Title: Transformation to Competitive Employment Act
Policy area: Labor and Employment

Summary:
Transformation to Competitive 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 prohibits the issuance of new special certificates that allow payment of subminimum wages to disabled individuals and phases out existing certificates over a six year period.
The bill directs the Office of Disability Employment of Labor to award grants to provide technical assistance 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 the transitioning requirements of this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 260 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                 S. 260

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 29, 2019

  Mr. Casey (for himself and Mr. Van Hollen) introduced the following 
  bill; which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
  To assist employers providing employment under special certificates 
 issued under section 14(c) of the Fair Labor Standards Act of 1938 to 
  transform their business and program models, to support individuals 
 with disabilities to transition to 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 
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. Grant authorized.
Sec. 302. Application.
                   TITLE IV--REPORTING AND EVALUATION

Sec. 401. Impact evaluation and reporting.
Sec. 402. Wage and hour report.
                      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 models 
        to models that support individuals with intellectual, 
        developmental, mental health, and other disabilities to find 
        and retain work in competitive integrated employment;
            (2) ensure individuals with disabilities, families, local 
        and State 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 services that support 
        them as needed in integrated home and community-based 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 models, and to share that 
        information with other such special certificate holders, State 
        and local entities, and other service providers for those with 
        intellectual, developmental, mental health, and other 
        disabilities; and
            (5) support State and local governments as they revise and 
        implement their Olmstead plans to improve integrated employment 
        options and home and community-based services options for all 
        people with disabilities.

    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 such 
States and entities to transform their business and program models from 
providing employment using special certificates issued under section 
14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)) to 
models that support individuals with intellectual, developmental, and 
other disabilities by--
            (1) operating competitive integrated employment businesses;
            (2) assisting such individuals in finding and retaining 
        work in competitive integrated employment; and
            (3) providing integrated employment and integrated 
        community participation and wraparound services (in this Act 
        referred to as ``integrated services'') for such individuals.

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 providing 
                        employment using special certificates;
                            (ii) the number of such employers that 
                        provide 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 
                        employer;
                            (iv) the average number of hours such an 
                        employee works per week (including the range 
                        and median of hours), disaggregated by 
                        employer, and reported for the State as a 
                        whole; and
                            (v) the average hourly wage for such an 
                        employee (including the range and median wage), 
                        disaggregated by employer, and reported for the 
                        State as a whole;
                    (B) 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 providing 
                        employment using special certificates to 
                        providing competitive integrated employment or 
                        a combination of competitive integrated 
                        employment and integrated services, which, by 
                        the end of the 6-year grant period for the 
                        State, results in the discontinuation of 
                        employment using special certificates in the 
                        State, with the exception that any individual 
                        employed under a special certificate as of June 
                        4, 1997, may continue to be employed in the 
                        employment setting in which such individual was 
                        employed as of the day before the date of 
                        enactment of this Act, without regard to 
                        whether such setting provides integrated 
                        employment or a combination of 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 who have been employed 
                        under special certificates through such a 
                        transformation;
                            (iv) the integrated employment and 
                        integrated services that will be implemented in 
                        the State to support such individuals;
                            (v) the timeline for phasing out employment 
                        using special certificates in the State;
                            (vi) a timeline for the expansion of 
                        employers that will provide competitive 
                        integrated employment or a combination of 
                        competitive integrated employment and 
                        integrated services for individuals who have 
                        been employed under special certificates;
                            (vii) a description of the expanded 
                        integrated employment and integrated services 
                        to be provided to such individuals as a result 
                        of a transformations described in clause (i); 
                        and
                            (viii) a description of the process to be 
                        used to engage stakeholders in such 
                        transformations;
                    (C) 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 (B)(i);
                    (D) a description of the State's evaluation plan to 
                determine the impact of the grant;
                    (E) assurances that--
                            (i) the activities carried out under the 
                        grant will result in each employer in the State 
                        that provides employment using special 
                        certificates to transform as described in 
                        subparagraph (B)(i);
                            (ii) individuals with the most significant 
                        intellectual and developmental disabilities who 
                        will be impacted by such a transformation will 
                        be given priority in receiving the necessary 
                        supports and 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 or be so 
                        employed and receive the integrated services 
                        desired by the individual;
                            (iv) the State agencies responsible for 
                        developmental disability services, Medicaid, 
                        education, vocational rehabilitation, mental 
                        health services, and other supports agree to be 
                        partners in the goals of the grant;
                            (v) 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 create an advisory 
                        council described in paragraph (3) to monitor 
                        and guide the process of transforming business 
                        and program models of employers in the State; 
                        and
                            (viii) the State will cooperate with the 
                        nonprofit entity carrying out technical 
                        assistance and dissemination activities under 
                        title III; and
                    (F) 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 create an advisory council 
        composed of the following:
                    (A) At least 25 percent of the members are 
                individuals with disabilities.
                    (B) Two family members of individuals with 
                intellectual or developmental disabilities who are 
                employed under a special certificate.
                    (C) Two employers providing competitive integrated 
                employment.
                    (D) Two employers providing employment under 
                special certificates.
                    (E) A representative of a nonprofit agency 
                specializing in competitive integrated employment.
                    (F) A representative of the State developmental 
                disability agency.
                    (G) 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.).
                    (H) A representative of an agency in the State 
                described in paragraph (6) or (7) of section 8501 of 
                title 41, United States Code.
                    (I) 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.).
                    (J) 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).
                    (K) 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.).
                    (L) Representatives of other State agency and 
                disability organizations (such as the State Medicaid 
                agencies, State Protection and Advocacy systems as 
                defined in section 102 of the Developmental 
                Disabilities Assistance and Bill of Rights Act of 2000 
                (42 U.S.C. 15002), 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 6 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 6-year grant period.

