Emergency Economic and Workforce System Resiliency Act

I 116TH CONGRESS 2D SESSION H. R. 8747 To direct the Secretary of Labor to award formula and competitive grants for layoff aversion activities, and for other purposes. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 12, 2020 Mr. SMITH of Washington introduced the following bill; which was referred to the Committee on Education and Labor A BILL To direct the Secretary of Labor to award formula and competitive grants for layoff aversion activities, 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Emergency Economic 4 and Workforce System Resiliency Act’’. 5 SEC. 2. DEFINITIONS. 6 (a) IN GENERAL.—Except as otherwise provided, the 7 terms used in this Act have the meanings given the terms 8 in section 3 of the Workforce Innovation and Opportunity 9 Act (29 U.S.C. 3102). 10 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8747 IH (b) EMPLOYEE OWNERSHIP TRUST.—The term ‘‘em- 1 ployee ownership trust’’ is an indirect form of employee 2 ownership in which a trust holds a controlling stake in 3 a company on behalf of all its employees and provides an 4 incentive for owners to sell a controlling stake in their 5 business. 6 (c) EMPLOYEE STOCK OWNERSHIP PLAN.—The term 7 ‘‘employee stock ownership plan’’ has the meaning given 8 the term in section 4975(e)(7) of the Internal Revenue 9 Code of 1986. 10 (d) WORKER COOPERATIVE.—The term ‘‘worker co- 11 operative’’ means a values-driven business that puts work- 12 er and community benefit at the core of its purpose, and 13 in which— 14 (1) workers own the business and they partici- 15 pate in its financial success on the basis of their 16 labor contribution to the cooperative; and 17 (2) workers have representation on and vote for 18 the board of directors, adhering to the principle of 19 one worker, one vote. 20 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8747 IH TITLE I—SUPPLEMENTAL FOR- 1 MULA GRANTS FOR EMER- 2 GENCY LAYOFF AVERSION 3 AND WORKFORCE TRAINING 4 ACTIVITIES 5 SEC. 101. FORMULA GRANTS. 6 (a) IN GENERAL.—Not later than 1 year after the 7 date of the enactment of this Act, the Secretary of Labor 8 shall award 5-year grants in accordance with subsection 9 (b), to States to support efforts to— 10 (1) reduce and prevent unemployment; and 11 (2) limit the impact of disruptions (economic, 12 pandemic-related, transitions of retiring business 13 owners, automation-related, trade-related, or other 14 forces) on labor markets. 15 (b) STATE ALLOTMENTS.— 16 (1) IN GENERAL.—From the amount appro- 17 priated under section 105, the Secretary shall— 18 (A) reserve not more than 1⁄4 of 1 percent 19 of such amount to provide assistance to the out- 20 lying areas; and 21 (B) make allotments to the States under 22 paragraph (2) to— 23 (i) make allocations under subsection 24 (c); or 25 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8747 IH (ii) carry out the State activities de- 1 scribed in subsection (d). 2 (2) ALLOTMENTS.—The Secretary shall make 3 an allotment in accordance with section 4 132(b)(1)(B)(ii) of the Workforce Innovation and 5 Opportunity Act (29 U.S.C. 3172(b)(1)(B)(ii)) to 6 each State that submits a State plan under section 7 103. 8 (c) WITHIN STATE ALLOCATIONS.—The Governor of 9 a State shall use not less than 60 percent of the allotment 10 received under subsection (b)(2)— 11 (1) to allocate funds to each local area in the 12 State in accordance with section 133(b)(2)(A)(i) of 13 the Workforce Innovation and Opportunity Act (29 14 U.S.C. 3173(b)(2)(A)(i)) to carry out the activities 15 under section 103, in accordance with the State plan 16 under section 102, and in consultation with the 17 State board and the Governor; and 18 (2) of which not more than 10 percent may be 19 used for administrative purposes. 20 (d) STATE ACTIVITIES.—The Governor of a State 21 shall use the remaining amount of the allotment received 22 under subsection (b)(2)— 23 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 8747 IH (1) to carry out the activities under section 103 1 in accordance with the State plan under section 102, 2 and in consultation with the State board; and 3 (2) of which not more than 10 percent may be 4 used for administrative purposes. 5 SEC. 102. STATE APPLICATIONS. 6 (a) IN GENERAL.— 7 (1) SUBMISSION BY STATES.