I 
108TH CONGRESS 
1ST SESSION H. R. 3560
To amend the temporary assistance to needy families program under part 
A of title IV of the Social Security Act to provide grants for transitional 
jobs programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 20, 2003
Ms. SCHAKOWSKY (for herself, Mr. CONYERS, Ms. MCCOLLUM, Mr. TOWNS, 
Mr. ACEVEDO-VILA´, Ms. LEE, Mrs. CHRISTENSEN, Mr. EMANUEL, Mr. 
LIPINSKI, Mr. PALLONE, Ms. MILLENDER-MCDONALD, Mrs. JONES of 
Ohio, and Mr. CUMMINGS) introduced the following bill; which was re-
ferred to the Committee on Ways and Means, and in addition to the 
Committee on Education and the Workforce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the temporary assistance to needy families pro-
gram under part A of title IV of the Social Security 
Act to provide grants for transitional jobs programs, 
and for other purposes.
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 ‘‘Business Links Act 
of 2003’’.
SEC. 2. TRANSITIONAL JOBS GRANTS. 
(a) IN GENERAL.—Section 403(a)(4) of the Social 
Security Act (42 U.S.C. 603(a)(4)) is amended to read 
as follows: 
‘‘(4) INNOVATIVE BUSINESS LINK PARTNERSHIP 
GRANTS.—
‘‘(A) IN GENERAL.—The Secretary and the 
Secretary of Labor (in this paragraph referred 
to as the ‘Secretaries’) jointly shall award 
grants in accordance with this paragraph for 
projects proposed by eligible applicants based 
on the following: 
‘‘(i) The potential effectiveness of the 
proposed project in carrying out the activi-
ties described in subparagraph (E). 
‘‘(ii) Evidence of the ability of the eli-
gible applicant to leverage private, State, 
and local resources. 
‘‘(iii) Evidence of the ability of the eli-
gible applicant to coordinate with other or-
ganizations at the State and local level. 
‘‘(B) DEFINITION
OF
ELIGIBLE
APPLI-
CANT.—
‘‘(i) IN GENERAL.—In this paragraph, 
the term ‘eligible applicant’ means a non-
profit organization, a local workforce in-
vestment 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. 
‘‘(ii) GRANTS TO PROMOTE BUSINESS 
LINKAGES.—
‘‘(I) ADDITIONAL
ELIGIBLE
AP-
PLICANT.—Only 
for 
purposes 
of 
grants to carry out the activities de-
scribed in subparagraph (E)(i), the 
term ‘eligible applicant’ includes an 
employer. 
‘‘(II) 
ADDITIONAL
REQUIRE-
MENT.—In order to qualify as an eli-
gible applicant for purposes of sub-
paragraph (E)(i), the applicant must 
provide evidence that the application 
has been developed by and will be im-
plemented by a local or regional con-
sortium that includes, at minimum, 
employers or employer associations, 
education and training providers, and 
local labor organizations in the local-
ity or region that represent workers in 
fields or occupations in which employ-
ment, training, or a transitional job 
will be provided using grant funds 
under this paragraph, in consultation 
with social service providers that work 
with low-income families or individ-
uals with disabilities. 
‘‘(C) REQUIREMENTS.—
‘‘(i) 
IN
GENERAL.—In 
awarding 
grants under this paragraph, the Secre-
taries shall—
‘‘(I) consider the needs of rural 
areas and cities with large concentra-
tions of residents with an income that 
is less than 150 percent of the poverty 
line; and 
‘‘(II) ensure that—
‘‘(aa) all of the funds made 
available under this paragraph 
(other than funds reserved for 
use by the Secretaries under sub-
paragraph (K)) shall be used for 
activities described in subpara-
graph (E); 
‘‘(bb) not less than 45 per-
cent of the funds made available
under this paragraph (other than 
funds so reserved) shall be used 
for activities described in sub-
paragraph (E)(i); and 
‘‘(cc) not less than 45 per-
cent of the funds made available 
under this paragraph (other than 
funds so reserved) shall be used 
for the activities described in 
subparagraph (E)(ii). 
‘‘(ii) 
CONTINUATION
OF
AVAIL-
ABILITY.—If any portion of the funds re-
quired to be used for activities referred to 
in item (bb) or (cc) of clause (i)(II) are not 
awarded in a fiscal year, such portion shall 
continue to be available in the subsequent 
fiscal year for the same activity, in addi-
tion to other amounts that may be avail-
able for such activities for that subsequent 
fiscal year. 
