Title: Coal Community Empowerment Act of 2017
Policy area: Taxation

Summary:
Coal Community Empowerment Act of 2017
This bill amends the Internal Revenue Code to authorize tax incentives and grants for areas impacted by employment in coal mines.
Coal Community Zones are counties that either: (1) lost at least 50 coal mining jobs from 2011-2015 out of a total of not more than 20,000 employed workers in 2011, or (2) had at least 5% of their employment in coal mining on average from 2011-2015.
For taxpayers located in or investing in the zones, the bill allows:
The Department of Labor and the Department of Education must jointly establish grant programs for:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1743 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1743

To amend the Internal Revenue Code of 1986 to create tax incentives for 
 coal community zones, to provide education and training opportunities 
 for individuals living and working in coal communities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2017

  Mr. Bennet introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to create tax incentives for 
 coal community zones, to provide education and training opportunities 
 for individuals living and working in coal communities, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Coal Community 
Empowerment Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--COAL COMMUNITY ZONE TAX INCENTIVES

Sec. 101. Coal community zones.
         TITLE II--EDUCATION AND TRAINING FOR COAL COMMUNITIES

Sec. 201. Definitions.
Sec. 202. Individual support accounts.
Sec. 203. Priority for employment and training activities for 
                            qualifying individuals.
Sec. 204. Development grants.
Sec. 205. Business training funds.
Sec. 206. Interagency agreement.

              TITLE I--COAL COMMUNITY ZONE TAX INCENTIVES

SEC. 101. COAL COMMUNITY ZONES.

    (a) In General.--Subchapter Y of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

                    ``PART IV--COAL COMMUNITY ZONES

``Sec. 1400V-1. Definition of coal community zone.
``Sec. 1400V-2. Application of empowerment zone incentives to coal 
                            community zones.
``Sec. 1400V-3. Commercial revitalization deduction.
``Sec. 1400V-4. Exclusion of capital gains.
``Sec. 1400V-5. Application of new markets tax credit to investments in 
                            community development entities serving coal 
                            community zones.

``SEC. 1400V-1. DEFINITION OF COAL COMMUNITY ZONE.

    ``(a) In General.--For purpose of this part, the term `coal 
community zone' means any county in the United States in which--
            ``(1)(A) there were not less than 50 fewer individuals 
        employed at coal mines in such county for calendar year 2015 as 
        compared to calendar year 2011 (determined based on data 
        collected by the Federal Mine Safety and Health 
        Administration), and
            ``(B) the quarterly average of the total number of 
        employees employed in such county for the first calendar year 
        in the applicable period (as estimated by the Bureau of Labor 
        Statistics) was not more than 20,000, or
            ``(2) not less than an average of 5 percent of the total 
        employment within the county during the applicable period was 
        at coal mines.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Applicable period.--The term `applicable period' 
        means the period beginning after December 31, 2010, and ending 
        before January 1, 2016.
            ``(2) Coal mine.--The term `coal mine' has the meaning 
        given such term under section 3(h)(2) of the Federal Mine 
        Safety and Health Act of 1977.

``SEC. 1400V-2. APPLICATION OF EMPOWERMENT ZONE INCENTIVES TO COAL 
              COMMUNITY ZONES.

