Sec. 102. Grants to States to conduct demonstration projects to promote economic opportunity for low-income parents

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To assist States in implementing section 466(a)(15) of the Social Security Act, the Secretary of Health and Human Services shall award grants to States to conduct demonstration projects to establish, in coordination with counties and other local or tribal governments, court-supervised or IV–D agency supervised-employment programs for noncustodial parents who have barriers to employment and a history of nonpayment of child support obligations, as determined by a court or the IV–D agency, and who are determined by the court or agency to be in need of employment services or placement in order to pay such child support obligations.

A noncustodial parent described in the preceding sentence who is an ex-offender shall be eligible to participate in a program established under this subsection. A State shall not be eligible to receive a grant under this subsection unless any program established with funds made available under the grant provides noncustodial parents described in paragraph

(1)with an option to participate in the program prior to the court or agency entering a finding that the noncustodial parent is in contempt for failure to pay a child support obligation and, potentially subject to criminal penalties. An employment program established with funds made available under a grant awarded under this subsection shall be designed to do the following: To assist noncustodial parents described in paragraph

(1)obtain and maintain unsubsidized employment. To increase the amount of financial support received by children. To help noncustodial parents described in paragraph

(1)improve relationships with their children and their children's custodial parent. An employment program established with funds made available under this subsection shall not permit a noncustodial parent placed in the program to graduate from the program and avoid penalties for failure to pay a child support obligation until the noncustodial parent completes at least 6 months of continuous, timely payment of the parent’s child support obligations. Services provided under an employment program established with funds made available under a grant made under this subsection must include the following: Job placement, including job development and supervised job search as necessary. Case management, including educational assessment and advising, vocational assessment and career exploration services, and court liaison services. Counseling on responsible parenthood. Referral for support and educational services. Employment retention services. Services provided under an employment program established with funds made available under a grant made under this subsection may include the following: Remedial education services or educational referral. Support funds for services such as transportation, child care, or short-term training. Transitional jobs programs. Public-private career pathway partnerships established in accordance with subsection (b)(2). Occupational skill training, including college credit programs. Curricula development. A State that receives a grant under this subsection may contract with a public or private nonprofit organization, including a faith-based or community-based organization, to administer (in conjunction with the court of jurisdiction or the IV–D agency) the court-supervised or IV–D agency-supervised employment program. The Secretary of Labor shall award grants to States to conduct demonstration projects to carry out one or more of the projects described in paragraphs

(1)and (2). To establish and expand transitional jobs programs for eligible individuals, including such programs conducted by local governments, State employment agencies, nonprofit organizations, and faith-based or community-based organizations or intermediaries, that— combine time-limited employment in transitional jobs that may be subsidized with public funds, with activities that promote skill development and remove barriers to employment, such as case management services and education, training, child support-related services, and other activities, pursuant to individual plans; and provide such individuals with— transitional jobs placements and job placement assistance, to help the individuals make the transition from subsidized employment in transitional jobs to stable unsubsidized employment; and retention services after the transition to unsubsidized employment. For purposes of this paragraph, the term eligible individuals means individuals within any of the following categories of disproportionately chronically unemployed individuals: Individuals who have attained age 16, but not attained age 36, and who have documented barriers to employment such as lack of a high school diploma, limited English proficiency, aging out of foster care, or offender status, particularly such individuals who are parents or expectant parents. Formerly incarcerated individuals. Homeless or formerly homeless individuals. Individuals with disabilities. Individuals designated by a court or the IV–D agency to participate in transitional jobs programs. An entity that receives a grant under this paragraph shall use the funds made available under the grant to operate a transitional jobs program for eligible individuals consistent with the following requirements: The program operator shall place eligible individuals in temporary jobs, the incomes from which may be subsidized in whole or in part with public funds. An eligible individual placed in such a job (referred to in this paragraph as a participant ) shall perform work directly for the program operator or another public, nonprofit, or private sector organization (which operator or organization may be referred to in this paragraph as a worksite employer ) within the community involved. Subject to item (bb), the transitional jobs program shall provide a participant with not less than 30, and not more than 40, hours per week of a combination of paid employment and the services described in subclauses (III), (IV), and (V). The number of hours per week required under item

(aa)may be adjusted in the case of a participant who requires a modified work week to accommodate special circumstances. The program operator shall— develop an individual plan for each participant, which shall contain a goal that focuses on preparation of the participant for unsubsidized jobs in demand in the local economy that offer the potential for advancement and growth (including increases in wages and benefits); develop transitional jobs placements for participants that will best prepare them for jobs described in item