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, including--
                    (A) the number of employees the eligible entity 
                employs using such special certificates;
                    (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-year period, the number 
                of individuals 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 of employees paid at a wage 
                        below the Federal minimum wage under section 
                        6(a) of the Fair Labor Standards Act of 1938 
                        (29 U.S.C. 206(a)) at the time of the 
                        application;
                            (ii) the number and type of contracts the 
                        entity has entered into during the preceding 3 
                        fiscal years;
                            (iii) the budget and the funding structure 
                        for the preceding 3 fiscal years;
                            (iv) the human resource structure; and
                            (v) the community partners described in 
                        subsection (h)(2) that have partnered with the 
                        eligible entity;
            (2) a description of activities to be funded under the 
        grant, and the goals of the grant 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;
                    (B) a description of the evidence-based, integrated 
                services--
                            (i) 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) any changes in funding sources;
                            (iii) staff training on inclusive 
                        employment 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 timeline of activities to be implemented and goals to 
        be reached on at least a quarterly basis during the 3-year 
        grant period;
            (4) 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);
            (5) assurances that--
                    (A) the activities carried out under the grant will 
                result in the transformation described in paragraph 
                (2)(A);
                    (B) individuals who are employed by the eligible 
                entity under special certificates will be employed in 
                competitive integrated employment or be so employed and 
                receive the integrated services desired by the 
                individual;
                    (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;
            (6) a description of the eligible entity's evaluation plan 
        to determine the impact of the grant;
            (7) assurances of collaboration and support from all State 
        entities (including the State Medicaid agency, the State 
        developmental disability agency, and the State vocational 
        rehabilitation agency) for whom the eligible entity is an 
        approved provider of services; and
            (8) 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 upon the expiration of the first 3-year grant 
        period under this section.
    (f) Limit on Award Number.--An eligible entity may only be awarded 
1 grant 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 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.); and
                    (I) a nonprofit agency 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.

    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) 50 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 6 
                        months after the date of enactment of the 
                        Transformation to Competitive Employment Act;
                            ``(II) 60 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 2 years 
                        after such date;
                            ``(III) 70 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 3 years 
                        after such date;
                            ``(IV) 80 percent of the wage rate in 
                        effect under section 6(a)(1), beginning 4 years 
                        after such date;
                            ``(V) 90 percent of the wage rate in effect 
                        under section 6(a)(1), beginning 5 years after 
                        such date; and
                            ``(VI) the wage rate in effect under 
                        section 6(a)(1), on the date that is 6 years 
                        after the date of enactment of the 
                        Transformation to Competitive Employment Act; 
                        or
                            ``(ii) the wage rate in effect on the day 
                        before the date of enactment of the 
                        Transformation to Competitive 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.''.

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 Employment Act.
    ``(7) Sunset.--Beginning on the day after the date on which the 
wage rate described in paragraph (1)(A)(i)(VI) takes effect, the 
authority to issue special certificates under paragraph (1) shall 
expire, and no special certificates issued under paragraph (1) shall 
have any legal effect.''.

           TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION

SEC. 301. GRANT AUTHORIZED.

