Transformation to Competitive Integrated Employment Act
Bill: H.R.2373 | Sponsor: Rep. Scott, Robert C. "Bobby" (D-VA)
Policy area: Labor and Employment

Summary:
Transformation to Competitive Integrated Employment Act
This bill addresses employment standards for individuals with disabilities.
The bill directs the Department of Labor to award grants to states and certain eligible entities to assist them in transforming their business and program models to support individuals with disabilities by
The bill also prohibits the issuance of new special certificates that allow payment of subminimum wages to disabled individuals and phases out existing certificates over a four-year period.
The bill directs Labor's Office of Disability Employment to award grants to provide technical assistance and other strategic support to employers transitioning from special certificates to competitive integrated employment for disabled individuals.
Labor must contract with a nonprofit entity to conduct an evaluation of the impact of these transitions.


To assist employers providing employment under special certificates 
 issued under section 14(c) of the Fair Labor Standards Act of 1938 in 
 transforming their business and program models to models that support 
     individuals with disabilities through competitive integrated 
employment, to phase out the use of such special certificates, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transformation to Competitive 
Integrated Employment Act''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purposes.
    TITLE I--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT 
                                PROGRAMS

Sec. 101. Program authorized.
Sec. 102. State grant program.
Sec. 103. Certificate holder grant program.
TITLE II--PHASE OUT OF SPECIAL CERTIFICATES UNDER SECTION 14(C) OF THE 
                    FAIR LABOR STANDARDS ACT OF 1938

Sec. 201. Transition to fair wages for individuals with disabilities.
Sec. 202. Prohibition on new special certificates; sunset.
           TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION

Sec. 301. Technical Assistance and dissemination.
                   TITLE IV--REPORTING AND EVALUATION

Sec. 401. Impact evaluation and reporting.
Sec. 402. Wage and hour reports.
                      TITLE V--GENERAL PROVISIONS

Sec. 501. Definitions.
Sec. 502. Authorization of appropriations.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) assist employers with special certificates issued under 
        section 14(c) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 214(c)) to transform their business and program 
        operations to models that support individuals with disabilities 
        to find and retain work in competitive integrated employment;
            (2) ensure individuals with disabilities, families of such 
        individuals, State and local governments, and other 
        stakeholders are involved in the transformations described in 
        paragraph (1);
            (3) ensure individuals employed in programs using such 
        special certificates transition to competitive integrated 
        employment positions and, as needed, to integrated services 
        that support them in their homes and in community settings;
            (4) identify models and processes for shifting business and 
        program models from such special certificates to competitive 
        integrated employment models and integrated community 
        participation and wraparound services, and to share that 
        information with other such special certificate holders, State 
        and local entities, and other service providers for individuals 
        with disabilities; and
            (5) support States and local governments as they revise and 
        implement their Olmstead plans and local plans, respectively, 
        in order to improve competitive integrated employment outcomes 
        for individuals with disabilities through all State workforce 
        development systems.

    TITLE I--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT 
                                PROGRAMS

SEC. 101. PROGRAM AUTHORIZED.

    From the amounts appropriated to carry out this title, the 
Secretary of Labor shall award grants under sections 102 and 103, on a 
competitive basis, to States and eligible entities to assist employers 
who were issued special certificates in transforming their business and 
program models from providing employment using such special 
certificates to business and program models that employ and support 
individuals with disabilities by--
            (1) providing competitive integrated employment, including 
        by compensating all employees of the employer at a rate that 
        is--
                    (A) not less than the higher of the rate specified 
                in section 6(a)(1) of the Fair Labor Standards Act of 
                1938 (29 U.S.C. 206(a)(1)) or the rate specified in the 
                applicable State or local minimum wage law; and
                    (B) not less than the customary rate paid by the 
                employer for the same or similar work performed by 
                other employees who are not individuals with 
                disabilities, and who are similarly situated in similar 
                occupations by the same employer and who have similar 
                training, experience, and skills;
            (2) assisting individuals with disabilities who were 
        employed by the employer in finding and retaining work in 
        competitive integrated employment, which work may be with the 
        employer after such transformation or in another competitive 
        integrated employment setting;
            (3) providing integrated community participation and 
        wraparound services for individuals with disabilities; and
            (4) ensuring all such services and other non-employment 
        services offered under, or with assistance from, such a grant 
        comply with the requirements for home and community-based 
        services under the Home and Community-Based Services (HCBS) 
        final rule published on January 16, 2014 (79 Fed. Reg. 2948), 
        or a successor rule.

SEC. 102. STATE GRANT PROGRAM.

