§ 1516 TITLE 29—LABOR Page 600

1So in original. Probably should be ‘‘section’’.

(ii) the party took appropriate steps to present its views and seek resolution of disputed

issues prior to submission of the plan to the

Governor, and

(iii) the request for disapproval is based on a

violation of statutory requirements.

(B) If the Governor approves the plan (or

modification), the Governor shall notify the petitioner in writing of such decision and the reasons therefor.

(c) Redesignation of service delivery areas and

private industry councils

(1) If a private industry council and the appropriate chief elected official or officials fail to

reach the agreement required under section

1513(b) or (d) of this title and, as a consequence,

funds for a service delivery area may not be

made available under section 1514 of this title,

then the Governor shall redesignate, without regard to sections 1 1511(a)(4) and (c)(1) of this

title, the service delivery areas in the State to

merge the affected area into one or more other

service delivery areas, in order to promote the

reaching of agreement.

(2) In any State in which service delivery

areas are redesignated under paragraph (1), private industry councils shall, to the extent necessary for the redesignation, be reconstituted

and job training plans modified as required to

comply with sections 1512 and 1513 of this title.

Services under an approved plan shall not be

suspended while the council is reconstituted and

the plan is modified.

(d) Authority of Secretary in single plan States

In any case in which the service delivery area

is a State, the plan (or modification) shall be

submitted to the Secretary for approval. For the

purpose of this subsection, the Secretary shall

have the same authority as the Governor has

under this section.

(Pub. L. 97–300, title I, §105, Oct. 13, 1982, 96 Stat.

1332; Pub. L. 102–367, title I, §114, Sept. 7, 1992,

106 Stat. 1030.)

AMENDMENTS

1992—Subsec. (a)(1)(B)(ii). Pub. L. 102–367, §114(1), inserted ‘‘community-based organizations and’’ after ‘‘appropriate’’.

Subsec. (b)(1)(E). Pub. L. 102–367, §114(2), substituted

‘‘sections 1531(b), 1605, and 1645 of this title’’ for ‘‘section 1531(b) of this title’’.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–367 effective July 1, 1993,

see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions

note under section 1501 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1511, 1514, 1578,

1661, 1661b of this title.

§ 1516. Performance standards

(a) Findings

The Congress recognizes that job training is

an investment in human capital and not an expense. In order to determine whether that investment has been productive, the Congress

finds that—

(1) it is essential that criteria for measuring

the return on this investment be developed;

and

(2) the basic return on the investment is to

be measured by long-term economic self-sufficiency, increased employment and earnings,

reductions in welfare dependency, and increased educational attainment and occupational skills.

(b) Subchapter II performance standards

(1) General objective

In prescribing performance standards for

programs under parts A and C of subchapter II

of this chapter, the Secretary shall ensure

that States and service delivery areas will

make efforts to increase services and positive

outcomes for hard-to-serve individuals.

(2) Achievement of basic measures

In order to determine whether the basic

measures described in subsection (a) of this

section are achieved for programs under parts

A and C of subchapter II of this chapter, the

Secretary, in consultation with the Secretary

of Education and the Secretary of Health and

Human Services, shall prescribe performance

standards.

(3) Factors for adult standards

The Secretary shall base the performance

standards for adult programs under part A of

subchapter II of this chapter on appropriate

factors, which may include—

(A) placement in unsubsidized employment;

(B) retention for not less than 6 months in

unsubsidized employment;

(C) an increase in earnings, including

hourly wages;

(D) a reduction in welfare dependency; and

(E) acquisition of skills, including basic

skills, required to promote continued employability in the local labor market (including attainment of the competency levels

described in paragraph (5)), or acquisition of

a high school diploma or the equivalent of

the diploma, if the acquisition of such skills

or diploma is in addition to obtaining one or

more of the outcomes described in subparagraphs (A) through (D).

(4) Factors for youth standards

(A) In general

The Secretary shall base the performance

standards for youth programs under part C

of subchapter II of this chapter on appropriate factors described in paragraph (3), and

on factors including—

(i) attainment of employment competencies (including attainment of the

competency levels described in paragraph

(5));

(ii) dropout prevention and recovery;

(iii) secondary and postsecondary school

completion or the equivalent of such completion; and

(iv) enrollment in other training programs, apprenticeships, or postsecondary

education, or enlistment in the Armed

Forces.
Page 601 TITLE 29—LABOR § 1516

(B) Variations

The Secretary may prescribe variations in

the standards described in subparagraph (A)

to reflect the differences between in-school

and out-of-school programs.