    From the amounts appropriated for this title, the Secretary (acting 
through the Office of Disability Employment Policy) shall award a grant 
to a nonprofit entity to--
            (1) provide technical assistance to employers transforming 
        their business and program models from providing employment for 
        individuals with disabilities under special certificates to 
        providing competitive integrated employment to such 
        individuals; and
            (2) collect and disseminate learned practices on such 
        transformations.

SEC. 302. APPLICATION.

    (a) 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.
    (b) Contents.--Each application submitted under subsection (a) 
shall include--
            (1) a description of the nonprofit entity's expertise in 
        providing technical assistance that shall include evidence of--
                    (A) knowledge of transforming business and program 
                models providing employment using special certificates 
                to models providing competitive integrated employment;
                    (B) knowledge of methods for supporting employers, 
                including employers not receiving a grant under title 
                I, to transform as described in subparagraph (A);
                    (C) experience working with nonprofit, for-profit, 
                local, State, and Federal agencies focusing on 
                employment of youth and adults with disabilities; and
                    (D) experience working with individuals with 
                disabilities and their families; and
            (2) 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--
                    (A) expertise documenting program change;
                    (B) experience compiling recommended practices 
                related to program transformations;
                    (C) expertise regarding competitive integrated 
                employment for youth and adults with disabilities;
                    (D) expertise working with individuals with 
                disabilities and their families through systems change 
                procedures;
                    (E) expertise creating products to disseminate 
                learned information, including through web-based means;
                    (F) experience creating websites to disseminate 
                information; and
                    (G) experience working with nonprofit, for-profit, 
                local, State, and Federal agencies focusing on 
                employment of youth and adults with disabilities.
    (c) Key Personnel.--A description of the individuals at the 
nonprofit entity who will be responsible for carrying out the 
activities of this title.
    (d) Duration of Award.--A grant under this section shall be awarded 
for a period of 6 years, and shall be non-renewable.
    (e) Nonprofit Entity Defined.--In this title, 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 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 of this 
        Act); 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 of this Act.

SEC. 402. WAGE AND HOUR REPORT.

    For each year of the 6-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 of this Act, the Secretary (acting through the 
Administrator of the Wage and Hour Division of Department of Labor) 
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 paid a wage that is below the 
        minimum wage specified under section 6(a) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a));
            (2) the type of employment setting (such as segregated 
        employment, competitive integrated employment, non-employment, 
        or seeking 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, disaggregated by 
        employer and by State; and
            (4) the number of employees who have transitioned from 
        employment provided under a special certificate to competitive 
        integrated employment, disaggregated by employer and by State.

                      TITLE V--GENERAL PROVISIONS

SEC. 501. DEFINITIONS.

    In this Act:
            (1) 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)).
            (2) Integrated community participation and wraparound 
        services; integrated services.--
                    (A) In general.--The terms ``integrated community 
                participation and wraparound services'' or ``integrated 
                services'' mean services--
                            (i) designed to assist individuals with 
                        disabilities in acquiring, retaining, and 
                        improving skills necessary to reside 
                        successfully in home and community-based 
                        settings;
                            (ii) provided consistent with written plans 
                        of care; and
                            (iii) that meet the following requirements 
                        with respect to the setting in which the 
                        services are provided:
                                    (I) The services are provided to an 
                                individual in a setting that is in the 
                                community, which allows the individual 
                                to engage in community life, receive 
                                the services in the community, and have 
                                the same access to the community as an 
                                individual not receiving the services.
                                    (II) Multiple service settings are 
                                provided as options to the individual 
                                receiving the services.
                                    (III) The service setting optimizes 
                                individual initiative, autonomy, and 
                                independence.
                                    (IV) The service setting 
                                facilitates choice regarding services 
                                and supports, and choice regarding who 
                                provides the services.
                    (B) Exclusions.--The following settings do not meet 
                the requirements described in subparagraph (A)(iii):
                            (i) A nursing facility.
                            (ii) An institution for mental diseases.
                            (iii) An intermediate care facility for 
                        individuals with intellectual disabilities.
            (3) Integrated employment.--The term ``integrated 
        employment'' has the meaning given the term ``competitive 
        integrated employment'' in subparagraphs (B) and (C) of section 
        7(5) of the Rehabilitation Act of 1973 (29 U.S.C. 705(5)).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (5) 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)).
            (6) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        the territory of Guam.

SEC. 502. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act, 
$300,000,000 for fiscal years 2020 through 2025.
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