Emergency Economic and Workforce System Resiliency Act

II 116TH CONGRESS 2D SESSION S. 5068 To direct the Secretary of Labor to award formula and competitive grants for layoff aversion activities, and for other purposes. IN THE SENATE OF THE UNITED STATES DECEMBER 18, 2020 Ms. KLOBUCHAR introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 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 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 5068 IS (b) ADDITIONAL DEFINITIONS.—In this Act: 1 (1) EMPLOYEE OWNERSHIP TRUST.—The term 2 ‘‘employee ownership trust’’ means an indirect form 3 of employee ownership in which a trust holds a con- 4 trolling stake in a business on behalf of all its em- 5 ployees and provides an incentive for owners to sell 6 a controlling stake in their business. 7 (2) EMPLOYEE STOCK OWNERSHIP PLAN.—The 8 term ‘‘employee stock ownership plan’’ has the 9 meaning given the term in section 4975(e) of the In- 10 ternal Revenue Code of 1986. 11 (3) REGISTERED APPRENTICESHIP.—The term 12 ‘‘registered apprenticeship’’ means an apprenticeship 13 registered under the Act of August 16, 1937 (com- 14 monly known as the ‘‘National Apprenticeship Act’’; 15 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.). 16 (4) SECRETARY.—Except as otherwise provided, 17 the term ‘‘Secretary’’ means the Secretary of Labor. 18 (5) WORKER COOPERATIVE.—The term ‘‘work- 19 er cooperative’’ means a values-driven business— 20 (A) that puts worker and community ben- 21 efit at the core of its purpose; and 22 (B) in which— 23 (i) workers own the business and par- 24 ticipate in its financial success on the basis 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 5068 IS of their labor contribution to the coopera- 1 tive; and 2 (ii) workers have representation on 3 and vote for the board of directors, adher- 4 ing to the principle of one worker, one 5 vote. 6 TITLE I—SUPPLEMENTAL FOR- 7 MULA GRANTS FOR EMER- 8 GENCY LAYOFF AVERSION 9 AND WORKFORCE TRAINING 10 ACTIVITIES 11 SEC. 101. FORMULA GRANTS. 12 (a) IN GENERAL.—Not later than 1 year after the 13 date of the enactment of this Act, the Secretary shall 14 award 5-year grants in accordance with subsection (b), to 15 States to support efforts to— 16 (1) reduce and prevent unemployment; and 17 (2) limit the impact of disruptions (including 18 economic-related, pandemic-related, automation-re- 19 lated, and trade-related disruptions and transitions 20 due to business owner retirement) on labor markets. 21 (b) STATE ALLOTMENTS.— 22 (1) IN GENERAL.—From the amount appro- 23 priated under section 105, the Secretary shall— 24 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 5068 IS (A) reserve not more than 1⁄4 of 1 percent 1 of such amount to provide assistance to the out- 2 lying areas to carry out the activities described 3 in section 103; and 4 (B) make allotments to the States, for 5 grants described in subsection (a), based on the 6 formula in paragraph (2) to— 7 (i) make allocations under subsection 8 (c); and 9 (ii) carry out the State activities de- 10 scribed in subsection (d). 11 (2) ALLOTMENT FORMULA.—The Secretary 12 shall make an allotment in accordance with the for- 13 mula in section 132(b)(1)(B)(ii) of the Workforce 14 Innovation and Opportunity Act (29 U.S.C. 15 3172(b)(1)(B)(ii)), to each State that submits and 16 obtains approval of a State plan under section 102. 17 (c) WITHIN STATE ALLOCATIONS.— 18 (1) IN GENERAL.—Subject to paragraph (2), 19 the Governor of a State shall use a portion of not 20 less than 60 percent of the allotment funds received 21 under subsection (b)(2) to allocate funds to each 22 local area in the State in accordance with section 23 133(b)(2)(A)(i) of the Workforce Innovation and 24 Opportunity Act (29 U.S.C. 3173(b)(2)(A)(i)) to 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 5068 IS carry out the activities under section 103, in accord- 1 ance with the State plan under section 102 and in 2 consultation with the State board. 3 (2) ADMINISTRATIVE FUNDS.—The Governor of 4 a State may use not more than 10 percent of the 5 portion described in paragraph (1) for administra- 6 tive costs related to administering local activities de- 7 scribed in paragraph (1). 8 (d) STATE ACTIVITIES.— 9 (1) IN GENERAL.