‘‘(D) 
DETERMINATION
OF
GRANT 
AMOUNT.—
‘‘(i) IN GENERAL.—Subject to clause 
(ii), in determining the amount of a grant 
to be awarded under this paragraph for a
project proposed by an eligible applicant, 
the Secretaries shall provide the eligible 
applicant with an amount sufficient to en-
sure that the project has a reasonable op-
portunity to be successful, taking into ac-
count—
‘‘(I) the number and characteris-
tics of the individuals to be served by 
the project; 
‘‘(II) the level of unemployment 
in the area to be served by the 
project; 
‘‘(III) the job opportunities and 
job growth in such area; 
‘‘(IV) the poverty rate for such 
area; and 
‘‘(V) such other factors as the 
Secretary deems appropriate in such 
area. 
‘‘(ii) MAXIMUM AWARD FOR GRANTS 
TO PROMOTE BUSINESS LINKAGES OR PRO-
VIDE TRANSITIONAL JOBS PROGRAMS.—
‘‘(I) IN GENERAL.—In the case 
of a grant to carry out activities de-
scribed in clause (i) or (ii) of subpara-
graph 
(E), 
an 
eligible 
applicant 
awarded a grant under this paragraph 
may 
not 
receive 
more 
than 
$10,000,000 per fiscal year under the 
grant. 
‘‘(II) 
RULE
OF
CONSTRUC-
TION.—Nothing in subclause (I) shall 
be construed as precluding an other-
wise eligible applicant from receiving 
separate grants to carry out activities 
described in clause (i) or (ii) of sub-
paragraph (E). 
‘‘(iii) GRANT PERIOD.—The period in 
which a grant awarded under this para-
graph may be used shall be specified for a 
period of not less than 36 months and not 
more than 60 months. 
‘‘(E) ALLOWABLE ACTIVITIES.—An eligible 
applicant awarded a grant under this paragraph 
shall use funds provided under the grant to do 
the following: 
‘‘(i) PROMOTE BUSINESS LINKAGES.—
‘‘(I) IN GENERAL.—To promote 
business linkages in which funds shall
be used to fund new or expanded pro-
grams that are designed to—
‘‘(aa) substantially increase 
the wages of eligible individuals 
(as defined in subparagraph (F)), 
whether employed or unemployed, 
who have limited English pro-
ficiency or other barriers to em-
ployment by creating or upgrad-
ing job and related skills in part-
nership with employers, especially 
by providing supports and serv-
ices at or near work sites; and 
‘‘(bb) identify and strength-
en career pathways by expanding 
and linking work and training 
opportunities for such individuals 
in collaboration with employers. 
‘‘(II) CONSIDERATION
OF
IN-
KIND, IN-CASH
RESOURCES.—In de-
termining which programs to fund 
under this clause, an eligible applicant 
awarded a grant under this paragraph 
shall consider the ability of a consor-
tium to provide funds in-kind or in-
cash 
(including 
employer-provided, 
paid release time) to help support the 
programs for which funding is sought. 
‘‘(III) 
PRIORITY.—In 
deter-
mining which programs to fund under 
this clause, an eligible applicant 
awarded a grant under this paragraph 
shall give priority to programs that 
include education or training for 
which participants receive credit to-
ward a recognized credential, such as 
an occupational certificate or license. 
‘‘(IV) USE OF FUNDS.—
‘‘(aa) IN GENERAL.—Funds 
provided to a program under this 
clause may be used for a com-
prehensive set of employment and 
training benefits and services, in-
cluding 
job 
development, 
job 
matching, 
workplace 
supports 
and accommodations, curricula 
development, wage subsidies, re-
tention services, and such other 
benefits or services as the pro-
gram deems necessary to achieve
the overall objectives of this 
clause. 
‘‘(bb) PROVISION OF SERV-
ICES.—So long as a program is 
principally designed to assist eli-
gible individuals (as defined in 
subparagraph (F)), funds may be 
provided to a program under this 
clause that also serves low-earn-
ing employees of 1 or more em-
ployers even if such individuals 
are not within the definition of 
eligible individual (as so defined). 
