[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4771 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 4771

  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 
     individuals with disabilities through competitive integrated 
employment, to phase out the use of such special certificates, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2025

  Mr. Scott of Virginia (for himself and Mr. Sessions) introduced the 
 following bill; which was referred to the Committee on Education and 
                               Workforce

_______________________________________________________________________

                                 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 
     individuals 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 individuals 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 individuals with disabilities 
        to find and retain work in competitive integrated employment;
            (2) ensure individuals with disabilities, families of such 
        individuals, State and local governments, and other 
        stakeholders are involved in the transformations described in 
        paragraph (1);
            (3) ensure individuals 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 individuals 
        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 individuals 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 
individuals 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 individuals with 
                disabilities, and who are similarly situated in similar 
                occupations by the same employer and who have similar 
                training, experience, and skills;
            (2) assisting individuals 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 individuals with disabilities; and
            (4) ensuring all such services and other non-employment 
        services offered under, or with assistance from, such a grant 
        comply with the requirements for home and community-based 
        services under the Home and Community-Based Services (HCBS) 
        final rule published on January 16, 2014 (79 Fed. Reg. 2948), 
        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 
                        individuals with disabilities;
                            (ii) the number of employers described in 
                        clause (i) that also employ individuals 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 
                                personally identifiable 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 
                individuals 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 
                        individuals with disabilities using special 
                        certificates to employing individuals with 
                        disabilities in competitive integrated 
                        employment settings, or a setting 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 individuals with disabilities who have 
                        been employed under special certificates 
                        through such a transformation, including 
                        providing enhanced integrated services to 
                        support individuals 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 individuals 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 
                        individuals;
                            (vi) a timeline for phasing out employment 
                        using special certificates in the State, 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 individuals 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 
                        individuals 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 phased out employment using special certificates) 
                on--
                            (i) the employment status of individuals 
                        with disabilities in the State, including the 
                        number of hours worked, average wages, and job 
                        satisfaction, of such individuals; 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) individuals 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 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 Home 
                                and Community-Based Services (HCBS) 
                                final rule published on January 16, 
                                2014 (79 Fed. Reg. 2948), 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 individuals with disabilities employed 
                        under special certificates regarding the 
                        availability of--
                                    (I) ABLE accounts and other asset 
                                developmental options for individuals 
                                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 individuals 
                                with disabilities who wish to 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 i