(A) INDIVIDUALS
RECEIVING
UNEMPLOY-
MENT COMPENSATION OR AFDC.—Each partici-
pant in a project who is receiving unemploy-
ment compensation under an unemployment
compensation law of a State or of the United
States or aid to families with dependent chil-
dren under part A of title IV of the Social Se-
curity Act and who worked the number of hours
determined under subsection (b)(2) shall be
compensated for participation in such project
on a monthly basis a bonus amount determined
appropriate by the Secretary under subsection
(a)(1)(C). Such amount shall be paid from
grant funds awarded to the State and shall be
in addition to any such benefit received by such
participant.
(B) INDIVIDUALS NOT RECEIVING UNEM-
PLOYMENT
COMPENSATION
OR
AFDC.—Each
participant in a project who is not described in
subparagraph (A) shall be paid for each hour
worked as a participant on such project an
amount determined appropriate by the Sec-
retary under subsection (a)(1)(C).
(2) COMPENSATION
FOR
ADDITIONAL
WORK
HOURS.—If an individual who is receiving unemploy-
ment compensation under an unemployment com-
pensation law of a State or of the United States or
an individual who is receiving aid to families with
dependent children under part A of title IV of the
Social Security Act accepts an offer to work hours
in addition to the number of hours determined under
subsection (b)(2), such individual shall be paid for
each such additional hour an amount determined ap-
propriate 
by 
the 
Secretary 
under 
subsection
(a)(1)(D). Such amount shall be paid from grant
funds awarded to the State and shall be in addition
to any such benefit received by such participant.
(3) ALTERNATIVE COMPENSATION METHODS.—
The Secretary may approve any application submit-
ted by a State under this Act which provides for an
alternative to the method of compensation for par-
ticipants in a project set forth in this Act if such al-
ternative method is based on an individual partici-
pant’s skill level, education, or responsibility on the
project, and such alternative method—
(A) does not reduce the amount received
by any participant on an hourly basis below the
Federal minimum wage or the applicable State
minimum wage, whichever is greater; and
(B)(i) in the case of an individual receiving
unemployment compensation under an unem-
ployment law of a State or of the United
States, results in a weekly payment which
would be greater than the weekly amount the
participant receives as such compensation; or
(ii) in the case of an individual receiving
aid to families with dependent children under
part A of title IV of the Social Security Act, re-
sults in a monthly payment which would be
greater than the monthly amount the family of
the participant receives as such aid.
(4) PAYMENTS OF AFDC AND UNEMPLOYMENT
COMPENSATION.—Any State agency responsible for
making a payment of benefits to a participant in a
project under part A of title IV of the Social Secu-
rity Act or under an unemployment compensation
law of a State or of the United States may transfer
such payment to the governmental or nonprofit en-
tity conducting such project and such payment shall
be made by such entity to such participant in con-
junction with any payment of compensation made
under paragraphs (1), (2), or (3).
(5) TREATMENT OF COMPENSATION OR BENE-
FITS UNDER OTHER PROGRAMS.—
(A) HIGHER EDUCATION ACT OF 1965.—In
determining any grant, loan, or other form of
assistance for an individual under any program
under the Higher Education Act of 1965, the
Secretary of Education shall not take into con-
sideration the compensation and benefits re-
ceived by such individual under this section for
participation in a project.
(B) RELATIONSHIP
TO
OTHER
FEDERAL
BENEFITS.—Notwithstanding any other provi-
sion of law, any compensation or benefits re-
ceived by an individual under this section for
participation in a community works progress
project shall be excluded from any determina-
tion of income for the purposes of determining
eligibility for benefits under section 402, title
XVI, and title XIX of the Social Security Act,
or any other Federal or federally assisted pro-
gram which is based on need.
(6) SUPPORTIVE SERVICES.—Each participant
in a project conducted under this Act shall be eligi-
ble to receive, out of grant funds awarded to the
State agency administering such project, assistance
to meet necessary costs of transportation, child care,
vision testing, eyeglasses, uniforms and other work
materials.
SEC. 7. ADDITIONAL PROGRAM REQUIREMENTS.
(a) NONDUPLICATION AND NONDISPLACEMENT.—
(1) NONDUPLICATION.—
(A) IN GENERAL.—Amounts from a grant
provided under this Act shall be used only for
a project that does not duplicate, and is in ad-
dition to, an activity otherwise available in the
State or unit of general local government in
which the project is carried out.
(B) NONPROFIT ENTITY.—Amounts from
a grant provided to a State under this Act shall
not be provided to a nonprofit entity to conduct
activities that are the same or substantially
equivalent to activities provided by a State or
local government agency in which such entity
resides, unless the requirements of paragraph
(2) are met.
(2) NONDISPLACEMENT.—
(A) IN GENERAL.—A governmental or non-
profit entity shall not displace any employee or
position, including partial displacement such as
reduction in hours, wages, or employment bene-
fits, as a result of the use by such entity of a
participant in a project funded by a grant
under this Act.
(B) LIMITATION ON SERVICES.—
(i) DUPLICATION
OF
SERVICES.—A
participant in a project funded by a grant
under this Act shall not perform any serv-
ices or duties or engage in activities that
would otherwise be performed by any em-
ployee as part of the assigned duties of
such employee.