    ``(a) In General.--For purposes of this title, except as otherwise 
provided in this section, a coal community zone shall be treated as an 
empowerment zone designated under subchapter U.
    ``(b) Period of Designation.--A designation as an empowerment zone 
under subsection (a) shall remain in effect during the period beginning 
on January 1, 2018, and ending on December 31, 2022.
    ``(c) Special Rules for Bonds.--
            ``(1) In general.--In the case of a coal community zone 
        bond--
                    ``(A) such bond shall not be treated as a private 
                activity bond for purposes of section 146, and
                    ``(B) section 1394(c) shall not apply.
            ``(2) Limitation on amount of bonds.--
                    ``(A) In general.--There is a national coal 
                community zone bond limitation for all coal community 
                zone bonds. Such limitation is $1,000,000,000.
                    ``(B) Allocation of limitation.--The Secretary 
                shall allocate the limitation under subparagraph (A) to 
                States in which there are located coal community zones. 
                Such allocation shall be in proportion to the 
                population of residents in coal community zones in such 
                States relative to the total population of residents in 
                all coal community zones. The limitation allocated to a 
                State under the preceding sentence shall be allocated 
                to issuers of coal community zone bonds in such State.
                    ``(C) Designation subject to limitation amount.--
                The maximum face amount of bonds issued which may be 
                designated under paragraph (3)(A) shall not exceed the 
                limitation amount allocated to such issuer under 
                subparagraph (B).
            ``(3) Coal community bond.--For purposes of this 
        subsection, the term `coal community bond' means any bond which 
        would be described in section 1394(a) if--
                    ``(A) such bond was designated for purposes of this 
                subsection by the bond issuer, and
                    ``(B) only coal community zones were taken into 
                account under sections 1397C and 1397D.
    ``(d) Special Rules for Employment Credit.--In applying section 
1396 to a coal community zone, the term `qualified zone employee' shall 
not include any individual who begins work for the employer before 
January 1, 2018. Rules similar to section 51(i)(2) shall apply for 
purposes of the preceding sentence.
    ``(e) Special Rules for Increased Section 179 Expensing.--
            ``(1) In general.--In applying section 1397A to a coal 
        community zone--
                    ``(A) `$500,000' shall be substituted for `$35,000' 
                in subsection (a)(1)(A), and
                    ``(B) in lieu of applying subsection (a)(2), the 
                dollar amount in effect under section 179(b)(2) shall 
                be increased by the lesser of--
                            ``(i) $500,000, or
                            ``(ii) the cost of section 179 property 
                        which is qualified zone property (as defined in 
                        section 179D) placed in service during the 
                        taxable year.
            ``(2) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2018, the $500,000 
                amounts in subparagraphs (A) and (B)(i) of paragraph 
                (1) shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2017' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $10,000.
    ``(f) Special Rules for Nonrecognition of Gain on Rollover of 
Empowerment Zone Investments.--In applying section 1397B to a coal 
community zone--
            ``(1) `December 31, 2017' shall be substituted for `the 
        date of the enactment of this paragraph' in subsection 
        (b)(1)(A)(iii), and
            ``(2) `January 1, 2023' shall be substituted for `the day 
        after the date set forth in section 1391(d)(1)(A)(i)' in 
        subsection (b)(1)(A)(iv).

``SEC. 1400V-3. COMMERCIAL REVITALIZATION DEDUCTION.

    ``For purposes of section 1400I--
            ``(1) a coal community zone shall be treated as a renewal 
        community, and
            ``(2) in applying such section to a coal community zone--
                    ``(A) subsection (d)(2)(A) shall be applied by 
                substituting `each calendar year after 2017 and before 
                2023 is $16,000,000 for each coal community zone (as 
                defined in section 1400V-1) in the State' for `each 
                calendar year after 2001 and before 2010 is $12,000,000 
                for each renewal community in the State', and
                    ``(B) subsection (g) shall be applied by 
                substituting `December 31, 2022' for `December 31, 
                2009'.

``SEC. 1400V-4. EXCLUSION OF CAPITAL GAINS.