—Subject to paragraph (2), 10 the Governor of a State shall use the remaining 11 amount of the allotment funds received under sub- 12 section (b)(2) not allocated under subsection (c) to 13 carry out the activities under section 103 in accord- 14 ance with the State plan under section 102 and in 15 consultation with the State board. 16 (2) ADMINISTRATIVE FUNDS.—The Governor of 17 a State may use not more than 10 percent of the re- 18 maining amount described in paragraph (1) for ad- 19 ministrative costs related to carrying out State ac- 20 tivities described in paragraph (1). 21 SEC. 102. STATE APPLICATIONS. 22 (a) IN GENERAL.— 23 (1) APPLICATION BY STATE.—To be eligible to 24 receive a grant under section 101, a State shall sub- 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 5068 IS mit a State Workforce Economic Recovery plan (in 1 this Act referred to as a ‘‘State plan’’), developed by 2 or in consultation with the State board and approved 3 by the Governor, to the Secretary at such time and 4 in such manner as the Secretary may reasonably re- 5 quire, and containing the information described in 6 subsection (b). 7 (2) RESPONSE BY SECRETARY.—Upon receipt 8 of a State plan, the Secretary shall— 9 (A) approve the State plan; or 10 (B) provide the State— 11 (i) with an explanation as to how the 12 State plan does not meet the goals and re- 13 quirements of the grant program under 14 this title; and 15 (ii) with an opportunity to submit an 16 updated State plan or to appeal the deci- 17 sion of the Secretary. 18 (3) STATE PLAN UPDATES.— 19 (A) REQUIRED STATE PLAN UPDATES.— 20 Not later than 2 years after the date a State 21 receives a grant under section 101, a State 22 shall— 23 (i) update the State plan to reflect 24 changes in the labor market and other eco- 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 5068 IS nomic conditions affecting the implementa- 1 tion of the activities funded under the 2 grant; and 3 (ii) submit to the Secretary such up- 4 dated State plan. 5 (B) AUTHORIZED STATE PLAN UP- 6 DATES.—In addition to the updated State plan 7 required in subparagraph (A), a State may sub- 8 mit to the Secretary an updated State plan at 9 any point during the grant period. 10 (b) CONTENTS.—A State plan shall include each of 11 the following: 12 (1) A description of how the State plan is 13 aligned with, enhances, expands, or fills service gaps 14 into the plan submitted by the State under section 15 102 or 103 of the Workforce Innovation and Oppor- 16 tunity Act (29 U.S.C. 3112, 3113). 17 (2) A State strategic vision, including— 18 (A) a summary of the goals of the State— 19 (i) for preparing an educated and 20 skilled workforce for meeting the skilled 21 workforce needs of employers (particularly 22 in existing and emerging in-demand indus- 23 try sectors and occupations), including in- 24 formation— 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 5068 IS (I) identifying median income for 1 in-demand sectors and occupations in 2 the State; and 3 (II) on how the State will work 4 to ensure worker access to jobs and 5 industries with higher median wages, 6 opportunities for workers to share in 7 the ownership or profits of their com- 8 panies, and high-quality work environ- 9 ments; 10 (ii) for ensuring equitable access to 11 high-quality jobs for all segments of the 12 population of the State, including a plan 13 for promoting quality career pathways that 14 lead to high-quality jobs for dislocated 15 workers or incumbent workers; and 16 (iii) for offering retiring business own- 17 ers or business owners planning to close 18 their businesses, opportunities to plan that 19 transition in order to ensure the continuity 20 of high-quality jobs in the local economy; 21 and 22 (B) the primary strategies that will be 23 used to achieve the State strategic vision and 24 goals included in such strategic vision, the pro- 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 5068 IS posed service delivery infrastructure for achiev- 1 ing such goals, and the timeline for achieving 2 such goals. 3 (3) A description of the problems the proposed 4 activities under section 103 aim to solve, and the 5 reason for prioritizing selected problems. 6 (4) A description of how the State will align 7 those activities with, and leverage funds from, the 8 workforce development system and higher education 9 system of the State, public assistance programs of 10 the State, and the economic recovery efforts at the 11 State and local levels. 