    (a) Application.--
            (1) In general.--To be eligible to receive a grant under 
        this section, a State shall submit an application to the 
        Secretary at such time, in such manner, and including such 
        information as the Secretary may reasonably require.
            (2) Contents.--Each application submitted under paragraph 
        (1) shall include--
                    (A) a description of the status of the employers in 
                the State providing employment using special 
                certificates, including--
                            (i) the number of employers in the State 
                        using special certificates to employ and pay 
                        individuals with disabilities;
                            (ii) the number of employers described in 
                        clause (i) that also employ individuals with 
                        disabilities in competitive integrated 
                        employment, which shall include employers 
                        providing such employment in combination with 
                        integrated services;
                            (iii) the number of employees employed 
                        under a special certificate, disaggregated by--
                                    (I) employer; and
                                    (II) demographic characteristics, 
                                including gender, race, ethnicity, and 
                                type of disability, unless indicating 
                                such characteristics would disclose 
                                personally identifiable information;
                            (iv) the average, median, minimum, and 
                        maximum number of hours such employees work per 
                        week, disaggregated by employer, and reported 
                        for the State as a whole; and
                            (v) the average, median, minimum, and 
                        maximum hourly wage for such employees, 
                        disaggregated by employer, and reported for the 
                        State as a whole;
                    (B) a description of the activities of the State 
                with respect to competitive integrated employment for 
                individuals with disabilities, including, as 
                applicable--
                            (i) a copy of the State plan for carrying 
                        out the Employment First initiative;
                            (ii) a copy of the Olmstead plan of the 
                        State;
                            (iii) a description of activities related 
                        to the development and promotion of ABLE 
                        accounts; and
                            (iv) a description of the medical 
                        assistance provided by the State through a 
                        Medicaid buy-in eligibility pathway under 
                        subclause (XV) or (XVI) of section 
                        1902(a)(10)(A)(ii) of the Social Security Act 
                        (42 U.S.C. 1396a(a)(10)(A)(ii)), including any 
                        premiums or other cost sharing imposed on 
                        individuals who enroll in the State Medicaid 
                        program through such a pathway;
                    (C) a description of activities to be funded under 
                the grant, and the goals of such activities, 
                including--
                            (i) the process to be used to identify each 
                        employer in the State that will transform its 
                        business and program models from employing 
                        individuals with disabilities using special 
                        certificates to employing individuals with 
                        disabilities in competitive integrated 
                        employment settings, or a setting involving a 
                        combination of competitive integrated 
                        employment and integrated services;
                            (ii) the number of such employers in the 
                        State that will carry out a transformation 
                        described in clause (i);
                            (iii) the service delivery infrastructure 
                        that will be implemented in the State to 
                        support individuals with disabilities who have 
                        been employed under special certificates 
                        through such a transformation, including 
                        providing enhanced integrated services to 
                        support individuals with the most significant 
                        disabilities;
                            (iv) a description of the process to 
                        recruit and engage Federal, State, and local 
                        governments and nonprofit and private employers 
                        to hire individuals with disabilities into 
                        competitive integrated employment who have been 
                        employed under special certificates;
                            (v) the competitive integrated employment 
                        and integrated services that will be 
                        implemented in the State to support such 
                        individuals;
                            (vi) a timeline for phasing out employment 
                        using special certificates in the State, which 
                        shall not extend past the date on which the 
                        legal effect of such certificates expires under 
                        section 14(c)(7) of the Fair Labor Standards 
                        Act of 1938 (29 U.S.C. 214(c)(7)), as added by 
                        title II;
                            (vii) a timeline for the expansion of 
                        employers that will provide competitive 
                        integrated employment, or a combination of 
                        competitive integrated employment and 
                        integrated services, to individuals with 
                        disabilities who have been employed by such 
                        employers under special certificates;
                            (viii) a description of the expanded 
                        competitive integrated employment and 
                        integrated services to be provided to such 
                        individuals as a result of transformations 
                        described in clause (i); and
                            (ix) a description of the process to be 
                        used to engage stakeholders in such 
                        transformations;
                    (D) a description of how the activities under the 
                grant will coordinate and align Federal, State, and 
                local programs, agencies, and funding in the 
                transformations described in subparagraph (C)(i);
                    (E) a description of the State's evaluation plan to 
                determine the social and economic impact of the grant, 
                including the impact (as measured throughout the 
                transformation and the 2-year period after the State 
                has phased out employment using special certificates) 
                on--
                            (i) the employment status of individuals 
                        with disabilities in the State, including the 
                        number of hours worked, average wages, and job 
                        satisfaction, of such individuals; and
                            (ii) changes in provider capacity to 
                        support competitive integrated employment and 
                        integrated services;
                    (F) assurances that--
                            (i) the activities carried out under the 
                        grant will result in each employer in the State 
                        that provides employment using special 
                        certificates on the date of enactment of this 
                        Act transforming as described in subparagraph 
                        (C)(i);
                            (ii) individuals with the most significant 
                        disabilities, including intellectual and 
                        developmental disabilities, who will be 
                        affected by such a transformation will be given 
                        priority in receiving the necessary competitive 
                        integrated employment supports and integrated 
                        services to succeed during and after such a 
                        transformation;
                            (iii) each individual in the State who is 
                        employed under a special certificate will, as a 
                        result of such a transformation, be employed in 
                        competitive integrated employment;
                            (iv) at a minimum, the State agencies 
