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The original documents are located in Box 59, folder "1976/10/01 HR12987 Emergency
Jobs Program Extension Act of 1976" of the White House Records Office: Legislation Case
Files at the Gerald R. Ford Presidential Library.
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$ 10/1/16
APPROVED
THE WHITE HOUSE
ACTION
Last Day: October 8
WASHINGTON
October 1, 1976
MEMORANDUM FOR THE PRESIDENT
FROM:
JIM CANNON
Posted
SUBJECT:
H.R. 12987 Jun Emergency Jobs Program
Extension Act of 1976
10/2/76
achives
Attached for your consideration is H.R. 12987, sponsored
10/4/76
by Representative Daniels and three others.
The enrolled bill authorizes appropriations of such sums
as may be necessary through fiscal year 1977 for the
public service employment program under Title VI of the
Comprehensive Employment and Training Act (CETA).
The current Title VI program funds 260,000 jobs, but this
figure will no doubt rise during next year's appropriation
process. The second Congressional budget resolution pro-
vides $4.1 billion, or funds for about 500,000 jobs (cur-
rent funding is approximately $2.5 billion), All new jobs
funded beyond the current level and 50% of vacancies from
attrition must be filled by long-term, low-income unemployed
persons. This was a provision you insisted upon.
The bill also changes the way in which unemployment benefits
are financed for former public service jobholders and es-
tablishes a National Commission on Employment and Unemploy-
ment Statistics.
A detailed discussion of the provisions of the enrolled
bill is provided in Jim Lynn's memorandum at Tab A.
OMB, Max Friedersdorf, Counsel's Office, Bill Seidman and
I recommend that you sign H.R. 12987.
RECOMMENDATION
That you sign H.R. 12987 at Tab B.
GERALD LIBRADA ? FORD
RESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
STATE
WASHINGTON, D.C. 20503
OCT 1 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 12987 - Emergency Jobs Programs
Extension Act of 1976
Sponsor - Rep. Daniels (D) New Jersey and 3 others
Last Day for Action
October 8, 1976 - Friday
Purpose
Authorizes appropriations of such sums as may be necessary
through fiscal year 1977 for the public service employment
(PSE) program under Title VI of the Comprehensive Employment
and Training Act (CETA) ; amends the PSE provisions of CETA;
changes the way in which unemployment benefits are financed
for former public service jobholders; and establishes a
National Commission on Employment and Unemployment Statistics.
Agency Recommendations
Office of Management and Budget
Approval
Department of Labor
Approval
Department of the Interior
Approval
Council of Economic Advisers
Approval
Department of Commerce
No objection
Department of Treasury
No objection to
disapproval
Discussion
In December 1974, Title VI--Emergency Job Programs--was
added to the Comprehensive Employment and Training Act of
1973 (CETA) as a temporary countercyclical program. Title
VI authorizes a public service employment (PSE) program in
addition to the limited PSE program provided for in Title
II of CETA. There are now approximately 260,000 persons
employed under the emergency Title VI program and 50,000
employed under the permanent Title II program.
2
The Title II program was directed to areas of 6.5% or higher
unemployment. The Title VI program was intended to respond
in part to the high national rate of unemployment by dis-
tributing funds to all areas of the country. Congress
believes that the Title VI program is still needed because
of the current high unemployment rate.
The $2.5 billion authorization for Title VI was only for
fiscal year 1975. To extend the program, the House on
April 30, 1976, passed (287-42) a bill authorizing appropria-
tion of such sums as may be necessary for fiscal year 1976
and the transition quarter. The Senate on August 10, 1976,
passed (67-11) its version of H.R. 12987, which among several
other provisions, authorized "such sums" for Title VI through
fiscal year 1977. The Senate Committee report states that
a doubling of the Title VI program to 520,000 jobs could be
provided under its bill. The Senate bill would have limited
participation by new employees in the program to low-income,
long-term unemployed individuals.
The Administration opposed the House and Senate versions of
H.R. 12987, noting that the Administration had proposed to
phase out the Title VI program in fiscal year 1977 because
the economy is expected to improve. When the House and
Senate versions went to conference, you approved expressing
support for an extension of Title VI at current levels as
long as new employees were limited to the long-term unemployed.
The Conference Report was agreed to in the House by a vote
of 295-9 and in the Senate by voice vote.
The enrolled bill requires that any new jobs funded over the
level on board June 30, 1976, must be in 12-month projects.
Jobs in the projects, plus 50% of vacancies occurring after
June 30, 1976, must be filled with individuals who: (1) are
long-term unemployed (15 or more weeks) or who are welfare
recipients and (2) are not in households with gross incomes
exceeding 70% of the Bureau of Labor Statistics lower living
standard income level (approximately $6,700 nationwide, but
with regional and urban/rural differentials). In filling the
other 50% of vacancies a preference could be given to un-
employed public health and safety personnel; no limits or
quotas can be set on the number of former public service
employees hired for these vacancies. These new requirements
are similar to your proposals of October 1974 and are intend-
ed to reach those most in need and to encourage the continued
search for unsubsidized jobs.
H.R. 12987 authorizes the appropriation of such sums as may
be necessary through fiscal year 1977 for the Title VI
3
program. The enrolled bill and Conference Report are silent
on the intended number of jobs to be funded. However,
Senator Nelson stated on the Senate floor during considera-
tion of the Conference Report:
"While the appropriations process will determine
the funding level under the "such sums" authoriza-
tion contained in this legislation, the second
congressional budget resolution
would
permit
appropriations up to a level sufficient to fund
500,000 public service jobs."
The enrolled bill contains several other amendments to CETA,
amends the Special Unemployment Assistance (SUA) program,
establishes a National Commission on Employment and Unemploy-
ment Statistics, and contains miscellaneous amendments. A
brief summary of the major provisions follows:
Amendments to CETA.
The amendments to CETA:
--allow a maximum of 15% (in place of the present 10%)
of CETA PSE funds to be used for administrative costs, in-
cluding new authority to rent space and purchase equipment.
This need not necessarily add to total cost but the Depart-
ment of Labor believes funds should be added (about $100
million). This will prevent a cut in the jobs level result-
ing from increases in administrative cost within an appropria-
tion based on present unit costs.
--require prime sponsors to reserve sufficient fiscal
year 1977 Title VI funds and Title II funds to sustain
throughout that year the number of public service jobholders
under those titles on board as of June 30, 1976.
--require the Secretary to reserve at least 2% of Title
VI funds for any fiscal year for Indians, and broaden the
definition of Indian under Title VI to include nonreservation
Indians and Alaskan natives. Currently, Indians receive
about 0.6% of these funds. Interior strongly supports these
provisions.
--authorize the Secretary to demonstrate the feasibility
of providing relocation assistance to unemployed workers
residing in areas of substantial unemployment who would
otherwise be eligible for public service employment. Similar
authority already is available; Labor has a multi-year
demonstration project underway.
4
--provide that financial records of prime sponsors on
public service employment and names, addresses, positions
and salaries of PSE jobholders are to be maintained and made
available to the public. The degree of public dissemination
of personal information required by this provision is objec-
tionable on privacy grounds and could set an undesirable
precedent.
Amendment to the Special Unemployment
Assistance (SUA) program.
SUA was established in December 1974 (in the same law that
authorized Title VI of CETA) as a temporary Federal program
of unemployment compensation for workers who were not other-
wise eligible for unemployment benefits under any other law.
SUA is financed from the general funds of the Treasury.
In eight States, the provisions of the unemployment compensa-
tion programs are such that localities must now use CETA
grant funds to pay the cost of unemployment compensation for
eligible CETA PSE participants. H.R. 12987 authorizes pay-
ment of these costs from SUA. This amendment takes effect
on October 1, 1976, with respect to compensation paid for
weeks of unemployment beginning after December 31, 1975.
The provisions would eliminate the need for sponsors to re-
serve CETA grant funds to pay these costs, but should not
change total Federal outlays.
National Commission on Employment and
Unemployment Statistics.
H.R. 12987 establishes a Commission to examine the procedures,
concepts, and methodology involved in employment and unemploy-
ment statistics and to suggest improvements.
The Commission's nine members are to be appointed by the
President with Senate confirmation; the Chairman is to be
designated by the President. The Commission's report, con-
taining its findings and recommendations to the President and
the Congress, is due within 18 months after the date of ap-
pointment of its first five members. Within 6 months of the
submission of the report, the Secretary of Labor is to make
an interim report to Congress commenting on the Commission's
report. Within 2 years after submission of the Commission's
report, the Secretary is to make a final report to Congress
on actions taken on the Commission's recommendations and any
further recommendations considered appropriate. These pro-
visions are generally those desired by the Department of
Labor and the Council of Economic Advisers.
5
Miscellaneous amendments in the enrolled bill:
--require the National Commission for Manpower Policy
to report to Congress no later than March 31, 1978, on the
net employment effects of the public service employment
programs authorized by Titles II and VI of CETA.
--require the Secretary of Labor to report to appro-
priate Congressional committees within 90 days of enactment
of this Act on the veterans employment situation and efforts
to give veterans special consideration in filling public
service jobs.
Budget Impact
The fiscal year 1977 budget impact will vary with the number
of jobs funded. The total increase to your estimate in the
Mid-session Review would range from $900 million to $2.125
billion as shown in the table below.
Fiscal Year
1977 Outlays
($ in millions)
Subsidized Jobs
FY 1977 Mid-session:
Estimate from prior year
obligations
860
Estimate for phase down
500
Subtotal
1,360
Phase down from current
260,000 to zero by
end of 1977
Added cost to maintain
current levels
900
Subtotal
2,260
Continue 260,000 thru 1977
Added cost to reach Budget
Resolution level
1,225
Total
3,485
Phase up from 260,000 to
500,000 by end of 1977
Initial indications are that the Congress will appropriate
sufficient funds to maintain current levels in the Continuing
Resolution. The amount thus appropriated may increase the
$2,260 million shown above by as much as $200 million due
to different assumptions about cost per job and the effect of
certain provisions of H.R. 12987. The House report on the
Continuing Resolution indicates that a supplemental is ex-
pected in the next Congress to increase the subsidized job
level, presumably to the level the Budget Resolution allows.
6
The impact of H.R. 12987 on the 1978 and 1979 budgets would
depend on whether the program was phased out or maintained
after 1977. There is no provision currently in Administration
projections for this program, so all amounts below are in
excess of these projections.
Outlays
($ in millions)
1978
1979
(a) Phase out from current levels
1,100
----
(b) Maintain current level, phase
out in 1979
2,100
1,100
(c) Maintain Budget Resolution
level
4,100
4,100
(d) Phase out from Budget
Resolution level (2 years)
3,110
1,005
Because of the new eligibility criteria in H.R. 12987 (low-
income, longer term unemployed) it is much less likely that
Congress would phase out the Title VI program in the near
term: global unemployment rate change will be given less
importance than the presence of a pool of eligibles.
Agency Recommendations
Labor recommends approval. The Department "believes H.R.
12987 contains a worthwhile program that would help provide
employment for those who most need it."
CEA recommends approval. The Council would have preferred
to limit all CETA PSE jobs to persons who had long-term
unemployment and had exhausted their unemployment compensa-
tion benefits but believes the approach in the enrolled bill
is a step in the right direction.
CEA expresses concern over the fact that members of the
executive and legislative branches are authorized to partic-
ipate in the work of the unemployment statistics commission.
This may bring political and interest group pressure on the
commission's work.
Commerce has no objection to approval. The Department recom-
mends that when appropriation requests are developed to
support the work of the Commission on Employment and Unemploy-
ment Statistics, the principal statistical agencies should
be consulted to ensure that the necessary funds are requested.
7
Treasury would have no objection to a recommendation of
disapproval. Treasury objects to the fact that H.R. 12987
would "continue to attempt to place primary emphasis in
reducing unemployment on public service jobs and would
impose no limitation on the amounts authorized to be appro-
priated for Title VI of CETA." Treasury believes that
these undesirable features outweigh the commendable features
of the bill.
* * *
Your criteria for expressing approval of H.R. 12987 were:
limit new entrants into the program to the long-term
unemployed and maintain the current level of jobs. The
bill as enrolled provides that all new jobs funded beyond
the current level and 50% of vacancies from attrition must
be filled by long-term, low-income unemployed individuals.
Although the bill is silent on the number of jobs to be
funded, the congressional intent, as indicated above, is
probably to expand the program beyond the current level,
possibly even to double it. This issue will be addressed
by the next Congress in the appropriations process.
On balance we believe that this bill represents the best
compromise we can expect from the Congress and is close to
what you indicated you could support. Therefore, we recom-
mend approval.
The Department of Labor submitted to the Economic Policy
Board a signing statement that would have you accept this
bill not as a temporary countercyclical device but rather
as a permanent addition to CETA for the structurally unem-
ployed. I strongly recommend against the DOL statement.
Since you have already indicated you will sign the bill, I
recommend the Press Office simply amounce you have signed
it when you have done SO.
Pane Dain Paul H. O'Neill
Acting Director
Enclosures
U. S. DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
WASHINGTON
SEP 27 1976
Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Lynn:
This is in response to your request for the Department's
recommendations on an enrolled bill, H.R. 12987, "Emergency
Jobs Programs Extension of 1976." We recommend that the
bill be signed.
H.R. 12987 would extend title VI of the Comprehensive
Employment and Training Act (CETA) until the end of Fiscal
Year 1977. In extending the title VI authorization for new
public service jobs, it would create a new criteria for
public service hiring. All additional public service jobs
created after June 30, 1976, would be available only to
individuals who (1) are recipients of unemployment com-
pensation for 15 weeks or more, (2) are ineligible for
unemployment benefits and unemployed 15 weeks or more, (3)
have exhausted all unemployment benefits, or (4) are members
of families receiving payments under the Aid to Families
with Dependent Children (AFDC) program. In addition, the
employee must not be a member of a household having a gross
family income in excess of 70 percent of the BLS lower
living standard budget (approximately $6700 nationally).
Further, one-half of all openings due to attrition below the
June 30 level would have to be filled with regard to the
above criteria; the remaining one-half could be refilled
under existing CETA title VI requirements (except that a
prime sponsor would be able to give preference to unemployed
public health and safety personnel in filling health and
safety positions for which they were qualified.)
- 2 -
The bill also would make several other changes in title VI.
It would allow up to 15 percent (rather than the present 10
percent) of the appropriated funds to be used for admin-
istrative costs, rental of space and purchase of necessary
supplies. It would ratify an earlier action by the Secretary
in which he followed the report language of the Senate
title II appropriation and distributed title II funds to
title VI sponsors (who did not qualify under title II). In
addition, H.R. 12987 would allow the Secretary to use
discretionary funds to prevent public service employment
layoffs rather than having his discretion governed only by
the rate of unemployment. Also, it requires that new jobs
created above the June 30 level plus the one-half of attrition
positions be used on projects and activities lasting no
longer than 12 months.
In other related areas, the bill would revise the unemployment
benefits paid to CETA public service employees in those
eight States with mandatory coverage of State and local
employees SO that costs would be paid from general revenue
funds. This prevents these eight States from having to use
CETA funds for unemployment and puts them on equal footing
with the other States where CETA public service employees
are covered by Special Unemployment Assistance. In these
latter States unemployment payments come from SUA, which is
funded from general revenues.
Finally, the bill creates a national commission to study
unemployment statistics and report its recommendation to the
Congress and the President within 18 months.
The Department believes H.R. 12987 contains a worthwhile
program that would help provide employment for those who
most need it. We urge that the bill be signed.
Sincerely,
W Juary Jr.
STATEMENT OF THE INTERIOR
United States Department of the Interior
OFFICE OF THE SECRETARY
March
1849
WASHINGTON, D.C. 20240
3,
SEP 28 1976
Dear Mr. Lynn:
This responds to your request for our views on the enrolled bill
H.R. 12987, "To authorize appropriations for carrying out title
VI of the Comprehensive Employment and Training Act of 1973, and
for other purposes. "
We recommend that the bill be approved by the President.
H.R. 12987, cited as the "Emergency Jobs Programs Extension Act
of 1976", authorizes the necessary appropriations for carrying
out the provisions of title VI of the Comprehensive Employment
and Training Act through fiscal year 1977.
Under title VI of the 1973 Act, approximately 260,000 previously
unemployed persons are currently employed in public service
employment programs, helping to meet locally determined needs
in communities throughout the Nation.
Of particular interest to this Department is a provision in
H.R. 12987 for a set-aside of not less than 2 percent of
title VI funds to be used by Indian tribes, bands, and groups
for public service employment programs.
In addition, the bill amends CETA by eliminating the restrictions
to Indian tribes which are in Federal or State reservations. The
amendment provides that eligible applicants include Indian tribes,
bands, and groups which have their own governing bodies. These
would include recognized Indian tribes in the State of Oklahoma
and Alaskan Native villages in the State of Alaska.
PAERICAN REVOLUTION INFORMENIAL
1776-1976
We strongly support these provisions of H.R. 12987.
Rondding.
Colema
Assistant Interior
Honorable James T. Lynn
Director, Office of
Management and Budget
Washington, D.C.
2
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
September 28, 1976
Dear Mr. Frey:
This is in response to your request for the CEA's views
on the enrolled bill H. R. 12987, the "Emergency Jobs Programs
Extension Act of 1976". Although we have objections to some
features of the bill, it does serve as a compromise measure
for extending the small-scale CETA title VI program and for
establishing a commission to study unemployment statistics.
We recommend that the President sign the bill.
We would have preferred to limit the CETA PSE jobs to
persons who had long-term unemployment and had exhausted
their unemployment compensation benefits. We feel the bill
offers one-quarter of a loaf -- half of the slots that fall
vacant are to be reserved for persons with moderate unemploy-
ment (15 weeks or more) and from low income families. This
is a step in what we believe is the right direction.
Section (13) which establishes the unemployment statistics
commission permits certain members of the executive and
legislative branches to assist and participate in the hearings,
deliberations and other activities of the commission. This is
contrary to the spirit of establishing the commission -- to
have a group of experts free from political and interest
group pressures examine the quality and relevance of the
employment and unemployment data. This section is likely to
generate increased partisanship at commission hearings and
possibly among commission members.
Sincerely,
Alan Greenspan
Mr. James Frey
Assistant Director for
Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
REVOLUTION
AMERICAN
BICENTENNIAL
1776-1976
DEPARTMENT OF COMMURCE
GENERAL COUNSEL OF THE
UNITED STATES DEPARTMENT OF COMMERCE
UNITED STATES OF AMERICA
Washington, D.C. 20230
Honorable James T. Lynn
Director, Office of Management
and Budget
Washington, D. C. 20503
Attention: Assistant Director for Legislative Reference
Dear Mr. Lynn:
This is in response to your request for the views of this Department
on H.R. 12987, an enrolled enactment,
To authorize appropriations for carrying out Title VI
of the Comprehensive Employment and Training Act
of 1973, and for other purposes, 11
to be cited as the "Emergency Jobs Programs Extension Act of 1976. "
This legislation has two principal objectives: (1) to extend Title VI,
the Emergency Job Programs, of the Comprehensive Employment and
Training Act of 1973 (CETA, 29 U.S.C. 801 et. seq. ), through fiscal
year 1977 and (2) to establish a presidentially appointed National
Commission on Employment and Unemployment Statistics.
A major feature of the reauthorization of Title VI of CETA, which
is administered by the Department of Labor, would be to direct the
focus of new public service jobs on the long-term unemployed and low-
income persons. This would be accomplished, in new sections 607 and
608, by requiring that all new public service jobs (in excess of those
employed on June 30, 1976) must be in a program of projects of no more
than one year in duration and are to be aimed at maintaining average
federally supported wage rates for public service jobholders. Eligibility
for this new program would be limited to persons who have been unem-
ployed for 15 or more weeks or who are receiving welfare assistance.
Fifty percent of replacements for vacancies arising from attrition of
current public service jobholders would be similarly restricted to
persons meeting the new long-term, low-income eligibility requirements.
Section 13 of H.R. 12987 would establish a 9 member presidentially
appointed National Commission on Employment and Unemployment
Statistics with responsibility for examining the procedures, concepts,
REVOLUTION
AMERICAN
BICENTENNIAL
1776-1976
®
IN
- 2 -
and methodology involved in employment and unemployment statistics
and suggesting ways and means of improving them. The Secretaries
of Labor and Commerce, the Commissioner of Labor Statistics, and
the Director of the Bureau of the Census, among other officials, are
directed to assist and participate in the hearings, deliberations, and
other activities of the new Commission on an advisory basis. To
assist in carrying out its responsibilities, the Commission would be
authorized to use available staff from the Departments of Labor and
Commerce, and other appropriate Federal agencies. The Commission
would have to make a report of its findings and recommendations to
the President and the Congress within 18 months after the appointment
of its first five members.
The Department of Commerce would have no objection to approval
by the President of H.R. 12987.
In light of the fact that the proposed Commission on Employment
and Unemployment Statistics would probably depend to a significant
degree on assistance from the Census Bureau, we recommend that
when appropriation requests are developed to support the work of the
Commission, the principal statistical agencies should be consulted in
advance to ensure that such funds as may be necessary to provide
assistance are included in such appropriation requests. The work
of the Commission could be seriously handicapped if the Census
Bureau and other affected agencies are unable, because of resource
limitations, to provide the types of assistance implicit in the
Commission's study mandate.
Sincerely,
OF
THE TREASURY THE
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON. D.C. 20220
1789
SEP 28 1976
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
This letter responds to your request for the views of this Department
on the enrolled enactment of H.R. 12987, "To authorize appropriations for
carrying out title VI of the Comprehensive Employment and Training Act
of 1973, and for other purposes. 11
The enrolled enactment, among other things, would authorize appropriations
to carry out the emergency job programs in title VI of the Comprehensive
Employment and Training Act of 1973 through fiscal year 1977 and amend pro-
visions of that Act relating to allocation of funds thereunder. It would
also establish a nine member National Commission on Employment and Unemploy-
ment Statistics to study that subject and report its findings within 18
months after the appointment of its first five members.
There are several commendable features in the enrolled enactment.
For example, proposed new section 607 would require 50 per centum of job
vacancies in the program to be filled by the long-term unemployed. The
Department also favors examination of the procedures involved in employment
and unemployment statistics with a view to improving such procedures, the
task that would be assigned to the National Commission on Employment and
Unemployment Statistics. However, since H.R. 12987 would continue to
attempt to place primary emphasis in reducing unemployment on public service
jobs and would impose no limitation on the amounts authorized to be
appropriated in proposed section 601, it is Treasury's opinion that the
enrolled enactment's undesirable features outweigh those that are commend-
able.
In the circumstances, the Department would have no objection to a
recommendation that the enrolled enactment not be approved by the
President.
Sincerely yours,
Richard Albrecht
General Counsel
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
SPIND Line STATES
WASHINGTON. D.C. 20503
OCT 1 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 12987 - Emergency Jobs Programs
Extension Act of 1976
Sponsor - Rep. Daniels (D) New Jersey and 3 others
Last Day for Action
October 8, 1976 - Friday
Purpose
Authorizes appropriations of such sums as may be necessary
through fiscal year 1977 for the public service employment
(PSE) program under Title VI of the Comprehensive Employment
and Training Act (CETA) ; amends the PSE provisions of CETA;
changes the way in which unemployment benefits are financed
for former public service jobholders; and establishes a
National Commission on Employment and Unemployment Statistics.
Agency Recommendations
Office of Management and Budget
Approval
Department of Labor
Approval
Department of the Interior
Approval
Council of Economic Advisers
Approval
Department of Commerce
No objection
Department of Treasury
No objection to
disapproval
Discussion
In December 1974, Title VI--Emergency Job Programs--was
added to the Comprehensive Employment and Training Act of
1973 (CETA) as a temporary countercyclical program. Title
VI authorizes a public service employment (PSE) program in
addition to the limited PSE program provided for in Title
II of CETA. There are now approximately 260,000 persons
employed under the emergency Title VI program and 50,000
employed under the permanent Title II program.
Calendar No. 839
94TH CONGRESS
SENATE
REPORT
2d Session
No. 94-883
EMERGENCY JOBS PROGRAMS EXTENSION ACT OF 1976
MAY 14, 1976.-Ordered to be printed
Filed under the authority of the order of the Senate May 13, 1976
Mr. NELSON, from the Committee on Labor and Public Welfare,
submitted the following
REPORT
[To accompany H.R. 12987]
The Committee on Labor and Public Welfare, to which was referred
the bill (H.R. 12987) to authorize appropriations for fiscal year 1976,
and for the period beginning July 1, 1976, and ending September 30,
1976, for carrying out title VI of the Comprehensive Employment and
Training Act of 1973, and for other purposes, having considered the
same, reports favorably thereon with amendments and recommends
that the bill as amended do pass.
INTRODUCTION
The proposed "Emergency Jobs Programs Extension of 1976" which
the Committee on Labor and Public Welfare is reporting to the Sen-
ate is an amended version of H.R. 12987, the title of which is amended
(in view of the proposed extension of the legislation through fiscal
year 1977) to read: "An Act to authorize appropriations for carrying
out title VI of the Comprehensive Employment and Training Act of
1973, and for other purposes."
The Committee proposes to amend H.R. 12987 by striking out the
text of the bill as passed by the House of Representatives and insert-
ing in lieu thereof the following substitute amendment:
That this Act may be cited as the "Emergency Jobs Pro-
grams Extension Act of 1976".
SEC. 2. Title VI of the Comprehensive Employment and
Training Act of 1973 is amended by striking out section 601
and inserting in lieu thereof the following:
"AUTHORIZATION OF APPROPRIATIONS
"SEC. 601. There are authorized to be appropriated such
sums as may be necessary for fiscal year 1976, and for the
period beginning July 1, 1976, and ending September 30,
1976, and for fiscal year 1977, for carrying out the provisions
of this title.".
(Star Print) 57-010 0
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3
SEC. 3. (a) Notwithstanding the provisions of sections
creation approaches to public service employment programs."
(b), and 208(a) (7) of the Comprehensive Em-
SEC. 5. (a) Title VI of the Comprehensive Employment
ployment and Training Act of 1973, not less than 85 per
and Training Act of 1973, as amended, is further amended
centum of funds allocated in accordance with and subject to
by adding at the end thereof the following new sections:
the provisions of such Act which are used by an eligible appli-
cant (as defined in section 602(e) of such Act) for public
"EMPLOYMENT PROJECTS FOR LONG-TERM, LOW-INCOME
service employment programs under title II and title VI of
UNEMPLOYED PERSONS
such Act shall be expended only for wages and employment
benefits to persons employed in public service jobs pursuant
"SEC. 607. (a) Each prime sponsor shall, in accordance with
to such titles and the remainder of such funds may be used
regulations which the Secretary shall prescribe, utilize such
for administrative costs, including rental costs (within such
portion of the allocation which it receives under this title,
reasonable limitations as the Secretary of Labor may pre-
out of appropriations for fiscal year 1977, as may be neces-
scribe with respect to the rental of space), and to obtain
sary to enable the prime sponsor to sustain throughout such
necessary supplies, equipment, and materials.
(b) Financial records of a prime sponsor relating to pub-
fiscal year public service jobholders supported under this
lic service employment programs assisted under the Compre-
title during fiscal year 1976.
hensive Employment and Training Act of 1973, and records
"(b) The amount of each prime sponsor's allocation under
of the names, addresses, positions, and salaries of all persons
this title remaining after funds are utilized for the purpose
employed in public service jobs assisted under such Act shall
described in subsection (a) of this section shall be used to
be maintained and made available to the public.
provide public service jobs for eligible unemployed persons
SEC. 4. (a) With respect to appropriations made by the
(as described in subsection (c) of this section) in projects
Emergency Supplemental Appropriations Act of 1976, Pub-
and activities carried out by project applicants (as defined
lic Law 94-266, for the purpose of carrying out activities
in section 701 (a) (15) of this Act). Such projects and jobs
authorized by title II of the Comprehensive Employment
shall not exceed twelve months in duration and shall provide
and Training Act of 1973-
employment consistent with the aim of maintaining average
(1) notwithstanding any other provisions of law,
federally supported wage rates for public service jobholders
funds made available under section 202(b) of such Act
(adjusted on a regional and area basis) as set forth under
may be used in any areas qualifying under title VI of
section 209 (b) of this Act.
such Act to provide a continuation of public service em-
"(c) In filling public service jobs with financial assistance
ployment activities under both title II and title VI of
available for the purpose described in subsection (b) of this
such Act; and
section, each prime sponsor shall determine that any person
(2) in order to enable persons who are employed in
employed in any such public service job (1) is an individual-
public service jobs which are financially assisted under
(A) who has been receiving unemployment compen-
title VI of such Act to be transferred to jobs financially
sation for fifteen or more weeks;
assisted under title II of such Act, the Secretary of Labor
"(B) who is ineligible for such benefits and has been
is authorized to waive the provision of section 205(a)
unemployed for fifteen or more weeks;
of such Act requiring a thirty-day period of unemploy-
"(C) who has exhausted unemployment compensation
ment.
(b) Subsection (b) of section 603 of the Comprehensive
benefits; or
Employment and Training Act of 1973 is amended by adding
(D) who is, or whose family is, receiving aid to fami-
at the end of such subsection the following new sentences:
lies with dependent children provided under a State plan
"In distributing funds available for the discretionary use of
approved under part A of title IV of the Social Se-
the Secretary of Labor under this subsection, the Secretary is
curity Act;
authorized to utilize such funds to assure a continuation of
and (2) is not a member of a household which has a gross family
public service employment activities previously supported
income, exclusive of wages received by such individual under this
under this Act. In distributing such funds under this subsec-
title, exceeding 70 per centum of the lower living standard budget.
tion to prime sponsors, the Secretary shall base allocations
upon the public service employment activities sustained
(d) For purposes of this section, the term 'lower living
within the jurisdiction of each unit of general local govern-
standard budget' means that income level (adjusted for
ment within the area served by each such prime sponsor in
regional and metropolitan and urban and rural differences
accordance with subsection (c) of this section. The Secre-
and family size) determined annually by the Bureau of
tary of Labor is authorized to provide financial assistance, out
Labor Statistics of the Department of Labor which is
of any funds remaining under this subsection, for the purpose
referred to by such Department as the 'lower-living standard
of demonstrating the feasibility of new and innovative job
budget'.
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"(e) In filling public service jobs, each prime sponsor shall
it has first considered any comments and recommendations
take steps to insure that funds provided in accordance with
made by the prime sponsor's planning council and unless it
subsection (b) shall be equitably allocated for jobs among
has afforded an opportunity for a hearing prior to final dis-
the categories of eligible persons described in subsection (c)
approval of any such application."
in light of the composition of the population of unemployed
(b) The last sentence of section 606 of such Act is
eligible persons served by the prime sponsor.
amended to read as follows: "In reallocating any such funds,
(f) In providing public service jobs and determining
the Secretary shall give priority first to other areas within
hours of work for eligible persons with financial assistance
the same State and then to areas within other States, taking
provided in accordance with subsection (b), each prime
into account the number of eligible unemployed individuals
sponsor shall take into account the household support obli-
(as described in section 607 (c)) in such areas."
SEC. 6. Title II of the Emergency Jobs and Unemployment
gations of the men and women applying for such jobs, and
shall give special consideration to such alternative working
Assistance Act of 1974 is amended by adding at the end there-
arrangements as flexible hours of work, shared time, and
of the following new section:
part-time jobs, for eligible persons, particularly for parents
"SPECIAL PROVISIONS
of young children and for older persons.
(g) The Secretary, through the affiliated State employ-
"SEC. 211. (a) DEFINITIONS.-For purposes of this section-
ment scurity agency, shall take steps to assure that each
"(1) 'State' means the States of the United States, the
recipient of unemployment compensation benefits shall,
District of Columbia, the Commonwealth of Puerto Rico,
upon the twelfth week of continuing to receive such benefits,
and the Virgin Islands:
be notified of the potential eligibility of such recipient for a
(2) 'compensation' means cash benefits payable to in-
public service job established with financial assistance pro-
dividuals with respect to their unemployment, and
vided in accordance with subsection (b) but such notifi-
includes 'regular compensation," 'additional compensa-
cation shall clearly state that such recipient continues to be
tion,' and 'extended compensation' as defined in section
eligible for receipt of such benefits and that such notification
205 of the Federal-State Extended Unemployment
is designed only to inform, and in no way to coerce such re-
Compensation Act of 1970;
cipient, with respect to the potential availability of such jobs.
(3) 'public service job' means any public service job
"(h) -No funds under this Act may be used to provide
funded with assistance provided under the Comprehen-
public services, through a private or nonprofit organization
sive Employment and Training Act of 1973;
or institution, which are customarily provided by a State, a
"(4) 'public service wages' means remuneration for
political subdivision, or a local educational agency in the area
services performed in a public service job;
served by the project.
"(5) 'base period' means the base period as determined
under the State law;
APPROVAL OF PROJECTS
"(6) 'Secretary' means the Secretary of Labor;
(7) 'State agency' means the agency of the State or
"SEC. 608. (a) In order for a project application submitted
by a project applicant to be approved by the prime sponsor
political subdivision which administers the State law;
and
for financial assistance provided in accordance with sub-
section (b) of section 607, copies of such application shall
(8) 'State law' means the unemployment compen-
sation law of a State which has been approved by the
have been submitted at the time of such application to the
Secretary of Labor under section 3304 (a) of the Internal
prime sponsor's planning council established under section
Revenue Code of 1954 ((26 U.S.C. 3304 the unem-
104, for the purpose of affording such council an opportunity
ployment compensation plan of a political subdivision of
to submit comments and recommendations with respect to
a State, and, with respect to the Virgin Islands, the un-
that application to the prime sponsor. No member of a prime
employment compensation law of the Virgin Islands.
sponsor's planning council shall participate in the delibera-
"(b) PAYMENTS TO STATES.-(1) Each State and political
tions of such council with respect to any project in which that
subdivision shall be paid by the United States, with respect
member (or any organization with which that member is as-
to each individual whose base period wages include public
sociated) has a direct interest, or cast a vote on any matter in
service wages, an amount which shall bear the same ratio
connection with such a project.
to the total amount of compensation paid to the individual
"(b) Consistent with procedures established by the prime
with respect to weeks of unemployment which begin on and
sponsor in accordance with regulations which the Secretary
after January 1. 1976, as the amount of the individual's
shall prescribe, the prime sponsor shall not disapprove a
public wages in the base period with respect to the current
project application submitted by a project applicant unless
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7
benefit year (or most recent benefit year if there is no current
SEC. 7. Section 205 (c) (24) of the Comprehensive Employ-
benefit year) bears to the total base period wages used in
ment and Training Act of 1973 is amended by striking out
the calculation of the individual's rights to regular
"job category" in both places where that term occurs in such
compensation.
clause and inserting in lieu thereof "promotional line".
"(2) Each State and political subdivision shall be paid
SEC. 8. (a) Section 602(e) of the Comprehensive Employ-
either in advance or by way of reimbursement, as may be
ment and Training Act of 1973 is amended by striking out
determined by the Secretary, the sum that the Secretary esti-
"Indian tribes on Federal or State reservations" and insert-
mates is payable to the State or political subdivision under
ing in lieu thereof "Indian tribes, bands, and groups qualified
this section for each calendar month. The sum shall be re-
under section 302 (c) (1) of this Act".
duced or increased by the amount which the Secretary finds
(b) Section 603(a) of the Comprehensive Employment
that his estimate for an earlier calendar month was greater or
and Training Act of 1973 is amended by redesignating
less than the sum which should have been paid to the State or
paragraphs (1) and (2) thereof as paragraphs (2) and (3),
political subdivision. Estimates shall be made on the basis of
respectively, and by inserting immediately after "(a)" the
reports made by the State agency to the Secretary as
following: (1) The Secretary shall reserve an amount equal
prescribed by the Secretary.
to not less than 4 per centum of the amounts appropriated
"(3) The Secretary shall from time to time certify to the
under section 601 for any fiscal year to enable Indian tribes,
Secretary of the Treasury for payment to each State or politi-
bands, and groups which are designated as eligible applicants
cal subdivision the sums payable under this section. The Sec-
under this title to carry out public service employment
retary of the Treasury, prior to audit or settlement by the
programs.".
General Accounting Office, shall make payment in accordance
(c) Section 603 (a) (2) of such Act, as redesignated by sub-
with such certification, from the funds appropriated for the
section (b) of this section, is amended by inserting after "per
purposes of title II of the Emergency Jobs and Unemploy-
centum" the following: "of the remainder".
ment Assistance Act of 1974. Payment to a State shall be
SEC. 9. (a) The Secretary of Labor shall provide financial
made by crediting the payment to the State's account in the
assistance under the Comprehensive Employment and Train-
unemployment trust fund.
ing Act of 1973 and shall assure that prime sponsors will
(c) REPAYMENT OF EMPLOYERS.-Notwithstanding the
provide financial assistance under such Act, for employment
provisions of any other law-
and training programs to be carried out by community-based
"(1) a State or political subdivision shall repay to an
organizations which have demonstrated their effectiveness in
employer liable for making reimbursements to the un-
job creation and in placing disadvantaged persons in jobs
employment fund of the State or political subdivision the
with private industry and business or which provide full-time
amount equal to the amount by which the sums paid to
or part-time work for older persons and others for whom job
the State or political subdivision under subsection (b)
opportunities are lacking. Emphasis shall be placed on the
of this section are duplicative of the employer's reim-
utilization of public works projects and other Federal finan-
bursements to the unemployment fund; and shall not
cial assistance to local public agencies to increase the employ-
charge a reimbursing employer the amounts which are
ability of unemployed individuals and provide opportunities
subject to payment by the United States under subsection
for industry to create additional jobs for the unemployed in
(b) of this section; and
rural and urban communities.
