119-s2438

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2438 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2438

 To assist employers providing employment under special certificates 
 issued under 

section 14
            (c) of the Fair Labor Standards Act of 1938 in 
 transforming their business and program models to models that support 
people with disabilities through competitive integrated employment, to 
phase out the use of such special certificates, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 24, 2025

 Mr. Van Hollen (for himself, Mr. Daines, Mrs. Gillibrand, and Mrs. 
 Blackburn) introduced the following bill; which was read twice and 
 referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

 A BILL

 To assist employers providing employment under special certificates 
 issued under 

section 14
            (c) of the Fair Labor Standards Act of 1938 in 
 transforming their business and program models to models that support 
people with disabilities through competitive integrated employment, to 
phase out the use of such special certificates, and for other purposes.

 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 ``Transformation to Competitive 
Integrated Employment Act''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Purposes.
 TITLE I--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT 
 PROGRAMS

Sec. 101. Program authorized.

Sec. 102. State grant program.

Sec. 103. Certificate holder grant program.
TITLE II--PHASE OUT OF SPECIAL CERTIFICATES UNDER 

SECTION 14
            (c) OF THE 
 FAIR LABOR STANDARDS ACT OF 1938

Sec. 201. Transition to fair wages for people with disabilities.

Sec. 202. Prohibition on new special certificates; sunset.
 TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION

Sec. 301. Technical Assistance and dissemination.
 TITLE IV--REPORTING AND EVALUATION

Sec. 401. Impact evaluation and reporting.

Sec. 402. Wage and hour reports.
 TITLE V--GENERAL PROVISIONS

Sec. 501. Definitions.

Sec. 502. Authorization of appropriations.

SEC. 3. PURPOSES.

 The purposes of this Act are to--

    (1) assist employers with special certificates issued under 
 

section 14
            (c) of the Fair Labor Standards Act of 1938 (29 
 U.S.C. 214
            (c) ) to transform their business and program 
 operations to models that support people with disabilities to 
 find and retain work in competitive integrated employment;

    (2) ensure people with disabilities, families of such 
 people, State and local governments, and other stakeholders are 
 involved in the transformations described in paragraph

    (1) ;

    (3) ensure people employed in programs using such special 
 certificates transition to competitive integrated employment 
 positions and, as needed, to integrated services that support 
 them in their homes and in community settings;

    (4) identify models and processes for shifting business and 
 program models from such special certificates to competitive 
 integrated employment models and integrated community 
 participation and wraparound services, and to share that 
 information with other such special certificate holders, State 
 and local entities, and other service providers for people with 
 disabilities; and

    (5) support States and local governments as they revise and 
 implement their Olmstead plans and local plans, respectively, 
 in order to improve competitive integrated employment outcomes 
 for people with disabilities through all State workforce 
 development systems.

 TITLE I--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT 
 PROGRAMS

SEC. 101. PROGRAM AUTHORIZED.

 From the amounts appropriated to carry out this title, the 
Secretary of Labor shall award grants under sections 102 and 103, on a 
competitive basis, to States and eligible entities to assist employers 
who were issued special certificates in transforming their business and 
program models from providing employment using such special 
certificates to business and program models that employ and support 
people with disabilities by--

    (1) providing competitive integrated employment, including 
 by compensating all employees of the employer at a rate that 
 is--
        (A) not less than the higher of the rate specified 
 in 

section 6

    (a)

    (1) of the Fair Labor Standards Act of 
 1938 (29 U.S.C. 206

    (a)

    (1) ) or the rate specified in the 
 applicable State or local minimum wage law; and
        (B) not less than the customary rate paid by the 
 employer for the same or similar work performed by 
 other employees who are not people with disabilities, 
 and who are similarly situated in similar occupations 
 by the same employer and who have similar training, 
 experience, and skills;

    (2) assisting people with disabilities who were employed by 
 the employer in finding and retaining work in competitive 
 integrated employment, which work may be with the employer 
 after such transformation or in another competitive integrated 
 employment setting;

    (3) providing integrated community participation and 
 wraparound services for people with disabilities; and

    (4) ensuring all such services and other non-employment 
 services offered by the employer comply with the requirements 
 for home and community-based services under the final rule of 
 the Department of Health and Human Services entitled ``Medicaid 
 Program; State Plan Home and Community-Based Services, 5-Year 
 Period for Waivers, Provider Payment Reassignment, and Home and 
 Community-Based Setting Requirements for Community First Choice 
 and Home and Community-Based Services

    (HCBS) Waivers'' (79 Fed. 
 Reg. 2948 (January 16, 2014)), or a successor rule.

SEC. 102. STATE GRANT PROGRAM.

    (a) Application.--

    (1) In general.--To be eligible to receive a grant under 
 this section, a State shall submit an application to the 
 Secretary at such time, in such manner, and including such 
 information as the Secretary may reasonably require.

