Title: Federal Jobs Guarantee Development Act of 2018
Policy area: Labor and Employment

Summary:
Federal Jobs Guarantee Development Act of 2018
This bill requires the Department of Labor to establish a pilot program to provide grants to eligible entities (i.e., political subdivisions of states and Tribal entities with a high unemployment rate) for programs to guarantee employment to individuals residing in the areas served by such entities.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6467 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6467

   To require the Secretary of Labor to establish a pilot program to 
               provide grants for job guarantee programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2018

     Mrs. Watson Coleman (for herself, Mr. Khanna, Mr. Thompson of 
Mississippi, Ms. Clarke of New York, Mr. Hastings, Ms. Lee, Mr. Pocan, 
    Ms. Kelly of Illinois, Mrs. Lawrence, Mrs. Beatty, Mr. Brown of 
 Maryland, Mr. Carson of Indiana, Mr. Clay, Mr. Cleaver, Mr. Cummings, 
   Ms. Fudge, Mr. Al Green of Texas, Mr. Jeffries, Ms. Eddie Bernice 
Johnson of Texas, Mr. Johnson of Georgia, Ms. Jackson Lee, Mr. Lewis of 
 Georgia, Mr. McEachin, Ms. Norton, Mr. Payne, Ms. Plaskett, Mr. Rush, 
Mr. David Scott of Georgia, Mr. Ellison, Mr. Brady of Pennsylvania, Mr. 
 Grijalva, Mr. Serrano, and Mr. Evans) introduced the following bill; 
which was referred to the Committee on Education and the Workforce, and 
  in addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Labor to establish a pilot program to 
               provide grants for job guarantee programs.

    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 ``Federal Jobs Guarantee Development 
Act of 2018''.