(ii) SUPPLANTATION
OF
HIRING.—A
participant in a project funded by a grant
under this Act shall not perform any serv-
ices or duties or engage in activities that
will supplant the hiring of other workers.
(iii) DUTIES FORMERLY PERFORMED
BY
ANOTHER
EMPLOYEE.—A participant
in a project funded by a grant under this
Act shall not perform services or duties
that have been performed by or were as-
signed to any presently employed worker,
employee who recently resigned or was dis-
charged, employee who is subject to a re-
duction in force, employee who is on leave
(terminal, temporary, vacation, emergency,
rence of the event that is the subject of the griev-
ance.
(3) DEADLINE FOR HEARING AND DECISION.—
(A) 
HEARING.—A 
hearing 
conducted
under this paragraph on any grievance shall be
conducted not later than 30 days after the fil-
ing of such grievance.
(B) DECISION.—A decision on any griev-
ance shall be made not later than 60 days after
the filing of such grievance.
(4) ARBITRATION.—
(A) IN GENERAL.—In the event of a deci-
sion on a grievance that is adverse to the party
who filed such grievance, or 60 days after the
filing of such grievance if no decision has been
reached, such party shall have the right to de-
mand an arbitration. Such demand for an arbi-
tration shall be made to the American Arbitra-
tion Association (hereafter referred to in this
subsection as the ‘‘Association’’) within 30 days
after a decision on a grievance that is adverse
to the party who filed such grievance has been
reached, or 90 days after the filing of such
grievance if no decision has been reached. Upon
receipt of such a demand for arbitration, the
Association shall serve notice on the parties to
the arbitration and, except as provided in sub-
paragraph (B), conduct the arbitration accord-
ing to the commercial rules of the Association
in effect at the time of the filing of the demand
for arbitration.
(B) SPECIAL
RULES
FOR
ARBITRATION
PROCEEDING.—
(i) DEADLINE FOR PROCEEDING.—An
arbitration proceeding shall be held not
later than 45 days after the appointment
of an arbitrator.
(ii) DEADLINE FOR DECISION.—A de-
cision concerning a grievance subject to an
arbitration proceeding shall be made not
later than 30 days after the date such ar-
bitration proceeding begins.
(iii) COST.—
(I) IN GENERAL.—Except as pro-
vided in subclause (II), the cost of an
arbitration proceeding shall be divided
evenly between the parties to the arbi-
tration.
(II) EXCEPTION.—If a partici-
pant, labor organization, or other in-
terested individual described in para-
graph (1) prevails under an arbitra-
tion proceeding, the State, govern-
mental entity, or nonprofit entity
which is a party to such grievance
shall pay the total cost of such pro-
ceeding and the attorney’s fees of
such participant, labor organization,
or individual, as the case may be.
(5) PROPOSED PLACEMENT.—If a grievance is
filed regarding a proposed placement of a partici-
pant in a project conducted under this Act, such
placement shall not be made unless it is consistent
with the resolution of the grievance pursuant to this
subsection.
(6) REMEDIES.—Remedies for a grievance filed
under this subsection include—
(A) prohibition of the placement described
in paragraph (5); and
(B) in the case of an individual who has
been displaced from employment—
(i) reinstatement of the individual to
the position held by such individual prior
to displacement;
(ii) payment of lost wages and bene-
fits of the individual;
(iii) reestablishment of other relevant
terms, conditions, and privileges of employ-
ment of the individual; and
(iv) such equitable relief as is nec-
essary to correct any violation of this Act
or to make the individual whole.
(7) ENFORCEMENT.—Suits to enforce an arbi-
tration award under this subsection may be brought
in any district court of the United States having ju-
risdiction over the parties without regard to the
amount in controversy and without regard to the
citizenship of the parties.
(d) TESTING AND EDUCATION REQUIREMENTS.—
(1) TESTING.—Except as provided in para-
graph (3), each participant in a project shall be test-
ed for basic reading and writing competence prior to
employment under such project.
(2) EDUCATION REQUIREMENT.—
(A) FAILURE
TO
SATISFACTORILY
COM-
PLETE
TEST.—Participants who fail to com-
plete satisfactorily the basic competency test re-
quired in paragraph (1) shall be furnished
counseling and instruction.
(B) LIMITED-ENGLISH.—Participants with
limited-English speaking ability may be fur-
nished such instruction as the governmental or
nonprofit entity conducting the project deems
appropriate.
(3) PARTICIPANTS IN JOBS PROGRAM.—Any in-
dividual who is a participant in the job opportunities
and basic skills training program under part F of
title IV of the Social Security Act shall not be re-
quired to be tested under paragraph (1) if such indi-
vidual has been tested under such program so long
as such test is adequate to ensure appropriate place-
ment of the individual in a project.
(e) COMPLETION OF PROJECTS.—
(1) IN GENERAL.—A governmental or nonprofit
entity conducting a project under this Act shall com-
plete such project within the 2-year period beginning
on a date determined appropriate by such entity, the
State agency administering the project, and the Sec-
retary.
(2) MODIFICATION.—The period referred to in
paragraph (1) may be modified in the discretion of
the Secretary upon application by the State in which
a project is being conducted.