(2) a State or political subdivision shall repay to an
(b) The Secretary of Labor shall seek the cooperation of
employer liable for contributions with respect to public
the heads of other Federal agencies responsible for adminis-
service jobs and public service wages, the total amount of
tering financial assistance programs having significant job-
the contributions paid by the employer into the unem-
creating impact in order to assure that, to the maximum
ployment fund of the State or political subdivision with
extent consistent with the laws authorizing such programs,
respect to public service wages paid for services per-
special consideration shall be given to the utilization of
formed in public service jobs on and after January 1,
community-based organizations for the provision of com-
1976, and shall not take into account, for the purposes
prehensive employment services and job opportunities for
of computing contribution rates for the employer, the
unemployed persons. Such financial assistance programs shall
compensation with respect to which payment is made
include, but not be limited to, the State and Local Fiscal
under subsection (b) of this section, or the employment,
Assistance Act of 1972, title I of the Housing and Community
wages, payrolls, or separations pertaining to such
Development Act of 1974, and any programs providing Fed-
compensation.".
eral financial assistance for public works and economic de-
(b) The amendments made by this section shall take effect
velopment, and rehabilitation projects designed to improve
on October 1, 1976, with respect to compensation paid for
the Nation's railroads.
weeks of unemployment beginning after December 31, 1975.
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9
(c) Notwithstanding any other provision of law, funds
(1) striking out "by this Act" after "amended"; and
allocated by a prime sponsor or an Indian tribe for the
(2) inserting at the end of such subsection the follow-
employment of individuals under the Comprehensive Em-
ing new sentence: "They shall also report to such com-
ployment and Training Act of 1973 may be expended in
mittees on the same subjects not later than ninety days
conjunction with funds from any other public or private
after the date of enactment of the Emergency Jobs Pro-
source, but funds allocated under such Act may only be
grams Extension Act of 1976.".
expended in accordance with the requirements of such Act.
(b) Title I of the Comprehensive Employment and Train-
(d) The Secretary of Labor is authorized to undertake
ing Act of 1973 is amended by-
projects (either directly or by grant or contract) for the pur-
(1) inserting at the end of section 105 (a) (3) the fol-
pose of demonstrating the feasibility of providing relocation
lowing "and (E) provides arrangements to promote max-
assistance to unemployed workers residing in areas of sub-
imum use of apprenticeship or other on-job training op-
stantial unemployment who would otherwise be eligible for
portunities pursuant to section 1787 of title 38, United
public service employment under the Comprehensive Employ-
States Code;"; and
ment and Training Act of 1973. Such assistance shall be in
(2) by striking out in section 106(b) (5) "provide
such form and amount as the Secretary deems appropriate
special- emphasis" and inserting in lieu thereof "take
for demonstration purposes, except that he shall use as a gen-
affirmative action".
eral guideline the form and amount of relocation assistance
SEC. 13. (a) (1) The Congress finds and declares that-
available under title II of the Trade Act of 1974.
(A) the reliable and comprehensive measurement of
SEC. 10. Notwithstanding any other provision of law, em-
employment and unemployment is vital to assessing the
ployment and training services furnished under the Compre-
nation's economic well-being and the utilization of its
hensive Employment and Training Act of 1973 in connection
work force, and is an important determinant of public
with weatherization projects authorized under section 222
policies toward job creation, education, training, assist-
(a) (12) of the Economic Opportunity Act of 1964 may in-
ance for the jobless, and other labor market programs;
clude work on such projects for the near poor, including
(B) the allocation of billions of dollars of Federal
families having incomes which do not exceed 125 per centum
funds on the basis of unemployment data is increasing,
of the poverty line as established by section 625 of the Eco-
making even more crucial the timely, accurate, and uni-
nomic Opportunity Act of 1964.
form measurement of the labor force;
SEC. 11. (a) Section 605 of the Comprehensive Employ-
(C) the formulation of public policies to promote the
ment and Training Act of 1973 is amended by inserting after
most effective use of our human resources is hindered by
"projects and activities" a comma and the following: "in-
inadequate information on the utilization and effect of
cluding projects and activities to be carried out by project
education and training programs;
applicants as defined in section 701 (a) (15) of this Act,".
(D) in order for governmental and private sector pol-
(b) Section 701 (a) of such Act is amended by adding at
icy decisions to have maximum effect upon reducing un-
the end thereof the following new paragraph:
employment and strengthening the labor force, and ac-
(15) 'project applicants' includes States and agen-
curate and precise system for measuring employment
cies thereof, units of general local government and agen-
and unemployment and its impacts on particular seg-
cies thereof, special purpose political subdivisions hav-
ments of the potential work force is essential;
ing the power to levy taxes and spend funds or serving
(E) the current method of data collection and the
such special purpose within an area served by one or
form of its presentation, at national, regional, and sub-
more units of general local government, local educational
regional levels, may not fully reflect unemployment and
agencies as defined in section 801 (f) of the Elementary
employment trends, and may produce incomplete and,
and Secondary Education Act of 1965, institutions of
therefore, misleading conclusions, thus impairing the
higher education as defined in section 1201 (a) of the
validity and utility of this critical economic indicator;
Higher Education Act of 1965. community-based organ-
(F) it is critical to retain public confidence in the pro-
izations as defined in paragraph (1) of this subsection,
cedures, concepts, and methodology of collecting, analyz-
community development corporations, nonprofit groups
ing, and presenting employment and unemployment sta-
and organizations serving Indians or Native Hawaiians,
tistics; and
and other nonprofit private organizations or institutions
(G) objectivity is a necessity in considering reform of
engaged in public service.".
statistical processes.
SEC. 12. (a) Section 104(b) of the Emergency Jobs and
(2) It is the purpose of this section to establish a National
Unemployment Assistance Act of 1974 (Public Law 93-567;
Commission on Employment and Unemployment Statistics
88 Stat. 1848) is amended by-
to have responsibility for examining the procedures, concepts,
S. Rept. 94-883 O 2
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and methodology involved in employment and unemploy-
the Department of Commerce, and such other appropriate
ment statistics and suggesting ways and means of improving
Federal agencies as may be available to assist the Commis-
them.
sion in carrying out its responsibilities.
(b) (1) There shall be established a National Commission
(5) The Commission shall determine its own internal pro-
on Employment and Unemployment Statistics (hereinafter
cedures, including the constituting of a quorum.
referred to as the "Commission") which shall consist of nine
(6) The Commission is authorized to accept and utilize
members appointed by the President, by and with the advice
voluntary and uncompensated services notwithstanding the
and consent of the Senate. Seven of the members shall be
provisions of section 665 (b) of title 31, United States Code.
selected on the basis of their knowledge of and experience in
(7) Members of the Commission who are not officers or
the procedures, methodology, or use of employment and un-
employees of the Federal Government shall be paid compen-
employment statistics, and shall be broadly representative of
sation at a rate of not to exceed the per diem equivalent of
labor, business and finance, education and training, econom-
the rate for GS-18 of the General Schedule under section
ics and statistics, and State and local government. Two of
5332 of title 5, United States Code, when engaged in the work
the members shall be selected from the general public. The
of the Commission, including traveltime; and, while serving
membership of the Commission shall be generally representa-
away from their homes or regular places of business, shall
tive of significant segments of the labor force, including
be allowed travel expenses including per diem in lieu of sub-
women and minority groups. Any vacancy in the Commission
sistence, in the same manner as such expenses are authorized
shall not affect its powers as long as there continue to be at
by law (5 U.S.C. 5703) for persons in the Government serv-
least five members, and any such vacancy may be filled in
ice employed intermittently.
the same manner as the original appointment is made.
(c) The Commission shall-
(2) The Secretary of Labor, the Secretary of Commerce,
(1) identify the needs of the nation for labor force
the Commissioner of Labor Statistics, the Director of the
statistics and assess the extent to which current proce-
Bureau of the Census, the Director of the Office of Manage-
dures, concepts, and methodology in the collection, an-
ment and Budget, the Chairman of the National Commission
alysis, and presentation of such statistics constitutes a
for Manpower Policy, and a majority and a minority mem-
comprehensive, reliable, timely and consistent system of
ber each of the Committee on Labor and Public Welfare of
measuring employment and unemployment and indicat-
the Senate and of the Committee on Education and Labor
ing trends therein; and
of the House of Representatives, or in each case a designee,
(2) conduct or provide (through contract with insti-
shall assist and participate in the hearings, deliberations, and
tutions, organizations, and individuals, or appropriate
other activities of the Commission on an advisory basis.
Federal or State agencies, or otherwise) for such studies,
(3) The President shall designate a Chairman from
hearings, research, or other activities as it deems nec-
among the appointed members of the Commission.
essary to enable it to formulate appropriate recommen-
(4) The Chairman, with the concurrence of the Commis-
dations. The Commission or, on the authorization of the
sion, shall appoint an executive director, who shall be the
Commission, any subcommittee or members thereof, may,
chief executive officer of the Commission and shall perform
for the purposes of carrying out the provisions of this
such duties as are prescribed by the Chairman or the Com-
section, hold such hearings, take such testimony, and sit
mission. The executive director may appoint, with the con-
and act at such times and places as the Commission deems
currence of the Chairman, such professional, technical, and
advisable. Any member authorized by the Commission
clerical staff as are necessary to carry out the provisions of
may administer oaths or affirmations to witnesses ap-
this section. The Executive Director and staff shall be ap-
pearing before the Commission or any subcommittee or
pointed without regard to the provisions of title 5, United
members thereof.
States Code, governing appointments to the competitive serv-
(d) (1) The Commission shall make a report of its findings
ice, and without regard to the provisions of chapter 51 and
and recommendations to the President and the Congress
subchapter III of chapter 53 of such title relating to classi-
within eighteen months after the date of appointment of
fication and General Schedule pay rates, but at rates not in
five members of the Commission.
excess of the maximum rate of GS-18 of the General Sched-
(2) In preparing its report, the Commission shall con-
ule under section 5332 of such title. The executive director,
sider the following:
with the concurrence of the Chairman, may obtain temporary
(A) The methodology of collection of employment and
and intermittent services of experts and consultants in ac-
unemployment data at all levels, including national,
cordance with the provisions of section 3109 of title 5, United
regional, State, and local statistics.
States Code. The Commission may utilize such staff, with
(B) The methodology of analysis of such data, includ-
or without reimbursement, from the Department of Labor,
ing its relevance and application.
12
13
(C) The methodology of presentation of employment
each affected executive agency and, within six months after
and unemployment statistics, including the dissemina-
the report's submission, shall make an interim report to the
tion, current utilization, and application of such
Congress on-
statistics.
(1) the desirability, feasibility, and cost of implement-
(D) Alternative methods of such collection, analysis,
ing each of the Commission's recommendations, and the
and presentation.
actions taken or planned with respect to their imple-
(E) The need for additional special statistical surveys
mentation; and
(including longitudinal studies) and reports on a con-
(2) recommendations with respect to any legislation
tinuing basis.
proposed by the Commission, the need for any alternative
(F) The need for additional data and analysis on
or additional legislation to implement the Commission's
job vacancies, job turnover, job matching, discouraged
recommendations, and any other proposals to strengthen
workers, part-time workers, youth, minorities, women,
and improve the measurement of employment and
and other labor force participants.
unemployment.
(G) Accuracy and uniformity of seasonal adjustments
Within two years after submission of the Commission's
in all categories of labor force statistics.
final report, the Secretary shall submit a final report to the
(H) Methods of achieving current, accurate, and uni-
Congress detailing the actions taken with respect to the rec-
form employment and unemployment statistics on a
ommendations of the Commission, together with any further
State and local basis, including their use as a determinant
recommendations deemed appropriate.
of the allocation of Federal assistance.
(f) (1) Each department, agency, and instrumentality of
(I) The need for, and methods to obtain, data relating
the Federal Government is authorized and directed to coop-
employment status and earnings, economic hardship, and
erate fully with the Commission in furnishing appropriate
family support obligations.
information to assist the Commission in carrying out its func-
(J) The extent to which employment and earnings
tions under this section.
data assist in determining the impact of public programs
(2) The head of each department, agency, or instrumen-
and policies upon persons who are economically disad-
tality of the Federal Government is authorized to provide
vantaged, unemployed, or underemployed.
such support and services to the Commission, upon request
(K) The availability of and need for periodic informa-
of the Chairman, as may be agreed between the head of the
tion on education and training enrollments and com-
department, agency, or instrumentality and the Chairman.
pletions in the public and private sectors.
(g) The Commission shall cease to exist 180 days after sub-
(L) Statistical indicators of the relationship between
mission of its final report as required under subsection
education and training and subsequent employment,
(d) (1) of this section.
earnings, and unemployment experience.
(h) (1) There are authorized to be appropriated such sums
(M) The value and usefulness of other statistics re-
as may be necessary to carry out the provisions of this section.
garding employment and unemployment, such as those
(2) Notwithstanding any other provisions of law, any
obtained through operation of the unemployment insur-
funds appropriated to carry out this section which are not
ance system.
obligated prior to the end of the fiscal year for which such
(N) The availability of and need for current and
funds were appropriated shall remain available for obliga-
projected occupational information, particularly on a
tion during the succeeding fiscal year.
local basis, to assist youths and adults in making train-
ing, education, and career choices.
HEARINGS
(O) Such other matters as the Commission deems ap-
propriate or necessary. including such matters as are
The Subcommittee on Employment, Poverty, and Migratory Labor
suggested by the President or by the Congress that the
received testimony on similar legislation to extend the public service
Commission deems appropriate.
employment program under title VI of the Comprehensive Employ-
(3) The Commission's report shall contain its findings and
ment and Training Act (including S. 1695, introduced by Senator
recommendations, including a feasible schedule for their im-
Nelson) at hearings on April 5, 1976, and on May 19 and 20, and
plementation, cost estimates, and any appropriate draft reg-
June 4 and 6, 1975.
BACKGROUND
ulations and legislation to implement such recommendations.
(4) The Commission mav make such interim reports or
Under the Comprehensive Employment and Training Act (CETA),
recommendations as it may deem desirable.
approximately 320,000 previously unemployed persons have been
(e) Upon submission of the Commission's final report, the
hired to meet locally-determined public service needs in communities
Secretary of Labor shall take steps to ascertain the views of
throughout the Nation. The programs are administered by some 430
14
15
State and local governmental prime sponsors (including States, units
including those who have exhausted unemployment benefits, or are
of general local government, and combinations thereof).
receiving unemployment compensation or public assistance, and who
About 260,000 public service jobs are funded under title VI of
are members of low-income households.
CETA, which has provided funds to all areas of the Nation since the
4. The Committee bill provides that States and political subdivisions
Emergency Jobs and Unemployment Assistance Act of 1974 (Public
shall be reimbursed under the Special Unemployment Assistance pro-
Law 93-567) was signed by President Ford on December 31, 1974.
gram for the costs of providing unemployment benefits to workers who
Another 56,000 jobs are provided only to areas of substantial un-
have been employed in public service jobs pursuant to the Compre-
employment having 61/2 percent or higher unemployment rates under
hensive Employment and Training Act. Without this provision, title
title II of the Comprehensive Employment and Training Act enacted
VI funds intended for jobs would have to be used in several states to
in 1973. The title II program has a regular annual funding level of
reimburse the State unemployment insurance funds for unemployment
$400 million. It is designed to assist areas which have chronically
payments. In other States such payments generally are from the Spe-
high unemployment even in times of economic prosperity.
cial Unemployment Assistance program.
When unemployment nationally is at high levels-far in excess of 5
5. The Committee bill provides that the Secretary of Labor shall
percent-Congress has twice in recent years passed emergency public
provide for assistance for community-based organizations of demons-
service employment legislation which distributes funds throughout
trated effectiveness. In addition, the Secretary shall seek cooperation
all areas of the Nation, with a higher proportion of such funds going
with programs of other Federal agencies affecting employment.
to those areas having higher rates of unemployment. In July of 1971,
6. The Committee bill authorizes prime sponsors, in expending
President Nixon signed the Emergency Employment Act of 1971 dur-
funds appropriated in the Emergency Supplemental Appropriations
ing a recessionary period. In 1974, President Ford signed the Emer-
Act of 1976 (P.L. 94-266), to use the funds SO as to prevent layoff
gency Jobs Program as increasing unemployment again faced the
of public service employees under both Title II and Title VI of the
Nation. This last period of extended national unemployment has not
Act. The bill authorizes prime sponsors (1) to use funds allocated from
yet ended, with the Nation's unemployment rate remaining at 7.5
the Secretary of Labor's discretionary 20 percent of the appropriation
percent for the last two months (March and April 1976).
in areas outside the Title II areas having 6.5 percent or higher unem-
ployment and (2) to transfer persons to Title II, even though the pre-
HOUSE-PASSED BILL
vious source of funding for that person's job was Title VI, SO that no
30-day period of layoff is required in the case of a person transferred
H.R. 12987, which passed the House of Representatives on April 30
from one Title to another in the same job. The Senate Appropriations
by a vote of 287-42, authorizes the appropriation of such sums as may
Committee report approved of this use of funds under P.L. 94-266 in
be necessary to carry out the public service employment program under
order to avoid layoffs of Title VI jobholders residing outside of areas
title VI of the Comprehensive Employment and Training Act through
that are eligible for Title II funds; the language in this bill protects
the transition quarter ending September 30, 1976. The House-passed
the prime sponsors by providing statutory authority for implementing
bill also authorizes not to exceed 15 percent of each prime sponsor's
the intent of Congress in making the appropriation.
allocation for public service employment programs to be used for
7. The Committee bill makes clear that title VI discretionary funds
necessary supplies and equipment and administrative expenses.
may be used for continuing the employment of persons previously em-
The bill which this committee is reporting to the Senate retains
ployed in public service jobs, specifying that any allocations for such
those House-passed provisions, but it extends the appropriations au-
purpose shall be based on the needs of each unit of general local govern-
thorization of such sums as may be necessary for title VI to cover the
ment eligible to be a prime sponsor even though part of a consortium.
fiscal year ending September 30, 1977.
8. The Committee bill provides for a set-aside of four percent of Title
SUMMARY OF COMMITTEE-REPORTED BILL
VI funds to be provided to Indian tribes, bands, and groups for public
service employment programs.
1. The Committee-reported bill extends the public service jobs pro-
9. The Committee bill includes conforming amendments regarding
veterans employment and training assistance.
gram under title VI of CETA by authorizing the appropriation of
10. The Committee bill provides for establishment of a National
such sums as may be necessary through fiscal year 1977. (H.R. 12987,
which passed the House of Representatives on April 30 by a vote of
Commission on Employment and Unemployment Statistics.
287-42, extended the title VI program through September 30, 1976,
EXTENSION OF EMERGENCY JOBS PROGRAM
the end of the transition quarter.)
2. The Committee bill, like the House-passed bill, authorizes not
THE DIFFERENCE BETWEEN TITLE II AND TITLE VI
to exceed 15 percent of funds to be used for necessary supplies and
equipment and administrative expenses.
Public service employment under CETA is divided into two parts:
3. The Committee bill provides that jobs created above the current
title II and title VI. Of the $2.6 billion now being spent annually for
level will be in community employment projects for the long-term, low-
public service jobs, $2.2 billion of that total (or 85%) is spent for jobs
income unemployed who have been unemployed for 15 or more weeks,
funded under title VI. Title VI was enacted in December of 1974 as a
16
17
response to dramatic increases in the national unemployment rate.
(D) who are ineligible for unemployment compensation bene-
Title II, on the one hand, was enacted in December of 1973 during
fits but who have been unemployed for 15 or more weeks.
a period of relatively low national unemployment and was designed to
Such an unemployed person would nevertheless still not be eligible
deal with the kind of chronic, high unemployment that persists in
for a public service job if income of other family members exceeds
some areas in good and bad times, particularly in the Nation's rural
70 percent of the lower living standard budget. (The lower living
areas and inner cities. Title VI of CETA, on the other hand, was en-
standard budget for an urban family of four persons, announced by
acted when widespread national joblessness was on the rise in 1974 and
the Bureau of Labor Statistics on May 5, 1976, was $9,588. Seventy
1975.
percent thereof would be $6,712.)
Because they were designed for different purposes, the two pro-
Since the additional jobs under this bill would be targeted on the
grams have different characteristics and requirements. In the first
most needy of the unemployed, many of whom are receiving public
place, title II programs operate only in areas which have unemploy-
assistance or unemployment compensation payments, substantial off-
ment rates in excess of 6.5 percent for 3 consecutive months-defined
setting savings in these income security programs would reduce the
as "areas of substantial unemployment." These areas are determined
net cost of the new jobs. In addition, Federal, State and local tax
annually, and a new determination must be made.
revenues would be increased as households move from the tax exempt
The record high levels for unemployment experience over the last
support of public assistance or unemployment compensation to the
year and a half resulted in a great many additional areas qualifying
support of a taxable income, and as the economy responds to the
last year for Title II funds. As unemployment declines, many of these
stimulus of an expanded workforce in the community.
areas will cease to qualify as "areas of substantial unemployment,"
These additional jobs and funds would be utilized for projects and
and will no longer be eligible for Title II funds, even though unem-
jobs of no longer than one year's duration, at an average cost per job
ployment therein may hover near the 6.5 percent mark for many
of $7800 per year.
more months.
Approval of projects by the prime sponsor shall be made only after
Title VI funds, however, are countercyclical in purpose and in-
each application has been submitted to the prime sponsor's planning
tended to combat the severe unemployment that became pervasive
council and the council's recommendations have been considered, and
throughout the Nation as a result of the recession. These funds are
opportunity for a hearing shall be afforded prior to disapproving an
distributed to all areas of the country, whatever the rate of unemploy-
ment in any area, although areas with exceptionally high unemploy-
application. The Committee-reported bill targets the new public service jobs
ment rates receive substantially more funds than those with lower
on individuals with low family income-below about $6700 in the
rates.
case of a family of four-who have been unemployed for at least 15
That the Title VI program is still needed cannot be seriously
weeks or are receiving welfare benefits.
questioned, in light of the recent leveling off of the national unem-
Under the Congressional Budget Resolution's targets, there may be
ployment rate at 7.5 percent, where it has remained for two con-
an increase in public service employment over the number of public
secutive months. This is one full percentage point higher than the
service jobs provided during fiscal year 1976. The Committee recog-
November 1974 national unemployment rate, which prompted enact-
nizes that those most in need of employment and income should be
ment of Title VI.
offered the opportunity for new public service employment positions.
The committee believes, therefore, that it is necessary to extend the
Therefore, all jobs, over and above the level necessary to sustain cur-
title VI authorization.
rent public service jobs, have been targeted to these groups.
In addition, the Committee estimates that, taking into account the
The proposed legislation includes provisions calling on prime spon-
targets established in the First Concurrent Resolution on the Budget
sors to emphasize, in the provision of these new jobs, the needs of
for fiscal 1977, a substantially expanded total of 520,000 jobs could be
persons with household support obligations and the needs of certain
provided under the authority of this legislation in Title VI positions.
persons, such as older persons or parents of young children, for flexible
Of this number, 260,000 would be new jobs.
working hours.
A basic purpose of the Committee bill's provision is to attempt to
EMPLOYMENT PROJECTS FOR LONG-TERM, Low-INCOME
distribute a limited number of jobs-in view of the 7 million in-
UNEMPLOYED PERSONS
dividuals officially counted as unemployed-among those whose finan-
cial needs for those jobs is the greatest and among those who are
Under the Committee bill, eligibility for public service jobs, above
receiving substantial federal, State and local cash payments either
the current level of 316,000, would be restricted to those unemployed
from unemployment compensation or public assistance. It makes less
persons-
sense to continue to provide cash payments to individuals who are not
(A) who have been receiving unemployment compensation for
working than to find productive jobs in our communities.
15 or more weeks;
(B) who are receiving AFDC;
(C) who have exhausted unemployment compensation benefits;
or
S. Rept. 94-883 o 3
18
19
No requirements are enumerated as to the priority of one group of
According to official unemployment statistics, which fail to tell the
long-term unemployed eligible persons over another. It is the re-
full story, we have 7,136,000 unemployed persons in this richest of
sponsibility of prime sponsors to ensure that the jobs are equitably
all nations. Of these, 2,639,000 persons are unemployed heads of
allocated in light of the population of the categories of eligible un-
households. The household head unemployment rate of 4.9 percent
employed persons within the prime sponsor's area. However, it is
today compares with 2.9 percent just three years ago when the Com-
contemplated by the Committee that the prime sponsor will take into
prehensive Employment and Training Act of 1973 was enacted.
account individual circumstances and that jobs will be given to those
In 1974, when Congress enacted the current "Emergency Jobs Pro-
most in need of employment, taking into consideration such factors
gram", there were 5 million people unemployed. Today, there are at
as length of unemployment, household support obligations, other
least 2.1 million more persons looking for work. A job-creation pro-
sources of outside income, and the desirable public policy of enabling
gram designed for a 5.6 percent unemployment rate is inadequate at
persons to have a productive job rather than having to rely upon wel-
a time when we have a 7.5 unemployment rate, which counts 7 million
fare and income maintenance programs.
individuals as unemployed.
Consistent with these factors, the provisions of section 205 (a) (7)
The impact of the extent of unemployment of household needs
of CETA, made applicable to all public service employment programs
(whether two parents or single parent households) affects many per-
under title VI by section 602(c), provides that prime sponsors, in
sons who are members of the families of such heads of household.
applications for financial assistance for public service employment
The average duration of official unemployment is over 16 weeks-one
programs, shall set forth "assurances that special consideration in
third of a year.
filling transitional public service jobs will be given to unemployed
In April 1976, the total number of persons unemployed for 15 weeks
persons who are the most severely disadvantaged in terms of the
or more was 2.7 million, and 1.5 million were unemployed for 27 weeks
length of time they have been unemployed and their prospects for
or more. (Figures cited are not seasonally adjusted.) In October 1975,
employment without assistance under this title".
the same figures stood at 2.3 million, and 1.5 million respectively.
All of the new jobs funded above the existing level would be on
The number of individuals eligible is far larger than will be pro-
special projects established by the prime sponsors for not more than
vided public service jobs, even with the additional funding anticipated
12 months duration. The average federally-supported wage in those
by the Committee.
jobs will be maintained at a $7,800 average. The Committee bill pro-
Each of the four categories of eligible individuals falls within the
vides for hearings with respect to where those projects will be located
number of persons unemployed for more than three months, except
and who will operate them, making directly eligible for that purpose
that all AFDC recipients, regardless of length of unemployment, are
"project applicants", defined to include local educational agencies,
qualified as eligible participants. However, of the approximately 2.5
community-based organizations, community development corpora-
million recipients of AFDC benefits required to register in the Work
tions, and other nonprofit private organizations engaged in public
Incentive (WIN) program (basically those without children under
service, in addition to direct governmental agencies.
age in the household) the great majority are presumably within the
The Committee expects, as to these new public service jobs, that
category of persons unemployed for 15 weeks or more.
prime sponsors would subcontract a substantial portion of the new
Presented below are tables showing estimates of the number of per-
jobs to nonprofit agencies SO as to meet a wide variety of needs. While
sons expected to completely exhaust their entitlement to unemployment
the proposed legislation sets forth no specific percentage, at least 10
compensation (FSB and SUA) during calendar year 1976, which total
percent of funds should be contracted out to nonprofit agencies meet-
approximately 2.5 million. Also presented below are tables, based on
ing public needs, and it is contemplated that prime sponsors will
previously unpublished data provided by the Bureau of Labor Sta-
utilize these agencies to a greater extent, where feasible. The purpose
tisties, showing the characteristics of long-term unemployed workers.
is to ensure that real, new jobs are created SO as to minimize the sub-
These data are highly useful in assessing the extent and nature of long-
stitution effect and so as not to increase unnecessarily direct State and
term unemployment in the United States during the current recession,
local governmental employee payrolls, except when necessary, of
and illustrate the need for the continuation of a substantial public
course, to provide essential services.
service jobs program.
The Committee contemplates that there will be many proposals
[Tables I through VI attached.]
submitted to the prime sponsor for locally-initiated projects to carry
out needed public services which would not be carried without this
program. This should inspire competition among local groups to
design better projects. The Committee expects that the prime sponsor's
planning council's recommendations will serve as a means to sift out
the very best proposals and insure that there is no duplication of
effort. To insure a fair impartial selection process, the Committee
mandates that no member of a planning council shall participate
in the selection process, other than to discuss and inform the Council,
with respect to any project in which that member has a direct interest.
TABLE 1,-FSB EXHAUSTEE ESTIMATES-CALENDAR YEAR 1976
[Table reflects new estimates and data from the States Jan. 26, 1976)
1976
January
February
March
April
May
June
July
August
September
October
November
December
Total
20
Total
192,120
189,860
194,358
175,293
167,927
168,111
181,119
153,051
144,680
141,782
130,862
119,457
1,958,620
Alabama
2,300
2,300
2,500
2,200
1,900
2,200
1,900
1,700
1,600
500
,500
1,500
23,100
Alaska
75
60
100
45
130
90
80
125
90
120
80
160
1,156
Arizona
1,500
1,400
1,350
350
1, 300
1, 300
1,200
1, 100
1,100
1,100
900
700
14,300
Arkansas
1,782
500
300
680
715
760
440
550
880
875
1,050
1,630
12,162
California
35,000
35,000
35,000
34,000
34,000
34,000
32,000
32,000
32,000
32,000
32,000
32,000
399,000
Colorado
290
320
300
40
0
0
0
0
0
0
0
0
950
Connecticut
3, 200
2, 900
4, 200
3,400
3,000
3, 500
2,800
2,700
,700
600
2, 800
2,900
36,700
Delaware
700
800
900
0
0
0
0
0
0
0
0
0
400
District of Columbia
700
800
900
0
0
0
0
0
0
0
0
0
400
Florida
9,100
8, 900
8, 700
8, 500
8, 300
8, ,100
8,000
7,800
7, 600
7,400
7, 200
0
89,600
Georgia
8,500
8, 800
8,700
7, 100
7,100
5,000
4,500
4,600
4, 700
800
4, 900
5,000
73,700
Hawaii
450
350
300
300
450
400
400
0
0
0
0
0
2,650
Idaho
170
150
120
130
140
180
210
160
100
40
0
0
1,400
Illinois
7,600
800
8,100
8,400
700
8,900
9,200
9,300
9,100
900
8, 800
8,800
103,600
Indiana
8, 210
5, 470
2,740
0
0
0
0
0
0
0
0
0
16,420
Iowa
1,100
1, 200
1,300
1,100
1, 100
1, 200
900
800
500
250
100
0
9,550
Kansas
690
700
780
100
0
2,270
Kentucky
1,400
1,400
400
1,400
400
1, 400
1,400
1,400
1,400
1,400
1,400
1,400
16,800
Louisiana
2,150
1,960
1, 825
5,935
Maine
500
520
810
1,000
900
780
760
570
650
525
485
380
7,880
Maryland
1,480
1,480
1,710
2,120
1, 425
1,835
2, 680
1, 780
825
030
525
860
18,750
Massachusetts
9, 000
9, ,500
10,500
11,000
11,000
14,000
37,000
17,000
13,000
10,000
7,000
7,000
156 000
Michigan
11,000
11,000
12,000
Minnesota
11,000
11,000
3, 000
12,000
3,000
13,000
3, 500
12,000
2,000
11,000
1, 800
15,200
Mississippi
650
1,400
7,000
1,000
4,800
131,000
700
550
550
1,000
1,000
Missouri
400
200
1,000
200
1,000
4,500
175
1,000
20,800
4, 200
6,000
100
5, 400
0
210
3,800
0
2, 700
0
3,400
2,700
3,525
Montana
180
160
2,300
Nebraska
200
100
1,600
200
1,400
714
280
1,000
39,000
867
290
612
270
612
561
300
240
510
320
Nevada
510
750
800
750
750
450
725
408
725
102
102
New Hampshire
200
700
102
660
660
5, 550
230
300
600
600
600
New Jersey
350
350
12,700
350
225
600
12,000
100
8,170
12,300
New Mexico
11,900
50
11,700
50
11,600
30
11,400
20
11,300
2,255
451
491
536
New York
331
206
11,100
16,900
171
10,800
10,700
179
116
10,500
138,000
15,400
North Carolina
17,700
57
16,900
16,200
20
16,900
0
0
1,400
1, 300
13,500
2,558
200
400
13,500
0
13,600
12,900
50
0
0
13,500
0
14,200
0
181,000
North Dakota
70
40
10
10
0
0
Ohio
4, 300
70
0
30
60
60
4,300
5,000
6, 400
3,900
30
3, 600
3,400
60
70
0
610
Oklahoma
1,600
1,500
600
0
0
0
0
0
0
0
0
Oregon
0
0
26,600
1,400
1,350
1,450
1, 350
0
0
1,100
1,000
0
950
0
Pennsylvania
5,500
8,500
950
4,700
7,800
12,700
850
750
10,300
700
Puerto Rico
7,000
8,500
500
8, 400
900
6, 500
5,600
12,750
900
8,500
4,000
Rhode Island
4,500
5, 200
6, 000
800
000
91,200
600
300
1,600
5,900
South Carolina
600
100
1,600
6, ,900
600
5,200
1,800
5,800
5,000
5,500
1,600
5,000
1,600
71,400
4,500
600
5, 000
4,500
1,600
100
4,500
,800
3,000
19,800
South Dakota
150
150
0
Tennessee
0
2,000
0
1, 700
1, 500
4, 200
0
4, 400
0
1,500
43,700
Texas
4,600
0
4,600
0
4,500
0
4,400
4,200
0
400
3,300
2, 750
1,350
4,000
0
0
3, 800
0
3,700
0
3,600
0
3,400
49,100
Utah
560
430
210
50
0
0
0
0
0
0
Vermont
275
200
0
0
7,400
375
0
0
Virginia
450
300
0
450
990
1, 150
200
0
275
250
300
275
0
225
0
0
325
260
Washington
0
4,200
0
0
3,625
3, 800
West Virginia
4,500
4, 200
350
4,100
0
400
3,800
0
450
3,900
0
4,000
3,440
21
Wisconsin
450
500
3,900
500
3,900
3, 200
3,400
46,900
4,000
4, 500
500
3,000
400
350
2,500
350
Wyoming
20
2,500
350
2,500
40
2,500
350
35
50
2,500
2,500
4,950
15
15
2,500
15
2, 500
15
3, 000
15
34,500
15
15
15
265
Source: Unemployment Insurance Service, U.S. Department of Labor, with data provided by States.
22
23
Table II. Estimated number of FSB claimants who will not receive full entitle-
Total
224, 618 224,618
4, 210 4,210
181
800
965
35, 400
350
2, 820
96
80
ment in calendar year 1976 because of termination or reduction of FSB pro-
12, 12,000
6, 440
120
990
5,640 640
400
090
200
100
200
700
820
8,000
100
gram by operation of "off" triggers in present law
(Estimates prepared by State agencies)
Total
292, 340
105
C700
December
256 18,256
300
25
1,280
-im 000
31
200
1,000
480
10
40
390
600
20
65
175
009
300
170
500
500
Alabama
27,500
Alaska
0
Arizona
0
November
571 17,571
340
16
150
715
Arkansas
3, 3,000
29
240
00 m
1, 1,000
480
10
80
400
400
25
65
175
600
200
170
600
500
3,950
California
0
Colorado
9, 800
Connecticut
0
350
18
October
18, 18,237 237
105
455
3, 3,000
29
240
8
5
1, 1,000
480
10
150
410
009
25
60
Delaware
2, 800
175
600
220
670
800
500
District of Columbia
6, 800
Florida
10,100
Georgia
0
Hawaii
18, 166 18,166
280
20
September
150
260
8
0
3, 3,000
29
160
10
1,000
600
10
70
430
1, 1,000
50
55
175
600
240
670
700
500
Idaho
1, 220
Illinois
3, 000
Indiana
6, 400
Iowa
24,000
300
10
150
310
3, 3,000
29
180
8
5
August
18, 468 18,468
1,000
620
10
30
440
006
70
70
175
600
270
510
500
500
Kansas
5,500
Kentucky
500
Louisiana
7,200
Maine
525
Maryland
14,000
TABLE III.SUA EXHAUSTEE ESTIMATES-CALENDAR YEAR 1976
July
091 19,091
325
14
150
620
3, 3,000
29
180
8
5
1, 1,000
600
10
09
460
700
80
150
175
600
360
165
600
500
Massachusetts
0
Michigan
7, 000
Minnesota
5, 000
[Table reflects new estimates and data from the States Jan. 26, 1976]
1976
Mississippi
400
8
June
18, 349 18,349
300
17
150
1,080
3, 3,000
29
200
10
Missouri
20,000
1,000
480
10
20
480
400
90
150
175
009
370
165
500
500
Montana
2,000
Nebraska
2,900
Nevada
0
18,061 061
300
150
350
3, 3,000
29
230
8
5
New Hampshire
75
May
II
1, 1,000
240
10
200
490
500
150
170
175
600
420
270
009
500
New Jersey
0
New Mexico
0
New York
0
North Carolina
4,900
April
19, 020 19,020
340
10
150
325
North Dakota
530
3, 3,000
29
240
8
5
1, 1,000
400
10
130
510
600
150
120
175
600
470
335
800
500
Ohio
54,000
Oklahoma
6, 500
Oregon
0
19, 580 19,580
400
13
March
150
620
2, 2,800
29
230
8
5
1, 1,000
610
10
130
530
600
200
95
175
600
380
365
Pennsylvania
1,000
500
0
Puerto Rico
0
Rhode Island
0
South Carolina
7, 800
South Dakota
19, 419
500
12
150
870
2, 2,800
29
290
8
10
500
1,000
650
10
50
560
500
150
95
175
Tennessee
0
February
009
240
165
800
500
Texas
40,000
Utah
1, 890
Vermont
0
January
20, 400 20,400
475
15
150
1,080
-in 800
29
390
8
10
540
600
600
Virginia
8, 400
1, 1,000
800
10
30
50
105
175
230
165
009
600
Washington
0
West Virginia
0
Wisconsin
7,000
Wyoming
150
Total
Alabama
Alaska
Arizona
Arkansas.
