Sec. 2. Employer-directed skills accounts

1,459 words·~7 min read·/bill/117/hr/6255/ih/section-2

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Section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 ) is amended— by redesignating paragraphs

(19)through

(71)as paragraphs

(20)through (72), respectively; and by inserting after paragraph (18), the following: The term “employer-sponsored skills development” means a skills development program— that is selected by an employer to meet the specific skill demands of the employer; that is conducted pursuant to terms and conditions which are established under an employer-sponsored skills development agreement described in section 134(c)(3)(I)(iv), including a commitment by the employer to employ an individual upon successful completion of the program; for which an employer pays a portion of the cost of the program, which shall not be less than— 10 percent of the cost, in the case of an employer with not more than 50 employees; 25 percent of the cost, in the case of an employer with more than 50 employees but not more than 100 employees; and 50 percent of the cost, in the case of an employer with more than 100 employees; and for which the Federal share of the cost of the program is provided to the employer through an employer-directed skills account in accordance with section 134(c)(3)(I)(ii). . Paragraph

(45)of section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 ) is amended, as redesignated by paragraph (1)(A)— in subparagraph (B), by striking and at the end; in subparagraph (C), by striking the period at the end and inserting ; and ; and by adding at the end the following: in a case in which each of the conditions under section 134(c)(3)(I)(i) are met with respect to such training (including the establishment of an on-the-job training agreement described in section 134(c)(3)(I)(iii)), provides the Federal share of the cost of training to the employer through an employer-directed skills account. . The Workforce Innovation and Opportunity Act ( 29 U.S.C. 3101 et seq. ) is amended— in section 134(c)(3)(H)(i) ( 20 U.S.C. 3174(c)(3)(H)(i) ), by striking section 3(44) and by inserting section 3(45) ; and in section 211(e)(3) ( 20 U.S.C. 3291(e)(3) ), by striking section 3(45) and inserting section 3(46) . Section 122(h) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(h) ) is amended— in paragraph (1), by inserting employer-sponsored skills development, after incumbent worker training, ; and in paragraph (2), by inserting employer-sponsored skills development, after incumbent worker training, . Section 134(c)(2)(A) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(2)(A) ) is amended— in clause (xii), by striking and at the end; in clause (xiii), by striking the period and inserting a semicolon; and by adding at the end the following: provision of information on employers in the local areas that are offering employer-sponsored skills development or on-the-job training programs that may be reimbursed through an employer-directed skills account established under section 134(c)(3)(I) and the performance information available on such programs; and provision of assistance, in coordination with employers in the local areas that are offering employer-sponsored skills development or on-the-job training, in establishing employer-sponsored skills development agreements or on-the-job training agreements. . Section 134(c)(3) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(3) ) is amended— in subparagraph (A)— in clause (i), by inserting or

(iii)after clause

(ii); by redesignating clause

(iii)as clause (iv); and by inserting after clause

(ii)the following: A one-stop operator or one-stop partner shall not be required to conduct an interview, evaluation, or assessment of a participant under clause

(i)if such participant is selected by an employer under section 134(c)(3)(I)(i) to receive on-the-job training or employer-sponsored skills development, and the applicable conditions under such section are met for such individual to receive such services. ; and in subparagraph (D)— in clause (x), by striking and at the end; in clause (xi), by striking the period at the end and inserting ; and ; and by adding at the end the following: employer-sponsored skills development programs conducted with a commitment by an employer to employ an individual upon successful completion of such a program. . Section 108(b)(19) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3123 ) is amended by inserting or employer-directed skills accounts after individual training accounts . Section 134(c)(3)(F) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(3)(F) is amended— by redesignating clauses

(iv)and

(v)as clauses

(v)and (vi), respectively; by inserting after clause (iii), the following: In a case in which an individual is selected by an employer under section 134(c)(3)(I)(i) to receive on-the-job training or employer-sponsored skills development, and the applicable conditions under such section are met for such individual to receive such services, the one-stop operator involved shall arrange for payment for such services through an employer-directed skills account in accordance with section 134(c)(3)(I)(ii). ; and in clause (v), as redesignated by subparagraph (A), by inserting or employer-directed skills accounts after individual training accounts . Section 134(c)(3)(G) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(3)(G) ) is amended— by redesignating clauses

(iii)and

(iv)as clauses

(iv)and (v), respectively; in clause (i), by striking clause

(ii)and inserting clauses

(ii)and

(iii); by inserting after clause (ii), the following: Services authorized under this paragraph may be provided pursuant to an employer-directed skills account in lieu of an individual training account if such services are employer-sponsored skills development or on-the-job training and the applicable conditions under section 134(c)(3)(I)(i) are met for an individual to receive such services. ; and in clause

(v)(as redesignated by subparagraph (A)), by inserting , employer-directed skills accounts, after individual training accounts . Section 134(c)(3) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(3) ) is amended by adding at the end the following: An individual shall receive on-the-job training or employer-sponsored skills development through the use of an employer-directed skills account, if each of the following conditions are met: An employer selects the individual, who is not an employee of such employer, for on-the-job training or employer-sponsored skills development. In the case of an individual selected under subclause

(I)to receive on-the-job training, an on-the-job training agreement that meets the requirements of clause

(iii)is established and signed by the individual and the employer; or in the case of an individual selected under subclause

(I)to receive employer-sponsored skills development, an employer-sponsored skills development agreement that meets the requirements of clause

(iv)is established and signed by the individual and the employer. The employer submits to the local one-stop operator each of the following: A certification that the individual requires an on-the-job training or employer-sponsored skills development program to obtain employment with the employer, and has the skills and qualifications to successfully participate in such a program. A certification that the employer will submit the necessary performance information to the one-stop operator in accordance with section 122(h). The on-the-job training agreement or the employer-sponsored skills development agreement described in subclause (II), as applicable. The one-stop operator involved reviews and approves each certification and agreement received under subclause (III). The one-stop operator involved in on-the-job training or employer-sponsored skills development under clause

(i)shall arrange for the appropriate payment of such services through an employer-directed skills account as follows: For on-the-job training, the one-stop operator involved shall reimburse the employer from funds in the employer-directed skills account in accordance to the reimbursement requirements of section 3(45)(B) and after receipt of documentation of the wages earned by the individual during such training. For employer-sponsored skills development services, the one-stop operator involved shall reimburse the employer from funds in the employer-directed skills account for the Federal share of the costs of the program after receipt of documentation from the employer of payment of such costs. An on-the-job training agreement under clause

(i)shall— establish— the length of the on-the-job training; the hourly wage rate of the individual; the skills necessary for the job and the individual’s current skill level as of the date of the agreement; and the skills to be learned during the on-the-job training; and include an assurance that the employer will provide the one-stop operator involved with documentation of the wages earned by the individual while engaged in such on-the-job training for the purpose of reimbursement to the employer. An employer-sponsored skills development agreement referred to in clause

(i)shall establish— the provider of the employer-sponsored skills development program; the length of such program; the skills to be learned during such program; a commitment by the employer to employ the individual upon successful completion of the program; the cost of the program; and the amount of such cost that will be paid by the employer (the non-Federal share), which shall be not less than the amount specified in section 3(19)(C). .

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