    ``(a) In General.--Gross income does not include any qualified 
capital gain from the sale or exchange of a qualified coal community 
zone asset held for more than 5 years.
    ``(b) Qualified Coal Community Zone Asset.--For purposes of this 
section--
            ``(1) In general.--The term `qualified coal community zone 
        asset' means--
                    ``(A) any qualified coal community zone stock,
                    ``(B) any qualified coal community zone partnership 
                interest, and
                    ``(C) any qualified coal community zone business 
                property.
            ``(2) Qualified coal community zone stock.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `qualified coal community 
                zone stock' means any stock in a domestic corporation 
                if--
                            ``(i) such stock is acquired by the 
                        taxpayer after December 31, 2017, and before 
                        January 1, 2023, at its original issue 
                        (directly or through an underwriter) from the 
                        corporation solely in exchange for cash,
                            ``(ii) as of the time such stock was 
                        issued, such corporation was a coal community 
                        zone business (or, in the case of a new 
                        corporation, such corporation was being 
                        organized for purposes of being a coal 
                        community zone business), and
                            ``(iii) during substantially all of the 
                        taxpayer's holding period for such stock, such 
                        corporation qualified as a coal community zone 
                        business.
                    ``(B) Redemptions.--A rule similar to the rule of 
                section 1202(c)(3) shall apply for purposes of this 
                paragraph.
            ``(3) Qualified coal community zone partnership interest.--
        The term `qualified coal community zone partnership interest' 
        means any capital or profits interest in a domestic partnership 
        if--
                    ``(A) such interest is acquired by the taxpayer 
                after December 31, 2017, and before January 1, 2023, 
                from the partnership solely in exchange for cash,
                    ``(B) as of the time such interest was acquired, 
                such partnership was a coal community zone business 
                (or, in the case of a new partnership, such partnership 
                was being organized for purposes of being a coal 
                community zone business), and
                    ``(C) during substantially all of the taxpayer's 
                holding period for such interest, such partnership 
                qualified as a coal community zone business.
        A rule similar to the rule of paragraph (2)(B) shall apply for 
        purposes of this paragraph
            ``(4) Qualified coal community zone business property.--
                    ``(A) In general.--The term `qualified coal 
                community zone business property' means tangible 
                property if--
                            ``(i) such property was acquired by the 
                        taxpayer by purchase (as defined in section 
                        179(d)(2)) after December 31, 2017, and before 
                        January 1, 2023,
                            ``(ii) the original use of such property in 
                        the coal community zone commences with the 
                        taxpayer, and
                            ``(iii) during substantially all of the 
                        taxpayer's holding period for such property, 
                        substantially all of the use of such property 
                        was in a coal community zone business of the 
                        taxpayer.
                    ``(B) Special rule for substantial improvements.--
                The requirements of clauses (i) and (ii) of 
                subparagraph (A) shall be treated as satisfied with 
                respect to--
                            ``(i) property which is substantially 
                        improved by the taxpayer before January 1, 
                        2023, and
                            ``(ii) any land on which such property is 
                        located.
                The determination of whether a property is 
                substantially improved shall be made under clause (ii) 
                of section 1400B(b)(4)(B), except that `December 31, 
                2017' shall be substituted for `December 31, 1997' in 
                such clause.
            ``(5) Coal community zone business.--For purposes of this 
        section, the term `coal community zone business' means any 
        entity or proprietorship which would be a qualified business 
        entity or qualified proprietorship under section 1397C if 
        references to coal community zones were substituted for 
        references to empowerment zones.
    ``(c) Qualified Capital Gain.--For purposes of this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified capital gain' means any gain 
        recognized on the sale or exchange of--
                    ``(A) a capital asset, or
                    ``(B) property used in the trade or business (as 
                defined in section 1231(b)).
            ``(2) Gain before 2018 or after 2022 not qualified.--The 
        term `qualified capital gain' shall not include any gain 
        attributable to periods before January 1, 2018, or after 
        December 31, 2022.
            ``(3) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (3), (4), and (5) of section 1400B(e) shall apply 
        for purposes of this subsection.
    ``(d) Certain Rules To Apply.--For purposes of this section, rules 
similar to the rules of paragraphs (5), (6), and (7) of subsection (b), 
and subsections (f) and (g), of section 1400B shall apply; except that 
for such purposes section 1400B(g)(2) shall be applied by substituting 
`January 1, 2018' for `January 1, 1998' and `December 31, 2022' for 
`December 31, 2014'.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section, 
including regulations to prevent the abuse of the purposes of this 
section.

``SEC. 1400V-5. APPLICATION OF NEW MARKETS TAX CREDIT TO INVESTMENTS IN 
              COMMUNITY DEVELOPMENT ENTITIES SERVING COAL COMMUNITY 
              ZONES.

    ``For purposes of section 45D--
            ``(1) a qualified community development entity shall be 
        eligible for an allocation under subsection (f)(2) thereof of 
        the increase in the new markets tax credit limitation described 
        in paragraph (2) only if a significant mission of such entity 
        is the recovery and redevelopment of population census tracts 
        within coal community zones,
            ``(2) the new markets tax credit limitation otherwise 
        determined under subsection (f)(1) thereof shall be increased 
        by an amount equal to $300,000,000 for each of calendar years 
        2017, 2018, 2019, and 2020, to be allocated among qualified 
        community development entities to make qualified low-income 
        community investments within coal community zones, and
            ``(3) subsection (f)(3) thereof shall be applied separately 
        with respect to the amount of the increase under paragraph 
        (2).''.
    (b) Conforming Amendments.--
            (1) Section 1394(f)(3)(B) of the Internal Revenue Code of 
        1986 is amended by inserting ``or any coal community zone'' 
        after ``District of Columbia Enterprise Zone''.
            (2) The table of parts for subchapter Y of chapter 1 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new item:

                   ``Part IV--Coal Community Zones''.

         TITLE II--EDUCATION AND TRAINING FOR COAL COMMUNITIES

SEC. 201. DEFINITIONS.

