Sec. 143. Use of funds for employment and training activities
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Section 134(a)(1) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(a)(1) )— in subparagraph (A), by striking and at the end; in subparagraph (B)— in the matter preceding clause (i), by striking 128(a) and inserting 128(a)(1) ; and in clause (ii)— by striking the comma at the end and inserting or to establish and administer a critical skills fund under paragraph (4); and ; and by inserting before the flush left text at the end the following: as described in section 128(a)(3), shall be used to establish and administer a critical industry skills fund described in paragraph (4). .
Section 134(a)(2)(A) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(a)(2)(A) ) is amended— in clause (i)— in subclause (I)— by striking working and inserting as a rapid response unit working ; and by striking and at the end; in subclause (II), by striking the period at the end and inserting ; and ; and by adding at the end the following: provision of additional assistance to a local area that has excess demand for individual training accounts for dislocated workers in such local area and requests such assistance under paragraph
(5)of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 ( 29 U.S.C. 3224a(5) ), upon a determination by the State that, in using funds allocated to such local area pursuant to paragraph
(1)of such section 414(c) and subsection (c)(1)(B) of this section for the purpose described in paragraph (2)(A) of such section 414(c), the local area was in compliance with the requirements of such section 414(c). ; and by adding at the end the following: If a State determines that a local area with excess demand as described in clause (i)(III) met the compliance requirements described in such clause, but the State does not have sufficient funds reserved under section 133(a)(2) to meet such excess demand, the State— shall notify the Secretary of such excess demand; and if eligible, may apply for a national dislocated worker grant under section 170 of this Act. . Section 134(a)(2)(B) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(a)(2)(B) is amended— in clause (i)— in subclause (III), by striking and at the end; in subclause (IV)— by inserting the development and education of staff to increase expertise in providing opportunities for covered veterans (as defined in section 4212(a)(3)(A) of title 38, United States Code) to enter in-demand industry sectors or occupations and nontraditional occupations), after exemplary program activities, ; and by adding and at the end; and by adding at the end the following: local boards and eligible training providers in carrying out the performance reporting required under section 116(d), including facilitating data matches for program participants using quarterly wage record information (including the wage records made available by any other State) and other sources of information, as necessary to measure the performance of programs and activities conducted under chapter 2 or chapter 3 of this subtitle; ; in clause (ii), by striking
(7)and inserting
(6); in clause (v)— in subclause (II), by striking customized training and inserting employer-directed skills development ; and in subclause (VI), by striking and at the end; in clause (vi), by striking the period at the end and inserting a semicolon; and by adding at the end the following: coordinating (which may be done in partnership with other States) with industry organizations, employers (including small and mid-sized employers), industry or sector partnerships, training providers, local boards, and institutions of higher education to identify or develop competency-based assessments that are a valid and reliable method of collecting information with respect to, and measuring, the prior knowledge, skills, and abilities of individuals who are adults or dislocated workers for the purpose of— awarding, based on the knowledge, skills, and abilities of such an individual validated by such assessments— a recognized postsecondary credential that is used by employers in the State for recruitment, hiring, retention, or advancement purposes; postsecondary credit toward a recognized postsecondary credential aligned with in-demand industry sectors and occupations in the State for the purpose of accelerating attainment of such credential; and postsecondary credit for progress along a career pathway developed by the State or a local area within the State; developing individual employment plans under subsection (c)(2)(B)(vii)(II) that incorporate the knowledge, skills, and abilities of such an individual to identify— in-demand industry sectors or occupations that require similar knowledge, skills, and abilities; and any upskilling needed for the individual to secure employment in such a sector or occupation; and helping such an individual communicate such knowledge, skills, and abilities to prospective employers through a skills-based resume, profile, or portfolio; and disseminating to local areas and employers information relating to the competency-based assessments identified or developed pursuant to clause (vii), including— any credential or credit awarded pursuant to items
(aa)through