    (2) Contents.--Each application submitted under paragraph

    (1) shall include--
        (A) a description of the status of the employers in 
 the State providing employment using special 
 certificates, including--
            (i) the number of employers in the State 
 using special certificates to employ and pay 
 people with disabilities;
            (ii) the number of employers described in 
 clause
            (i) that also employ people with 
 disabilities in competitive integrated 
 employment, which shall include employers 
 providing such employment in combination with 
 integrated services;
            (iii) the number of employees employed 
 under a special certificate, disaggregated by--
            (I) employer; and
            (II) demographic characteristics, 
 including gender, race, ethnicity, and 
 type of disability, unless indicating 
 such characteristics would disclose 
 personal identifying information;
            (iv) the average, median, minimum, and 
 maximum number of hours such employees work per 
 week, disaggregated by employer, and reported 
 for the State as a whole; and
            (v) the average, median, minimum, and 
 maximum hourly wage for such employees, 
 disaggregated by employer, and reported for the 
 State as a whole;
        (B) a description of the activities of the State 
 with respect to competitive integrated employment for 
 people with disabilities, including, as applicable--
            (i) a copy of the State plan for carrying 
 out the Employment First initiative;
            (ii) a copy of the Olmstead plan of the 
 State;
            (iii) a description of activities related 
 to the development and promotion of ABLE 
 accounts; and
            (iv) a description of the medical 
 assistance provided by the State through a 
 Medicaid buy-in eligibility pathway under 
 subclause
            (XV) or
            (XVI) of 

section 1902

    (a)

    (10)
        (A)
            (ii) of the Social Security Act 
 (42 U.S.C. 1396a

    (a)

    (10)
        (A)
            (ii) ), including any 
 premiums or other cost sharing imposed on 
 individuals who enroll in the State Medicaid 
 program through such a pathway;
            (C) a description of activities to be funded under 
 the grant, and the goals of such activities, 
 including--
            (i) the process to be used to identify each 
 employer in the State that will transform its 
 business and program models from employing 
 people with disabilities using special 
 certificates to employing people with 
 disabilities in competitive integrated 
 employment settings or settings involving a 
 combination of competitive integrated 
 employment and integrated services;
            (ii) the number of such employers in the 
 State that will carry out a transformation 
 described in clause
            (i) ;
            (iii) the service delivery infrastructure 
 that will be implemented in the State to 
 support people with disabilities who have been 
 employed under special certificates through 
 such a transformation, including providing 
 enhanced integrated services to support people 
 with the most significant disabilities;
            (iv) a description of the process to 
 recruit and engage Federal, State, and local 
 governments and nonprofit and private employers 
 to hire people with disabilities into 
 competitive integrated employment who have been 
 employed under special certificates;
            (v) the competitive integrated employment 
 and integrated services that will be 
 implemented in the State to support such 
 people;
            (vi) a timeline for assisting employers 
 that operate in the State in phasing out 
 employment using special certificates, which 
 shall not extend past the date on which the 
 legal effect of such certificates expires under 
 

section 14
            (c) (7) of the Fair Labor Standards 
 Act of 1938 (29 U.S.C. 214
            (c) (7) ), as added by 
 title II;
            (vii) a timeline for the expansion of 
 employers that will provide competitive 
 integrated employment, or a combination of 
 competitive integrated employment and 
 integrated services, to people with 
 disabilities who have been employed by such 
 employers under special certificates;
            (viii) a description of the expanded 
 competitive integrated employment and 
 integrated services to be provided to such 
 people as a result of transformations described 
 in clause
            (i) ; and
            (ix) a description of the process to be 
 used to engage stakeholders in such 
 transformations;
            (D) a description of how the activities under the 
 grant will coordinate and align Federal, State, and 
 local programs, agencies, and funding in the 
 transformations described in subparagraph
            (C) 
            (i) ;
        (E) a description of the State's evaluation plan to 
 determine the social and economic impact of the grant, 
 including the impact (as measured throughout the 
 transformation and the 2-year period after the State 
 has assisted employers in phasing out employment using 
 special certificates) on--
            (i) the employment status of people with 
 disabilities in the State, including the number 
 of hours worked, average wages, and job 
 satisfaction, of such people; and
            (ii) changes in provider capacity to 
 support competitive integrated employment and 
 integrated services;
        (F) assurances that--
            (i) the activities carried out under the 
 grant will result in each employer in the State 
 that provides employment using special 
 certificates on the date of enactment of this 
 Act transforming as described in subparagraph
            (C) 
            (i) ;
            (ii) people with the most significant 
 disabilities, including intellectual and 
 developmental disabilities, who will be 
 affected by such a transformation will be given 
 priority in receiving the necessary competitive 
 integrated employment supports and integrated 
 services to succeed during and after such a 
 transformation;
            (iii) each individual in the State who is 
 employed under a special certificate will, as a 
 result of such a transformation, be given an 
 opportunity to be employed in competitive 
 integrated employment;
            (iv) at a minimum, the State agencies 
 responsible for developmental disability 
 services, Medicaid, education, vocational 
 rehabilitation, mental health services, 
 transportation, and workforce development agree 
 to be partners in the goals of the grant;
            (v) until the date that is 2 years after 
 the legal effect of special certificates 
 expires under 

section 14
            (c) (7) of the Fair 
 Labor Standards Act of 1938 (29 U.S.C. 
 214
            (c) (7) ), as added by title II, the State 
 will comply with requirements of the Secretary 
 with respect to the collection of data, and 
 will require employers providing employment 
 under special certificates in the State to 
 comply with such requirements;
            (vi) the State will cooperate with the 
 evaluation under title IV by providing all data 
 required and allow the evaluation of activities 
 under the grant;
            (vii) the State will establish an advisory 
 council described in paragraph

    (3) to monitor 
 and guide the process of transforming business 
 and program models of employers in the State as 
 described in subparagraph
            (C) 
            (i) ;
            (viii) the State will cooperate with the 
 nonprofit entity carrying out technical 
 assistance and dissemination activities under 
 title III;
            (ix) all integrated services and non-
 employment services offered by employers in the 
 State will comply with--
            (I) the requirements for home and 
 community-based services under the 
 final rule of the Department of Health 
 and Human Services entitled ``Medicaid 
 Program; State Plan Home and Community-
 Based Services, 5-Year Period for 
 Waivers, Provider Payment Reassignment, 
 and Home and Community-Based Setting 
 Requirements for Community First Choice 
 and Home and Community-Based Services