                        responsible for developmental disability 
                        services, Medicaid, education, vocational 
                        rehabilitation, mental health services, 
                        transportation, and workforce development agree 
                        to be partners in the goals of the grant;
                            (v) until the date that is 2 years after 
                        the legal effect of special certificates 
                        expires under section 14(c)(7) of the Fair 
                        Labor Standards Act of 1938 (29 U.S.C. 
                        214(c)(7)), as added by title II, the State 
                        will comply with requirements of the Secretary 
                        with respect to the collection of data, and 
                        will require employers providing employment 
                        under special certificates in the State to 
                        comply with such requirements;
                            (vi) the State will cooperate with the 
                        evaluation under title IV by providing all data 
                        required and allow the evaluation of activities 
                        under the grant;
                            (vii) the State will establish an advisory 
                        council described in paragraph (3) to monitor 
                        and guide the process of transforming business 
                        and program models of employers in the State as 
                        described in subparagraph (C)(i);
                            (viii) the State will cooperate with the 
                        nonprofit entity carrying out technical 
                        assistance and dissemination activities under 
                        title III;
                            (ix) all integrated services and non-
                        employment services offered by employers in the 
                        State will comply with--
                                    (I) the requirements for home and 
                                community-based services under the Home 
                                and Community-Based Services (HCBS) 
                                final rule published on January 16, 
                                2014 (79 Fed. Reg. 2948), or a 
                                successor rule;
                                    (II) the holding of the Olmstead 
                                decision; and
                                    (III) the Americans with 
                                Disabilities Act of 1990 (42 U.S.C. 
                                12101 et seq.); and
                            (x) the State will disseminate information 
                        to all individuals with disabilities employed 
                        under special certificates regarding the 
                        availability of--
                                    (I) ABLE accounts and other asset 
                                developmental options for individuals 
                                with disabilities;
                                    (II) the Ticket to Work and Self 
                                Sufficiency Program established under 
                                section 1148 of the Social Security Act 
                                (42 U.S.C. 1320b-19); and
                                    (III) other resources related to 
                                benefits counseling for individuals 
                                with disabilities who wish to or are 
                                working in competitive integrated 
                                employment settings; and
                    (G) such other information and assurances as the 
                Secretary may reasonably require.
            (3) Members of the advisory council.--A State receiving a 
        grant under this section shall, for the purpose described in 
        paragraph (2)(F)(vii), establish an advisory council composed 
        of the following:
                    (A) Individuals with disabilities, including such 
                individuals with intellectual and developmental 
                disabilities, who are or were employed under a special 
                certificate, who shall comprise not less than 25 
                percent of the members.
                    (B) A family member of an individual with an 
                intellectual or developmental disability who is 
                employed under a special certificate.
                    (C) A family member of an individual with an 
                intellectual or developmental disability who is 
                employed in competitive integrated employment.
                    (D) An employer providing competitive integrated 
                employment.
                    (E) An employer providing employment under special 
                certificates.
                    (F) A representative of a nonprofit agency or 
                organization specializing in competitive integrated 
                employment.
                    (G) A representative of the State developmental 
                disability agency.
                    (H) A representative of the State vocational 
                rehabilitation agency, as such term is used under the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
                    (I) A representative of an agency in the State 
                described in paragraph (6) or (7) of section 8501 of 
                title 41, United States Code.
                    (J) A representative of the State independent 
                living centers, as such term is used under the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
                    (K) A representative of the State Council on 
                Developmental Disabilities, as defined in section 102 
                of the Developmental Disabilities Assistance and Bill 
                of Rights Act of 2000 (42 U.S.C. 15002).
                    (L) A representative of one of the State University 
                Centers for Excellence in Developmental Disabilities 
                Education, Research, and Service, established under 
                subtitle D of title I of the Developmental Disabilities 
                Assistance and Bill of Rights Act of 2000 (42 U.S.C. 
                15061 et seq.).
                    (M) A representative of the State protection and 
                advocacy system, as defined in section 102 of the 
                Developmental Disabilities Assistance and Bill of 
                Rights Act of 2000 (42 U.S.C. 15002).
                    (N) A representative of the State Medicaid office.
                    (O) Representatives of other State agencies and 
                disability organizations and other disability related 
                offices and groups with expertise in competitive 
                integrated employment.
    (b) Geographic Diversity.--To the extent practicable, the Secretary 
shall distribute grant funds under this section equitably among 
geographic areas of the United States, and take into account rural and 
urban diversity.
    (c) Duration of Awards.--A grant under this section shall be 
awarded for a period of 5 years.
    (d) Limit on Award Number.--A State may only be awarded 1 grant 
under this section.
    (e) Amount of Awards.--A grant awarded under this section may not 
be made in an amount that is less than $2,000,000, or more than 
$10,000,000 for the 5 year grant period.
    (f) Additional Funding for Supported Employment Services.--
            (1) In general.--Title VI of the Rehabilitation Act of 1973 
        is amended--
                    (A) in section 603 (29 U.S.C. 795h)--
                            (i) in subsection (a), by adding at the end 
                        the following:
            ``(3) References.--For purposes of this subsection, any 
        reference to sums or amounts appropriated under this title 
        shall not be considered to include the amounts appropriated 
        under section 611(e).'';
                            (ii) in subsection (c)--
                                    (I) by inserting ``or a grant under 
                                section 611'' after ``allotment under 
                                this title''; and
                                    (II) by inserting ``or such grant'' 
                                after ``such allotment''; and
                            (iii) in subsection (d)--
                                    (I) by inserting ``or a grant under 
                                section 611'' after ``allotment under 
                                this title''; and
                                    (II) by inserting ``or such grant'' 
                                after ``such allotment'';
                    (B) in section 604(b)(2) (29 U.S.C. 795i(b)(2)), by 
                inserting ``(including through a grant awarded under 
                section 611)'' after ``this title'';
                    (C) in section 610 (29 U.S.C. 795o), by inserting 
                ``, except for section 611,'' after ``this title''; and
                    (D) by adding at the end the following:

``SEC. 611. ADDITIONAL FUNDING FOR CERTAIN STATES WITH COMPETITIVE 
              INTEGRATED EMPLOYMENT.

    ``(a) Grants.--From amounts appropriated under subsection (e), the 
Secretary shall award a grant under this section to each eligible State 
that submits an application under subsection (c) for the purposes 
described in section 604.
    ``(b) Eligibility.--
            ``(1) In general.--A State is eligible for a grant under 
        this section for a fiscal year if the State--
                    ``(A) is eligible for an allotment under section 
                603(a) for the fiscal year; and
                    ``(B) has successfully completed a grant under 
                section 102 of the Transformation to Competitive 
                Integrated Employment Act during that fiscal year or 
                the preceding fiscal year, as determined under 
                paragraph (2).
            ``(2) Successfully completing a competitive integrated 
        employment grant.--A State has successfully completed a grant 
        under section 102 of the Transformation to Competitive 
        Integrated Employment Act if, at the conclusion of the 5-year 
        period of the grant, the Secretary determines--
                    ``(A) the State has complied with all requirements 
                under such section for such grant;
                    ``(B) the State has ceased issuing special 
                certificates under section 14(c) of the Fair Labor 
                Standards Act of 1938 (29 U.S.C. 214(c)); and
                    ``(C) no special certificates issued under such 
                section have any force or effect.
    ``(c) Application.--A State seeking a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may reasonably 
require, including information demonstrating the State has successfully 
complied with the requirements under subsection (b)(2).
    ``(d) Awards.--
            ``(1) In general.--A grant to a State under this section 
        shall be awarded in an amount determined under paragraph (2) 
        for a fiscal year, except as provided under paragraph (3).
            ``(2) Amount.--Subject to available appropriations under 
        subsection (e), the amount of a grant under this section to a 
        State for a fiscal year shall be equal to 25 percent of the 
        amount allotted to such State under subsection (a) of section 
        603 for the preceding fiscal year (excluding any additional 
        amounts allotted to the State under subsection (b) of such 
        section).
            ``(3) Continued compliance.--If a State receiving a grant 
        under this section ceases compliance with subparagraph (B) or 
        (C) of subsection (b)(2) for a fiscal year--
                    ``(A) no amounts shall be awarded through such 
                grant for such fiscal year; or
                    ``(B) in a case in which such amounts have already 
                been awarded to the State for such fiscal year, the 
                State shall return to the Secretary such amounts.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2026 through 2030 such sums as 
may be necessary to carry out this section.''.
            (2) Table of contents.--The table of contents in section 
        1(b) of the Rehabilitation Act of 1973 is amended by adding 
        after the item relating to section 610 the following:

``Sec. 611. Additional funding for certain States with competitive 
                            integrated employment.''.

SEC. 103. CERTIFICATE HOLDER GRANT PROGRAM.

