I

104TH CONGRESS

1ST SESSION H. R. 1617

To consolidate and reform workforce development and literacy programs,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 11, 1995

Mr. MCKEON (for himself, Mr. GOODLING, Mr. CUNNINGHAM, Mr. GUNDERSON, Mr. RIGGS, Mr. DELAY, Mr. BOEHNER, Mr. KASICH, Mr.

MCINTOSH, Mr. PETRI, Mrs. ROUKEMA, Mr. FUNDERBURK, Mr.

SOUDER, Mr. FAWELL, Mr. BALLENGER, Mr. BARRETT of Nebraska, Mr.

HOEKSTRA, Mr. CASTLE, Mrs. MEYERS of Kansas, Mr. SAM JOHNSON

of Texas, Mr. TALENT, Mr. GREENWOOD, Mr. HUTCHINSON, Mr.

KNOLLENBERG, Mr. GRAHAM, Mr. WELDON of Florida, Mr. NORWOOD,

and Mr. DAVIS) introduced the following bill; which was referred to the

Committee on Economic and Educational Opportunities

A BILL

To consolidate and reform workforce development and

literacy programs, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the—

5 (1) ‘‘Consolidated and Reformed Education,

6 Employment, and Rehabilitation Systems Act’’; or

7 (2) ‘‘CAREERS Act’’.
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1 SEC. 2. TABLE OF CONTENTS.

2 The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings and purpose.

Sec. 4. Authorizations of appropriations.

Sec. 5. Definitions.

TITLE I—WORKFORCE DEVELOPMENT INFRASTRUCTURE

Sec. 101. Purpose of title.

Subtitle A—State and Local Responsibilities

Sec. 102. State requirements.

Sec. 103. Collaborative process regarding State system.

Sec. 104. Consolidated State workforce development and literacy plan.

Sec. 105. Designation of State administrative agent.

Sec. 106. Establishment of workforce development areas.

Sec. 107. Provisions regarding local workforce development boards.

Sec. 108. Establishment of one-stop career center systems.

Sec. 109. Certification of education, training, and vocational rehabilitation service providers.

Sec. 110. Management information systems.

Subtitle B—Amendments to Wagner-Peyser Act

Sec. 131. General program requirements.

Sec. 132. Labor market information.

TITLE II—YOUTH WORKFORCE PREPARATION AND

DEVELOPMENT CONSOLIDATION GRANT

Sec. 201. Purposes.

Sec. 203. Definitions.

Subtitle A—State Funding

Sec. 211. National and State funding.

Sec. 212. Within State allocation.

Subtitle B—State Organizational, Planning, and Reporting Responsibilities

Sec. 221. State plan.

Sec. 222. State programs and State activities.

Sec. 223. Incentive awards.

Sec. 224. Core standards, performance goals and measures.

Subtitle C—Subgrants for In-School and At-Risk Youth Programs

Sec. 231. Partnership agreements.

Sec. 232. Distribution of funds.

CHAPTER 1—IN-SCHOOL YOUTH PROGRAMS

Sec. 241. Uses of funds for in-school youth programs.
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CHAPTER 2—AT-RISK YOUTH PROGRAMS

Sec. 245. Uses of funds for at-risk youth.

Sec. 246. At-risk youth providers.

Subtitle D—National Programs

Sec. 251. Research activities.

Sec. 252. Annual assessment and data collection of vocational education programs.

Sec. 253. National center or centers for research.

TITLE III—ADULT EMPLOYMENT AND TRAINING CONSOLIDATION

GRANT

Subtitle A—Adult Employment and Training Consolidation Grant

Sec. 301. Purpose.

Sec. 302. Authorization.

Sec. 303. Allotment among States.

Sec. 304. Allocation within States.

Sec. 305. Additional State plan requirements.

Sec. 306. Use of amounts.

Sec. 307. Core standards, performance goals, and measures.

Subtitle B—Federal Programs

Sec. 311. National discretionary grants.

Sec. 312. Disaster relief employment assistance.

Sec. 313. Research, demonstration, evaluation, and capacity building.

Sec. 314. Workforce skills and development loans.

Sec. 315. Employment, training, and education assistance for Native Americans.

Sec. 316. Employment, training, and education assistance for migrant and seasonal farmworkers.

TITLE IV—ADULT EDUCATION, FAMILY LITERACY, AND LIBRARY

TECHNOLOGY CONSOLIDATION GRANT

Sec. 401. Findings and purpose.

Sec. 402. Definitions.

Subtitle A—Funding

Sec. 411. Reservations from amounts appropriated.

Sec. 412. Allotment.

Subtitle B—Grants to States

Sec. 421. Requirement to make grants.

Sec. 422. Uses of funds.

Sec. 423. Additional grant requirements.

Sec. 424. Performance measures.