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
24
25
Total
1,500
615
000'
1,050 -
999
225
7, 7,000
305
17, 17,650
4, 4,850
,020
inion 2,400
450
000
3, 3,320
21,000 000
1,500
2,520
,030
5, 5,400
12,000
1,200
1,755
1,145
4,500
525
1,400
250
TABLE IV.-CHARACTERISTICS OF WORKERS UNEMPLOYED 15 WEEKS AND OVER, OCTOBER 1975
[Numbers in thousands; not seasonally adjusted]
Household head with
December
100
248
200
93
19
20
500
110
1,550
350
85
200
275
90
275
1, 1,700
100
220
60
300
1,000
100
80
140
375
45
110
20
relatives
Household
At least
head
Not
Total
Percent
1 member
without
household
Item
unemployed
of total
Total
employed
relatives
head
November
100
225
100
87
51
15
520
125
1,400
320
85
200
275
80
250
1, 1,850
100
220
60
325
1,000
100
100
125
375
45
110
20
All persons
2,293
100. 0
842
310
268
1,184
White
1, 856
80. 9
704
260
204
947
Black and other
438
19.1
138
50
63
238
Age 16 to 24
735
32. 1
93
23
33
609
Age 25 to 54
1,248
54.4
595
238
150
508
October
100
283
100
87
51
15
530
90
1, 400
300
85
200
275
70
200
1, 1,900
100
220
60
325
1,000
100
80
120
375
45
110
21
Age 55 and over
310
13. 5
154
50
87
69
White-collar
674
29. 3
204
75
81
391
Blue-collar
1, 157
50.
564
210
133
463
Service
268
11.
68
24
52
147
Farm
9
4
3
5
Male
1,382
60. 3
722
290
169
491
September
100
230
100
87
51
10
550
10
1,500
330
85
200
300
50
150
1,800
100
250
60
350
1,000
100
65
100
375
45
130
21
White
1,139
49. 7
626
244
119
394
Black and other
242
10.6
96
46
49
97
Age 16 to 24
445
19.1
77
23
19
348
Age 25 to 54
746
32.5
502
220
111
135
Age 55 and over
192
8.4
143
48
40
10
White-collar
266
11.6
158
64
34
75
August
100
202
200
87
45
10
560
21
1,500
350
85
200
300
60
150
2, 2,200
150
250
70
400
1,000
100
70
75
375
50
150
21
Blue-collar
882
38.5
517
205
106
262
Service
134
5,
44
19
31
59
Farm
6
3
2
4
Female
912
39.8
120
20
99
693
TABLE III,SUA EXHAUSTEE ESTIMATES-CALENDAR YEAR 1976-Continued
White
716
31.2
78
16
$5
553
Black and other
195
8.5
42
4
July
14
[Table reflects new estimates and data from the States Jan. 26, 1976]
130
200
52
10
189
85
200
300
70
150
250
100
141
281
87
650
1, 1,500
350
200
2, 2,100
90
500
1,000
85
75
375
50
200
21
Age 16 to 24
290
12.7
16
14
261
Age 25 to 54
504
22.0
93
18
39
373
Age 55 and over
119
5.2
11
2
47
59
White-collar
408
17.8
46
11
47
316
Blue-collar
1976
275
12.0
47
5
27
201
Service
134
5.8
24
150
100
85
5
21
88
June
229
300
87
53
10
580
40
1, 1,450
400
85
200
300
80
225
1, 1,700
100
190
100
500
1,000
75
375
50
130
21
Farm
3
.1
1
1
TABLE V.-CHARACTERISTICS OF WORKERS UNEMPLOYED 27 WEEKS AND OVER, OCTOBER 1975
May
160
188
400
87
58
15
600
29
1, 1,450
420
85
200
300
100
225
1, 1,550
100
190
110
500
1,000
100
145
100
375
45
100
21
[Numbers in thousands; not seasonally adjusted]
Household head with
relatives
Household
April
150
100
400
87
19
20
610
39
1, 1,500
450
85
200
300
110
250
1, 300
150
190
140
500
1, 1,000
100
725
100
375
40
110
21
Source: Unemployment Insurance Service, U.S. Department of Labor, with data provided by States.
At least
head
Not
Total
Percent
1 member
without
household
Item
unemployed
of total
Total
employed
relatives
head
All persons
1, 296
100. 0
530
193
169
596
March
140
106
600
87
19
45
620
45
1,550
500
85
200
250
110
375
1, 1,400
100
180
110
600
1,000
100
175
150
375
35
110
21
White
1, 073
82.8
460
168
121
491
Black and other
223
17.2
70
25
48
106
Age 16 to 24
303
23. 4
40
10
14
249
Age 25 to 54
784
60.5
386
150
101
299
Age 55 and over
209
16. 1
104
34
56
50
White-collar
359
213
700
87
61
630
53
530
85
200
275
90
600
100
75
27. 7
130
48
49
181
February
140
30
1, 1,350
475
1,500
150
180
90
1, 1,000
110
375
35
100
21
Blue-collar
744
57. 4
364
131
90
291
Service
129
10. 0
33
14
30
64
Farm
6
5
1
4
Male
811
62.6
456
182
113
241
White
685
52. 9
408
160
74
203
Black and other
January
130
310
1,500
2, 000
200
180
80
100
70
75
126
9.7
48
22
39
39
600
87
61
25
650
54
550
85
200
300
90
550
500
1,000
375
35
100
21
Age 16 to 24
195
15.0
36
10
9
149
Age 25 to 54
489
37.7
324
139
79
87
Age 55 and over
128
9.9
96
34
26
7
White-collar
153
11. 8
99
43
22
32
Blue-collar
570
44.0
337
128
74
160
Service
64
4.9
20
11
18
25
Farm
3
2
3
Female
485
37. 4
74
11
56
355
White
388
29. 9
52
8
47
288
Black and other
97
7.5
22
3
9
67
Age 16 to 24
108
8.3
4
5
100
Age 25 to 54
296
22.8
62
11
22
212
New Hampshire
New Mexico
North Carolina
Age 55 and over
82
8
30
43
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Jersey
New York
North Dakota
Oklahoma
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
6.3
South Dakota
206
Tennessee
Vermont
Washington
White-collar
15.9
31
5
27
149
Ohio
Virginia
Wisconsin
Wyoming
Blue-collar
174
13. 4
27
3
16
131
Oregon
Texas
Utah
West Virginia
Service
65
5.0
13
3
12
39
Farm
3
.2
1
1
S. Rept, 94-883 o 4
26
27
ovér
272
180
103
45
12
13
33
24
49
32
5
2
10
5
16
5
2
3
52 and
13
72
39
6
15
12
REHIRING OF PERSONS LAID OFF FOR BONA FIDE REASONS
There has been some confusion regarding the use of CETA funds
668
438
279
114
21
42
102
54
96
60
$
27 to 51
25
10
230
41
7
8
5
21
31
153
118
14
22
5
to rehire persons laid off by local governments.
CETA funds may, of course, be used by local governments to hire
workers laid off in the public sector, just as such funds are used for
over
939
618
381
159
33
55
135
78
145
92
7
12
35
14
321
45
7
9
5
25
44
9
27 and
226
157
6
29
34
workers laid off in the private sector. Accordingly, the statute and
legislative history have clearly stated certain principles to avoid abuse.
of this authority when a governmental unit is, after the required
339
199
83
20
22
22
73
38
62
8
3
15 to 26
541
97
23
5
202
20
5
2
14
31
148
112
3
17
16
3
period of unemployment, rehiring persons previously laid off from a
job with that government.
In adopting title II as a part of the Comprehensive Employment
5 to 14
922
629
311
114
36
36
125
81
223
137
II
10
65
15
293
46
9
3
5
29
29
205
152
13
24
17
12
and Training Act of 1973, and later in adopting title VI in 1974, the
Congress made clear that the rehiring of former employees who had
lost their jobs due to bona fide lay-offs is authorized and permitted.
to
1,020
695
370
139
53
45
131
62
233
152
26
10
45
31
325
52
18
8
9
17
40
220
151
17
23
29
12
The Conference Report accompanying the enactment of title VI
(H. Rept. 93-1621) contained the following statement: "The strong
feeling of the conferees in opposition to 'paper lay-offs' should in no
Total
job-
losers
seeking
full-
164
way be construed to mean opposition to the rehiring of laid off workers
TABLE VI.-CHARACTERISTICS OF THE UNEMPLOYED OCTOBER 1975 CPS
Weeks of unemployment
time,
work
3, 422
2,282
1,260
495
142
159
465
259
698
442
51
35
169
65
1,140
39
20
20
85
143
800
572
39
93
95
34
per se. The rehiring of former employees who lost their jobs due to a
bona fide lay-off has always been permitted and is permitted here."
460
275
141
53
15
18
55
41
48
5
5
21
2
3
18
140
5
52 and
over
79
14
185
22
3
15
86
11
19
23
That conference report goes on to state: "It should be further noted
that the provisions of section 205 (c) (7) prohibiting the hiring of any
[Not seasonally adjusted; tabs in thousands]
person when any other person is on lay-off from the same or substan-
836
536
316
129
21
43
122
72
134
85
4
12
32
14
300
53
8
8
5
32
38
202
154
4
21
23
8
27 to 51
tially equivalent job still apply."
The primary purpose of the CETA Public Service Employment
program is to provide a balanced program of services to the over-all
6
27 and
over
1,296
811
456
182
36
19
177
113
213
133
18
53
28
485
74
II
6
7
46
56
342
240
16
41
46
13
unemployed population in the community.
The balance is to be achieved under provisions clearly set forth in
997
571
266
108
26
24
108
56
239
169
15
10
45
11
427
46
6
1
3
32
43
28
CETA. Section 208 (b) of CETA states, in a provision applicable to
335
3
15 to 26
247
17
43
public service employment programs under titles I, II, and VI of
CETA, that: "Consistent with the provisions of this title, the Secre-
14
2,206
1,161
428
164
54
46
164
120
580
380
35
33
132
33
134
23
7
14
90
57
814
75
tary shall make financial assistance available under this title in such
624
41
74
39
to
1,
a manner that, to the extent practicable, public service employment
5
opportunities will be available on an equitable basis in accordance
4
to
919
1,390
517
187
64
64
203
113
690
474
54
21
141
70
1,529
183
32
16
15
121
88
1, 197
894
88
89
126
60
with the purposes of this title among significant segments of the
population of unemployed persons, giving consideration to the relative
I
numbers of unemployed persons in each such segment."
Total
unem-
ployed
418
933
1,667
180
652
402
1,722
156
113
18
142
3,485
75
33
40
289
244
689 NN
161
233
289
116
The language of section 208 (b) is clearly intended to give the
641
195
371
437
Sccretary maximum flexibility to deal with each individual situation
on its merits. When the phrase "to the extent practicable" is used, it
implies that a judgment should be made about what makes sense. and
that the Secretary should not impose a specific or arbitrary numerical
Race by age: Total, all persons
FAMILY RELATIONSHIP AND
EMPLOYMENT STATUS
Total, all persons.
Household head with relative(s) in house-
At least 1 other member employed
full time
None full time; at least 1 employed
part time.
None employed; at least 1 unem-
No other member in labor force
Household head, not living with rela-
ployed
tives
Relative of head.
Head employed full time
Head employed part time
Head unemployed
hold
Nonrelative of head.
Household head with relative(s) in house-
At least one other member employed
None full time; at least 1 employed
None employed; at feast 1 unem-
or percentage quota limiting the rehiring of former employees who
Head not in labor force
full time
No other member in labor force
Household head, not living with relatives.
have lost their jobs due to a bona fide lay-off. However, the Act re-
full time
ployed
Relative of head
Head employed full time
Head employed part time
quires detailed information concerning the characteristics of the prime
Head unemployed
Head not in labor force
sponsorship area's unemployed population and of persons proposed
to be hired in public service jobs. SO that the Secretary can determine
Nonrelative of head
when it is necessary to review a particular application for financial
assistance to decide whether the lay-offs were bona fide and whether
hold.
the maintenance of effort requirements are being met. It is the Secre-
Female
tary's responsibility to assure compliance with the clear legislative
Male
intent not to support paper lay-offs calculated to shift payroll costs
to the CETA public service program-the purpose of which is to cre-
28
29
ate new job opportunities for persons who, in the absence of the CETA
the contribution rates for any such employer the relevant factors in
jobs, would be unemployed.
the computations may not take into account any element pertaining
to public service employment or compensation paid which is the sub-
UNEMPLOYMENT ASSISTANCE FOR LAID-OFF CETA PUBLIC SERVICE
ject of a payment by the United States under this section. Adherence
EMPLOYEES
to these requirements by a State is not intended to impair certifiability
for credits under section 3303 (b) and 3304 of the Federal Unemploy-
The Committee bill provides that the States and political subdivi-
ment Tax Act, or certifiability of grants under title II of the Social
sion shall be reimbursed under the Special Unemployment Assistance
Security Act.
program (title II of the Emergency Jobs and Unemployment Assist-
ance Act of 1974) for the costs of providing unemployment benefits
WORK ON HOUSING WEATHERIZATION PROJECTS
to workers who are employed in public service jobs pursuant to the
Comprehensive Employment and Training Act. This provision applies
The Committee bill includes a provision which would correct a prob-
to such employees who are employed by the State or local government
lem that has developed as a result of an interpretation on the part of
employers in states which provide for mandatory or elective coverage
the Department of Labor in its cooperation with the Community Serv-
of employees of such employers, and any such employers covered
ices Administration (CSA) on the "Weatherization Program" author-
under a local unemployment compensation plan. It also applies with
ized under section 222 (a) (12) of the Economic Opportunity Act.
regard to employees employed in public service employment by non-
When CSA developed the national guidelines to carry out congres-
profit organizations, the employees of which are required to be covered
sional intent of the energy programs, eligibility was established at
under the applicable state unemployment insurance law by the Fed-
125% of the CSA poverty guidelines. Community action programs
have operated within these guidelines for 2 years with the assistance
eral Unemployment Tax Act.
Public service employees of State and local governments in the
of CETA work crews to do necessary retrofitting and insulation work
on low-income homes.
majority of States generally receive unemployment assistance under
As of January 31st of this year, this working arrangement was over-
the Special Unemployment Assistance program, which is funded by
turned by the Department of Labor when, in response to a request
Federal general revenues. In a number of States, however, employees
from Region III, the Department interpreted "low income" to mean
in the public sector are covered, to varying degrees, by the regular
100 percent of the poverty level as officially issued by the Office of
State unemployment insurance law, frequently on a reimbursable basis
Management and Budget and directed its regional office to notify
(under which the public employer reimburses a State or local un-
community action programs that CETA workers could only work
employment compensation fund for the full amount of benefits paid
on homes of individuals whose income did not exceed 100 percent of
to former employees of the employer). In these instances, funds in-
that poverty level. The result has been that even though a community
tended for providing jobs are required to be reserved for payment of
unemployment compensation in event of layoffs, while in the balance
action program allocates funds for the insulation of the home of a
of the Nation, unemployment assistance is separately provided through
senior citizen whose income is less than 125 percent of the poverty
SUA. Section 6 of the bill would eliminate this inequity.
level but more than 100 percent of that level, a CETA crew cannot
provide the labor to install the insulation.
The States most directly affected by the provisions of Section 6 are
Connecticut, Florida, Hawaii, Michigan, Minnesota, Montana, Ohio,
The Department of Labor interpretation impacts hardest on the
Oregon, and Wisconsin.
elderly whose incomes sometimes exceed the poverty level by only a
This section is effective with regard to weeks of unemployment
few dollars. This provision would replace the Department of Labor
beginning on and after January 1, 1976. Payments under this authori-
interpretation of low income and apply the CSA 125 percent of the
zation would be made after October 1, 1976, to the States, or to politi-
poverty level as the eligibility level for persons benefitted by work
cal subdivisions in the case of coverage under local unemployment
done by CETA crews in weatherizing their homes.
compensation plans, based on estimates made by the Secretary of
This amendment is not intended to mean that CSA should change
Labor. The Secretary will certify his estimates to the Secretary of
its emphasis in the weatherization program away from serving the
the Treasury, who will make the payments from the appropriation
poorest on a priority basis.
for Special Unemployment Assistance.
To avoid duplication of payments to the States and political sub-
PUBLIC SERVICE EMPLOYMENT PROGRAMS FOR INDIANS
divisions for the costs of unemployment insurance protection of public
The Committee-reported bill amends title VI of CETA to provide
service employees, the States and political subdivisions are required
at least 4 percent of the title VI funds to Indian tribes, bands, and
to repay to employers who have reimbursed the State or political
groups for carrying out public service employment programs.
subdivision for any such benefits paid for weeks of unemployment
Under title III of CETA (section 302) funds are provided directly
beginning January 1, 1976, and may not charge the employers for
to Indian tribes, bands, and groups approved by the Secretary as hav-
benefits which are subject to payment by the United States. Also, an
ing demonstrated the capability to effectively administer comprehen-
employer who is liable for contributions to the State or political sub-
sive manpower programs. This means that Indian groups are equiva-
division with respect to public service employment must be repaid the
lent to prime sponsors under title I. This has given a service population
amount of any contributions paid with respect to services performed
in excess of 900,000 native Americans nationally.
in such employment on and after January 1, 1976, and in computing
30
31
In contrast under title VI of CETA sponsorship is limited to those
Approval of an OJT program is made by the VA-designated State
"Indian tribes on Federal and State reservations." With this defini-
approving agency for each State in accordance with VA-specified
tion, the service population is only 277,000.
criteria. Apprenticeship programs are approved by VA-designated
Title III has a funding distribution formula that provides "at least
State approving agencies pursuant to standards established by the
4 percent of the amount allocated to title I prime sponsors."
Bureau of Apprenticeship and Training in the Department of Labor.
Many times over the past several years, Congress has stated its
Implementation of the provision in the Committee bill could include
intent to allow Indian people to determine their goals and objectives
the establishment by CETA prime sponsors of VA-approved and
for themselves. The concept of "Indian self-determination" is a matter
funded public sector OJT opportunities. In addition, CETA prime
of Federal law and policy. This change in title VI is consistent with
sponsors, in close coordination with the Department of Labor, the
that policy and extends the 4 percent set-aside (which is under the
State Employment Service, and the Veterans' Administration, could
existing law applicable only to the funds under CETA exclusive of
refer unemployed veterans to available VA-approved apprenticeship
public service employment funds) at a time when the bulk of CETA
or OJT opportunities in the private sector. It should be noted that
funds are being appropriated for public service jobs.
prime sponsors can include in their public service job programs (con-
ducted under titles I, II, and VI) veterans' outreach services as defined
VETERANS PROVISIONS
in CETA section 701. Such efforts can include the use of veterans in
the development and maximum use of VA-approved OJT and ap-
OJT AND APPRENTICESHIP TRAINING
prenticeship opportunities in the public and private sectors.
The need for this amendment is underscored by the continuing high
Section 12 of the Committee bill amends title I (section 105 (a) (3))
unemployment rates for veterans, particularly young, disabled, and
of the Comprehensive Employment and Training Act of 1973 to pro-
minority group veterans. In its report accompanying S. 4079, the
vide that the comprehensive manpower plan required to be submitted
"Special Employment Assistance Act of 1974" (S. Rept. No. 93-1327),
to the Secretary shall provide for appropriate arrangements by the
the Committee expressed grave concern about the employment rates
prime sponsor to promote maximum use of Veterans' Administration
for veterans at that time. The Committee predicted that "the burden
apprenticeship or on-job training programs for eligible veterans con-
of continued increases in unemployment will fall heavily on three
ducted pursuant to section 1787 of title 38, U.S.C. Promotion by prime
groups of veterans who already have high unemployment rates: Young
sponsors of available VA apprenticeship and on-job training (OJT)
veterans in the 20-to-24 age bracket; minority-group veterans; and
will be beneficial to and productive for both eligible veterans and
disabled veterans.
These three groups
are very likely going
prime sponsors.
to face even more severe unemployment in the months ahead. Trag-
Under the VA OJT program, an approved employer promises a
ically, the Committee's predictions have been realized.
permanent job to a veteran upon successful completion of an OJT
Bureau of Labor Statistics data for the first quarter of 1976 in-
program. The program, which originated as part of the GI Bill follow-
dicated that there were 604,000 unemployed Vietnam-era veterans.
ing World War II, is based on the principle of the veteran learning
Among younger veterans, aged 20-24, a group that this Committee
a trade by performing the necessary job operations. During the train-
had feared would face particularly high rates of unemployment, the
ing program, the employer pays the veteran less than the full regular
unemployment rate for the first quarter of 1976 was 21.7% more than
wage, while the VA supplements this with a training assistance al-
60% higher than the rate for similarly-aged nonveterans. In compari-
lowance which it pays directly to the veteran. The amount of the
son, during the first quarter of 1975, the unemployment rate for
training assistance allowance is contingent upon the number of de-
younger veterans was 49 percent greater than similarly-aged non-
pendents and the length of time the veteran has been in training.
veterans. From the first quarter of 1975 to the first quarter of 1976,
The current GI Bill monthly training assistance allowance of an
younger veteran unemployment decreased less than one percent while
eligible veteran pursuing an OJT or apprenticeship program is as
the younger nonveteran rate decreased close to 9 percent or at rate
follows:
nine times greater than the rate for veterans.
Yet in the face of this harsh data, during fiscal year 1975, only
Col. I
Col. II,
Col. III
Col. IV
Col. V
13.6 percent of all CETA enrollees (titles I, II, and VI) were veterans.
"Special Vietnam-era veterans" (those with service in Indochina or
No
One
Two
More than two
Periods of training
dependents
dependent
dependents
dependents
Korea) comprised only 6.9 percent of all CETA enrollees.
These enrollment figures compare most unfavorably with those of
The amount
veterans under the Emergency Employment Act of 1971 (EEA),
in col. IV,
plus the
where specific hiring goals were established by EEA regulations, re-
following for
each de-
quiring generally that 30 percent of "new hire" positions be filled with
pendent in
Vietnam-era veterans. In actual practice, 43 percent of all enrollees
excess of
two:
in EEA public service jobs from 1971 to 1973 were veterans. Under
First 6 months
$196
$220
$240
$10
Second 6 months
147
171
191
10
the EEA through FY 1974, Vietnam-era veterans comprised 28.3
Third 6 months
98
122
142
10
percent of all hires. The Committee, in its 1974 report accompanying
Fourth and any succeeding 6-month periods
49
73
93
10
32
33
S. 4079, noted, in connection with the subject of the absence of specific
and minority veterans. New approaches to veterans outreach
hiring goals:
will be designed and implemented.
In the absence of that kind of authority attached to any
The Committee hopes that the amendment in the Committee bill
public service employment bill, it is highly unlikely that vet-
erans will get the special consideration this Committee be-
will contribute to the effectiveness of the Department's efforts to de-
liver on these commitments.
lieves they deserve.
The Committee believes that during this continuing period of high
The Committee went on to stress the need for utilization of OJT
rates of veterans' unemployment, every effort must be made to insure
as an important device for battling continued high veteran unem-
that all available and qualified veterans desiring assistance are placed
ployment and the need for coordination between the VA and the
in training or employment opportunities. The OJT program has a
Department of Labor, especially in regard to OJT and apprentice-
great unrealized potential for such placement.
ship opportunities. The record of Executive Branch performance on
The reported amendment is also consistent with past efforts by Con-
this point is sadly lacking.
gress to assure coordinated efforts with respect to veterans' programs.
Despite well-intentioned statements and promises, there has con-
An amendment in Public Law 93-508, codified at 38 U.S.C. 220, pro-
tinued to be low utilization of the VA OJT and apprenticeship pro-
vides that:
grams. The General Accounting Office reported in July 1975 that,
The VA Administrator shall seek to achieve the maximum
although large numbers of VA OJT opportunities had been devel-
feasible effectiveness, coordination, and interrelationship of
oped, veterans were not being referred to these openings. Hearings
services among all programs and activities affecting veterans
before the Senate Committee on Veterans' Affairs in October 1975
and their dependents, carried out by and under all other de-
revealed that, of 153,765 VA-approved job training establishments,
partments, agencies, and instrumentalities of the executive
over 108,000 had no trainees enrolled whatsoever.
branch and shall seek to achieve the maximum feasible coor-
The GAO report further revealed that 58 percent of employers with
dination of such programs with programs carried out under
approved OJT programs did not have any veterans in training. Of
this title.
these employers, fully 23 percent stated that they had an immediate
need for trainees and would accept one or more qualified veterans. Of
In addition, section 104(b) of Public Law 93-567 provides:
those approved employers with a veteran in training, 29 percent stated
(b) The Secretary of Labor, in consultation and coopera-
that there was an immediate need for at least one additional trainee
tion with the Administrator of Veterans' Affairs and the Sec-
and that they would have accepted one or more qualified veterans
retary of Health, Education, and Welfare, shall provide for
if they had been referred. The GAO concluded: "It appears that
an outreach and public information program utilizing, to the
many more qualified veterans could have been placed in approved
maximum extent, the facilities of the Veterans' Administra-
programs."
tion in order to (A) exercise maximum efforts to produce
This disappointing record is due in large part to the failure, pointed
jobs and job training opportunities
and inform all eligible
out in the GAO report, of coordination of Federal activities, espe-
veterans about employment, job training, and educational
cially effective coordination between the Department of Labor and
opportunities, under the Comprehensive Employment and
the Veterans' Administration, in the development and utilization of
Training Act of 1973
this promising readjustment program. The Department of Labor and
the VA must share the responsibility for these failures.
SPECIAL VETERANS OUTREACH AND PUBLIC INFORMATION PROGRAM
The Department of Labor, acknowledging the "higher than normal
levels of unemployment" affecting veterans, has now pledged that
The reported bill would also amend the above quoted section 104(b)
special efforts on behalf of veterans will be undertaken to insure that
of the Emergency Jobs and Unemployment Assistance Act of 1974
veterans receive priority services in the apprenticeship program in
(P.L. 93-567). This section directed the Secretary of Labor to consult
fiscal year 1977. In hearings before the House of Representatives Com-
and cooperate with the Administrator of Veterans' Affairs and the
mittee on Appropriations on February 2, 1976, the Deputy Assistant
Secretary of Health, Education, and Welfare in order to provide for
Secretary for Employment of the Department of Labor, in response
an outreach and public information program. Further, the Secretary
to an inquiry concerning whether there would be increased participa-
of Labor, in consultation and cooperation with the Administrator and
tion by Vietnam-era veterans in the apprenticeship program, testified
the HEW Secretary was required to report to Congress on the steps
Special efforts will be made to insure that veterans receive
taken and the regulations issued to carry out the outreach and public
information program. The required report was to be submitted within
priority services. Large and small companies, program spon-
90 days after enactment of the Act.
sors, as well as trade and labor organizations will be urged
to select veterans for apprenticeship opportunities. Special
Subsequently, the report was submitted to the Congress on May 16,
1975 (136 days after the enactment date). The letter of transmittal
emphasis will be given to those veterans who are experiencing
from then Secretary of Labor Dunlop noted that:
higher than normal levels of unemployment-the disabled
S. Rept. 94-883 o 5
35
34
program extension and other amendments contained in the Committee
The Department of Labor (DOL) has held several meet-
bill.
ings with veterans' organizations, the National Alliance of
Businessmen and the Interagency Jobs for Veterans Advis-
NATIONAL COMMISSION ON EMPLOYMENT AND UNEMPLOYMENT
ory Committee to explore the many approaches to an out-
STATISTICS
reach program. This report has been reviewed by both the
Department of Health, Education, and Welfare and the Vet-
Section 13 of the Committee bill provides for the establishment of
erans' Administration. The Veterans' Administration has
a National Commission on Employment and Unemployment Statistics
indicated that it strongly favors DOL and other agencies'
which would have the responsibility of examining the concepts, pro-
participation in and increased support of its existing "one-
cedures and methods involved in collecting, analyzing and presenting
step" service centers, the VETREACH program and the cre-
employment and unemployment data and of recommending ways and
ation of a volunteer program for outreach utilizing the local
means of improving the current system. This section is based upon a
chapters of the veterans' organizations.
proposal by Senators Cranston, Javits, and Stevenson.
Unfortunately, as noted above, veteran unemployment has contin-
The Commission is modeled along the lines of the President's Com-
ued at discouragingly high rates-particularly among young, minor-
mittee to Appraise Employment and Unemployment Statistics (pop-
ity group, and disabled veterans-while veteran participation in
ularly known as the "Gordon Committee" for its Chairman, Dr.
CETA, VA on-job training, and other government programs has been
Robert A, Gordon, University of California) which was appointed
far too low.
by President Kennedy on November 11, 1961, in response to a proposal
In hearings earlier this year before the Senate Committee on Ap-
by former Secretary of Labor Arthur Goldberg. The Gordon Com-
propriations, the Deputy Assistant Secretary for Employment and
mittee completed its report to the President in 1962. Since that time,
Training responded to a question about what had been done under
no comprehensive appraisal has been made of the employment and
section 104 (b) as follows:
unemployment statistical process.
The Department of Labor, in consultation and cooperation
In appointing the Committee in 1961, President Kennedy stated
with the Administrator of Veterans' Affairs and the Secre-
that:
tary of the Department of Health, Education, and Welfare,
The statistics of employment and unemployment are of
has initiated a variety of outreach and public information
vital importance as measures of the economic health and well-
programs to offer maximum job and job training opportu-
being of the nation. They serve as guides to public policy in
nities to eligible veterans. A major thrust of these program
the development of measures designed to strengthen the
initiatives is the outstationing of additional employment
economy, to improve programs to re-employ the unemployed,
service personnel to the Veterans' Administration "one-stop"
and to provide assistance to those who remain unemployed.
service centers. Agreements and contracts have been consum-
mated and others are being initiated with community and
The Committee notes that this statement remains equally valid to-
veterans' organizations to perform outreach activities. News-
day, and that the need for timely, accurate, and uniform data on em-
papers, television, radio, and other media will be fully uti-
ployment and unemployment is especially important in connection
lized to tell employers of the unemployment plight of vet-
with the Comprehensive Employment and Training Act of 1973, since
erans and to publicize the services which are available to em-
billions of dollars under this Act are distributed among prime sponsors
on the basis of formulas that are heavily dependent upon employment
ployers and veterans
estimates.
The above response provides little specific information as to what
The Gordon Committee report was highly regarded as a thorough
has in fact been done, and tends to emphasize future plans. Thus, the
and objective study of the system of measurement of employment and
Committee has required a new report to be filed within 90 days after
unemployment, and most of its recommendations were adopted. How-
enactment of this Act in order to permit the Department of Labor to
ever, developments in the nation's economy during the last decade and
identify and describe in greater detail the "[A greements and con-
a half have created a need for effective public policies to deal not only
tracts
being initiated with community and veterans' organiza-
with the unemployment problems facing the nation as a whole, but
tions to perform outreach activities." Further, this report on the status
with special employment problems of particular segments of the work-
of outreach and public information programs will allow Congress to
force, including minorities, women, and youth. This necessarily re-
compare the report filed in May, 1975, with the new report in order
quires a reliable and comprehensive measurement system upon which
to see the development and progress of the veterans outreach and
to base decisions in the public policy-making process, and calls for a
public information program. The Committee also expects that the re-
new examination of these important labor force measurements.
port to be filed will reveal that an adequate "CETA and Veterans"
The desirability of creating a new independent commission along the
technical assistance guide, long awaited, has been distributed to all
lines of the Gordon Committee has been widely recognized, and the
prime sponsors. Finally, the report will cover steps taken to produce
present Commissioner of Labor Statistics, Mr. Julius Shiskin, has re-
jobs for veterans in connection with the title VI public service jobs
36
37
peatedly stated his conviction that the time has come for another com-
or for how little pay-is classified as employed. Anybody who did no
prehensive review of employment and unemployment statistics. For
work, but who was looking for work and had actively sought to find
example, at his July 13, 1973, Senate nomination hearings before the
it, is considered unemployed. A person who neither worked nor looked
Committee On Labor and Public Welfare, he stated
for work is determined to be "not in the labor force".
This means that an unemployed household head seeking full-time
About ten years ago, President Kennedy appointed a
employment for a number of weeks and finding a one-week, part-time
committee to take a look at the unemployment data and em-
job during the survey week, is counted as employed. If a teenager looks
ployment data and see what improvements were desirable.
for part-time employment after school and cannot find a job, that indi-
They recommended, among other things, that the committee
vidual is considered unemployed. If another unemployed household
activity be repeated in about ten years and I would [press this
head has been seeking employment for a number of months, but has
issue] if I were Commissioner.
been unsuccessful in an attempt to find a job and has stopped looking,
Former Secretary of Labor Willard Wirtz and former Assistant
that person is determined to be "not in the labor force".
Commissioner for Manpower and Employment Statistics, Bureau of
As an economic indicator, our measurement system should present
Labor Statistics, Harold Goldstein, in their report, entitled "A Critical
the clearest possible picture of the utilization of our human resources,
Look at the Measuring of Work", conclude that:
which necessarily goes beyond a simple classification of whether an
The United States has one of the world's superior systems
individual is employed, unemployed, or not in the labor force. For
for work measurement.
And yet the preservation of what
example, we must be able to distinguish persons whose principal
is good, including continuity of measures over time SO that
activity is education and who are seeking limited, part-time employ-
long-term trends can be analyzed and the lessons of recent
ment from skilled, full-time workers. Moreover, other factors, such
history learned, constitutes no barrier to improving the sys-
as household status, occupational skill, and duration of employment
affect the significance of the individual's activity in terms of contribu-
tem.
Twelve years have elapsed since the last general review of
tions to the economy. The Commission is expected to examine and eval-
work measurements by the President's Committee to Appraise
uate these issues in its report.
Employment and Unemployment Statistics. The social and
In addition, the Committee has been concerned for some time with
economic environment have changed greatly during these
the development of labor force data that would measure the degree of
years. So have the questions the data are required to answer.
economic hardship experienced by individuals both in and out of the
New knowledge and techniques, the results of new research,
labor force. In the Comprehensive Employment and Training Act of
are now available for the development of improved measure-
1973, the Secretary of Labor was directed to develop such data, in-
ments and for their better applications to increasingly com-
cluding measures of "unemployment, labor force participation, in-
plex problems and to the improvement of new prospects. It
voluntary part-time employment and full-time employment at less
is time that another general review of these measurements be
than poverty wages." No agreed-upon measurement system has yet
made, by another Committee of competent, respected, and
been developed.
The Commission is directed in the bill to examine this issue and is
independent members.
expected by the Committee to make specific recommendations for im-
Accordingly, it is the principal function of the Commission to
plementing the directive expressed in CETA.
identify the nation's requirements for statistics on the labor force, to
Governmental policies at all levels to promote economic growth and
undertake a thorough review of the current procedures, concepts, and
full employment also depend on the availability of timely and reliable
methodology, and to make recommendations necessary to develop a
measurements of employment trends on a regional and subregional
comprehensive, reliable, timely, and consistent measurement system
basis. Although some improvements have been made, as called for by
of persons employed and those looking for work.
the Gordon Committee, the present system presents information which
The Committee expects the Commission, in light of the changes
is typically too little and too late. Among the problems to which the
which have occurred in the economy and in the characteristics of the
Commission should address itself are the compatibility of national,
labor force during the last two decades, to determine whether the pres-
state, regional, and local data, the coordination of data from the un-
ent statistical concepts of employment and unemployment accurately
employment insurance system with data derived from the monthly
indicate whether the nation is making the best use of its human re-
household survey, and the availability of such data for local areas.
sources.
This is of particular importance in connection with the design and
A number of questions have arisen over the last few years regarding
implementation of governmental programs to assist areas of high
the validity of the present concepts. Basically, the determination of
unemployment.
whether a person is classified as employed, unemployed, or out of the
COMMITTEE ACTION
labor force is based on the results of a monthly sample survey of 47,000
households to determine the chief activity of the individuals in the
The bill was unanimously ordered reported by the Committee on
households during one week of the month. Any person who did some
Labor and Public Welfare. There were no roll call votes during its
work for pay during that survey week-regardless of how little work
consideration.
38
39
COMMITTEE'S ESTIMATE OF COSTS
CONGRESSIONAL BUDGET OFFICE
This proposed legislation authorizes the appropriation of such sums
COST ESTIMATE
as may be necessary for fiscal year 1976, for the transition quarter,
and for fiscal year 1977. In view of the enactment of the Emergency
1. Bill number: H.R. 12987 (proposed Senate Substitute).
Supplemental Appropriations Act of 1976, which appropriates funds
2. Bill title: Emergency Jobs Program Extension Act of 1976.
for use in both title II and title VI areas (as would be statutorily
3. Purpose of bill: This bill provides for: (1) the reauthorization
ratified for hold harmless purposes by section 4 of this bill), the new
of Title VI of the Comprehensive Employment and Training Act
authorization in this bill is likely to be used only for appropriations
through FY 1977; (2) employment projects for the long-term unem-
for fiscal year 1977. The authorization to appropriate such sums as
ployed; (3) unemployment compensation benefits to public service
may be necessary leaves it to the appropriations process to determine
employees under CETA who are employed by the State or local gov-
funding levels, within such limits as are imposed by the Congressional
ernment employers in the nine states which provide for mandatory
Budget Resolution.
or elective coverage of employees of such employers, and any such
The following tables shows the cost estimates for title VI of CETA,
employers covered under a local compensation effective January 1,
first, at the level necessary to continue public service jobs currently
1976; and (4) the establishment of a National Commission on Employ-
funded under title VI, and second, at the level anticipated by the
ment and Unemployment Statistics.
Congressional Budget Resolution.
4. Cost estimate: (Dollars in millions).
This bill authorizes that such sums as may be necessary for FY
EMERGENCY JOBS PROGRAMS EXTENSION ACT OF 1976 (H.R. 12987 AS REPORTED, SENATE LABOR AND PUBLIC
1976, the Transition Quarter, and FY 1977 be appropriated. The esti-
WELFARE COMMITTEE)
mated gross costs associated with this bill are $3,507 million for FY
Fiscal Year 1977, Cost Estimates for Extension of Title VI of Comprehensive Employment and Training Act (CETA)
1977.