(cc)of clause (vii)(I); the industry organizations, employers, training providers, and institutions of higher education located within the State that recognize the knowledge, skills, and abilities of an individual validated by such assessments; how such assessments may be provided to, and accessed by, individuals through the one-stop delivery system; and information on the extent to which such assessments are being used by employers and local areas in the State. . Section 134(a)(3)(A) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(a)(3)(A) )— in clause (i)— by inserting or evidence-based after innovative ; and by striking customized training and inserting employer-directed skills development ; in clause (ii), by inserting , or bringing evidence-based strategies to scale, after strategies ; in clause (iii), by striking and prior learning assessment to and inserting , prior learning assessment, or a competency-based assessment identified or developed by the State under paragraph (2)(B)(vii), to ; in clause (viii)(II)— in item (dd), by striking and literacy and inserting , literacy, and digital literacy ; in item (ee), by striking ex-offenders in reentering the workforce; and and inserting justice-involved individuals in reentering the workforce; ; and by adding at the end the following: programs under the Older Americans Act of 1965 ( 42 U.S.C. 3001 et seq. ) that support employment and economic security; and ; in clause (xiii), by striking and at the end; in clause (xiv), by striking the period at the end and inserting a semicolon; and by adding at the end the following: supporting employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments (including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(vii)), and support in the creation of skills-based job descriptions; developing partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in regions of the State, as determined by the most recent analysis conducted under subparagraphs (A), (B), and
(C)of section 102(b)(1); identifying and making available to residents of the State, free or reduced cost access to online skills development programs that are aligned with in-demand industries or occupations in the State and lead to attainment of a recognized postsecondary credential valued by employers in such industries or occupations; and establishing and administering critical skills fund under paragraph (4). . Section 134(a) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(a) ), as amended, is further amended by adding at the end the following: A State shall use funds reserved under paragraph (3)(A) of section 128(a), and any funds reserved under paragraph (3)(B) of section 128(a), to establish and administer a critical industry skills fund to award performance-based payments on a per-worker basis to eligible entities that provide eligible skills development programs to prospective workers or incumbent workers (which may include youth age 18 through age 24) in industries and occupations identified by the Governor under subparagraph
(B)that will result in employment or retention with a participating employer. The Governor (in consultation with the State board)— shall identify the industries and occupations for which an eligible skills development program carried out by an eligible entity in the State may receive funds under this paragraph; and may select the industries and occupations identified under subclause
(I)that will receive priority for funds under this paragraph. In selecting industries or occupations to prioritize pursuant to clause (i)(II), the Governor may consider— industries that have, or are expected to have, a high rate of growth and an unmet demand for skilled workers; and occupations— with wages that are significantly higher than an occupation of similar level of skill or needed skill development; or that are aligned with career pathways into higher wage occupations. To be eligible to receive a payment under the critical industry skills fund established under this paragraph by a State, an eligible entity shall submit a proposal to the Governor in such form and at such time as the Governor may require (subject to the requirements of clause (ii)), which shall include— a description of the industries or occupations in which the participating employer is seeking to fill jobs, the specific skills or credentials necessary for an individual to obtain such a job, and the salary range of such a job; the expected number of individuals who will participate in the skills development program to be carried out by the eligible entity; a description of the eligible skills development program, including the provider, the length of the program, the skills to be gained, and any recognized postsecondary credentials that will be awarded; the total cost of providing the program; for purposes of receiving a payment pursuant to subparagraph (D)(i)(II)(bb), a commitment from the participating employer in the eligible entity to employ each participant of the program for not less than a 6-month period (or a longer period as determined by the State) after successful completion of the program; and an assurance that the entity will— establish the written agreements described in subparagraph (D)(ii)(I); maintain and submit the documentation described in subparagraph (D)(ii)(II); and maintain and submit the necessary documentation for the State to verify participant outcomes and report such outcomes as described in subparagraph (F). The Governor shall ensure that the form and manner in which a proposal required to be submitted under clause
(i)is designed to minimize paperwork and administrative burden for entities. With respect to an eligible entity that has had a proposal approved by the Governor under this subparagraph and that submits a subsequent proposal under this subparagraph, the eligible entity may only receive approval from the Governor for the subsequent proposal if— with respect to the most recent proposal approved under this subparagraph— the skills development program has ended; for any participants employed by the participating employer in accordance with subparagraph (C)(i)(V), the minimum periods of such employment described in such subparagraph have ended; all the payments under subparagraph
(D)owed to the eligible entity have been made; and not fewer than 70 percent of the participants who enrolled in the skills development program— completed such program; and after such completion, were employed by the participating employer for the minimum period described in subparagraph (C)(i)(V); and the eligible entity meets any other requirements that the Governor may establish with respect to eligible entities submitting subsequent proposals. With respect to each eligible entity whose proposal under subparagraph
