H.R 4050 THE REEMPLOYMENT ACT OF 1994 SUMMARY The goals of the Reemployment Act, introduced by Chairmen Ford and Williams, are to provide improved initial services to unemployed workers so that they can return quickly to the labor market; to subsidize long term training and skill development; and to roll out a national system of One-Stop Training Centers. This legislation as a whole has five components: reemployment provisions for dislocated workers, including income support to encourage long-term training, flexibility for States in the provision of UI benefits (only in H.R 4040, see attached addendum); the establishment of a national system of One-Stop Shopping Centers, the creation of state and local labor market information systems, and authorization of JTPA reinvention labs. Title I: Dislocated Worker Provisions Allotments: 25% of the annual allocation is reserved at the Secretary's discretion to carry out national activities. 75% of funds must be allotted to the States applying the current JTPA formula except that the long term unemployed factor is based on 26 weeks rather than 15 weeks to conform to the REA eligibility requirements. There is also a 130% stop gain and 90% hold harmless provision. States' Roles and Responsibilities: States must establish a "dislocated worker unit" (DWU) at the state level. The DWU must carry out the following activities: rapid response; information gathering on plant closings; program support; coordination; funds and assistance for plant buyout studies. The Governor, after consultation with the State council and local elected officials designates substate areas (SSA) of at least 200,000. Local Roles and Responsibilities: States and localities must establish a network of career centers, at least one per SSA. The legislation envisions a competitive process for the selection of career center operators. Each substate area should have one or more career centers. Selections will be made every four years. Any entity, including ES, SDA grant recipients or administrative entities under JTPA, substate grantees under this title, other public agencies, community colleges and area vocational schools, community based and other private, non-profit and for profit organizations and entities, are eligible to apply for selection as a career center operator. Services. All dislocated workers are eligible to receive basic services, intensive services and education and training up to a maximum benefit of $4,750 in a 12 month period. To be eligible for income support a dislocated worker must be permanently laid off; be UI eligible; have exhausted UI benefits; be enrolled in training pursuant to reemployment plan by 16th week of initial unemployment period and be making satisfactory progress. Career Centers must provide the following types services: BASIC: Outreach, intake, eligibility determination; assistance in filing initial UI claims; preliminary assessment of skill levels and service need; labor market information and job search assistance, etc. INTENSIVE: Development of a reemployment plan; individual counseling and career planing; case management; job development; etc. EDUCATION & TRAINING: Access to comprehensive information about INCOME SUPPORT: Individuals with 1-3 years tenure with previous employer are eligible for up to 26 additional weeks of income support at UI levels beyond their UI benefit period. This benefit is paid for with discretionary funds through FY2000. After FY2000, this benefit becomes a capped entitlement. Individuals with 3 years tenure with previous employer are eligible for up to 52 additional weeks of income support at UI levels beyond their UI benefit period. This benefit is a capped entitlement. Title II: One-Stop Career Centers Establishes a voluntary national program of grants and waivers to assist States in developing and implementing Statewide networks of One-Stop Career Centers. Legislation authorizes $250 million annually for planning and implementation grants. The six basic components of the One-Stop Career Centers include: the establishment of Workforce Investment Boards; similar to PICS under JTPA; the provision of certain common services (as above) through the centers; mandated access to all DOL employment and training programs; an operating agreement between all affected parties; quality assurance systems, including performance standards; the establishment of a State Human Resource Investment Council. Title III: National Labor Market Information Systems Establishes a National Labor Market Information system to provide access to local labor market information including, information about where jobs are, necessary skills and experience, location and quality of training programs; and job search assistance. Title IV: JTPA Reinvention Labs This section amends Title II of the JTPA to establish a new part D, "Reinvention Labs," permitting the Secretary to waive Federal statutory or regulatory requirements relating to programs for economically disadvantaged youth and adults to promote implementation of innovative program designs. A BIL L to To establish a comprehensive system of reemployment services, training and income support for permanently laid off workers, facilitate the establishment of one-stop career centers to serve as a common point of access to employment, education and training information and services, to develop an effective national labor market information system, 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 "Reemployment Act of 1994". Sec. 102. Recapture and Use of Unexpended Funds. PART A. STATE AND SUBSTATE DELIVERY SYSTEM Sec. 111. State Administration and Oversight. Sec. Sec. 112. Designation and Functions of State Dislocated Worker Unit. 113. Development and Maintenance of State and Local Labor Market Information System. Sec. 114. State Coordination with Worker Profiling and Retraining Income Support Programs. Sec. 115. State Supplementary Grants for Areas of Special Need. Sec. 117. Designation of Substate Administrative Structure. Sec. 119. Services to be Provided to Eligible Individuals. Sec. 120. Certificates of Continuing Eligibility. PART B. FEDERAL DELIVERY OF SERVICES Sec. 131. National Discretionary Grant Program. Sec. 171. Program Year. Sec. 172. Prompt Allocation of Funds. Sec. 173. Monitoring. Sec. 174. Fiscal Controls; Sanctions. Sec. 175. Reports, Recordkeeping and Investigations. Sec. 211. General Requirements. Sec. 212. Workforce Investment Boards. Sec. 213. Establishment of One-Stop Career Centers. Sec. 214. Services to be Provided Through One-Stop Career Sec. 215. Participating Programs. Sec. 216. Operating Agreements. Sec. 217. Quality Assurance Systems. Sec. 218. State Human Resource Investment Council. Sec. PART B. GRANTS AND WAIVERS TO PROMOTE THE DEVELOPMENT AND IMPLEMENTATION OF ONE-STOP CAREER CENTER SYSTEM 231. State Planning and Development Grants. Sec. 232. State Implementation Grants. Sec. 233. Waiver of Federal Statutory and Regulatory Requirements. Sec. 234. Pooling of Administrative Resources. Sec. PART C. ADDITIONAL ACTIVITIES IN SUPPORT OF ONE-STOP 251. Customer Service Compact. Sec. 252. Additional State Responsibilities. Sec. 253. Additional Federal Responsibilities. PART D. EFFECTIVE DATE Sec. 271. Effective Date. TITLE IV--REINVENTION LABS FOR JOB TRAINING Sec. 401. Establishment of Labs. Sec. 402. Modification of Tuition Definition. SEC. 3. FINDINGS AND PURPOSE. (a) FINDINGS.--Congress finds that- (1) In recent years, both the nature of job uncertainty and job loss has changed due to such forces as evolving technologies, corporate restructuring, and intensifying global competition; (2) A substantial number of Americans lose jobs because of structural changes in the economy rather than cyclical downturns, with more than 2 million full-time workers permanently displaced annually due to plant closures, production cutbacks, and layoffs; (3) Job uncertainty and dislocation carry substantial emotional and financial costs to the nation, with tax revenues and economic output declining when workers are idle and demands on government support rise; (4) All Americans whether seeking first jobs, new jobs, or better jobs -- confront an economy in continuous transition and must have access to new skills and better job and career information in order to harness this change for increased economic security and a rising standard of living; (5) Our current worker adjustment policies were designed for an earlier economy and often do not equip Americans to prosper in the current and emerging atmosphere of constant change; (6) The primary governmental response to job loss the unemployment insurance system is effective in providing income support to persons on temporary lay-offs, |