[In millions of dollars]
Fiscal year
Transition
Fiscal year
Fiscal year
Funds
Jobs
1976
quarter
1977
1978
Funds necessary to continue current level of 260,000 title VI public service jobs through
Continuing title VI
0
0
1,711
fiscal year ending Sept. 30, 1977
$1,711,000,000
1:260,000
Public employment projects
1,789
Additional funds for employment projects for long-term unemployed, up to level assumed
Unemployment compensation for CETA employees
6
in the congressional budget resolution
1,789,000,000
$260,000
National Commission on Employment and Unemployment
Statistics
1
1
Total based on congressional budget resolution assumptions
3,500,000,000
4 520,000
Total
0
0
3,507
1
1 In addition to the total current level of 260,000 public service jobs under title VI, there are 56,700 under the regular
$400,000,000 appropriation for public service jobs in areas of substantial unemployment under title II of CETA.
3 Current level of title VI jobs.
5. Basis for estimate
3 Potential additional level of title VI jobs.
4 Total potential level of title VI jobs.
REAUTHORIZATION OF TITLE VI
CONGRESS OF THE UNITED STATES,
CONGRESSIONAL BUDGET OFFICE,
In order to estimate the Title VI costs of this bill, an assessment
Washington, D.C., May 14,1976.
must be made of the costs per public employment job and the impact of
recent appropriations for public service employment.
Hon. HARRISON A. WILLIAMS, Jr.,
Chairman, Committee on Labor and Public Welfare,
Costs per public employment job
U.S. Senate, Washington, D.C.
The Department of Labor's most recent estimate of the cost and
DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congressional
enrollment figure for FY 1976 for Title II and Title VI are illus-
Budget Act of 1974, the Congressional Budget Office has prepared the
trated in Table I on the following page
attached gross cost estimate for the Emergency Jobs Program Exten-
TABLE 1.-COSTS AND ENROLLMENTS IN PUBLIC EMPLOYMENT
sion Act of 1976.
Should the Committee SO desire, we would be pleased to provide
Average
Average
further details on the attached cost estimate.
enrollment
Percent
cost
Sincerely,
(
JAMES L. BLUM
Title =
56,700
18
$7,400
Title VI
260,000
82
8, 300
(For Alice M. Rivlin, Director).
Total
Attachment.
316,700
40
41
Because prime sponsors have not differentiated between Title II and
Title VI employees, a weighted average cost of $8,138 was utilized to
fifteen or more weeks; (2) individuals who are ineligible for such
estimate costs of this bill.
benefits and have been unemployed for fifteen or more weeks; (3)
Impact of recent public employment appropriations bill
individuals who have exhausted unemployment compensation benefits;
(4) AFDC recipients-it is difficult to determine the cost per job. At
The recent appropriation of $1,200 million for holding harmless the
the maximum, the cost per job will be $8,138, the same as for Title VI.
number of Title II and Title VI employees through January 1, 1977
On the other hand, because of the category of individuals being served,
also impacts on the costs of this bill. With an enrollment of 316,700
the costs per job are estimated to be as low as $5,980.1 The mid point
and an average cost of $8,138, the total costs for Title II and Title VI
between these two extremes ($7,059) leads to a total number of jobs
for FY 1977 are estimated at $2,577 million. According to appropria-
created by this provision of 260,000. This means that the total number
tions history, $400 million of the $2,577 million are outlays associated
of jobs provided by this legislation will be approximately 520,000.
with Title II and the remaining $2,177 million are generated from the
The employment projects section of this bill have considerable off-
Title VI program.
sets in the form of reduced AFDC payments, U.C. benefits, and in-
In developing the cost estimate for this bill, then, the recent $1,200
creased tax receipts, which will substantially reduce the net costs of
million appropriation must be included to obtain the marginal costs
this section of the legislation.
of maintaining the current enrollment for Title VI through FY 1977.
According to the DOL, $150 million is required to hold harmless the
U.C. BENEFITS FOR PUBLIC EMPLOYEES
public employees on Title II and Title VI for the remainder of FY
1976, which leaves a residual of $1,050 million from the $1,200 million
The costs of this provision are negligible assuming that the current
appropriation. Thus, there are no costs for this bill for FY 1976, as
enrollment is maintained through FY 1977. However, since the pro-
part of the $1,200 million appropriation covers these costs.
visions are retroactive to January 1, 1976, some eligible public em-
For the Transition Quarter, the costs of maintaining the current
ployees may have received unemployment benefits during the three
enrollment are $644 million (316,700 X $8,138 X .25). The Transition
month period before the April appropriation of $1,200 million.
Quarter costs are also covered by the $1,200 million appropriation as
The total estimated enrollment in CETA public employment Titles I,
well as by a $100 million appropriation for Title II, but it further
II, and VI for FY 1976 is estimated to be 326,000. The State and local
reduces the amount left in those appropriations to $506 million.
government unemployment rate for the third quarter of FY 1976 is
Based on past appropriations history for Titles II and VI, approxi-
estimated to be about 4 percent.1 Thus, the total number of unemployed
mately $405 million of these appropriations would be allocated to Title
public service employees during this quarter is estimated to be 13,040.
VI and $101 million to Title II for FY 1977.
However, this provision only applies essentially to nine states which
The costs of maintaining current enrollment through FY 1977, then,
represents 27 percent of the total insured unemployed. The 13,040 is
are the enrollment for Title VI, 260,000 X $8,138, which is $2,116 mil-
further reduced, then, by 27 percent to 3,521. This caseload leads to
lion minus the $405 million residual from past appropriations. The
an estimated cost of $5.5 million. The cost is derived by multiplying
marginal costs, then, of Title VI are $1,711 million for FY 1977.
3,521 <26 (average duration on UI) X$70 (average weekly bene-
fit) .85 (participation rate).
EMPLOYMENT PROJECTS FOR THE LONG TERM UNEMPLOYED
NATIONAL COMMISSION ON EMPLOYMENT AND UNEMPLOYMENT STATISTICS
The intent of this legislation is to maintain the current enrollment
for Title VI and, having accomplished that, provide for project-
The estimated costs of the Commission are $1 million for FY 1977
oriented public service employment for the long term unemployed. The
and $1 million for FY 1978. This estimate is based on $50,000 per man
concurrent resolution provides for at least $4,400 million in outlays
year.
for FY 1977; additional funds may be available from the Allowance
6. Estimate comparison Not Applicable.
Function of the budget resolution. However, a number of subtractions
7. Previous CBO estimate: Not Applicable.
must be made to arrive at the outlays available for Title VI for FY
8. Estimate prepared by Robert F. Black.
1977. First, the $506 million in past appropriations must be subtracted,
9. Estimate approved by: James L. Blum, Assistant Director for
leaving about $3,900 million. In addition, the Title II appropriation
Budget Analysis.
for FY 1977 of about $400 million must also be subtracted, leaving
$3,500 million for Title VI. Finally, from the $3,500 million the costs
1 This figure was developed by multipling the minimum wage of $2.30 X 40 hours X 52
weeks. which yields $4,784. However, fringe benefits, allowances, and administrative costs
of maintaining the current enrollment in the Title VI must also be sub-
will account for an additional 20 percent, which is similar to the Title VI program for
these factors.
tracted, which leaves at least $1,789 million for employment projects
for the long term unemployed.
Because of the newness of the project-oriented approach, as well as
the fact that individuals participating in these projects will be: (1)
individuals who have been receiving unemployment compensation for
43
funds, the Secretary must base allocations upon previously sustained
public service employment activities within the jurisdiction of each
unit of general local government eligible to be a prime sponsor whether
or not such unit has entered into a consortium. In addition, the Sec-
SECTION-BY-SECTION ANALYSIS
retary of Labor would be authorized to use remaining discretionary
funds to provide financial assistance for the purpose of demonstrat-
Section 1. Short title
ing the feasibility of new and innovative job creation approaches to
This section provides that the Act may be cited as the "Emergency
public service employment programs.
Jobs Programs Extension Act of 1976".
Section 5. Employment projects for long-term, low-income unem-
Section 2. Authorization of appropriations
ployed persons
This section amends section 601 of the Comprehensive Employment
Subsection (a) of this section amends title VI of CETA by adding
and Training Act of 1973 to authorize the appropriation of such sums
at the end thereof two new sections:
as may be necessary for fiscal year 1976, the transition quarter begin-
Section 607 (a) provides that each prime sponsor shall, in accordance
ning July 1 and ending September 30, 1976, and for fiscal year 1977,
with regulations, utilize such portion of its title VI allocation for
for carrying out title VI.
fiscal year 1977 as may be necessary to sustain throughout fiscal year
Section 3. Supplies and equipment
1977 public service jobholders who were supported under title VI dur-
ing fiscal year 1976.
This section provides that not less than 85 percent of funds allo-
Section 607 (b) provides that the remainder of each prime sponsor's
cated for use for public service jobs programs under title II and VI
allocation shall be used to provide public service jobs for eligible
of CETA shall be expended only for wages and employment benefits
unemployed persons (described in section 607 (c)) in projects and
to persons employed in public service jobs. The remainder, up to 15
activities carried out by project applicants. Projects and jobs are not
percent of a prime sponsor's allocation, may be used for administrative
to exceed 12 months in duration and shall provide employment con-
costs, including rental costs and necessary supplies, equipment and
sistent with the aim of maintaining average federally supported wage
materials. This provision makes ineffective, for purposes of this au-
rates for public service jobholders (adjusted on a regional and area
thorization, the provisions of section 602(b) and 203(b) which pro-
basis) as set forth under section 209(b) of CETA-i.e., aiming at a
vide that 90 percent of allocations must go to wages and employment
nationwide average wage rate of $7,800 annually.
benefits, and of section 208 (a) (7) which provides that no funds may
Section (c) provides that, in filling public service jobs assisted
be used for rental or purchase of supplies and equipment.
under section 607 (b), each prime sponsor shall determine that each
Subsection (b) of this section provides that financial records of a
person hired in such a public service job is a person who (A) has been
prime sponsor relating to public service employment programs under
receiving unemployment compensation for 15 or more weeks, or (B)
CETA, and records of the names, addresses, positions, and salaries of
is incligible for such benefits and has been unemployed for 15 or more
all persons in public service jobs shall be maintained and made avail-
weeks, (C) has exhausted unemployment compensation benefits, or
able to the public.
(D) is a recipient of aid to families with dependent children (AFDC).
Section 4. Use of discretionary funds
Such a person would not be eligible, however, if a member of a house-
Subsection (a) of this section provides that, with respect to appro-
hold having a gross income, exclusive of wages received in a title VI
priations made under the title II authorization, by the Emergency Sup-
job, exceeding 70 percent of the lower living standard budget.
plemental Appropriations Act of 1976 (Public Law 94-266) funds
Section 607 (d) defines lower living standard budget as the Bureau
made available out of the Secretary's discretionary 20 percent, may be
of Labor Statistics annually determined lower living standard bud-
used in any area under title VI so as to continue public service em-
get, adjusted for regional and metropolitan and urban and rural dif-
ployment activities under both title II and title VI. In addition, with
ferences, and family size.
respect to allocations, whether under the formula or out of discretion-
Section 607 (e) provides that each prime sponsor shall take steps to
ary funds from the Emergency Supplemental Appropriations Act, the
insure that funds provided in accordance with section (b) shall be
Secretary of Labor is authorized to waive the provision of section
equitably allocated among the categories of eligible persons described
205 (a) of CETA requiring a 30-day period of unemployment in order
in subsection (c) in light of the composition of the population of
to enable persons employed under title VI to be transferred to title II.
unemployed eligible persons served by the prime sponsor.
Subsection (b) amends section 603 (b) of CETA by adding a pro-
Section 607 (f) provides that, in providing public service jobs and
vision specifically authorizing the Secretary of Labor to utilize dis-
determining hours of work for eligible persons with financial assist-
cretionary funds (up to 10 percent of title VI appropriations) to
ance provided in accordance with subsection (b), each prime sponsor
assure a continuation of public service employment activities pre-
shall take into account the household support obligations of men and
viously supported under the Act. In distributing such discretionary
women applying for such jobs. The prime sponsor shall also give
special consideration to such alternative working arrangements as
(42)
flexible hours of work, shared time, and part-time jobs, for eligible
persons, including parents of young children and for older persons.
44
45
Section 607 (g) directs the Secretary to take steps, through the
The Secretary will certify his estimates to the Secretary of the
affiliated State employment security agency, to assure that unemploy-
Treasury, who will make the payments from the appropriation for
ment compensation recipients, after twelve weeks of continuing to re-
special unemployment assistance. The amendment is effective with
ceive unemployment compensation benefits, shall thereupon be noti-
respect to compensation or assistance paid for weeks of unemployment
fied of his or her potential eligibility for a public service job. Such
that begin on and after January 1, 1976.
notification must make clear that the recipient continues to be eligible
To avoid duplication of payments to the States and political subdi-
for benefits and that the notification is to inform and not coerce the
visions for the costs of unemployment insurance protection of public
service employees, the States and political subdivisions are required
recipient. Section 607 (h) provides that no funds under the Act may be used
to repay to employers who have reimbursed the State or political sub-
to provide public services, through a private or nonprofit organization
division for any such benefits paid after the January 1 effective date,
or institution, which are customarily provided by a State, a political
and may not charge the employers for benefits which are subject to pay-
subdivision, or a local educational agency in the area served by the
ment by the United States. Also, an employer who is liable for con-
tributions to the State or political subdivision with respect to public
project. Section (a) provides for a project applicant to submit a copy
service employment must be repaid the amount of any contributions
of its project application to the prime sponsor's planning council to
paid with respect to services performed in such employment on and
enable it to submit recommendations to the prime sponsor. No member
after January 1, 1976, and in computing the contribution rates for any
of a prime sponsor's planning council may participate or cast a vote
such employer the relevant factors in the computations may not take
in the council's deliberations with respect to any project in which
into account any element pertaining to public service employment or
that member has an interest.
compensation paid which is the subject of a payment by the United
Section (b) provides that, consistent with such procedures as
States under this section. Adherence to these requirements by a State
the prime sponsor establishes in accordance with regulations. the prime
is not intended to impair certifiability for credits under sections 3303
sponsor shall not disapprove a project application submitted by a
(b) and 3304 of the Federal Unemployment Tax Act, or certifiability
project applicant unless it has first considered the comments and rec-
of grants under title III of the Social Security Act.
omendations of the prime sponsor's planning council and unless it has
The amendments made by section 6 are effective October 1, 1976.
afforded an opportunity for a hearing prior to final disapproval of
Section 7. Clarifying amendment
any such application.
Subsection (b) of section 5 of the bill provides that, in reallocat-
This section amends section 205 (c) (24) of CETA which provides
ing discretionary funds, the Secretary shall give priority first to other
that applications for assistance shall contain a description of
areas within the same State and then to areas within other States,
manpower needs of State governments, as well as of local governments,
taking into account the number of eligible unemployed individuals (as
by changing the requirement with respect to such applications requir-
ing that certain assurances relating to promotional opportunities in
described in section 607 (c)) in such areas.
"job categories" be made, SO that such assurances relate instead to "pro-
Section 6. Unemployment assistance for public service employees
motional lines."
This section provides that the States and political subdivisions shall
Section 8. Indian programs
be reimbursed under the Special Unemployment Assistance program
for the costs of providing unemployment benefits to workers who are
This section amends section 602(e) of CETA, which provides that
employed in public service employment pursuant to the Comprehensive
Indian tribes on Federal or State reservations are eligible applicants
Employment and Training Act. This provision applies to such em-
to carry out public service employment programs, by eliminating the
ployees who are employed by the State or local government employers
restrictions to tribes which are "on Federal or State reservations", pro-
in the States which provide for mandatory or elective coverage of
viding instead that eligible applicants include Indian tribes, bands,
employees of such employers, and any such employers covered under
and groups qualified under section 302 (1) of CETA.
a local unemployment compensation plan. It also applies with regard
Subsections (b) and (c) of this section provide that not less than
to employees employed in public service employment by non-profit
4 percent of the title VI allocations shall be allocated to Indian tribes,
organizations, the employees of which are required to be covered under
bands, or groups which are designated as eligible applicants to carry
the applicable state unemployment insurance law by the Federal
out public service employment programs.
Unemployment Tax Act. Public service employees employed by State
Section 9. Community-based organizations
and local governments in the other States generally already receive
This section provides that the Secretary of Labor shall provide fi-
unemployment assistance under the special unemployment assistance
nancial assistance under CETA, and shall assure that prime sponsors
program. This amendment is effective with regard to weeks of unem-
will provide financial assistance under CETA, for employment and
ployment beginning on and after January 1, 1976.
training programs carried out by community-based organizations
Payments under this authorization would be made on a monthly
which have demonstrated their effectiveness in job creation and in
basis to the States, or to political subdivisions in the case of coverage
placing disadvantaged persons in jobs with private industry and busi-
under local unemployment compensation plans, on estimates made by
ness, or which provide full-time or part-time job opportunities for
the Secretary of Labor on the basis of reports made to the Secretary.
older persons and others for whom job opportunities are lacking.
46
47
Emphasis is to be placed on the utilization of public works projects and
set forth arrangements for assisting the Secretary in carrying
other Federal financial assistance to local public agencies to increase
out his responsibilities for enforcing the requirement for
the employability of unemployed persons and provide opportunities
Federal contractors and subcontractors to list all suitable em-
for industry to create additional jobs for the unemployed in rural and
ployment openings with local offices of the State employment
urban communities.
service and provide spècial emphasis as required in section
Subsection (b) of this section provides that the Secretary of Labor
2012 of title 38, United States Code.
shall seek the cooperation of the heads of other Federal agencies ad-
As originally enacted in 1972 in Public Law 92-540, section 2012(
ministering financial assistance programs having significant job-creat-
ing impact in order to assure special consideration for the utilization
of title 38, United States Code, required Federal contractors to give
"special emphasis" to the employment of qualified disabled veterans
of community-based organizations for the provision of comprehensive
and veterans of the Vietnam era. Subsequent to the enactment of the
employment services and job opportunities for unemployed persons.
Such financial assistance programs include the State and Local Fiscal
Comprehensive Employment and Training Act of 1973, Congress
amended section 2012 (a) of title 38 in the Vietnam Era Veterans Re-
Assistance Act of 1972, title I of the Housing and Community De-
velopment Act of 1974, and any programs for public works and eco-
adjustment Assistance Act of 1974 (Public Law 93-508) by changing
"special emphasis" to "affirmative action."
nomic development, and railroad rehabilitation projects.
Subsection (c) provides that, notwithstanding any other provision of
This is a conforming amendment to section (b) (5) of title I
of CETA to reflect the changes made by the 1974 GI Bill amendments.
law, allocations for employment of individuals under CETA may be
used in conjunction with funds from any other public or private source.
Section Statistics 13. National Commission on Employment and Unemployment
Subsection (d) authorizes the Secretary of Labor to support projects
demonstrating the feasibility of providing relocation assistance to un-
This section establishes the "National Commission on Employment
employed workers in areas of substantial unemployment. The Secre-
and Unemployment Statistics" and charges it with the responsibility
tary is authorized to provide relocation assistance in such form and
of evaluating and making recommendations to the Congress and to the
amount as he deems appropriate, using as a general guideline the form
President with respect to the needs of the Nation for employment and
and amount of readjustment assistance under title II of the Trade Act
unemployment statistics. The bill declares that the reliable and com-
of 1974.
prehensive measurement of employment and unemployment is vital to
Section 10. W ork on weatherization projects
assessing the Nation's economic well-being and the utilization of its
This section provides that, notwithstanding any other provision of
work force, and that these statistics are important determinants of
public policies toward job creation, education, training, assistance for
law, employment and training services, furnished pursuant to any pro-
the jobless, and other labor market programs.
vision of the Comprehensive Employment Training Act of 1973 in
Directs the Commission to consider a number of issues in the course
connection with winterization projects authorized under section 222 (a)
(12) of the Economic Opportunity Act of 1964 may include work on
of its examination. Going beyond a critical and comprehensive look at
such projects for the near poor, including families having incomes of
the current methodology of collection, analysis, and presentation of
employment statististics, the bill directs the Commission to consider
125 per centum of the poverty guideline or less.
ways of making improvements in the statistical process such as in the
Section 11. Project applicants
analysis of the employment conditions of particular groups and meth-
Subsection (a) of this section makes clear that funds made available
ods of achieving current, accurate, and uniform statistics on a State
by the prime sponsor to project applicants may be used for projects and
and local basis. The Commission is directed to study the need for and
activities extending over a period of one year from the commencement
methods to obtain data relating employment status and earning, eco-
of the project or activity.
nomic hardship, and family support obligations. The Commission is
Subsection (b) defines project applicants to include States and agen-
also to direct its attention to statistical data on the functioning of edu-
cies thereof, units of general local government and agencies thereof,
cation and training programs, and statistical indicators of the rela-
special purpose political subdivisions, local educational agencies, in-
tionship between those programs and subsequent employment, earn-
stitutions of higher education, community-based organizations, com-
ings, and unemployment experience. The committee also directs the
munity development corporations, nonprofit groups and organizations
Commission to look at the need for and availability of occupational
serving Indians or Native Hawaiians, and other nonprofit organiza-
information, particularly on a local basis, to assist youths and adults
tions or institutions engaged in public service.
in making training, education, and career choices. The Committee
Section 12. Veterans employment and training assistance
notes a need for educational data and analysis on job vacancies, job
turnover, and job matching, part-time workers, youth, women, older
Subsection (a) requires a report to Congressional Committees within
persons, minorities, women, handicapped individuals, and other labor
ninety days of the legislation's enactement.
market participants. These issues, along with others enumerated in
Subsection (b) amends section 106 (b) (5) of CETA title I to con-
form with the recently revised statutory language codified at section
the Committee bill, will be put before the Commission for its study.
Subsection (b) provides that the Commission shall consist of nine
2012 of title 38. Currently, section 106 (b) (5) of title I of CETA
members who are appointed by the President, with the advice and con-
provides that any state comprehensive manpower plan shall:
sent of the Senate. Seven of the members are to be selected on the basis
48
of their particular knowledge and experience, and are to be broadly
representative of labor, business and finance, education and training,
economics and statistics, and state and local government. The remain-
CHANGES IN EXISTING LAW
ing two members are to be selected from the general public. The bill
also requires that the membership of the Commission shall be generally
In compliance with subsection 4 of rule XXIX of the Standing
representative of significant segments of the labor force, including
Rules of the Senate, changes in existing law made by the bill are shown
women and minority groups.
as follows (existing law proposed to be omitted is enclosed in black
Subsection (b) further provides that certain members of the exec-
brackets, new matter is printed in italic, existing law in which no
utive and legislative branches are to assist and participate in the ac-
change is proposed is shown in roman)
tivities of the Commission on an advisory basis. The Commission may
also wish to invite representatives from the Council of Economic Ad-
COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF
visors and the Federal Reserve Board to assist in its work.
1973, AS AMENDED
The Committee intends that the provision for executive and legis-
lative advisory participation will not hinder the Commission's objec-
Be it enacted by the Senate and House of Representatives of the
tive and independent inquiry, but rather will provide first-hand in-
United States of America in Congress assembled, That this Act may be
formation on their special concerns and interests and thus enhance the
cited as the "Comprehensive Employment and Training Act of 1973".
prospect that the Commission's recommendations will be implemented.
Provision is made for the selection of a Chairman by the President
TITLE I-COMPREHENSIVE MANPOWER SERVICES
from among the members of the Commission, and the appointment of
an executive director, and of the necessary professional, technical, and
clerical staff to carry out the Commission's charge without regard to
CONDITIONS FOR RECEIPT OF FINANCIAL ASSISTANCE
the Civil Service classification laws and regulations. The Commission
is required to submit its report to the Congress and to the President on
SEC. 105. (a) The Secretary shall not provide financial assistance
its findings and recommendations with respect to the labor force sta-
for any fiscal year to a prime sponsor unless such sponsor submits
tistical process within 18 months of its establishment.
a comprehensive manpower plan, in such detail as the Secretary deems
In submitting the final report to the Congress and the President,
necessary, which-
the Commission is to include a feasible schedule for implementation of
(1) sets forth a comprehensive manpower program which meets
its recommendations, cost estimates of such implementation, and any
the objectives of this title, including (A) a description of the
appropriate draft regulations and legislation necessary to implement
services to be provided, and performance goals, (B) assurance
such recommendations.
that such services will be administered by or under the supervision
In order to provide assurance of full consideration and appropriate
of the prime sponsor, (C) a description of the geographical
followup on the Commission recommendations, the Committee bill
areas to be served under the plan, and (D) assurances that to the
requires that the Secretary of Labor, in coordination with other af-
maximum extent feasible manpower services, including the de-
fected executive agencies, take action on the Commission's recom-
velopment of job opportunities, will be provided to those most in
mendations. In a six-month interim report to the Congress, the Secre-
need of them, including low-income persons and persons of lim-
tary is to include comments on the desirability, feasibility, and cost of
ited English-speaking ability, and that the need for continued
implementing each of the Commission's recommendations, and the ac-
funding of programs of demonstrated effectiveness is taken into
tions taken or planned with respect to implementation, as well as any
account in serving such groups and persons;
recommendations the Secretary may have for alternative or additional
(2) provides, in the case of prime sponsors who are recipients
legislation necessary to strengthen and improve the measurement of
of funds under title II for the development of a public service
employment and unemployment. A final report by the Secretary on the
employment program, that it is fully integrated with the services
actions taken with respect to the Commission's recommendations is to
under this title in order to assure that persons employed in such
be submitted within two years.
a program are afforded a better opportunity to find regular
Provision is made for administrative support and services (such as
employment not supported under this Act;
those provided by the General Services Administration and the Postal
(3) (A) provides appropriate arrangements with community-based
Service) to be provided to the Commission by all Federal departments,
organizations serving the poverty community, and other special target
agencies, and instrumentalities, as well as for the termination of the
groups for their participation in the planning of programs included
Commission 180 days after submission of its final report-the date by
in the plan; (B) provides for utilizing those services and facilities
which the Labor Department's interim follow-up report is due.
which are available, with or without reimbursement of the reasonable
The appropriation of such sums as may be necessary is authorized
(49)
in section 13 of the Committee bill. The best estimate of cost available
is that the Commission work will cost appromiately $1,000,000 for the
first year and $1,000,000 for the second year.
50
51
cost, from Federal, State, and local agencies to the extent deemed ap-
(5) set forth arrangements for assisting the Secretary in carry-
propriate by the prime sponsor, after giving due consideration to the
ing out his responsibilities for enforcing the requirement for Fed-
effectiveness of such existing services and facilities, including, but not
eral contractors and subcontractors to list all suitable employment
limited to, the State employment service, State vocational education
openings with local offices of the State employment service and
and vocational rehabilitation agencies, area skills centers, local edu-
[provide special emphasis.] take affirmative action, as required in
cational agencies, post secondary training and education institutions,
section 2012(a of title 38, United States Code;
and community action agencies, but nothing contained herein shall be
(6) set forth arrangements, if any, which the State may desire
construed to limit the utilization of services and facilities of private
to provide for planning areas to serve geographical regions within
agencies, institutions and organizations (such as private business, labor
the State; and
organizations, private employment agencies, and private educational
(7) make adequate provisions for the coordination of the man-
and vocational institutions) which can, at comparable cost, provide
power and related srevices to be provided by the State in areas to
substantially equivalent training or services or otherwise aid in re-
be served by prime sponsors other than the State. and that
ducing more quickly unemployment or current prospective manpower
provision has been made for the establishment of mechanisms to
shortages; (C) provides that in making arrangements for institutional
(A) provide for the exchange of information between States and
training priority shall be given (to the extent feasible) to the use of
local governments on State, intrastate, and regional planning in
skills center established under the authority of section 231 of the Man-
areas such as economic development, human resource develop-
power Development and Training Act of 1962; (D) provides arrange-
ment, education, and such other areas that may be relevant to
ments to the extent feasible for the coordination of services for which
manpower planning; and (B) promote the coordination of all
financial assistance is provided under programs administered by the
manpower plans in a State SO as to eliminate conflict, duplica-
Secretary of Labor relating to manpower and manpower-related serv-
tion, and overlapping between manpower services.
ices; and (E) provides as rangements to promote maximum use of
apprenticeship or other on-job training opportunities pursuant to
section 1787 of title 38, United States Code:
TITLE II-PUBLIC EMPLOYMENT PROGRAMS
*
STATEMENT OF PURPOSE
SPECIAL PROVISIONS RELATING TO STATE PRIME SPONSORS
SEC. 201. It is the purpose of this title to provide unemployment and
SEC. 106. (a) Any State seeking assistance under this Act shall sub-
mit a. State comprehensive manpower plan to the Secretary for
underemployed persons with transitional employment in jobs provid-
ing needed public services in areas qualifying for assistance and,
approval in accordance with the requirements of this section.
(b) The State comprehensive manpower plan shall in addition to
wherever feasible, related training and manpower services to enable
meeting the requirements of section 105-
such persons to move into employment or training not supported
under this title.
(1) provide satisfactory arrangements for serving all geo-
ALLOCATIONS OF FUNDS
graphical areas under its jurisdiction except areas served by an
eligible applicant who has filed a notice of intent under section
SEC. 202. (a) Eighty per centum of funds available for any fiscal
102(c), except that such plan may be amended to include areas
year for use in areas of substantial unemployment under this title
served by an eligible applicant whose plan is finally disapproved
shall be allocated among eligible applicants in accordance with the
without prejudice to the remedies available to such eligible appli-
number of unemployed residing in areas of substantial unemployment
cant under section 109;
within the jurisdiction of the applicant compared to the number of
(2) provide for the cooperation and participation of all State
unemployed residing in all such areas.
agencies providing manpower and manpower-related services in
(b) The remainder may be distributed by the Secretary in his dis-
the implementation of comprehensive manpower services plans
cretion taking into account the severity of unemployment within such
by prime sponsors in accordance with the provisions of this Act
areas.
(3) set forth an overall State plan for the development and
FINANCIAL ASSISTANCE
sharing of resources and facilities needed to conduct manpower
programs under its direct sponsorship without unnecessary dupli-
SEC. 203. (a) The Secretary shall enter into arrangements with
cation and otherwise in the most efficient and economical manner;
eligible applicants in accordance with the provisions of this title in
(4) provide for the coordination of programs financed under
order to make financial assistance available in areas of substantial
the Wagner-Pevser Act in accordance with such rules. regula-
unemployment for the purpose of providing transitional employment
tions, and guidelines as the Secretary determines necessary for
for unemployed and underemployed persons in jobs providing needed
the purpose of providing coordinated and comprehensive assist-
public services, and training and manpower services related to such
ance to those individuals requiring manpower and manpower-
employment which are otherwise unavailable, and enabling such per-
related services to achieve their full occupational potential in
sons to move into employment or training not supported under this
accordance with the policies of this Act;
title.
52
53
(b) Not less than 90 per centum of the funds appropriated pursuant
which are otherwise unavailable, and to enable such persons to move
to this title which are used by an eligible applicant for public service
into employment or training not supported under this title.
employment programs shall be expended only for wages and employ-
(b) Programs assisted under this title shall, to the extent feasible,
ment benefits to persons employed in public service jobs pursuant to
be designed with a view toward-
this title.
(1) developing new careers, or
ELIGIBLE APPLICANTS
(2) providing opportunities for career advancement, or
(3) providing opportunities for continued training, including
SEC. 204. (a) Financial assistance under this title may be provided
on-the-job training, or
by the Secretary only pursuant to applications submitted by eligible
(4) providing transitional public service employment which
applicants which are-
will enable the individuals SO employed to move into public or
(1) prime sponsors qualified under title I; or
private employment or training not supported under this Act.
(2) Indian tribes on Federal or State reservations.
(c) An application for financial assistance for a public service
(b) For fiscal year 1974, eligible applicants included any entity
employment program under this title shall include provisions setting
eligible to be a prime sponsor under section 102(a).
forth-
(c) For the purpose of this title "areas of substantial unemploy-
(1) assurances that the activities and services for which assist-
ment" means any area of sufficient size and scope to sustain a public
ance is sought under this title will be administered by or under
service employment program and which has a rate of unemployment
the supervision of the applicant, identifying any agency or insti-
equal to or in excess of 6.5 per centum for three consecutive months
tution designated to carry out such activities or services under
as determined by the Secretary. Determinations concerning the rate of
such supervision;
unemployment. shall be made by the Secretary at least once each fiscal
(2) a description of the area to be served by such programs,
year.
and a plan for effectively serving on an equitable basis the sig-
(d) (1) Whenever an area qualifying for assistance within the juris-
nificant segments of the population to be served, including data
diction of an eligible applicant is also within the jurisdiction of a unit
indicating the number of potential eligible participants and their
of general local government or a combination of such units having a
income and employment status;
population of 50,000 or more (but less than the necessary to qualify
(3) assurances that only persons residing within the area qual-
as a prime sponsor under title I), the eligible applicant shall delegate
ifying for assistance will be hired to fill jobs created under this
such unit or units of general local government the functions of pro-
title, and that the public services provided by such jobs shall, to
gram agent with respect to the funds allocated to such eligible appli-
the extent feasible, be designed to benefit the residents of such
cant on account of such area qualifying for assistance.
areas;
(2) For purposes of this ubsection the functions of program agent
(4) assurances that special consideration will be given to the
include the administrative responsibility for developing, funding,
filling of jobs which provide sufficient prospects for advancement
overseeing, and monitoring programs within the area but such func-
or suitable continued employment by providing complementary
tions shall be carried on consistently with the application for financial
training and manpower services designed to (A) promote the ad-
assistance which shall be developed by the eligible applicant in coop-
vancement of participants to employment or training opportuni-
eration with the program agent.
ties suitable to the individuals involved, whether in the public
(3) Whenever two or more units of general local government quali-
or private sector of the economy, (B) provide participants with
fy as program agents with respect to the same area qualifying for
skills for which there is an anticipated high demand, or (C)
assistance the provisions of section 102 (b) (2) shall be applicable.
provide participants with self-development skills, but nothing
(e) Whenever the Secretary makes any determination required by
contained in this paragraph shall be construed to preclude per-
this section, he shall promptly notify the Congress and shall publish
sons or programs for whom the foregoing goals are not feasible
such determination in the Federal Register.
or appropriate;
(5) assurances (A) that special consideration in filling transi-
APPLICATIONS
tional public service jobs will be given to unemployed persons who
served in the Armed Forces in Indochina or Korea on or after
SEC. 205. (a) Financial assistance under this title may be provided
August 5, 1964, in accordance with criteria established by the
by the Secretary for any fiscal year only pursuant to an application
Secretary (and who have received other than dishonorable dis-
which is submitted by an eligible applicant and which is approved by
charges), and a description of the specific stepes to be undertaken
the Secretary in accordance with the provisions of this title. Any
during such fiscal year to provide such special consideration, and
such application shall set forth a public service employment program
of the types of jobs to be made available to such veterans, with
designed to provide employment, in jobs providing needed public
special emphasis on the development of jobs which will utilize,
services, for persons residing in areas qualifying for assistance who
to the maximum extent feasible, the skills which such veterans
have been unemployed for at least thirty days and, where appropri-
acquired in connection with their military training and service,
ate, training and manpower services related to such employment
and (B) that the applicant shall (i) make special efforts to ac-
54
55
quaint such veterans with the program and the public service jobs
and, where shown necessary, revisions of qualification require-
available to veterans under this Act, and (ii) coordinate efforts
ments at all levels of employment, including civil service
in behalf of such veterans with those activities authorized by
requirements and practices relating thereto, in accordance with
chapter 41 of title 38, United States Code (relating to Job Coun-
regulations prescribed by the Secretary. with a view toward
seling and Employment Services for Veterans), or carried out by
removing artificial barriers to public employment of those whom
other public or private organizations or agencies;
it is the purpose of this title to assist;
(6) assurances that, to the extent feasible, public service jobs
(19) assurances that the applicant will, where appropriate,
shall be provided in occupational fields which are most likely to
maintain or provide linkages with upgrading and other manpower
expand within the public or private sector as the unemployment
programs for the purpose of (A) providing those persons em-
rate recedes;
ployed in public service jobs under this title who want to pursue
(7) assurances that special consideration in filling transitional
work with the employer, in the same or similar work, with oppor-
public service jobs will be given to unemployed persons who are
tunities to do SO and to find permanent upwardly mobile careers
the most severely disadvantaged in terms of. the length of time
in that field, and (B) providing those persons so employed who
they have been unemployed and their prospects for finding em-
do not wish to pursue permanent careers in such field, with op-
ployment without assistance under this title, but such special
portunities to seek, prepare for, and obtain work in other fields;
consideration shall not authorize the hiring of any person when
(20) assurances that all persons employed under any such pro-
any other person is on lay-off from the same or any substantially
gram, other than necessary technical, supervisory, and adminis-
equivalent job;
trative personnel, will be selected from among unemployed and
(8) assurances that no funds received under this title will be
underemployed persons;
used to hire any person to fill a job opening created by the action
(21) assurances that the program will, to the maximum extent
of an employer in laying off or terminating the employment of
feasible, contribute to the elimination of artificial barriers to em-
any regular employee not supported under this title in anticipa-
ployment and occupational advancement, including civil service
tion of filling the vacancy SO created by hiring an employee to be
requirements which restrict employment opportunities for the dis-
supported under this title;
advantaged;
(9) assurances that due consideration be given to persons who
(22) assurances that not more than one-third of the participants
have participated in manpower training programs for whom em-
in the program will be employed in a bona fide professional ca-
ployment opportunities would not be otherwise immediately
pacity (as such term is used in section 13 (a) (1) of the Fair Labor
available;
Standards Act of 1938), except that this paragraph shall not be
(10) a description of the methods to be used to recruit, select,
applicable in the case of participants employed as classroom
and orient participants, including specific eligibility criteria, and
teachers, and the Secretary may waive this limitation in excep-
programs to prepare the participants for their job responsibilities;
tiona] circumstances;
(11) a description of unmet public service needs and a state-
(23) a description of the manpower needs of local governments
ment of priorities among such needs;
and of local educational agencies within the area to be served to-
(12) a description of jobs to be filed, a listing of the major
gether with the comments of such governments and agencies where
kinds of work to be performed and skills to be acquired and the
appropriate, and assurances that jobs will be allocated equitably
approximate duration for which participants would be assigned
to such governments and agencies taking into account the number
to such jobs;
of unemployed within their jurisdictions and the needs of the
(13) the wages or salaries to be paid persons employed in pub-
agencies;
lic service jobs under this title and a comparison with the wages
(24) assurances that the jobs in each job category] promotional
paid for similar public occupations by the same employer;
line in no way infringe upon the promotional opportunities which
(14) where appropriate, the education, training, and suppor-
would otherwise be available to persons currently employed in
tive services (including counseling and health care services) which
public service jobs not subsidized under this title, and assurances
complement the work performed;
that no job will be filled, in other than an entry level position in
(15) the planning for and training of supervisory personnel in
each [job category] promotional line until applicable personnel
working with participants;
procedures and collective bargaining agreements have been com-
(16) a description of career opportunities and job and advance-
plied with;
ment notentialities for participants;
(25) assurances that jobs funded under this title are in addition
(17) assurances that procedures established pursuant to section
to those that would be funded by the sponsor in the absence of as-
207 (a) will be complied with;
sistance under this Act; and
(18) assurances that agencies and institutions to whom finan-
(26) such other assurances, arrangements, and conditions, con-
cial assistance is made available under this title have undertaken.
sistent with the provisions of this title, as the Secretary deems
or will undertake, analyses of job descriptions and reevaluations
necessary, in accordance with such regulations as he shall
prescribe.