Subtitle C—National Programs

Sec. 431. National competitive incentive grants.

Sec. 432. National Institute for Literacy.

Sec. 433. National leadership activities.
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TITLE V—AMENDMENTS TO REHABILITATION ACT OF 1973

Subtitle A—Vocational Rehabilitation Consolidation Grant

CHAPTER 1—TRANSITION PERIOD

Sec. 501. Transition.

CHAPTER 2—REVISION OF TITLE I OF REHABILITATION ACT OF 1973

Sec. 511. Comprehensive revision.

Subtitle B—Other Amendments to Rehabilitation Act of 1973

Sec. 521. Training and demonstration projects.

Sec. 522. Employment opportunities for individuals with disabilities.

TITLE VI—AMENDMENTS TO THE HIGHER EDUCATION ACT OF

1965

Sec. 601. Purpose of title.

Subtitle A—Student Loan Marketing Association

Sec. 611. Reorganization of the student loan marketing association through the

formation of a holding company.

Subtitle B—College Construction Loan Insurance Association

Sec. 621. Privatization of college construction loan insurance association.

TITLE VII—REPEALERS AND OTHER AMENDMENTS.

Sec. 701. Carl D. Perkins Vocational and Applied Technology Education Act.

Sec. 702. School-to-Work Opportunities Act.

Sec. 703. Adult Education Act.

Sec. 704. National Literacy Act.

Sec. 705. Library Services and Construction Act.

Sec. 706. Technology for Education Act of 1994.

Sec. 707. Job Training Partnership Act.

Sec. 708. Stewart B. Mckinney Homeless Assistance Act.

Sec. 709. Higher education provisions.

Sec. 710. Effective date.

1 SEC. 3. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—The Congress finds the following:

3 (1) The knowledge and skills of the United

4 States workforce are fundamental to the economic

5 competitiveness of the Nation today and in the fu6 ture, however, the United States does not currently
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1 possess a comprehensive, effective, and efficient sys2 tem of workforce preparation and development.

3 (2) Due to global competition, emerging tech4 nologies in the workplace, the emergence of quality

5 managing, corporate realignments, and the loss of

6 many low-skilled jobs, United States workers will in7 creasingly need to enhance their skills on a continu8 ing, lifelong basis through such a workforce prepara9 tion and development system.

10 (3) Reports from the Comptroller General of

11 the United States have identified 163 different Fed12 eral programs, totaling $20,000,000,000, and ad13 ministered by 14 different Federal agencies, that

14 offer some form of education, job training, or em15 ployment assistance to youths and adults.

16 (4) Such reports point to the many problems of

17 duplication and fragmentation that exist within the

18 varied Federal workforce preparation and develop19 ment programs, including—

20 (A) the additional costs of administering

21 overlapping workforce preparation and develop22 ment programs at the Federal, State, and local

23 levels which divert scarce resources that could

24 be better used to assist all individuals in pre25 paring for and entering the workforce; and
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1 (B) conflicting eligibility requirements, an2 nual budgeting and operating cycles, planning

3 and reporting requirements, and performance

4 measurement systems which serve as barriers to

5 the integration of Federal workforce prepara6 tion and development programs and result in an

7 inefficient use of resources.

8 (5) Major goals of any reform of the Federal

9 workforce preparation and development system must

10 be—

11 (A) to streamline and consolidate individ12 ual workforce preparation and development pro13 grams, eliminating unnecessary duplication and

14 fragmentation in such programs;

15 (B) to provide maximum authority and re16 sponsibility to States and local communities for

17 operation of State and local workforce prepara18 tion and development programs;

19 (C) to stress private sector partnerships

20 and encourage increased leadership and respon21 sibility on the part of the private sector through

22 the use of creative incentives for investment in

23 workforce training (which may include reduced

24 regulatory burdens, tax incentives, and em-
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1 ployer loans for the training of incumbent work2 ers);

3 (D) to establish a system which is market4 driven, accountable, provides customer choice

5 and easy access to services, and reinforces indi6 vidual responsibility;

7 (E) to improve education, literacy, job

8 training, rehabilitation, and employment assist9 ance programs in the United States, encourag10 ing lifelong learning and skills upgrading

11 through a seamless system connecting elemen12 tary, secondary, postsecondary, rehabilitation,

13 adult, and work-based training and education;

14 and

15 (F) to establish a comprehensive, inte16 grated labor market information system to en17 sure that workforce preparation and develop18 ment programs are related to the demand for

19 particular skills in local labor markets, and to

20 ensure that information about the employment

21 and earnings of the local workforce, occupations

22 in demand, skill requirements for such occupa23 tions, and the performance of education, reha24 bilitation, and training providers, are available
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1 to job seekers, employers, teachers, students,

2 and decision-makers.