(5) Competency levels

The private industry councils, in consultation with appropriate educational agencies,

and, where appropriate, the private sector,

labor organizations, and community-based organizations, shall establish youth and adult

competency levels, based on such factors as

entry level skills and other hiring requirements.

(6) Requirements

The performance standards described in

paragraphs (3) and (4) shall include provisions

governing—

(A) the base period prior to program participation that will be used for measurement

of the factors in such paragraphs, as appropriate;

(B) a representative period after termination from the program that is a reasonable indicator of postprogram employment,

earnings, and cash welfare payment reductions; and

(C) cost-effective methods for obtaining

such data as are necessary to carry out this

section and section 1732(d) of this title

which, notwithstanding any other provision

of law, may include access to earnings

records, State employment security records,

records collected under the Federal Insurance Contributions Act (chapter 21 of the Internal Revenue Code of 1986) [26 U.S.C. 3101

et seq.], records collected under the State

program funded under part A of title IV of

the Social Security Act [42 U.S.C. 601 et

seq.], statistical sampling techniques, and

similar records or measures, with appropriate safeguards to protect the confidentiality of the information obtained.

(7) Incentive grants

From funds available under section

1602(c)(1)(B) of this title, and under section

1642(c)(1)(B) of this title, for providing incentive grants under this paragraph, each Governor shall award incentive grants for programs under parts A and C of subchapter II of

this chapter, other than programs under section 1604(d) of this title, to service delivery

areas that—

(A) exceed the performance standards established by the Secretary under this subsection (except for the standards established

under paragraph (8)) with respect to services

to all participants;

(B) exceed the performance standards established by the Secretary under this subsection (except for the standards established

under paragraph (8)) with respect to services

to populations of hard-to-serve individuals;

(C) serve more than the minimum percentage of out-of-school youth required by section 1643(f) of this title;

(D) place participants in employment

that—

(i) provides post-program earnings exceeding the applicable performance criteria; and

(ii) includes employer-assisted employment benefits, including health benefits,

consistent with the requirements of section 1553(a)(4) of this title relating to subsidized employment; and

(E) exceed the performance standards established by the Governor under subsection

(e) of this section for programs under subchapter II of this chapter, except that not

more than 25 percent of the incentive grants

shall be awarded on performance standards

established under subsection (e) of this section.

(8) Program expenditures

The Secretary shall prescribe performance

standards relating gross program expenditures

to various performance measures under this

subsection, excluding any cost per participant

measure. The Governors shall not take performance standards prescribed under this

paragraph into consideration in awarding incentive grants under paragraph (7).

(c) Subchapter III performance standards

(1) In general

The Secretary shall prescribe performance

standards for programs under subchapter III of

this chapter based on placement and retention

in unsubsidized employment.

(2) Needs-related payments

In prescribing performance standards under

paragraph (1), the Secretary shall make appropriate allowance for the difference in cost resulting from serving workers receiving needsrelated payments under section 1661c(e) of this

title.

(d) State variation of performance standards

(1) Authority of Governor

Each Governor shall prescribe, and report in

the Governor’s coordination and special services plan, within parameters established by

the Secretary, variations in the standards issued under subsections (b) and (c) of this section based upon—

(A) specific economic, geographic, and demographic factors in the State and in service delivery areas and substate areas within

the State;

(B) the characteristics of the population to

be served;

(C) the demonstrated difficulties in serving

the population; and

(D) the type of services to be provided.

(2) Responsibilities of Secretary

The Secretary shall—

(A) provide information and technical assistance on performance standards adjustments;

(B) collect data that identifies hard-toserve individuals;

(C) provide guidance on setting performance standards at the service provider level

that encourages increased service to such individuals; and

(D) review performance standards to ensure that such standards provide maximum

incentive in serving such individuals.

(e) Additional State standards permitted

The Governor may prescribe performance

standards for programs under subchapter II of
§ 1516 TITLE 29—LABOR Page 602

this chapter and subchapter III of this chapter

in addition to those standards established by the

Secretary under subsections (b) and (c) of this

section. Such additional standards may include

criteria relating to establishment of effective

linkages with other programs to avoid duplication and enhance the delivery of services, the

provision of high quality services, and successful

service to hard-to-serve individuals. The additional performance standards established for

subchapter II of this chapter shall be reported in

the Governor’s coordination and special services

plan.

(f) Subchapter IV standards

The Secretary shall prescribe performance

standards for programs under parts A and B of

subchapter IV of this chapter.

