Jobs for Economic Recovery Act of 2021

II 117TH CONGRESS 1ST SESSION S. 784 To amend the Social Security Act to establish a new employment, training, and supportive services program for unemployed and underemployed indi- viduals, including individuals with barriers to employment and those who are unemployed or underemployed as a result of COVID–19, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 17 (legislative day, MARCH 16), 2021 Mr. WYDEN (for himself, Ms. BALDWIN, Mr. VAN HOLLEN, Mr. BENNET, and Mr. BOOKER) introduced the following bill; which was read twice and re- ferred to the Committee on Finance A BILL To amend the Social Security Act to establish a new employ- ment, training, and supportive services program for un- employed and underemployed individuals, including indi- viduals with barriers to employment and those who are unemployed or underemployed as a result of COVID– 19, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 784 IS SECTION 1. SHORT TITLE; AMENDMENT TO SOCIAL SECU- 1 RITY ACT; TABLE OF CONTENTS. 2 (a) SHORT TITLE.—This Act may be cited as the 3 ‘‘Jobs for Economic Recovery Act of 2021’’. 4 (b) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex- 5 cept as otherwise specifically provided, whenever in this 6 Act an amendment is expressed in terms of an amendment 7 to or repeal of a section or other provision, the reference 8 shall be considered to be made to that section or other 9 provision of the Social Security Act. 10 (c) TABLE OF CONTENTS.—The table of contents for 11 this Act is as follows: 12 Sec. 1. Short title; amendment to Social Security Act; table of contents. Sec. 2. Purpose. Sec. 3. Employment, training, and supportive services program. Sec. 4. Employee retention work opportunity credit. Sec. 5. Conforming amendments. Sec. 6. Effective date; regulations. SEC. 2. PURPOSE. 13 The purposes of this Act are the following: 14 (1) To provide immediate funding for sub- 15 sidized employment programs that will create job op- 16 portunities for individuals who are not employed or 17 who are underemployed, including individuals who 18 are not employed or who are underemployed as a re- 19 sult of COVID–19, when it is safe to provide such 20 opportunities, taking into account the need to pre- 21 vent the spread or recurrence of COVID–19. 22 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 784 IS (2) To expand subsidized employment programs 1 that reconnect unemployed and underemployed 2 workers to the workforce. 3 (3) To drive economic recovery by allowing for 4 sufficient State and local flexibility to create or ex- 5 pand programs that place workers in jobs that fill 6 community-specific workforce gaps and meet em- 7 ployer needs. 8 (4) To prevent long-term joblessness and struc- 9 tural unemployment and provide work opportunities 10 for individuals with barriers to employment. 11 SEC. 3. EMPLOYMENT, TRAINING, AND SUPPORTIVE SERV- 12 ICES PROGRAM. 13 (a) ESTABLISHMENT.—The Social Security Act (42 14 U.S.C. 301 et seq.) is amended by inserting after title XII 15 the following: 16 ‘‘TITLE XIII—REEMPLOYMENT 17 AND OTHER JOB-RELATED 18 ASSISTANCE AND BENEFITS 19 ‘‘SEC. 1301. PURPOSE; DEFINITIONS; ADMINISTRATION. 20 ‘‘(a) PURPOSE.—The purpose of this title is to pro- 21 vide funds to States, Indian tribes, local governments, and 22 nonprofit organizations to initiate and expand the provi- 23 sion of employment services, training and other services 24 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 784 IS and activities, and supportive services for eligible individ- 1 uals in order to— 2 ‘‘(1) promote subsidized employment programs 3 for public, private for-profit, private nonprofit, and 4 employment social enterprise sector jobs that enable 5 unemployed or underemployed individuals to earn in- 6 come and connect to the workforce; 7 ‘‘(2) expand the availability of jobs during eco- 8 nomic downturns or in areas with high unemploy- 9 ment or poverty; 10 ‘‘(3) provide economically and socially disadvan- 11 taged individuals and individuals with barriers to 12 employment (such as the long-term unemployed, in- 13 dividuals with criminal records, former foster youth, 14 and other economically and socially disadvantaged 15 populations) with wages and the ability to gain job 16 experience; 17 ‘‘(4) provide employers with new pathways into 18 the workforce development system enabling them to 19 have a greater role in the training and hiring of new 20 workers and labor market re-entrants and facili- 21 tating their transition from subsidized job place- 22 ments to unsubsidized employment; and 23 ‘‘(5) allow for sufficient flexibility for States, 24 Indian tribes, local governments, and nonprofit orga- 25 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 784 IS nizations to design programs targeted at community- 1 specific workforce gaps and employer needs. 