56
57
APPROVAL OF APPLICATIONS
or result in the substitution of Federal for other funds in connec-
SEC. 206. An application, or modification or amendment thereof, for
tion with work that would otherwise be performed, and (D) will
financial assistance under this title may be approved only if the Sec-
not substitute public service jobs for existing federally assisted
jobs;
retary determines that-
(1) the application meets the requirements set forth in this
(2) persons employed in public service jobs under this Act shall
be paid wages which shall not be lower than whichever is the
title;
(2) an opportunity has been provided to officials of the appro-
highest of (A) the minimum wage which would be applicable to
priate units of general local government to submit comments with
the employee under the Fair Labor Standards Act of 1938, if
respect to the application to the applicant and to the Secretary;
section 6(a) (1) of such title applied to the participant and if he
(3) an opportunity has been provided to the Governor of the
were not exempt under section 13 thereof, (B) the State or local
State to submit comments with respect to the application to the
minimum wage for the most nearly comparable covered employ-
ment, or (C) the prevailing rates of pay for persons employed in
applicant and to the Secretary and
(4) where a labor organization represents employees who are
similar public occupations by the same employer;
engaged in similar work in the same area to that proposed in the
(3) funds under this title will not be used to pay persons em-
application, an opportunity has been provided such organization
ployed in public service jobs under this title at a rate in excess
to submit comments with respect to the application to the appli-
of $10,000 per year;
(4) all persons employed in public service jobs under this title
cant and to the Secretary.
will be assured of workmen's compensation, health insurance,
SPECIAL RESPONSIBILITIES OF THE SECRETARY
unemployment insurance, and other benefits at the same levels
and to the same extent as other employees of the employer and
SEC. 207. (a) The Secretary shall establish procedure for periodic
to working conditions and promotional opportunities neither
reviews by an appropriate agency of the status of each person em-
more nor less favorable than such other employees enjoy;
ployed in a public service job under this title to assure that in the
(5) the provisions of section 2(a) (3) of Public Law 89-286
event that any person employed in a public service job under this title
(relating to health and safety conditions) shall apply to such
and the reviewing agency find that such job will not provide sufficient
program or activity;
prospects for advancement or suitable continued employment, maxi-
(6) the program will, to the maximum extent feasible, con-
mum efforts shall be made to locate employment or training oppor-
tribute to the occupational development or upward mobility of
tunities providing such prospects, and such person shall be offered
individual participants;
appropriate assistance in securing placement in the opportunity which
(7) no funds under this title will be used for the acquisition
he chooses after appropriate counseling.
of, or for the rental or leasing of supplies, equipment, materials,
(b) The Secretary shall review the implementation of the proce-
or real property; and
dures established under subsection (a) of this section six months after
(8) every participant shall be advised, prior to entering upon
funds are first obligated under this title and at six month-intervals
employment, of his rights and benefits in connection with such
employment.
thereafter. (c) Where the Secretary determines that an Indian tribe on a
(b) Consistent with the provisions of this title, the Secretary shall
Federal or State reservation is unable to submit an application to
make financial assistance under this title available in such a manner
carry out a public service employment program which meets the
that, to the extent practicable, public service employment opportuni-
requirements of section 205, the Secretary shall assist such tribe in pre-
ties will be available on an equitable basis in accordance with the
paring, submitting, and implementing a public service employment
purposes of this title among significant segments of the population
program. The provisions of section 208 shall apply to programs car-
of unemployed persons, giving consideration to the relative numbers
ried out under this subsection.
of unemployed persons in each such segment.
(c) Where a labor organization represents employees who are
SPECIAL CONDITIONS
engaged in similar work in the same area to that proposed to be
performed under any program for which an application is being
SEC. 208. (a) The Secretary shall not provide financial assistance for
developed for submission under this title, such organization shall be
any program or activity under this title unless he determines, in
notified and afforded a reasonable period of time prior to the sub-
accordance with such regulations as he shall prescribe, that-
mission of the application in which to make comments to the applicant
(1) the program (A) will result in an increase in employment
and to the Secretary.
opportunities over those opportunities which would otherwise be
(d) The Secretary shall prescribe regulations to assure that pro-
available, (B) will not result in the displacement of currently
grams under this title have adequate internal administrative controls,
employed workers (including partial displacement such as a re-
accounting requirements, personnel standards, evaluation procedures,
duction in the hours of non-overtime work or wages or employ-
and other policies as may be necessary to promote the effective use
ment benefits), (C) will not impair existing contracts for services
of funds.
58
59
(e) The Secretary shall not provide financial assistance for any
(b) In compiling the data which the Secretary is required to report
program under this title unless he determines, in accordance with
to the Congress under section 208(e), the Secretary shall obtain and
regulations which he shall prescribe, that periodic reports will be
compile information on practices and procedures implemented by
submitted to him containing data designed to enable the Secretary
prime sponsors affecting average annual wage rates paid to public
and the Congress to measure the relative and, where programs can
service job holders and public service job opportunities described
be compared appropriately, comparative effectiveness of the programs
under this title. The Secretary is authorized to make general recom-
authorized under this title and other federally supported manpower
mendations to prime sponsors, on a regional and area basis, as he may
programs. Such data shall include information on-
deem approporiate, consistent with section 208 (a) (3) (relating to the
(1) characteristics of participants including age, sex, race,
maximum annual wage rate per public service job holder), taking into
health, education level, and previous wage and employment
account average wages in the various areas served and the cost of liv-
ing in such areas, with the aim of maintaining the number of jobs on
experience; (2) duration in employment situations, including information
a nationwide average in federally supported wage rates equivalent to
on the duration of employment of program participants for at
$7,800 per public service job holder.
least a year following the termination of participation in feder-
ally assisted programs and comparable information on other
UTILIZATION OF FUNDS
employees or trainees of participating employers; and
(3) total dollar cost per participant, including breakdown
SEC. 210. Funds available under this title to an eligible applicant
between wages, training, and supportive services, all fringe bene-
may, at its option, be utilized for residents of the area qualifying for
fits, and administrative costs.
such assistance for programs authorized under title I and part A of
The Secretary shall compile such information on a State, regional,
title III of this Act.
and national basis, and shall include such information in the report
SPECIAL PROVISIONS
required by section 209 of this title.
SEC. 211. (a) The determinations to be made under section 204
(f) The Secretary shall not provide financial assistance for any
program under this title unless the grant, contract, or agreement with
shall taken into account the rate of unemployment for a period of three
respect thereto specifically provids that no person with responsibilities
consecutive months even though all or part of such period may have
occurred prior to the enactment of this Act.
in the operation of such program will discriminate with respect to any
program participant or any applicant for participation in such pro-
(b) No officer or employee of the Department of Labor shall, by
gram because of race, creed, color, national origin, sex, political
regulation or otherwise, impose on any eligible applicant, as a condi-
tion for the receipt of financial assistance under the title, any require-
affiliation, or beliefs.
(g) The Secretary shall not provide financial assistance for any
ment that any eligible applicant must place in other jobs a specific
program under this title which involves political activities; and
number or proportion of public service jobholders supported under
neither the program, the funds provided therefor, nor personnel em-
this title. The Secretary may establish placement goals for eligible
applicants, except that such goals must be identified as goals, not re-
ployed in the administration thereof, shall be, in any way or to any
extent, engaged in the conduct of political activities in contravention
quirements, and any form or other document developed pursuant to
such regulations shall give written notice to that effect. Any eligible
of chapter 15 of title 5, United States Code.
(h) The Secretary shall not provide financial assistance for any
applicant shall have the right, clearly stated in such regulations, to re-
program under this title unless he determines that participants in the
quest a waiver of such goals if, in his judgment, such goals are not
program will not be employed on the construction, operation, or main-
feasible. Such waiver, a request for which may be submitted at any
tenance of SO much of any facility as is used or to be used for sectarian
time, may be granted by the Secretary where. in his judgment, local
conditions warrant it. Wherever such a waiver has been granted,
instruction or as aplace for religious worship.
failure to meet placement goals shall not be cited in any official review
or evaluation of that eligible applicant's programs.
SPECIAL REPORT
SEC. 209. (a) The Secretary shall transmit to the Congress at least
annually a detailed report setting forth the activities conducted
TITLE VI-EMERGENCY JOB PROGRAMS
under this title, including information derived from evaluations re-
[AUTHORIZATION OF APPROPRIATIONS
quired by this title and information on the extent to which (1) partici-
pants in such activities subsequently secure and retain public or
[SEC. 601. There are authorized to be appropriated $2,500,000,000
private employment or participate in training or employability
for fiscal year 1975 for carrying out the provisions of this title. Any
development programs, (2) segments of the population of unemployed
amounts SO appropriated for such fiscal year which are not obligated
persons are provided public service opportunities in accordance with
prior to the end of such fiscal year shall remain available for obliga-
the purposes of this title.
tion until December 31, 1975.]
61
60
(B) Twenty-five per centum of the amount allotted under this
AUTHORIZATION OF APPROPRIATIONS
subsection shall be allotted among eligible applicants in accordance
with the number of unemployed persons residing in areas of substan-
SEC. 601. There are authorized to be appropriated such sums as may
tial unemployment (as defined in section 204 within the jurisdica-
be necessary for fiscal year 1976, and for the period beginning July 1,
tion of the applicant compared to the number of unemployed persons
1976, and ending September 30, 1976, and for fiscal year 1977, for
residing in all such areas.
carrying out the provisions of this title.
(C) Twenty-five per centum of the amount allotted under this sub-
section shall be allotted among eligible applicants on the basis of the
FINANCIAL ASSISTANCE
relative excess number of unemployed persons who reside within the
SEC. 602. (a) The Secretary shall enter into arrangements with
jurisdiction of the applicant as compared to the total excess number
eligible applicants in accordance with the provisions of this title in
of unemployed persons who reside within the jurisdiction of all eligi-
order to make financial assistance available for the purpose of provid-
ble applicants. For purposes of this subparagraph, the term "excess
ing transitional employment for unemployed and underemployed per- and
number" means (i) the number which represents unemployed persons
in excess of 41/2 per centum of the labor force in the jurisdiction of
sons in jobs providing needed public services, and training
manpower services related to such employment which are otherwise
the applicant in whose jurisdiction such persons reside or (ii), in the
unavailable, and enabling such persons to move into employment not
case of an applicant which is a State, the term "excess number" means
such number as defined in clause (i) or the number which represents
supported under this Act.
unemployed persons in excess of 41/2 per centum of the labor force in
ant to this title which are used by an eligible applicant for public
(b) Not less than 90 per centum of the funds appropriated pursu-
areas eligible for assistance under title II located in the geographical
service employment programs shall be expended only for wages and
area served by such State prime sponsor under title I or II, whichever
is greater.
employment benefits to persons employed in public service jobs pur-
(b) The remainder of the amount appropriated under section 601
suant to this title.
shall be available to the Secretary for financial assistance under sec-
(c) The provisions of section 204(d) and sections 205 through 211
tion 602 as the Secretary deems appropriate to carry out the purposes
shall apply to financial assistance under this title.
of this title, taking into account changes in rates of unemployment.
(d) In filling public service jobs with financial assistance under
In distributing funds available for the discretionary use of the Sec-
this title, eligible applicants shall give preferred consideration, to
the maximum extent feasible and consistent with other provisions of
retary of Labor under this subsection, the Secretary is authorized to
utilize such funds to assure a continuation of public service employ-
this Act, to unemployed persons who have exhausted unemployment
insurance benefits, to unemployed persons who are not eligible for
ment activities previously supported under this Act. In distributing
such funds under this subsection to prime sponsors, the Secretary shall
unemployment insurance benefits (except for persons lacking work
experience), and to unemployed persons who have been unemployed
base allocations upon the public service employment activities sus-
tained within the jurisdiction of each unit of general local govern-
for fifteen or more weeks.
(e) For purposes of this section, the term "eligible applicants"
ment within the area served by each such prime sponsor in accordance
with subsection (c) of this section. The Secretary of Labor is author-
means prime sponsors qualified under title I and [Indian tribes on
Federal or State reservations.] Indian tribes, bands, and groups quali-
ized to provide financial assistance, out of any funds remaining under
this subsection, for the purpose of demonstrating the feasibility of
fied under section 302 (1) of this Act.
new and innovative job creation approaches to public service employ-
ment programs.
ALLOTMENT OF FUNDS
(c) For purposes of determining allocations under this section, the
SEC. 603. (a) (1) The Secretary shall reserve an amount equal to
term "jurisdiction" includes the jurisdiction of each unit of general
not less than 4 per centum of the amounts appropriated under section
local government as described in section 102 (a) (2) whether or not
601 for any fiscal year to enable Indian tribes, bands, and groups which
such unit has entered into a combination of units of general local
are designated as eligible applicants under this title to carry out public
government for purposes of section 102(a) (3) or section 102(a) (4).
service employment programs.
[SEC. 603. (a) (1) Not less than 90 per centum of the remainder
SPECIAL PROVISION FOR AREAS OF EXCESSIVELY HIGH UNEMPLOYMENT
of the amounts appropriated under section 601 for any fiscal year
AND TO EXPAND JOB OPPORTUNITIES
shall be allotted among eligible applicants by the Secretary in accord-
SEC. 604. (a) Funds allocated from appropriations for carrying
ance with the provisions of this subsection.
[(2](3) (A) Fifty per centum of the amount allotted under this
out this title to any eligible applicant, which certifies to the Secretary
subsection shall be allotted among eligible applicants in proportion
that the application of the provisions of this section is necessary in
to the relative number of unemployed persons who reside in areas
order to provide sufficient job opportunities in the area served by such
within the jurisdiction of each such applicant as compared to the
eligible applicant, may be used for making payments to public
number of unemployed persons who reside in all such areas in all the
employers to expand the provision of job opportunities of the type
States.
62
63
described in paragraphs (3), (4), (5), and (6) of section 304(a) of
vided thirty days' advance notice to the prime sponsor for such area
Any such amount may be reallocated only if the Secretary has pro-
this Act.
(b) In accordance with the provisions of subsection (c), and not-
and to the Governor of the State of the proposed reallocation, during
withstanding the provisions of sections (a) and funds
which period of time the prime sponsor and the Governor may submit
allotted under section 603 to eligible applicants may be used for-
comments to the Secretary. After considering any comments submitted
(1) public service employment programs without regard to
during such period of time, the Secretary shall notify the Governor
the provisions of sections (b), (c) (4), 205 (c) (6), 205 (c)
and affected prime sponsors of any decision to reallocate funds, and
(16), 205 (c) (19), and 208 (a) (6).
shall publish any such decision in the Federal Register. [Any such
(2) providing employment for persons who have been unem-
funds shall be reallocated to other areas within the same State.] In re-
ployed for at least 15 days without regard to the provision of sec-
allocating any such funds, the Secretary shall give priority first to other
tion 205 (a) relating to 30 days of unemployment, if the applicant
areas within the same State and then to areas within other States,
certifies that the hiring of an individual will not violate the pro-
taking into account the number of eligible unemployed individuals
visions of section 205 (c) (8).
(as described in section 607 (c)) in such areas.
(3) payment of wages (at rates not less than those prevailing
on similar construction in the locality as determined by the Sec-
EMPLOYMENT PROJECTS FOR LONG-TERM, LOW-INCOME UNEMPLOYED
tary in accordance with the Davis-Bacon Act, as amended (40
PERSONS
U.S.C. 276a-276a-5)) for unemployed and underemployed per-
sons as employees of public employers in jobs on community capi-
SEC. 607. (a) Each prime sponsor shall, in accordance with regula-
tal improvement projects which would not otherwise be carried
out, including the rehabilitation, alteration, or improvement of
allocation which it receives under this title, out of appropriations for
tions which the Secretary shall prescribe, utilize such portion of the
public buildings, roads and other public transportation facilities,
fiscal year 1977, as may be necessary to enable the prime sponsor to
health and education facilities, and other facilities for the im-
provement of the community in which the project is or will be
under this title during fiscal year 1976.
sustain throughout such fiscal year public service jobholders supported
located, and including construction, rehabilitation, alteration, or
(b) The amount of each prime sponsor's allocation under this title
improvement of water and waste disposal facilities in communi-
remaining after funds are utilized for the purpose described in sub-
ties having populations of 10,000 individuals or less which are
section (a) of this section shall be used to provide public service jobs
outside the boundaries of a Standard Metropolitan Statistical
for eligible unemployed persons (as described in subsection (c) of
Area (as defined by the Bureau of the Census).
this section) in projects and activities carried out by project applicants
(c) The provisions of subsection (b) shall apply to any area having
(as defined in section 701 (a) (15) of this Act). Such projects and jobs
an unemployment rate in excess of 7 per centum, and to any area,
shall not exceed twelve months in duration and shall provide employ-
without regard to the rate of unemployment of such area, if such area
ported wage rates for public service jobholders (adjusted on a
ment consistent with the aim of maintaining average federally sup-
is served by a prime sponsor which qualifies under section 102 (a) (4)
or section 102 (a) (5) or is in an area which is eligible for assistance
regional and area basis) as set forth under section 209(b) of this Act.
under title II and which is served by a State prime sponsor, and if the
(c) In filling public service jobs with financial assistance available
prime sponsor for such area certifies to the Secretary that the applica-
for the purpose described in subsection (b) of this section, each prime
tion of such provisions is necessary in order to provide sufficient job
sponsor shall determine that any person employed in such public job
opportunities, and gives public notice of such certification.
(1) is an individual-
fifteen or more weeks;
(A) who has been receiving unemployment compensation for
EXPENDITURE OF FUNDS
SEC. 605. Funds obligated for the purposes of providing public
for fifteen or more weeks;
(B) who is ineligible for such benefits and has been unemployed
service employment under this title may be utilized by prime spon-
sors for projects and activities, including projects and activities to be
or
(C) who has exhausted unemployment compensation benefits;
carried out by project applicants as defined in section 701 (a) (15) of
this Act, planned to extend over a twelve-month period from the
(D) who is, or whose family is, receiving aid to families with
commencement of any such project or activity.
dependent children provided under a State plan approved under
part A of title IV of the Social Security Act;
REALLOCATION OF FUNDS
and (2) is not a member of a household which has a gross family in-
SEC. 606. The Secretary is authorized to make such reallocations as
exceeding 70 per centum of the lower living standard budget.
come, exclusive of wages received by such individual under this title,
he deems appropriate of any amount of any allocation under this title
budget" means that income level (adjusted for regional and metro-
(d) For purposes of this section, the term "lower living standard
to the extent that the Secretary determines that an eligible applicant
will not be able to use such amount within a reasonable period of time.
politan and urban and rural differences and family size) determined
annually by the Bureau of Labor Statistics of the Department of
64
65
Labor which is referred to by such Department as the "lower living
TITLE VII-GENERAL PROVISIONS
standard budget".
(e) In filling public service jobs, each prime sponsor shall take steps
DEFINITIONS
to insure that funds provided in accordance with subsection (b) shall
be equitably allocated for jobs among the categories of eligible per-
SEC. 701. (a) As used in this Act, the term-
sons described in subsection (c) in light of the composition of the
(1) "Community-based organizations" means organizations
population of unemployed eligible persons served by the prime
which are representative of communities or significant segments
of the communities and which provide manpower services (for
sponsor. (f) In providing public service jobs and determining hours of work
example, Opportunities Industrialization Centers, Jobs for
for eligible persons with financial assistance provided in accordance
Progress, Mainstream, and Community Action Agencies).
with subsection (b), each prime sponsor shall take into account the
(2) "Governor" means the chief executive of any State.
household support obligations of the men and women applying for
(3) "Health care" includes, but is not limited to, preventive and
such jobs, and shall give special consideration to such alternative work-
clinical medical treatment, family planning services, nutrition
ing arrangements as flexible hours of work, shared time, and part-
services, and appropriate psychiatric, psychological, and pros-
time jobs, for eligible persons, particularly for parents of young chil-
thetic services, to the extent any such treatment or services are
dren and for older persons.
necessary to enable the recipient of manpower services to obtain
(g) The Secretary, through the affiliated State employment security
or retain employment.
agency, shall take steps to assure that each recipient of unemployment
(4) "Low-income level" means $7,000 with respect to income in
compensation benefits shall, upon the twelfth week of continuing to
1969, and for any later year means that amount which bears the
receive such benefits, be notified of the potential eligibility of such re-
same relationship to $7,000 as the Consumer Price Index for that
cipient for a public service job established with financial assistance
year bears to the Consumer Price Index for 1969, rounded to the
provided in accordance with subsection (b) but such notification shall
nearest $1,000.
clearly state that such recipient continues to be eligible for receipt of
(5) "Manpower allotment" means sums received by a State or
such benefits and that such notification is designed only to inform,
area under title I of this Act for any fiscal year (or, where
and in no way to. coerce such recipient, with respect to the potential
applicable, under title II of the Manpower Development and
availability of such jobs.
Training Act of 1962, and part B of title I of the Economic
(h) No funds under this Act may be used to provide public services,
Opportunity Act of 1964).
through a private or nonprofit organization or institution, which are
(6) "Offender" means any adult or juvenile who is confined in
customarily provided by a State, a political subdivision, or a local edu-
any type of correctional institution and also includes any indi-
cational agency in the area served by the project.
vidual or juvenile assigned to a community-based facility or
subject to pretrial, probationary, or parole or other stages of the
APPROVAL OF PROJECTS
judicial correctional or probationary process where manpower
training and services may be beneficial, as determined by the Sec-
SEC. 608. (a) In order for a project application submitted by a
retary, after consultation with judicial, correctional, probationary,
project applicant to be approved by the prime sponsor for financial
or other appropriate authorities.
assistance provided in accordance with subsection (b) of section 607,
(7) "Public service" includes, but is not limited to, work,
copies of such application shall have been submitted at the time of such
including part-time work for individuals who are unable, because
application to the prime sponsor's planning council established under
of age, handicap, or other factors, to work full time, in such
section 104, for the purpose of affording such council an opportunity
fields as environmental quality, health care, education, child care,
to submit comments and recommendations with respect to that appli-
public safety, crime prevention and control, prison rehabilitation,
cation to the prime sponsor. No member of a prime sponsor's planning
transportation. recreation. maintenance of parks, streets, and
council shall participate in the deliberations of such council with re-
other public facilities, solid waste removal, pollution control,
spect to any project in which that member (or any organization with
housing and neighborhood improvements, rural development.
which that member is associated) has a direct interest, or cast a vote
conservation. beautification. veterans outreach, and other fields of
on any matter in connection with such a project.
human betterment and community improvement.
(b) Consistent with procedures established by the prime sponsor in
(8) "Secretary" means the Secretary of Labor.
accordance with regulations which the Secretary shall prescribe, the
(9) "State" includes the District of Columbia, the Common-
prime sponsor shall not disapprove a project application submitted by
wealth of Puerto Rico, the Virgin Islands. Guam, American
recommendations made by the prime sponsor's planning council and
a project applicant unless it has first considered any comments and
Samoa, and the Trust Territorv of the Pacific Islands.
(10) "Unit of general local government" means any city,
unless it has afforded an opportunity for a hearing prior to final dis-
municipality, county. town, township. parish, village or other
approval of any such application.
general purpose political subdivision which has the power to levy
66
67
taxes and spend funds, as well as general corporate and police
EMERGENCY JOBS AND UNEMPLOYMENT ASSIST-
powers.
(11) "Underemployed persons" means-
ANCE ACT OF 1974 (PUBLIC LAW 93-567)
(A) persons who are working part-time but seeking full-
time work;
(B) persons who are working full-time but receiving wages
VETERANS' EMPLOYMENT PROVISIONS
below the poverty level determined in accordance with cri-
teria as established by the Director of the Office of Manage-
SEC. 104. (a) The Director of the Veterans' Employment Service,
ment and Budget.
Department of Labor established by section 2002 of title 38, United
(12) "Unemployed persons" means—
States Code together with the Secretary and Under Secretary of
(A) persons who are without jobs and who want and are
Labor and such Assistant Secretaries of Labor as the Secretary may
available for work; and
designate, shall be responsible for formulating and monitoring the
(B) except for purposes of sections 103 and 202, adults
implementation of all departmental policies and programs as they
who or whose families receive supplemental security income
affect veterans, especially those relating to unemployment, job train-
or money payments pursuant to a State plan approved under
ing, employment, and placement under any provision of law.
title I, IV, X, or XVI of the Social Security Act or would, as
(b) The Secretary of Labor, in consultation and cooperation with
defined in regulations to be issued by the Secretary, be eligi-
the Administrator of Veterans' Affairs and the Secretary of Health,
ble for such payments but for the fact that both parents are
Education, and Welafre, shall provide for an outreach and public
present in the home (1) who are determined by the Secretary
information program utilizing, to the maximum extent, the facilities
of Labor, in consultation with the Secretary of Health, Edu-
of the Departments of Labor and Health, Education, and Welfare
cation, and Welfare, to be available for work, and (2) who
and the Veterans' Administration in order to (A) exercise maximum
are either (i) persons without jobs, or (ii) persons working
efforts to produce jobs and job training opportunities for individuals
in jobs providing insufficient income to enable such persons
who served in the Armed Forces and were discharged within 4 years
and their families to be self-supporting without welfare
before the date of their application for such jobs or job training and
assistance;
inform all eligible veterans about employment, job training, on-the-job
and the determination of whether persons are without jobs shall
training, and educational opportunities, under the Comprehensive Em-
be made. in accordance with the criteria used by the Bureau of
ployment and Training Act of 1973, [as amended by this Act] as
Labor Statistics of the Department of Labor in defining persons
amended, as provided for under title 38, United States Code, and
as unemployed, but such criteria shall not be applied differently
under any other provision of law, and (B) inform all eligible appli-
on account of a person's previous employment.
cants under the Comprehensive Employment and Training Act of
(13) "Wagner-Peyser Act" means "An Act to provide for the
1973, Federal contractors and subcontractors, all Federal departments
establishment of a national employment system and for coopera-
and agencies, educational institutions, labor unions and other em-
tion with the States in the promotion of such system, and for other
ployers, of their responsibilities under this subsection and under all
purposes", approved June 6, 1933 (48 Stat. 113), as amended (29
such laws, and (C) provide the entities described in clause (B) of
U.S.C. 49 et seq.).
this subsection technical assistance in carrying out those responsi-
(14) "veterans outreach" means the veterans outreach services
bilities. The Secretary of Labor, in consultation and cooperation with
program carried out under subchapter IV of chapter 3 of title 38,
the Administrator of Veterans' Affairs and the Secretary of Health,
United States Code, with full utilization of veterans receiving
Education, and Welfare shall report to the appropriate committees
educational assistance or vocational rehabilitation under chapter
of the Congress not later than 90 days after the date of enactment of
31 or 34 of such title 38.
(15) "project applicants" includes States and agencies thereof, units
this Act on the steps taken and regulations issued to carry out the
of general local government and agencies thereof, special purpose po-
provisions of this section and of section 205 (c) (5) of the Compre-
hensive Employment and Training Act of 1973. They shall also re-
litical subdivisions having the power to levy taxes and spend funds or
serving such special purpose within an area served by one or more
port to such committees on the same subjects not later than ninety
units of general local government, local educational agencies as defined
days after the date of enactment of the Emergency Jobs Programs
Extension Act of 1976.
in section 801 (f) of the Elementary and Secondary Education Act of
*
1965, institutions of higher education as defined in section 1201 (a) of
the Higher Education Act of 1965, community-based organizations as
defined in paragraph (1) of this subsection, community development
corporations, nonprofit groups and organizations serving Indians or
Native Hawaiians, and other nonprofit private organizations or insti-
tutions engaged in public service.
68
69
TITLE II-SPECIAL UNEMPLOYMENT
shall be excluded to the extent that the individual is or was
ASSISTANCE PROGRAM
entitled to compensation for unemployment thereunder on the
basis of such employment and wages; and
STATEMENT OF PURPOSE
(2) the individual is totally or partially unemployed, and is
able to work, available for work, and seeking work, within the
SEC. 201. It is the purpose of this title to establish a temporary
meaning of, or as required by, the applicable State unemploy-
Federal program of special unemployment assistance for workers
ment compensation law, and is not subject to disqualification
who are unemployed during a period of aggravated unemployment
under that law; and
and who are not otherwise eligible for unemployment allowances
(3) the individual has filed a claim for assistance or waiting
under any other law.
period credit under this title; and
(4) in the area in which the individual was last employed for
GRANTS TO STATES: AGREEMENT WITH STATES
at least five work days prior to filing a claim under this title for
assistance or waiting period credit with respect to such week of
SEC. 202. Each State which enters into an agreement with the Secre-
unemployment, a special unemployment assistance period is in
tary of Labor, pursuant to which it makes payments of special unem-
effect with respect to such week of unemployment: Provided,
ployment assistance in accordance with the provisions of this title
That if the individual, except for the imposition of a disqualifi-
and the rules and regulations prescribed by the Secretary of Labor
cation in accordance with paragraph (2) was otherwise eligible
hereunder, shall be paid by the United States from time to time, prior
for a payment of assistance or waiting period credit under this
to audit or settlement by the General Accounting Office, such amounts
title with respect to a week of unemployment which began dur-
as are deemed necessary by the Secretary of Labor to carry out the
ing a special unemployment assistance period, but did not ex-
provisions of this title in the State. Assistance may be paid under this
haust entitlement to assistance during such period, entitlement
title to individuals only pursuant to such an agreement.
shall continue after the end of the period but no assistance shall
be paid under this title for any week of unemployment that begins
ELIGIBLE INDIVIDUALS
more than twenty-six weeks after the end of such period; and
SEC. 203. (a) An individual shall be eligible to receive a payment of
(5) the State in which the individual was last employed for at
least five work days period to filing a claim under this title for
assistance or waiting period credit with respect to a week of unem-
ployment occurring during and subsequent to a special unemploy-
assistance or waiting period credit with respect to such week of
ment assistance period in accordance with the provisions of this title
unemployment, has an agreement with the Secretary of Labor
under section 202 which is in effect with respect to such week of
if-
unemployment.
State or Federal unemployment compensation law (including
(1) the individual is not eligible for compensation under any
(b) An individual who performs services in an instructional, re-
search, or principal administrative capacity for an educational insti-
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et
tution or agency shall not be eligible to receive a payment of assistance
seq.)) with respect to such week of unemployment. and is not
receiving compensation with respect to such week of unemploy-
or a waiting period credit with respect to any week commencing during
ment under the unemployment compensation law of Canada and
the period between two successive academic years (or, when the con-
tract provides instead for a similar period between two regular but not
is not eligible for assistance or an allowance payable with respect
to such week of unemployment under such laws as the Public
successive terms, during such similar period) if-
Works and Economic Development Act Amendments of 1974, the
(1) such individual performed services in any such capacity
Disaster Relief Act of 1974. the Trade Expansion Act of 1962, as
for any educational institution or agency in the first of such
academic years or terms; and.
amended, or any successor legislation or similar legislation, as
determined by the Secretary: Provided, That the individual
(2) such individual has a contract to perform services in any
meets the qualifying employment and wage requirements of the
such capacity for any educational institution or agency for the
later of such academic years or terms.
applicable State unemployment compensation law in a base year
which, notwithstanding the State law, shall be the fifty-two-week
SPECIAL UNEMPLOYMENT ASSISTANCE PERIOD
period preceding the first week with respect to which the indi-
vidual: (1) files a claim for assistance or waiting period credit
SEC. 204. (a) A special unemployment assistance period shall com-
under this title: (2) is totally or partially unemployed; and (3)
mence in an area designated by the Secretary with the third week after
meets such qualifying employment and wage requirements: and
the first week for which the Secretary determines that there is an "on"
for the purpose of this proviso employment and wages which are
indicator for such area, and shall terminate with the third week after
not covered by the State law shall be treated as though they were
the first week for which the Secretary determines that there is an "off"
covered. except that employment and wages covered by any
indicator for such area except that no special unemployment assistance
State or Federal unemployment compensation law, including the
period shall have a duration of less than thirteen weeks.
Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.),
70
71
(b) The Secretary shall designate as an area under this section
areas served by an entity which is eligible to be a prime sponsor under
ment compensation law relating to fraud in connection with a
section 102 (a) of the Comprehensive Employment and Training Act
claim for unemployment compensation; and
of 1973 (Public Law 93-203).
(2) shall be subject to prosecution under section 1001 of title
(c) There is an "on" indicator in an area for a week if for the
18, United States Code.
most recent three consecutive calendar months for which data are
(d) (1) In the case of individuals who have received amounts of
available the Secretary determines that-
assistance under this title to which they were not entitled, the State is
(1) the rate (seasonally adjusted) of national unemployment
authorized to require such individuals to repay the amounts of such
averaged 6 per centum or more; or
(2) the rate of unemployment in the area averaged 6.5 per
such repayment if it determines that-
assistance to the State agency, except that the State agency may waive
centum or more.
(A) the payment of such assistance was without fault on the
(d) There is an "off" indicator for a week, if for the most recent
part of any such individual, and
three consecutive calendar months for which data are available the
conscience. (B) such repayment would be contrary to equity and good
Secretary determines that both subsections (c) (1) and (c) (2) are
not satisfied.
(2) The State agency may recover the amount to be repaid, or any
(e) The determinations made under this section shall take into
part thereof, by deductions from any assistance payable under this
account the rates of unemployment for three consecutive months, even
title or from any unemployment compensation payable to such indi-
though any or all of such months may have occurred not more than
vidual under any Federal unemployment compensation law admin-
three complete calendar months prior to the enactment of this Act.
istered by the State agency or under any other Federal law admin-
istered by the State agency which provides for the payment of any
WEEKLY BENEFIT AMOUNT
assistance or allowance with respect to any week of unemployment,
during the three-year period after the date such individuals received
SEC. 205. (a) The amount of assistance under this title to which an
the payment of the assistance to which they were not entitled, except
eligible individual shall be entitled for a week of unemployment shall
fit amount from which such deduction is made.
that no single deduction may exceed 50 percentum of the weekly bene-
be the weekly benefit amount for a week of unemployment that would
be payable to the individual as regular compensation as computed
(3) No repayment shall be required, and no deduction shall be
under the provisions of the applicable State unemployment compensa-
made, until a determination has been made, notice thereof and an
tion law: Provided, That in computing the weekly benefit amount
under this subsection the individual's base year, notwithstanding the
the determination has become final.
opportunity for a fair hearing has been given to the individual, and
State law, shall be the fifty-two-week period preceding the first week
with respect to which the individual: (1) files a claim for assistance
or (d) shall be subject to review in the same manner and to the same
(e) Any determination by a State agency under subsection (c)
or waiting period credit under this title; (2) is totally or partially
law, and only in that manner and to that extent.
extent as determinations under the State unemployment compensation
unemployed; and (3) meets the qualifying employment and wage
requirements of subsection (a) of section 203; and for the purpose of
this proviso employment and wages which are not covered by the
MAXIMUM BENEFIT AMOUNT
applicable State unemployment compensation law shall be treated as
though they were covered, except that employment and wages covered
SEC. 206. (a) Except as provided by subsection (b), the maximum
by any State or Federal unemployment compensation law, including
amount of assistance under this title which an eligible individual shall
the Railroad Unemployment Insurance Act (45 U.S.C. 351 et seq.),
be entitled to receive during any special unemployment assistance
shall be excluded to the extent that the individual is or was entitled
benefit year shall be 150 per centum of the maximum amount that
to compensation for unemployment thereunder on the basis of such
would have been payable to such individual during such benefit as
employment and wages.
computed under the provisions of the applicable State unemployment year
(b) Notwithstanding any provisions of State law, claims for assist-
ance under this title may be determined, where an employment record
benefit payable to the individual for a week of total unemployment
compensation law, but not exceeding thirty-nine times the weekly
is not available, on the basis of an affidavit submitted by an applicant.
