Transformation to Competitive Integrated Employment Act

I 118TH CONGRESS 1ST SESSION H. R. 1263 To assist employers providing employment under special certificates issued under section 14(c) of the Fair Labor Standards Act of 1938 in trans- forming their business and program models to models that support indi- viduals with disabilities through competitive integrated employment, to phase out the use of such special certificates, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 28, 2023 Mr. SCOTT of Virginia (for himself and Mrs. RODGERS of Washington) intro- duced the following bill; which was referred to the Committee on Edu- cation and the Workforce A BILL To assist employers providing employment under special cer- tificates issued under section 14(c) of the Fair Labor Standards Act of 1938 in transforming their business and program models to models that support individuals with disabilities through competitive integrated employ- ment, to phase out the use of such special certificates, 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 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1263 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Transformation to 2 Competitive Integrated Employment Act’’. 3 SEC. 2. TABLE OF CONTENTS. 4 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. Technical Assistance and dissemination. TITLE IV—REPORTING AND EVALUATION Sec. 401. Impact evaluation and reporting. Sec. 402. Wage and hour reports. TITLE V—GENERAL PROVISIONS Sec. 501. Definitions. Sec. 502. Authorization of appropriations. SEC. 3. PURPOSES. 5 The purposes of this Act are to— 6 (1) assist employers with special certificates 7 issued under section 14(c) of the Fair Labor Stand- 8 ards Act of 1938 (29 U.S.C. 214(c)) to transform 9 their business and program operations to models 10 that support individuals with disabilities to find and 11 retain work in competitive integrated employment; 12 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1263 IH (2) ensure individuals with disabilities, families 1 of such individuals, State and local governments, 2 and other stakeholders are involved in the trans- 3 formations described in paragraph (1); 4 (3) ensure individuals employed in programs 5 using such special certificates transition to competi- 6 tive integrated employment positions and, as needed, 7 to integrated services that support them in their 8 homes and in community settings; 9 (4) identify models and processes for shifting 10 business and program models from such special cer- 11 tificates to competitive integrated employment mod- 12 els and integrated community participation and 13 wraparound services, and to share that information 14 with other such special certificate holders, State and 15 local entities, and other service providers for individ- 16 uals with disabilities; and 17 (5) support States and local governments as 18 they revise and implement their Olmstead plans and 19 local plans, respectively, in order to improve com- 20 petitive integrated employment outcomes for individ- 21 uals with disabilities through all State workforce de- 22 velopment systems. 23 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1263 IH TITLE I—COMPETITIVE INTE- 1 GRATED EMPLOYMENT 2 TRANSFORMATION GRANT 3 PROGRAMS 4 SEC. 101. PROGRAM AUTHORIZED. 5 From the amounts appropriated to carry out this 6 title, the Secretary of Labor shall award grants under sec- 7 tions 102 and 103, on a competitive basis, to States and 8 eligible entities to assist employers who were issued special 9 certificates in transforming their business and program 10 models from providing employment using such special cer- 11 tificates to business and program models that employ and 12 support individuals with disabilities by— 13 (1) providing competitive integrated employ- 14 ment, including by compensating all employees of 15 the employer at a rate that is— 16 (A) not less than the higher of the rate 17 specified in section 6(a)(1) of the Fair Labor 18 Standards Act of 1938 (29 U.S.C. 206(a)(1)) 19 or the rate specified in the applicable State or 20 local minimum wage law; and 21 (B) not less than the customary rate paid 22 by the employer for the same or similar work 23 performed by other employees who are not indi- 24 viduals with disabilities, and who are similarly 25 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1263 IH situated in similar occupations by the same em- 1 ployer and who have similar training, experi- 2 ence, and skills; 3 (2) assisting individuals with disabilities who 4 were employed by the employer in finding and re- 5 taining work in competitive integrated employment, 6 which work may be with the employer after such 7 transformation or in another competitive integrated 8 employment setting; 9 (3) providing integrated community participa- 10 tion and wraparound services for individuals with 11 disabilities; and 12 (4) ensuring all such services and other non- 13 employment services offered under, or with assist- 14 ance from, such a grant comply with the require- 15 ments for home and community-based services under 16 the Home and Community-Based Services (HCBS) 17 final rule published on January 16, 2014 (79 Fed. 18 Reg. 2948), or a successor rule. 19 SEC. 102. STATE GRANT PROGRAM. 20 (a) APPLICATION.— 21 (1) IN GENERAL.—To be eligible to receive a 22 grant under this section, a State shall submit an ap- 23 plication to the Secretary at such time, in such man- 24 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 1263 IH ner, and including such information as the Secretary 1 may reasonably require. 2 (2) CONTENTS.