(C)has been approved by the Governor, the Governor shall make payments (in an amount determined by the Governor and subject to the requirements of subclause
(II)of this clause, subparagraphs
(E)and (G), and any other limitations determined necessary by the State) from the critical industry skills fund established under this paragraph to such eligible entity for each participant of the eligible skills development program described in such proposal and with respect to whom the eligible entity meets the requirements of clause (ii). In making payments to an eligible entity under subclause
(I)with respect to a participant— 50 percent of the total payment shall be made after the participant completes the eligible skills development program offered by the eligible entity; and the remaining 50 percent of such total payment shall be made after the participant has been employed by the participating employer for the minimum period described in subparagraph (C)(i)(V). To be eligible to receive the payments described in clause
(i)with respect to a participant, an eligible entity described in such clause shall— establish a written agreement with the participant that includes the information described in subclauses
(I)and
(III)of subparagraph (C)(i); and submit documentation as the Governor determines necessary to verify that such participant has completed the skills development program offered by the eligible entity and has been employed by the participating employer for the minimum period described in subparagraph (C)(i)(V). An eligible entity may not receive funds under subparagraph
(D)with respect to a participant of the eligible skills development program offered by the eligible entity in excess of the following costs of such program: In the case of a participating employer of such eligible entity with 25 or fewer employees, 90 percent of the costs. In the case of a participating employer of such eligible entity with more than 25 employees, but fewer than 100 employees, 75 percent of the costs. In the case of a participating employer of such eligible entity with 100 or more employees, 50 percent of the costs. Any costs of the skills development program offered to a participant by such eligible entity that are not covered by the funds received under subparagraph
(D)shall be the non-Federal share provided by the eligible entity (in cash or in-kind). If the eligible skills development program is being provided on-the-job, the non-Federal share provided by an eligible entity may include the amount of the wages paid by the participating employer of the eligible entity to a participant while such participant is receiving the training. The State shall use the participant information provided by eligible entities to submit to the Secretary a report, on an annual basis, with respect to the participants of the eligible skills development programs for which the eligible entities received funds under this paragraph for the most recent program year, which shall— be made digitally available by the Secretary using linked, open, and interoperable data, which shall include; and include— the number of individuals who participated in programs, unless such information would reveal personally identifiable information about an individual); and performance outcomes on the measures listed in clause (ii). The measures listed below are as follows: The percentage of participants who completed the skills development program. The percentage of participants who were employed by the participating employer for a 6-month period after program completion. The percentage of participants who were employed by the participating employer as described in subclause (II), and who remained employed by the participating employer 1 year after program completion. The median earnings of program participants who are in unsubsidized employment during the second quarter after program completion. The median earnings increase of program participants, measured by comparing the earning of a participant in the second quarter prior to entry into the program to the earnings of such participant in the second quarter following completion of the program. In this paragraph: The term eligible entity means an employer, a group of employers, an industry or sector partnership, or another entity serving as an intermediary (such as a local board) that is in a partnership with at least one employer in an industry or occupation identified by the Governor under subparagraph (B)(i) (referred to in this paragraph as the participating employer ). The term eligible skills development program , with respect to which a State may set a maximum and minimum length (in weeks)— includes work-based education or related occupational skills instruction that— develops the specific technical skills necessary for successful performance of the occupations in which participants are to be employed upon completion; and may be provided by the eligible entity or by any training provider selected by the eligible entity and that is not required to be on a list of eligible providers of training services described in section 122(d); and may not include employee onboarding, orientation, or professional development generally provided to employees. . Section 134(a) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(a) ), as amended, is further amended by adding at the end the following: Whenever a State or outlying area implements any rule or policy relating to the administration or operation of activities authorized under this title that has the effect of imposing a requirement that is not imposed under Federal law, or is not a requirement, process, or criteria that the Governor or State is directed to establish under Federal law, the State or outlying area shall identify to local areas and eligible providers the requirement as being imposed by the State or outlying area. . Section 134(c)(1) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(1) ) is amended— in subparagraph (A)(iv), by striking to and inserting to provide business services described in paragraph
