119-hr2651

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2651 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2651

 To amend the Workforce Innovation and Opportunity Act to establish a 
 State innovation demonstration authority.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 3, 2025

 Mr. Owens introduced the following bill; which was referred to the 
 Committee on Education and Workforce

_______________________________________________________________________

 A BILL

 To amend the Workforce Innovation and Opportunity Act to establish a 
 State innovation demonstration authority.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``One Door to Work Act''.

SEC. 2. STATE INNOVATION DEMONSTRATION AUTHORITY.

 

Section 190 of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3250) is amended to read as follows:

``

SEC. 190. STATE INNOVATION DEMONSTRATION AUTHORITY.

 ``

    (a) 

=== Purpose ===
-The purpose of this section is to--
 ``

    (1) authorize States to apply under this section on 
 behalf of the entire State, or on behalf of a local area or a 
 consortium of local areas in the State, to receive the 
 allotments or allocations of the State or the local areas, 
 respectively, for youth workforce investment activities and 
 adult and dislocated worker employment and training activities 
 under this Act, as a consolidated grant for 5 years for the 
 purpose of carrying out a demonstration project to pursue 
 innovative reforms to achieve better outcomes for jobseekers, 
 employers, and taxpayers; and
 ``

    (2) require that rigorous evaluations be conducted to 
 demonstrate if better outcomes and associated innovative 
 reforms were achieved as a result of such demonstration 
 projects.
 ``

    (b) General Authority.--
 ``

    (1) Waivers and demonstration grant amounts.--
 Notwithstanding any other provision of law, during the 
 demonstration period applicable to a demonstration project 
 approved for a State pursuant to subsection
            (d) (3) , the 
 Secretary shall comply with each of the following:
 ``
        (A) Waivers.--Subject to paragraph

    (2) , waive for 
 the State as a whole, or for the local area or the 
 consortium of local areas in such State selected by the 
 State to carry out such demonstration project, all the 
 statutory and regulatory requirements of subtitle A and 
 subtitle B.
 ``
        (B) Demonstration grant amounts.--For each fiscal 
 year applicable to such demonstration period:
 ``
            (i) State as a whole.--In a case of a 
 State approved to carry out a demonstration 
 project under this section on behalf of the 
 State as a whole, distribute as a consolidated 
 sum to the State, for purposes of carrying out 
 the project, the State's total allotment for 
 such fiscal year under--
 ``
            (I) subsections

    (b)

    (1)
            (C) and 
 subsection
            (c) of 

section 127;
 ``
            (II) paragraphs

    (1)
        (B) and

    (2)
        (B) of 

section 132

    (b) ; and
 ``
            (III) section 132
            (c) .
 ``
            (ii) Local area.--In a case of a local 
 area selected by a State to carry out a 
 demonstration project under this section, 
 require the State to--
 ``
            (I) distribute as a consolidated 
 sum to the local board for such local 
 area, for purposes of carrying out the 
 project, the local area's allocation 
 for such fiscal year under--
 ``

    (aa) subsections

    (b) and
            (c) of 

section 128; and
 ``

    (bb) subsections

    (b) and
            (c) of 

section 133; or
 ``
            (II) if the local board of the 
 local area enters into a written 
 agreement with the State for the State 
 to serve as the fiscal agent for the 
 local board during the demonstration 
 project, use the funds described in 
 subclause
            (I) for purposes of carrying 
 out the project on behalf of the local 
 board.
 ``
            (iii) Consortium of local areas.--In a 
 case of a consortium of local areas selected by 
 a State to carry out a demonstration project 
 under this section, require the State to--
 ``
            (I) distribute as a consolidated 
 sum to the consortium, for purposes of 
 carrying out the project, the total 
 amount of the allocations for the local 
 areas in such consortium for such 
 fiscal year under--
 ``

    (aa) subsections

    (b) and
            (c) of 

section 128; and
 ``

    (bb) subsections

    (b) and
            (c) of 

section 133; or
 ``
            (II) if the consortium enters 
 into a written agreement with the State 
 for the State to serve as the fiscal 
 agent for the consortium during the 
 demonstration project, use the funds 
 described in subclause
            (I) for purposes 
 of carrying out the project on behalf 
 of such consortium.
 ``