‘‘(ii) PROVIDE
FOR
TRANSITIONAL 
JOBS PROGRAMS.—
‘‘(I) IN
GENERAL.—To provide 
for wage-paying transitional jobs pro-
grams which combine time-limited em-
ployment in the public or nonprofit 
private sector that is subsidized with 
public funds with skill development 
and activities to remove barriers to 
employment, pursuant to an individ-
ualized plan (or, in the case of an eli-
gible individual described in subpara-
graph (F)(i), an individual responsi-
bility plan developed for an individual 
under section 408(b)). Such programs 
also shall provide job development and 
placement assistance to individual 
participants to help them move from 
subsidized employment in transitional 
jobs into unsubsidized employment, as 
well as retention services after the 
transition to unsubsidized employ-
ment. 
‘‘(II) ELIGIBLE PARTICIPANTS.—
The Secretary shall ensure that indi-
viduals who participate in transitional 
jobs programs funded under a grant 
made under this paragraph shall be 
individuals who have been unemployed 
because of limited skills, experience, 
or other barriers to employment, and 
who are eligible individuals (as de-
fined in subparagraph (F)), provided 
that so long as a program is designed 
to, and principally serves, eligible indi-
viduals (as so defined), a limited num-
ber of individuals who are unemployed
because of limited skills, experience, 
or other barriers to employment, and 
who have an income below 100 per-
cent of the Federal poverty line but 
who do not satisfy the definition of el-
igible individual (as so defined) may 
be served in the program to the extent 
the Secretaries determine that the in-
clusion of such individuals in the pro-
gram is appropriate. 
‘‘(III) USE
OF
FUNDS.—Funds 
provided to a program under this 
clause may only be used in accordance 
with the following: 
‘‘(aa) To create subsidized 
transitional jobs in which work 
shall be performed directly for 
the program operator or at other 
public and non profit organiza-
tions (in this subclause referred 
to as ‘worksite employers’) in the 
community, and in which 100 
percent of the wages shall be 
subsidized, except as described in
item (ff) regarding placements in 
the private, for profit sector. 
‘‘(bb) Participants shall be 
paid at the rate paid to unsub-
sidized employees of the worksite 
employer 
who 
perform 
com-
parable work at the worksite 
where the individual is placed. If 
no other employees perform the 
same or comparable work then 
wages shall be set, at a min-
imum, at 50 percent of the 
Lower Living Standard Income 
Level (commonly referred to as 
the 
‘LLSIL’), 
as 
determined 
under section 101(24) of the 
Workforce Investment Act of 
1998 (29 U.S.C. 2801(24)), for a 
family of 3 based on 35 hours 
per week. 
‘‘(cc) Transitional jobs shall 
be limited to not less than 6 
months and not more than 24 
months, however, nothing shall 
preclude a participant from mov-
ing into unsubsidized employ-
ment at a point prior to the max-
imum duration of the transitional 
job placement. Participants shall 
be paid wages based on a work-
week of not less than 30 hours 
per week or more than 40 hours 
per week, except that a parent of 
a child under the age of 6, a 
child who is disabled, or a child 
with other special needs, or an 
individual who for other reasons 
cannot successfully participate 
for 30 to 40 hours per week, may 
be allowed to participate for more 
limited hours, but not less than 
20 hours per week. In any work 
week, 50 percent to 80 percent of 
hours shall be spent in the tran-
sitional job and 20 percent to 50 
percent of hours shall be spent in 
education or training, or other 
services designed to reduce or 
eliminate any barriers.
‘‘(dd) 
Program 
operators 
shall provide case management 
services and ensure access to ap-
propriate education, training, and 
other services, including job ac-
commodation, work supports, and 
supported employment, as appro-
priate and consistent with an in-
dividual plan that is based on the 
individual’s strengths, resources, 
priorities, concerns, abilities, ca-
pabilities, career interests, and 
informed choice and that is devel-
oped with each participant. The 
goal of each participant’s plan 
shall focus on preparation for un-
subsidized jobs in demand in the 
local economy which offer the po-
tential 
for 
advancement 
and 
growth. Services shall also in-
clude job placement assistance 
and retention services, which may 
include coaching and work place 
supports, for 12 months after 
entry into unsubsidized place-
ment. Participants shall also re-
ceive support services such as 
subsidized child care and trans-
portation, on the same basis as 
those services are made available 
to recipients of assistance under 
the State program funded under 
this part who are engaged in 
work-related activities. 
‘‘(ee) Providers shall work 
with individual recipients to de-
termine eligibility for other em-
ployment-related supports which 
may include (but are not limited 
to) supported employment, other 
vocational rehabilitation services, 
and programs or services avail-
able under the Workforce Invest-
ment Act of 1998 (29 U.S.C. 