2 ‘‘(b) DEFINITIONS.—In this title: 3 ‘‘(1) ADULT AND DISLOCATED WORKER EM- 4 PLOYMENT AND TRAINING ACTIVITIES.—The term 5 ‘adult and dislocated worker employment and train- 6 ing activities’ means adult and dislocated worker 7 employment and training activities funded under 8 chapter 3 of subtitle B of title I of the Workforce 9 Innovation and Opportunity Act. 10 ‘‘(2) DISLOCATED WORKER.—The term ‘dis- 11 located worker’ has the meaning given that term in 12 section 3 of the Workforce Innovation and Oppor- 13 tunity Act. 14 ‘‘(3) ELIGIBLE INDIVIDUAL.—The term ‘eligible 15 individual’ means an individual who, on the basis of 16 an assessment by the State, has been determined to 17 be unlikely to find unsubsidized employment due 18 to— 19 ‘‘(A) being an individual with a barrier to 20 employment; 21 ‘‘(B) being a dislocated worker; or 22 ‘‘(C) a period of economic downturn or ad- 23 verse local or national economic conditions. 24 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 784 IS ‘‘(4) EMPLOYMENT SERVICES.—The term ‘em- 1 ployment services’ means a subsidized job placement 2 (including a transitional job described in section 3 134(d)(5) of the Workforce Innovation and Oppor- 4 tunity Act) in the public, private for-profit, private 5 nonprofit, or employment social enterprise sector 6 and includes payment or reimbursement of employer 7 subsidies for expenses such as wages, the employer 8 share of payroll taxes, employer costs for unemploy- 9 ment insurance, employer costs for workers’ com- 10 pensation premiums, and costs attributable to super- 11 vision and other administration directly related to 12 the employment of an eligible individual in the sub- 13 sidized job placement. 14 ‘‘(5) INDIAN TRIBE.—The term ‘Indian tribe’ 15 has the meaning given that term in section 419(4). 16 ‘‘(6) INDIVIDUAL WITH A BARRIER TO EMPLOY- 17 MENT.—The term ‘individual with a barrier to em- 18 ployment’ has the meaning given that term in sec- 19 tion 3 of the Workforce Innovation and Opportunity 20 Act and includes an individual who is an offender 21 (as defined in such section). 22 ‘‘(7) INTEGRATED EDUCATION AND TRAIN- 23 ING.—The term ‘integrated education and training’ 24 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 784 IS has the meaning given that term in section 3 of the 1 Workforce Innovation and Opportunity Act. 2 ‘‘(8) PAYROLL TAXES.—The term ‘payroll 3 taxes’ means taxes under section 3111, 3221, 3301, 4 or 3321 of the Internal Revenue Code of 1986, and 5 any similar State or local tax imposed on employers. 6 ‘‘(9) PERIOD OF ECONOMIC DOWNTURN.—The 7 term ‘period of economic downturn’ means, with re- 8 spect to a State, a period in which, for each month 9 of such period— 10 ‘‘(A) the average rate of total unemploy- 11 ment in the United States (seasonally adjusted) 12 for the most recent 3 months for which data is 13 available is at least 5.5 percent; or 14 ‘‘(B) the average rate of total unemploy- 15 ment in such State (seasonally adjusted) for the 16 most recent 3 months for which data for all 17 States is available is at least 5.5 percent. 18 ‘‘(10) SUPPORTIVE SERVICES.— 19 ‘‘(A) IN GENERAL.—The term ‘supportive 20 services’ has the meaning given that term in 21 section 3 of the Workforce Innovation and Op- 22 portunity Act. 23 ‘‘(B) ADDITIONAL SERVICES.—Such term 24 includes any of the following: 25 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 784 IS ‘‘(i) Stipends for an eligible individual 1 provided with unpaid training services. 2 ‘‘(ii) Legal services. 3 ‘‘(iii) Other supplemental services nec- 4 essary for an eligible individual to partici- 5 pate in the State program funded under 6 this title. 7 ‘‘(11) STATE EXPENDITURES.—The term ‘State 8 expenditures’ means all State, local, or tribal funds 9 that are expended by the State or a local or tribal 10 agency including State, local, or tribal funds that 11 are matched or reimbursed by the Federal Govern- 12 ment and State, local, or tribal funds that are not 13 matched or reimbursed by the Federal Government. 14 ‘‘(12) TRAINING AND OTHER SERVICES OR AC- 15 TIVITIES.