    (2) Exceptions.--
 ``
        (A) In general.--A State, local area, or 
 consortium of local areas carrying out a demonstration 
 project under this section shall comply with statutory 
 or regulatory requirements of this Act relating to--
 ``
            (i) performance accountability and 
 reporting, except as otherwise provided in this 
 section;
 ``
            (ii) the membership of local or State 
 boards in instances where a State carrying out 
 a demonstration project will maintain the use 
 of such boards during the demonstration period; 
 and
 ``
            (iii) the priority of service described 
 in 

section 134
            (c) (3)
        (E) .
 ``
        (B) Applicability of defined terms.--In carrying 
 out a demonstration project under this section, a 
 State, local area, or consortium of local areas may 
 only use a term defined in 

section 3 to describe an 
 activity carried out under such demonstration project 
 if the State, local area, or consortium of local areas 
 gives such term the same meaning as such term is given 
 under such section.
 ``

    (3) Authority for third-party evaluation.--
 ``
        (A) In general.--Not later than 180 days after 
 the first demonstration project is approved under this 
 section, the Secretary shall contract with a third-
 party evaluator to conduct a rigorous evaluation of 
 each demonstration project approved under this section. 
 The evaluation shall--
 ``
            (i) cover the 5-year period of each 
 demonstration project;
 ``
            (ii) compare the employment and earnings 
 outcomes of participants in activities carried 
 out under the demonstration project to--
 ``
            (I) the outcomes of similarly 
 situated individuals that do not 
 participate in such activities who are 
 located in such State, local area, or a 
 local area in such consortium; and
 ``
            (II) the outcomes of participants 
 in activities under this chapter in the 
 State, local area, or a local area in 
 the consortium that was awarded a 
 waiver prior to the award of such 
 waiver;
 ``
            (iii) conduct a qualitative analysis that 
 identifies any promising practices or 
 innovative strategies that--
 ``
            (I) would not have been conducted 
 without the waiving of statutory or 
 regulatory provisions through the 
 demonstration project; and
 ``
            (II) lead to positive employment 
 and earnings outcomes for the 
 participants; and
 ``
            (iv) compare the outcomes for subclauses
            (I) and
            (II) of clause
            (ii) with respect to the 
 subpopulations described in 

section 116
            (d) (2)
        (B) .
 ``
        (B) Report.--Not later than 2 years after the 
 fifth year of each demonstration project approved under 
 this section, the Secretary shall submit to the 
 Committee on Education and the Workforce of the House 
 of Representatives and the Committee on Health, 
 Education, Labor, and Pensions, the results of the 
 evaluation of such conducted under this paragraph.
 ``
            (c) Demonstration Period; Limitations.--
 ``

    (1) In general.--A demonstration project approved under 
 this section for a State, local area, or consortium--
 ``
        (A) shall be carried out for a 5-year 
 demonstration period; and
 ``
        (B) may be renewed for an additional 5-year 
 demonstration period, if the State, local area, or 
 consortium--
 ``
            (i) for each of the final 3 years of the 
 preceding 5-year demonstration period, meets 
 its expected levels of performance established 
 under subsection

    (f)

    (1)
            (C) ; and
 ``
            (ii) on the final year of the preceding 
 5-year demonstration period, achieves a 
 performance improvement of not less than an 
 average of a 5-percent increase across all of 
 the indicators of performance described in 
 clauses
            (i) and
            (ii) of subsection

    (f)

    (1)
        (A) , 
 compared with--
 ``
            (I) the highest level of 
 performance for the corresponding 
 indicators of performance, as described 
 in subsection

    (f)

    (1)
        (B)
            (i) with respect 
 to such State, for the most recent 
 program year that ended prior to the 
 beginning of the first year of the 
 preceding 5-year demonstration period; 
 or
 ``
            (II) the alternate baseline level 
 of performance for the corresponding 
 indicators of performance that is 
 agreed upon between the State and the 
 Secretary under subsection

    (f)