3 (6) Early exposure to career opportunities can

4 enrich the education experience and provide incen5 tives for students to stay in school and achieve high6 er levels of learning.

7 (7) Millions of families in the United States are

8 trapped in a cycle of poverty, dependency, and inad9 equate education that is linked to illiteracy and low

10 educational achievement, for which adult education

11 and family literacy programs have been shown to be

12 successful in improving the educational attainment

13 and job skills of parents and their children, contrib14 uting to reductions in crime, welfare dependency,

15 and enhancing employment opportunities for such

16 individuals.

17 (8) In recent years, a number of innovative

18 States and local communities have begun successful

19 efforts to integrate Federal workforce preparation

20 and development programs through one-stop service

21 delivery systems, however, without exception, such

22 States and communities have experienced numerous

23 Federal barriers to such program integration.

24 (9) An extremely high percentage of Americans

25 with disabilities are unemployed, and need access to
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1 high quality, specialized rehabilitation services that

2 lead to employment, independence, and full partici3 pation in the mainstream of life in America.

4 (b) PURPOSE.—The purpose of this Act is to trans5 form the vast array of Federal workforce development and

6 literacy programs from a collection of fragmented and du7 plicative categorical programs into a streamlined, com8 prehensive, coherent, high-quality, cost-effective, market9 based, and accountable Federal workforce development

10 and literacy system that is designed to meet the education,

11 employment, and training needs of the workforce and the

12 competitiveness needs of employers of the United States,

13 both today and in the future.

14 SEC. 4. AUTHORIZATIONS OF APPROPRIATIONS.

15 There are authorized to be appropriated to carry out

16 titles II through IV such sums as may be necessary for

17 each of the fiscal years 1997, 1998, 1999, 2000, 2001,

18 and 2002.

19 SEC. 5. DEFINITIONS.

20 For purposes of this Act:

21 (1) ADULT.—The term ‘‘adult’’ means an indi22 vidual who is 16 years of age, or beyond the age of

23 compulsory school attendance under State law, and

24 who is not enrolled or required to be enrolled in sec25 ondary school.
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1 (2) ADULT EDUCATION.—The term ‘‘adult edu2 cation’’ means services or instruction below the post3 secondary level for adults—

4 (A) who are not enrolled in secondary

5 school;

6 (B) who lack sufficient mastery of basic

7 educational skills to enable them to function ef8 fectively in society or who do not have a certifi9 cate of graduation from a school providing sec10 ondary education and who have not achieved an

11 equivalent level of education;

12 (C) who are not currently required to be

13 enrolled in school; and

14 (D) whose lack of mastery of basic skills

15 results in an inability to speak, read, or write

16 the English language which constitutes a sub17 stantial impairment of their ability to get or re18 tain employment commensurate with their real

19 ability, and thus are in need of programs to

20 help eliminate such inability and raise the level

21 of education of such individuals with a view to

22 making them less likely to become dependent on

23 others.
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1 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

2 The term ‘‘area vocational education school’’

3 means—

4 (A) a specialized high school used exclu5 sively or principally for the provision of voca6 tional education to individuals who are available

7 for study in preparation for entering the labor

8 market;

9 (B) the department of a high school exclu10 sively or principally used for providing voca11 tional education in not less than 5 different oc12 cupational fields to individuals who are avail13 able for study in preparation for entering the

14 labor market;

15 (C) a technical institute or vocational

16 school used exclusively or principally for the

17 provision of vocational education to individuals

18 who have completed or left high school and who

19 are available for study in preparation for enter20 ing the labor market; or

21 (D) the department or division of a junior

22 college, community college or university operat23 ing under the policies of the State board and

24 which provides vocational education in not less

25 than 5 different occupational fields leading to
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1 immediate employment but not necessarily lead2 ing to a baccalaureate degree, if, in the case of

3 a school, department, or division described in

4 subparagraph (C) or this subparagraph, it ad5 mits as regular students both individuals who

6 have completed high school and individuals who

7 have left high school.

8 (4) AT-RISK YOUTH.—The term ‘‘at-risk youth’’

9 means in-school youth who are determined to be at

10 risk of dropping out of school prior to receipt of a

11 high school diploma, out-of-school youth, and school

12 dropouts.

13 (5) CAREER EXPLORATION AND GUIDANCE

14 COUNSELING.—The term ‘‘career exploration and

15 guidance counseling’’ means programs—

16 (A) which pertain to the body of subject

17 matter and related techniques and methods or18 ganized for the development in individuals of

19 career awareness, career planning, career deci20 sionmaking, placement skills, and knowledge

21 and understanding of local, State, and national

22 occupational, educational, and labor market

23 needs, trends, and opportunities;
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1 (B) which assist such individuals in mak2 ing and implementing informed educational and

3 occupational choices; and

4 (C) that begin not later than the sixth

5 grade.