12 (5) A description of how the State will collabo- 13 rate with other relevant State and local government 14 entities, nonprofit entities, and other relevant groups 15 identified by the State to carry out activities under 16 section 103, including the roles and responsibilities 17 of each entity that will participate in the develop- 18 ment, implementation, evaluation, or oversight of 19 each component of the State plan. 20 (6) An employer engagement strategy that de- 21 scribes how employers will be targeted and recruited 22 to participate, and any expectations for employer 23 participation, such as cash or in-kind contributions, 24 wage release time for employees, provision of on-site 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 5068 IS child care or financial support for child care, em- 1 ployee participation incentives, work-based learning 2 opportunities, or loaned instructors. 3 (7) A description of the data sources (commer- 4 cial or public) the State will use to identify growing, 5 stable, and declining— 6 (A) businesses; and 7 (B) industry sectors or occupations. 8 (8) A description of how the State will prioritize 9 individuals with barriers to employment, underrep- 10 resented individuals, youth, immigrants, formerly in- 11 carcerated adults, and individuals experiencing pan- 12 demic-related job displacement. 13 (9) A description— 14 (A) of how the State will prioritize access 15 to high-quality jobs by establishing the stand- 16 ards of job quality that an employer is required 17 to meet as a condition of receiving funds under 18 this title, which— 19 (i) include a defined livable wage for 20 the State or by subregion of the State; and 21 (ii) if the minimum standards estab- 22 lished by the Interagency Task Force 23 under section 401 have been established, 24 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 5068 IS are consistent with such minimum stand- 1 ards; and 2 (B) of such standards. 3 (10) Any other required information as deter- 4 mined by the Secretary. 5 SEC. 103. USES OF FUNDS. 6 (a) APPROVED ACTIVITIES.—Subject to the limita- 7 tions in subsection (b), a State may use, or ensure that 8 a local area uses, the funds awarded under this title for 9 any of the following activities: 10 (1) Training and education opportunities. 11 (2) Adult education. 12 (3) Incumbent worker training. 13 (4) Dislocated worker training. 14 (5) On-the-job training. 15 (6) Job search assistance. 16 (7) Layoff aversion, in advance of the notice re- 17 quired under the Worker Adjustment and Retraining 18 Notification Act (29 U.S.C. 2101 et seq.), which 19 may include assisting employers with product diver- 20 sification, market expansion, and improving produc- 21 tivity. 22 (8) Helping individuals who need assistance 23 with starting up, scaling up, or maintaining their 24 businesses, through entrepreneurial development and 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 5068 IS coaching, which may include the provision of loans 1 through local boards of up to $8,000 to help with 2 starting up a new business or maintaining a busi- 3 ness in financial distress. 4 (9) Developing career pathway opportunities 5 (including through industry or sector partnerships) 6 to in-demand, high-quality jobs in coordination with 7 employers, community-based organizations, and 8 State higher education systems, and the State reg- 9 istered apprenticeship agency. 10 (10) Related instruction for a pre-apprentice- 11 ship, a registered apprenticeship, or other work- 12 based training in a career pathway. 13 (11) Funding existing or establishing new State 14 or nonprofit employee ownership resource centers 15 that offer education and technical assistance to re- 16 tiring business owners, new entrepreneurs, or worker 17 groups for the purpose of using broad-based em- 18 ployee share ownership through of employee stock 19 ownership plans, worker cooperatives, or employee 20 ownership trusts, to allow worker groups to buy out 21 retiring business owners. 22 (12) Providing capital for revolving loan funds 23 managed by State or nonprofit entities that offer 24 loans to— 25 VerDate Sep 11 2014 02:12 Jan 11, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S5068.IS S5068 pbinns on DSKJLVW7X2PRO [Text truncated for display. 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