[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