Sec. 5. Employment opportunity grants to States, local governments, and Indian tribes
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Subject to the availability of funds in the Trust Fund for activities under this section, if, at the beginning of a month in the first fiscal year for which funds are available in the Trust Fund for activities under this section, the United States has unemployment according to the most recent monthly publications of the Bureau of Labor Statistics of the Department of Labor, the Secretary shall make grants for such month to States, unit of general local governments, or Indian tribes to carry out activities in accordance with this section.
The total amount awarded under this paragraph for such fiscal year shall not exceed 90 percent of the funds available in the Trust Fund for such fiscal year. Subject to the availability of funds in the Trust Fund for activities under this section, if, at the beginning of a fiscal year subsequent to the fiscal year described in paragraph
(1), the United States has unemployment according to the most recent monthly publications of the Bureau of Labor Statistics of the Department of Labor, the Secretary shall make grants for such fiscal year to States, units of general local government, Indian tribes, or community-based organizations to carry out activities in accordance with this section. The total amount awarded under this paragraph for a fiscal year shall not exceed 90 percent of the funds available in the Trust Fund for such fiscal year. Grants made under this section shall be for creating employment opportunities for unemployed and underemployed individuals in activities designed to address community needs and reduce disparities in health, housing, education, job readiness, and public infrastructure that have impeded these communities from realizing their full economic potential. A recipient of a grant under this section shall use the grant for the following purposes: Construction, re-construction, rehabilitation, and site improvements of residences or public facilities, including improvements in the energy efficiency or environmental quality of such public facilities or residences. Provision of human services, including child care services, health care services, education, or recreational programs. The remediation and demolition of vacant and abandoned properties to eliminate blight. Programs that provide disadvantaged youth with opportunities for employment, education, leadership development, entrepreneurial skills development, and training. The painting and repair of schools, community centers, and libraries. The restoration and revitalization of abandoned and vacant properties to alleviate blight in distressed and foreclosure-affected areas of a unit of general local government. The expansion of emergency food programs to reduce hunger and promote family stability. The augmentation of staffing in Head Start, child care, and other early childhood education programs to promote school readiness and early literacy. The renovation and enhancement of maintenance of parks, playgrounds, and other public spaces. Supplemental labor for existing federally or State-funded infrastructure projects. Supplemental labor for existing federally or State-funded projects aimed at expanding access to broadband or wireless Internet service. Other activities that address public needs and which can be implemented as quickly as the activities described in paragraphs
(1)through (11). Each grant recipient shall consult with community leaders, including labor organizations, nonprofit community-based organizations, local government officials, and local residents to— assess the needs of the community served by the grant recipient; determine sectors of the local economy that are in need of employees; make recommendations for new employment opportunities in the areas described in subsection (c); and assess the effectiveness of job placements made under this Act. As a condition of receiving a grant under this section, a grant recipient shall— agree to comply with the nondiscrimination policy set forth under section 109 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5309 ); with respect to the funds allocated for each project funded under the grant— allocate not less than 80 percent for wages, benefits, and support services, including child care services, for individuals, including supervisory and management personnel, employed on such project; and allocate the remaining funds to defray the nonlabor costs of the project, including necessary capital goods, supplies, materials, rental payments, transportation costs, and other similar expenses; use revenue generated by a project funded under the grant (whether in the form of fees paid for services provided by the project, reimbursements for expenses incurred in undertaking the project, or income from the sale of goods or services produced by the project) in excess of the costs of the project to— supplement the project budget; or support other projects funded by the grant in conformity with the purposes of this Act and subject to the same rules and requirements that apply to other such projects; ensure that employment on any project funded under the grant is carried out in accordance with subsection (c); institute an outreach program with community organizations and service providers in low-income communities to provide information about placements funded under the grant to individuals suited to perform community infrastructure work; and ensure that not less than 35 percent of individuals employed under the grant are individuals described in paragraph (4)(B) of subsection (f). Employment funded under this section shall meet the following specifications: Any employer that employs an individual whose employment is funded under the grant shall— continue to employ such individual for not less than 12 months, subject to the individual’s satisfactory performance of the reasonable requirements of the individual’s employment; if such an individual desires full-time employment, employ such individual for not less than 35 hours per week and not more than 40 hours, and if such an individual desires part-time work, employ such individual for a mutually agreed number of hours per week that is less than 35 hours per week; comply with responsible contractor standards, as determined by the relevant official in the unit of local general government; provide compensation to such individual on a per hour basis equal to the compensation provided to public sector employees who perform similar work in the community where such individual is employed or, if no public sector employees perform such similar work, provide compensation to such individual that is comparable to the compensation provided to private-sector employees who perform similar work in the community where such individual is employed; if such employment is in construction, provide compensation to any laborer or mechanic employed