H.R. 4771

[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 in 
paragraph (2)(F)(vii), establish an advisory council composed 
of the following:
(A) Individuals with disabilities, including such 
individuals with intellectual and developmental 
disabilities, who are or were employed under a special 
certificate, who shall comprise not less than 25 
percent of the members.
(B) A family member of an individual with an 
intellectual or developmental disability who is 
employed under a special certificate.
(C) A family member of an individual 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 in the State 
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 $2,000,000, or more than 
$10,000,000 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 to sums or amounts appropriated under this title 
shall not be considered to 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 ``(including through a grant awarded under 
section 611)'' after ``this title'';
(C) in section 610 (29 U.S.C. 795o), by inserting 
``, except for section 611,'' after ``this title''; 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 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 determines--
``(A) the State has complied with all requirements 
under such section for such grant;
``(B) the State has ceased issuing special 
certificates under section 14(c) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 214(c)); and
``(C) no special certificates issued under such 
section have any force or effect.
``(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 a fiscal year, 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.--If a State receiving a grant 
under this section ceases compliance with subparagraph (B) or 
(C) of subsection (b)(2) for a fiscal year--
``(A) no amounts shall be awarded through such 
grant for such fiscal year; or
``(B) in a case in which such amounts have already 
been awarded to the State for such fiscal year, the 
State shall return to the Secretary such amounts.
``(e) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2030 through 2034 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 adding 
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 individuals 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 personally 
identifiable 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 individuals with 
disabilities, and who are similarly 
situated in similar occupations by the 
same employer and who have similar 
training, experience, and skills; or
(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) during the preceding 5 fiscal years, the number 
of individuals 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 types of contracts the 
entity has entered into during the preceding 5 
fiscal years to supply goods or services and 
under which individuals with or without 
disabilities are employed;
(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 and 
integrated 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 
individuals 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 individuals 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) individuals 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 with 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, including the State Medicaid agency, the State 
developmental disability agency, the State vocational 
rehabilitation agency, the State department of education, the 
State board, the local board, and other State and local 
governmental entities 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 individuals.
(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 $100,000, or more than $500,000, 
for the 3-year grant period.
(h) Eligible Entity Defined.--In this title, the term ``eligible 
entity'' means an entity that--
(1) employs individuals 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 individuals 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 INDIVIDUALS 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 Transformation to 
Competitive Integrated Employment Act;
``(II) 70 percent of the wage rate in effect under 
section 6(a)(1), beginning 1 year after such effective 
date;
``(III) 80 percent of the wage rate in effect under 
section 6(a)(1), beginning 2 years after such effective 
date;
``(IV) 90 percent of the wage rate in effect under 
section 6(a)(1), beginning 3 years after such effective 
date; and
``(V) the wage rate in effect under section 
6(a)(1), beginning 4 years after such effective date; 
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 3 months 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 4 years 
after the effective date described in section 201(b) 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 of the Department of Labor in partnership with the 
Employment and Training Administration of the Department of Labor), 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)(A) provide technical assistance to employers who are 
transforming from employing individuals with disabilities using 
special certificates to providing competitive integrated 
employment;
(B) identify and disseminate private and public sector 
models of the transition described in subparagraph (A); and
(C) 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;
(2) 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 of the Department of Labor; and
(B) evidence-based strategies for implementing the 
aims of activities, intended to improve the quality of 
integrated services to result in competitive integrated 
employment for individuals with disabilities, 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 Home and Community-
Based Services (HCBS) final rule published on 
January 16, 2014 (79 Fed. Reg. 2948), or a 
successor rule;
(3) 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 of 
the Department of Labor;
(B) the Employment and Training Administration of 
the Department of Labor;
(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; 
and
(4)(A) raise awareness of efforts in States to carry out 
the Employment First initiative; and
(B) 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 under title I, to transform as described 
in clause (i);
(iii) experience working with nonprofit, 
for-profit, Federal, State, and local agencies 
focusing on employment of youth and adults who 
are individuals with disabilities; and
(iv) experience working with individuals 
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 
individuals 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 individuals with disabilities;
(iv) expertise working with individuals 
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, 
for-profit, Federal, State, and local agencies 
focusing on employment of youth and adults who 
are individuals with disabilities;
(viii) experience with assisting youth who 
are individuals with disabilities in 
transitioning from receiving services under the 
Individuals with Disabilities Education Act (20 
U.S.C. 1401 et seq.) 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 individuals 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 title.
(3) Duration of award.--A grant under this section shall be 
awarded for a period of 6 years, and shall be non-renewable.
(4) Nonprofit entity defined.--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 individuals with disabilities.

TITLE IV--REPORTING AND EVALUATION

SEC. 401. IMPACT EVALUATION AND REPORTING.

(a) In General.--Not later than 6 months 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 
individuals with disabilities (including such individuals 
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 individuals 
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 
individuals 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 individuals 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 Survey 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) survey 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 
evaluation 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 individuals 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 the results of such survey 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'' or ``integrated services'' mean 
services for individuals with disabilities that are--
(i) designed to assist such individuals 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 individuals--
(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 individuals 
with disabilities;
(v) provided in a location that--
(I) allows the individuals 
receiving the services to interact with 
individuals without disabilities to the 
fullest extent possible; and
(II) makes it possible for the 
individuals receiving the services to 
access community resources that are not 
specifically intended for individuals 
with disabilities and to have the same 
opportunities to participate in the 
community as individuals 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 Home and 
Community-Based Services (HCBS) final rule 
published on January 16, 2014 (79 Fed. Reg. 
2948), or a successor rule.
(B) Exclusions.--The terms ``integrated community 
participation and wraparound services'' or ``integrated 
services'' shall not include a service provided in any 
of the following settings:
(i) A nursing facility.
(ii) An institution for individuals with 
mental diseases.
(iii) An intermediate care facility for 
individuals 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) Individuals with disabilities.--The term ``individuals 
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.

There are authorized to be appropriated to carry out this Act 
(other than section 102(f)), $50,000,000 for each of fiscal years 2026 
through 2031.
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