—To receive an al- 8 location under section 101, a State shall submit a 9 State Workforce Economic Recovery plan (in this 10 Act referred to as a ‘‘State plan’’), developed by or 11 in consultation with the State board and approved 12 by the Governor, to the Secretary at such time and 13 in such manner as the Secretary may reasonably re- 14 quire, and containing the information described in 15 subsection (b). 16 (2) SECRETARIAL RESPONSE.—Upon receipt of 17 a State plan, the Secretary shall— 18 (A) approve the State plan; or 19 (B) provide the State— 20 (i) with an explanation as to how the 21 State plan does not meet the goals and re- 22 quirements of the grant program under 23 this title; and 24 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 8747 IH (ii) with an opportunity to submit an 1 updated State plan or to appeal the deci- 2 sion of the Secretary. 3 (3) RESUBMISSION.— 4 (A) REQUIRED STATE PLAN UPDATES.—At 5 the end of the first 2-year period of the grant, 6 a State shall— 7 (i) update the State plan to reflect 8 changes in the labor market and other eco- 9 nomic conditions affecting the implementa- 10 tion of the activities funded under the 11 grant; and 12 (ii) submit to the Secretary such up- 13 dated State plan modifications to the State 14 plan. 15 (B) AUTHORIZED STATE PLAN UP- 16 DATES.—A State may submit to the Secretary 17 any necessary updates to the State plan at any 18 point during the grant period. 19 (b) CONTENTS.—A State plan shall include the fol- 20 lowing: 21 (1) A description of how the State plan is 22 aligned with, enhances, expands, or fills service gaps 23 to the plan submitted by the State under section 24 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 8747 IH 102 or 103 of the Workforce Innovation and Oppor- 1 tunity Act (29 U.S.C. 3112, 313). 2 (2) A State strategic vision, including— 3 (A) a summary of the State’s goals— 4 (i) for preparing an educated and 5 skilled workforce for meeting the skilled 6 workforce needs of employers (particularly 7 in existing and emerging in-demand indus- 8 try sectors and occupations), an identifica- 9 tion of the median income for in-demand 10 sectors and occupations, and how the State 11 will work to ensure worker access to jobs 12 and industries with higher median wages, 13 opportunities for workers to share in the 14 ownership or profits of their companies, 15 and high quality work environments; 16 (ii) for ensuring equitable access to 17 quality jobs for all segments of the State’s 18 population, and the plan for promoting 19 quality career pathways that lead to high- 20 quality jobs for displaced or incumbent 21 workers; and 22 (iii) for offering retiring business own- 23 ers or business owners planning to close 24 their businesses opportunities to plan that 25 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 8747 IH transition in order to ensure the continuity 1 of high-quality jobs in the local economy; 2 and 3 (B) the primary strategies that will be 4 used to achieve the State vision and goals, the 5 proposed service delivery infrastructure, and the 6 timeline for achieving such goals. 7 (3) A description of the problems the State’s 8 proposed activities aim to solve, and the reason for 9 prioritizing selected problem areas. 10 (4) A description of how the State will align 11 with, and leverage funds from, the State’s workforce 12 development system and higher education system, 13 and public assistance programs, and the economic 14 recovery efforts at the State and local levels. 15 (5) A description of how the State will collabo- 16 rate with other relevant State and local government 17 entities, non-profit entities, and other relevant 18 groups identified by the State to carry out activities 19 under section 103, including the roles and respon- 20 sibilities of each entity that will participate in the 21 development, implementation, evaluation, and over- 22 sight of each component of the State plan. 23 (6) An employer engagement strategy that de- 24 scribes how employers will be targeted and recruited 25 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 8747 IH to participate, and any expectations for employer 1 participation, such as cash or in-kind contributions, 2 wage release time for employees, provision of on-site 3 child care or financial support for child care, em- 4 ployee participation incentives, work-based learning 5 opportunities, or loaned instructors. 6 (7) A description of the data sources (commer- 7 cial or public) the State will use to identify growing, 8 stable, and declining businesses and industry sectors 9 or occupations. 