(aa)or participation in the public-private career pathway partnerships established in accordance with paragraph (2); and provide case management services and ensure that appropriate education, training, and other activities are available to participants, consistent with each participant’s individual plan. The program operator shall provide job placement assistance to help participants obtain unsubsidized employment and shall provide retention services to the participants for a minimum of 6 months after entry into the unsubsidized employment. In any workweek in which a participant is scheduled to work at least 30 hours in the program, not less than 20 percent of the scheduled hours and not more than 50 percent of the scheduled hours shall involve participation in— education or training activities designed to improve the participant’s employability and potential earnings; other activities designed to reduce or eliminate any barriers that may impede the participant’s ability to secure and advance in unsubsidized employment; or activities designed to promote financial literacy and the use of products and services that increase personal savings and build financial assets for family support, education, homeownership, and retirement. Subject to item (bb), the duration of any placement in the program shall be for a minimum period of 3 consecutive months. A program placement may be extended for up to 2 additional consecutive 3-month periods upon the conclusion of the original 3-month placement period if such extension would be consistent with the individual’s plan for transition to unsubsidized employment. The worksite employer or program operator shall supervise program participants, consistent with the goal of addressing the limited work experience and skills of the participants. Not later than 120 days after the end of the grant period, the State shall submit a report to the Secretary of Labor that contains information on the number of participants in the program who have entered unsubsidized employment, the percentage of program participants who are employed during the second quarter after exit, the percentage of program participants who are employed during the fourth quarter after exit, the median earnings of program participants during the second quarter after exit, the percentage of program participants who obtain an education or training credential during participation or within one year of exit, and demographic information regarding the participants. The Secretary of Labor shall enter into contracts with entities with demonstrated experience in the provision of transitional jobs to provide technical assistance to the program operators and worksite employers for the programs assisted under this paragraph. To allow workforce education providers representing career pathway partnerships— to create or expand career pathways, with groups of employers in specific industry or occupational sectors, for disadvantaged workers, which may include any mix of such employers’ existing lower wage employees, new hires or potential hires; or to fill in gaps in career pathways in particular localities or regions as needed to ensure that career pathways are accessible to unemployed disadvantaged workers and at risk youth who have lower skills or limited English proficiency, including through the creation of workforce education services, such as bridge programs that contextualize basic skills, English language, or college remedial education services to specific career pathways, and efforts to create opportunities for gaining work experience in a career pathway. Funds made available under a grant under this paragraph may be used by career pathways partnerships for any expense reasonably related to the accomplishment of the specific objectives of the partnership and the purpose described in this paragraph, including any of the activities described in subsection (a)(2)(D). Of the funds made available to a career pathway partnership to carry out the purpose described in this paragraph— not more than 30 percent of such funds may be used to pay or subsidize wages during a period of work experience or internship, not to exceed 90 days; and not more than 10 percent of such funds may be used for administrative purposes, but this limitation shall not apply to activities related to building and maintaining partnerships, including such activities as conducting workforce needs assessments, brokering public-private and interagency agreements, creating customized curricula, and developing work experience opportunities. No funds made available to carry out this paragraph shall be used to subsidize the wages of any individual who, as of the date of the establishment of the career pathway partnership, is an employee of any employer participating in the partnership. Funds shall be made available to career pathway partnerships to carry out the purpose described in this paragraph based on a performance-based accountability system that includes the following measures of performance: The number of individuals to be trained. The percentage of such individuals who complete the program. The percentage of such individuals who enter or advance in employment. The wage and benefit gains of individuals who complete the program before and within 6 months after their program completion, including the extent to which the individuals achieved economic self-sufficiency. The percentage of individuals who complete the program and enter employment who retain employment for at least 6 months. Where applicable, the percentage of individuals who owe child support and complete the program who improve in their payment of child support within 6 months after their program completion. In establishing goals for such measures, due consideration shall be given to the education, work experience, and job readiness of the individuals expected to participate in the program, the barriers of such individuals to employment, and the local job market. A subgrantee's level of success in achieving employment, advancement, wage, and employment retention goals shall be a primary consideration for determining whether to renew a grant made to such entity and the funding level for such grant. In awarding subgrants under this paragraph, a State shall give priority to applications that— propose to serve areas of high poverty, high youth unemployment, high dropout rates, or high rates of low-income single-parent families; include a substantial cash or in-kind match by all employers, including joint labor-management programs where applicable, in the partnerships, such as paid release time for employed workforce education participants; use instructional materials and instructors directly used in the specific business or industry sectors of the partnership employers; link successful completion of workforce education services to wage increases, promotions or job hires; will result in attainment of employer-recognized occupational and educational credentials; address career guidance and adult basic education and English language needs as well as job-specific skills; demonstrate a blending of resources from partner agencies in the workforce system and other sectors and Federal programs, including superior procedures for coordinating responsible fatherhood promotion activities, where appropriate, to support the development of high quality pathways; identify how the subgrantee will maximize services to unemployed disadvantaged workers who also face other barriers in the labor market, such as high school dropout, offender status, aging out of foster care, low basic skill level, including limited English proficiency, learning disabilities, physical, emotional or behavior disabilities, or substance abuse recovery, which may be through direct relationships with local providers of transitional jobs programs under which in appropriate circumstances transitional jobs participants may access career pathways programs upon completion of the transitional jobs program; and support collaboration, as appropriate, between employers and labor organizations and other workforce development professionals, including joint labor management training and education programs where appropriate. In this paragraph: The term adult education has the meaning given that term in section 203 of the Workforce Investment Act of 1998 (20 U.S.C. 9202). The term career pathway means a linked set of workforce education and job opportunities within a specific industry sector, or for an occupational sector that cuts across multiple business and industry sectors, which begins at the lowest skill and English language levels, and extends through for-credit college opportunities such as earning relevant associate or bachelor’s degrees, and prepares individuals for advancement in jobs in demand in the local or regional labor market. The term community-based provider means a not-for-profit organization, with local boards of directors, that directly provides workforce education services. The term institution of higher education has the meaning given that term in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). The term charter school has the meaning given that term in section 5210 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7221i ). The term area career and technical education school has the meaning given that term in section 3 of the Carl D. Perkins Vocational and Technical Education Act of 1998 (20 U.S.C. 2302). The term disadvantaged workers means unemployed individuals in low-income households or employed individuals in low-income households with wages at or below 2/3 of the median wage for the State or region applying for the grant. The term career pathway partnership means collaborations of 1 or more workforce education providers, 1 or more employers, 1 or more labor organizations, where applicable, as a result of such organization's representation of employees at the worksite who have skills in which the training or employment programs are proposed, and may include optional additional entities as needed to provide a comprehensive range of workforce education and ancillary support services. The term workforce education means a set of career guidance and exploration services, adult education and English language services, job training, registered apprenticeship programs, and credit and noncredit postsecondary education services aimed at preparing individuals to enter and sustain employment in specific occupations and to have the sufficient skills to respond to shifting employment opportunities. The term workforce education provider means community-based providers, institutions of higher education, area vocational and technical education schools, charter schools, and other public nonprofit entities that have a demonstrated capacity to provide quality workforce education services. The Secretary of Health and Human Services and the Secretary of Labor may not award a grant to a State under this section unless the State agrees that, with respect to the costs to be incurred by the State in conducting a demonstration project with funds provided under the grant, the State will make available non-Federal contributions in an amount equal to 10 percent of the amount of Federal funds paid to the State under such grant. In this subsection, the term non-Federal contributions includes contributions by the State and by public and private entities that may be in cash or in kind, but does not include any amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, or any amount expended by a State before October 1, 2013. A worksite employer of a participant in a program or activity funded under this section shall pay the participant at the rate paid to employees of the worksite employer who are not participants in such program or activity and who perform comparable work at the worksite, including periodic increases where appropriate. If no other employees of the worksite employer perform comparable work at the worksite, the worksite employer shall pay the participant not less than the applicable Federal or State minimum wage, whichever is higher. An individual employed through participation in a program or activity funded under this section shall be provided with benefits and working conditions at the same level and to the same extent as such benefits and conditions are provided to other employees of the employer of the individual who have worked a similar length of time and perform the same work. Funds provided through a grant made under this paragraph shall be used only for a program or activity that does not duplicate, and is in addition to, a program or activity otherwise available in the locality of the program or activity funded under this section. Funds provided through a grant made under this section shall not be provided to a private nonprofit entity to conduct programs or activities that are the same as or substantially equivalent to activities provided by a State or local government agency in the area in which such entity is located, unless the requirements of paragraph