(4)and ; by redesignating subparagraph
(B)as subparagraph (C); and by inserting after subparagraph (A), as so amended, the following: Not less than 50 percent of the funds described in subparagraph
(A)shall be used by the local area— for the payment of training services— provided to adults under paragraph (3)(F)(iii); and provided to adults and dislocated workers under paragraph (3)(G)(ii); and for the payment of training services under paragraph (2)(A) of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 ( 29 U.S.C. 3224a(c) ) after funds allocated to such local area under paragraph
(1)of such section 414(c) have been exhausted. ; and in subparagraph (C), as so redesignated, by striking and
(ii)and inserting , (ii), and
(iv). Section 134(c)(2) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c)(2) ) is amended— by redesignating subparagraphs
(A)through
(C)as subparagraphs
(B)through (D), respectively; by inserting before subparagraph (B), as so redesignated, the following: The one-stop delivery system— shall coordinate with the Employment Service office colocated with the one-stop delivery system for such Employment Service office to provide, using the funds allotted to the State under section 6 of the Wagner-Peyser Act ( 29 U.S.C. 49e ), basic career services, which shall— include, at a minimum, the services listed in clause (ii); and be available to individuals who are adults or dislocated workers in an integrated manner to streamline access to assistance for such individuals, to avoid duplication of services, and to enhance coordination of services; and may use funds allocated under paragraph (1)(A), as necessary, to supplement the services that are provided pursuant to subclause
(I)to individuals who are adults or dislocated workers. The basic career services provided pursuant to clause
(i)shall include— provision of workforce and labor market employment statistics information, including the provision of accurate (and, to the extent practicable, real-time) information relating to local, regional, and national labor market areas, including— job vacancy listings in such labor market areas; information on job skills necessary to obtain the jobs described in item (aa); and information relating to local occupations in demand (which may include entrepreneurship opportunities), and the earnings, skill requirements, and opportunities for advancement for such occupations; labor exchange services, including job search and placement assistance and, in appropriate cases, career counseling, including— provision of information on in-demand industry sectors and occupations; provision of information on nontraditional employment; and provision of information on entrepreneurship, as appropriate; provision of information, in formats that are usable by and understandable to one-stop center customers, relating to the availability of supportive services or assistance, including child care, child support, medical or child health assistance under title XIX or XXI of the Social Security Act ( 42 U.S.C. 1396 et seq. and 1397aa et seq.), benefits under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ), assistance through the earned income tax credit under section 32 of the Internal Revenue Code of 1986, and assistance under a State program for temporary assistance for needy families funded under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ) and other supportive services and transportation provided through funds made available under such part, available in the local area; and referral to the services or assistance described in item (aa), as appropriate; provision of information and assistance regarding filing claims for unemployment compensation; and assistance in establishing eligibility for programs of financial aid assistance for training and education programs that are not funded under this Act. ; in subparagraph (B), as so redesignated— in the heading, by striking the heading and inserting ; Individualized career by inserting individualized before career services ; by inserting shall, to the extent practicable, be evidence-based, before and shall ; in clause (iii), by inserting , and a determination (considering factors including prior work experience, military service, education, and in-demand industry sectors and occupations in the local area) of whether such an individual would benefit from a competency-based assessment developed or identified by the State pursuant to subsection (a)(2)(B)(vii) to accelerate the time to obtaining employment that leads to economic self-sufficiency or career advancement before the semi-colon at the end; by striking clauses (iv), (vi), (ix), (x), and (xi); by redesignating clauses (v), (vii), (viii), (xii), and
(xiii)as clauses (iv), (v), (vi), (vii), and (viii), respectively; in clause (v), as so redesignated, by inserting and credential after by program ; and in clause (vii)(I)(aa), as so redesignated, by inserting , including a competency-based assessment developed or identified by the State pursuant to subsection (a)(2)(B)(vii) after tools ; by amending subparagraph (C), as so redesignated, to read as follows: A one-stop operator or one-stop partner shall not be required to conduct a new interview, evaluation, or assessment of a participant under subparagraph (B)(vii) if the one-stop operator or one-stop partner determines that— it is appropriate to use a recent interview, evaluation, or assessment of the participant conducted pursuant to another education or training program; and using such recent interview, evaluation, or assessment will accelerate an eligibility determination. ; and in subparagraph (D), as so redesignated— by inserting individualized before career ; and in clause (ii), by inserting , libraries, and community-based organizations after nonprofit service providers . 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), in the matter preceding subclause (I), by striking clause