—Each application submitted 3 under paragraph (1) shall include— 4 (A) a description of the status of the em- 5 ployers in the State providing employment 6 using special certificates, including— 7 (i) the number of employers in the 8 State using special certificates to employ 9 and pay individuals with disabilities; 10 (ii) the number of employers described 11 in clause (i) that also employ individuals 12 with disabilities in competitive integrated 13 employment, which shall include employers 14 providing such employment in combination 15 with integrated services; 16 (iii) the number of employees em- 17 ployed under a special certificate, 18 disaggregated by— 19 (I) employer; and 20 (II) demographic characteristics, 21 including gender, race, ethnicity, and 22 type of disability, unless indicating 23 such characteristics would disclose 24 personally identifiable information; 25 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 1263 IH (iv) the average, median, minimum, 1 and maximum number of hours such em- 2 ployees work per week, disaggregated by 3 employer, and reported for the State as a 4 whole; and 5 (v) the average, median, minimum, 6 and maximum hourly wage for such em- 7 ployees, disaggregated by employer, and 8 reported for the State as a whole; 9 (B) a description of the activities of the 10 State with respect to competitive integrated em- 11 ployment for individuals with disabilities, in- 12 cluding, as applicable— 13 (i) a copy of the State plan for car- 14 rying out the Employment First initiative; 15 (ii) a copy of the Olmstead plan of the 16 State; 17 (iii) a description of activities related 18 to the development and promotion of 19 ABLE accounts; and 20 (iv) a description of the medical as- 21 sistance provided by the State through a 22 Medicaid buy-in eligibility pathway under 23 subclause (XV) or (XVI) of section 24 1902(a)(10)(A)(ii) of the Social Security 25 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 1263 IH Act (42 U.S.C. 1396a(a)(10)(A)(ii)), in- 1 cluding any premiums or other cost shar- 2 ing imposed on individuals who enroll in 3 the State Medicaid program through such 4 a pathway; 5 (C) a description of activities to be funded 6 under the grant, and the goals of such activi- 7 ties, including— 8 (i) the process to be used to identify 9 each employer in the State that will trans- 10 form its business and program models 11 from employing individuals with disabilities 12 using special certificates to employing indi- 13 viduals with disabilities in competitive inte- 14 grated employment settings, or a setting 15 involving a combination of competitive in- 16 tegrated employment and integrated serv- 17 ices; 18 (ii) the number of such employers in 19 the State that will carry out a trans- 20 formation described in clause (i); 21 (iii) the service delivery infrastructure 22 that will be implemented in the State to 23 support individuals with disabilities who 24 have been employed under special certifi- 25 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 1263 IH cates through such a transformation, in- 1 cluding providing enhanced integrated 2 services to support individuals with the 3 most significant disabilities; 4 (iv) a description of the process to re- 5 cruit and engage Federal, State, and local 6 governments and nonprofit and private em- 7 ployers to hire individuals with disabilities 8 into competitive integrated employment 9 who have been employed under special cer- 10 tificates; 11 (v) the competitive integrated employ- 12 ment and integrated services that will be 13 implemented in the State to support such 14 individuals; 15 (vi) a timeline for phasing out employ- 16 ment using special certificates in the State, 17 which shall not extend past the date on 18 which the legal effect of such certificates 19 expires under section 14(c)(7) of the Fair 20 Labor Standards Act of 1938 (29 U.S.C. 21 214(c)(7)), as added by title II; 22 (vii) a timeline for the expansion of 23 employers that will provide competitive in- 24 tegrated employment, or a combination of 25 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 1263 IH competitive integrated employment and in- 1 tegrated services, to individuals with dis- 2 abilities who have been employed by such 3 employers under special certificates; 4 (viii) a description of the expanded 5 competitive integrated employment and in- 6 tegrated services to be provided to such in- 7 dividuals as a result of transformations de- 8 scribed in clause (i); and 9 (ix) a description of the process to be 10 used to engage stakeholders in such trans- 11 formations; 12 (D) a description of how the activities 13 under the grant will coordinate and align Fed- 14 eral, State, and local programs, agencies, and 15 funding in the transformations described in 16 subparagraph (C)(i); 17 (E) a description of the State’s evaluation 18 plan to determine the social and economic im- 19 pact of the grant, including the impact (as 20 measured throughout the transformation and 21 the 2-year period after the State has phased out 22 employment using special certificates) on— 23 (i) the employment status of individ- 24 uals with disabilities in the State, including 25 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 1263 IH the number of hours worked, average 1 wages, and job satisfaction, of such indi- 2 viduals; and 3 (ii) changes in provider capacity to 4 support competitive integrated employment 5 and integrated services; 6 (F) assurances that— 7 (i) the activities carried out under the 8 grant will result in each employer in the 9 State that provides employment using spe- 10 cial certificates on the date of enactment of 11 this Act transforming as described in sub- 12 paragraph (C)(i); 13 (ii) individuals with the most signifi- 14 cant disabilities, including intellectual and 15 developmental disabilities, who will be af- 16 fected by such a transformation will be 17 given priority in receiving the necessary 18 competitive integrated employment sup- 19 ports and integrated services to succeed 20 during and after such a transformation; 21 (iii) each individual in the State who 22 is employed under a special certificate will, 23 as a result of such a transformation, be 24 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 1263 IH employed in competitive integrated employ- 1 ment; 2 (iv) at a minimum, the State agencies 3 responsible for developmental disability 4 services, Medicaid, education, vocational 5 rehabilitation, mental health services, 6 transportation, and workforce development 7 agree to be partners in the goals of the 8 grant; 9 (v) until the date that is 2 years after 10 the legal effect of special certificates ex- 11 pires under section 14(c)(7) of the Fair 12 Labor Standards Act of 1938 (29 U.S.C. 13 214(c)(7)), as added by title II, the State 14 will comply with requirements of the Sec- 15 retary with respect to the collection of 16 data, and will require employers providing 17 employment under special certificates in 18 the State to comply with such require- 19 ments; 20 (vi) the State will cooperate with the 21 evaluation under title IV by providing all 22 data required and allow the evaluation of 23 activities under the grant; 24 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1263.IH H1263 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 1263 IH (vii) the State will establish an [Text truncated for display. 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