SEC. 2. JOB GUARANTEE PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means an 
        entity that--
                    (A) is a political subdivision of a State, Tribal 
                entity, or a combination of contiguous political 
                subdivisions or Tribal entities;
                    (B) has an unemployment rate that is not less than 
                150 percent of the national unemployment rate, as 
                determined by the Bureau of Labor Statistics (except in 
                the case of Tribal entities which may submit their own 
                employment data where no such Federal data is available 
                for such entities) based on the most recent data 
                available at the time the Secretary solicits 
                applications for grants under this section; and
                    (C) submits an application in accordance with 
                subsection (d).
            (2) Job guarantee program.--The term ``job guarantee 
        program'' means a program that meets the requirements of 
        subsection (c).
            (3) Rural area.--The term ``rural area'' means an area that 
        is located outside of a metropolitan statistical area.
            (4) Tribal entity.--The term ``Tribal entity'' means an 
        Indian tribe or tribal organization as such terms are defined 
        in section 4 of the Indian Self-Determination Act (25 U.S.C. 
        5304).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
    (b) Establishment.--
            (1) In general.--The Secretary shall establish a pilot 
        program to provide competitive grants to eligible entities to 
        establish programs to ensure that any individual within the 
        area served by the entity who applies for a job through the 
        program will be provided with employment as provided for in 
        this section.
            (2) Termination.--A job guarantee program established under 
        a grant under this section shall terminate on the earlier of--
                    (A) the end of the 3-year period beginning on the 
                date of the grant; or
                    (B) the date of any revocation of the grantee as an 
                eligible entity.
    (c) Job Guarantee Programs.--A job guarantee program meets the 
requirements of this subsection if the jobs provided under such 
program--
            (1) are available to all individuals who--
                    (A) are 18 years of age or older; and
                    (B) reside in the area served under the program;
        except that participants in the program may be disciplined, 
        released, or suspended from further participation in jobs under 
        this program if they are found to be negligent, or generally 
        disruptive to the workplace involved under procedures 
        established by the Secretary that provide for an opportunity 
        for a review of such determinations;
            (2) are, with respect to individual participants, included 
        as part of an established bargaining unit and covered by any 
        applicable collective bargaining agreement in effect if 
        similarly situated employees part of such unit and represented 
        by an exclusive bargaining representative;
            (3) are available for the duration of the pilot program;
            (4) provide a wage of not less than the greater of--
                    (A) the hourly wage provided for under the 
                provisions of S. 1242 (115th Congress, as introduced);
                    (B) the prevailing wage in the area involved for a 
                similar job as required by chapter 67 of title 41, 
                United States Code, and other related laws; or
                    (C) the applicable wage under an applicable 
                collective bargaining agreement as provided for under 
                paragraph (2);
            (5) provide for coverage of the worker under a health 
        insurance program that is comparable to that offered to Federal 
        employees under the Federal Employee Health Benefits Program; 
        and
            (6) provide, at a minimum--
                    (A) paid family leave consistent with the 
                provisions of S. 337 (115th Congress, as introduced) 
                and applicable State law; and
                    (B) paid sick leave consistent with the provision 
                of S. 636 (115th Congress, as introduced) and 
                applicable State law.
    (d) Applications.--An eligible entity 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 
require. Such application shall include--
            (1) a description of the geographic area and population 
        that the entity intends to serve under the job guarantee 
        program established under the grant, including the area 
        unemployment rate, poverty rate, vacancy rate, crime rate, 
        household income, home-ownership rate, labor force 
        participation, and educational attainment;
            (2) to extent practicable, a description of the jobs that 
        will be performed under the job guarantee program;
            (3) the need in the area for jobs to be performed, 
        including for jobs designated as a priority by the Secretary;
            (4) a description of State, local, or philanthropic 
        funding, including through coordination and in-kind or non-
        financial support, if any, that will be provided to assist in 
        carrying out the job guarantee program;
            (5) an assurance that the eligible entity will establish--
                    (A) a public internet website, in conjunction with 
                the Secretary, to post all available jobs under the job 
                guarantee program; and
                    (B) a process for individuals to apply for such 
                jobs;
            (6) a comprehensive plan to describe how the funding under 
        the program will leverage existing or anticipated local, State, 
        and Federal funding;
            (7) an assurance that necessary administrative data systems 
        and information technology infrastructure are available, or 
        will be available, to provide for full participation in the 
        evaluation under subsection (k); and
            (8) an assurance that the entity will enter into an 
        allocation agreement with the Secretary under subsection 
        (j)(2)(A).
    (e) Selection.--The Secretary shall award grants under this section 
to not more than 15 eligible entities. In awarding such grants, the 
Secretary shall ensure that not less than--
            (1) 4 such entities serve predominantly rural areas under 
        the grant;
            (2) 6 such entities serve predominantly urban areas under 
        the grant;
            (3) 1 such entity serve in each of the 6 regions served by 
        the Regional Offices of the Employment and Training 
        Administration; and
            (4) 1 such entity shall be a Tribal entity.
    (f) Amount of Grant.--
            (1) Establishment of fund.--There is established in the 
        Treasury of the United States a separate account to be known as 
        the ``Job Guarantee Program Trust Fund'' (referred to in this 
        section as the ``Fund''), consisting of--
                    (A) amounts deposited in the Fund under subsection 
                (l); and
                    (B) any interest earned on investment of amounts in 
                the Fund.
            (2) Use of amounts.--The Secretary shall use amounts in the 
        Fund to make payments to grantees under grants under this 
        section in accordance with paragraph (3).
            (3) Payments.--