    (a) In General.--To be eligible to receive a grant under this 
section, an eligible entity shall submit an application to the 
Secretary at such time, in such manner, and including such information 
as the Secretary may reasonably require.
    (b) Contents.--Each application submitted under subsection (a) 
shall include--
            (1) the status of the eligible entity's use of special 
        certificates to employ individuals with disabilities, 
        including--
                    (A)(i) the number of employees the eligible entity 
                employs using such special certificates at the time of 
                submission of the application;
                    (ii) the aggregate demographic profile of such 
                employees, including gender, race, and type of 
                disability of such employees, unless indicating such 
                demographic profile would disclose personally 
                identifiable information; and
                    (iii) an historical accounting, covering each of 
                the previous 4 fiscal years, of--
                            (I) the number of employees with a 
                        disability working for a wage that is--
                                    (aa) less than the higher of the 
                                rate specified in section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) or the rate 
                                specified in the applicable State or 
                                local minimum wage law; or
                                    (bb) less than the customary rate 
                                paid by the employer for the same or 
                                similar work performed by other 
                                employees who are not individuals with 
                                disabilities, and who are similarly 
                                situated in similar occupations by the 
                                same employer and who have similar 
                                training, experience, and skills;
                            (II) an aggregate demographic profile of 
                        such employees including gender, race, 
                        ethnicity, age, and type of disability;
                    (B) the average, minimum, maximum, and range of 
                hourly wages paid to employees employed using such 
                special certificates during the previous year;
                    (C) during the preceding 5 fiscal years, the number 
                of individuals with disabilities, disaggregated by 
                fiscal year, who have been transitioned by the eligible 
                entity from employment under such special certificates 
                to competitive integrated employment; and
                    (D) a description of the business and program 
                models (including the financial and organizational 
                structure) of the eligible entity that is using the 
                special certificates, including--
                            (i) the number and types of contracts the 
                        entity has entered into during the preceding 5 
                        fiscal years to supply goods or services and 
                        under which individuals with or without 
                        disabilities are employed;
                            (ii) the budget and the funding structure, 
                        including all sources of funding, for the 
                        preceding 5 fiscal years;
                            (iii) the human resource structure; and
                            (iv) the entities partnering with the 
                        eligible entity as described in subsection 
                        (h)(2);
            (2) a description of activities to be funded under the 
        grant, and the goals of such activities, including--
                    (A) a description of the business and program 
                models of competitive integrated employment or a 
                combination of competitive integrated employment and 
                integrated services into which the models of the 
                eligible entity will transform, including the business 
                plan, employment structure, and leadership organization 
                of the eligible entity;
                    (B) a description of--
                            (i) the integrated services to be provided 
                        by the eligible entity; or
                            (ii) the eligible entity's process for 
                        referring an individual requiring such services 
                        to a provider of such services to ensure that 
                        the individual receives such services;
                    (C) after the transformation of the eligible 
                entity's business and program models as described in 
                subparagraph (A), the number of employees that will be 
                employed under such models;
                    (D) the date on which the eligible entity will 
                discontinue using special certificates, and the funding 
                structure the eligible entity will use to provide 
                competitive integrated employment or a combination of 
                such employment and integrated services; and
                    (E) the process to be used for the transformation 
                of the eligible entity's business and program models as 
                described in subparagraph (A), including--
                            (i) redesign of contracts;
                            (ii) changes in funding sources;
                            (iii) staff training on competitive 
                        integrated employment support and practices;
                            (iv) input from key stakeholders, including 
                        individuals with disabilities, their families, 
                        and other local stakeholders; and
                            (v) a description of the individuals who 
                        will be responsible for the development and 
                        implementation of such process;
            (3) a description of the process to recruit and engage 
        Federal, State, and local governments and nonprofit and private 
        employers to hire individuals with disabilities who have been 
        employed under special certificates;
            (4) a timeline of activities to be implemented and goals to 
        be reached on at least a quarterly basis during the 3-year 
        grant period;
            (5) a description of how the activities under the grant 
        will coordinate and align Federal, State, and local programs, 
        agencies, and funding in the transformation described in 
        paragraph (2)(A);
            (6) assurances that--
                    (A) the activities carried out under the grant will 
                result in the transformation described in paragraph 
                (2)(A);
                    (B) individuals with disabilities who are employed 
                by the eligible entity under special certificates will 
                be employed in competitive integrated employment;
                    (C) the eligible entity will comply with the 
                requirements of the Secretary with respect to the 
                collection of data;
                    (D) the eligible entity will cooperate with the 
                evaluation described in title IV by providing all data 
                required and allow evaluation of the activities under 
                the grant; and
                    (E) the eligible entity will cooperate with the 
                nonprofit entity carrying out technical assistance and 
                dissemination required under title III;
            (7) a description of the eligible entity's evaluation plan 
        to determine the impact of the grant;
            (8) assurances of collaboration and support from all State 
        entities, including the State Medicaid agency, the State 
        developmental disability agency, the State vocational 
        rehabilitation agency, the State department of education, the 
        State board, the local board, and other State and local 
        governmental entities and organizations that support 
        transformations to providing competitive integrated employment 
        and integrated services for employees employed under a special 
        certificate; and
            (9) such other information and assurances as the Secretary 
        may reasonably require.
    (c) Geographic Diversity.--To the extent practicable, the Secretary 
shall distribute grant funds under this section equitably among 
geographic areas of the United States, and shall take into account 
rural and urban diversity.
    (d) Program Size.--To the extent practicable, the Secretary shall 
distribute grant funds under this section equitably among eligible 
entities providing employment using special certificates serving 
different numbers of individuals.
    (e) Duration of Awards.--
            (1) Grant period.--A grant awarded under this section shall 
        be awarded for a period of 3 years.
            (2) Grant cycles.--Grants shall be awarded under this 
        section in 2 grant cycles. Grants for the second grant cycle 
        shall be awarded not earlier than the end of the second year of 
        the first 3-year grant cycle.
    (f) Limit on Award Number.--An eligible entity may only be awarded 
1 grant total under this section.
    (g) Amount of Awards.--A grant awarded under this section may not 
be made in an amount that is less than $100,000, or more than $500,000, 
for the 3-year grant period.
    (h) Eligible Entity Defined.--In this title, the term ``eligible 
entity'' means an entity that--
            (1) employs individuals with disabilities under special 
        certificates and is located in a State that did not receive a 
        grant under section 102; and
            (2) partners with at least 2 entities with experience 
        providing support to individuals with disabilities in 
        competitive integrated employment, such as--
                    (A) an employer providing competitive integrated 
                employment;
                    (B) a State developmental disability agency;
                    (C) a State mental health services agency;
                    (D) a representative of an agency described in 
                paragraph (6) or (7) of section 8501 of title 41, 
                United States Code;
                    (E) a representative of the State Council on 
                Developmental Disabilities, as defined in section 102 
                of the Developmental Disabilities Assistance and Bill 
                of Rights Act of 2000 (42 U.S.C. 15002);
                    (F) a representative of the State vocational 
                rehabilitation agency, as such term is used under the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
                    (G) a representative of the State independent 
                living centers, as such term is used under the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
                    (H) a representative of one of the State University 
                Centers for Excellence in Developmental Disabilities 
                Education, Research, and Service, established under 
                subtitle D of title I of the Developmental Disabilities 
                Assistance and Bill of Rights Act of 2000 (42 U.S.C. 
                15061 et seq.);
                    (I) a representative of the State protection and 
                advocacy system, as defined in section 102 of the 
                Developmental Disabilities Assistance and Bill of 
                Rights Act of 2000 (42 U.S.C. 15002); and
                    (J) a nonprofit agency or organization specializing 
                in competitive integrated employment.