    (1)
        (B)
            (ii) .
 ``

    (2) Limitations.--
 ``
        (A) Demonstration period limitations.--For each 
 5-year demonstration period (including renewals of such 
 period) the Secretary may not approve--
 ``
            (i) more than 8 demonstration projects 
 for States to carry out a demonstration project 
 described in subsection

    (b)

    (1)
        (B)
            (i) ; and
 ``
            (ii) more than 8 demonstration projects 
 for local areas (or consortia of local areas) 
 to carry out a demonstration project described 
 in clause
            (ii) or
            (iii) of subsection

    (b)

    (1)
        (B) .
 ``
        (B) State limitations.--No more than 1 
 demonstration project may be approved under this 
 section per State. For purposes of this subparagraph, a 
 demonstration project described in clause
            (ii) or
            (iii) of subsection

    (b)

    (1)
        (B) approved for a local area or a 
 consortium of local areas, respectively, in a State 
 shall be considered a demonstration project approved 
 under this section for the State.
 ``
            (d) Application.--
 ``

    (1) In general.--To be eligible to carry out a 
 demonstration project under this section, a State shall submit 
 to the Secretary an application at such time and in such manner 
 as the Secretary may reasonably require, and containing the 
 information described in paragraph

    (2) .
 ``

    (2) Content.--Each application submitted by a State under 
 this subsection shall include the following:
 ``
        (A) A description of the demonstration project to 
 be carried out under this section, including--
 ``
            (i) whether the project will be carried 
 out--
 ``
            (I) by the State as a whole;
 ``
            (II) by a local area, and if so--
 ``

    (aa) an identification 
 of--

 ``

    (AA) such local 
 area;

 ``

    (BB) whether the 
 local board for such 
 local area is the 
 fiscal agent for the 
 project, or whether the 
 local board has entered 
 into a written 
 agreement with the 
 State for the State to 
 serve as the fiscal 
 agent during the 
 project; and

 ``

    (bb) written verification 
 from the local board for such 
 local area that such local 
 board agrees--

 ``

    (AA) to carry out 
 such project; and

 ``

    (BB) to the 
 fiscal agent identified 
 in item

    (aa) 

    (BB) ; and

 ``
            (III) by a consortium of local 
 areas in the State, and if so--
 ``

    (aa) an identification 
 of--

 ``

    (AA) each local 
 area that comprises the 
 consortium; and

 ``

    (BB) the local 
 area that will serve as 
 the fiscal agent for 
 the consortium during 
 the project, or whether 
 the consortium has 
 entered into a written 
 agreement with the 
 State for the State to 
 serve as the fiscal 
 agent; and

 ``

    (bb) written verification 
 from each local board of each 
 local area identified in item

    (aa) 

    (AA) that such local board 
 agrees--

 ``

    (AA) to carry out 
 such project as a 
 consortium; and

 ``

    (BB) to the 
 fiscal agent for the 
 consortium identified 
 in item

    (aa) 

    (BB) ;

 ``
            (ii) a description of the activities to 
 be carried out under the project; and
 ``
            (iii) the goals the State, local area, or 
 consortium intends to achieve through such 
 activities, which shall be aligned with the 
 purpose described in subsection

    (a) .
 ``
        (B) A description of the performance outcomes the 
 State, the local area, or consortium expects to achieve 
 for such activities for each year of the demonstration 
 period as described in subsection

    (f)

    (1) .
 ``
            (C) A description of how the State, local area, 
 or consortium consulted with employers, the State 
 board, and the local boards in the State in determining 
 the activities to carry out under the demonstration 
 project.
 ``
            (D) A description of how the State will make such 
 activities available to jobseekers and employers in 
 each of the local areas in the State or, in a case of a 
 project that will be carried out by a local area or a 
 consortium, a description of how such services will be 
 made available to jobseekers and employers in such 
 local area or each of the local areas in the 
 consortium.
 ``
        (E) A description, if appropriate, of how the 
 State, local area, or consortium will integrate the 
 funds received, and the activities carried out, under 
 the demonstration project under this section with State 
 workforce development programs and other Federal, 
 State, or local workforce, education, or social service 
 programs (including the programs and activities listed 
 in 

section 103

    (a)