    In this title:
            (1) Coal community individual.--The term ``coal community 
        individual'' means an individual--
                    (A) with a principal residence in a coal community 
                zone; or
                    (B) who works in a coal community zone.
            (2) Coal community student.--The term ``coal community 
        student'' means a coal community individual attending an 
        educational program.
            (3) Coal community zone.--The term ``coal community zone'' 
        has the meaning given the term in section 1400V-1 of the 
        Internal Revenue Code of 1986, as added by section 101.
            (4) Coal-fired generator.--The term ``coal-fired 
        generator'' means an electric utility steam generating unit 
        that burns coal for 50 percent or more of the average annual 
        heat input.
            (5) Coal-related employee.--The term ``coal-related 
        employee'' means, with respect to any county, any individual 
        who--
                    (A) is employed at a coal mine (as defined in 
                section 3(h)(2) of the Federal Mine Safety and Health 
                Act of 1977(30 U.S.C. 802)) in such county, or
                    (B) is employed at a coal-fired generator located 
                in such county by the owner of such coal-fired 
                generator.
            (6) Eligible entity.--The term ``eligible entity'' means a 
        partnership between--
                    (A)(i) an institution of higher education (as 
                defined in section 102 of the Higher Education Act of 
                1965 (20 U.S.C. 1002));
                    (ii) a nonprofit educational organization; or
                    (iii) a provider identified under section 122 of 
                the Workforce Innovation and Opportunity Act (29 U.S.C. 
                3152); and
                    (B) not less than 1 business or industry that 
                intends to expand or hire additional or new workers who 
                are coal community individuals or who previously worked 
                in the coal community zone.
            (7) In-demand industry sector or occupations.--The term 
        ``in-demand industry sector or occupation'' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (8) Local administrator.--The term ``local administrator'' 
        means an entity that--
                    (A) is--
                            (i) a local governmental agency;
                            (ii) a partnership consisting of a local 
                        governmental agency and an institution of 
                        higher education or a nonprofit organization;
                            (iii) a local board (as defined in section 
                        3 of the Workforce Innovation and Opportunity 
                        Act (29 U.S.C. 3102));
                            (iv) a State governmental agency; or
                            (v) a nonprofit organization; and
                    (B) has been selected by the local government of a 
                coal community zone to administer the individual 
                support account program under section 202 and the 
                business training fund program under section 205, to 
                the extent the local government elects to apply for 
                grants under either such section.
            (9) Qualifying individual.--The term ``qualifying 
        individual'' means an individual--
                    (A) whose principal residence is within a coal 
                community zone; and
                    (B) whom the local administrator of the coal 
                community zone determines is in need of additional 
                education and training in order to obtain long-term 
                employment at a high wage.
            (10) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' has the meaning given 
        the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (11) Secretaries.--The term ``Secretaries'' means the 
        Secretary of Education and the Secretary of Labor.

SEC. 202. INDIVIDUAL SUPPORT ACCOUNTS.