TITLE II--PHASE OUT OF SPECIAL CERTIFICATES UNDER SECTION 14(C) OF THE 
                    FAIR LABOR STANDARDS ACT OF 1938

SEC. 201. TRANSITION TO FAIR WAGES FOR INDIVIDUALS WITH DISABILITIES.

    (a) In General.--Subparagraph (A) of section 14(c)(1) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to read as 
follows:
                    ``(A) at a rate that equals, or exceeds, the 
                greater of--
                            ``(i)(I) 60 percent of the wage rate in 
                        effect under section 6(a)(1), beginning on the 
                        effective date described in section 201(b) of 
                        Transformation to Competitive Integrated 
                        Employment Act;
                            ``(II) 70 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 1 year 
                        after such effective date;
                            ``(III) 80 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 2 years 
                        after such effective date;
                            ``(IV) 90 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 3 years 
                        after such effective date; and
                            ``(V) the wage rate in effect under section 
                        6(a)(1), beginning 4 years after such effective 
                        date; or
                            ``(ii) the wage rate in effect on the day 
                        before the date of enactment of the 
                        Transformation to Competitive Integrated 
                        Employment Act for the employment, under a 
                        special certificate issued under this 
                        paragraph, of the individual for whom the wage 
                        rate is determined under this paragraph;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 6 months after the date of enactment of 
this Act.

SEC. 202. PROHIBITION ON NEW SPECIAL CERTIFICATES; SUNSET.

    Section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
214(c)) (as amended by section 201), is further amended by adding at 
the end the following:
            ``(6) Prohibition on new special certificates.--
        Notwithstanding paragraph (1), the Secretary shall not issue a 
        special certificate under this subsection to an employer that 
        was not issued a special certificate under this subsection 
        before the date of enactment of the Transformation to 
        Competitive Integrated Employment Act.
            ``(7) Sunset.--Beginning on the day after the date that is 
        4 years after the effective date described in section 201(b) of 
        the Transformation to Competitive Integrated Employment Act--
                    ``(A) the authority to issue special certificates 
                under paragraph (1) shall expire; and
                    ``(B) no special certificates issued under 
                paragraph (1) shall have any legal effect.''.

           TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION

SEC. 301. TECHNICAL ASSISTANCE AND DISSEMINATION.

    (a) Grant Authorized.--From the amounts appropriated for this 
title, the Secretary (acting through the Office of Disability 
Employment Policy of the Department of Labor in partnership with the 
Employment and Training Administration of the Department of Labor), in 
partnership with the Administration for Community Living of the 
Department of Health and Human Services and the Office of Special 
Education and Rehabilitative Services of the Department of Education, 
shall award a grant to a nonprofit entity to--
            (1)(A) provide technical assistance to employers who are 
        transforming from employing individuals with disabilities using 
        special certificates to providing competitive integrated 
        employment;
            (B) identify and disseminate private and public sector 
        models of the transition described in subparagraph (A); and
            (C) build a set of replicable strategies for employers 
        using special certificates to increase their use of evidence-
        based practices in providing competitive integrated employment 
        and increase their options for providing competitive integrated 
        employment;
            (2) collect and disseminate--
                    (A) evidence-based practices with respect to the 
                transformations described in paragraph (1)(A), 
                including practices that increase awareness of and 
                access to training materials from and opportunities 
                offered through the Office of Disability Employment 
                Policy of the Department of Labor; and
                    (B) evidence-based strategies for implementing the 
                aims of activities, intended to improve the quality of 
                integrated services to result in competitive integrated 
                employment for individuals with disabilities, carried 
                out--
                            (i) under the Workforce Innovation and 
                        Opportunity Act (29 U.S.C. 3101 et seq.);
                            (ii) through settlement agreements made 
                        pursuant to the employment requirements under 
                        the Olmstead decision; or
                            (iii) through home and community-based 
                        services described in the Home and Community-
                        Based Services (HCBS) final rule published on 
                        January 16, 2014 (79 Fed. Reg. 2948), or a 
                        successor rule;
            (3) leverage and increase awareness of and access to 
        training materials and opportunities made available through 
        training and technical assistance investments of--
                    (A) the Office of Disability Employment Policy of 
                the Department of Labor;
                    (B) the Employment and Training Administration of 
                the Department of Labor;
                    (C) the Administration for Community Living of the 
                Department of Health and Human Services; and
                    (D) the Office of Special Education and 
                Rehabilitative Services of the Department of Education; 
                and
            (4)(A) raise awareness of efforts in States to carry out 
        the Employment First initiative; and
            (B) coordinate dissemination efforts related to ABLE 
        accounts and other financial asset development resources 
        through the ABLE National Resource Center and the Department of 
        the Treasury.
    (b) Application.--
            (1) In general.--To be eligible to receive a grant under 
        this section, a nonprofit entity shall submit an application to 
        the Secretary at such time, in such manner, and including such 
        information that the Secretary may reasonably require.
            (2) Contents.--Each application submitted under paragraph 
        (1) shall include--
                    (A) a description of the nonprofit entity's 
                expertise in providing technical assistance that shall 
                include evidence of--
                            (i) knowledge of transforming business and 
                        program models providing employment using 
                        special certificates to models providing 
                        competitive integrated employment and 
                        integrated services;
                            (ii) knowledge of methods for supporting 
                        employers, including employers not receiving a 
                        grant under title I, to transform as described 
                        in clause (i);
                            (iii) experience working with nonprofit, 
                        for-profit, Federal, State, and local agencies 
                        focusing on employment of youth and adults who 
                        are individuals with disabilities; and
                            (iv) experience working with individuals 
                        with disabilities and their families;
                    (B) a description of the nonprofit entity's 
                expertise in providing, collecting, compiling, 
                communicating, and disseminating information about 
                program and systems change for programs serving 
                individuals with disabilities that shall include--
                            (i) expertise documenting program change;
                            (ii) experience compiling recommended 
                        practices related to program transformations;
                            (iii) expertise regarding competitive 
                        integrated employment for youth and adults who 
                        are individuals with disabilities;
                            (iv) expertise working with individuals 
                        with disabilities and their families through 
                        systems change procedures;
                            (v) expertise creating accessible products 
                        to disseminate learned information, including 
                        through web-based means;
                            (vi) experience creating accessible 
                        websites to disseminate information;
                            (vii) experience working with nonprofit, 
                        for-profit, Federal, State, and local agencies 
                        focusing on employment of youth and adults who 
                        are individuals with disabilities;
                            (viii) experience with assisting youth who 
                        are individuals with disabilities in 
                        transitioning from receiving services under the 
                        Individuals with Disabilities Education Act (20 
                        U.S.C. 1401 et seq.) to inclusive postsecondary 
                        education and competitive integrated 
                        employment; and
                            (ix) experience leveraging resources, 
                        available through the Office of Disability 
                        Employment Policy and the Employment and 
                        Training Administration, that are designed to 
                        provide effective and efficient services to job 
                        seekers who are individuals with disabilities 
                        in competitive integrated employment settings; 
                        and
                    (C) a description of the individuals at the 
                nonprofit entity who will be responsible for carrying 
                out the activities under this title.
            (3) Duration of award.--A grant under this section shall be 
        awarded for a period of 6 years, and shall be non-renewable.
            (4) Nonprofit entity defined.--In this section, the term 
        ``nonprofit entity'' means a nonprofit entity with expertise in 
        collecting, compiling, communicating, and disseminating 
        information about program and systems change for programs 
        serving individuals with disabilities.

