Working Families Economic Security Act of 1996

TABLE OF CONTENTS:

Title I: Minimum Wage Guarantee

Title II: Income Equity

Title III: Worker Protection in Labor Disputes

Title IV: Workforce of the Future

Subtitle A: General Provisions

Subtitle B: Streamlining and Consolidation

Subtitle C: Market Building Activities

Subtitle D: One-Stop Career Centers

Title V: Corporate Accountability

Title VI: Health Insurance Reform

Subtitle A: Health Care Access, Portability, and

Renewability

Subtitle B: Application and Enforcement of Standards

Subtitle C: Miscellaneous Provisions

Title VII: Pensions

Title VIII: North American Trade Fairness Act

Title IX: Commission on Retirement Income Policy

Working Families Economic Security Act of 1996 - Title I: Minimum Wage Guarantee - Amends the Fair Labor Standards Act of 1938 to increase the Federal minimum wage to: (1) $4.70 an hour during FY 1997; and (2) $5.15 an hour during FY 1998. Provides for indexation of the minimum wage in FY 2000, and biennially thereafter, according to a formula based on a portion of an average hourly wage nationwide.

Title II: Income Equity - Amends the Internal Revenue Code to deny employers a deduction for payments of excessive compensation (more than 25 times the lowest compensation paid any other employee).

Title III: Worker Protection in Labor Disputes - Amends the National Labor Relations Act (NLRA) to make it an unfair labor practice for an employer to promise, threaten, or take other action to hire a permanent replacement for an employee who: (1) at the beginning of a labor dispute was in a bargaining unit in which a labor organization either was the certified or recognized exclusive representative, or was seeking to be so certified or recognized, on the basis of written authorizations by a majority of unit employees; and (2) in connection with that dispute has engaged in concerted activities for collective bargaining or other mutual aid and protection through that labor organization.

(Sec. 301) Makes it also an unfair labor practice for an employer to withhold or deny any other employment right or privilege to such an employee who is working for or has unconditionally offered to return to work for the employer, out of preference for any other individual based on that individual's having performed, or indicated a willingness to perform, bargaining unit work for the employer during the dispute.

(Sec. 302) Amends the Railway Labor Act to conform it to such NLRA prohibition.

(Sec. 303) Amends the NLRA to require mediation and, if necessary, binding arbitration of initial contract negotiation disputes.

Title IV: Workforce of the Future - Subtitle A: General Provisions - Workforce of the Future Development Act - Consolidates and revises Federal job training programs to create a workforce development system. Authorizes appropriations.

Subtitle B: Streamlining and Consolidation - Expresses the sense of the Congress that: (1) any budget savings realized through elimination or consolidation of programs under this title should be reinvested in the national job training (or workforce development) system; and (2) elimination or merging of programs should be done without reducing the Federal commitment or level of effort to improve education, employment, and earnings of all workers, particularly hard-to-serve individuals.

(Sec. 412) Repeals the authority for specified employment training programs under the Food Stamp Act of 1977, Appalachian Regional Development Act of 1965, Immigration Reform and Control Act of 1986, Federal Transit Act, Displaced Homemaker Self-Sufficiency Assistance Act, Carl D. Perkins Vocational and Applied Technology Education Act, Job Training Partnership Act (JTPA), and Stewart B. McKinney Homeless Assistance Act.

(Sec. 413) Repeals authority for specified for certain adult job training and employment programs under the JTPA, Wagner-Peyser Act, Trade Act of 1974, Refugee Education Assistance Act of 1980, and Older Americans Act of 1965. Requires any State receiving an implementation grant (to develop an integrated workforce development system) to include the components of these repealed programs and activities in such system, and allows additional programs, under certain conditions.

(Sec. 414) Directs the National Workforce Development Board (established under title II) to advise on consolidation of workforce development programs and draft a joint resolution for a streamlined, integrated, federally supported workforce development system.

(Sec. 415) Directs the President to establish an expedited process to consider and act on requests by States for waivers of laws and regulations for specified programs.

Subtitle C: Market Building Activities - Establishes the National Workforce Development Board (the Board) to prepare annual Nation's Workforce Development Report Cards (National Report Card) assessing the U.S. workforce development system performance and evaluating all workforce development programs that receive Federal funding.

Amends the JTPA to repeal the establishment of the National Commission for Employment Policy.

(Sec. 423) Authorizes the Secretary of Labor to make grants to applicant States: (1) to develop strategic plans for development of comprehensive statewide integrated workforce development systems; and (2) if they are leading edge States, to implement them.

Requires the Board to determine whether any proposed Federal job training legislation complies with specified requirements of this Act. Makes it out of order for the Senate or House of Representatives to consider any bill or resolution concerning workforce development that would not comply with the national workforce development system, as determined by the Board.

(Sec. 424) Establishes a quality assurance system. Directs the Secretaries of Labor, of Education, and of Health and Human Services to jointly develop a quality assurance system, including a placement accountability system for all federally funded workforce development programs, using program performance standards recommended by the Board and adopted by the Congress.