(g) Adjustment for special populations

The Secretary shall prescribe a system for

variations in performance standards for special

populations to be served, including Native

Americans, migrant and seasonal farmworkers,

disabled and Vietnam era veterans, including

veterans who served in the Indochina Theater

between August 5, 1964 and May 7, 1975, older individuals, including those served under section

1604(d) of this title, and offenders, taking into

account their special circumstances.

(h) Modifications

(1) In general

The Secretary may modify the performance

standards under this section not more often

than once every 2 program years. Such modifications shall not be retroactive.

(2) Job Corps

Notwithstanding paragraph (1), the Secretary may modify standards relating to programs under part B of subchapter IV of this

chapter each program year.

(i) Functions of NCEP

The National Commission for Employment

Policy shall—

(1) advise the Secretary in the development

of performance standards under this section

for measuring results of participation in job

training and in the development of parameters

for variations of such standards referred to in

subsection (d) of this section;

(2) evaluate the usefulness of such standards

as measures of desired performance; and

(3) evaluate the impact of such standards

(intended or otherwise) on the choice of who is

served, what services are provided, and the

cost of such services in service delivery areas.

(j) Failure to meet standards

(1) Uniform criteria

The Secretary shall establish uniform criteria for determining whether—

(A) a service delivery area fails to meet

performance standards under this section;

and

(B) the circumstances under which remedial action authorized under this subsection

shall be taken.

(2) Technical assistance

Each Governor shall provide technical assistance to service delivery areas failing to

meet performance standards under the uniform criteria established under paragraph

(1)(A).

(3) Process for correction

Not later than 90 days after the end of each

program year, each Governor shall report to

the Secretary the final performance standards

and performance for each service delivery area

within the State, along with the plans of the

Governor for providing the technical assistance required under paragraph (2).

(4) Reorganization plan

(A) Plan required for continued failure

If a service delivery area continues to fail

to meet such performance standards for 2

consecutive program years, the Governor

shall notify the Secretary and the service

delivery area of the continued failure, and

shall develop and impose a reorganization

plan.

(B) Elements

Such plan may restructure the private industry council, prohibit the use of designated service providers, merge the service

delivery area into one or more other existing

service delivery areas, or make other

changes as the Governor determines to be

necessary to improve performance, including

the selection of an alternative administrative entity to administer the program for

the service delivery area.

(C) Alternative administrative entity selection

The alternative administrative entity described in subparagraph (B) may be a newly

formed private industry council or any agency jointly selected by the Governor and the

chief elected official of the largest unit of

general local government in the service delivery area or substate area.

(5) Secretarial action

(A) Plan

If the Governor has not imposed a reorganization plan as required by paragraph (4)

within 90 days of the end of the second program year in which a service delivery area

has failed to meet its performance standards, the Secretary shall develop and impose

such a plan.

(B) Recapture or withholding

The Secretary shall recapture or withhold

an amount not to exceed one-fifth of the

State administration set-aside allocated

under section 1602(c)(1)(A) of this title and

under section 1642(c)(1)(A) of this title, for

the purposes of providing technical assistance under a reorganization plan imposed

pursuant to subparagraph (A).

(6) Appeal by service delivery area

(A) Timing

A service delivery area that is the subject

of a reorganization plan under paragraph (4)

may, within 30 days after receiving notice

thereof, appeal to the Secretary to rescind

or revise such plan.
Page 603 TITLE 29—LABOR § 1517

1So in original. Probably should be ‘‘of’’. 1So in original. The comma probably should not appear.

(B) Recapture or withholding

(i) Determination

If the Secretary determines, upon appeal

under subparagraph (A), that the Governor

has not provided appropriate technical assistance as required under paragraph (2),

the Secretary shall recapture or withhold

an amount not to exceed one-fifth of the

State administration set-aside allotted

under section 1602(c)(1)(A) of this title and

under section 1642(c)(1)(A) of this title. The

Secretary shall use funds recaptured or

withheld under this subparagraph to provide appropriate technical assistance.

(ii) Basis

If the Secretary approved the technical

assistance plan provided by the Governor

under paragraph (2), a determination under

this subparagraph shall only be based on

failure to effectively implement such plan

and shall not be based on the plan itself.

(7) Appeal by Governor

A Governor of a State that is subject to recapture or withholding under paragraph (5) or

(6)(B) may, within 30 days of receiving notice

thereof, appeal such withholding to the Secretary.

(k) Clarification or 1 reference

For the purposes of this section, the term

‘‘employment’’ means employment for 20 or

more hours per week.

(Pub. L. 97–300, title I, §106, Oct. 13, 1982, 96 Stat.