—The term ‘training and other services or 16 activities’ means any of the following services or ac- 17 tivities if provided in conjunction with, including in 18 preparation for, a subsidized job placement and de- 19 termined by the State as necessary to significantly 20 increase the likelihood that the job placement will be 21 successful for the employer and employee and may 22 improve the prospect of obtaining and retaining un- 23 subsidized jobs: 24 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 784 IS ‘‘(A) Services provided through adult and 1 dislocated worker employment and training ac- 2 tivities. 3 ‘‘(B) Integrated education and training. 4 ‘‘(C) Education directly related to employ- 5 ment. 6 ‘‘(D) Vocational and employment services 7 integrated with trauma-informed substance use 8 disorder treatment, in collaboration with a sub- 9 stance use disorder treatment provider. 10 ‘‘(E) Casework and job coaching. 11 ‘‘(F) Union-provided employment services, 12 including labor-management training. 13 ‘‘(c) ADMINISTRATION.— 14 ‘‘(1) IN GENERAL.—Subject to section 1302(d), 15 the program under this title shall be administered by 16 the Secretary through the Assistant Secretary for 17 the Administration for Children and Families within 18 the Department of Health and Human Services and 19 in consultation with the Secretary of Labor as ap- 20 propriate. 21 ‘‘(2) FUNDING FOR ADMINISTRATION.—Out of 22 any money in the Treasury not otherwise appro- 23 priated, for each fiscal year beginning with fiscal 24 year 2022, there are appropriated to the Secretary 25 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 784 IS $15,000,000 to administer this title. Amounts ap- 1 propriated under the preceding sentence shall re- 2 main available until expended. 3 ‘‘(d) APPROPRIATED ENTITLEMENT.— 4 ‘‘(1) IN GENERAL.—This title establishes an en- 5 titlement to payments under this title for States, In- 6 dian tribes and tribal consortiums, and local govern- 7 ments with plans approved under this title. 8 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 9 There are authorized to be appropriated to the Sec- 10 retary to make payments to States, Indian tribes 11 and tribal consortiums, and local governments under 12 sections 1304, 1307, and 1308 for each fiscal year 13 beginning with fiscal year 2021, such sums as are 14 necessary. 15 ‘‘SEC. 1302. STATE PLAN REQUIREMENTS. 16 ‘‘(a) IN GENERAL.—A State is not eligible for pay- 17 ment under section 1304 unless the State has submitted 18 to the Secretary a plan that describes— 19 ‘‘(1) the State’s strategy for creating or ex- 20 panding programs that offer subsidized employment 21 for eligible individuals and moving such individuals 22 into unsubsidized employment; 23 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 784 IS ‘‘(2) how such strategy fits with the State’s 1 overall strategy for, and assessment of, the State’s 2 workforce needs; 3 ‘‘(3) the employment services, training and 4 other services or activities, and supportive services to 5 be provided under the State program funded under 6 this title; 7 ‘‘(4) which specific populations of eligible indi- 8 viduals the State will serve, with a focus on how the 9 State plans to assess and serve the eligible individ- 10 uals with serious or multiple barriers to employment; 11 ‘‘(5) the strategies the State will use for out- 12 reach and engagement with the populations specified 13 under paragraph (4) to ensure that such populations 14 are aware of subsidized employment opportunities in 15 their community; 16 ‘‘(6) the strategies the State will use to ensure 17 that its programs do not systematically exclude the 18 eligible individuals with the greatest barriers to em- 19 ployment; 20 ‘‘(7) the strategies the State will use for out- 21 reach, engagement, and ongoing collaboration with 22 employers to promote employers’ use of the program 23 and ensure employers have the training necessary to 24 support eligible individuals; 25 VerDate Sep 11 2014 23:28 Apr 13, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S784.IS S784 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 784 IS ‘‘(8) the strategies the State will use to create 1 employment plans for eligible individuals partici- 2 pating in the State program funded under this title 3 and, based on such plans, provide eligible individuals 4 with employment services, training and other serv- 5 ices and activities, and supportive services; 6 ‘‘(9) how the State will coordinate the State 7 program funded under this title with other relevant 8 systems and programs based on the populations 9 identified which may include criminal justice, child 10 support, juvenile justice, child w [Text truncated for display. 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