(3)are met. A worksite employer shall not displace an employee or position (including partial displacement such as reduction in hours, wages, or employment benefits) or impair contracts for services or collective bargaining agreements, as a result of the use by such employer of a participant in a program or activity funded under this section, and no participant in the program or activity shall be assigned to fill any established unfilled position vacancy. A job opportunity shall not be created under this paragraph that will infringe in any manner on the promotional opportunity of an employed individual. A participant in any program or activity funded under this section shall not perform any services or duties, or engage in activities, that will supplant the hiring of employees that are not participants in the program or activity. A participant in any program or activity funded under this section shall not perform services or duties, or engage in activities, that are services, duties, or activities that had been performed by or were assigned to any employee who recently resigned or was discharged, who is subject to a reduction in force, who has recall rights pursuant to a collective bargaining agreement or applicable personnel procedures, who is on leave (such as terminal, temporary, vacation, emergency, or sick leave), who is on strike, or who is being locked out. No placement shall be made under a program or activity funded under this section until the entity conducting the program or activity has obtained the written concurrence of any local labor organization representing employees who are engaged in the same or substantially similar work as that proposed to be carried out for the worksite employer with whom a participant is to be placed under the program or activity. A State conducting a demonstration project funded under this section and any entity conducting a program or activity funded under this section shall provide the Secretary with a certified assurance that none of such funds shall be used to assist or deter union organizing. Funds provided under this section shall not be used to subsidize training or employment with an employer that has a demonstrable record of noncompliance with Federal labor, civil rights, workplace safety, or related laws. Employers who receive training or wage subsidies under programs or activities funded under this section shall have a satisfactory record in labor relations and employment practices, as certified by the Secretary of Labor. A participant in a program or activity funded under this section shall be considered to be an employee of any employer that the participant is placed with for all purposes under Federal and State law, including laws relating to health and safety, civil rights, and worker’s compensation. Employers who receive training or wage subsidies under programs or activities funded under this section shall meet all applicable State or local job or employer quality standards regarding such issues as wages, benefits, advancement opportunities, and turnover rates established for programs funded under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.). An entity conducting a program or activity funded under this section shall establish and maintain a procedure for the filing and adjudication of grievances by employees of worksite employers who are not participants in the program, or such employees’ representatives, or by participants in such a program or activity alleging a violation of a provision of this subsection that is similar to the grievance procedure established by a State for purposes of section 407(f)(3) of the Social Security Act (42 U.S.C. 607(f)(3)). The provisions of this subsection shall not be construed to preempt any provision of State law that affords greater protections to employees or participants than are afforded by this subsection. Amounts paid to a participant in a program or activity funded under this section shall be— considered earned income for purpose of determining the participant's eligibility for the child tax credit established under section 24 of the Internal Revenue Code of 1986, the earned income tax credit established under section 32 of such Code, and any other tax benefit established under such Code the eligibility for which is based on earned income; and disregarded for purposes of determining the participant's, the participant's family's, or the participant's household's eligibility for, or amount of, assistance or benefits provided under any means-tested program funded in whole or in part with Federal funds. A State desiring to receive a grant to conduct a demonstration project under this section shall submit an application— to the Secretary of Health and Human Services, in the case of a grant under subsection (a); or to the Secretary of Labor, in the case of a grant under subsection (b); at such time, in such manner, and containing such information or assurances as the Secretary of Health and Human Services or the Secretary of Labor, as appropriate, may require. The application shall include an assurance that the State and any entity conducting a program or activity under the project shall comply with the worker protections and labor standards established in accordance with such protections under subsection (d). The application shall include an assurance that the State and any entity conducting a program or activity under the demonstration project shall comply with section 188(a)(2) of the Workforce Investment Act of 1998 ( 29 U.S.C. 2938(a)(2) ) to the same extent that such section would apply to the entity if the program or activity conducted under the demonstration project was considered to be funded or otherwise financially assisted under that Act. The application shall include an assurance from the chief executive officer of the State that funds made available under the grant will supplement, and not supplant, other funds used by the State to establish or support employment placements for low-income parents. In order to conduct a demonstration project described in subsection (a), a State shall include in the application submitted to the Secretary of Health and Human Services the following: Evidence of an agreement between the State and 1 or more counties to establish an employment program that meets the requirements of subsection (a). The number of potential noncustodial parents to be served by the program. The purposes specific to that State’s program. The median income of the target population. In order to conduct a demonstration project described in paragraph

