I 
109TH CONGRESS 
1ST SESSION H. R. 3976 
To accelerate the reemployment and employment of individuals affected by 
Hurricanes Katrina and Rita by establishing grants to eligible entities 
to provide worker recovery accounts to eligible individuals. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2005 
Mr. BOUSTANY (for himself, Mr. BOEHNER, Mr. MCKEON, Mr. WILSON of 
South Carolina, Mr. PORTER, Mr. JINDAL, Mr. ALEXANDER, Mr. BAKER, 
Mr. MCCRERY, and Mr. PICKERING) introduced the following bill; which 
was referred to the Committee on Education and the Workforce 
A BILL 
To accelerate the reemployment and employment of individ-
uals affected by Hurricanes Katrina and Rita by estab-
lishing grants to eligible entities to provide worker recov-
ery accounts to eligible individuals. 
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 ‘‘Worker Recovery Act 
of 2005’’.
SEC. 2. PURPOSES. 
The purposes of this act are to accelerate the reem-
ployment and employment of individuals affected by Hur-
ricanes Katrina and Rita, and provide such individuals 
with enhanced flexibility, choice, and control in obtaining 
intensive reemployment, training, and supportive services. 
SEC. 3. GRANTS TO SUPPORT WORKER RECOVERY AC-
COUNTS. 
Subtitle F of title I of the Workforce Investment Act 
of 1998 (29 U.S.C. 2801 et seq.) is amended by redesig-
nating subtitle F as subtitle G and inserting after subtitle 
E the following: 
‘‘Subtitle F—Temporary Program 
to Provide Worker Recovery Ac-
counts to Workers Affected by a 
Gulf Hurricane Disaster 
‘‘SEC. 196. ESTABLISHMENT OF WORKER RECOVERY AC-
COUNTS GRANT PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary shall make grants 
to eligible entities to provide worker recovery accounts to 
eligible individuals in accordance with this subtitle in order 
to meet the employment and training needs of individuals 
affected by Hurricane Katrina or Hurricane Rita. 
‘‘(b) ELIGIBLE ENTITIES.—For purposes of this sub-
title, an eligible entity means—
‘‘(1) the States of Louisiana, Mississippi, Ala-
bama, and Texas; 
‘‘(2) States to which a significant number of in-
dividuals described in subsection (d)(2)(A)(i) and (ii) 
have relocated; and 
‘‘(3) a local board or a consortium of local 
boards established in a local area or areas— 
‘‘(A) within the boundaries of which is an 
area that has been declared a major disaster 
under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170) as a result of Hurricane 
Katrina or Hurricane Rita and where the Presi-
dent has determined payment of assistance 
under section 410(a) of such Act is warranted; 
or 
‘‘(B) to which a significant number of indi-
viduals described in subsection (d)(2)(A)(i) and 
(ii) have relocated. 
‘‘(c) USE OF GRANT FUNDS.— 
‘‘(1) IN GENERAL.—An eligible entity that re-
ceives a grant under this subtitle shall use the grant 
funds to provide, through a local area or areas, eligi-
ble individuals with worker recovery accounts. An el-
igible individual may receive only 1 worker recovery 
account. 
‘‘(2) AMOUNT IN ACCOUNTS.—The eligible enti-
ty shall establish the amount to be provided for each 
worker recovery account, which shall be uniform 
throughout the State or local area and shall not be 
in excess of $5,000. 
‘‘(3) LIMITATION ON ADMINISTRATIVE COSTS.— 
Of the amount awarded to an eligible entity under 
a grant under this subtitle, not more than 5 percent 
of the amount may be used for the costs of adminis-
tration. 
‘‘(d) ELIGIBLE INDIVIDUALS.— 
‘‘(1) IN GENERAL.—Each eligible entity shall 
establish eligibility criteria for individuals for worker 
recovery accounts in accordance with this subsection. 
‘‘(2) ELIGIBILITY CRITERIA REQUIREMENTS.— 
‘‘(A) IN GENERAL.—An individual shall be 
eligible to receive a worker recovery account 
under a grant awarded under this subtitle if the 
individual— 
‘‘(i)(I) was employed in a county in 
Mississippi or Alabama, or a parish in 
Louisiana, where a major disaster has been 
declared under section 401 of the Robert
T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170) as a re-
sult of Hurricane Katrina and where the 
President has determined payment of as-
sistance under section 410(a) of such Act 
is warranted; or 
‘‘(II) was employed in a county in 
Texas or a parish in Louisiana where a 
major disaster has been declared under 
section 401 of the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act 
as a result of Hurricane Rita and where 
the President has determined payment of 
assistance under section 410(a) of such 
Act is warranted; 
‘‘(ii) has lost the employment de-
scribed in clause (i) as a direct result of a 
Hurricane Katrina or Hurricane Rita; and 
‘‘(iii) either 
‘‘(I)(aa) has been identified by 
the 
State 
pursuant 
to 
section 
303(j)(1) of the Social Security Act 
(42 U.S.C. 503(j)(1)) as likely to ex-
haust regular unemployment com-
pensation and in need of job search
assistance to make a successful transi-
tion to new employment; 
‘‘(bb) is receiving regular 
unemployment compensation as 
defined in section 205(2) of the 
Federal-State Extended Unem-
ployment Compensation Act of 
1970; and 
‘‘(cc) filed the claim for un-
employment 
compensation 
not 
later than 9 months after the 
declaration of the major disaster 
described in clause (i); or 
‘‘(II) is receiving disaster unem-
ployment assistance under section 
410(a) of the Robert T. Stafford Dis-
aster Relief and Emergency Assist-
ance Act (42 U.S.C. 5177(a)). 