(ii)and inserting clause
(ii)or
(iii)in clause (i)(II)— by striking or in and inserting in and by inserting , or that may be performed remotely after relocate ; by redesignating clause
(iii)as clause (iv); 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 an individual under clause (i)(I) if such individual— is referred by an employer to receive on-the-job training or employer-directed skills development in connection with that employer; and has been certified by the employer as being in need of training services to obtain unsubsidized employment with such employer and having the skills and qualifications to successfully participate in the selected program of training services. A one-stop operator or one-stop partner shall follow the priority described in subparagraph
(E)to determine whether an individual that meets the requirements of subclause
(I)of this clause is eligible to receive training services. ; and by adding at the end the following: In the case of an individual who is determined to not have the skills and qualifications to successfully participate in the selected program of training services under clause (i)(I)(cc), the one-stop operator or one-stop partner shall refer such individual to adult education and literacy activities under title II, including for co-enrollment in such activities, as appropriate. ; in subparagraph (B)— in clause (i)— in subclause (I), by striking other grant assistance for such services, including and inserting assistance for such services under ; and by striking under other grant assistance programs, including and inserting under ; and by adding at the end the following: An individual may participate in a program of training services during the period which such individual’s eligibility for training services under clause
(i)is being determined, except that the provider of such a program shall only receive reimbursement under this Act for the individual’s participation during such period if such individual is determined to be eligible under clause (i). ; in subparagraph (D)(xi), by striking customized training and inserting employer-directed skills development ; in subparagraph (E)— by striking are basic skills deficient and inserting have foundational skill needs ; and by striking paragraph (2)(A)(xii) and inserting paragraph (2)(B)(vii) ; in subparagraph (G)(ii)— in subclause (II), by striking customized training and inserting employer-directed skills development ; and in subclause (IV), by striking is a and inserting is an evidence-based ; in subparagraph (H)— in clause (i), by striking reimbursement described in section 3(44) and inserting reimbursement described in the definition of the term “on-the-job training” in section 3 ; and in clause (ii)— in subclause (I), by inserting , such as the extent to which participants are individuals with barriers to employment after participants ; and in subclause (III), by inserting , including whether the skills a participant will obtain are transferable to other employers, occupations, or industries in the local area or the State after opportunities ; and by adding at the end the following: An employer may receive a contract from a local board to provide employer-directed skills development to a participant or group of participants if the employer submits to the local board an agreement that establishes— the provider of the skills development program, which may be the employer; the length of the skills development program; the recognized postsecondary credentials that will be awarded to, or the occupational skills that will be gained by, program participants; the cost of the skills development program; the amount of such cost that will be paid by the employer, which shall not be less than the amount specified in section 3(14)(C); and a commitment by the employer to employ the participating individual or individuals upon successful completion of the program. . Section 134(c) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(c) ) is further amended— in paragraph (1)(A)(iv), by inserting provide business services described in paragraph
(4)and before establish ; and by adding at the end the following: Funds described in paragraph
(1)shall be used to provide appropriate recruitment and other business services and strategies on behalf of employers, including small employers, that meet the workforce investment needs of area employers, as determined by the local board and consistent with the local plan under section 108, which services— may be provided through effective business intermediaries working in conjunction with the local board, and may also be provided on a fee-for-service basis or through the leveraging of economic development, philanthropic, and other public and private resources in a manner determined appropriate by the local board; and may include one or more of the following: Developing and implementing industry sector strategies (including strategies involving industry partnerships, regional skills alliances, industry skill panels, and sectoral skills partnerships). Developing and delivering innovative workforce investment services and strategies for area employers, which may include career pathways, skills upgrading, skill standard development and certification for recognized postsecondary credential or other employer use, apprenticeship, and other effective initiatives for meeting the workforce investment needs of area employers and workers. Assistance to area employers in managing reductions in force in coordination with rapid response activities provided under subsection (a)(2)(A) and developing strategies for the aversion of layoffs, which strategies may include early identification of firms at risk of layoffs, use of feasibility studies to assess the needs of and options for at-risk firms, and the delivery of employment and training activities to address risk factors. The marketing of business services offered under this title to appropriate area employers, including small and mid-sized employers. Technical assistance or other support to employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments, including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(vii), and support in the creation of skills-based job descriptions. Other services described in this subsection, including providing information and referral to microenterprise services, as appropriate, and specialized business services not traditionally offered through the one-stop delivery system. . Section 134(d)(1)(A) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(d)(1)(A) ) is amended— by amending clause