(2)of subsection (b), a State shall include in the application submitted to the Secretary of Labor a description of— the number, characteristics, and employment and earnings status of disadvantaged individuals in the State or applicable region where the program is to be conducted; which business and industry sectors, or occupational clusters that cut across sectors, will be targeted by the career pathways partnership, based on overall economic benefit to the community, the current and future demand for workers, the advancement opportunities for workers, the wages at each step of the career pathway, and availability of worker benefits; the interventions that will be put in place to address any educational deficits, limited English proficiency, or learning disabilities of individuals who participate in the program and to ensure that such individuals have the academic, technical, communications, and other job skills to function in the jobs targeted by the partnership; how the members of the partnership will collaborate on the development of curriculum and delivery of training that will provide the necessary occupational, academic and other work-related skills and credentialing needed for the specific labor market areas; the supports that will be used to provide counseling, mentoring or other support to individuals while in training or to assist them in navigating in complicated work environments; the set of career exposure activities that will be put in place to provide hands-on experience such as work experience, on the job training, internships, or work-study; the agreements that are in place with employers, industry groups, and labor organizations, where applicable, to ensure access to jobs and advancement opportunities in the targeted businesses, industry, or occupations; how the workforce education providers in the partnership will assess the employment barriers and needs of local disadvantaged individuals who participate in the program and will identify resources for meeting those needs; how the workforce education providers will work with partnership employers, business and industry groups, labor organizations, where applicable, and local economic development organizations to identify the priority workforce needs of the local industry; how the partnerships will ensure that the appropriate program delivery models and formal agreements are in place to ensure maximum benefits to the individuals receiving career pathway partnership services and to the employers and labor organizations, where applicable, in the partnership and the industries or businesses they represent; how partnership employers and labor organizations, where applicable, will be actively involved in identifying specific workforce education needs, planning the curriculum, assisting in training activities, providing job opportunities, and coordinating job retention for individuals hired after training through the program and followup support; and how the partnership will build on existing career pathways programs, where applicable, to serve the targeted population. The Secretary of Health and Human Services and the Secretary of Labor may exempt an Indian tribe or tribal organization from any requirement of this section that the Secretary of Health and Human Services or the Secretary of Labor determines would be inappropriate to apply to the Indian tribe or tribal organization, taking into account the resources, needs, and other circumstances of the Indian tribe or tribal organization. Subject to paragraphs