    (a) Program Authorized.--
            (1) In general.--For each fiscal year for which funds are 
        available under subsection (f), the Secretaries, in accordance 
        with the interagency agreement described in section 206, shall 
        carry out a program awarding grants to local administrators of 
        coal community zones, to enable the local administrators to use 
        such funds to manage individual support accounts for qualifying 
        individuals.
            (2) Duration.--
                    (A) In general.--Grants awarded under paragraph (1) 
                shall be expended for approved education and training 
                by the last day of the 3-year period beginning on the 
                award date.
                    (B) Renewal.--The Secretaries may renew a grant 
                under paragraph (1) once for an additional 2-year 
                period, if the local administrator demonstrates that 
                the program under the grant has had a record of success 
                and high-quality outcomes.
    (b) Application.--A local administrator of a coal community zone 
desiring funds under this section shall submit an application to the 
Secretaries at such time, in such manner, and containing such 
information, as the Secretaries may require. Such application shall 
include--
            (1) the number of qualifying individuals in the community;
            (2) a plan for allocating funds to qualifying individuals;
            (3) a description of the providers of education and 
        training in the community and their outcomes-based track record 
        of success, including, for such programs--
                    (A) the student completion rates of the programs of 
                education and training;
                    (B) the employment rates for students completing 
                the programs of education and training as of 1 year, 3 
                years, and 5 years after the completion of the program; 
                and
                    (C) the annual salary of students completing the 
                programs of education and training as of 1 year, 3 
                years, and 5 years after completion of the program; and
            (4) if new eligible education and training providers are 
        expected to open or expand to the coal community zone or the 
        local administrator plans to recruit or encourage new such 
        providers--
                    (A) a description of such providers; and
                    (B) evidence to demonstrate such providers will be 
                high-quality and result in the employment of a 
                significant percentage of individuals in high-wage, in 
                demand industries.
    (c) Distribution of Funds.--The Secretaries shall award funds under 
this section to local administrators that submit an application under 
subsection (b) based on--
            (1) the number of people affected by the decline in 
        employment opportunities for coal-related employees during the 
        applicable period;
            (2) the quality of the providers of education and training 
        in the community; and
            (3) the likelihood that funding will result in employment 
        in a high-demand, high-wage industry for coal-related employees 
        or others in the community in need of additional education and 
        training.
    (d) Use of Funds.--
            (1) In general.--A local administrator receiving funds 
        under this section for a coal community zone shall use such 
        funds to establish individual support accounts described in 
        paragraph (2) for qualifying individuals.
            (2) Individual support accounts.--
                    (A) In general.--Amounts made available through an 
                individual support account established for a qualifying 
                individual shall be used to pay for education and 
                training costs described in paragraph (3) that will 
                prepare the qualifying individual for long-term, high-
                wage employment.
                    (B) Amount.--For any fiscal year, the amount 
                provided under this section for an individual support 
                account of a qualifying individual for a fiscal year 
                shall not exceed the maximum amount of a Federal Pell 
                Grant for the most recent award year.
                    (C) Limited funds.--If, for any fiscal year, the 
                amount of funds provided under this section to a local 
                administrator for a coal community zone are not enough 
                to fund individual support accounts for all qualifying 
                individuals in the coal community zone requesting such 
                accounts, the local administrator shall give a priority 
                to qualifying individuals requesting to use the account 
                funds for education and training programs that--
                            (i) prepare individuals for in-demand 
                        industry sectors or occupations; and
                            (ii) have strong outcomes based on the 
                        criteria described in subsection (e)(1)(B).
            (3) Eligible education and training programs.--
                    (A) In general.--Amounts provided in an individual 
                support account for a qualifying individual may be used 
                for costs related to a program of education and 
                training approved by the local administrator under 
                subparagraph (B), which may include--
                            (i) a program offered by an institution of 
                        higher education (as defined in section 102 of 
                        the Higher Education Act of 1965 (20 U.S.C. 
                        1002));
                            (ii) a program of training, including a 
                        program leading to a recognized postsecondary 
                        credential, offered by an eligible provider of 
                        training services identified under section 122 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3152); and
                            (iii) costs (including associated 
                        education, curriculum, and mentorship costs), 
                        related to an apprenticeship, internship, or 
                        externship--
                                    (I) in an in-demand industry sector 
                                or occupation; or
                                    (II) for a position where there is 
                                a reasonable expectation of long-term 
                                employment.
                    (B) Additional education and training programs.--A 
                local administrator shall provide a process through 
                which the administrator may approve the use of funds in 
                an individual support account for education or training 
                expenses. Through such process, the administrator 
                shall--
                            (i) allow a qualified individual to request 
                        the approval of a particular provider or 
                        program of education and training, or a 
                        particular education and training expense, on 
                        an individual basis;
                            (ii) before approving a provider, program 
                        of education or training, or other education 
                        and training expense, consider--
                                    (I) the local industry demands;
                                    (II) the likelihood that an 
                                individual will be employed following 
                                the completion of the program of 
                                education or training; and
                                    (III) the quality and effectiveness 
                                of the program of education or training 
                                offered by the provider, based on the 
                                outcomes-based record of success of the 
                                provider, including--
                                            (aa) the student completion 
                                        rates of the programs of 
                                        education and training offered 
                                        by the provider;
                                            (bb) the employment rates 
                                        for students completing the 
                                        programs of education and 
                                        training as of 1 year, 3 years, 
                                        and 5 years after the 
                                        completion of the program; and
                                            (cc) the annual salary of 
                                        students completing the 
                                        programs of education and 
                                        training as of 1 year, 3 years, 
                                        and 5 years after completion of 
                                        the program; and
                            (iii) make a determination that such 
                        provider is in the best interest of the coal 
                        community zone and the qualifying individuals.
    (e) Reports.--
            (1) Local administrator reports.--Each local administrator 
        receiving funds under this section for a fiscal year shall, for 
        each such year, prepare and submit a report to the Secretaries 
        that includes--
                    (A) a description of the achievements of the 
                program supported under this section, including the 
                program's levels of performance achieved with respect 
                to the primary indicators of performance described in 
                section 116(b)(2)(A)(i) of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3141(b)(2)(A)(i));
                    (B) a description of the outcomes-based results for 
                the programs of training and education for which funds 
                were used under this section, in the aggregate and 
                individually, including--
                            (i) the student completion rates of the 
                        program of education and training;
                            (ii) the employment rates for students 
                        completing the program of education and 
                        training as of 1 year, 3 years, and 5 years 
                        after the completion of the program; and
                            (iii) the annual salary of students 
                        completing the program of education and 
                        training as of 1 year, 3 years, and 5 years 
                        after completion of the program;
                    (C) the return on investment of funds provided to 
                individual support accounts under this section; and
                    (D) any other information that the Secretaries may 
                require.
            (2) Report to congress.--The Secretaries shall prepare and 
        submit an annual report to Congress regarding the program 
        supported under this section.
            (3) Institute of education sciences evaluation.--The 
        Director of the Institute of Education Sciences shall evaluate 
        the effectiveness, quality, and return in investment of funds 
        under this section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Labor to carry out this section such 
sums as may be necessary for each of fiscal years 2018 through 2023.