(c) If an individual knowingly has made, or caused to be made by
the purposes of this subsection the individual's base year, notwithstand-
as determined under subsection (a) of section 205: Provided, That for
another, a false statement or representation of a material fact, or
knowingly has failed, or caused another to fail, to disclose a material
first week with respect to which the individual: (1) files a claim for
ing the State law, shall be the fifty-two-week period preceding the
fact, and as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of assis-
partially unemployed; and (3) meets the qualifying employment and
assistance or waiting period credit under this title; (2) is totally or
tance under this title to which he was not entitled, such individual-
wage requirements of section (a) and for the purpose of this
(1) shall be ineligible for further assistance under this title in
proviso employment and wages which are not covered by the State
accordance with the provisions of the applicable State unemploy-
law shall be treated as though they were covered, except that em-
ployment and wages covered by any State or Federal unemployment
72
73
conpensation law, including the Railroad Unemployment Insurance
Act (45 U.S.C. 351 et. seq.), shall be excluded to the extent that the
eral-State Extended Unemployment Compensation Act of 1970, and
individual is or was entitled to compensation for unemployment
claims filed under this title shall not be treated as claims for weeks of
thereunder on the basis of such employment and wages.
unemployment for purposes of determining the rate of insured unem-
(b) In the case of any individual who files a claim for assistance
ployment under section 203 (1) of such Act.
under this title during a benefit year which such individual has estab-
(c) Employment and wages which are not covered by the State
lished under any State unemployment compensation law, the maxi-
law may be treated, under sections 203 (a) (1), 205 (a), and 206 (a), as
mum amount of assistance under this title which such individual shall
though they were covered only if the employment-
be entitled to receive during the special unemployment assistance
(1) is performed by an employee (as defined in section 3121 (d)
benefit year established pursuant to such claim (as determined under
of the Internal Revenue Code of 1954), and
subsection (a) without regard to this subsection) shall be reduced by
(2) constitutes employment as determined under section
the amount of any unemployment compensation received during the
3306 (c) of such Code without regard to paragraphs (1) through
benefit year established under the State unemployment compensation
(9), (10) (B) (ii), (14), (15), and (17) of such section.
law.
For purposes of paragraph (2), section 3306 (c) of such Code shall be
APPLICABLE STATE LAW PROVISIONS
applied as if the term "United States" includes the Virgin Islands.
SPECIAL PROVISIONS
SEC. 207. Except where inconsistent with the provisions of this title,
the terms and conditions of the applicable State unemployment com-
SEC. 211. (a) DEFINITIONS.-For purposes of this section-
pensation law which apply to claims thereunder for regular compensa-
(1) "State" means the States of the United States, the District
tion and the payment thereof shall apply to claims for assistance
Islands; of Columbia, the Commonwealth of Puerto Rico, and the Virgin
under this title and the payment thereof.
(2) "compensation" means cash benefits payable to individuals
TERMINATION DATE
with respect to their unemployment, and includes "regular com-
pensation," "additional compensation," and "extended compensa-
SEC. 208. Notwithstanding any other provisions of this title, no
tion" as defined in section 205 of the Federal-State Extended
payment of assistance under this title shall be made to any individual
Unemployment Compensation Act of 1970;
with respect to any week of unemployment ending after March 31,
(3) "public service job" means any public service job funded
1977; and no individual shall be entitled to any compensation with
with assistance provided under the Comprehensive Employment
respect to any initial claim for assistance or waiting period credit made
and Training Act of 1973;
after December 31, 1976.
(4) "public service wages" means remuneration for services
perf ormed in a public service job;
AUTHORIZATION OF APPROPRIATIONS
(5) "base period" means the base period as determined under
the State law;
SEC. 209. There are hereby authorized to be appropriated for pur-
(6) "Secretary" means the Secretary of Labor;
poses of this title such sums as may be necessary.
(7) "State agency" means the agency of the State or political
subdivision which administers the State law; and
DEFINITIONS
(8) "State law" means the unemployment compensation law
SEC. 210. (a) As used in the title, the term-
of a State which has been approved by the Secretary of Labor
(1) "Secretary" means the Secretary of Labor;
under section 3304 (a) of the Internal Revenue Code of 1954 (26
(2) "State" means the States of the United States, the District
U.S.C. 3304 the unemployment compensation plan of a
of Columbia, Puerto Rico, and the Virgin Islands;
political subdivision of a State, and, with respect to the Virgin
(3) "applicable State unemployment compensation law" means
Islands. Islands, the unemployment compensation law of the Virgin
the law of the State in which the individual was last employed for
at least five work days prior to filing a claim for assistance or
(b) PAYMENTS TO STATES.-(1) Each State and political sub-
waiting period credit under this title;
division shall be paid by the United States, with respect to each in-
(4) "week" means a calendar week;
dividual whose base period wages include public service wages, an
(5) "State agency" means the agency of the State which ad-
amount which shall bear the same ratio to the total amount of com-
ministers the program established by this title; and
pensation paid to the individual with respect to weeks of unemploy-
(6) "special unemployment assistance benefit year" means the
ment which begin on and after January 1, 1976, as the amount of the
fifty-two week period beginning with the first week for which an
individual's public service wages in the base period with respect to the
individual files a valid claim for special unemployment assistance.
current benefit year (or most recent benefit year if there is no current
(b) Assistance under this title shall not be considered to be regular
benefit year) bears to the total base period wages used in the calcula-
compensation for purposes of qualifying for benefits under the Fed-
tion of the individual's rights to regular compensation.
(2) Each State and political subdivision shall be paid either in ad-
vance or by way of reimbursement, as may be determined by the Sec-
retary, the sum that the Secretary estimates is payable to the State or
74
political subdivision under this section for each calendar month. The
sum shall be reduced or increased by the amount which the Secretary
finds that his estimate for an earlier calendar month was greater or
less than the sum which should have been paid to the State or political
subdivision. Estimates shall be made on the basis of reports made by
the State agency to the Secretary as prescribed by the Secretary.
(3) The Secretary shall from time to time certify to the Secretary
of the Treasury for payment to each State or political subdivision
the sums payable under this section. The Secretary of the Treasury,
prior to audit or settlement by the General Accounting Office, shall
make payment in accordance with such certification, from the funds
appropriated for the purposes of title II of the Emergency Jobs and
Unemployment Assistance Act of 1974. Payment to a State shall be
made by crediting the payment to the State's account in the unem-
ployment trust fund.
(c) Repayment of Employers.-Notwithstanding the provisions of
any other law-
(1) a State or political subdivision shall repay to an employer
liable for making reimbursements to the unemployment fund of
the State or political subdivision the amount equal to the amount
by which the sums paid to the State or political subdivision un-
der subsection (b) of this section are duplicative of the employ-
er's reimbursements to the unemployment fund; and shall not
charge a reimbursing employer the amounts which are subject to
payment by the United States under subsection (b) of this sec-
tion; and
(2) a State or political subdivision shall repay to an employer
liable for contributions with respect to public service jobs and
public service wages, the total amount of the contributions paid
by the employer into the unemployment fund of the State or
political subdivision with respect to public service wages paid for
services performed in public service jobs on and after January 1,
1976, and shall not take into account, for the purposes of comput-
ing contribution rates for the employer, the compensation with
respect to which payment is made under subsection (b) of this
section, or the employment, wages, payrolls, or separations per-
taining to such compensation.
94TH CONGRESS
-
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 94-1019
EMERGENCY JOB PROGRAMS STOP-GAP EXTENSION
APRIL 8, 1976.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. PERKINS, from the Committee on Education and Labor,
submitted the following
REPORT
together with
ADDITIONAL, SUPPLEMENTAL, AND
INDIVIDUAL VIEWS
[To accompany H.R. 12987]
The Committee on Education and Labor, to whom was referred the
bill (H.R. 12987) to authorize appropriations for fiscal year 1976, and
for the period beginning July 1, 1976, and ending September 30, 1976,
for carrying out title VI of the Comprehensive Employment and
Training Act of 1973, and for other purposes, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
The amendment is as follows:
On page 1, immediately after line 7, insert the following:
"AUTHORIZATION OF APPROPRIATIONS
and on page 2, line 16, insert "of Labor" immediately after "Secre-
tary".
Explanation of the bill
This bill is a simple, stopgap extension of authority to appropriate
funds for the public service employment programs provided under
title VI of the Comprehensive Employment and Training Act of 1973
(CETA). The authority to appropriate is provided for fiscal year
1976 and for the period known as the "transition quarter" (July 1,
1976, through September 30, 1976).
The bill's only other provision lowers from 90 to 85 percent the
amount of public service employment funds that must be used for
57-006
2
3
wages and employment benefits. The remainder had been available
VI. Of the $2.7 billion now being spent annually for public service
for administrative costs as determined by the Secretary of Labor. The
jobs, $2.3 billion of that total (or 85%) is spent for jobs funded under
new provision specifically defines administrative costs to include the
title VI. Title VI was enacted in December of 1974 as a response to
purchase of necessary supplies, equipment and materials, and rental
dramatic increases in the national unemployment rate. Title II, on
costs.
the other hand, was enacted during a period of relatively low national
The extension of authority is provided in order to sustain the exist-
unemployment and was designed to deal with the kind of chronic,
ing program and job levels under title VI of CETA (approximately
high unemployment that always seems to exist in particular rural
273,000 out of the estimated total of 320,000 jobs under titles II and
areas and inner cities. The economists call this structural unemploy-
VI) through the transition quarter. Separate authority dealing with
ment; widespread national joblessness is called cyclical unemployment.
fiscal year 1977 has already passed the House (February 10, 1976).
Because they were designed for different purposes, the two pro-
grams have different characteristics and requirements. In the first
Need for the legislation
place, title II programs operate only in areas which have unemploy-
This legislation is urgently needed because all authority to ap-
ment rates in excess of 6.5 percent for 3 consecutive months. These
propriate under title VI of CETA expired on June 30, 1975, and the
areas are determined annually, and a new determination must be made
program will run completely out of funds on June 30 of this year
between now and July 1. The record high levels of unemployment
unless new authority is enacted in time for a title VI appropriation
experienced over the last 16 months resulted in a great many areas
to be included in the second supplemental. Some areas have already
qualifying last year for title II funds (such areas are known as "areas
begun to exhaust their title VI funds and still more will have done
of substantial unemployment" or ASU's). As unemployment goes
so between now and July.
down, of course, many of these areas will cease to qualify as ASU's,
The House has already passed legislation (February 10, 1976) ex-
which is entirely consistent with the purpose and design of title II.
tending existing title VI authority and adding new authority to ex-
Title VI, on the other hand, is distributed throughout the United
pand this program to a total of 600.000 jobs. This legislation has not
States. Since the program is countercyclical in purpose it is altogether
yet been acted upon in the other body, nor has it been marked up in
appropriate that it should be pervasive, although areas with excep-
committee. It is the failure of the other body to consider this measure
tionally high unemployment rates receive relatively more funds than
more expeditiously that has necessitated this emergency, stopgap legis-
do those with low rates.
lation. Meanwhile, the House is scheduled to act on the second supple-
Titles II and VI differ in other ways as well. For example, a pref-
mental appropriations bill on the 14th of this month. The best estimate
erence in hiring under title II is given to the long-term disadvantaged
is that the Appropriations Committee in the other body will begin
the person who has been out of work for a long period of time and
markup on the second supplemental during the first week of May. If
who has poor prospects of competing successfully in the labor market.
this is true, then quick enactment of continued title VI authority is
Title VI, however, gives a hiring preference to those who have ex-
imperative. Failure to do SO would jeopardize the possibility of in-
hausted their unemployment insurance benefits or those who are not
cluding in the second supplemental funds needed to continue title VI
eligible to receive unemployment compensation, in addition to the
beyond June 30, and would force a mass conversion from title VI
long-term unemployed. The people this program is designed to help
(which provides 85 percent of all existing public service jobs) to the
are not necessarily those who traditionally have trouble competing in
more restrictive title II. This can never be more than a partial solu-
the labor market, but rather those who are temporarily without work
tion with many adverse consequences. (An analysis of the differences
and expect to rejoin the labor force without much difficulty when gen-
between titles II and VI follows immediately after this section).
eral economic conditions improve.
The committee has recommended extension of title VI authority
Beyond this, more varied kinds of jobs can be performed under title
only through the "transition quarter" because it wants to give the
VI than under title II. Probably the most significant example of this
Congress an opportunity to expand job opportunities instead of keep-
is the authority in title VI which permits the employment of persons
ing them indefinitely at current levels. The bill that passed the House
to undertake small-scale capital improvements, such as the rehabilita-
(H.R. 11453) provided for a reform and expansion of the title VI pro-
tion, renovation, and repair of existing facilities and, in rural areas,
gram. Its aim was to raise the number of jobs now supported under
the new construction of water and sewer facilities.
titles II and VI of CETA from 320,000 to 600,000. This was consistent
Finally, it should be borne in mind that one cannot simply move an
with the Democratic leadership's program of economic stimulus and
individual from a title VI slot to a title II slot. Not only must that
within the guidelines and limits established by the second concurrent
individual meet all the different requirements of title II, both as to
resolution on the budget. That legislation is now expected to be acted
eligibility, preference and job characteristics. but no "paper" transfers
upon by the other body in mid-May.
are permitted either. This means that a person moving from title VI to
The difference between title II and title VI
title II would be subjected to a minimum 30-day layoff before he could
be rehired, even if he met the title II requirements.
Public service employment under CETA is divided into two parts.
The first is under title II; the second-and lion's share-is under title
4
5
Rehiring of persons laid off for bona fide reasons
Committee cost estimate
The Committee would like to remind members and the Adminis-
The committee has already indicated its belief that the annual cost
tration that in adopting CETA, and later in adopting title VI, the
per job under title VI of CETA is higher than the figure arrived at
Conferees made clear their intention that the rehiring of former em-
by C.B.O. (viz. H. Rept. 94-804). The committee's best estimate is that
ployees who had lost their jobs due to bona fide lay-offs were author-
the annual cost per job is approximately $8,500; this figure is also used
ized and permitted. The Conference Report accompanying CETA
by the Labor Department for its own planning purposes. The basic
(H. Rept. 93-737) contains the following statement: "The Confer-
purpose of this bill is to provide continued authority for title VI pro-
ees adopted both provisions with the understanding that the lan-
grams during the transition quarter. The current annual cost of such
guage in the Senate bill is not intended to preclude the " rehiring And of per- di-
programs is $2.3 billion. Therefore, the cost of maintaining this pro-
sons who have been laid off for bona fide reasons
more
gram through the transition quarter would be $575 million. In addi-
rectly on the point, the Conference Report accompanying the title VI
tion, if it is possible to appropriate any funds under title VI in fiscal
amendments (H. Rept. 93-1621) contained the following statement:
year 1976 to deal with the shortfall problems of those not aided by the
"The strong feeling of the conferees in opposition to 'paper lay-offs'
expected title II appropriation, the committee hopes that this will be
should in no way be construed to mean opposition to the rehiring of
done. The cost of such an appropriation could be as high as $200
laid off workers per se. The rehiring of former employees who lost
million
their jobs due to a bona fide lay off has always been permitted and is
in thousands
Title VI (CETA)
permitted here. The conferees also wish to point out that many govern-
Fiscal year 1976
$200,
ment employees will be in a preferred category for employment under
Transition quarter
575, 000
this Act by reason of their ineligibility for unemployment insurance
Fiscal year 1977 1
0
Fiscal year 1978
0
benefits. It should be further noted that the provisions of section 205
Fiscal year 1979
0
(c) (7) prohibiting the hiring of any person when any other person is
Fiscal year 1980
0
on lay-off from the same or substantially equivalent job still apply."
This recital of Congressional intent was precipitated by Field Mem-
Total
775,000
orandum 109-76 issued by the Labor Department on the subject of re-
1 There will be title VI costs in fiscal year 1977. They will be determined by the outcome
of H.R. 11453, and are not attributable to this bill.
hires. The Committee voted (21 aye, 6 no, 1 present) to express its
view in this report that nothing in the Comprehensive Employment
At the time of the filing of this report the committee had not
and Training Act of 1973 shall be construed to authorize any rule,
received a detailed estimate of cost from the administration.
policy, regulation or guideline imposing a numerical or percentage
limitation upon the rehiring of former employees who lose their jobs
Congressional Budget Office estimate
due to a bona fide lay off. In SO saying, the Committee is mindful of the
CONGRESS OF THE UNITED STATES,
provisions of section 208 (b) of CETA which calls upon the Secretary
CONGRESSIONAL BUDGET OFFICE,
to assure, to the extent practicable, that public service employment op-
Washington, D.C., April 7, 1976.
portunities are equitably distributed among "significant segments of
Hon. CARL D. PERKINS,
the population of unemployed persons, giving consideration to the rel-
Chairman. Committee on Education and Labor.
ative numbers of unemployed persons in each such segment." We do
U.S. House of Representatives, Washington, D.C.
not disavow the intent of this provision, but we do object most vigor-
DEAR MR. CHAIRMAN Pursuant to Section 403 of the Congressional
ously to its misinterpretation. The term "significant segment" was
Budget Act of 1974, the Congressional Budget Office has prepared the
never intended to relate to the nature of a person's previous employ-
attached cost estimate for H.R. 12987, the Emergency Job Programs
ment; it refers to the socio-economic characteristics of the unem-
Stop-Gap Extension.
ployed. The Conferees' intention was to urge the Secretary to use his
Should the Committee SO desire, we would be pleased to provide
discretion and judgment to see that, wherever practicable, minorities,
further details on the attached cost estimate.
youth, the elderly, women and other groups who have been the tradi-
Sincerely,
tional victims of job discrimination had equal access to jobs created
ALICE M. RIVLIN, Director.
under CETA. To claim otherwise is, at best. inaccurate. Furthermore,
Attachment.
the language of that section is SO clearly intended to give the Secretary
maximum flexibility to deal with individual situations on their merits,
CONGRESSIONAL BUDGET OFFICE-COST ESTIMATE
and that is what we call upon the Secretary to do. When the phrase "to
the extent practicable" is used it implies that a judgment should be
1. Bill number: H.R. 12987.
made about what makes sense, and that the Secretary should not ar-
2. Bill Title: Emergency Job Programs Stop-Gap Extension.
bitrarily tie his hands by issuing a set of guidelines that take away his
3. Purpose of Bill: This bill is a stop-gap extension of authority to
discretion and judgment.
appropriate funds for the public service employment programs pro-
vided under Title VI of CETA. The authority to appropriate is
7
6
ditions, such small expenditures in job creation cannot possibly
provided for fiscal year 1976 and for the transition quarter. The ex-
generate a demand for labor of sufficient magnitude to generate the
tension of authority is provided in order to sustain the existing pro-
kind of inflation associated with an insufficient supply of labor to meet
gram and job levels under Title VI of CETA through the transition
quarter. This bill is an authorization and does not directly provide
job demand. So long as prime sponsors continue to insist that the jobs
budget authority. Actual funding is subject to appropriations action.
performed under this authority provide needed public services there
4. Cost Estimate: H.R. 12987 authorizes that such sums as may be
will not be any inflation associated with them. Furthermore, during a
necessary for FY 1976 and the transition quarter be apropriated. The
period of substantial underutilization of the Nation's productive ca-
estimated costs associated with H.R. 12987 are $161 million for FY
pacity such small additions to net effective demand cannot be expected
1976 and $482 million for the transition quarter. Estimated Costs:
to have any effect on the general price level. And, finally, to the extent
Fiscal year 1976, $161 million, transition quarter, $482 million.
that persons paid wages under this title no longer receive governmental
5. Basis for estimate: The critical variables in estimating the costs
income support in some other form, such as unemployment insurance,
of H.R. 12987 are the cost per public employment job and the rate of
food stamps or welfare, there is actually a deflationary effect. In this
spendout likely during the remainder of FY 1976. It is assumed that
connection it is worth noting that wages paid to workers under this
enactment and appropriation for this bill will occur before the end
authority is fully taxable, while the transfer payments mentioned
above are not.
of May and expenditures of funds will begin in June. Estimated out-
lays stem from the costs of maintaining current benefit levels for the
SECTION-BY-SECTION ANALYSIS OF H.R. 12987, AS REPORTED
recent enrollment level of 274,210 in the Title VI program. The aver-
age annual cost per job in the Title VI program, including wages,
First section
benefits, and administrative costs, is $7,033. A monthly rate of $586
The first section of the bill provides that the act may be cited as the
per job based on this figure was used to calculate expected costs for the
"Emergency jobs program stopgap extension."
final month of FY 1976. For the transition quarter, an average cost
of $1,758 is expected to maintain the same level of services for each
Section 2
of the 274,210 program participants.
Section 2 of the bill amends title VI (Emergency job programs) of
6. Estimate comparison: Not applicable.
the Comprehensive Employment and Training Act of 1973 by striking
7. Previous CBO estimate. Not applicable.
out section 601 (Authorization of appropriations) and inserting in lieu
8. Estimate prepared by: Robert F. Black (225-4972).
thereof a new section 601 which authorizes to be appropriated to
9. Estimate approved by: James L. Blum, Assistant Director for
carry out title VI such sums as may be necessary for fiscal year 1976
Budget Analysis.
and for the period beginning July 1, 1976, and ending September 30,
Committee action
1976, and which provides that the provisions of section 4(b) (relating
It has already been explained that this bill provides stopgap
to the availability of appropriated funds which are not delegated or
authority between its enactment and the final enactment of H.R. 11453,
expended prior to the end of the fiscal year) of the Comprehensive
which was passed in the House on February 10, 1976. The hearings
Employment and Training Act of 1973 shall not apply to any amounts
held in connection with the earlier bill are detailed in the report
appropriated under the new section 601.
accompanying it (H. Rept. 94-804). H.R. 12987 was introduced on
Section 3
April 2, 1976. On April 6, 1976, the committee on Education and Labor
Section 3 of the bill provides that not less than 85 percent of funds
ordered the bill favorably reported by a voice vote.
allocated in accordance with and subject to the Comprehensive Em-
Oversight
ployment and Training Act of 1973 which are used by an eligible ap-
plicant for public service employment programs under title II and
No oversight findings or recommendations have been presented to
the committee by the Committee on Government Operations. The
title VI of that act shall be expended only for wages and employment
benefits to persons employed in public service jobs, and the remainder
oversight findings of the committee with respect to public service
may be used for administrative costs (including rental costs, within
employment programs were reflected in many provisions of the House-
such reasonable limitations as the Secretary of Labor may prescribe
passed bill (H.R. 11453). H.R. 12987 is a stopgap measure and, since
it provides only interim authority, does not attempt the kind of com-
with respect to rental of space) and to obtain necessary supplies,
equipment, and materials.
prehensive reform contained in the earlier bill.
InAationary impact
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
Total expenditures under this bill are estimated at $775 million.
"These amounts are required to maintain the existing job levels through
In compliance with clause 3 of rule XIII of the Rules of the House
the transition quarter. With unemployment at 7.5 percent nationally,
of Representatives, changes in existing law made by the bill, as re-
labor markets throughout the country remain loose. Under these con-
ported, are shown as follows (existing law proposed to be omitted is
8
enclosed in black brackets, new matter is printed in italics, existing law
in which no change is proposed is shown in roman)
:
COMPREHENSIVE EMPLOYMENT AND TRAINING AcT OF 1973
*
ADDITIONAL VIEWS
TITLE VI-EMERGENCY JOB PROGRAMS
The issue here does not revolve around the merits of public service
employment, but rather what reasonable expectations we can provide
AUTHORIZATION OF APPROPRIATIONS
localities that current enrollments will be maintained through fiscal
[SEC. 601. There are authorized to be appropriated $2,500,000,000
year 1977. Although we do not oppose enactment of this legislation
for fiscal year 1975 for carrying out the provisions of this title. Any
per se, we feel that extending the program for but a few months will
amounts SO appropriated for such fiscal year which are not obligated
not provide that needed assurance and will only continue to hold cur-
prior to the end of such fiscal year shall remain available for obliga-
rent PSE participants hostage to election-year politics.
It is argued in the report that the purpose of extending PSE
tion until December 31, 1975.
Sec. 601. There are authorized to be appropriated such sums as may
through the transition quarter is "because it wants to give Congress
be necessary for fiscal year 1976, and for the period beginning July 1,
the opportunity to expand job opportunities instead of keeping them
1976, and ending September 30, 1976, for carrying out the provisions
indefinitely at current levels." This is utter nonsense. Just how, do we
of this title. The provisions of Section 4(b) shall not apply to any
ask, does extending the existing program's authority through the end
of fiscal year 1977 preclude enactment of legislation to change it?
amounts appropriated under this section.
The answer is rather obvious. If we provided that assurance to over
*
300,000 Americans; namely, that their jobs will not suddenly disappear
out from under them on September 30, then who would support H.R.
11453-A 7.4 billion dollar boondoggle ostensibly designed to double
these so-called "job opportunities." Clearly, the authors of this bill
are desirous to force everyone to hang on a limb-including those
300,000 Americans currently employed, just to engender support for
their other spurious proposal. (H.R. 11453).
As we noted before, the Administration has already proposed a 1.7
billion dollar urgent supplemental appropriation to assure the con-
tinuation of current levels at least through the end of the calendar
year. We have suggested that such a continuation be made through the
end of fiscal year 1977, a suggestion that we have urged the House
Appropriations Committee to adopt in its next supplemental
appropriation.
As everyone clearly understands, such an appropriation would re-
solve the serious problems public service employment shortfalls affect-
ing a substantial number of prime sponsors, notwithstanding the fact
that title II targets the funds into areas of higher unemployment. And
secondly, we do not agree with the assertion made in the Report that
title II is somehow different than title VI. In theory, this might be
true-in practice it has not been the case. Ever since the Department of
Labor required prime sponsors to expend title II funds at a furious
pace toward the end of fiscal year 1975, title II and title VI have been
for all intents and purposes, identical countercyclical programs.
Wholesale transfer between title II and title VI is made every day by
prime sponsors with full Labor Department endorsement, despite these
so-called "differences." The Labor Department has allowed such
"blanketing" for years, which occurred in the transfer of the early
PEP program into CETA, and it is inconceivable that Congress would
now prohibit it.
(9)
H. Rept. 94-1019-2
10
It seems incongrous that we not hear about such "differences" when
not a sound was heard when DOL forced title II down the throats
of prime sponsors.
During floor action on this legislation we intend to offer an amend-
ment to continue the Title VI program without change through fiiscal
year 1977. This amendment would be identical to that which we offered
in the full committee and similar to that which we offered on H.R.
SUPPLEMENTAL VIEWS
11453.
The purpose of this amendment would be to assure that whatever
As we have stated, we do not oppose enactment of this legislation.
occurs in the next few months that localities will have some assurance
Even so, we wish to disassociate ourselves completely and without
that funding will be, or can be made available, quickly to prevent
reservation from the language spelling out the Committee's so-called
massive lay-offs from occuring.
"intent" regarding the Labor Department's policy on rehires.
In closing, we would like to point out the realities of this election
The pertinent part of this statement on intent pertaining to rehires
year-which is that it will continue to be unpredictable. Other legisla-
reads as follows:
tion, such as the full employment proposals and other CETA-related
The Committee voted
to express its view in this re-
bills may be passed, and subject to a veto fight. Nothing is certain.
port that nothing in the Comprehensive Employment and
Passage of H.R. 12987 will only assure that this uncertainty will pre-
Training Act of 1973 shall be construed to authorize any
vail at the expense of 300,000 Americans currently enrolled under
rule, policy, regulation or guideline imposing a numerical
public service employment. Not to provide assurances that their jobs
percentage limitation upon the rehiring of former employees
will not be lost to election-year tom-foolery would be the height of
who lose their jobs due to a bona-fide layoff
irresponsibility-and any party who fails to support those assurances
is being irresponsible.
This language is extraordinary-not in its inappropriateness to the
bill under consideration, and in its misstatements regarding Congres-
ALBERT H. QUIE.
JOHN M. ASHBROOK.
sional intent, but in its possible undermining of the basic premise of
JOHN N. ERLENBORN.
public service employment: namely, to help those most in need of a
MARVIN L. Esch.
job.
RONALD A. SARASIN.
It seems incredible to us that the authors of the original title VI
JAMES M. JEFFORDS.
program-designed to go first to those who have exhausted unemploy-
WILLIAM F. GOODLING.
ment insurance and to the long-term unemployed-would turn face
on those most in need by advocating a policy which benefits only one
group of individuals, namely government employees. Whatever hap-
pened ot those high-blown promises made to black unemployed, the
auto worker, the unemployed father who had exhausted all his bene-
fits, the welfare recipients? What has happened to our "concern" for
those most in need? Why are we SO afraid to serve those significant
segments of the unemployed-such as youth, minorities, and women
when the evidence shows that title VI is going toward everyone but
these needy groups?
Even without this added incentive to localities to abuse the pro-
gram, title VI has failed to reach those most in need of employment.
Ouly 1 in 4 at the time of enrollment was receiving either public
assistance or welfare-and many of those enrolled are perfectly qual-
ified to find employment without resorting to PSE.
As we have pointed out on several occasions, PSE has become little
more than disguised revenue sharing. If we are to provide such assist-
ance to localities, we do not believe we should fool the American people
by claiming that it will help the unemployed or have any significant
impact on reducing other federal expenditures or reducing unemploy-
ment. This is a myth and ought to be clearly revealed as such.
This language is absurd on two other counts. The first is that this
language not only misstates the law-and suffers from poor legal
thinking-it also undermines the clear intent of CETA to serve those
(11)
12
13
"segments" of the unemployed most in need of employment and opens
Finally, there is no precedent, as far as we are aware, of attempting
CETA to wholesale substitution of federal for local funds.
to include Committee report language that has no basis in the bill
On the question of the legal interpretation of existing title VI
under consideration. A Committee report is intended to describe the
statutory requirements, we would like to point out that nowhere in
intent of the Committee only insofar as it relates to the specific lan-
the law does there exist any specific direction on what policy the Sec-
guage of the legislation being reported. It is not to be used as a soap-
retary is to follow on the issue of rehires. What does exist, however,
box to decrease Congressional intent regarding existing law. As far as
explicitly directs the Secretary as to how he must use PSE funding.
we are concerned this language has no legal effect either as law or
As the Committee report points out, the requirements of section
legislative history.
208 (b) of CETA require the Secretary, to the extent practicable, to
RONALD A. SARASIN.
make public service employment available among significant segments
JAMES M. JEFFORDS.
of the population of unemployed persons on an equitable basis. Un-
WILLIAM F. GOODLING.
fortunately, the law is unclear as to what is meant by "significant seg-
ALBERT H. QUIE.
ments" of the unemployed, which, in absence of such direction, is any-
JOHN M. ASHBROOK.
thing the Secretary deems it to be. Secondly, the law stipulates that in
JOHN N. ERLENBORN.
submitting an application for the title II and title VI funds, prime
EDWIN D. ESHLEMAN.
sponsors are required to "include provisions for setting forth a de-
scription of the area to be served by such provisions and a plan for
effectively serving on an equitable basis the significant segments of
the population to be served." (section 205 (a) (c) (2))
A third provision in the law again protects against an inequitable
distribution of PSE funds. As section 205 (c) (8) stipulates "no funds
received under this title shall be used to hire any person to fill a job
vacancy created by the action of an employer not supported under this
title in anticipation of filling the vacancy SO created by hiring an em-
ployee to be supported under this title."
The only countervailing statement in the body of this law is section
205 (c) (7) which prohibits the hiring of any person "when another
person is on lay-off from the same or equivalent job."
Nowhere in the body of the law does there exist any specific dis-
cussion of rehiring of the sort envisioned, currently, by many locali-
ties. Absent such language, the Secretary therefore, has broad discre-
tion to pursue any policy "any such procedures as he may deem neces-
sary to carry out the provisions of this Act."
The authors of the Committee report language attempt to claim
that the language of the conference report on allowing rehiring for
bona-fide budgetary reasons somehow has precedence over section
(b) which requires an equitable distribution of job opportunities.
They also seem to infer that the language of the conference report
has percedence over the statute, which is not only silent on the issue
of rehiring for bona-fide reasons, but contains several specific statu-
tory requirements that the Secretary do otherwise.
We seriously doubt that any court would rule that this added lan-
guage would make any difference.
In adopting the policy contained in Field Memo 109-76, the Secre-
tary is carrying out the specific requirement of the law that the Sec-
retary distribute jobs on an equitable basis among the significant seg-
ments of the unemployed-and that he is doing SO to the extent prac-
ticable. In fact, we would suggest that the Secretary carry the policy
to the fullest extreme-to require that auto and construction workers,
that women and minorities, are the individuals benefiting from the
program.
INDIVIDUAL VIEWS OF THE HONORABLE MARIO
BIAGGI OF NEW YORK TO H.R. 12987
While I fully support this legislation, I wish to take this opportunity
to express my regret over the Senate's failure thus far, to act affirma-
tively on H.R. 11453. Contained in the latter proposal is important
language which will allow prime sponsors to give a preference in the
use of CETA funds to the rehiring of essential public health and
safety personnel. For New York City, it could mean the rehiring of
many of the thousands of police, firemen, correction officers and school
crossing guards who have become casualties of the City's extreme fiscal
crisis.
It is imperative that the House and Senate swiftly pass this legis-
lation which will extend the authority to appropriate funds under
title VI of CETA for three months. This authority expired on June 30,
1975 and already, more than 12,000 Americans have lost their public
service jobs and the number is expected to exceed 100,000 by the end of
May. Unless a new appropriation for title VI is included in the second
supplemental appropriations legislation, the entire title VI program
will expire on June 30-adding almost 300,000 new Americans to the
unemployment rolls.
The title VI program remains one of our strongest weapons in the
war against unemployment. This bill is for its survival. H.R. 11453 is
for its enhancement through expanded employment opportunities and
a recognition of the need to rehire essential public health and safety
personnel. Let us give these bills our immediate approval.
MARIO BIAGGI.
(15)
INDIVIDUAL VIEWS OF MR. ESCH
During the Full Committee mark-up, an effort was made to offer an
amendment to prohibit the Department of Labor from arbitrarily dis-
allowing the rehiring of public employees by localities suffering bona-
fide budget restraints. This amendment, which I strongly supported,
would have required the Department to look at each situation where
localities desired to use CETA funds to rehire laid-off employees, and
judge each request on the merits and not on the basis of an arbitrary
figure developed in the creative mind of some government bureaucrat.
This effort to amend the bill might not have been necessary had
Secretary of Labor, William J. Usery, followed my suggestion to delay
implementation of Field Memo 109-76, which contains the new depart-
mental policy on lavoffs, until such time as all parties could reasonably
discuss the potential impact of the policy, and to allow the Members of
Congress an opportunity to explain Congressional intent on the matter
of rehiring.
As it stands now, localities are limited, no matter what the status of
their financial situation. to rehiring only that percentage "which the
total laid-off regular employees constitute of the total unemployment
persons in the jurisdiction." (Page 6, Field Memo 109-76, U.S. Dept.
of Labor. March 31, 1976.) The legal arguments, and the clear viola-
tion of Congressional intent, is clearly spelled out in the Committee
Report and in the letter I wrote to the Secretary, which follows these
views. But more importantly, in the case of Detroit, Michigan, for
whose economic health and survival I have particular concern, the
application of this policy would be ruinous, and would grievously
impair the vitality. social and economic health of this struggling
city. It would most certainly assure that the City of Detroit would
not be able to maintain essential police and fire protection to its
citizens.
In advocating such a change in policy, I do not endorse the blanket
requirement to rehire now contained in H.R. 11453, the so-called
"Emergency Employment Projects Amendments of 1976.' This lan-
guage is indiscriminate and would encourage even economically
healthy cities to substitute wholesale federal for local dollars. What I
do support is a more reasoned approach by the Department of Labor
to those cities which do have serious economic problems-and not to
include them in an equally indiscriminate policy.
I would expect that the Secretary of Labor would recognize the
clear intent of the Committee when we state that "nothing in the Com-
prehensive Employment and Training Act of 1973 shall be construed
to authorize any rule, policy, regulation, or guideline imposing a nu-
merical percentage limitation upon the rehiring of former employees
who lose their jobs due to a bona-fide layoff."
(17)
18
CONGRESS OF THE UNITED STATES,
HOUSE OF REPRESENTATIVES,
Washington, D.C., April 2, 1976.
MR. W. J. USERY, JR.,
Secretary of Labor, Department of Labor,
Washington, D.C.
DEAR SECRETARY USERY: The purpose of this letter is to indicate
my deep concern over the arbitrary decision of the Chicago Regional
Office of the Department of Labor to limit the City of Detroit's use of
public service funds for maintaining essential city employees.
It is my understanding that unless the city is allowed to rehire
under Title VI that several hundred permanent city employees will
be permanently laid off.
Although I strongly support the need to prevent indiscriminate
substitution of federal for local funds, the Congress never indicated
any desire to prevent localities, faced with bona fide budgetary prob-
lems, from rehiring with CETA funds. I refer you to this clear state-
ment of intent contained in House Report 93-1621:
"The strong feelings of the conferees in opposition to 'paper layoffs'
should in no way be construed to mean opposition to rehiring of laid-
off workers per se. The rehiring of former employees who have lost
their jobs due to bona-fide budgetary reasons has always been permit-
ted and is permitted here
it should also be noted that the provisions
of Section 205 (c) (7) prohibiting the hiring of any persons when
another person is on lay-off from the same or equivalent job still
applies."
The exercising of an arbitrary across-the-board policy of allowing
only 10% of all CETA employees to be laid-off city personnel clearly
countervenes this intent. and would irreparably damage the level of
services provided the residents of Detroit by forcing the layoff of many
hundreds of permanent city employees.
I urge you to delay implementation of this policy to allow for a
thorough review of its compliance with Congressional policy, but more
importantly, its potential effect on the people of Detroit. I would invite
you and the appropriate members of the Department to meet with
me and officials of the City of Detroit to discuss this matter as soon
as such a meeting can be arranged.
Sincerely,
MARVIN L. EscH, Member of Congress.
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 94-1514
EMERGENCY JOBS PROGRAMS EXTENSION ACT
OF 1976
SEPTEMBER 13, 1976.-Ordered to be printed
Mr. PERKINS, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 12987]
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H.R. 12987) to
authorize appropriations for fiscal year 1976, and for the period begin-
ning July 1, 1976, and ending September 30, 1976, for carrying out
title VI of the Comprehensive Employment and Training Act of 1973,
and for other purposes, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the amendment of
the Senate to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following:
That this Act may be cited as the "Emergency Jobs Programs
Extension Act of 1976".
SEC 2. Title VI of the Comprehensive Employment and Training
Act of 1973 is amended by striking out section 601 and inserting in
lieu thereof the following:
"AUTHORIZATION OF APPROPRIATIONS
"Sec. 601. There are authorized to be appropriated such sums as
may be necessary for fiscal year 1976, and for the period beginning
July 1, 1976, and ending September 30, 1976, and for fiscal year 1977,
for carrying out the provisions of this title.".