under the grant at rates not less than those prevailing on similar construction in the locality as determined by the Secretary in accordance with subchapter IV of chapter 31 of title 40, United States Code; and offer assistance to such individual in applying for social benefits for which such individual or the members of such individual’s family may be eligible. No individual whose employment is funded under the grant may work for an employer at which a collective bargaining agreement is in effect covering the same or similar work, unless— the consent of the union at such employer is obtained; and negotiations have taken place between such union and the employer as to the terms and conditions of such employment. An employer may not employ an individual for a position funded under this Act, if— employing such individual will result in the layoff or partial displacement (such as a reduction in hours, wages, or employee benefits) of an existing employee of the employer; or such individual will perform the same or substantially similar work that had previously been performed by an employee of the employer— has been laid off or partially displaced (as such term is described in subclause (I)); and has not been offered by the employer, to be restored to the position the employee had immediately prior to being laid off or partially displaced. For the purposes of this paragraph, a position shall be considered to have been eliminated by an employer if the position has remained unfilled and the unit or organization has not sought to fill such position for at least a period of one month. An individual may not be hired for a position funded under this Act in a manner that infringes upon the promotional opportunities of an existing employee (as of the date of such hiring) of an employer receiving funds under this Act. A community-based organization receiving funds under this Act may not use such funds to provide services or functions that are customarily provided by a unit of general local government where such services or functions are provided by the organization. An individual hired to fill a job funded under this Act shall register with and be certified by the appropriate State employment service as eligible for such employment and shall satisfy at least one of the following conditions as of the date the individual is so hired: The individual is receiving unemployment insurance benefits. The individual is unemployed, a member of a targeted group as defined by section 51(d) of the Internal Revenue Code of 1986, and has been seeking employment, with the assistance of the State employment service, for not less than 30 days prior to the date on which the individual is so hired. The individual is unemployed and seeking employment, with the assistance of the State employment service, for not less than 60 days prior to the date the individual is so hired. The individual has been employed part-time while seeking full-time employment with the assistance of the State employment service for not less than 13 weeks prior to the date the individual is so hired. An individual employed in a job funded under this Act shall— notwithstanding the individual’s employment in a job funded under this Act, be registered with the appropriate State employment service as available for and seeking work; respond appropriately, as a person available for and seeking employment, to referrals by the State employment service concerning available jobs; apply for suitable jobs for which the individual has been referred by the State employment service; and accept a suitable job if such job is offered to the individual. For purposes of subparagraphs
(C)and (D), the term suitable job means a job that a newly unemployed individual receiving unemployment insurance benefits would be required to accept in order to avoid forfeiting the individual’s eligibility for continued receipt of unemployment insurance benefits under the laws of the State in which the individual is employed in a job funded under this Act. An individual employed in a job funded under this Act who terminates that employment in order to accept other employment, and who subsequently is terminated from that other employment without fault on the individual’s part, shall be eligible for immediate reemployment in a job funded under this Act. In hiring individuals for positions funded under this Act, or using funds under this Act to continue to provide employee compensation for existing employees, an employer shall comply with all applicable Federal, State, and local laws, personnel policies and regulations, and collective bargaining agreements, as if such individual was hired, or such employee compensation were provided, without assistance under this Act. An individual hired for a position funded under this Act shall— be considered an employee of the employer, by which such individual was hired; and receive the same employee compensation, have the same rights and responsibilities and job classifications, and be subject to the same job standards, employer policies, and collective bargaining agreements as if such individual were hired without assistance under this Act. In selecting a project to receive funding for employing the individuals described in subsection (f)(4), a grant recipient shall consider— the input of all participants in a proposed project, including labor organizations, community organizations, and employers; the needs of the community intended to benefit from such project; the long-term goals and short-term objectives to address such needs; and any recommendations for programs and activities developed to meet such needs. A grant recipient under this section shall give priority to projects that— serve areas with the greatest level of economic need, determined for each such area by— the unemployment rate; the rate of poverty; the number of census tracts with concentrated poverty; the lowest median income; the percentage of vacant and abandoned properties; the percentage of home foreclosures; and the indicators of poor resident health, including high rates of chronic disease, infant mortality, and life expectancy; integrate education and job skills training, including basic skills instruction and secondary education services; coordinate to the maximum extent feasible with pre-apprenticeship and apprenticeship programs; and provide jobs in sectors where job growth is most likely, as determined by the Secretary, and in which career advancement opportunities exist to maximize long-term, sustainable employment for individuals after employment funded under this Act ends. Not more than 5 percent of the funds available in the Trust Fund for activities under this section for any fiscal year shall be reserved for grants to Indian tribes and for deposit into a discretionary fund established by the Secretary for national demonstration projects and multi-jurisdictional projects. Not more than 30 percent of the funds available in the Trust Fund for activities under this section for any fiscal year shall be allocated to States to distribute to units of general local government that do not qualify for funds under paragraph (3). Grant funds that are not reserved under paragraphs
