S2438-119

102. State grant program 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. Each application submitted under paragraph (1) shall include— a description of the status of the employers in the State providing employment using special certificates, including— the number of employers in the State using special certificates to employ and pay people with disabilities; 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; the number of employees employed under a special certificate, disaggregated by— employer; and demographic characteristics, including gender, race, ethnicity, and type of disability, unless indicating such characteristics would disclose personal identifying information; 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 the average, median, minimum, and maximum hourly wage for such employees, disaggregated by employer, and reported for the State as a whole; a description of the activities of the State with respect to competitive integrated employment for people with disabilities, including, as applicable— a copy of the State plan for carrying out the Employment First initiative; a copy of the Olmstead plan of the State; a description of activities related to the development and promotion of ABLE accounts; and 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; a description of activities to be funded under the grant, and the goals of such activities, including— 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; the number of such employers in the State that will carry out a transformation described in clause (i); 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; 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; the competitive integrated employment and integrated services that will be implemented in the State to support such people; 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; 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; 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 a description of the process to be used to engage stakeholders in such transformations; 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); 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— 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 changes in provider capacity to support competitive integrated employment and integrated services; assurances that— 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); 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; 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; 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; 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; the State will cooperate with the evaluation under title IV by providing all data required and allow the evaluation of activities under the grant; 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); the State will cooperate with the nonprofit entity carrying out technical assistance and dissemination activities under title III; all integrated services and non-employment services offered by employers in the State will 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; the holding of the Olmstead decision; and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and the State will disseminate information to all people with disabilities employed under special certificates regarding the availability of— ABLE accounts and other asset developmental options for people with disabilities; the Ticket to Work and Self Sufficiency Program established under section 1148 of the Social Security Act (42 U.S.C. 1320b–19); and other resources related to benefits counseling for people with disabilities who wish to work or are working in competitive integrated employment settings; and such other information and assurances as the Secretary may reasonably require. 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: 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. A family member of a person with an intellectual or developmental disability who is employed under a special certificate. A family member of a person with an intellectual or developmental disability who is employed in competitive integrated employment. An employer providing competitive integrated employment. An employer providing employment under special certificates. A representative of a nonprofit agency or organization specializing in competitive integrated employment. A representative of the State developmental disability agency. 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.). 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. 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.). 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). 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.). 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). A representative of the State Medicaid office. Representatives of other State agencies and disability organizations and other disability related offices and groups with expertise in competitive integrated employment. 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. A grant under this section shall be awarded for a period of 5 years. A State may only be awarded 1 grant under this section. 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. Title VI of the Rehabilitation Act of 1973 is amended— in section 603 (29 U.S.C. 795h)— in subsection (a), by adding at the end the following: 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). in subsection (c)— by inserting or a grant under section 611 after allotment under this title; and by inserting or such grant after such allotment; and in subsection (d)— by inserting or a grant under section 611 after allotment under this title; and by inserting or such grant after such allotment; 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; in section 610 (29 U.S.C. 795o)— by inserting , except for section 611, after this title; by striking and; and by inserting , and such sums as may be necessary for each of fiscal years 2026 through 2035 before the period at the end; and by adding at the end the following: 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. A State is eligible for a grant under this section for a fiscal year if the State— is eligible for an allotment under section 603(a) for the fiscal year; and 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). 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. 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). 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). 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). In the case that a State receiving a grant under this section ceases compliance with subsection (b)(2) for a fiscal year— no amounts shall be awarded through such grant for such fiscal year; or if such amounts have already been awarded to the State for such fiscal year, the State shall return to the Secretary such amounts. 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). The Secretary shall deposit into the Fund any amount received under paragraph (3)(B). 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. 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. 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: (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). ; 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. . Sec. 611. Additional funding for certain States with competitive integrated employment. .

103. Certificate holder grant program 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. Each application submitted under subsection (a) shall include— the status of the eligible entity’s use of special certificates to employ people with disabilities, including— the number of employees the eligible entity employs using such special certificates at the time of submission of the application; 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 an historical accounting, covering each of the previous 4 fiscal years, of— the number of employees with a disability working for a wage that is— 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 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 an aggregate demographic profile of such employees including gender, race, ethnicity, age, and type of disability; the average, minimum, maximum, and range of hourly wages paid to employees employed using such special certificates during the previous year; 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 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— 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; the budget and the funding structure, including all sources of funding, for the preceding 5 fiscal years; the human resource structure; and the entities partnering with the eligible entity as described in subsection (h)(2); a description of activities to be funded under the grant, and the goals of such activities, including— 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; a description of— the integrated services to be provided by the eligible entity; or 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; 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; 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 the process to be used for the transformation of the eligible entity’s business and program models as described in subparagraph (A), including— redesign of contracts; changes in funding sources; staff training on competitive integrated employment support and practices; input from key stakeholders, including people with disabilities, their families, and other local stakeholders; and a description of the individuals who will be responsible for the development and implementation of such process; 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; a timeline of activities to be implemented and goals to be reached on at least a quarterly basis during the 3-year grant period; 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); assurances that— the activities carried out under the grant will result in the transformation described in paragraph (2)(A); people with disabilities who are employed by the eligible entity under special certificates will be employed in competitive integrated employment; the eligible entity will comply with the requirements of the Secretary with respect to the collection of data; 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 the eligible entity will cooperate with the nonprofit entity carrying out technical assistance and dissemination required under title III; a description of the eligible entity’s evaluation plan to determine the impact of the grant; 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 such other information and assurances as the Secretary may reasonably require. 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. 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. A grant awarded under this section shall be awarded for a period of 3 years. 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. An eligible entity may only be awarded 1 grant total under this section. 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. In this title, the term eligible entity means an entity that— employs people with disabilities under special certificates and is located in a State that did not receive a grant under section 102; and partners with at least 2 entities with experience providing support to people with disabilities in competitive integrated employment, such as— an employer providing competitive integrated employment; a State developmental disability agency; a State mental health services agency; a representative of an agency described in paragraph (6) or (7) of section 8501 of title 41, United States Code; 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); 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.); 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.); 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.); 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 a nonprofit agency or organization specializing in competitive integrated employment.

502. Authorization of appropriations There is authorized to be appropriated to carry out this Act, $200,000,000 for each of fiscal years 2026 through 2030. From amounts made available under subsection (a) for each fiscal year, 1 percent shall be allocated for the activities under title III.