‘‘(B) ADDITIONAL ELIGIBILITY AND PRI-
ORITY CRITERIA.—An eligible entity may estab-
lish criteria that are in addition to the criteria 
described in subparagraph (A) for the eligibility 
of individuals to receive a worker recovery ac-
count under this subtitle. An eligible entity may 
also establish criteria for priority in the provi-
sion of a worker recovery account to such eligi-
ble individuals under a grant awarded under 
this subtitle. 
‘‘(3) NO INDIVIDUAL ENTITLEMENT.—Nothing 
in this subtitle shall be construed to entitle any indi-
vidual to receive a worker recovery account. 
‘‘(e) ADMINISTRATION.— 
‘‘(1) INFORMATION AND ATTESTATION.—Prior 
to the establishment of a worker recovery account 
for an eligible individual, the eligible entity receiving 
a grant, through the one-stop delivery system in the 
participating local area or areas, shall ensure that 
the individual— 
‘‘(A) is informed of the requirements appli-
cable to the worker recovery account, including 
the allowable uses of funds from the account, 
the limitations on access to services described in 
section 196B and a description of such services, 
and the conditions for receiving a reemployment 
bonus; 
‘‘(B) has the option to develop a worker 
recovery plan which will identify the employ-
ment goals and appropriate combination of 
services selected by the individual to achieve the 
employment goals; and
‘‘(C) signs an attestation that the indi-
vidual has been given the option to develop a 
worker recovery plan in accordance with sub-
paragraph (B), will comply with the require-
ments under this subtitle relating to the worker 
recovery accounts, and will reimburse the ac-
count or, if the account has been terminated, 
the grant awarded under this subtitle, for any 
amounts expended from the account that are 
not allowable. 
‘‘(2) PERIODIC INTERVIEWS.—If a recipient ex-
hausts his or her rights to any unemployment com-
pensation and the recipient has a remaining balance 
in his or her worker recovery account, the one-stop 
delivery system shall conduct periodic interviews 
with the recipient to assist the recipient in meeting 
his or her individual employment goals. 
‘‘(3) USE OF WORKER RECOVERY ACCOUNTS.— 
The eligible entity receiving a grant shall ensure 
that eligible individuals receiving a worker recovery 
account use the account in accordance with section 
196B. 
‘‘SEC. 196A. APPLICATION FOR GRANTS. 
‘‘To be eligible to receive a grant under this subtitle, 
an eligible entity shall submit an application to the Sec-
retary at such time, in such manner, and containing such 
information as the Secretary may require, including at a 
minimum— 
‘‘(1) if the eligible entity is a State— 
‘‘(A) assurance that the application was 
developed in conjunction with the local board or 
boards and chief elected officials where the 
worker recovery accounts shall be made avail-
able; and 
‘‘(B) a description of the methods and pro-
cedures for providing funds, including adminis-
trative funds, to local areas where the worker 
recovery accounts shall be made available; 
‘‘(2) a description of the criteria and methods 
to be used for determining eligibility for the worker 
recovery account, including the additional criteria 
and priority for service that the eligible entity in-
tends to apply, if any, pursuant to section 
196(d)(2)(B); 
‘‘(3) a description of the methods or procedures 
to be used to provide eligible individuals information 
relating to services and providers; 
‘‘(4) a description of safeguards to ensure that 
funds from the worker recovery accounts are used 
for purposes authorized under this subtitle and to
ensure the quality and integrity of services and pro-
viders, consistent with the purpose of providing eligi-
ble individuals with enhanced flexibility, choice, and 
control in obtaining intensive reemployment, train-
ing, and supportive services; 
‘‘(5) a description of how the eligible entity will 
coordinate the activities carried out under this sub-
title with the employment and training activities car-
ried out under section 134 and other activities car-
ried out by local boards through the one-stop deliv-
ery system in the State or local area; and 
‘‘(6) an assurance that the eligible entity will 
comply with any evaluation and reporting require-
ments the Secretary may require. 
‘‘SEC. 196B. USE OF WORKER RECOVERY ACCOUNTS. 
‘‘(a) ALLOWABLE ACTIVITIES.— 
‘‘(1) IN
GENERAL.—Subject to the require-
ments contained in paragraphs (2) and (3), a recipi-
ent of a worker recovery account may use amounts 
in a worker recovery account to purchase 1 or more 
of the following: 
‘‘(A) Intensive services, including those 
type 
of 
services 
specified 
in 
section 
134(d)(3)(C).