6 (6) CASE MANAGEMENT.—The term ‘‘case man7 agement’’ means the provision of a client-centered

8 approach in the delivery of services designed to—

9 (A) prepare and coordinate comprehensive

10 employment plans, such as service strategies for

11 participants, to ensure access to necessary

12 training and supportive services, using where

13 feasible, computer-based technologies; and

14 (B) provide job and career counseling dur15 ing program participation and after job place16 ment.

17 (7) CHIEF ELECTED OFFICIAL.—The term

18 ‘‘chief elected official’’ means the chief elected execu19 tive officer of a unit of general local government in

20 a workforce development area.

21 (8) COMMUNITY-BASED ORGANIZATION.—The

22 term ‘‘community-based organization’’ means a pri23 vate nonprofit organization that is representative of

24 a community or significant segments of a community
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1 that provides education, vocational rehabilitation, job

2 training, or internship services and programs.

3 (9) DISLOCATED WORKERS.—The term ‘‘dis4 located workers’’ means individuals who—

5 (A) have been terminated or laid off or

6 who have received a notice of termination or

7 layoff from employment, are eligible for or have

8 exhausted their entitlement to unemployment

9 compensation, and are unlikely to return to

10 their previous industry or occupation;

11 (B) have been terminated or have received

12 a notice of termination of employment, as a re13 sult of any permanent closure of or any sub14 stantial layoff at a plant, facility, or enterprise;

15 (C) are long-term unemployed and have

16 limited opportunities for employment or reem17 ployment in the same or a similar occupation in

18 the area in which such individuals reside, in19 cluding older individuals who may have sub20 stantial barriers to employment by reason of

21 age; or

22 (D) were self-employed (including farmers

23 and ranchers) who are unemployed as a result

24 of general economic conditions in the commu25 nity in which they reside or because of natural
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1 disasters, subject to regulations prescribed by

2 the Secretary.

3 (10) EARNINGS.—The term ‘‘earnings’’ means

4 gross hourly wages before any deduction, plus the

5 estimated hourly value of bonuses, tips, gratuities,

6 commissions, and overtime pay either expected or re7 ceived. In the case of individuals in subsidized em8 ployment, total hourly earnings include any wage

9 subsidy paid to the individual.

10 (11) ECONOMIC DEVELOPMENT AGENCIES.—

11 The term ‘‘economic development agencies’’ means

12 State and local planning and zoning commissions or

13 boards, community development agencies, and other

14 State and local agencies and institutions responsible

15 for regulating, promoting, or assisting in State and

16 local economic development.

17 (12) ECONOMICALLY DISADVANTAGED.—The

18 term ‘‘economically disadvantaged’’ means an indi19 vidual who—

20 (A) receives, or is a member of a family

21 which receives, cash welfare payments under a

22 Federal, State, or local welfare program;

23 (B) has, or is a member of a family which

24 has, received a total family income for the 6-

25 month period prior to application for the pro-
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1 gram involved (exclusive of unemployment com2 pensation, child support payments, and welfare

3 payments) which, in relation to family size, was

4 not in excess of the higher of—

5 (i) the official poverty line (as defined

6 by the Office of Management and Budget,

7 and revised annually in accordance with

8 section 673(2) of the Omnibus Budget

9 Reconciliation Act of 1981 (42 U.S.C.

10 9902(2)), or

11 (ii) 70 percent of the lower living

12 standard income level;

13 (C) is receiving (or has been determined

14 within the 6-month period prior to the applica15 tion for the program involved to be eligible to

16 receive) food stamps pursuant to the Food

17 Stamp Act of 1977;

18 (D) qualifies as a homeless individual

19 under subsections (a) and (c) of section 103 of

20 the Stewart B. McKinney Homeless Assistance

21 Act;

22 (E) is a foster child on behalf of whom

23 State or local government payments are made;

24 (F) in cases permitted by regulations of

25 the Secretary, is an individual with a disability
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1 whose own income meets the requirements of

2 subparagraph (A) or (B), but who is a member

3 of a family whose income does not meet such

4 requirements; or

5 (G) is an individual meeting appropriate

6 criteria approved by a State.

7 (13) EMPLOYED.—The term ‘‘employed’’ means

8 an individual who is currently—

9 (A) a paid employee;

10 (B) works in his or her own business, pro11 fession, or farm;

12 (C) works 15 hours or more per week as

13 an unpaid worker in an enterprise operated by

14 a family member; or is one who is not working,

15 but has a job or business from which he or she

16 is temporarily absent due to illness, bad weath17 er, vacation, labor-management dispute, or per18 sonal reasons; or

19 (D) is active duty military.