    (HCBS) Waivers'' (79 Fed. Reg. 2948 
 (January 16, 2014)), or a successor 
 rule;
            (II) the holding of the Olmstead 
 decision; and
            (III) the Americans with 
 Disabilities Act of 1990 (42 U.S.C. 
 12101 et seq.); and
            (x) the State will disseminate information 
 to all people with disabilities employed under 
 special certificates regarding the availability 
 of--
            (I) ABLE accounts and other asset 
 developmental options for people with 
 disabilities;
            (II) the Ticket to Work and Self 
 Sufficiency Program established under 
 

section 1148 of the Social Security Act 
 (42 U.S.C. 1320b-19); and
            (III) other resources related to 
 benefits counseling for people with 
 disabilities who wish to work or are 
 working in competitive integrated 
 employment settings; and
        (G) such other information and assurances as the 
 Secretary may reasonably require.

    (3) Members of the advisory council.--A State receiving a 
 grant under this section shall, for the purpose described in 
 paragraph

    (2)
        (F)
            (vii) , establish an advisory council composed 
 of the following:
        (A) People with disabilities (who shall comprise 
 not less than 25 percent of the members), including 
 such people with intellectual or developmental 
 disabilities who are or were employed under a special 
 certificate.
        (B) A family member of a person with an 
 intellectual or developmental disability who is 
 employed under a special certificate.
            (C) A family member of a person with an 
 intellectual or developmental disability who is 
 employed in competitive integrated employment.
            (D) An employer providing competitive integrated 
 employment.
        (E) An employer providing employment under special 
 certificates.
        (F) A representative of a nonprofit agency or 
 organization specializing in competitive integrated 
 employment.
        (G) A representative of the State developmental 
 disability agency.
        (H) A representative of the State vocational 
 rehabilitation agency, as such term is used under the 
 Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
            (I) A representative of an agency that is in the 
 State and described in paragraph

    (6) or

    (7) of 

section 8501 of title 41, United States Code.
        (J) A representative of the State independent 
 living centers, as such term is used under the 
 Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
        (K) A representative of the State Council on 
 Developmental Disabilities, as defined in 

section 102 
 of the Developmental Disabilities Assistance and Bill 
 of Rights Act of 2000 (42 U.S.C. 15002).
            (L) A representative of one of the State University 
 Centers for Excellence in Developmental Disabilities 
 Education, Research, and Service, established under 
 subtitle D of title I of the Developmental Disabilities 
 Assistance and Bill of Rights Act of 2000 (42 U.S.C. 
 15061 et seq.).
            (M) A representative of the State protection and 
 advocacy system, as defined in 

section 102 of the 
 Developmental Disabilities Assistance and Bill of 
 Rights Act of 2000 (42 U.S.C. 15002).
        (N) A representative of the State Medicaid office.
        (O) Representatives of other State agencies and 
 disability organizations and other disability related 
 offices and groups with expertise in competitive 
 integrated employment.

    (b) Geographic Diversity.--To the extent practicable, the Secretary 
shall distribute grant funds under this section equitably among 
geographic areas of the United States, and take into account rural and 
urban diversity.
            (c) Duration of Awards.--A grant under this section shall be 
awarded for a period of 5 years.
            (d) Limit on Award Number.--A State may only be awarded 1 grant 
under this section.

    (e) Amount of Awards.--A grant awarded under this section may not 
be made in an amount that is less than $3,000,000, or more than 
$15,000,000, for the 5-year grant period.

    (f) Additional Funding for Supported Employment Services.--

    (1) In general.--Title VI of the Rehabilitation Act of 1973 
 is amended--
        (A) in 

section 603 (29 U.S.C. 795h)--
            (i) in subsection

    (a) , by adding at the end 
 the following:
 ``

    (3) References.--For purposes of this subsection, any 
 reference in this subsection to sums or amounts appropriated 
 shall not include the amounts appropriated under 

section 611

    (e) .'';
            (ii) in subsection
            (c) --
            (I) by inserting ``or a grant under 
 

section 611'' after ``allotment under 
 this title''; and
            (II) by inserting ``or such grant'' 
 after ``such allotment''; and
            (iii) in subsection
            (d) --
            (I) by inserting ``or a grant under 
 

section 611'' after ``allotment under 
 this title''; and
            (II) by inserting ``or such grant'' 
 after ``such allotment'';
        (B) in 

section 604

    (b)

    (2) (29 U.S.C. 795i

    (b)

    (2) ), by 
 inserting ``(or made available through a grant awarded 
 under 

section 611)'' after ``allotted under this 
 title'';
            (C) in 

section 610 (29 U.S.C. 795o)--
            (i) by inserting ``, except for 

section 611,'' after ``this title'';
            (ii) by striking ``and''; and
            (iii) by inserting ``, and such sums as may 
 be necessary for each of fiscal years 2026 
 through 2035'' before the period at the end; 
 and
            (D) by adding at the end the following:

``

SEC. 611. ADDITIONAL FUNDING FOR CERTAIN STATES WITH COMPETITIVE 
 INTEGRATED EMPLOYMENT.