(iii)to read as follows: implementation of a pay-for-performance contract strategy for training services, for which the local board may reserve and use not more than 40 percent of the total funds allocated to the local area under paragraph
(2)or
(3)of section 133(b), except that after 2 fiscal years of a local board implementing such pay-for-performance contract strategy, the local board may request approval from the Governor to reserve and use not more than 60 percent of the total funds allocated to the local area under paragraph
(2)or
(3)of section 133(b) for such strategy for the following fiscal year if the local board can demonstrate to the Governor the performance improvements achieved through the use of such strategy; ; in clause (vii)— in subclause (II), by striking and at the end; in subclause (III), by inserting and at the end; and by adding at the end the following: to strengthen, through professional development activities, the knowledge and capacity of staff to use the latest digital technologies, tools, and strategies to deliver high quality services and outcomes for jobseekers, workers, and employers; ; in clause (ix)(II)— in item (cc), by striking and at the end; in item (dd), by inserting and at the end; and by adding at the end the following: technical assistance or other support to employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments, including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(vii), and support in the creation of skills-based job descriptions; ; in clause (xi), by striking and at the end; in clause (xii), by striking the period at the end and inserting a semicolon; and by adding at the end the following: the use of competency-based assessments for individuals upon initial assessment of skills (pursuant to subsection (c)(2)(A)(iii)) or completion of training services or other learning experiences; and the development of partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in a region, as determined based on the most recent analysis conducted by the local board under section 107(d)(2). . Section 134(d)(4)(A) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(d)(4)(A) ) is amended— in clause (i), by striking 20 and inserting 30 ’ by redesignating clauses
(ii)and
(iii)as clauses
(iii)and (iv), respectively; and by inserting after clause
(i)the following: Notwithstanding clause (i)— with respect to a local area that had a rate of unemployment of not more than 3 percent for not less than 6 months during the preceding program year, clause
(i)shall be applied by substituting 40 percent for 30 percent ; or with respect to a local area that meets the requirement in subclause
(I)and is located in a State that had a labor force participation rate of not less than 68 percent for not less than 6 months during the preceding program year, clause
(i)shall be applied by substituting 45 percent for 30 percent . . Section 134(d)(4) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174(d)(4) ) is further amended by adding at the end the following: To establish incumbent worker upskilling accounts through which an eligible provider of training services under section 122 may be paid for the program of training services provided to an incumbent worker, a local board— may use up to 5 percent of the funds reserved by the local area under subparagraph (A)(i) or, if the local area reserved funds under subparagraph (A)(ii), up to 10 percent of such reserved funds; and may use funds reserved under section 134(a)(2)(A) for statewide rapid response activities and provided by the State to local area to establish such accounts. Subject to subclause (II), a local board that seeks to establish incumbent worker upskilling accounts under clause
(i)shall establish criteria for determining the eligibility of an incumbent worker to receive such an account, which shall take into account factors of— the wages of the incumbent worker as of the date of determining such worker’s eligibility under this clause; the career advancement opportunities for the incumbent worker in the occupation of such worker as of such date; and the ability of the incumbent worker to, upon completion of the program of training services selected by such worker, secure employment in an in-demand industry or occupation in the local area that will lead to economic self-sufficiency and wages higher than the current wages of the incumbent worker. An incumbent worker described in item
(bb)shall be ineligible to receive an incumbent worker upskilling account under this subparagraph. Item
(aa)shall apply to an incumbent worker— whose total annual wages for the most recent year are greater than the median household income of the State; or who has earned a baccalaureate or professional degree. With respect to an incumbent worker determined to be eligible to receive an incumbent worker upskilling account who is not a low-income individual— such incumbent worker shall pay not less than 25 percent of the cost of the program of training services selected by such worker; and funds provided through the incumbent worker upskilling account established for such worker shall cover the remaining 75 percent of the cost of the program. .
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Sec. 143
Use of funds for employment and training activities
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