SEC. 203. PRIORITY FOR EMPLOYMENT AND TRAINING ACTIVITIES FOR 
              QUALIFYING INDIVIDUALS.

    (a) Required Local Employment and Training Activities.--Section 
134(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 
3174(c)) is amended by adding at the end the following:
            ``(4) Priority individuals.--
                    ``(A) In general.--With respect to funds allocated 
                to a local area for adult employment and training 
                activities under paragraph (2)(A) or (3) of section 
                133(b) or for dislocated worker employment and training 
                activities under section 133(b)(2)(B), priority shall 
                be given to priority individuals for receipt of career 
                services described in paragraph (2) and training 
                services. The appropriate local board and the Governor 
                shall direct the one-stop operators in the local area 
                with regard to making determinations related to such 
                priority.
                    ``(B) Definition.--In this paragraph, the term 
                `priority individual' means a qualifying individual, as 
                defined in section 201 of the Coal Community 
                Empowerment Act of 2017, who is eligible to receive the 
                service involved under this subsection.''.
    (b) Allowable Local Employment and Training Activities.--Section 
134(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 
3174(d)) is amended by adding at the end the following:
            ``(6) Priority individuals.--
                    ``(A) In general.--With respect to funds allocated 
                to a local area for adult employment and training 
                activities under paragraph (2)(A) or (3) of section 
                133(b) or for dislocated worker employment and training 
                activities under section 133(b)(2)(B), priority shall 
                be given to priority individuals for receipt of 
                services described in paragraphs (1) through (5) of 
                this subsection. The appropriate local board and the 
                Governor shall direct the one-stop operators in the 
                local area with regard to making determinations related 
                to such priority.
                    ``(B) Definition.--In this paragraph, the term 
                `priority individual' means a qualifying individual, as 
                defined in section 201 of the Coal Community 
                Empowerment Act of 2017, who is eligible to receive the 
                service involved under this subsection.''.

SEC. 204. DEVELOPMENT GRANTS.