    (2) , the program of adult education 
 and literacy activities authorized under title II, and 
 the program authorized under title I of the 
 Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.)).
 ``
        (F) An assurance that the State, local area, or 
 consortium will meet the requirements of this section.
 ``

    (3) Secretarial approval.--
 ``
        (A) In general.--Not later than 60 days after the 
 date on which a State submits an application under this 
 subsection, the Secretary shall--
 ``
            (i) in a case in which the application 
 meets the requirements of this section and is 
 not subject to the limitations described in 
 subsection
            (c) (2) , approve such application and 
 the demonstration project described in such 
 application; or
 ``
            (ii) provide to the State a written 
 explanation of initial disapproval that meets 
 the requirements of subparagraph
            (C) .
 ``
        (B) Default approval.--With respect to an 
 application submitted by a State under this subsection 
 that is not subject to the limitations described in 
 subsection
            (c) , if the Secretary fails to approve such 
 application or provide an explanation of initial 
 disapproval for such application as required under 
 subparagraph
        (A) , the application and the demonstration 
 project described in such application shall be deemed 
 approved by the Secretary.
 ``
            (C) Initial disapproval.--An explanation of 
 initial disapproval provided by the Secretary to a 
 State under subparagraph
        (A)
            (ii) shall provide the 
 State--
 ``
            (i) a detailed explanation of why the 
 application does not meet the requirements of 
 this section; and
 ``
            (ii) if the State is not subject to the 
 limitations described in subsection
            (c) , an 
 opportunity to revise and resubmit the State's 
 application under this section.
 ``

    (e) State Demonstration Project Requirements.--A State, local 
area, or consortium that has been approved to carry out a demonstration 
project under this section shall meet each of the following 
requirements:
 ``

    (1) Use of funds.--Use the funds received pursuant to 
 subsection

    (b)

    (1)
        (B) solely to carry out the activities of the 
 demonstration project to achieve the goals described in 
 subsection
            (d) (2)
        (A) .
 ``

    (2) Administrative costs limitation.--Use not more than 
 10 percent of the funds received pursuant to subsection

    (b)

    (1)
        (B) for a fiscal year for the administrative costs of 
 carrying out the demonstration project.
 ``

    (3) Priority for services.--Give priority for services 
 under the project to veterans and their eligible spouses in 
 accordance with the requirements of 

section 4215 of title 38, 
 United States Code, recipients of public assistance, low-income 
 individuals, and individuals who are basic skills deficient.
 ``

    (4) Number of participants.--Serve a number of 
 participants under the activities of the demonstration project 
 for each year of the demonstration period that--
 ``
        (A) is greater than the number of participants 
 served by such State, local area, or consortium under 
 the programs described in subparagraph
        (A) of the 
 definition of the term `core program provision' under 
 

section 3 for the most recent program year that ended 
 prior to the beginning of the first year of the 
 demonstration period; or
 ``
        (B) is not less than the number of participants 
 to be served under the activities of the demonstration 
 project that is agreed upon between the State, local 
 area, or consortium, and the Secretary--
 ``
            (i) prior to the Secretary's approval of 
 the application submitted under subsection
            (d) ; 
 and
 ``
            (ii) after the Secretary takes into 
 account--
 ``
            (I) the goals the State, local 
 area, or consortium intends to achieve 
 through the demonstration project; and
 ``
            (II) the participants the State, 
 local area, or consortium intends to 
 serve under such project; and
 ``
            (iii) prior to approval of the 
 application submitted under subsection
            (d) .
 ``

    (5) Reporting outcomes.--Submit, on an annual basis, to 
 the Secretary a report, with respect to such State, local area, 
 or consortium, on--
 ``
        (A) participant outcomes for each indicator of 
 performance described in subsection

    (f)

    (1)
        (A) for the 
 activities carried out under the project; and
 ``
        (B) the applicable requirements of 

section 116
            (d) (2) , including subparagraphs
        (B) through
        (G) and 
 subparagraph
        (J) , as such subparagraphs are applicable 
 to activities under the demonstration project.
 ``