(2)and (3), the State shall give priority to making grants under this section to entities that— demonstrate success with respect to meeting the goals of quality job placement, long-term unsubsidized job retention, and, where applicable, increasing child support payments, decreasing unpaid child support arrearages, and increasing the involvement of low-income noncustodial parents with their children through their participation in responsible fatherhood activities, including participation in programs that provide culturally relevant curricula in core subjects including— conducting activities with children; improving communication skills; child support management; providing financially for the family's security and well-being; managing stress and anger; maintaining physical and mental health; parenting and relationship skills; child development; and barriers to responsible parenthood, including substance abuse, unemployment, criminal justice system involvement, and inadequate housing; and coordinate with, and link individuals as applicable to, other public and private benefits and employment services for low-income adults, including the criminal justice system, programs funded under each part of title IV of the Social Security Act (including programs funded under section 403(a)(2) of such Act), educational assistance and student aid programs, and job training or employment services, including State employment agencies. In making grants under this section, the Secretary of Health and Human Services (in the case of a grant under subsection (a)) and the Secretary of Labor (in the case of a grant under subsection (b)) shall ensure that grantees demonstrate a plan for implementing measures to track their performance with respect to meeting the goals of quality job placement, long-term unsubsidized job retention, and, where applicable, increasing child support payments, decreasing child support arrearages, and increasing the involvement of low-income noncustodial parents with their children. In making grants under this section, the Secretary of Health and Human Services (in the case of a grant under subsection (a)) and the Secretary of Labor (in the case of a grant under subsection (b)) shall give priority to States with proposed demonstration projects that are designed to target low-income adults, including custodial and noncustodial parents, and low-income married couples. In making grants under subsection (b), the Secretary of Labor shall ensure that a substantial share of the amount appropriated under subsection

(j)for a fiscal year is used for carrying out each of the projects described in paragraphs

(1)and

(2)of subsection (b). The Secretary of Labor and the Secretary of Health and Human Services, in coordination with the Secretary of Education and the Attorney General, shall work with grantees under this section to resolve policy barriers that may impede blending of Federal resources to support these demonstration projects. The Secretary of Health and Human Services (in the case of a grant under subsection (a)) and the Secretary of Labor (in the case of a grant under subsection (b)) shall provide for an independent and rigorous evaluation of the demonstration projects conducted under this section that includes, to the maximum extent feasible, random assignment or other appropriate statistical techniques, in order to assess the effectiveness of the projects. In this section: The term State means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and includes an Indian tribe or tribal organization. The term IV–D agency means the State or local agency responsible for administering the State program established under part D of title IV of the Social Security Act ( 42 U.S.C. 651 et seq. ). The terms Indian tribe and tribal organization have the meaning given such terms in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to carry out this section— for programs administered by the Secretary of Health and Human Services under subsection (a), $15,000,000 for each of fiscal years 2014 through 2018; and for programs administered by the Secretary of Labor under subsection (b), $35,000,000 for each of fiscal years 2014 through 2018.

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