1333; Pub. L. 97–404, §1(b), Dec. 31, 1982, 96 Stat.

2026; Pub. L. 99–496, §15(b), Oct. 16, 1986, 100 Stat.

1266; Pub. L. 100–418, title VI, §6304(a), Aug. 23,

1988, 102 Stat. 1538; Pub. L. 100–628, title VII,

§§713(b), 714(b), Nov. 7, 1988, 102 Stat. 3255, 3256;

Pub. L. 102–367, title I, §115(a), Sept. 7, 1992, 106

Stat. 1030; Pub. L. 104–193, title I, §110(n)(2), Aug.

22, 1996, 110 Stat. 2174.)

REFERENCES IN TEXT

The Federal Insurance Contributions Act, referred to

in subsec. (b)(6)(C), is act Aug. 16, 1954, ch. 736, §§3101,

3102, 3111, 3112, 3121 to 3128, 68A Stat. 415, as amended,

which is classified generally to chapter 21 (§3101 et seq.)

of Title 26, Internal Revenue Code. For complete classification of this Act to the Code, see section 3128 of Title

26 and Tables.

The Social Security Act, referred to in subsec.

(b)(6)(C), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as

amended. Part A of title IV of the Act is classified generally to part A (§601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

AMENDMENTS

1996—Subsec. (b)(6)(C). Pub. L. 104–193 substituted

‘‘records collected under the State program funded

under part A of title IV of the Social Security Act,’’ for

‘‘State aid to families with dependent children

records,’’

1992—Pub. L. 102–367 amended section generally, substituting subsecs. (a) to (k) for former subsecs. (a) to

(h) which also related to performance standards for programs under this chapter.

1988—Subsec. (b)(5). Pub. L. 100–628, §714(b), added

par. (5).

Subsec. (e). Pub. L. 100–628, §713(b), designated existing provision as par. (1) and added par. (2).

Pub. L. 100–418, §6304(a)(1), inserted reference to subsec. (g) of this section and directed the insertion of

‘‘and in substate areas’’ after ‘‘State’’, which was executed by making the insertion after ‘‘State’’ the first

place it appeared to reflect the probable intent of Congress.

Subsec. (g). Pub. L. 100–418, §6304(a)(2), designated existing provisions as par. (1) and added par. (2).

1986—Subsec. (d)(3). Pub. L. 99–496 inserted reference

to disabled and Vietnam era veterans, including veterans who served in the Indochina Theater between Aug.

5, 1964, and May 7, 1975.

1982—Subsec. (d)(3). Pub. L. 97–404 substituted ‘‘offenders’’ for ‘‘ex-offenders’’.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104–193 effective July 1, 1997,

with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and

proceedings commenced before such date, rules relating

to closing out of accounts for terminated or substantially modified programs and continuance in office of

Assistant Secretary for Family Support, and provisions

relating to termination of entitlement under AFDC

program, see section 116 of Pub. L. 104–193, as amended,

set out as an Effective Date note under section 601 of

Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–367 effective July 1, 1993,

with Secretary of Labor required to issue revised performance standards under the amendments made by

section 115 of Pub. L. 102–367 (amending this section

and sections 1661 and 1662a of this title), as soon as Secretary determines sufficient data are available, but not

later than July 1, 1994, except that with respect to the

factor of retention in unsubsidized employment specified in subsec. (b)(3)(B) of this section, the requirement

that such retention be for not less than 6 months is effective not later than July 1, 1995, see section 701(a) and

(b) of Pub. L. 102–367, set out as an Effective Date of

1992 Amendment; Transition Provisions note under section 1501 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT; TRANSITION

PROVISIONS

Amendment by Pub. L. 100–418 effective for program

years beginning on or after July 1, 1989, except as

otherwise provided, see section 6305 of Pub. L. 100–418,

formerly set out as an Effective Date; Transition Provisions note under section 1651 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1511, 1514, 1518,

1602, 1604, 1633, 1642, 1661, 1662a, 1671, 1672 of this title;

title 8 section 1522; title 20 section 2325.

§ 1517. Selection of service providers

(a) Effectiveness in terms of plan primary consideration

The primary consideration in selecting agencies or organizations to deliver services within a

service delivery area shall be the effectiveness

of the agency or organization in delivering comparable or related services based on demonstrated performance,1 (in accordance with

guidelines established by the Secretary), in

terms of the likelihood of meeting performance

goals, cost, quality of training, and characteristics of participants. In addition, consideration

shall be given to demonstrated performance in

making available appropriate supportive serv-