    (6) Compliance with certain existing requirements.--
 Comply with the statutory or regulatory requirements listed in 
 subsection

    (b)

    (2) .
 ``

    (f) Performance Accountability.--
 ``

    (1) Establishment of baseline level for performance.--
 ``
        (A) In general.--Each State shall describe in the 
 application submitted under subsection
            (d) , for each 
 year of the demonstration period--
 ``
            (i) with respect to participants who are 
 at least 25 years old, the expected levels of 
 performance for each of the indicators of 
 performance under 

section 116

    (b)

    (2)
        (A)
            (i) for 
 the activities carried out under the project 
 under this section, which shall meet the 
 requirements of subparagraph
        (B) ; and
 ``
            (ii) with respect to participants who are 
 at least 16 years old and no older than 24 
 years old, the expected levels of performance 
 for each of the indicators of performance under 
 

section 116

    (b)

    (2)
        (A)
            (ii) for the activities 
 carried out under the project under this 
 section, which shall meet the requirements of 
 subparagraph
        (B) .
 ``
        (B) 5th year.--Each of the expected levels of 
 performance established pursuant to subparagraph
        (A) for each of the indicators of performance for the 5th 
 year of the demonstration period shall be higher than--
 ``
            (i) the highest level of performance for 
 the corresponding indicator of performance for 
 the programs described in subparagraph
        (A) of 
 the definition of the term `core program 
 provisions' under 

section 3 for the most recent 
 program year for such State that ended prior to 
 the beginning of the first year of the 
 demonstration period; or
 ``
            (ii) an alternate baseline level of 
 performance that is agreed upon between the 
 State and the Secretary--
 ``
            (I) prior to the Secretary's 
 approval of the application submitted 
 under subsection
            (d) ; and
 ``
            (II) after the Secretary takes 
 into account--
 ``

    (aa) the goals the State 
 intends to achieve through the 
 demonstration project; and
 ``

    (bb) the participants the 
 State intends to serve under 
 such project.
 ``
            (C) Agreed level for performance on expected 
 levels of performance.--Prior to approving an 
 application for a demonstration project submitted by a 
 State, and using the expected levels of performance 
 described in such application, the Secretary shall 
 reach an agreement with such State on the expected 
 levels of performance for each of the indicators of 
 performance. In reaching an agreement on such expected 
 levels of performance, the Secretary and the State may 
 consider the factors described in 

section 116

    (b)

    (3)
        (A)
            (v) .
 ``

    (2) Sanctions.--
 ``
        (A) In general.--The sanctions described in 
 

section 116

    (f)

    (1)
        (B) shall apply to a State, local 
 area, or consortium beginning on the 3rd year of the 
 demonstration period for such State, local area, or 
 consortium, except that the levels of performance 
 established under subsection

    (f)

    (1)
            (C) of this section 
 shall be--
 ``
            (i) deemed to be the State negotiated 
 levels of performance for purposes of this 
 paragraph; and
 ``
            (ii) adjusted at the end of each program 
 year to reflect the actual characteristics of 
 participants served and the actual economic 
 conditions experienced using a statistical 
 adjustment model similar to the model described 
 in 

section 116

    (b)

    (3)
        (A)
            (viii) .
 ``
        (B) Ineligibility for renewal.--A State, local 
 area, or consortium that is subject to such sanctions 
 shall be ineligible to renew its demonstration period 
 under subsection
            (c) .
 ``

    (3) Impact of local or consortium demonstrations on 
 statewide accountability.--With respect to a State with an 
 approved demonstration project for a local area or consortium 
 of local areas in the State--
 ``
        (A) the performance of such local area or 
 consortium for the programs described in subparagraph
        (A) of the definition of the term `core program 
 provision' under 

section 3 shall not be included in the 
 levels of performance for such State for any of such 
 programs for purposes of 

section 116 for any program 
 year that is applicable to any year of the 
 demonstration period; and
 ``
        (B) with respect to any local areas of the State 
 that are not part of the demonstration project, the 
 State shall reach a new agreement with the Secretary, 
 for purposes of 

section 116

    (b)

    (3)
        (A) , on levels of 
 performance for such programs for such program 
 years.''.
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