 ``

    (a) Grants.--From amounts appropriated under subsection

    (e) , the 
Secretary, in consultation with the Secretary of Labor, shall award a 
grant under this section to each eligible State that submits an 
application under subsection
            (c) for the purposes described in 

section 604.
 ``

    (b) Eligibility.--
 ``

    (1) In general.--A State is eligible for a grant under 
 this section for a fiscal year if the State--
 ``
        (A) is eligible for an allotment under 

section 603

    (a) for the fiscal year; and
 ``
        (B) has successfully completed a grant under 
 

section 102 of the Transformation to Competitive 
 Integrated Employment Act during that fiscal year or 
 the preceding fiscal year, as determined under 
 paragraph

    (2) .
 ``

    (2) Successfully completing a competitive integrated 
 employment grant.--A State has successfully completed a grant 
 under 

section 102 of the Transformation to Competitive 
 Integrated Employment Act if, at the conclusion of the 5-year 
 period of the grant, the Secretary of Labor determines the 
 State has complied with all requirements under such section for 
 such grant.
 ``
            (c) Application.--A State seeking a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may reasonably 
require, including information demonstrating the State has successfully 
complied with the requirements under subsection

    (b)

    (2) .
 ``
            (d) Awards.--
 ``

    (1) In general.--A grant to a State under this section 
 shall be awarded in an amount determined under paragraph

    (2) for each of 5 fiscal years, except as provided under paragraph

    (3) .
 ``

    (2) Amount.--Subject to available appropriations under 
 subsection

    (e) , the amount of a grant under this section to a 
 State for a fiscal year shall be equal to 25 percent of the 
 amount allotted to such State under subsection

    (a) of 

section 603 for the preceding fiscal year (excluding any additional 
 amounts allotted to the State under subsection

    (b) of such 
 section).
 ``

    (3) Continued compliance.--In the case that a State 
 receiving a grant under this section ceases compliance with 
 subsection

    (b)

    (2) for a fiscal year--
 ``
        (A) no amounts shall be awarded through such 
 grant for such fiscal year; or
 ``
        (B) if such amounts have already been awarded to 
 the State for such fiscal year, the State shall return 
 to the Secretary such amounts.
 ``

    (4) Competitive integrated employment fund.--
 ``
        (A) Establishment of fund.--There is established 
 in the Treasury of the United States a fund to be known 
 as the `Competitive Integrated Employment Fund' 
 (referred to in this paragraph as the `Fund').
 ``
        (B) Deposits.--The Secretary shall deposit into 
 the Fund any amount received under paragraph

    (3)
        (B) .
 ``
            (C) Use of fund amounts.--Amounts in the Fund 
 shall be available to the Secretary of Labor, without 
 fiscal year limitation, for activities to increase 
 competitive integrated employment opportunities for 
 people with disabilities.
 ``

    (e) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2031 through 2035 such sums as 
may be necessary to carry out this section.''.

    (2) Table of contents.--The table of contents in 

section 1

    (b) of the Rehabilitation Act of 1973 is amended by inserting 
 after the item relating to 

section 610 the following:

``

Sec. 611. Additional funding for certain States with competitive 
 integrated employment.''.

SEC. 103. CERTIFICATE HOLDER GRANT PROGRAM.

    (a) In General.--To be eligible to receive a grant under this 
section, an eligible entity shall submit an application to the 
Secretary at such time, in such manner, and including such information 
as the Secretary may reasonably require.

    (b) Contents.--Each application submitted under subsection

    (a) shall include--

    (1) the status of the eligible entity's use of special 
 certificates to employ people with disabilities, including--
        (A)
            (i) the number of employees the eligible entity 
 employs using such special certificates at the time of 
 submission of the application;
            (ii) the aggregate demographic profile of such 
 employees, including gender, race, and type of 
 disability of such employees, unless indicating such 
 demographic profile would disclose personal identifying 
 information; and
            (iii) an historical accounting, covering each of 
 the previous 4 fiscal years, of--
            (I) the number of employees with a 
 disability working for a wage that is--

    (aa) less than the higher of the 
 rate specified in 

section 6

    (a)

    (1) of 
 the Fair Labor Standards Act of 1938 
 (29 U.S.C. 206

    (a)

    (1) ) or the rate 
 specified in the applicable State or 
 local minimum wage law; or

    (bb) less than the customary rate 
 paid by the employer for the same or 
 similar work performed by other 
 employees who are not people with 
 disabilities, and who are similarly 
 situated in similar occupations by the 
 same employer and who have similar 
 training, experience, and skills; and
            (II) an aggregate demographic profile of 
 such employees including gender, race, 
 ethnicity, age, and type of disability;
        (B) the average, minimum, maximum, and range of 
 hourly wages paid to employees employed using such 
 special certificates during the previous year;
            (C) for each of the preceding 5 fiscal years, the 
 number of people with disabilities, disaggregated by 
 fiscal year, who have been transitioned by the eligible 
 entity from employment under such special certificates 
 to competitive integrated employment; and
            (D) a description of the business and program 
 models (including the financial and organizational 
 structure) of the eligible entity that is using the 
 special certificates, including--
            (i) the number and type of contracts the 
 entity has entered into during the preceding 5 
 fiscal years to supply goods or services, 
 including an indication for each such contract 
 of whether people with disabilities are 
 employed under the contract;
            (ii) the budget and the funding structure, 
 including all sources of funding, for the 
 preceding 5 fiscal years;
            (iii) the human resource structure; and
            (iv) the entities partnering with the 
 eligible entity as described in subsection

    (h)

    (2) ;