20 (14) ENGLISH LITERACY PROGRAM.—The term

21 ‘‘English literacy program’’ means a program of in22 struction designed to help limited English proficient

23 adults, out-of-school youths, or both, achieve full

24 competence in the English language.
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1 (15) EXCESS NUMBER.—The term ‘‘excess

2 number’’ means, with respect to the excess number

3 of unemployed individuals within a State, the num4 ber that represents the number of unemployed indi5 viduals in excess of 4.5 percent of the civilian labor

6 force in the State, or the number that represents the

7 number of unemployed individuals in excess of 4.5

8 percent of the civilian labor force in areas of sub9 stantial unemployment in such State.

10 (16) GOVERNOR.—The term ‘‘Governor’’ means

11 the chief executive of any State.

12 (17) INDIVIDUAL OF LIMITED ENGLISH PRO13 FICIENCY.—The term ‘‘individual of limited English

14 proficiency’’ means an adult or out-of-school youth

15 who has limited ability in speaking, reading, writing,

16 or understanding the English language and—

17 (A) whose native language is a language

18 other than English; or

19 (B) who lives in a family or community en20 vironment where a language other than English

21 is the dominant language.

22 (18) INDIVIDUALS WITH DISABILITIES.—The

23 term ‘‘individuals with disabilities’’ has the meaning

24 given such term in the Vocational Rehabilitation Act

25 of 1973.
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1 (19) INSTITUTION OF HIGHER EDUCATION.—

2 The term ‘‘institution of higher education’’ has the

3 meaning given such term in section 481 of the High4 er Education Act of 1965.

5 (20) INTERMEDIATE EDUCATIONAL AGENCY.—

6 The term ‘‘intermediate educational agency’’ means

7 a combination of school districts or counties (as de8 fined in section 14101 of the Elementary and Sec9 ondary Education Act of 1965) that is recognized in

10 a State as an administrative agency for such State’s

11 vocational or technical education schools or for voca12 tional programs within its public elementary or sec13 ondary schools. Such term includes any other public

14 institution or agency having administrative control

15 and direction over a public elementary or secondary

16 school.

17 (21) JOB SEARCH ASSISTANCE.—The term ‘‘job

18 search assistance’’ means a service that helps a job19 ready individual seek, locate, apply for, and obtain

20 employment. Such services may include, but are not

21 limited to, job-finding skills, orientation to the labor

22 market, resume preparation assistance, job finding

23 clubs, job search workshops, vocational exploration,

24 and other services.
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1 (22) LABOR MARKET AREA.—The term ‘‘labor

2 market area’’ means an economically integrated geo3 graphic area within which individuals can reside and

4 find employment within a reasonable distance or can

5 readily change employment without changing their

6 place of residence. Such areas shall be identified in

7 accordance with criteria used by the Bureau of

8 Labor Statistics of the Department of Labor in de9 fining such areas or similar criteria established by a

10 Governor.

11 (23) LITERACY.—The term ‘‘literacy’’ means an

12 individual’s ability to read, write, and speak in Eng13 lish, and compute and solve problems, at levels of

14 proficiency necessary—

15 (A) to function on the job, in the individ16 ual’s family and in society;

17 (B) to achieve the individual’s goals; and

18 (C) to develop the individual’s knowledge

19 potential.

20 (24) LOCAL EDUCATIONAL AGENCY.—The term

21 ‘‘local educational agency’’ has the same meaning

22 given such term in section 14101 of the Elementary

23 and Secondary Education Act of 1965.

24 (25) NATIVE AMERICANS.—The term ‘‘Native

25 Americans’’ means individuals eligible for education,
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1 employment, and job training assistance under title

2 III of this Act.

3 (26) ON-THE-JOB TRAINING.—The term ‘‘on4 the-job training’’ means training in the public or pri5 vate sector that is provided to a paid employee while

6 he or she is engaged in productive work that—

7 (A) provides knowledge or skills essential

8 to the full and adequate performance of the job;

9 (B) provides reimbursement to employers,

10 up to 50 percent of the participant’s wage rate,

11 for the costs of providing training and addi12 tional supervision; and

13 (C) is based on the Occupational Employ14 ment Statistics Program Dictionary.

15 (27) OUT-OF-SCHOOL YOUTH.—The term ‘‘out16 of-school youth’’ means a youth who is no longer at17 tending any school and who has not received a sec18 ondary school diploma or a certificate from a pro19 gram of equivalency for such a diploma.

20 (28) POSTSECONDARY EDUCATIONAL INSTITU21 TION.—The term ‘‘postsecondary educational institu22 tion’’ means an institution of higher education (as

23 such term is defined in section 481 of the Higher

24 Education Act of 1965) which continues to meet the
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1 eligibility and certification requirements under title

2 IV of such Act (20 U.S.C. 1070 et seq.).

3 (29) PREEMPLOYMENT SKILLS TRAINING; JOB

4 READINESS SKILLS TRAINING.—The terms

5 ‘‘preemployment skills training’’ and ‘‘job readiness

6 skills training’’ mean training that helps prepare in7 dividuals for work by assuring that they are familiar

8 with general workplace expectations and exhibit

9 work behavior and attitudes necessary to compete

10 successfully in the job market.

