THE WHITE HOUSE
Office of the Press Secretary
Reemployment Act of 1994
The President yesterday transmitted to the Congress the "Reemployment Act of 1994," which will:
This legislative package will build the comprehensive, high-quality reemployment system that American workers need. It is based on what works for getting workers into new and better jobs. Programs that work are customer-driven, offering customized service, quality information, and meaningful choices. They feature job search assistance to help shorten jobless spells, skill training connected to job opportunities, and support services to make long-term training practical for those who need it. They consolidate and streamline the current maze of programs.
The President challenges the Congress to pass the legislation this calendar year.
This Act embodies six fundamental principles:
Reemployment Act of 1994
Title I: Comprehensive Program for Worker Reemployment
Establishes a comprehensive program for reemployment of dislocated workers -- those who are permanently laid-off or are long-term unemployed, regardless of the cause of dislocation. It consolidates six current Labor Department dislocated worker programs: Economic Dislocation and Worker Adjustment Assistance Act; Defense Conversion Adjustment; Clean Air Employment Transition Assistance; Defense Diversification Program; Trade Adjustment Assistance; and NAFTA Transitional Adjustment Assistance.
more 3 o Performance Accountability and Outcomes -- Performance standards for service areas, career centers, and service providers will improve accountability in all States. o National Grant Program -- The Secretary of Labor will manage a national discretionary grant program to address large scale economic dislocations, provide disaster relief employment assistance, conduct evaluations and research, carry out demonstrations, and provide training and technical assistance to organizations involved in the management and delivery of services. o Funding Flow -- The Secretary uses a statutory formula to allocate 75 percent of the appropriated funds to States, and States use a similar formula to allocate at least 70 percent to substate areas.
Title II: Retraining Income Support
Part A establishes a program of retraining income support for permanently laid-off workers in long-term training. Beginning July 1, 1995, eligible workers who have exhausted UI benefits, who have a minimum level of tenure with their previous employer, and who are enrolled in long-term retraining will be eligible to receive extended income support.
Part B establishes a Retraining Income Support Account in the Unemployment Trust Fund and sets dollar caps for funding for each fiscal year from FY 1996 through FY 2000. After FY 2000, funding is capped at 20 percent of Federal Unemployment Tax receipts.
Part C finances Retraining Income Support using proceeds of the permanent extension of the current 0.2 percent Federal surtax collected under the Federal Unemployment Tax Act. It also provides for voluntary withholding on UI.
Part D phases out the TAA and NAFTA-TAA programs. Any worker receiving assistance before July 1, 1995, will continue to receive the remaining services and benefits to which they are entitled. From July 1, 1995, through June 30, 1999, workers and their representatives will be able to apply for trade-impacted certification that will make them eligible for services under title I of this Act and income support under title II.
Part E amends the Federal Unemployment Tax Act to give more flexibility to the UI system by permitting States to amend their laws to: pay unemployment compensation under a short-time compensation program to an individual who is working reduced hours for an employer in lieu of lay-off; and pay reemployment bonuses to certain individuals as an incentive to rapid reemployment. This part also permanently extends the selfemployment assistance program.
Title III: One-Stop Career Center System
Establishes a national program of grants and waivers to assist States in developing and implementing Statewide networks of One-Stop Career Centers. These networks would provide a common point of access to employment, education and training information and services for anyone who needs help getting a first job, a new job, or a better one, and to employers.
(OVER) 4 o Workforce Investment Boards -- Local Workforce Investment Boards, selected by local elected officials, will oversee the One-Stop Centers and serve as the "board of directors" for all local workforce programs. (Private Industry Councils under JTPA may become Boards if they meet established composition requirements.) o One-Stop Career Centers -- Centers may be run by a consortium of organizations, including the ES, the State UI agency, and agencies administering JTPA Title II, and the Title I dislocated worker program under this Act. Alternatively, Governors and local elected officials can opt for a competitive, multiple- operator approach. Under this option, the ES, and other organizations, including dislocated worker career center operators, JTPA programs, community colleges, and private for-profits and non-profits can be chartered to run One-Stop Centers. Under either option, One-Stop Centers will be required to meet customer-oriented performance measures and will be evaluated against those measures each year. o Common Services -- Centers will provide basic services to anyone who needs help getting a first, new, or better job, and intensive services to dislocated workers. Centers may also provide intensive services to other individuals. They will coordinate the delivery of a wide range of job training and employ- ment programs. Specialized employer services such as customized screening and referral of job seekers also may be provided. o Participating Federal Employment and Training Programs -- Programs that will make basic services available through One-Stop Centers are: Title I of the Reemployment Act, Wagner-Peyser, Title II of JTPA, Chapter 41 of title 38 (veterans' employment and training programs), programs authorized under Federal and State UI laws, and the Senior Community Service Employment program under Title V of the Older Americans Act. Other human resource programs, such as JOBS, Job Corps, and adult and vocational education, also may provide services through Centers. o Operating Agreements -- These agreements among the local Workforce Investment Board, the Governor, local elected official(s), participating programs, and Center operators will govern the administration of local One-Stop Career Center systems. o Grants -- States may apply for competitive planning grants to help them design and develop a comprehensive network, or they can apply for implementation grants with the agreement of local elected officials. o Waivers -- States also may request waivers of statutory and regulatory requirements for specific Department of Labor-funded programs. o Quality Assurance -- State-level "customer service compacts" and performance standards for service areas, career centers, and service providers will improve accountability in all States. more 5 o State Human Resource Investment Councils -- Single Councils will be established to advise Governors on ways to consolidate or coordinate programs and resources and on all aspects of the development and implementation of the One-Stop system.
Title IV: National Labor Market Information System
Establishes a National Labor Market Information (LMI) System to provide universal access to timely, accurate, up-to-date, easily accessible, and comprehensive information about where jobs are, necessary skills and experience, location and quality of training programs, and job search assistance. The LMI system also will provide information on available job candidates and on job, occupational, and skill demand trends. The Secretary will develop a strategy to establish the national LMI system which will be developed in cooperation with other public and private partners.
Title V: JTPA Reinvention Labs
Amends title II of the Job Training Partnership Act to establish a new part D, "Reinvention Labs", permitting the Secretary to waive Federal statutory or regulatory requirements relating to programs for economically disadvantaged youth and adults to promote implementation of innovative program designs.
The Administration's FY 1995 budget includes $1.465 billion for reemployment services for dislocated workers. When fully implemented in FY 2000, the system will serve 1.3 million dislocated workers. This represents a total investment of $13 billion over the five-year period -- FY 1995-FY 1999: $9.9 billion in discretionary spending, $2.0 billion in capped mandatory funds, and $1.25 billion on One-Stop Career Centers. The mandatory spending under the bill is fully offset over the five-year period.
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