    (2) a description of activities to be funded under the 
 grant, and the goals of such activities, including--
        (A) a description of the business and program 
 models of competitive integrated employment or a 
 combination of competitive integrated employment, 
 integrated services, and other companionship and 
 personal support services, into which the models of the 
 eligible entity will transform, including the business 
 plan, employment structure, and leadership organization 
 of the eligible entity;
        (B) a description of--
            (i) the integrated services to be provided 
 by the eligible entity; or
            (ii) the eligible entity's process for 
 referring an individual requiring such services 
 to a provider of such services to ensure that 
 the individual receives such services;
            (C) after the transformation of the eligible 
 entity's business and program models as described in 
 subparagraph
        (A) , the number of employees that will be 
 employed under such models;
            (D) the date on which the eligible entity will 
 discontinue using special certificates, and the funding 
 structure the eligible entity will use to provide 
 competitive integrated employment or a combination of 
 such employment and integrated services; and
        (E) the process to be used for the transformation 
 of the eligible entity's business and program models as 
 described in subparagraph
        (A) , including--
            (i) redesign of contracts;
            (ii) changes in funding sources;
            (iii) staff training on competitive 
 integrated employment support and practices;
            (iv) input from key stakeholders, including 
 people with disabilities, their families, and 
 other local stakeholders; and
            (v) a description of the individuals who 
 will be responsible for the development and 
 implementation of such process;

    (3) a description of the process to recruit and engage 
 Federal, State, and local governments and nonprofit and private 
 employers to hire people with disabilities who have been 
 employed under special certificates;

    (4) a timeline of activities to be implemented and goals to 
 be reached on at least a quarterly basis during the 3-year 
 grant period;

    (5) a description of how the activities under the grant 
 will coordinate and align Federal, State, and local programs, 
 agencies, and funding in the transformation described in 
 paragraph

    (2)
        (A) ;

    (6) assurances that--
        (A) the activities carried out under the grant will 
 result in the transformation described in paragraph

    (2)
        (A) ;
        (B) people with disabilities who are employed by 
 the eligible entity under special certificates will be 
 employed in competitive integrated employment;
            (C) the eligible entity will comply with the 
 requirements of the Secretary with respect to the 
 collection of data;
            (D) the eligible entity will cooperate in the 
 evaluation described in title IV by providing all data 
 required and allow evaluation of the activities under 
 the grant; and
        (E) the eligible entity will cooperate with the 
 nonprofit entity carrying out technical assistance and 
 dissemination required under title III;

    (7) a description of the eligible entity's evaluation plan 
 to determine the impact of the grant;

    (8) assurances of collaboration and support from all State 
 entities involved in supporting people with disabilities to 
 secure competitive integrated employment, including the State 
 Medicaid agency, the State developmental disability agency, the 
 State vocational rehabilitation agency, the State department of 
 education, and the State board, and other State and local 
 governmental entities (including the local board) and 
 organizations that support transformations to providing 
 competitive integrated employment and integrated services for 
 employees employed under a special certificate; and

    (9) such other information and assurances as the Secretary 
 may reasonably require.
            (c) Geographic Diversity.--To the extent practicable, the Secretary 
shall distribute grant funds under this section equitably among 
geographic areas of the United States, and shall take into account 
rural and urban diversity.
            (d) Program Size.--To the extent practicable, the Secretary shall 
distribute grant funds under this section equitably among eligible 
entities providing employment using special certificates serving 
different numbers of people.

    (e) Duration of Awards.--

    (1) Grant period.--A grant awarded under this section shall 
 be awarded for a period of 3 years.

    (2) Grant cycles.--Grants shall be awarded under this 
 section in 2 grant cycles. Grants for the second grant cycle 
 shall be awarded not earlier than the end of the second year of 
 the first 3-year grant cycle.

    (f) Limit on Award Number.--An eligible entity may only be awarded 
1 grant total under this section.

    (g) Amount of Awards.--A grant awarded under this section may not 
be made in an amount that is less than $200,000, or more than $750,000, 
for the 3-year grant period.

    (h) Eligible Entity Defined.--In this title, the term ``eligible 
entity'' means an entity that--

    (1) employs people with disabilities under special 
 certificates and is located in a State that did not receive a 
 grant under 

section 102; and

    (2) partners with at least 2 entities with experience 
 providing support to people with disabilities in competitive 
 integrated employment, such as--
        (A) an employer providing competitive integrated 
 employment;
        (B) a State developmental disability agency;
            (C) a State mental health services agency;
            (D) a representative of an agency described in 
 paragraph

    (6) or

    (7) of 

section 8501 of title 41, 
 United States Code;
        (E) a representative of the State Council on 
 Developmental Disabilities, as defined in 

section 102 
 of the Developmental Disabilities Assistance and Bill 
 of Rights Act of 2000 (42 U.S.C. 15002);
        (F) a representative of the State vocational 
 rehabilitation agency, as such term is used under the 
 Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
        (G) a representative of the State independent 
 living centers, as such term is used under the 
 Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
        (H) a representative of one of the State University 
 Centers for Excellence in Developmental Disabilities 
 Education, Research, and Service, established under 
 subtitle D of title I of the Developmental Disabilities 
 Assistance and Bill of Rights Act of 2000 (42 U.S.C. 
 15061 et seq.);
            (I) a representative of the State protection and 
 advocacy system, as defined in 

section 102 of the 
 Developmental Disabilities Assistance and Bill of 
 Rights Act of 2000 (42 U.S.C. 15002); and
        (J) a nonprofit agency or organization specializing 
 in competitive integrated employment.

TITLE II--PHASE OUT OF SPECIAL CERTIFICATES UNDER 

SECTION 14
            (c) OF THE 
 FAIR LABOR STANDARDS ACT OF 1938

SEC. 201. TRANSITION TO FAIR WAGES FOR PEOPLE WITH DISABILITIES.