11 (30) PUBLIC ASSISTANCE.—The term ‘‘public

12 assistance’’ means Federal, State, or local govern13 ment cash payments for which eligibility is deter14 mined by a needs or income test.

15 (31) RAPID RESPONSE.—The term ‘‘rapid re16 sponse’’ means assistance that is directly provided

17 by the State, or by local grantees with funds pro18 vided by the State, in the case of mass layoffs or

19 plant closures, that establishes on-site contact with

20 employer and employee representatives within a

21 short period of time (preferably 48 hours or less)

22 after becoming aware of a current or projected per23 manent closure or substantial layoff in order to—

24 (A) provide information on and facilitate

25 access to available public programs and services
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1 for workers losing jobs as a result of such layoff

2 or closure;

3 (B) provide emergency assistance adapted

4 to the particular closure or layoff;

5 (C) promote the formation of labor-man6 agement committees, where appropriate;

7 (D) collect information related to economic

8 dislocation and available resources within the

9 State for dislocated workers;

10 (E) provide or obtain appropriate financial

11 and technical advice and liaison with economic

12 development agencies and other organizations

13 to assist in efforts to avert worker dislocation;

14 and

15 (F) assist the local community in develop16 ing its own coordinated response and in obtain17 ing access to State economic development as18 sistance.

19 (32) REGISTERED APPRENTICESHIP.—The term

20 ‘‘registered apprenticeship’’ means a program reg21 istered by the Bureau of Apprenticeship and Train22 ing in the United States Department of Labor, or a

23 State Apprenticeship Agency recognized and ap24 proved by the Bureau of Apprenticeship and Train25 ing as the appropriate body for State registration or
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1 approval of local apprenticeship programs and agree2 ments.

3 (33) SCHOOL DROPOUT.—The term ‘‘school

4 dropout’’ means a youth who is no longer attending

5 any school and who has not received a secondary

6 school diploma or a certificate from a program of

7 equivalency for such a diploma.

8 (34) SKILL CERTIFICATE.—The term ‘‘skill cer9 tificate’’ means a portable, industry-recognized cre10 dential issued by programs authorized under this

11 Act, that certifies that an individual has mastered

12 skills at levels that are at least as challenging as

13 skill standards endorsed by the National Skill

14 Standards Board, except that until such skill stand15 ards are developed, the term ‘‘skill certificate’’

16 means a credential issued under a process deter17 mined by the State.

18 (35) STATE.—The term ‘‘State’’ means any of

19 the several States, the District of Columbia, the

20 Commonwealth of Puerto Rico, the Virgin Islands,

21 American Samoa, Guam, and the Commonwealth of

22 the Northern Mariana Islands.

23 (36) STATE EDUCATIONAL AGENCY.—The term

24 ‘‘State educational agency’’ has the meaning given
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1 such term in section 14101 of the Elementary and

2 Secondary Education Act of 1965.

3 (37) STATE LIBRARY ADMINISTRATIVE AGEN4 CY.—The term ‘‘State library administrative agen5 cy’’ means the official agency of a State charged by

6 the law of the State with the extension and develop7 ment of public library services throughout the State.

8 (38) SUPPORTIVE SERVICES.—The term ‘‘sup9 portive services’’ means services which are necessary

10 to enable an individual eligible for training under

11 this Act, but who cannot afford to pay for such serv12 ices, to participate in a training program funded

13 under this Act. Such supportive services may include

14 transportation, individual and family counseling,

15 special services and materials for individuals with

16 disabilities, child care and dependent care, meals,

17 temporary shelter, financial counseling, needs-based

18 payments, and other reasonable expenses required

19 for participation in a training program. Such serv20 ices may be provided in-kind or through cash assist21 ance, except that such services will be provided with

22 funds provided under this Act only after alternative

23 funding sources specifically designated for such serv24 ices have been exhausted.
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1 (39) UNEMPLOYED.—The term ‘‘unemployed’’

2 refers to an individual who is not employed, who is

3 available for work, and who has made specific efforts

4 to find a job within the prior 4 weeks. Included as

5 unemployed are individuals who are not working, are

6 available for work, and are waiting to be called back

7 to a job from which they have been laid off.

8 (40) UNIT OF GENERAL LOCAL GOVERN9 MENT.—The term ‘‘unit of general local govern10 ment’’ means any general purpose political subdivi11 sion of a State which has the power to levy taxes

12 and spend funds, as well as general corporate and

13 police powers.