10 (8) A description of how the State will prioritize 11 individuals with barriers to employment, people of 12 color, youth, immigrants, formerly incarcerated 13 adults, and individuals experiencing pandemic-re- 14 lated job displacement. 15 (9) A description of how the State will prioritize 16 access to high-quality jobs by establishing the stand- 17 ards of job quality that an employer is required to 18 meet as a condition of receiving funds under this 19 title, which— 20 (A) are consistent with the minimum 21 standards established by the Interagency Task 22 Force under section 304, and a description of 23 such standards; and 24 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 8747 IH (B) include a defined livable wage for the 1 State or by subregion of the State. 2 (10) Any other requirements as determined by 3 the Secretary. 4 SEC. 103. USES OF FUNDS. 5 (a) IN GENERAL.—A State may use, or ensure that 6 a local area uses, the funds awarded under this title for 7 any of the following purposes: 8 (1) Training and education opportunities. 9 (2) Adult basic education. 10 (3) Incumbent worker training. 11 (4) Dislocated worker training. 12 (5) On-the-job training. 13 (6) Job seeking assistance. 14 (7) Layoff aversion, in advance of the notice re- 15 quired under the Worker Adjustment and Retraining 16 Notification Act (29 U.S.C. 2101 et seq.), which 17 may include assisting employers with product diver- 18 sification, market expansion, and improving produc- 19 tivity. 20 (8) Entrepreneurial development and coaching 21 (helping individuals who need assistance with start- 22 ing up, scaling up, or maintaining their own busi- 23 nesses), which may include the provision of loans 24 through local boards of up to $8,000 to help with 25 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 8747 IH starting up a new business or preserving a business 1 in financial distress. 2 (9) Developing career pathway opportunities 3 (including through industry or sector partnerships) 4 to in-demand high-quality jobs in coordination with 5 employers, community-based organizations, and 6 State higher education systems, including the State 7 registered apprenticeship system. 8 (10) Related instruction for pre-apprenticeship, 9 registered apprenticeship, or other work-based train- 10 ing in an occupational pathway. 11 (11) Funding existing or establishing new State 12 or non-profit employee ownership resource centers 13 that offer education and technical assistance to re- 14 tiring business owners, new entrepreneurs, or worker 15 groups for the purpose of using broad-based em- 16 ployee share ownership in the form of employee 17 stock ownership plans, worker cooperatives, or em- 18 ployee ownership trusts, to allow worker groups to 19 buy out retiring business owners. 20 (12) Capital for revolving loan funds managed 21 by State or non-profit entities that offer loans to 22 allow worker groups to buy out retiring business 23 owners, worker groups, or entrepreneurs looking to 24 save a declining firm through employee ownership, 25 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 8747 IH or workers using broad-based employee share owner- 1 ship in the form of employee stock ownership plans, 2 worker cooperatives, or employee ownership trusts. 3 (b) LIMITATIONS.—No State or local area may use 4 funds awarded under this title to— 5 (1) recruit businesses, employees, or customers 6 from another State; 7 (2) assist employers that do not meet the 8 standards of job quality under section 102(b)(9); or 9 (3) assist proprietary institutions of higher edu- 10 cation (as defined in section 102(b) of the Higher 11 Education Act of 1965 (20 U.S.C. 1002(b))). 12 SEC. 104. REPORTING REQUIREMENTS; NATIONAL REPOSI- 13 TORY. 14 (a) REPORTING REQUIREMENTS.— 15 (1) STATES.—Each State that receives a grant 16 under this title shall submit to the Secretary an an- 17 nual report that, to the extent practicable integrates 18 reporting requirements under the Workforce Innova- 19 tion and Opportunity Act (29 U.S.C. 3101 et seq.) 20 and includes— 21 (A) an evaluation— 22 (i) of the performance of the activities 23 funded under the grant— 24 VerDate Sep 11 2014 23:47 Dec 22, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H8747.IH H8747 pbinns on DSKJLVW7X2PROD with BILLS 13 •HR 8747 IH (I) with respect to indicators of 1 performance under section 2 116(b)(2)(A) of the Workforce Inno- 3 vation and Opportunity Act (29 4 U.S.C. 3141(b)(2)(A)); and 5 (II) with respect to meeting the 6 goals of the State plan; 7 (ii) of the sa [Text truncated for display. Full text available on Congress.gov.]