    (a) In General.--Subparagraph
        (A) of 

section 14
            (c) (1) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 214
            (c) (1) ) is amended to read as 
follows:
 ``
        (A) at a rate that equals, or exceeds, the greater of--
 ``
            (i) 
            (I) 60 percent of the wage rate in effect 
 under 

section 6

    (a)

    (1) , beginning on the effective date 
 described in 

section 201

    (b) of the Transformation to 
 Competitive Integrated Employment Act;
 ``
            (II) 70 percent of the wage rate in effect under 
 

section 6

    (a)

    (1) , beginning 2 years after the date of 
 enactment of such Act;
 ``
            (III) 80 percent of the wage rate in effect under 
 

section 6

    (a)

    (1) , beginning 3 years after such date of 
 enactment;
 ``
            (IV) 90 percent of the wage rate in effect under 
 

section 6

    (a)

    (1) , beginning 4 years after such date of 
 enactment; and
 ``
            (V) the wage rate in effect under 

section 6

    (a)

    (1) , beginning 5 years after such date of 
 enactment; or
 ``
            (ii) the wage rate in effect on the day before 
 the date of enactment of the Transformation to 
 Competitive Integrated Employment Act for the 
 employment, under a special certificate issued under 
 this paragraph, of the individual for whom the wage 
 rate is determined under this paragraph;''.

    (b) Effective Date.--The amendment made by subsection

    (a) shall 
take effect on the date that is 90 days after the date of enactment of 
this Act.

SEC. 202. PROHIBITION ON NEW SPECIAL CERTIFICATES; SUNSET.

 

Section 14
            (c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
214
            (c) ) (as amended by 

section 201), is further amended by adding at 
the end the following:
 ``

    (6) Prohibition on New Special Certificates.--Notwithstanding 
paragraph

    (1) , the Secretary shall not issue a special certificate 
under this subsection to an employer that was not issued a special 
certificate under this subsection before the date of enactment of the 
Transformation to Competitive Integrated Employment Act.
 ``

    (7) Sunset.--Beginning on the day after the date that is 5 years 
after the date of enactment of the Transformation to Competitive 
Integrated Employment Act--
 ``
        (A) the authority to issue special certificates under 
 paragraph

    (1) shall expire; and
 ``
        (B) no special certificates issued under paragraph

    (1) shall have any legal effect.''.

 TITLE III--TECHNICAL ASSISTANCE AND DISSEMINATION

SEC. 301. TECHNICAL ASSISTANCE AND DISSEMINATION.

    (a) Grant Authorized.--From the amounts appropriated for this 
title, the Secretary (acting through the Office of Disability 
Employment Policy in partnership with the Employment and Training 
Administration), in partnership with the Administration for Community 
Living of the Department of Health and Human Services and the Office of 
Special Education and Rehabilitative Services of the Department of 
Education, shall award a grant to a nonprofit entity to--

    (1) provide technical assistance to employers who are 
 transforming from employing people with disabilities using 
 special certificates to providing competitive integrated 
 employment;

    (2) identify and disseminate private and public sector 
 models of the transformation described in subparagraph
        (A) ;

    (3) build a set of replicable strategies for employers 
 using special certificates to increase their use of evidence-
 based practices in providing competitive integrated employment 
 and increase their options for providing competitive integrated 
 employment;

    (4) collect and disseminate--
        (A) evidence-based practices with respect to the 
 transformations described in paragraph

    (1)
        (A) , 
 including practices that increase awareness of and 
 access to training materials from and opportunities 
 offered through the Office of Disability Employment 
 Policy; and
        (B) evidence-based strategies for implementing the 
 aims of activities that are intended to improve the 
 quality of integrated services provided to people with 
 disabilities leading to competitive integrated 
 employment and that are carried out--
            (i) under the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3101 et seq.);
            (ii) through settlement agreements made 
 pursuant to the employment requirements under 
 the Olmstead decision; or
            (iii) through home and community-based 
 services described in the final rule of the 
 Department of Health and Human Services 
 entitled ``Medicaid Program; State Plan Home 
 and Community-Based Services, 5-Year Period for 
 Waivers, Provider Payment Reassignment, and 
 Home and Community-Based Setting Requirements 
 for Community First Choice and Home and 
 Community-Based Services

    (HCBS) Waivers'' (79 
 Fed. Reg. 2948 (January 16, 2014)), or a 
 successor rule;

    (5) leverage and increase awareness of and access to 
 training materials and opportunities made available through 
 training and technical assistance investments of--
        (A) the Office of Disability Employment Policy;
        (B) the Employment and Training Administration;
            (C) the Administration for Community Living of the 
 Department of Health and Human Services; and
            (D) the Office of Special Education and 
 Rehabilitative Services of the Department of Education;

    (6) raise awareness of efforts in States to carry out the 
 Employment First initiative; and

    (7) coordinate dissemination efforts related to ABLE 
 accounts and other financial asset development resources 
 through the ABLE National Resource Center and the Department of 
 the Treasury.

    (b) Application.--

    (1) In general.--To be eligible to receive a grant under 
 this section, a nonprofit entity shall submit an application to 
 the Secretary at such time, in such manner, and including such 
 information that the Secretary may reasonably require.