14 (41) VETERAN.—The term ‘‘veteran’’ means an

15 individual who served in the active military, naval, or

16 air service, and who was discharged or released

17 therefrom under conditions other than dishonorable

18 discharge.

19 (42) WORK EXPERIENCE.—The term ‘‘work ex20 perience’’ means a time-limited work activity that

21 provides an individual with the opportunity to ac22 quire the general skills and knowledge necessary to

23 obtain employment.

24 (43) WORKPLACE MENTOR.—The term ‘‘work25 place mentor’’ means an employee or other individ-
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1 ual, approved by the employer at a workplace, who

2 possesses the skills and knowledge to be mastered by

3 a student or program participant, and who instructs,

4 critiques the performance, and challenges the stu5 dent or program participant to perform well, and

6 works in consultation with classroom teachers, train7 ing providers, and the employer of the student or

8 program participant.

9 (44) YOUTH.—The term ‘‘youth’’ means an in10 dividual between the ages of 14 and 24.

11 TITLE I—WORKFORCE DEVELOP12 MENT INFRASTRUCTURE

13 SEC. 101. PURPOSE OF TITLE.

14 The purpose of this title is to provide for the estab15 lishment of an infrastructure within the States of a system

16 on which to build a comprehensive system of workforce

17 development and literacy.

18 Subtitle A—State and Local

19 Responsibilities

20 SEC. 102. STATE REQUIREMENTS.

21 (a) IN GENERAL.—For fiscal year 1997 and subse22 quent fiscal years, a State that desires to receive a grant

23 under one or more of the programs specified in subsection

24 (b) shall—
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1 (1) establish a collaborative process, pursuant

2 to section 103;

3 (2) develop a State workforce development and

4 literacy plan, pursuant to section 104; and

5 (3) otherwise comply with the requirements of

6 this Act.

7 (b) WORKFORCE DEVELOPMENT AND LITERACY

8 PROGRAMS.—

9 (1) IN GENERAL.—The programs referred to in

10 subsection (a) are the following:

11 (A) The program under title II, the Youth

12 Workforce Preparation and Development Con13 solidation Grant.

14 (B) The program under title III, the Adult

15 Employment and Training Consolidation Grant.

16 (C) The program under title IV, the Adult

17 Education, Family Literacy, and Library Tech18 nology Consolidation Grant.

19 (D) The program amended by subtitle A of

20 title V (relating to title I of the Rehabilitation

21 Act of 1973).

22 (2) DEFINITION.—For purposes of this title,

23 the term ‘‘Workforce Development and Literacy pro24 grams’’ means the programs specified in paragraph

25 (1).
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1 SEC. 103. COLLABORATIVE PROCESS REGARDING STATE

2 SYSTEM.

3 (a) IN GENERAL.—The Governor of a State that de4 sires to receive a grant under one or more of the programs

5 specified in section 102(b) shall certify to the Secretary

6 of Education and the Secretary of Labor that a collabo7 rative process, as described in subsection (b), has been

8 used in complying with the applicable provisions of this

9 Act.

10 (b) COLLABORATIVE PROCESS.—The collaborative

11 process referred to in subsection (a) is a process for mak12 ing decisions which includes as participants, at a mini13 mum, the Governor and—

14 (1) the lead State agency official or officials

15 for—

16 (A) the State educational agency;

17 (B) the State agency responsible for eco18 nomic development;

19 (C) the State agency responsible for em20 ployment;

21 (D) the State agency responsible for job

22 training;

23 (E) the State agency responsible for post24 secondary education;

25 (F) the State agency responsible for voca26 tional education;
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1 (G) the State agency responsible for voca2 tional rehabilitation, and where applicable, the

3 State agency providing vocational rehabilitation

4 services for the blind;

5 (H) the State agency responsible for adult

6 education and literacy; and

7 (I) the State Library Administrative Agen8 cy; and

9 (2) representatives of the following (which rep10 resentatives are appointed by the Governor)—

11 (A) business and industry;

12 (B) locally elected officials;

13 (C) local educational agencies;

14 (D) postsecondary institutions; and

15 (E) the State rehabilitation advisory coun16 cil.

17 (c) RULE OF CONSTRUCTION.—With respect to com18 pliance with subsection (b), a State may use any existing

19 State process (including any council or similar entity) that

20 meets the requirements of such subsection.

21 SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOP22 MENT AND LITERACY PLAN.

23 (a) IN GENERAL.—The Governor of a State that de24 sires to receive a grant under one or more of the programs

25 specified in section 102(b) shall submit a State workforce
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1 development and literacy plan that meets the requirements

2 of this section to—

3 (1) the Secretary of Education; and

4 (2) the Secretary of Labor.

5 (b) CONTENTS.—A State workforce development and

6 literacy plan shall include the following:

7 (1) A description of the collaborative process

8 under section 103 used in developing the plan.