2801 et seq.), or the ticket to 
work and self-sufficiency program 
established under section 1148, 
and, to the extent possible, shall 
provide transitional employment 
in collaboration with entities pro-
viding, or arranging for the pro-
vision of, such other supports. 
‘‘(ff) Not more than 20 per-
cent of the placements for a 
grantee shall be with a private 
for-profit company, except that 
such 20 percent limit may be 
waived by the Secretary for pro-
grams in rural areas when the 
grantee can demonstrate insuffi-
cient public and non-profit work-
sites. When a placement is made 
at a private for-profit company, 
the company shall pay 50 percent 
of 
program 
costs 
(including 
wages) for each participant, and 
the company shall agree, in writ-
ing, to hire each participant into 
an unsubsidized position at the 
completion of the agreed upon 
subsidized placement, or sooner, 
provided that the participant’s 
job performance has been satis-
factory. Not more than 5 percent 
of the workforce of a private for-
profit company may be composed 
of transitional jobs participants. 
‘‘(IV) DEFINITION
OF
TRANSI-
TIONAL
JOBS
PROGRAM.—In 
this 
clause, the term ‘transitional jobs pro-
gram’ means a program that is in-
tended to serve current and former re-
cipients of assistance under a State or 
tribal program funded under this part 
and other low-income individuals who 
have been unable to secure employ-
ment through job search or other em-
ployment-related services because of 
limited skills, experience, or other bar-
riers to employment. 
‘‘(iii) 
ADMINISTRATIVE
EXPENDI-
TURES.—Not more than 5 percent of the 
funds awarded to an eligible applicant 
under this paragraph may be used for ad-
ministrative expenditures incurred in car-
rying out the activities described in clause 
(i) or (ii) of this subpargraph, or for ex-
penditures related to carrying out the as-
sessments and reports required under sub-
paragraph (H).
‘‘(F) DEFINITION
OF
ELIGIBLE
INDI-
VIDUAL.—In this paragraph, the term ‘eligible 
individual’ means—
‘‘(i) an individual who is a parent who 
is a recipient of assistance under a State 
or tribal program funded under this part; 
‘‘(ii) an individual who is a parent 
who has ceased to receive assistance under 
such a State or tribal program; 
‘‘(iii) an individual who is at risk of 
receiving assistance under a State or tribal 
program funded under this part; 
‘‘(iv) an individual with a disability; or 
‘‘(v) a noncustodial parent who is un-
employed, or is having difficulty in paying 
child support obligations, including such a 
parent who is a former criminal offender. 
‘‘(G) APPLICATION.—Each eligible appli-
cant desiring a grant under this paragraph 
shall submit an application to the Secretaries at 
such time, in such manner, and accompanied by 
such information as the Secretaries may re-
quire. 
‘‘(H) ASSESSMENTS
AND
REPORTS
BY 
GRANTEES.—
‘‘(i) IN GENERAL.—An eligible appli-
cant that receives a grant under this para-
graph shall assess and report on the out-
comes of programs funded under the 
grant, including the identity of each pro-
gram operator, demographic information 
about each participant, including education 
level, literacy level, prior work experience 
and identified barriers to employment, the 
nature of education, training, or other 
services received by the participant, the 
reason for the participant’s leaving the 
program, and outcomes related to the 
placement of the participant in an unsub-
sidized job, including 1-year employment 
retention, wage at placement, benefits, and 
earnings progression, as specified by the 
Secretaries. 
‘‘(ii) ASSISTANCE.—The Secretaries 
shall—
‘‘(I) assist grantees in conducting 
the assessment required under clause 
(i) by making available where prac-
ticable low-cost means of tracking the
labor market outcomes of partici-
pants; and 
‘‘(II) encourage States to provide 
such assistance. 
‘‘(I) APPLICATION TO REQUIREMENTS OF 
THE STATE PROGRAM.—
‘‘(i) WORK PARTICIPATION REQUIRE-
MENTS.—With respect to any month in 
which a recipient of assistance under a 
State or tribal program funded under this 
part who satisfactorily participates in a 
business linkage or transitional jobs pro-
gram described in subparagraph (E) that 
is paid for with funds made available 
under a grant made under this paragraph, 
such participation shall be considered to 
satisfy the work participation requirements 
of section 407 and be included for pur-
poses of determining monthly participation 
rates under subsection (b)(1)(B)(i) of that 
section. 
‘‘(ii) PARTICIPATION
NOT
CONSID-
ERED
ASSISTANCE.—A benefit or service 
provided with funds made available under 
a grant made under this paragraph shall