    (a) Program Authorized.--
            (1) In general.--From amounts made available to carry out 
        this section, the Secretaries, in accordance with the 
        interagency agreement described in section 206, shall award 
        grants, on a competitive basis, to eligible entities, to 
        support the eligible entities in the development, revamping, 
        improvement, or expansion of programs of education and training 
        for coal community zones in in-demand industry sectors or 
        occupations or in industries in local demand.
            (2) Duration.--
                    (A) In general.--A grant awarded under this section 
                shall be for a period of 3 years.
                    (B) Renewal.--The Secretaries may renew a grant 
                awarded under section for a single 2-year period, if--
                            (i) the eligible entity demonstrates that 
                        the program under the grant has a record of 
                        success and high-quality outcomes; and
                            (ii) the local government or local 
                        administrator that submitted the demonstration 
                        of application approval under the initial 
                        application under subsection (b)(1)(E) approves 
                        of the renewal.
    (b) Application.--
            (1) In general.--An eligible entity desiring a grant under 
        this section shall submit an application to the Secretaries at 
        such time, in such manner, and containing such information as 
        the Secretaries may require, including--
                    (A) the number of coal community students in the 
                coal community zone to be served;
                    (B) a plan for allocating funds to coal community 
                students;
                    (C) a description of the eligible entity's track 
                record of success with the programs of education and 
                training to be supported under the grant, including--
                            (i) the student completion rates of the 
                        programs of education and training;
                            (ii) the employment rates for students 
                        completing the programs of education and 
                        training as of 1 year, 3 years, and 5 years 
                        after the completion of the program;
                    (D) a demonstration that the eligible entity is of 
                high quality and will be a benefit to the coal 
                community students and the coal community zone;
                    (E) a demonstration of application approval from 
                the local government of the coal community zone or, in 
                the case of a coal community zone receiving a grant 
                under section 202, the local administrator for such 
                grant, including a statement that the application and 
                funds requested under the application is in the best 
                interest of the coal community zone and coal community 
                students; and
                    (F) an assurance that if the program supported 
                under the grant does not enroll the required percentage 
                of coal community students under subsection (c)(1), the 
                eligible entity shall reimburse the Secretaries, in the 
                amount and manner described in subsection (d).
    (c) Use of Funds.--An eligible entity receiving a grant under this 
program shall use such funds for the development, revamping, 
improvement, or expansion of a high-quality training and education 
program that--
            (1) predominantly serves coal community students by 
        ensuring that not less than 75 percent of the students enrolled 
        in the program are coal community students;
            (2) provides training in high-wage, high-demand industries 
        or in industries in local demand;
            (3) is free or offered at a very low cost to coal community 
        students; and
            (4) enters into an agreement with each coal community 
        student that enrolls in the program to ensure that the eligible 
        entity can obtain the information necessary for the report 
        under subsection (e)(1).
    (d) Reimbursement.--
            (1) In general.--An eligible entity that does not enroll 
        the required percentage described in subsection (c)(1) shall 
        reimburse the Secretaries in the amount equal to the product 
        of--
                    (A) the average per-student cost of the program; 
                and
                    (B) the number of additional coal community 
                students that would have been needed in order for the 
                program to meet the 75 percent coal community student 
                enrollment requirement under subsection (c)(1).
            (2) Use of reimbursed funds.--Any funds reimbursed to the 
        Secretaries under this subsection may be used by the 
        Secretaries to award additional grants under this section.
    (e) Reports.--
            (1) Eligible entity report.--Each eligible entity receiving 
        a grant under this section shall prepare and submit to the 
        Secretaries an annual report regarding the outcomes of the 
        grant, including--
                    (A) the number of students, and the number of coal 
                community students, enrolled in the program supported 
                under the grant;
                    (B) the number of students, and the number of coal 
                community students, completing such program;
                    (C) the number of students, and the number of coal 
                community students, who have completed such program and 
                who are employed after completion of such program as 
                of--
                            (i) 6 months after the date of completion;
                            (ii) 1 year after the date of completion;
                            (iii) 3 years after the date of completion; 
                        and
                            (iv) 5 years after the date of completion;
                    (D) the average wage of students, and the average 
                wage of coal community students, who have completed 
                such program as of--
                            (i) 6 months after the date of completion;
                            (ii) 1 year after the date of completion; 
                        and
                            (iii) 3 years after the date of completion; 
                        and
                    (E) the satisfaction rate of all students, and the 
                satisfaction rate of coal community students, including 
                students who completed the program and students who did 
                not complete--
                            (i) 6 months after the date of completion 
                        or leaving the program;
                            (ii) 1 year after the date of completion or 
                        leaving the program; and
                            (iii) 3 years after the date of completion 
                        or leaving the program.
            (2) Report to congress.--The Secretaries shall prepare and 
        submit an annual report to Congress regarding the grants 
        awarded under this section.
            (3) Institute of education sciences evaluation.--The 
        Director of the Institute of Education Sciences shall evaluate 
        the effectiveness, quality, and return in investment of grant 
        funds provided under this section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Education to carry out this section 
such sums as may be necessary for fiscal years 2018 through 2023.

SEC. 205. BUSINESS TRAINING FUNDS.