    (2) Contents.--Each application submitted under paragraph

    (1) shall include--
        (A) a description of the nonprofit entity's 
 expertise in providing technical assistance that shall 
 include evidence of--
            (i) knowledge of transforming business and 
 program models providing employment using 
 special certificates to models providing 
 competitive integrated employment and 
 integrated services;
            (ii) knowledge of methods for supporting 
 employers, including employers not receiving a 
 grant or assistance through a grant under title 
 I, to transform as described in clause
            (i) ;
            (iii) experience working with nonprofit 
 entities, for-profit entities, and Federal, 
 State, and local agencies focusing on 
 employment of youth and adults who are people 
 with disabilities; and
            (iv) experience working with people with 
 disabilities and their families;
        (B) a description of the nonprofit entity's 
 expertise in providing, collecting, compiling, 
 communicating, and disseminating information about 
 program and systems change for programs serving people 
 with disabilities that shall include--
            (i) expertise documenting program change;
            (ii) experience compiling recommended 
 practices related to program transformations;
            (iii) expertise regarding competitive 
 integrated employment for youth and adults who 
 are people with disabilities;
            (iv) expertise working with people with 
 disabilities and their families through systems 
 change procedures;
            (v) expertise creating accessible products 
 to disseminate learned information, including 
 through web-based means;
            (vi) experience creating accessible 
 websites to disseminate information;
            (vii) experience working with nonprofit 
 entities, for-profit entities, and Federal, 
 State, and local agencies focusing on 
 employment of youth and adults who are people 
 with disabilities;
            (viii) experience with assisting youth who 
 are people with disabilities in transitioning 
 from receiving services under the Individuals 
 with Disabilities Education Act (20 U.S.C. 1401 
 et seq.) and from kindergarten through grade 12 
 to inclusive postsecondary education and 
 competitive integrated employment; and
            (ix) experience leveraging resources, 
 available through the Office of Disability 
 Employment Policy and the Employment and 
 Training Administration, that are designed to 
 provide effective and efficient services to job 
 seekers who are people with disabilities in 
 competitive integrated employment settings; and
            (C) a description of the individuals at the 
 nonprofit entity who will be responsible for carrying 
 out the activities under this section.

    (3) Duration of award.--A grant under this section shall be 
 awarded for a period of 6 years, and shall be non-renewable.

    (4) Definition of nonprofit entity.--In this section, the 
 term ``nonprofit entity'' means a nonprofit entity with 
 expertise in collecting, compiling, communicating, and 
 disseminating information about program and systems change for 
 programs serving people with disabilities.

 TITLE IV--REPORTING AND EVALUATION

SEC. 401. IMPACT EVALUATION AND REPORTING.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall enter into a contract with a 
nonprofit entity with experience in conducting evaluations of program 
and systems change efforts to--

    (1) conduct a multi-year evaluation on the impact of this 
 Act, including the amendments made by this Act, with respect to 
 people with disabilities (including such people receiving a 
 wage rate under 

section 14
            (c) of the Fair Labor Standards Act 
 of 1938 (29 U.S.C. 214
            (c) ), as amended by title II); and

    (2) prepare the reports described in subsection
            (c) .

    (b) Evaluation.--In carrying out subsection

    (a)

    (1) , the nonprofit 
entity awarded a contract under this section shall evaluate--

    (1) changes in wages and employment for people described in 
 subsection

    (a)

    (1) ; and

    (2) actions taken by employers and States to comply with 
 the amendments made by title II and, in the case of an employer 
 or State receiving funds under title I, to comply with the 
 transformation requirements under such title.
            (c) Reports.--The Secretary shall submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Education and Workforce of the House of Representatives, the 
following reports on the evaluation conducted under subsection

    (a)

    (1) :

    (1) An interim report on the evaluation, not later than 3 
 years after the evaluation commences under subsection

    (a)

    (1) .

    (2) A final report on such evaluation, not later than 18 
 months after the date on which the legal effect of special 
 certificates expire pursuant to paragraph

    (7) of 

section 14
            (c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214
            (c) ), as 
 added by title II.

SEC. 402. WAGE AND HOUR REPORTS.

    (a) In General.--For each year of the 5-year period described in 

section 14
            (c) (1)
        (A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
214
            (c) (1)
        (A) ), as amended by title II, the Secretary (acting through 
the Administrator of the Wage and Hour Division), in coordination with 
the Civil Rights Division of the Department of Justice, shall submit to 
the Committee on Health, Education, Labor, and Pensions of the Senate 
and the Committee on Education and Workforce of the House of 
Representatives, an annual report summarizing practices of employers 
providing employment using special certificates, which, with respect to 
the preceding year, shall include--

    (1) the number of employees (of such employers) who are 
 people with disabilities and who are compensated at a rate that 
 is less than--
        (A) the higher of the rate specified in 

section 6

    (a)

    (1) of the Fair Labor Standards Act of 1938 (29 
 U.S.C. 206

    (a)

    (1) ) or the rate specified in the 
 applicable State or local minimum wage law; or
        (B) the customary rate paid by the employer for the 
 same or similar work performed by other employees who 
 are not people with disabilities, and who are similarly 
 situated in similar occupations by the same employer 
 and who have similar training, experience, and skills;

    (2) the type of employment setting (such as segregated 
 employment or competitive integrated employment) and the 
 integrated services provided by such employers;

    (3) the average hourly wage, minimum and maximum hourly 
 wage, and average hours worked per week of employees described 
 in paragraph

    (1) , disaggregated by employer and by State;

    (4) the aggregate demographic characteristics of employees 
 described in paragraph

    (1) , including the gender, ethnicity, 
 race, and type of disability of such employees; and

    (5) the number of employees who have transitioned from 
 employment provided under a special certificate to competitive 
 integrated employment, disaggregated by employer and by State.