(1)and
(2)shall be allocated to metropolitan cities and urban counties using the formula under section 106(b) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(b) ). Not later than 90 days after the last day of each fiscal year in which assistance under this section is furnished, a recipient of a grant under this section shall submit to the Secretary a report containing the following: A description of the progress made in accomplishing the objectives of this chapter. A summary of the use of the grant during the preceding fiscal year. For units of general local government, a listing of each entity receiving funds and the amount of such grants, as well as a brief summary of the projects funded for each such unit, the extent of financial participation by other public or private entities, and the impact on employment and economic activity of such projects during the previous fiscal year. For States, a listing of each unit of general local government receiving funds and the amount of such grants, as well as a brief summary of the projects funded for each such unit, the extent of financial participation by other public or private entities, and the impact on employment and economic activity of such projects during the previous fiscal year. The amount of money received and expended during the fiscal year. The number of individuals assisted under the grant whose household income is low-income, very low-income, or extremely low-income (as such terms are used for purposes of the Housing Act of 1937 and the regulations thereunder (42 U.S.C. 1437 et seq.)). The amount expended on administrative costs during the fiscal year. At least once every 6 months, the Secretary shall submit to Congress a report on the use of grants awarded under this section and any progress in job creation. Each grant recipient under this section shall agree to the arbitration procedure described in this subsection to resolve disputes described in subsections
(k)and (l). If an employee (or an employee representative) wishes to use the arbitration procedure described in this subsection, such party shall file a written grievance within the time period required under subsection
(k)or (l), as applicable, simultaneously with the chief executive officer of a unit or State involved in the dispute and the Secretary. Not later than 10 days after the date of the filing of the grievance, the chief executive officer (or the designee of the chief executive officer) shall have an in-person meeting with the party to resolve the grievance. If the grievance is not resolved within the time period described in paragraph (2)(B), a party, by written notice to the other party involved, may submit such grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the parties. If the parties cannot agree on an arbitrator within 5 days of submitting the grievance to binding arbitration under subparagraph (A), one of the parties may submit a request to the Secretary to appoint a qualified and independent arbitrator. The Secretary shall appoint a qualified and independent arbitrator within 15 days after receiving the request. Unless the parties mutually agree otherwise, the arbitrator shall conduct a hearing on the grievance and issue a decision not later than 30 days after the date such arbitrator is selected or appointed. Except as provided in clause (ii), the cost of an arbitration proceeding shall be divided evenly between the parties to the arbitration. If a grievant prevails under an arbitration proceeding, the recipient of a grant under this section shall pay the cost of such proceeding, including attorneys’ fees. In a case where a unit of general local government that is an entitlement community or a State has improperly requested funds for services or functions to be provided by a community-based organization that are customarily provided by the unit or, in the case of a State, by a unit located in the nonentitlement area of the State where services or functions will be provided by the organization, an employee or employee representative of the unit or State may file a grievance under subsection
(j)not later than 15 days after public notice of an intent to submit an application under this section is published. Upon receiving a copy of the grievance, the Secretary shall withhold the funds subject to such grievance, unless and until the grievance is resolved under subsection (j), by the parties or an arbitrator in favor of providing such funding. In the case of a dispute not covered under subsection
(k)concerning compliance with the requirements of this section by a recipient of a grant under this section, an employee or employee representative of the unit or State may file a grievance under subsection
(k)not later than 90 days after the dispute arises. In such cases, an arbitrator may award such remedies as are necessary to make the grievant whole, including the reinstatement of a displaced employee or the payment of back wages, and may submit recommendations to the Secretary to ensure further compliance with the requirements of this title, including recommendations to suspend or terminate funding, or to require the repayment of funds received under this title during any period of noncompliance. A party to a dispute described in paragraph
(1)may use the existing grievance procedure of a recipient of a grant under this section, or the arbitration procedure described in this subsection, to resolve such dispute. For purposes of subsections (j), (k), and (l), the term party means the employee and the recipient of a grant under this section, involved in a dispute described in subsection
(k)or (l). The Secretary shall post on a publicly accessible Internet Web site of the Department of Labor the contact information for reporting noncompliance with this title by a State, unit of general local government, community-based organization, or individual receiving funding under this title. If the Secretary receives a complaint alleging noncompliance with this title, the Secretary may conduct an investigation and after notice and an opportunity for a hearing, may order such remedies as the Secretary determines appropriate, including— withholding further funds under this title to a noncompliant entity; requiring the entity to make an injured party whole; or requiring the entity to repay to the Secretary any funds received under this title during any period of noncompliance. A remedy described in subparagraph
(A)may also be ordered by the Secretary upon recommendation by an arbitrator appointed or selected under this section.
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Sec. 5
Employment opportunity grants to States, local governments, and Indian tribes
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