                   TITLE IV--REPORTING AND EVALUATION

SEC. 401. IMPACT EVALUATION AND REPORTING.

    (a) In General.--Not later than 6 months after the date of 
enactment of this Act, the Secretary shall enter into a contract with a 
nonprofit entity with experience in conducting evaluations of program 
and systems change efforts to--
            (1) conduct a multi-year evaluation on the impact of this 
        Act, including the amendments made by this Act, with respect to 
        individuals with disabilities (including such individuals 
        receiving a wage rate under section 14(c) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 214(c)), as amended by title 
        II); and
            (2) prepare the reports described in subsection (c).
    (b) Evaluation.--In carrying out subsection (a)(1), the nonprofit 
entity awarded a contract under this section shall evaluate--
            (1) changes in wages and employment for individuals 
        described in subsection (a)(1); and
            (2) actions taken by employers and States to comply with 
        the amendments made by title II and, in the case of an employer 
        or State receiving funds under title I, to comply with the 
        transformation requirements under such title.
    (c) Reports.--The Secretary shall submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Education and Labor of the House of Representatives, the following 
reports on the evaluation conducted under subsection (a)(1):
            (1) An interim report on the evaluation, not later than 3 
        years after the evaluation commences under subsection (a)(1).
            (2) A final report on such evaluation, not later than 18 
        months after the date on which the legal effect of special 
        certificates expire pursuant to paragraph (7) of section 14(c) 
        of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), as 
        added by title II.

SEC. 402. WAGE AND HOUR REPORTS.

    (a) In General.--For each year of the 5-year period described in 
section 14(c)(1)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
214(c)(1)(A)), as amended by title II, the Secretary (acting through 
the Administrator of the Wage and Hour Division), in coordination with 
the Civil Rights Division of the Department of Justice, shall submit to 
the Committee on Health, Education, Labor, and Pensions of the Senate 
and the Committee on Education and Labor of the House of 
Representatives, an annual report summarizing practices of employers 
providing employment using special certificates, which, with respect to 
the preceding year, shall include--
            (1) the number of employees (of such employers) who are 
        individuals with disabilities and who are compensated at a rate 
        that is less than--
                    (A) the higher of the rate specified in section 
                6(a)(1) of the Fair Labor Standards Act of 1938 (29 
                U.S.C. 206(a)(1)) or the rate specified in the 
                applicable State or local minimum wage law; or
                    (B) the customary rate paid by the employer for the 
                same or similar work performed by other employees who 
                are not individuals with disabilities, and who are 
                similarly situated in similar occupations by the same 
                employer and who have similar training, experience, and 
                skills;
            (2) the type of employment setting (such as segregated 
        employment or competitive integrated employment) and the 
        integrated services provided by such employers;
            (3) the average hourly wage, minimum and maximum hourly 
        wage, and average hours worked per week of employees described 
        in paragraph (1), disaggregated by employer and by State;
            (4) the aggregate demographic characteristics of employees 
        described in paragraph (1), including the gender, ethnicity, 
        race, and type of disability of such employees; and
            (5) the number of employees who have transitioned from 
        employment provided under a special certificate to competitive 
        integrated employment, disaggregated by employer and by State.
    (b) Report on Survey of Existing Special Certificate Holders.--Not 
later than 1 year after the date of enactment of this Act, the 
Secretary (acting through the Administrator of the Wage and Hour 
Division) shall--
            (1) survey not less than 10 percent of employers providing 
        employment to employees using special certificates, as of the 
        date of enactment of this Act, which shall include an 
        evaluation of--
                    (A) the training and support provided to such 
                employees to promote their transition to competitive 
                integrated employment;
                    (B) the actions taken by employers to identify 
                competitive integrated employment for such employees; 
                and
                    (C) the wages of such employees, including whether 
                such wages are at a rate that is less than--
                            (i) the higher of the rate specified in 
                        section 6(a)(1) of the Fair Labor Standards Act 
                        of 1938 (29 U.S.C. 206(a)(1)) or the rate 
                        specified in the applicable State or local 
                        minimum wage law; or
                            (ii) the customary rate paid by the 
                        employer for the same or similar work performed 
                        by other employees who are not individuals with 
                        disabilities, and who are similarly situated in 
                        similar occupations by the same employer and 
                        who have similar training, experience, and 
                        skills; and
            (2) submit a report on the results of such survey to the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate, the Special Committee on Aging of the Senate, and the 
        Committee on Education and Labor of the House of 
        Representatives.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. DEFINITIONS.