                    (A) In general.--The Secretary shall determine the 
                annual amount of a grant under this section based on a 
                formula to be developed by the Secretary.
                    (B) Payments.--The Secretary shall make payments to 
                grantees under this section in a manner determined 
                appropriate by the Secretary. The Secretary shall not 
                make subsequent payments to a grantee after the initial 
                payment until the grantee certifies to the Secretary 
                that the grantee has expended, transferred, or 
                obligated not less than 80 percent of the most recent 
                payment made under this subsection.
    (g) Limitations.--An eligible entity may not use amounts received 
under a grant under this section to--
            (1) employ individuals who will replace, or lead to the 
        displacement of, existing employees, positions, or individuals 
        who would otherwise perform similar employment;
            (2) perform functions otherwise prohibited by Federal, 
        State, or local laws; and
            (3) carry out other prohibited activities, as determined by 
        the Secretary.
    (h) Federal Provision of Jobs in Pilot Sites.--
            (1) Guidance.--Not later than 30 days after the date on 
        which the Secretary awards the first grant under this section, 
        the Secretary shall--
                    (A) provide guidance to the heads of appropriate 
                Federal agencies to notify such agencies of job 
                guarantee programs established under such grants; and
                    (B) request that such agencies notify the 
                Secretary, within 30 days of the date on which the 
                guidance is received under paragraph (1), of the number 
                and types of jobs that such agency would make available 
                through each of the programs.
            (2) Application of provisions.--The requirements of 
        subsection (c) relating to wages and benefits provided to 
        participants in jobs provided under job guarantee programs, and 
        the limitations in subsection (g), shall apply to Federal 
        agencies and jobs provided under this subsection, except that a 
        Federal agency shall employ each individual under this 
        subsection for up to 3 years.
            (3) Listing of jobs on website.--The Secretary shall 
        establish procedures to ensure that jobs identified under 
        paragraph (1)(B) are listed on the appropriate public internet 
        website as provided for under subsection (d)(5)(A).
            (4) Reimbursement.--At the end of each fiscal year, the 
        Secretary shall transfer from the Fund to each Federal agency 
        that employs individuals under a job guarantee program under 
        this section, an amount necessary to reimburse such agency for 
        the cost of employing each such individual during such fiscal 
        year.
    (i) Training.--
            (1) In general.--The Secretary shall develop procedures to 
        support up to 8 weeks of paid training (through publicly or 
        privately financed training programs) to participants in job 
        guarantee programs under this section, including a new period 
        of training, not to exceed 8 weeks, prior to commencing any new 
        job under the program.
            (2) Specific populations.--With respect to certain 
        populations, as determined by the Secretary to include the 
        long-term unemployed and formerly incarcerated individuals, the 
        8-week training period may include specific job-related 
        training and counseling and other general skills training to 
        prepare such individuals to reenter the workforce.
    (j) Priorities and Audits.--
            (1) Priorities.--Prior to awarding the initial grants under 
        this section, the Secretary shall issue a list of national job 
        priorities relating to jobs to be carried out under job 
        guarantee programs, that shall include child care, care for 
        seniors and individuals with disabilities, infrastructure 
        activities.
            (2) Audits.--
                    (A) In general.--The Secretary, acting through the 
                Inspector General of the Department of Labor, shall 
                carry out annual audits of the use of grant funds 
                provided to eligible entities under this section.
                    (B) Allocation agreements and misuse of funds.--
                            (i) Allocation agreements.--An eligible 
                        entity shall enter into an allocation agreement 
                        with the Secretary that shall provide that the 
                        Secretary shall recoup any amounts paid to the 
                        entity under a grant under this section if the 
                        results of an audit under subparagraph (A) 
                        include a finding that there was an intentional 
                        or reckless misuse of such funds by such 
                        entity.
                            (ii) Loss of eligibility.--An eligible 
                        entity that is determined to have falsified or 
                        otherwise misstated data in any report 
                        submitted to the Secretary with the intent to 
                        deceive or mislead the Secretary shall be 
                        ineligible to receive additional funds under 
                        this section.
    (k) Evaluation.--The Chief Evaluation Officer at the Department of 
Labor shall provide for the conduct of an evaluation of the pilot 
program, using a rigorous design and evaluation methods to assess the 
implementation of the programs and their impact on--
            (1) employment;
            (2) private sector employment, including wages and 
        benefits;
            (3) poverty rate;
            (4) safety net and other Federal spending in the area 
        served by the program;
            (5) child health and educational outcomes;
            (6) health and well-being of those with mental, emotional, 
        and behavioral health needs;
            (7) incarceration rates; and
            (8) other economic development and individual outcome 
        indicators, as determined by the Secretary.
    (l) Expansion of Work Opportunity Credit To Include Participants in 
Job Guarantee Programs.--
            (1) In general.--Subsection (d) of section 51 of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (I), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (J), by striking the 
                        period at the end and inserting ``, or''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(K) a qualified participant in a job guarantee 
                program.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(16) Qualified participant in a job guarantee program.--
        The term `qualified participant in a job guarantee program' 
        means any individual who is certified by the designated local 
        agency as having participated in a job guarantee program under 
        section 2 of the Federal Jobs Guarantee Development Act of 2018 
        for not less than 3 months during the 6-month period ending on 
        the hiring date.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to individuals who begin work for the employer 
        after December 31, 2018.
    (m) Appropriations.--From funds in the Treasury not otherwise 
appropriated, there are appropriated to the Secretary such sums as may 
be necessary to carry out this section.
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