SEC. 3. (a) (1) Section 203(b) of the Comprehensive Employment
and Training Act of 1973 is amended to read as follows:
"(b) Notwithstanding the provisions of section 208(a) (7) of this
Act, not less than 85 per centum of the funds allocated in accordance
with the provisions of this title which are used by an eligible applicant
(1)
2
3
for public service employment programs under this title shall be ex-
pended only for wages and employment benefits to persons employed
(3) Subsection (b) of section 603 of the Comprehensive Employ-
in public service jobs pursuant to this title, and the remainder of such
ment and Training Act of 1973 is amended by adding at the end of such
funds may be used for administrative costs, including rental costs
subsection the following new sentences: "In distributing funds avail-
(within such reasonable limitations as the Secretary may prescribe
able for the discretionary use of the Secretary of Labor under this
with respect to the rental of space), and to obtain necessary supplies,
subsection, the Secretary is authorized to utilize such funds to assure
equipment, and materials.".
a continuation of public service employment activities supported under
(2) Section 602(b) of the Comprehensive Employment and Train-
this Act. In distributing such funds under this subsection to prime
ing Act of 1973 is amended to read as follows:
sponsors, the Secretary shall base allocations upon the public service
" (b) Notwithstanding the provisions of section (7) of this
employment activities sustained within the jurisdiction of each unit of
Act, not less than 85 per centum of the funds allocated in accordance
general local government within the area served by each such prime
with the provisions of this title which are used by an eligible applicant
sponsor in accordance with subsection (c) of this section.".
for public service employment programs under this title shall be ex-
SEC. 5. (a) Title VI of the Comprehensive Employment and Train-
pended only for wages and employment benefits to persons employed
ing Act of 1973 is further amended by adding at the end thereof the
in public service jobs pursuant to this title, and the remainder of such
following new sections:
funds may be used for administrative costs, including rental costs
(within such reasonable limitations as the Secretary may prescribe
"RESERVATION OF FUNDS; EMPLOYMENT OF LONG-TERM UNEMPLOYED, LOW-
with respect to the rental of space), and to obtain necessary supplies,
INCOME PERSONS
equipment, and materials.".
(b) Section 704 of the Comprehensive Employment and Training
"SEC. 607. (a) Each prime sponsor, in accordance with regulations
Act of 1973 is amended by inserting at the end thereof the following
which the Secretary shall prescribe, shall reserve out of any alloca-
new subsection:
tion which it receives under this title from appropriations for fiscal
'(d) Financial records of a prime sponsor relating to public service
year 1977 such amount as will be sufficient, when added to funds avail-
employment programs assisted under this Act and records of the
able for use under title II of this Act during such fiscal year, to enable
names, addresses, positions, and salaries of all persons employed in
the prime sponsor to sustain throughout such fiscal year the number
public service jobs assisted under this Act shall be maintained and
of public service jobholders supported under this title and title II of
made available to the public.".
this Act on June 30, 1976.
SEC. 4(a) (1) With respect to appropriations made by the Emergency
(b) The amount of each prime sponsor's allocation under this title
Supplemental Appropriations Act of 1976 (Public Law 94-266, en-
remaining after funds are reserved for the purpose described in sub-
acted April 15, 1976) for the purpose of carrying out activities author-
section (a) of this section shall be used to provide public service jobs
ized by title II of the Comprehensive Employment and Training Act
for eligible unemployed persons (as described in section 608) in proj-
of 1973-
ects and activities carried out by project applicants (as defined in
(A) notwithstanding any other provision of law, funds made
section 701 (a) (15) of this Act). Such projects and jobs shall not ex-
available under section 202 (b) of the Comprehensive Employment
ceed twelve months in duration and shall provide employment con-
and Training Act of 1973 may be used in any areas qualifying
sistent with the aim of maintaining average federally supported wage
under title VI of such Act to provide a continuation of public
rates for public service jobholders (adjusted on a regional and area
service employment activities under both title II and title VI of
basis) as set forth under section 209(b) of this Act.
such Act; and
(c) Vacancies occurring after June 30, 1976, in jobs supported
(B) in order to enable persons employed in public service jobs
under this title and the Emergency Supplemental Appropriations
financially assisted under title VI of such Act to be transferred to
Act of 1976 (Public Law 94-266) to which subsection (a) of this sec-
jobs financially assisted under title II of such Act, the Secretary
tion is applicable shall be filed as follows:
of Labor is authorized to waive the provision of section 205 of
(1) Fifty per centum of such vacancies shall be filled in ac-
such Act requiring a thirty-day period of unemployment.
cordance with the provisions of section 608.
(2) The provisions of paragraph (1) of this subsection shall be
(2) Fifty per centum of such vacancies shall be filled in ac-
deemed to have taken effect on the date of enactment of the Emergency
cordance with the provisions of this title (other than the provi-
Supplemental Appropriations Act of 1976. Persons transferred after
sions of this section, except for this paragraph, and of sections
such date from jobs financially assisted under title VI of the Compre-
608 and 609) except that a prime sponsor may give preference in
hensive Employment and Training Act of 1973 to jobs financially
filling such vacancies to unemployed public health and safety person-
assisted under title II of such Act, using funds made available under
nel in public health and safety positions for which they are qualified.
the Emergency Supplemental Appropriations Act of 1976, shall after
the date of enactment of this Act be considered to be public service
"ELIGIBILITY OF LONG-TERM UNEMPLOYED LOW-INCOME PERSONS
jobholders financially assisted under such title VI.
"Sec. 608. (a) In filling public service jobs with financial assistance
available for the purposes of subsections (b) and (c) (1) of section
4
5
607, each prime sponsor shall determine that any person to be em-
tunity to submit comments and recommendations with respect to that
ployed in any such public service job (1) is an individual-
application to the prime sponsor. No member of a prime sponsor's
'(A) who has been receiving unemployment compensation for
planning council shall cast a vote on any matter in connection with a
fifteen or more weeks;
project in which that member (or any organization with which that
(B) who is not eligible for such benefits and has been unem-
member is associated) has a direct interest.
ployed for fifteen or more weeks;
"(b) Consistent with procedures established by the prime sponsor
(σ) who has exhausted unemployment compensation benefits;
in accordance with regulations which the Secretary shall prescribe,
or
the prime sponsor shall not disapprove a project application submitted
"(D) who is, or whose family is, receiving aid to families with
by a project applicant unless it has first considered any comments
dependent children provided under a State plan approved under
and recommendations made by the prime sponsor's planning council
part A of title IV of the Social Security Act;
and unless it has provided such applicant and the planning council
and (2) is not a member of a household which has current gross family
with a written statement of its reasons for such disapproval.".
income, adjusted an an annualized basis (exclusive of unemployment
(b) (1) Section 701 (a) of the Comprehensive Employment and
compensation and other public payments which such individual will be
Training Act of 1973 is amended by adding at the end thereof the fol-
disqualified from receiving by reason of employment under this title)
lowing new paragraph:
at a rate exceeding 70 per centum of the lower living standard income
(15) "project applicants' includes States and agencies thereof,
level.
units of general local government and agencies thereof or com-
"(b) For purposes of this section, the term 'lower living standard
binations or associations of such governmental units when the
income level' means that income level (adjusted for regional and metro-
primary purpose of such combinations or associations is to assist
politan and urban and rural differences and family size) determined
such governmental units to provide public services, special purpose
annually by the Secretary based upon the most recent 'lower living
political subdivisions having the power to levy taxes and spend
standard budget' issued by the Bureau of Labor Statistics of the De-
funds or serving such special purpose within an area served by
partment of Labor.
one or more units of general local government, local educational
(c) In filling public service jobs, each prime sponsor shall take
agencies as defined in section 801 (f) of the Elementary and Sec-
reasonable steps, which such sponsor shall determine, to insure that
ondary Education Act of 1965, institutions of higher education as
funds provided in accordance with subsections (b) and (c) (1) of sec-
defined in section 1201 (a) of the Higher Education Act of 1965,
tion 607 shall be equitably allocated for jobs among the categories
community-based organiaztions as defined in paragraph (1) of
of eligible persons described in section 608(a) in light of the composi-
this subsection, community development corporations, nonprofit
tion of the population of unemployed eligible persons served by the
groups and organizations serving Indians or Native Hawaiians,
prime sponsor.
and other nonprofit private organizations or institutions en-
"(d) In providing public service jobs and determining hours of
gaged in public service.".
work for eligible persons with financial assistance provided in ac-
(2) The last sentence of section 606 of the Comprehensive Employ-
cordance with subsections (b) and (c) (1) of section 607, each prime
ment and Training Act of 1973 is amended to read as follows "In real-
sponsor shall take into account the household support obligations of
locating any such funds, the Secretary shall give priority first to other
the men and women applying for such jobs, and shall give special
areas within the same State and then to areas within other States, tak-
consideration to such alternative working arrangements as flexible
ing into account the number of eligible unemployed individuals (as
hours of work, shared time, and part-time jobs, for eligible persons,
described in section 608) in such areas.".
particularly for parents of young children and for older persons.
(3) Section 605 of the Comprehensive Employment and Training
"(e) The Secretary, through the affiliated State employment secu-
Act of 1973 is amended by inserting after "projects and activities" a
rity agencies, shall take steps to inform the recipients of unemployment
comma and the following: "including projects and activities to be
compensation benefits of any available public service jobs for which
carried out by project applicants as defined in section 701 (a) (15) of
such recipients may be eligible, but such notification shall clearly
this Act,".
state that such notification is designed only to inform, and in no way
(c) Section 702 of the Comprehensive Employment and Training
to coerce, such recipients with respect to the availability of such jobs.
Act of 1973 is amended by adding at the end thereof the following new
subsection:
"APPROVAL OF PROJECTS
'(c) The Secretary shall not, by regulation or otherwise, impose
any quota or limitation on the number or percentage of persons hired
"SEC. 609. (a) In order for a project application submitted by a
under title II or VI, or both, of this Act who were former employees
project applicant to be approved by the prime sponsor for financial
of public employers under this Act and who held jobs supported under
assistance provided in accordance with subsection (b) of section 607,
title II or VI of this Act on June 30, 1976, or who are hired to fill
copies of such application shall have been submitted at the time of
vacancies under the provisions of section 607 (c) (2). Any person who,
such application to the prime sponsor's planning council established
between June 30, 1976, and the date of enactment of this Act, was laid
under section 104, for the purpose of affording such council an oppor-
off from a job supported under title II or VI of this Act by reason of
6
7
such a quota or limitation may be reinstated by the prime sponsor with-
for the payment of compensation on the basis of services performed
out regard to the provisions of section 607 (c). Nothing in this subsec-
in its employ, such political subdivision shall be entitled to payments
tion shall be construed to relieve any prime sponsor from complying
under this part in the same manner and to the same extent as if
with section 205 (c) (8) of this Act.".
such political subdivision were'a State.
(d) Section 605 of the Comprehensive Employment and Training
Act of 1973 is amended by inserting "(a)" after such section designa-
"STATE LAW PROVISIONS
tion and by adding at the end thereof the following new subsection:
'(b) No funds for public service employment programs under this
"SEC. 221. (a) The unemployment compensation law of any State
Act may be used to provide public services, through a private or non-
may provide that any organization which elects to make payments
profit organization or institution, which are customarily provided by
(in lieu of contributions) into the State unemployment compensation
a State, a political subdivision, or a local educational agency in the
fund-
area served by the project.".
"(1) shall not be liable to make such payments after the date
SEC. 6. (a) Title II of the Emergency Jobs and Unemployment
of the enactment of this section with respect to any compensa-
Assistance Act of 1974 is amended by adding at the end thereof the
tion to the extent that such State is entitled to payments with
following new part:
respect to such compensation under this part; and
(2) shall receive credit against payments required to be made
"PART B-REIMBURSEMENT FOR UNEMPLOYMENT BENEFITS PAID ON
after such date of enactment for any such payments made on or
BASIS OF PUBLIC SERVICE EMPLOYMENT
before such date of enactment to the extent that such payments
were made with respect to compensation for which the State is
"PAYMENTS TO STATES
entitled to receive payments under this part.
(b) The unemployment compensation law of any State may, with-
"SEC. 220. (a) Each State shall be paid by the United States with
out being deemed to violate the standards set forth in section 3303 (a)
respect to each individual-
"(1) who receives compensation with respect to any benefit
of the Internal Revenue Code of 1954, provide for appropriate adjust-
ments, as may be determined by the Secretary, in the account of any
year, and
(2) whose base period wages for such benefit year include
employer who has paid public service wages to reflect the payments
to which such State is entitled under this part with respect to com-
public service wages,
an amount which bears the same ratio to the total amount of com-
pensation attributable to such wages.
pensation paid to such individual with respect to such benefit year
"AUTHORIZATION OF APPROPRIATIONS
for weeks of unemployment which begin on or after January 1, 1976,
as the amount of the public service wages included in the individual's
"SEC. 222. There are hereby authorized to be appropriated for pur-
base period wages bears to the total amount of the individual's base
poses of this part such sums as may be necessary.
period wages.
'(b) Each State shall be paid, either in advance or by way of reim-
"DEFINITIONS
bursement, as may be determined by the Secretary, the sum that the
Secretary estimates is payable to such State under this part for each
"SEC. 223. A8 used in this part, the term-
calendar month. The sum shall be reduced or increased by the amount
(1) 'State' means the States of the United States, the Dis-
which the Secretary finds that his estimate for an earlier calendar
trict of Columbia, Puerto Rico, and the Virgin Islands;
month was greater or less than the sum which should have been paid to
(2) 'compensation' means cash benefits payable to individuals
the State. Estimates shall be made on the basis of reports made by
with respect to their unemployment, except that such term shall
the State to the Secretary as prescribed by the Secretary.
not include special unemployment assistance payable under part
(c) The Secretary shall, from time to time, certify to the Secre-
A;
tary of the Treasury the sum payable to each State under this part. The
(3) 'public service job' means any public service. job funded
Secretary of the Treasury, prior to audit and settlement by the Gen-
with assistance provided under the Comprehensive Employment
eral Accounting Office, shall pay the State in accordance with the cer-
and Training Act of 1973;
tification from funds for carrying out the purposes of this part.
"(4) 'public service wages' means remuneration for services
'(d) Money paid to a State under this part may be used solely for
performed in a public service job to the extent that such remu-
the purpose of paying compensation. Money 80 paid which is not used
neration is paid with funds provided under the Comprehensive
for such purpose shall be returned. at the time specified by the Secre-
Employment and Training Act of 1973;
tary, to the Treasury of the United States and credited to current ap-
(5) 'benefit year' means the benefit year as defined by the
plicable appropriations, funds, or accounts from which payments to
applicable State unemployment compensation law;
States under this part may be made.
(6) 'base period' means the base period as defined by the
"(e) In the case of any political subdivision of a State which has
applicable State unemployment compensation law for the benefit
in effect an unemployment compensation program which provides
year; and
8
9
"(7) 'Secretary' means the Secretary of Labor."
(b) Title II of such Act is further amended-
residing in areas of substantial unemployment who would otherwise
(1) by inserting after the heading of such title the following:
be eligible for public service employment under this Act. Such assist-
ance shall be in such form and amount as the Secretary deems appro-
"PART A-SPECIAL UNEMPLOYMENT ASSISTANCE";
priate for demonstration purpòses, except that he shall use as a general
guideline the form and amount of relocation assistance available under
(2) by striking out "this title" each place it appears and insert-
chapter 2 of title II of the Trade Act of 1974.".
ing in lieu thereof "this part"; and
SEC. 11. Section 704 of the Comprehensive Employment and Train-
(3) by striking out "the title" in section 210(a) and inserting
ing Act of 1973 (as amended by sections 3(b) and 9 of this Act) is
in lieu thereof "this title".
further amended by adding at the end thereof the following new
(c) The amendments made by this section shall take effect on Octo-
subsection:
ber 1, 1976, with respect to compensation paid for weeks of unemploy-
"(f) Notwithstanding any other provision of law, employment and
ment beginning after December 31, 1975.
training services furnished under this Act in connection with weather-
SEC. 7. Section 205 (c) (24) of the Comprehensive Employment
ization projects authorized under section 222 (a) (12) of the Economic
and Training Act of 1973 is amended by striking out "job category"
Opportunity Act of 1964 may include work on such projects for the
in both places where that term occurs in such clause and inserting in
near poor, including families having incomes which do not exceed 125
lieu thereof "promotional line".
per centum of the poverty line as established by section 625 of the
SEC. 8. (a) Section 602(e) of the Comprehensive Employment and
Economic Opportunity Act of 1964.".
Training Act of 1973 is amended by striking out "Indian tribes on
SEC. 12. (a) Section 104(b) of the Emergency Jobs and Unem-
Federal or State reservations" and inserting in lieu thereof "Indian
ployment Assistance Act of 1974 is amended by-
tribes, bands, and groups qualified under section 302(c) (1) of this
(1) striking out "by this Act" after "amended"; and
Act".
(2) inserting at the end of such subsection the following new
(b) Section 603 (a) of the Comprehensive Employment and Train-
sentence: "They shall also report to such committees on the same
ing Act of 1973 is amended by redesignating paragraphs (1) and (2)
subjects not later than ninety days after the date of enactment of
thereof as paragraphs (2) and (3), respectively, and by inserting
the Emergency Jobs Programs Extension Act of 1976.".
immediately after (a)' the following: "(1) The Secretary shall
(b) Title I of the Comprehensive Employment and Training Act
reserve an amount equal to not less than 2 per centum of the amounts
of 1973 is amended by-
appropriated under section 601 for any fiscal year to enable Indian
(1) inserting at the end of section 105(a) (3) the following
tribes, bands, and groups which are designated as eligible applicants
"and (E) provides such arrangements as may be appropriate to
under this title to carry out public service employment programs.".
promote maximum feasible use of apprenticeship or other on-job
(c) Section 603 (a) (2) of such Act, as redesignated by subsection
training opportunities available under section 1787 of title 38,
(b) of this section, is amended by inserting after "per centum" the
United States Code;"; and
following: "of the remainder".
(2) striking out in section (5) "provide special em-
SEC. 9. (a) Section 704 of the Comprehensive Employment and
phasis" and inserting in lieu thereof "take affirmative action".
Training Act of 1973 (as amended by section 3(b) of this Act) is
SEC. 13. (a) (1) The Congress finds and declares that-
further amended by adding at the end thereof the following new
(A) the reliable and comprehensive measurement of employ-
subsection:
ment and unemployment is vital to assessing the Nation's eco-
"(e) Notwithstanding any other provision of law, funds allocatea
nomic well-being and the utilization of its work force, and is an
by a prime sponsor or an Indian tribe, band, or group for the employ-
important determinant of public policies toward job creation,
ment of individuals under this Act may may be expended in conjunc-
education, training, assistance for the jobless, and other labor
tion with funds from any other public or private source, but funds
market programs;
allocated under this Act may only be expended in accordance with the
(B) the allocation of billions of dollars of Federal funds on
requirements of this Act.".
the basis of unemployment data is increasing, making even more
(b) The heading of such section 704 is amended to read as follows:
crucial the timely, accurate, and uniform measurement of the
labor force;
"SPECIAL PROVISIONS".
(C) the formulation of public policies to promote the most
effective use of our human resources is hindered by inadequate in-
SEC. 10. Section 311 of the Comprehensive Employment and Train-
formation on the utilization and effect of education and training
ing Act of 1973 is amended by adding at the end thereof the following
programs;
new subsection:
(D) in order for governmental and private sector policy de-
"(e) The Secretary is authorized to undertake projects (either di-
cisions to have maximum effect upon reducing unemployment
rectly or by grant or contract) for the purpose of demonstrating the
and strengthening the labor force, an accurate and precise system
feasibility of providing relocation assistance to unemployed workers
for measuring employment and unemployment and its impacts on
particular segments of the potential work force is essential;
10
11
(E) the current method of data collection and the form of its
out regard to the provisions of title 5, United States Code, governing
presentation, at national, regional, and subregional levels, may
appointments to the competitive service, governing appointments to
not fully reflect unemployment and employment trends, and may
the competitive service, and without regard to the provisions of chap-
produce incomplete and, therefore, misleading conclusions, thus
ter 51 and subchapter III of chapter 53 of such title relating to classifi-
impairing the validity and utility of this critical economic indi-
cation and General Schedule pay rates, but at rates not in excess of
cator;
the maximum rate of GS-18 of the General Schedule under section
(F) it is critical to retain public confidence in the procedures,
5332 of such title. The executive director, with the concurrence of the
concepts, and methodology of collecting, analyzing, and present-
Chairman, may obtain temporary and intermittent services of experts
ing employment and unemployment statistics; and
and consultants in accordance with the provisions of section 3109 of
(G) objectivity is a necessity in considering reform of statis-
title 5, United States Code. The Commission may utilize such staff,
tical processes.
with or without reimbursement, from the Department of Labor, the
(2) It is the purpose of this section to establish a National Com-
Department of Commerce, and such other appropriate Federal agen-
mission on Employment and Unemployment Statistics to have re-
cies as may be available to assist the Commission in carrying out its
sponsibility for examining the procedures, concepts, and methodology
responsibilities.
involved in employment and unemployment statistics and suggesting
(5) The Commission shall determine its own internal procedures,
ways and means of improving them.
including the constituting of a quorum.
(3) (1) There shall be established a National Commission on Em-
(6) The Commission is authorized to accept and utilize voluntary
ployment and Unemployment Statistics (hereinafter in this section
and uncompensated services notwithstanding the provisions of sec-
referred to as the "Commission") which shall consist of nine members
tion 665(b) of title 31, United States Code.
appointed by the President, by and with the advice and consent of the
(7) Members of the Commission who are not officers or employees
Senate. Seven of the members shall be selected on the basis of their
of the Federal Government shall be paid compensation at a rate of not
knowledge of and experience in the procedures, methodology, or use
to exceed the per diem equivalent of the rate for GS-18 of the General
of employment and unemployment statistics, and shall be broadly
Schedule under section 5332 of title 5, United States Code, when en-
representative of labor, business and finance, education and training,
gaged in the work of the Commission, including traveltime; and while
economics and statistics, and State and local government. Two of the
serving away from their homes or regular places of business, shall be
members shall be selected from the general public. The membership
allowed travel expenses including per diem in lieu of subsistence, in
of the Commission shall be generally representative of significant seg-
the same manner as such expenses are authorized by law (5 U.S.C.
ments of the labor force, including women and minority groups. Any
5703) for persons in the Government service employed intermittently.
vacancy in the Commission shall not affect its powers as long as there
(c) The Commission shall-
continues to be at least five members; and any such vacancy may be
(1) identify the needs of the Nation for labor force statistics
filled in the same manner as the original appointment is made.
and assess the extent to which current procedures, concepts, and
(2) Except when six members of the Commission shall vote to hold
methodology in the collection, analysis, and presentation of such
an executive session for a particular purpose, the Secretary of Labor,
statistics constitute a comprehensive, reliable, timely, and con-
the Secretary of Commerce, the Commissioner of Labor Statistics, the
sistent system of measuring employment and unemployment and
Director of the Bureau of the Census, the Director of the Office of
indicating trends therein; and
Management and Budget, the Chairman of the National Commission
(2) conduct or provide (through contract with institutions, or-
for Manpower Policy, the Chairman of the Council of Economic Ad-
ganizations, and individuals, or appropriate Federal or State
visers, and a majority and a minority member each of the Joint Eco-
agencies, or otherwise) for such studies, hearings, research, or
nomic Committee. of the Committee on Labor and Public Welfare
other activities as it deems necessary to enable it to formulate ap-
of the Senate, and of the Committee on Education and Labor of the
propriate recommendations.
House of Representatives, or in each case a designee, shall assist and
The commission or, on the authorization of the Commission, any sub-
participate in the hearings, deliberations, and other activities of the
committee or members thereof, may, for the purposes of carrying out
Commission on an advisory basis.
the provisions of this section, hold such hearings, take such testimony,
(3) The President shall designate a Chairman from among the
and sit and act at such times and places as the Commission deems ad-
appointed members of the Commission.
visable. Any member authorized by the Commission may administer
(4) The Chairman, with the concurrence of the Commission, shall
oaths or affirmations to witnesses appearing before the Commission or
appoint an executive director, who shall be the chief executive officer
any subcommittee or members thereof.
of the Commission and shall perform such duties as are prescribed
(d) (1) The Commission shall make a report of its findings and
by the chairman or the Commission. The executive director may ap-
recommendations to the President and the Congress within eighteen
point, with the concurrence of the Chairman, such professional, tech-
nical, and clerical staff as are necessary to carry out the provisions of
Commission. months after the date of appointment of the first five members of the
this section. The executive director and staff shall be appointed with-
(2) In preparing its report, the Commission shall consider the
following:
12
13
(A) The methodology of collection of employment and un-
tive agency and, within six months after the report's submission, shall
ployment data at all levels, including National, regional, State,
make an interim report to the Congress on-
and local statistics.
(1) the desirability, feasibility, and cost of implementing each
(B) The methodology of analysis of such data, including its
of the Commission's recommendations, and the actions taken or
relevance and application.
planned with respect to their implementation; and
(σ) The methodology of presentation of employment and un-
(2) recommendations with respect to any legislation proposed
employment statistics, including the dissemination, current utiliza-
by the Commission, the need for any alternative or additional leg-
tion, and application of such statistics.
islation to implement the Commission's recommendations, and any
(D) Alternative methods of such collection, analysis, and
other proposals to strengthen and improve the measurement of
presentation.
employment and unemployment.
(E) The need for additional special statistical surveys (includ-
Within two years after submission of the Commission's final report,
ing longitudinal studies) and reports on a continuing basis.
the Secretary shall submit a final report to the Congress detailing the
(F) The need for additional data and analysis on job vacanices,
actions taken with respect to the recommendations of the Commission,
job turnover, job matching, discouraged workers, part-time work-
together with any further recommendations deemed appropriate.
ers, youth, minorities, women, and other labor force participants.
(f) (1) Each department, agency, and instrumentality of the Federal
(G) Accuracy and uniformity of seasonal adjustments in all
Government is authorized and directed to cooperate fully with the
categories of labor force statistics.
Commission in furnishing appropriate information to assist the Com-
(H) Methods of achieving current, accurate, and uniform em-
mission in carrying out its functions under this section.
ployment and unemployment statistics on a State and local basis,
(2) The head of each department, agency, or instrumentality of the
including their use as a determinant of the allocation of Federal
Federal Government is authorized to provide such support and services
assistance.
to the Commission, upon request of the Chairman, as may be agreed
(I) The need for, and methods to obtain, data relating employ-
between the head of the department, agency, or instrumentality and
ment status and earnings, economic hardship, and family support
the Chairman.
obligations.
(g) The Commission shall cease to exist one hundred and eighty
(J) The extent to which employment and earnings data assist
days after submission of its final report as required under subsection
in determining the impact of public programs and policies upon
(d) (1) of this section.
persons who are economically disadvantaged, unemployed, or
(h) (1) There are authorized to be appropriated such sums as may
underemployed.
be necessary to carry out the provisions of this section.
(K) The availability of and need for periodic information on
(2) Notwithstanding any other provision of law, any funds appro-
education and training enrollments and completions in the public
priated to carry out this section which are not obligated prior to the
and private sectors.
end of the fiscal year for which such funds were appropriated shall
(L) Statistical indicators of the relationship between education
remain available for obligation during the succeeding fiscal year.
and training and subsequent employment, earnings, and unem-
SEC. 14. (a) Section 202 of the Comprehensive Employment and
ployment experience.
Training Act of 1973 is amended by adding at the end thereof the
(M) The value and usefulness of other statistics regarding
following new subsection:
employment and unemployment, such as those obtained through
"(c) Whenever the Secretary allocates any funds available under
operation of the unemployment insurance system.
subsection (b) of this section through a distribution based upon a
(N) The availability of and need for current and projected
formula, he shall, not later than 30 days prior to such allocation, pub-
occupational information, particularly on a local basis, to assist
lish in the Federal Register for comment the specific formula upon
youths and adults in making training, education, and career
which such distribution is based, the rationale supporting the selection
choices.
of the formula, and the proposed distribution to each prime sponsor.
(0) Such other matters as the Commission deems appropriate
fter consideration of comments received under the preceding sen-
or necessary, including such matters as are suggested by the Presi-
tence, the Secretary shall publish final allocations.".
dent or by the Congress that the Commission deems appropriate.
(b) Section 603 of such Act is amended by adding at the end thereof
(3) The Commission's report shall contain its findings and recom-
the following new subsection:
mendations, including a feasible schedule for their implementation,
(d) Whenever the Secretary allocates any funds available under
cost estimates, and any appropriate draft regulations and legislation
subsection (b) of this section through a distribution based upon a
to implement such recommendations.
formula, he shall, not later than 30 days prior to such allocation, pub-
(4) The Commission may make such interim reports or recom-
lish in the Federal Register the specific formula upon which such dis-
mendations as it may deem desirable.
tribution is based, the rationale behind the selection of the formula,
(e) Upon submission of the Commission's final report, the Secretary
and the proposed distribution for each prime sponsor. After consider-
of Labor shall take steps to ascertain the views of each affected execu-
ation of comments received under the preceding sentence, the Secretary
shall publish final allocations.".
14
SEC. 15. (a) The National Commission for Manpower Policy, estab-
lished under title V of the Comprehensive Employment and Training
Act of 1973, shall conduct a study of the net employment effects of the
public service employment programs authorized by title II and title
VI of the Comprehensive Employment and Training Act of 1973.
(b) The National Commission for Manpower Policy shall prepare
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE
and submit to the Congress not later than March 31, 1978, a report on
OF CONFERENCE
the study required by this section, together with such recommenda-
tions, including recommendations for legislation, as such Commission
The managers on the part of the House and the Senate at the con-
deems advisable.
ference on the disagreeing votes of the two Houses on the amendments
(c) There are authorized to be appropriated such sums as may be
of the Senate to the bill (H.R. 12987) to authorize appropriations for
necessary to carry out the provisions of this section.
fiscal year 1976, and for the period beginning July 1, 1976, and ending
And the Senate agree to the same.
September 30, 1976, for carrying out title VI of the Comprehensive
That the House recede from its disagreement to the amendment of
Employment and Training Act of 1973, and for other purposes, submit
the Senate to the title of the bill and agree to the same.
the following joint statement to the House and the Senate in explana-
CARL D. PERKINS,
tion of the effect of the action agreed upon by the managers and rec-
DOMINICK V. DANIELS,
ommended in the accompanying conference report:
JOHN H. DENT,
The Senate amendment struck out all of the House bill after the
JAMES G. O'HARA,
enacting clause and inserted a substitute text.
PHILLIP BURTON,
The House recedes from its disagreement to the amendment of the
JOSEPH M. GAYDOS,
Senate with an amendment which is a substitute for the House bill
EDWARD P. BEARD,
and the Senate amendment. The differences between the House bill,
A. F. HAWKINS,
the Senate amendment, and the substitute agreed to in conference are
WILLIAM LEHMAN,
noted below, except for clerical corrections, conforming changes made
LOYD MEEDS,
necessary by agreements reached by the conferees, and minor drafting
ALBERT H. QUIE,
and clarifying changes.
JOHN M. ASHBROOK,
1. The House bill may be cited as the "Emergency Job Programs
M. L. Esch,
Stop-Gap Extension"; the Senate amendment as the "Emergency
RONALD A. SARASIN,
Jobs Programs Extension Act of 1976."
JOHN N. ERLENBORN,
The House recedes.
Managers on the Part of the House.
2. The House bill authorizes "such sums" for fiscal year 1976 and for
the Transition Quarter (July through September 1976). The Senate
GAYLORD NELSON,
amendment includes the House bill's provision and extends the are-
EDWARD M. KENNEDY,
thorization through fiscal year 1977.
WALTER F. MONDALE,
The House recedes.
ALAN CRANSTON,
3. The House bill makes inapplicable to the new authorizations that
JENNINGS RANDOLPH,
section of CETA (section 4(b)) which provides that funds remain
WILLIAM D. HATHAWAY,
available for obligation for one year after appropriation and may be
HARRISON A. WILLIAMS, Jr.,
expended with a two year period after obligation. The Senate amend-
THOMAS F. EAGLETON,
ment has no comparable provision.
ROBERT TAFT, Jr.,
The House recedes.
JACOB K. JAVITS,
DICK SCHWEIKER,
4. The Senate amendment provides for the public disclosure of the
J. GLEN BEALL, Jr.,
names, addresses, and salaries of persons employed in public service
PAUL LAXALT,
jobs. The House bill has no comparable provision.
The House recedes.
Managers on the Part of the Senate.
5. The Senate amendment provides that the discretionary funds
available under the Title II supplemental appropriation enacted last
April may be used in areas not qualifying under Title II and that the
30 days of unemployment requirement in that Title may be waived by
the Secretary where necessary to transfer a person from a job funded
under Title VI to one funded under Title II. The House has no
comparable provision.
The House recedes.
(15)
16
17
6. The Senate amendment provides that the Secretary may use his
may give preference to the hiring of unemployed former public health
discretionary funds SO as to prevent layoffs of public service jobholders
and safety employees for public health and safety jobs.
supported under CETA.
The conference agreement also prohibits the Secretary of Labor
The House bill has no comparable provision.
from applying any quota or numerical restriction on the number of
The House recedes
rehired public service employees that may be employed in those jobs
The Senate amendment provides that the remaining discretionary
to which the new eligibility requirements do not apply. If any public
funds may be used for public service employment demonstation proj-
service employee has been laid off by a prime sponsor after June 30,
ects. The House bill has no comparable provision.
1976, but before the enactment of this legislation (at which time the
The Senate recedes.
provisions described in the preceding sentence will take effect), because
7. The Senate amendment provides that funds received by a prime
of such a quota, he may be rehired. However, the conference
sponsor in excess of those needed to maintain through FY 77 those
agreement makes plain that this provision in no way affects
employed in FY 76 shall be used to fund public service employment
the continuing prohibition against hiring any employee who was laid
projects for the long-term unemployed persons (or AFDC recipients)
off in anticipation that he be rehired under the Act.
who have low household income. The House bill has no comparable
The conference agreement provides that each prime sponsor shall
provision.
take steps which it determines will insure that the new jobs are equi-
The House recedes with an amendment.
tably allocated among the different categories of long term unem-
The conference agreement provides that each prime sponsor shall re-
ployed persons (and AFDC recipients) specified in the Act. The Con-
serve from the allocation made to it under any appropriation for title
ferees are aware that prime sponsors may lack data concerning the
VI for fiscal year 1977 an amount sufficient, when added to funds avail-
number of eligibles in each category but intend that prime sponsors
able for use under title II of this Act during such fiscal year, to enable
make a good faith effort to meet this requirement to the extent that
the prime sponsor to sustain the number of public service employees
such data is made available to them. The Conferees intend that the
that were employed under titles II and VI on June 30, 1976. Any jobs
Secretary issue no regulations imposing stricter requirements on prime
in excess of that number must be in a new program of employment
sponsors will respect to this equitable allocation requirement.
projects and activties with the eligibility limited to long-term unem-
The Conferees emphasize that the new program of work projects
ployed persons (or AFDC recipients) who have low household income.
for long-term unemployed persons from low-income families in no way
For purposes of determining income eligibility based on the "lower
diminishes the importance of CETA's existing maintenance-of-effort
living standard budget", the managers expect that the Secretary's
requirements, labor standards, or other provisions protecting the
regulations will provide that a period of three months prior to the
rights of existing employees.
date of hire shall be used and that the annualized income shall be ex-
The Conferees expect prime sponsors to provide a substantial portion
trapolated from that period. However, the Conferees recognize
of the project funds to nonprofit agencies which both insure that real,
that such a three month period mav be unrepresentative because of
new jobs are created and avoid the substitution of Federal funds for
seasonal employment, summer work for teenagers or other special
services customarily provided by State and local governments.
circumstances, and they expect that the Secretary's regulations will
A new requirement has been included in Section 605 (b) to prevent
take into account the fact that the three month period may not
prime sponsor from substituting Federal for State or local funds by
give a proper picture of annualized income. In determining house-
contracting out any of their customary services to nonprofit agencies
hold income, unemployment compensation received by the applicant
or by reducing their customary level of such services. Moreover, where
for the job is not to be used and neither are any public payments
State and local governments themselves operate projects, the Con-
received by the applicant from which that person will be disqualified
ferees expect strict enforcement of Sections 205 (c) (7), 205 (c) (8), and
when such individual is employed. such as, for example, under the
208 (a) (1) regarding maintenance-of-effort requirements. The Labor
program of aid to families with dependent children of unemployed
Department should carefully review the type of work performed by all
fathers.
of the projects in order to insure compliance with all such requirements.
With respect to any vacancies resulting from attrition below the
If administrative funds authorized under Section (b) are used
June 30, 1976, number of Titles II and VI jobholders for any prime
to pay the wages of supervisory personnel for the projects, the promo-
sponsor, the conference agreement provides that one-half of such
tional rights of existing employees to fill the supervisory positions
vacancies shall be filled by persons meeting the new long-term, low-
shall be protected.
income eligibility requirements. However, the project requirements do
Work performed on the projects must be compared with similar
not apply to these jobs.
work performed by regular employees of the same employer in order
The other half of the vacancies resulting from attrition may be
to establish appropriate prevailing wages for such work.
filled without regard to the new eligibility requirements and in accord-
Strict enforcement of these requirements is essential to prevent the
ance with other requirements of the Act except that prime sponsors
projects from undermining existing employment standards and agree-
ments.