    (b) Report on Audit of Existing Special Certificate Holders.--Not 
later than 1 year after the date of enactment of this Act, the 
Secretary (acting through the Administrator of the Wage and Hour 
Division) shall--

    (1) conduct an audit of not less than 10 percent of 
 employers providing employment to employees using special 
 certificates, as of the date of enactment of this Act, which 
 shall include an audit of--
        (A) the training and support provided to such 
 employees to promote their transition to competitive 
 integrated employment;
        (B) the actions taken by employers to identify 
 competitive integrated employment for such employees; 
 and
            (C) the wages of such employees, including whether 
 such wages are at a rate that is less than--
            (i) the higher of the rate specified in 
 

section 6

    (a)

    (1) of the Fair Labor Standards Act 
 of 1938 (29 U.S.C. 206

    (a)

    (1) ) or the rate 
 specified in the applicable State or local 
 minimum wage law; or
            (ii) the customary rate paid by the 
 employer for the same or similar work performed 
 by other employees who are not people with 
 disabilities, and who are similarly situated in 
 similar occupations by the same employer and 
 who have similar training, experience, and 
 skills; and

    (2) submit a report on such audit to the Committee on 
 Health, Education, Labor, and Pensions of the Senate, the 
 Special Committee on Aging of the Senate, and the Committee on 
 Education and Workforce of the House of Representatives.

 TITLE V--GENERAL PROVISIONS

SEC. 501. DEFINITIONS.

 In this Act:

    (1) ABLE account.--The term ``ABLE account'' has the 
 meaning given such term in 

section 529A

    (e)

    (6) of the Internal 
 Revenue Code of 1986.

    (2) Competitive integrated employment.--The term 
 ``competitive integrated employment'' has the meaning given the 
 term in 

section 7

    (5) of the Rehabilitation Act of 1973 (29 
 U.S.C. 705

    (5) ).

    (3) Disability.--The term ``disability'' includes any 
 intellectual, developmental, mental health, or other 
 disability.

    (4) Integrated community participation and wraparound 
 services; integrated services.--
        (A) In general.--Except as provided in subparagraph
        (B) , the terms ``integrated community participation and 
 wraparound services'' and ``integrated services'' mean 
 services for people with disabilities that are--
            (i) designed to assist such people in 
 developing skills and abilities to reside 
 successfully in home and community-based 
 settings;
            (ii) provided in accordance with a person-
 centered written plan of care;
            (iii) created using evidence-based 
 practices that lead to such people--
            (I) maintaining competitive 
 integrated employment;
            (II) achieving independent living; 
 or
            (III) maximizing socioeconomic 
 self-sufficiency, optimal independence, 
 and full participation in the 
 community;
            (iv) provided in a community location that 
 is not specifically intended for people with 
 disabilities;
            (v) provided in a location that--
            (I) allows the people receiving the 
 services to interact with people 
 without disabilities to the fullest 
 extent possible; and
            (II) makes it possible for the 
 people receiving the services to access 
 community resources that are not 
 specifically intended for people with 
 disabilities and to have the same 
 opportunity to participate in the 
 community as people who do not have a 
 disability;
            (vi) provided in multiple locations to 
 allow the individual receiving the services to 
 have options, thereby--
            (I) optimizing individual 
 initiative, autonomy, and independence; 
 and
            (II) facilitating choice regarding 
 services and supports, and choice 
 regarding the provider of such 
 services; and
            (vii) in compliance with the final rule of 
 the Department of Health and Human Services 
 entitled ``Medicaid Program; State Plan Home 
 and Community-Based Services, 5-Year Period for 
 Waivers, Provider Payment Reassignment, and 
 Home and Community-Based Setting Requirements 
 for Community First Choice and Home and 
 Community-Based Services

    (HCBS) Waivers'' (79 
 Fed. Reg. 2948 (January 16, 2014)), or a 
 successor rule.
        (B) Exclusions.--The terms ``integrated community 
 participation and wraparound services'' and 
 ``integrated services'' shall not include a service 
 provided in any of the following settings:
            (i) A nursing facility.
            (ii) An institution for people with mental 
 diseases.
            (iii) An intermediate care facility for 
 people with intellectual disabilities.
            (iv) A congregate setting in which an 
 individual does not have the ability, at the 
 time preferred by the individual and in 
 accordance with other preferences of the 
 individual, to access services supporting the 
 full inclusion and engagement of the individual 
 in the greater community.

    (5) Local board; local plan.--The terms ``local board'' and 
 ``local plan'' have the meanings given such terms in 

section 3 
 of the Workforce Innovation and Opportunity Act (29 U.S.C. 
 3102).

    (6) Olmstead decision.--The term ``Olmstead decision'' 
 means the decision of the Supreme Court of the United States in 
 Olmstead v. L.C., 527 U.S. 581

    (1999) .

    (7) Olmstead plan.--The term ``Olmstead plan'', with 
 respect to a State, means the plan of the State for complying 
 with the holding in the Olmstead decision.

    (8) People with disabilities.--The term ``people with 
 disabilities'' includes individuals described in 

section 14
            (c) (1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
 214
            (c) (1) ).

    (9) Secretary.--The term ``Secretary'' means the Secretary 
 of Labor.

    (10) Special certificate.--The term ``special certificate'' 
 means a special certificate issued under 

section 14
            (c) of the 
 Fair Labor Standards Act of 1938 (29 U.S.C. 214
            (c) ).

    (11) State.--The term ``State'' means each of the 50 
 States, the District of Columbia, the Commonwealth of Puerto 
 Rico, and the territory of Guam.

    (12) State board.--The term ``State board'' has the meaning 
 given such term in 

section 3 of the Workforce Innovation and 
 Opportunity Act.

    (13) Workforce development system.--The term ``workforce 
 development system'' has the meaning given such term in 

section 3 of the Workforce Innovation and Opportunity Act.

SEC. 502. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this Act, $200,000,000 for each of fiscal years 2026 through 2030.

    (b) Technical Assistance.--From amounts made available under 
subsection

    (a) for each fiscal year, 1 percent shall be allocated for 
the activities under title III.
 <all>