    (a) Program Authorized.--
            (1) In general.--From amounts made available under 
        subsection (e), the Secretaries, in accordance with the 
        interagency agreement under section 206, shall award grants, on 
        a competitive basis, to local administrators to enable the 
        local administrators to award subgrants under subsection (c) to 
        businesses to provide in-house training, and future employment, 
        to coal community individuals.
            (2) Duration.--
                    (A) In general.--A grant awarded under this section 
                shall be for a 3-year period.
                    (B) Limitation.--A local administrator may not 
                receive more than 1 grant under this section.
    (b) Applications.--A local administrator desiring a grant under 
this section shall submit to the Secretaries an application at such 
time, in such manner, and containing such information as the 
Secretaries may require, including--
            (1) the number of coal community individuals in the coal 
        community zone to be served;
            (2) the number of coal community individuals that will 
        benefit from the program;
            (3) a description of the eligible businesses described in 
        subsection (c)(2) that will participate in the program proposed 
        under the grant, including the in-demand industry sectors or 
        occupations represented by the businesses;
            (4) the target employment numbers of participating 
        individuals for the eligible businesses participating;
            (5) a plan for allocating grant funds to businesses; and
            (6) a description of the process through which the coal 
        community agency will evaluate any requests to waive the 
        employment requirement under subsection (c)(3)(B).
    (c) Subgrants.--
            (1) In general.--Each local administrator receiving a grant 
        under this section shall use grant funds to award subgrants, to 
        eligible businesses described in paragraph (2), to enable the 
        eligible businesses to provide in-house training to coal 
        community individuals in preparation for employment with or 
        advancement within the eligible businesses.
            (2) Eligibility.--In order to be eligible for a subgrant 
        under this subsection, a business shall--
                    (A) be a business located in a coal community zone; 
                and
                    (B) provide an assurance that the business will 
                hire, for a minimum of one year, each coal community 
                individual who completes the in-house training provided 
                under the subgrant or will reimburse the local 
                administrator in accordance with paragraph (3).
            (3) Reimbursement of training for employees not hired.--
                    (A) In general.--A business that does not hire or 
                retain, for a period of not less than 1 year, all coal 
                community individuals who complete the in-house 
                training provided under a subgrant under this 
                subsection shall reimburse the local administrator in 
                the amount equal to the cost of the training provided 
                to such employee, subject to subparagraph (B).
                    (B) Waiver.--Upon request by a business receiving a 
                subgrant under this subsection, the local administrator 
                may waive the reimbursement requirement of subparagraph 
                (A) for a business if the local administrator 
                determines that--
                            (i) the business made substantial effort to 
                        comply with the employment requirement under 
                        subparagraph (A);
                            (ii) hired a significant percentage of 
                        individuals relative to the amount of funds 
                        provided under the grant; or
                            (iii) the decision made by the business to 
                        not hire or retain an individual was for cause.
                    (C) Use of reimbursed funds.--By not later than 30 
                days after receiving a reimbursement under paragraph 
                (3)(A), a local administrator--
                            (i) shall report the receipt of such funds 
                        to the Secretaries; and
                            (ii) may apply to the Secretaries for 
                        permission to reallocate the funds received 
                        under this paragraph during the grant period.
    (d) Reports.--
            (1) Reports by businesses.--Each business receiving a 
        subgrant under subsection (c) shall prepare and submit an 
        annual report to the local administrator regarding the 
        subgrant, including--
                    (A) the numbers of coal community individuals--
                            (i) beginning the training provided under 
                        this section;
                            (ii) completing such training;
                            (iii) hired by the business within 3 months 
                        of completion; and
                            (iv) still employed by the business, as of 
                        6 months, 1 year, 2 years, and 4 years after 
                        the completion of the training; and
                    (B) the average salary of the coal community 
                individuals hired after completing the training.
            (2) Reports by coal community agencies.--Each local 
        administrator receiving a grant under this section shall 
        prepare and submit an annual report to the Secretaries 
        regarding the grant under this section.
            (3) Report by secretaries.--The Secretaries shall prepare 
        and submit an annual report to Congress regarding the grant 
        program under this section that includes the information 
        provided by the coal community agencies under paragraph (2).
            (4) Institute of education sciences evaluation.--The 
        Director of the Institute of Education Sciences shall evaluate 
        the effectiveness, quality, and return in investment of grant 
        funds provided under this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Labor to carry out this section such 
sums as may be necessary for each of fiscal years 2018 through 2023.

SEC. 206. INTERAGENCY AGREEMENT.

    The Secretary of Education and the Secretary of Labor shall jointly 
administer the programs under sections 203, 204, and 205 in accordance 
with such terms as the Secretaries set forth in an interagency 
agreement. Such interagency agreement shall include, at a minimum and 
for each such program--
            (1) a description of the respective roles and 
        responsibilities of the Secretaries (both jointly and 
        separately); and
            (2) provisions establishing that, for each of the programs 
        under such sections, the Secretary to whom funds are authorized 
        to be appropriated under section 202(f), 204(f), or 205(e) 
        shall have fiscal authority over the program carried out under 
        such section and will be responsible for the obligation and 
        disbursement of such funds.
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