19
18
8. The Senate amendment amended Title II of the Emergency
The Conferees note that, while the Senate provisions were initiated
Jobs and Unemployment Assistance Act (providing for the
originally to remedy a situation in 9 States that provide unemploy-
Special Unemployment Assistance program) to provide that unem-
ment insurance coverage of public employees (including public service
ployment benefits for certain laid-off public service employees shall
employees) under the regular State system, the provisions as passed
be a charge to that program rather than to CETA funds. It provided
by the Senate and as modified by the Conference agreement would
for each State to be reimbursed out of Title II funds for the amount of
impact in all States, to the extent that private, non-profit organizations
unemployment compensation paid on the basis of CETA public service
are employing public service employees under CETA. These provi-
employment after December 31, 1975. The Senate amendment further
sions, therefore, are addressed toward insuring that the States utilize
required the States or political subdivisions to reimburse the employers
the Federal reimbursements provided to adjust the accounts of all
for any amounts they have paid or will pay to provide unemployment
employers of public service employees-public agencies as well as
benefits for laid-off CETA workers, or, in the case of employers who
private, non-profit organizations.
participate in the State unemployment insurance system on a con-
9. The Senate amendment specifies that public service jobs in each
tributory basis (making regular contributions based upon an expe-
promotional line, rather than in each job category, not infringe on the
rience rating), to reimburse such employers for their contributions
promotional opportunities of existing employees. The House bill has
with respect to public service employees and adjust the experience
no comparable provision.
ratings of such employers accordingly. The House bill has no com-
The House recedes.
parable provisions.
10. The Senate amendment expands the definition of Indian tribes
The House recedes with an amendment making technical changes
eligible to receive Title VI funds by eliminating the restriction to
in the Senate language and the following substantive changes:
those tribes on "Federal or State reservations." The House bill has
The Conference agreement authorizes rather than requires the
no comparable provisions.
States to make appropriate adjustments in the accounts of affected
The House recedes.
individual employers. The Conference agreement also authorizes the
11. The Senate amendment provides that 4% of Title VI funds be
States to provide credits to such employers against existing or future
reserved for Indian programs. The House bill has no comparable
obligations, rather than reimbursements which would require with-
provision.
drawals from unemployment trust funds in order to make such reim-
The House recedes, with an amendment providing that 2 percent
bursements. In sum, the States would be authorized to:
of such funds be reserved for Indian public service employment
(1) waive any liability for future CETA unemployment insur-
programs.
ance claims against employing agencies, and
12. The Senate amendment provides that the Secretary of Labor
(2) apply a credit for past payments (since January 1, 1976)
shall provide, and shall assure that prime sponsors provide, financial
of CETA unemployment insurance claims against future unem-
assistance to community-based organizations of demonstrated effec-
ployment charges to the CETA employing agency.
tiveness, and shall seek to have other Federal agencies give them
The Conference agreement further provides for the Secretary of the
special consideration in administering job creation programs. The
Treasury to recapture any Federal funds which are paid to the States
House bill has no comparable provision.
and are not credited by the States to the accounts of the affected em-
The Senate recedes.
ployers. In addition, political subdivisions acting as proxies for the
13. The Senate amendment provides that public service employment
States in providing unemployment insurance benefits are to be treated
funds may be expended in conjunction with funds from other public
as if they were a State.
or private sources. The House bill has no comparable provision.
The Conference agreement is designed to avoid, to the maximum
The House recedes.
extent possible, the delays that would result from a necessity to amend
14. The Senate amendment provides for relocation assistance dem-
State laws to implement the purposes of these provisions. The Con-
onstration projects for unemployed workers. The House bill has no
ferees are depending heavily upon the States to promptly arrange
comparable provision.
administrative procedures for providing credits to the accounts of
The House recedes.
individual employers, SO as to avoid diversion of funds from providing
15. The Senate amendment authorizes CETA employees to work on
jobs to providing unemployment assistance. The Secretary of Labor
weatherization projects on homes of the near poor, including persons
is directed to act expeditiously to provide the States the necessary
with incomes up to 125 percent of the poverty level. The House bill has
guidance and assistance with respect to procedures for adjusting the
no comparable provision.
accounts of employers who are participating in the State system on a
The House recedes.
contributory basis. Utilizing procedures already established for cor-
16. The Senate amendment includes a definition of project appli-
recting erroneous contributions, for example, such adjustments might
cants for the purpose of the proposed new sectons of title VI. The
be made (in the case of contributing employers) by recomputing the
House bill contains no comparable provision.
experience rating of affected employers, disallowing the effect of lay-
The House recedes.
offs of public service employees on the computation.
20
21
17. The Senate amendment provides for a report on certain veteran's
23. The Senate amendment provides for a study of the net job-cre-
employment provisions 90 days-after enactment. The House bill has
ating impact of public service employment programs under CETA
no comparable provision.
by the National Commission for Manpower Policy (the existing Presi-
The House recedes.
dentially-appointed Commission established under title V of CETA).
18. The Senate amendment requires prime sponsor plans to promote
The House bill contains no comparable provision.
maximum use of the veterans' apprenticeship and on-the-job training
The House recedes.
program. The House bill has no comparable provision.
CARL D. PERKINS,
The House recedes with an amendment designed to make clear that
DOMINICK V. DANIELS,
prime sponsors shall provide such arrangements as may be appropriate
JOHN H. DENT,
to promote maximum feasible uses of these opportunities.
JAMES G. O'HARA,
The Conferees stress that this does not authorize the Secretary to
PHILLIP BURTON,
establish any quotas for prime sponsors' performance for carrying
EDWARD P. BEARD,
out the provisions of this section.
A. F. HAWKINS,
19. The Senate amendment provides for a National Commission on
WILLIAM LEHMAN,
Employment and Unemployment Statistics. The House bill has no
LLOYD MEEDS,
comparable provision.
ALBERT H. QUIE,
The House recedes with three minor amendments.
JOHN M. ASHBROOK,
20. The Senate Amendment provides for a reduction from 20 percent
M. L. Esch,
to 10 percent in the discretionary funds available to the Secretary of
RONALD A. SARASIN,
Labor under title II of CETA. The House bill contains no comparable
JOHN N. ERLENBORN,
provision.
Managers on the Part of the House.
The Senate recedes.
GAYLORD NELSON,
21. The Senate amendment provides that, in distributing public
EDWARD M. KENNEDY,
service employment funds which are set aside for use in the Secretary
WALTER F. MONDALE,
of Labor's discretion (10 percent of CETA title VI and 20 percent of
ALAN CRANSTON,
CETA title II), the Secretary shall, for purposes of receiving public
JENNINGS RANDOLPH,
comment, give 30 days notice in the Federal Register of the specific
WILLIAM D. HATHAWAY,
formula and the rationale upon which the proposed distribution of
HARRISON A. WILLIAMS, Jr.,
funds is based, and the proposed distribution to each prime sponsor.
THOMAS F. EAGLETON,
The House bill contains no comparable provision.
ROBERT TAFT, Jr.,
The House recedes with an amendment making clear that such pub-
JACOB K. JAVITS,
lication of a formula is required only if the Secretary chooses to dis-
DICK SCHWEIKER,
tribute discretionary funds by formula.
J. GLENN BEALL, Jr.
The Conferees wish to emphasize that it is not their purpose here
PAUL LAXALT,
to encourage the Secretary to distribute discretionary funds by for-
mula distribution. The Conferees believe that the discretionary funds
Managers on the Part of the Senate.
should be used in a genuinely discretionary manner, consistent with
o
the provisions of the Act. Specifically, the provision applicable to title
II discretionary funds (section 202 (b) of CETA) states: "The remain-
der may be distributed by the Secretary in his discretion taking into
account the severity of unemployment with such areas." Section (b)
of CETA, as amended by this legislation, provides for the use of title
VI discretionary funds "as the Secretary deems appropriate to carry
out the purposes of this title, taking into account changes in rates of
unemployment. In distributing funds available for the discretionary
use of the Secretary of Labor under this subsection, the Secretary is
authorized to utilize such funds to assure a continuation of public
service employment activities supported under this Act."
22. The Senate amendment authorizes financial assistance under
certain conditions for manpower services to projects involving the
operation of a business enterprise. The House bill contains no compa-
rable provision.
The Senate recedes.
H. R. 12987
Ainety-fourth Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the nineteenth day of January,
one thousand nine hundred and seventy-six
An Act
To authorize appropriations for carrying out title VI of the Comprehensive
Employment and Training Act of 1973, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Emergency Jobs Programs Extension Act of 1976".
SEC. 2. Title VI of the Comprehensive Employment and Training
Act of 1973 is amended by striking out section 601 and inserting in
lieu thereof the following:
"AUTHORIZATION OF APPROPRIATIONS
"Sec. 601. There are authorized to be appropriated such sums as
may be necessary for fiscal year 1976, and for the period beginning
July 1, 1976, and ending September 30, 1976, and for fiscal year 1977,
for carrying out the provisions of this title.".
SEC. 3. (a) (1) Section 203(b) of the Comprehensive Employment
and Training Act of 1973 is amended to read as follows:
"(b) Notwithstanding the provisions of section 208 (a) (7) of this
Act, not less than 85 per centum of the funds allocated in accordance
with the provisions of this title which are used by an eligible applicant
for public service employment programs under this title shall be
expended only for wages and employment benefits to persons employed
in public service jobs pursuant to this title, and the remainder of such
funds may be used for administrative costs, including rental costs
(within such reasonable limitations as the Secretary may prescribe
with respect to the rental of space), and to obtain necessary supplies,
equipment, and materials.".
(2) Section 602 (b) of the Comprehensive Employment and Train-
ing Act of 1973 is amended to read as follows:
" (b) Notwithstanding the provisions of section 208 (7) of this
Act, not less than 85 per centum of the funds allocated in accordance
with the provisions of this title which are used by an eligible applicant
for public service employment programs under this title shall be
expended only for wages and employment benefits to persons employed
in public service jobs pursuant to this title, and the remainder of such
funds may be used for administrative costs, including rental costs
(within such reasonable limitations as the Secretary may prescribe
with respect to the rental of space), and to obtain necessary supplies,
equipment, and materials.".
(b) Section 704 of the Comprehensive Employment and Training
Act of 1973 is amended by inserting at the end thereof the following
new subsection:
"(d) Financial records of a prime sponsor relating to public service
employment programs assisted under this Act and records of the
names, addresses, positions, and salaries of all persons employed in
public service jobs assisted under this Act shall be maintained and
made available to the public.".
H. R. 12987-2
SEC. 4. (a) (1) With respect to appropriations made by the Emer-
gency Supplemental Appropriations Act of 1976 (Public Law 94-266,
enacted April 15, 1976) for the purpose of carrying out activities
authorized by title II of the Comprehensive Employment and Train-
ing Act of 1973-
(A) notwithstanding any other provision of law, funds made
available under section 202 (b) of the Comprehensive Employ-
ment and Training Act of 1973 may be used in any areas qualify-
ing under title VI of such Act to provide a continuation of public
service employment activities under both title II and title VI of
such Act; and
(B) in order to enable persons employed in public service jobs
financially assisted under title VI of such Act to be transferred
to jobs financially assisted under title II of such Act, the Secre-
tary of Labor is authorized to waive the provision of section
205(a) of such Act requiring a thirty-day period of
unemployment.
(2) The provisions of paragraph (1) of this subsection shall be
deemed to have taken effect on the date of enactment of the Emer-
gency Supplemental Appropriations Act of 1976. Persons transferred
after such date from jobs financially assisted under title VI of the
Comprehensive Employment and Training Act of 1973 to jobs finan-
cially assisted under title II of such Act, using funds made available
under the Emergency Supplemental Appropriations Act of 1976, shall
after the date of enactment of this Act be considered to be public
service jobholders financially assisted under such title VI.
(b) Subsection (b) of section 603 of the Comprehensive Employ-
ment and Training Act of 1973 is amended by adding at the end of such
subsection the following new sentences: "In distributing funds avail-
able for the discretionary use of the Secretary of Labor under this
subsection, the Secretary is authorized to utilize such funds to assure
a continuation of public service employment activities supported under
this Act. In distributing such funds under this subsection to prime
sponsors, the Secretary shall base allocations upon the public service
employment activities sustained within the jurisdicton of each unit of
general local government within the area served by each such prime
sponsor in accordance with subsection (c) of this section.".
SEC. 5. (a) Title VI of the Comprehensive Employment and Train-
ing Act of 1973 is further amended by adding at the end thereof the
following new sections:
"RESERVATION OF FUNDS; EMPLOYMENT OF LONG-TERM UNEMPLOYED,
LOW-INCOME PERSONS
"SEC. 607. (a) Each prime sponsor, in accordance with regulations
which the Secretary shall prescribe, shall reserve out of any alloca-
tion which it receives under this title from appropriations for fiscal
year 1977 such amount as will be sufficient, when added to funds
available for use under title II of this Act during such fiscal year,
to enable the prime sponsor to sustain throughout such fiscal year
the number of public service jobholders supported under this title and
title II of this Act on June 30, 1976.
(b) The amount of each prime sponsor's allocation under this title
remaining after funds are reserved for the purpose described in sub-
section (a) of this section shall be used to provide public service jobs
for eligible unemployed persons (as described in section 608) in proj-
H. R. 12987-3
ects and activities carried out by project applicants (as defined in
section 701 (a) (15) of this Act). Such projects and jobs shall not
exceed twelve months in duration and shall provide employment con-
sistent with the aim of maintaining average federally supported wage
rates for public service jobholders (adjusted on a regional and area
basis) as set forth under section 209 (b) of this Act.
(c) Vacancies occurring after June 30, 1976, in jobs supported
under this title and the Emergency Supplemental Appropriations
Act of 1976 (Public Law 94-266) to which subsection (a) of this
section is applicable shall be filled as follows:
'(1) Fifty per centum of such vacancies shall be filled in
accordance with the provisions of section 608.
"(2) Fifty per centum of such vacancies shall be filled in accord-
ance with the provisions of this title (other than the provisions of
this section, except for this paragraph, and of sections 608 and
609) except that a prime sponsor may give preference in filling
such vacancies to unemployed public health and safety personnel
in public health and safety positions for which they are qualified.
"ELIGIBILITY OF LONG-TERM UNEMPLOYED, LOW-INCOME PERSONS
"SEC. 608. (a) In filling public service jobs with financial assistance
available for the purposes of subsections (b) and (c) (1) of section
607, each prime sponsor shall determine that any person to be employed
in any such public service job (1) is an individual-
"(A) who has been receiving unemployment compensation for
fifteen or more weeks;
"(B) who is not eligible for such benefits and has been unem-
ployed for fifteen or more weeks;
(C) who has exhausted unemployment compensation benefits;
or
(D) who is. or whose family is, receiving aid to families with
dependent children provided under a State plan approved under
part A of title IV of the Social Security Act:
and (2) is not a member of a household which has current gross family
income, adjusted to an annualized basis (exclusive of unemployment
compensation and other public payments which such individual will be
disqualified from receiving by reason of employment under this title)
at a rate exceeding 70 per centum of the lower living standard income
level.
"(b) For purposes of this section, the term 'lower living standard
income level' means that income level (adjusted for regional and metro-
politan and urban and rural differences and family size) determined
annually by the Secretary based upon the most recent 'lower living
standard budget' issued by the Bureau of Labor Statistics of the
Department of Labor.
"(c) In filling public service jobs, each prime sponsor shall take
reasonable steps, which such sponsor shall determine, to insure that
funds provided in accordance with subsections (b) and (c) (1) of sec-
tion 607 shall be equitably allocated for jobs among the categories
of eligible persons described in section 608(a) in light of the composi-
tion of the population of unemployed eligible persons served by the
prime sponsor.
"(d) In providing public service jobs and determining hours of
work for eligible persons with financial assistance provided in accord-
ance with subsections (b) and (c) (1) of section 607, each prime spon-
sor shall take into account the household support obligations of the
H. R. 12987-4
men and women applying for such jobs, and shall give special con-
sideration to such alternative working arrangements as flexible hours
of work, shared time, and part-time jobs, for eligible persons, particu-
larly for parents of young children and for older persons.
'(e) The Secretary, through the affiliated State employment secu-
rity agencies, shall take steps to inform the recipients of unemployment
compensation benefits of any available public service jobs for which
such recipients may be eligible, but such notification shall clearly state
that such notification is designed only to inform, and in no way to
coerce, such recipients with respect to the availability of such jobs.
"APPROVAL OF PROJECTS
"SEC. 609. (a) In order for a project application submitted by a
project applicant to be approved by the prime sponsor for financial
assistance provided in accordance with subsection (b) of section 607,
copies of such application shall have been submitted at the time of
such application to the prime sponsor's planning council established
under section 104, for the purpose of affording such council an oppor-
tunity to submit comments and recommendations with respect to that
application to the prime sponsor. No member of a prime sponsor's
planning council shall cast a vote on any matter in connection with a
project in which that member (or any organization with which that
member is associated) has a direct interest.
(b) Consistent with procedures established by the prime sponsor
in accordance with regulations which the Secretary shall prescribe,
the prime sponsor shall not disapprove a project application submitted
by a project applicant unless it has first considered any comments
and recommendations made by the prime sponsor's planning council
and unless it has provided such applicant and the planning council
with a written statement of its reasons for such disapproval.".
(b) (1) Section 701(a) of the Comprehensive Employment and
Training Act of 1973 is amended by adding at the end thereof the
following new paragraph:
"(15) 'project applicants' includes States and agencies thereof,
units of general local government and agencies thereof or com-
binations or associations of such governmental units when the
primary purpose of such combinations or associations is to assist
such governmental units to provide public services, special purpose
political subdivisions having the power to levy taxes and spend
funds or serving such special purpose within an area served by
one or more units of general local government, local educational
agencies as defined in section 801(f) of the Elementary and Sec-
ondary Education Act of 1965, institutions of higher education as
defined in section 1201(a) of the Higher Education Act of 1965,
community-based organizations as defined in paragraph (1) of
this subsection, community development corporations, nonprofit
groups and organizations serving Indians or Native Hawaiians,
and other nonprofit private organizations or institutions engaged
in public service.".
(2) The last sentence of section 606 of the Comprehensive Employ-
ment and Training Act of 1973 is amended to read as follows: "In
reallocating any such funds, the Secretary shall give priority first to
other areas within the same State and then to areas within other
H. R. 12987-5
States, taking into account the number of eligible unemployed indi-
viduals (as described in section 608) in such areas.".
(3) Section 605 of the Comprehensive Employment and Training
Act of 1973 is amended by inserting after "projects and activities" a
comma and the following: "including projects and activities to be
carried out by project applicants as defined in section 701(a) (15) of
this Act,".
(c) Section 702 of the Comprehensive Employment and Training
Act of 1973 is amended by adding at the end thereof the following new
subsection:
"(c) The Secretary shall not, by regulation or otherwise, impose
any quota or limitation on the number or percentage of persons hired
under title II or VI, or both, of this Act who were former employees
of public employers under this Act and who held jobs supported under
title II or VI of this Act on June 30, 1976, or who are hired to fill
vacancies under the provisions of section 607 (c) (2). Any person who,
between June 30, 1976, and the date of enactment of this Act, was laid
off from a job supported under title II or VI of this Act by reason of
such a quota or limitation may be reinstated by the prime sponsor
without regard to the provisions of section 607 (c). Nothing in this
subsection shall be construed to relieve any prime sponsor from com-
plying with section 205 (c) (8) of this Act.".
(d) Section 605 of the Comprehensive Employment and Training
Act of 1973 is amended by inserting "(a)" after such section desig-
nation and by adding at the end thereof the following new subsection:
"(b) No funds for public service employment programs under this
Act may be used to provide public services, through a private or non-
profit organization or institution, which are customarily provided by
a State, a political subdivision, or a local educational agency in the
area served by the project.".
SEC. 6. (a) Title II of the Emergency Jobs and Unemployment
Assistance Act of 1974 is amended by adding at the end thereof the
following new part:
"PART B-REIMBURSEMENT FOR UNEMPLOYMENT BENEFITS PAID ON
BASIS OF PUBLIC SERVICE EMPLOYMENT
"PAYMENTS TO STATES
"SEC. 220. (a) Each State shall be paid by the United States with
respect to each individual-
"(1) who receives compensation with respect to any benefit
year, and
"(2) whose base period wages for such benefit year include
public service wages,
an amount which bears the same ratio to the total amount of com-
pensation paid to such individual with respect to such benefit year
for weeks of unemployment which begin on or after January 1, 1976,
as the amount of the public service wages included in the individual's
base period wages bears to the total amount of the individual's base
period wages.
"(b) Each State shall be paid, either in advance or by way of reim-
bursement, as may be determined by the Secretary, the sum that the
Secretary estimates is payable to such State under this part for each
calendar month. The sum shall be reduced or increased by the amount
H. R. 12987-6
which the Secretary finds that his estimate for an earlier calendar
month was greater or less than the sum which should have been paid to
the State. Estimates shall be made on the basis of reports made by
the State to the Secretary as prescribed by the Secretary.
"(c) The Secretary shall, from time to time, certify to the Secre-
tary of the Treasury the sum payable to each State under this part. The
Secretary of the Treasury, prior to audit and settlement by the Gen-
eral Accounting Office, shall pay the State in accordance with the cer-
tification from funds for carrying out the purposes of this part.
"(d) Money paid to a State under this part may be used solely for
the purpose of paying compensation. Money SO paid which is not used
for such purpose shall be returned, at the time specified by the Secre-
tary, to the Treasury of the United States and credited to current
applicable appropriations, funds, or accounts from which payments to
States under this part may be made.
"(e) In the case of any political subdivision of a State which has
in effect an unemployment compensation program which provides for
the payment of compensation on the basis of services performed in
its employ, such political subdivision shall be entitled to payments
under this part in the same manner and to the same extent as if
such political subdivision were a State.
"STATE LAW PROVISIONS
"SEC. 221. (a) The unemployment compensation law of any State
may provide that any organization which elects to make payments
(in lieu of contributions) into the State unemployment compensation
fund—
"(1) shall not be liable to make such payments after the date
of the enactment of this section with respect to any compensa-
tion to the extent that such State is entitled to payments with
respect to such compensation under this part; and
(2) shall receive credit against payments required to be made
after such date of enactment for any such payments made on or
before such date of enactment to the extent that such payments
were made with respect to compensation for which the State is
entitled to receive payments under this part.
"(b) The unemployment compensation law of any State may, with-
out being deemed to violate the standards set forth in section 3303 (a)
of the Internal Revenue Code of 1954, provide for appropriate adjust-
ments, as may be determined by the Secretary, in the account of any
employer who has paid public service wages to reflect the payments
to which such State is entitled under this part with respect to com-
pensation attributable to such wages.
"AUTHORIZATION OF APPROPRIATIONS
"SEC. 222. There are hereby authorized to be appropriated for pur-
poses of this part such sums as may be necessary.
"DEFINITIONS
"SEC. 223. As used in this part, the term-
"(1) 'State' means the States of the United States, the Dis-
trict of Columbia, Puerto Rico, and the Virgin Islands;
H. R. 12987-7
'(2) 'compensation' means cash benefits payable to individuals
with respect to their unemployment, except that such term shall
not include special unemployment assistance payable under part
A;
(3) 'public service job' means any public service job funded
with assistance provided under the Comprehensive Employment
and Training Act of 1973;
"(4) 'public service wages' means remuneration for services
performed in a public service job to the extent that such remu-
neration is paid with funds provided under the Comprehensive
Employment and Training Act of 1973;
"(5) 'benefit year' means the benefit year as defined by the
applicable State unemployment compensation law;
(6) 'base period' means the base period as defined by the
applicable State unemployment compensation law for the benefit
year; and
"(7) 'Secretary' means the Secretary of Labor."
(b) Title II of such Act is further amended-
(1) by inserting after the heading of such title the following:
"PART A-SPECIAL UNEMPLOYMENT ASSISTANCE";
(2) by striking out "this title" each place it appears and insert-
ing in lieu thereof "this part"; and
(3) by striking out "the title" in section 210(a) and inserting
in lieu thereof "this title".
(c) The amendments made by this section shall take effect on Octo-
ber 1, 1976, with respect to compensation paid for weeks of unemploy-
ment beginning after December 31, 1975.
SEC. 7. Section 205 (c) (24) of the Comprehensive Employment and
Training Act of 1973 is amended by striking out "job category" in
both places where that term occurs in such clause and inserting in lieu
thereof "promotional line".
SEC. 8. (a) Section 602(e) of the Comprehensive Employment and
Training Act of 1973 is amended by striking out "Indian tribes on
Federal or State reservations" and inserting in lieu thereof "Indian
tribes, bands, and groups qualified under section 302(c) (1) of this
Act".
(b) Section 603 (a) of the Comprehensive Employment and Train-
ing Act of 1973 is amended by redesignating paragraphs (1) and (2)
thereof as paragraphs (2) and (3), respectively, and by inserting
immediately after "(a)" the following: "(1) The Secretary shall
reserve an amount equal to not less than 2 per centum of the amounts
appropriated under section 601 for any fiscal year to enable Indian
tribes, bands, and groups which are designated as eligible applicants
under this title to carry out public service employment programs.".
(c) Section 603(a) (2) of such Act, as redesignated by subsection
(b) of this section, is amended by inserting after "per centum" the
following: "of the remainder".
SEC. 9. (a) Section 704 of the Comprehensive Employment and
Training Act of 1973 (as amended by section 3(b) of this Act) is
further amended by adding at the end thereof the following new
subsection:
"(e) Notwithstanding any other provision of law, funds allocated
by a prime sponsor or an Indian tribe, band, or group for the employ-
H. R. 12987-8
ment of individuals under this Act may be expended in conjunction
with funds from any other public or private source, but funds allo-
cated under this Act may only be expended in accordance with the
requirements of this Act.".
(b) The heading of such section 704 is amended to read as follows:
"SPECIAL PROVISIONS".
SEC. 10. Section 311 of the Comprehensive Employment and Train-
ing Act of 1973 is amended by adding at the end thereof the following
new subsection:
(e) The Secretary is authorized to undertake projects (either
directly or by grant or contract) for the purpose of demonstrating
the feasibility of providing relocation assistance to unemployed work-
ers residing in areas of substantial unemployment who would other-
wise be eligible for public service employment under this Act. Such
assistance shall be in such form and amount as the Secretary deems
appropriate for demonstration purposes, except that he shall use as a
general guideline the form and amount of relocation assistance avail-
able under chapter 2 of title II of the Trade Act of 1974.".
SEC. 11. Section 704 of the Comprehensive Employment and Train-
ing Act of 1973 (as amended by sections 3(b) and 9 of this Act) is
further amended by adding at the end thereof the following new
subsection:
'(f) Notwithstanding any other provision of law, employment and
training services furnished under this Act in connection with weather-
ization projects authorized under section 222 (a) (12) of the Economic
Opportunity Act of 1964 may include work on such projects for the
near poor, including families having incomes which do not exceed 125
per centum of the poverty line as established by section 625 of the
Economic Opportunity Act of 1964.".
SEC. 12. (a) Section 104(b) of the Emergency Jobs and Unem-
ployment Assistance Act of 1974 is amended by-
(1) striking out "by this Act" after "amended"; and
(2) inserting at the end of such subsection the following new
sentence: "They shall also report to such committees on the same
subjects not later than ninety days after the date of enactment of
the Emergency Jobs Programs Extension Act of 1976.".
(b) Title I of the Comprehensive Employment and Training Act
of 1973 is amended by-
(1) inserting at the end of section 105 (a) (3) the following
"and (E) provides such arrangements as may be appropriate to
promote maximum feasible use of apprenticeship or other on-job
training opportunities available under section 1787 of title 38,
United States Code;"; and
(2) striking out in section 106(b) (5) "provide special emphasis"
and inserting in lieu thereof "take affirmative action".
SEC. 13. (a) (1) The Congress finds and declares that-
(A) the reliable and comprehensive measurement of employ-
ment and unemployment is vital to assessing the Nation's eco-
nomic well-being and the utilization of its work force, and is an
important determinant of public policies toward job creation,
education, training, assistance for the jobless, and other labor
market programs;
H. R. 12987-9
(B) the allocation of billions of dollars of Federal funds on
the basis of unemployment data is increasing, making even more
crucial the timely, accurate, and uniform measurement of the
labor force;
(C) the formulation of public policies to promote the most
effective use of our human resources is hindered by inadequate
information on the utilization and effect of education and training
programs;
(D) in order for governmental and private sector policy deci-
sions to have maximum effect upon reducing unemployment and
strengthening the labor force, an accurate and precise system for
measuring employment and unemployment and its impacts on
particular segments of the potential work force is essential;
(E) the current method of data collection and the form of its
presentation, at national, regional, and subregional levels, may
not fully reflect unemployment and employment trends, and may
produce incomplete and, therefore, misleading conclusions, thus
impairing the validity and utility of this critical economic indi-
cator;
(F) it is critical to retain public confidence in the procedures,
concepts, and methodology of collecting, analyzing, and present-
ing employment and unemployment statistics; and
(G) objectivity is a necessity in considering reform of statis-
tical processes.
(2) It is the purpose of this section to establish a National Com-
mission on Employment and Unemployment Statistics to have respon-
sibility for examining the procedures, concepts, and methodology
involved in employment and unemployment statistics and suggesting
ways and means of improving them.
(b) (1) There shall be established a National Commission on
Employment and Unemployment Statistics (hereinafter in this section
referred to as the "Commission") which shall consist of nine members
appointed by the President, by and with the advice and consent of the
Senate. Seven of the members shall be selected on the basis of their
knowledge of and experience in the procedures, methodology, or use
of employment and unemployment statistics, and shall be broadly
representative of labor, business and finance, education and training,
economics and statistics, and State and local government. Two of the
members shall be selected from the general public. The membership of
the Commission shall be generally representative of significant seg-
ments of the labor force, including women and minority groups. Any
vacancy in the Commission shall not affect its powers as long as there
continues to be at least five members; and any such vacancy may be
filled in the same manner as the original appointment is made.
(2) Except when six members of the Commission shall vote to hold
an executive session for a particular purpose, the Secretary of Labor,
the Secretary of Commerce, the Commissioner of Labor Statistics, the
Director of the Bureau of the Census, the Director of the Office of
Management and Budget, the Chairman of the National Commission
for Manpower Policy, the Chairman of the Council of Economic
Advisers, and a majority and a minority member each of the Joint
Economic Committee, of the Committee on Labor and Public Welfare
of the Senate, and of the Committee on Education and Labor of the
House of Representatives, or in each case a designee, shall assist and
participate in the hearings, deliberations, and other activities of the
Commission on an advisory basis.
H. R. 12987-10
(3) The President shall designate a Chairman from among the
appointed members of the Commission.
(4) The Chairman, with the concurrence of the Commission, shall
appoint an executive director, who shall be the chief executive officer
of the Commission and shall perform such duties as are prescribed
by the chairman or the Commission. The executive director may
appoint, with the concurrence of the Chairman, such professional,
technical, and clerical staff as are necessary to carry out the provisions
of this section. The executive director and staff shall be appointed
without regard to the provisions of title 5, United States Code, govern-
ing appointments to the competitive service, governing appointments
to the competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, but at rates not in excess
of the maximum rate of GS-18 of the General Schedule under section
5332 of such title. The executive director, with the concurrence of the
Chairman, may obtain temporary and intermitten services of experts
and consultants in accordance with the provisions of section 3109 of
title 5, United States Code. The Commission may utilize such staff,
with or without reimbursement, from the Department of Labor, the
Department of Commerce, and such other appropriate Federal agen-
cies as may be available to assist the Commission in carrying out its
responsibilities.
(5) The Commission shall determine its own internal procedures,
including the constituting of a quorum.
(6) The Commission is authorized to accept and utilize voluntary
and uncompensated services notwithstanding the provisions of section
665 (b) of title 31, United States Code.
(7) Members of the Commission who are not officers or employees
of the Federal Government shall be paid compensation at a rate of not
to exceed the per diem equivalent of the rate for GS-18 of the General
Schedule under section 5332 of title 5, United States Code, when
engaged in the work of the Commission, including traveltime; and
while serving away from their homes or regular places of business,
shall be allowed travel expenses including per diem in lieu of sub-
sistence, in the same manner as such expenses are authorized by law
(5 U.S.C. 5703) for persons in the Government service employed
intermittently.
(c) The Commission shall-
(1) identify the needs of the Nation for labor force statistics
and assess the extent to which current procedures, concepts, and
methodology in the collection, analysis, and presentation of such
statistics constitute a comprehensive, reliable, timely, and con-
sistent system of measuring employment and unemployment and
indicating trends therein; and
(2) conduct or provide (through contract with institutions,
organizations, and individuals, or appropriate Federal or State
agencies, or otherwise) for such studies, hearings, research, or
other activities as it deems necessary to enable it to formulate
appropriate recommendations.
The Commission or, on the authorization of the Commission, any
subcommittee or members thereof, may, for the purposes of carrying
out the provisions of this section, hold such hearings, take such testi-
mony, and sit and act at such times and places as the Commission
deems advisable. Any member authorized by the Commission may
administer oaths or affirmations to witnesses appearing before the
Commission or any subcommittee or members thereof.
H. R. 12987-11
(d) (1) The Commission shall make a report of its findings and
recommendations to the President and the Congress within eighteen
months after the date of appointment of the first five members of the
Commission.
(2) In preparing its report, the Commission shall consider the
following:
(A) The methodology of collection of employment and unem-
ployment data at all levels, including National, regional, State,
and local statistics.
(B) The methodology of analysis of such data, including its
relevance and application.
(C) The methodology of presentation of employment and
unemployment statistics, including the dissemination, current
utilization, and application of such statistics.
(D) Alternative methods of such collection, analysis, and
presentation.
(E) The need for additional special statistical surveys (includ-
ing longitudinal studies) and reports on a continuing basis.
(F) The need for additional data and analysis on job vacancies,
job turnover, job matching, discouraged workers, part-time work-
ers, youth, minorities, women, and other labor force participants.
(G) Accuracy and uniformity of seasonal adjustments in all
categories of labor force statistics.
(H) Methods of achieving current, accurate, and uniform
employment and unemployment statistics on a State and local
basis, including their use as a determinant of the allocation of
Federal assistance.
(I) The need for, and methods to obtain. data relating employ-
ment status and earnings, economic hardship, and family support
obligations.
(J) The extent to which employment and earnings data assist
in determining the impact of public programs and policies upon
persons who are economically disadvantaged, unemployed, or
underemployed.
(K) The availability of and need for periodic information on
education and training enrollments and completions in the public
and private sectors.
(L) Statistical indicators of the relationship between education
and training and subsequent employment, earnings, and unem-
ployment experience.
(M) The value and usefulness of other statistics regarding
employment and unemployment, such as those obtained through
operation of the unemployment insurance system.
(N) The availability of and need for current and projected
occupational information, particularly on a local basis, to assist
youths and adults in making training, education, and career
choices.
(0) Such other matters as the Commission deems appropriate
or necessary, including such matters as are suggested by the Presi-
dent or by the Congress that the Commission deems appropriate.
(3) The Commission's report shall contain its findings and recom-
mendations, including a feasible schedule for their implementation,
cost estimates, and any appropriate draft regulations and legislation
to implement such recommendations.
H. R. 12987-12
(4) The Commission may make such interim reports or recom-
mendations as it may deem desirable.
(e) Upon submission of the Commission's final report, the Secretary
of Labor shall take steps to ascertain the views of each affected execu-
tive agency and, within six months after the report's submission, shall
make an interim report to the Congress on-
(1) the desirability, feasibility, and cost of implementing each
of the Commission's recommendations, and the actions taken or
planned with respect to their implementation; and
(2) recommendations with respect to any legislation proposed
by the Commission, the need for any alternative or additional leg-
islation to implement the Commission's recommendations, and any
other proposals to strengthen and improve the measurement of
employment and unemployment.
Within two years after submission of the Commission's final report,
the Secretary shall submit a final report to the Congress detailing the
actions taken with respect to the recommendations of the Commission,
together with any further recommendations deemed appropriate.
(f) (1) Each department, agency, and instrumentality of the Federal
Government is authorized and directed to cooperate fully with the
Commission in furnishing appropriate information to assist the Com-
mission in carrying out its functions under this section.
(2) The head of each department, agency, or instrumentality of the
Federal Government is authorized to provide such support and services
to the Commission, upon request of the Chairman, as may be agreed
between the head of the department, agency, or instrumentality and
the Chairman.
(g) The Commission shall cease to exist one hundred and eighty
days after submission of its final report as required under subsection
(d) (1) of this section.
(h) (1) There are authorized to be appropriated such sums as may
be necessary to carry out the provisions of this section.
(2) Notwithstanding any other provision of law, any funds appro-
priated to carry out this section which are not obligated prior to the
end of the fiscal year for which such funds were appropriated shall
remain available for obligation during the succeeding fiscal year.
SEC. 14. (a) Section 202 of the Comprehensive Employment and
Training Act of 1973 is amended by adding at the end thereof the
following new subsection:
(c) Whenever the Secretary allocates any funds available under
subsection (b) of this section through a distribution based upon a
formula, he shall, not later than 30 days prior to such allocation, pub-
lish in the Federal Register for comment the specific formula upon
which such distribution is based, the rationale supporting the selection
of the formula, and the proposed distribution to each prime sponsor.
After consideration of comments received under the preceding sen-
tence, the Secretary shall publish final allocations.".
(b) Section 603 of such Act is amended by adding at the end thereof
the following new subsection:
(d) Whenever the Secretary allocates any funds available under
subsection (b) of this section through a distribution based upon a
formula, he shall, not later than 30 days prior to such allocation, pub-
lish in the Federal Register the specific formula upon which such dis-
tribution is based, the rationale behind the selection of the formula,
and the proposed distribution for each prime sponsor. After consider-
ation of comments received under the preceding sentence, the Secre-
tary shall publish final allocations.".
H. R. 12987-13
SEC. 15. (a) The National Commission for Manpower Policy, estab-
lished under title V of the Comprehensive Employment and Training
Act of 1973, shall conduct a study of the net employment effects of the
public service employment programs authorized by title II and title
VI of the Comprehensive Employment and Training Act of 1973.
(b) The National Commission for Manpower Policy shall prepare
and submit to the Congress not later than March 31, 1978, a report on
the study required by this section, together with such recommenda-
tions, including recommendations for legislation, as such Commission
deems advisable.
(c) There are authorized to be appropriated such sums as may be
necessary to carry out the provisions of this section.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.