this 
paragraph shall distribute such funds 
among its local member organizations to 
carry out the purposes described in sub-
paragraph (A) with respect to qualified 
self-sustaining job programs. 
‘‘(F) APPROPRIATION.—Out of any money 
in the Treasury not otherwise appropriated, 
there are appropriated $200,000,000 for grants 
under this paragraph for fiscal year 2013, to 
remain available through fiscal year 2016.’’. 
(b) RECAPTURE PENALTY.— 
(1) IN GENERAL.—Section 409(a) of the Social 
Security Act (42 U.S.C. 609(a)) is amended by add-
ing at the end the following: 
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‘‘(17) PENALTY FOR FAILURE TO MEET JOB 
PLACEMENT
PERFORMANCE
GOALS
OF
QUALIFIED 
SELF-SUSTAINING JOB PROGRAM.— 
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a recipient of funds under section 
403(a)(6) has failed to meet the job placement 
performance goals established under section 
403(a)(6)(E)(i) as of any performance assess-
ment 
date 
established 
under 
section 
403(a)(6)(E)(i)(II), the Secretary shall require 
repayment of such funds to the Treasury in a 
proportional amount to the degree of such fail-
ure. 
‘‘(B) TIMING OF REPAYMENT.—The pay-
ments required by subparagraph (A) shall be 
made over the 10-fiscal-year period beginning 
with the date the Secretary makes the deter-
mination under subparagraph (A). No interest 
shall accrue with respect to such payments. 
‘‘(C) ELECTION
TO
COMPLY.—With the 
consent of the Secretary, in lieu of the pay-
ments required by subparagraph (A), the recipi-
ent of funds may elect to come into compliance 
with the job placement performance goals es-
tablished under section 403(a)(6)(E)(i). Such 
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compliance shall be demonstrated in such man-
ner and in such time as the Secretary shall pre-
scribe. 
‘‘(D) FAILURE BY STATE.—In the case of 
a State that is subject to a penalty under this 
paragraph, in lieu of the payments required by 
subparagraph (A), the Secretary may reduce 
the grant payable to such State under section 
403(a)(1) in the same amount and over the 
same 10-fiscal-year period that such payments 
would have been made. 
‘‘(E) NONAPPLICABILITY OF STATE PEN-
ALTY
LIMITATIONS.—Subsections (c) and (d) 
shall not apply in the case of any penalty under 
this paragraph, except for a penalty with re-
spect to which reductions are made under sub-
paragraph (D).’’. 
(2) EXCLUSION
FROM
STATE
REASONABLE 
CAUSE EXCEPTION.—Section 409(b)(2) of the Social 
Security Act (42 U.S.C. 609(b)(2)) is amended by 
striking ‘‘or (13)’’ and inserting ‘‘(13), or (17)’’. 
øSEC. 3. OFFSET TO ENSURE PAYGO COMPLIANCE. 
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