‘‘(B) Training services, including those 
types 
of 
services 
specified 
in 
section 
134(d)(4)(D). 
‘‘(C) Supportive services (except for needs 
related payments) and relocation assistance. 
‘‘(2) DELIVERY OF SERVICES.—The following 
requirements relating to delivery of services shall 
apply to the grants under this subtitle: 
‘‘(A) Recipients may use funds from the 
worker recovery account to purchase the serv-
ices described in paragraph (1) through the 
one-stop delivery system on a fee-for-service 
basis, or through other providers, consistent 
with the safeguards described in section 
196A(d). 
‘‘(B) The eligible entity, through the one- 
stop delivery system in the participating local 
area or areas, may pay costs for such services 
directly on behalf of the recipient, through a 
voucher system, through arrangements with pri-
vate financial institutions, or by reimbursement 
to the recipient upon receipt of appropriate cost 
documentation. 
‘‘(C) Each eligible entity, through the one- 
stop delivery system in the participating local
area or areas, shall make available to recipients 
information on training providers, including in-
formation specified in section 134(d)(4)(F)(ii), 
information available to the one-stop delivery 
system on providers of the intensive and sup-
portive services described in paragraph (1), in-
cluding child care, and information relating to 
occupations in demand in the local area and oc-
cupations in demand in the home State of an 
individual who has relocated. 
‘‘(3) LIMITATIONS.—The following limitations 
shall apply with respect to worker recovery accounts 
under this subtitle: 
‘‘(A) Amounts in a worker recovery ac-
count may be used for up to 1 year from the 
date of the establishment of the account. 
‘‘(B) Each recipient shall submit cost doc-
umentation as required by the one-stop delivery 
system. 
‘‘(C) For the 1-year period following the 
establishment of the account, recipients may 
not receive intensive, supportive, or training 
services funded under title I of this Act except 
on a fee-for-services basis as specified in para-
graph (2)(A).
‘‘(D) Amounts in a worker recovery ac-
count shall be nontransferable. 
‘‘(b) REEMPLOYMENT BONUS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
if a recipient determined eligible under section 
196(d) obtains full-time employment before the 13th 
week of unemployment for which unemployment 
compensation (including disaster unemployment as-
sistance) is paid, or if such individual was already 
receiving unemployment compensation (including 
disaster unemployment assistance) on the date of 
enactment of this subtitle and obtains full-time em-
ployment before the 13th week after the week in 
which the worker recovery account is established, the 
balance of his or her worker recovery account in an 
amount not to exceed $1,000 shall be provided di-
rectly to the recipient in cash. 
‘‘(2) LIMITATIONS.—The following limitations 
shall apply with respect to a recipient described in 
paragraph (1): 
‘‘(A) 60 percent of the remaining worker 
recovery account balance as determined under 
paragraph (1), up to a maximum of $600, shall 
be paid to the recipient at the time of employ-
ment.
‘‘(B) 40 percent of the remaining worker 
recovery account balance as determined under 
paragraph (1), up to a maximum of $400, shall 
be paid to the recipient after 26 weeks of em-
ployment retention. 
‘‘(3) EXCEPTION REGARDING SUBSEQUENT EM-
PLOYMENT.—If a recipient described in paragraph 
(1) subsequently becomes unemployed due to a lack 
of work after receiving the portion of the reemploy-
ment bonus specified under paragraph (2)(A), the 
individual may use the amount remaining in the 
worker recovery account for the purposes described 
in subsection (a) but may not be eligible for addi-
tional cash payments under this subparagraph. 
‘‘SEC. 196C. PROGRAM INFORMATION AND EVALUATION. 
‘‘(a) INFORMATION.—The Secretary may require eli-
gible entities receiving a grant under this subtitle to collect 
and report on such financial, performance, and other pro-
gram-related information as the Secretary determines is 
appropriate to carry out this subtitle, including the evalua-
tion described in subsection (b). 
‘‘(b) EVALUATION.— 
‘‘(1) IN GENERAL.—The Secretary, pursuant to 
the authority provided in section 172, shall, directly 
or through grants, contracts, or cooperative agree-
ment with appropriate entities, conduct an evalua-
tion of the activities carried out under any grants 
awarded under this subtitle. 
‘‘(2) REPORT.—The Secretary shall report to 
Congress relating to the results of the evaluations 
required under paragraph (1), which shall include 
any recommendations the Secretary deems appro-
priate with respect to the use of worker recovery ac-
count as a mechanism to assist individuals in obtain-
ing and retaining employment. 
‘‘SEC. 196D. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this subtitle $650,000,000 for fis-
cal year 2006. 
‘‘(b) AVAILABILITY OF FUNDS.— Funds authorized 
under this subtitle shall be available for obligation upon 
the date of enactment of the appropriation and shall re-
main available for obligation until September 30, 2006 
and for expenditure until September 30, 2007.’’. 
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