(Sec. 431) Requires each State desiring to participate in development of an integrated and accountable workforce development system to establish an advisory State Workforce Development Council (State Council) (or use a similar existing entity that includes representatives of employers and workers). Requires the State Council to: (1) assist the Governor in preparing a biennial State Workforce Development Policy Blueprint and an annual State Workforce Development Report Card, and in certifying each local workforce development board; and (2) develop a quality assurance system.

(Sec. 437) Requires States receiving implementation grants to: (1) establish unified service delivery areas (SDAs), according to State Council recommendations, to provide community-wide workforce development assistance in one-stop career centers; (2) design a unified financial and management information system, which all programs in the integrated system shall use; and (3) develop a strategy of specified services to enhance the capacity of institutions, organizations, and staff involved in State and local workforce development activities.

(Sec. 441) Requires the local elected officials of each unified SDA to establish a workforce development board (local board) to administer the workforce development assistance provided by all programs in the integrated workforce development system in such area.

(Sec. 444) Requires each local board to identify capacity building actions to be taken for its workforce development system with State Council funds.

Subtitle D: One-Stop Career Centers - Requires each local board to develop a network of one-stop career centers to provide jobseekers, workers, and businesses universal access to a comprehensive array of quality employment, education, and training services.

Title V: Corporate Accountability - Corporate Accountability Act of 1996 - Expresses the sense of the Congress that any entity entering into a contract with the Federal Government for goods or services should abide by a specified corporate code of conduct. Prescribes compliance requirements.

Title VI: Health Insurance Reform - Health Insurance Reform Act of 1996 - Subtitle A: Health Care Access, Portability, and Renewability - Prohibits insurers from declining to offer whole group coverage, with guaranteed renewability, to a group purchaser.

(Sec. 613) Restricts the circumstances in which a plan may impose a benefit limitation or exclusion because of a preexisting condition. Mandates the crediting of previous qualifying coverage, and special enrollment periods for individuals with certain types of changes in family composition or employment status.

(Sec. 620) Prohibits an insurer (for an individual in a period of previous qualifying coverage) from declining to offer coverage or denying enrollment based on health status, medical condition, or similar factors.

Mandates coverage renewability for individuals.

(Sec. 631) Amends the Public Health Service Act (PHSA), the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code to modify continuation coverage requirements.

(Sec. 641) Requires a State to certify health plan purchasing cooperatives meeting specified requirements.

Subtitle B: Application and Enforcement of Standards - Prescribes general requirements for enforcement of standards, mandating Federal enforcement in the event of State failure.

Subtitle C: Miscellaneous Provisions - Amends PHSA to allow a health maintenance organization, at a member's request, to reduce the member's basic health services payment by requiring payment of a deductible, if the member has established a medical savings account.

(Sec. 661) Declares that it is the sense: (1) of the Senate Labor and Human Resources Committee that the establishment of medical savings accounts should be encouraged as part of any health insurance reform legislation passed; and (2) of the Senate that the Congress should take steps to further the purposes of this title.

(Sec. 662) Amends ERISA to set forth rules governing litigation involving retiree health benefits.

(Sec. 663) Directs the Secretary to study and report to appropriate congressional committees on: (1) mechanisms to ensure the availability of reasonably priced health coverage to employers purchasing group and individuals purchasing non-group coverage; and (2) whether standards limiting premium variation will further the purposes of this Act.

(Sec. 664) Expresses the sense of the Senate Labor and Human Resources Committee that the Senate should take measures necessary to: (1) reform the Medicare program; (2) provide increased choice for seniors; and (3) respond to certain findings of the Public Trustees of Medicare by protecting the short-term solvency and long-term sustainability of the Medicare program.

(Sec. 665) Mandates parity of treatment limitations and financial requirements for mental health services.

Title VII: Pensions - Expresses the sense of the Senate that: (1) the tax on reversion of qualified pension plan assets to employers should not be repealed or modified; and (2) the provisions allowing transfer of excess pension assets to retiree health accounts should not be expanded.

Title VIII: North American Trade Fairness Act - North American Trade Fairness Act - Requires assessment of the impact of the North American Free Trade Agreement (NAFTA), further negotiation of certain NAFTA provisions, and withdrawal from NAFTA unless specified conditions are met and certified to.

(Sec. 802) Sets forth conditions for continuing U.S. participation in NAFTA, to be met before the end of 1997. Requires the President to renegotiate the terms of NAFTA to correct trade deficits, currency distortions, and agricultural distortions, and to raise labor, health, and environmental standards, in specified ways. Requires certifications by certain U.S. officials of specified NAFTA-related economic, environmental, and political matters. Sets forth congressional consultation requirements.

(Sec. 804) Expresses the sense of the Congress that until the conditions set by this title are met: (1) the President should not engage in negotiations to expand NAFTA to include other countries; and (2) fast-track authority should not be renewed with respect to the approval of any such NAFTA expansion.

Title IX: Commission on Retirement Income Policy - Establishes the Commission on Retirement Income Policy to study and report to the President and the Congress on: (1) U.S. trends in retirement savings; (2) existing Federal incentives and programs to encourage and protect them; and (3) new Federal incentives and programs needed for such purposes.