    In this Act:
            (1) ABLE account.--The term ``ABLE account'' has the 
        meaning given such term in section 529A(e)(6) of the Internal 
        Revenue Code of 1986.
            (2) Competitive integrated employment.--The term 
        ``competitive integrated employment'' has the meaning given the 
        term in section 7(5) of the Rehabilitation Act of 1973 (29 
        U.S.C. 705(5)).
            (3) Disability.--The term ``disability'' includes any 
        intellectual, developmental, mental health, or other 
        disability.
            (4) Integrated community participation and wraparound 
        services; integrated services.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the terms ``integrated community participation and 
                wraparound services'' or ``integrated services'' mean 
                services for individuals with disabilities that are--
                            (i) designed to assist such individuals in 
                        developing skills and abilities to reside 
                        successfully in home and community-based 
                        settings;
                            (ii) provided in accordance with a person-
                        centered written plan of care;
                            (iii) created using evidence-based 
                        practices that lead to such individuals--
                                    (I) maintaining competitive 
                                integrated employment;
                                    (II) achieving independent living; 
                                or
                                    (III) maximizing socioeconomic 
                                self-sufficiency, optimal independence, 
                                and full participation in the 
                                community;
                            (iv) provided in a community location that 
                        is not specifically intended for individuals 
                        with disabilities;
                            (v) provided in a location that--
                                    (I) allows the individuals 
                                receiving the services to interact with 
                                individuals without disabilities to the 
                                fullest extent possible; and
                                    (II) makes it possible for the 
                                individuals receiving the services to 
                                access community resources that are not 
                                specifically intended for individuals 
                                with disabilities and to have the same 
                                opportunities to participate in the 
                                community as individuals who do not 
                                have a disability;
                            (vi) provided in multiple locations to 
                        allow the individual receiving the services to 
                        have options, thereby--
                                    (I) optimizing individual 
                                initiative, autonomy, and independence; 
                                and
                                    (II) facilitating choice regarding 
                                services and supports, and choice 
                                regarding the provider of such 
                                services; and
                            (vii) in compliance with the Home and 
                        Community-Based Services (HCBS) final rule 
                        published on January 16, 2014 (79 Fed. Reg. 
                        2948), or a successor rule.
                    (B) Exclusions.--The terms ``integrated community 
                participation and wraparound services'' or ``integrated 
                services'' shall not include a service provided in any 
                of the following settings:
                            (i) A nursing facility.
                            (ii) An institution for individuals with 
                        mental diseases.
                            (iii) An intermediate care facility for 
                        individuals with intellectual disabilities.
                            (iv) A congregate setting in which an 
                        individual does not have the ability, at the 
                        time preferred by the individual and in 
                        accordance with other preferences of the 
                        individual, to access services supporting the 
                        full inclusion and engagement of the individual 
                        in the greater community.
            (5) Local board; local plan.--The terms ``local board'' and 
        ``local plan'' have the meanings given such terms in section 3 
        of the Workforce Innovation and Opportunity Act (29 U.S.C. 
        3102).
            (6) Olmstead decision.--The term ``Olmstead decision'' 
        means the decision of the Supreme Court of the United States in 
        Olmstead v. L.C., 527 U.S. 581 (1999).
            (7) Olmstead plan.--The term ``Olmstead plan'', with 
        respect to a State, means the plan of the State for complying 
        with the holding in the Olmstead decision.
            (8) Individuals with disabilities.--The term ``individuals 
        with disabilities'' includes individuals described in section 
        14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
        214(c)(1)).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (10) Special certificate.--The term ``special certificate'' 
        means a special certificate issued under section 14(c) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)).
            (11) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and the territory of Guam.
            (12) State board.--The term ``State board'' has the meaning 
        given such term in section 3 of the Workforce Innovation and 
        Opportunity Act.
            (13) Workforce development system.--The term ``workforce 
        development system'' has the meaning given such term in section 
        3 of the Workforce Innovation and Opportunity Act.

SEC. 502. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
(other than section 102(f)), $50,000,000 for each of fiscal years 2022 
through 2027.
                                 <all>