9 (2) A statement of the goals of the State

10 workforce development and literacy system, that in11 cludes—

12 (A) an assessment of the needs of the

13 State with regard to current and projected de14 mands for workers by occupation, the skills and

15 education levels of the workforce, the skill and

16 economic development needs of the State, and

17 an assessment of the type and availability of

18 workforce development, adult education, and lit19 eracy programs in the State;

20 (B) the identification of progress indica21 tors, based on the performance measures de22 scribed in titles II through V and a model of

23 continuous improvement, that the State will use

24 to measure progress made by the State, local

25 workforce development boards, and local recipi-
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1 ents of financial assistance under this Act in

2 meeting such goals; and

3 (C) a description of how performance

4 measures are consistent across the 4 grant pro5 grams established in titles II through V.

6 (3) A description of how the State has com7 plied, or will comply, with the provisions of sections

8 105 through 109.

9 (4) A description of how a State will participate

10 in the National Labor Market Information system

11 pursuant to subtitle B.

12 (5) Any information required to be included in

13 the plan under any of titles II through V (in the

14 case of a State that desires to receive a grant under

15 any such title).

16 (6) A description of the measures that will be

17 taken by the State to ensure coordination and con18 sistency and avoid duplication among programs re19 ceiving assistance under this Act, including a de20 scription of common data collection and reporting

21 processes (including the establishment of a common

22 management information system) across such pro23 grams.

24 (7) A description of the process used by the

25 State to provide an opportunity for public comment,
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1 and input into the development of the plan, prior

2 to submission of the plan.

3 (8) Assurances that the State will provide for

4 fiscal control and fund accounting procedures that

5 may be necessary to ensure the proper disbursement

6 of, and accounting for, funds paid to the State

7 under this Act.

8 (c) AUTHORITY OF GOVERNOR.—If, after a reason9 able effort, a Governor is unable to obtain agreement

10 through the collaborative process described in subsection

11 (b)(1), the Governor shall have final authority to make

12 decisions and submit a plan for the design of a comprehen13 sive system of workforce development and literacy for the

14 State under subsection (a).

15 (d) MODIFICATIONS TO PLAN.—A plan submitted by

16 a State in accordance with this section remains in effect

17 until the State submits to the Secretary such modifica18 tions as the State determines necessary. This section ap19 plies to the modifications to the same extent and in the

20 same manner as this section applies to the original plan.

21 (e) ALLOCATION OF RESPONSIBILITIES OF SEC22 RETARIES.—The Secretary of Education and the Sec23 retary of Labor shall collaborate in establishing and using

24 a common procedure in making determinations regarding
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1 compliance by the States with the requirements estab2 lished in this title.

3 SEC. 105. DESIGNATION OF STATE ADMINISTRATIVE

4 AGENT.

5 (a) DESIGNATION.—The Governor of a State that de6 sires to receive a grant under one or more of the programs

7 specified in section 102(b) shall, through the collaborative

8 process described in section 103, designate a State admin9 istrative agent for each grant requiring such an agent

10 under this Act. The Governor may designate the same ad11 ministrative agent to be responsible for more than one

12 such grant.

13 (b) DUTIES.—An administrative agent designated

14 under subsection (a) shall administer funds received under

15 this Act, including receipt, review, processing, monitoring,

16 progress and financial report review, technical assistance,

17 grant adjustments, accounting, auditing, and fund dis18 bursements.

19 SEC. 106. ESTABLISHMENT OF WORKFORCE DEVELOPMENT

20 AREAS.

21 (a) IDENTIFICATION OF AREAS.—The Governor of a

22 State that desires to receive a grant under one or more

23 of the programs specified in section 102(b) shall, through

24 the collaborative process established under section 103

25 and after consultation with locally elected officials, and
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1 after consideration of comments received through the pub2 lic participation process as described in the State plan,

3 shall publish a proposed designation of local workforce de4 velopment areas within the State. Such areas shall be des5 ignated taking into consideration the following:

6 (1) Existing labor market areas.

7 (2) Units of general local government.

8 (3) Geographic areas served by local edu9 cational agencies and intermediate educational

10 agencies.

11 (4) Geographic areas served by postsecondary

12 institutions and area vocational education schools.

13 (5) Service delivery areas established under sec14 tion 101 of the Job Training Partnership Act (29

15 U.S.C. 1511) (as such Act was in effect on the day

16 before the date of the enactment of this Act).

17 (6) The distance that individuals will need to

18 travel to receive services from one-stop career cen19 ters.

20 SEC. 107. PROVISIONS REGARDING LOCAL WORKFORCE DE21 VELOPMENT BOARDS.

22 (a) IN GENERAL.—The Governor of a State that de23 sires to receive a grant under one or more of the programs

24 specified in section 102(b) shall ensure the establishment
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1 of a local workforce development board in each local

2 workforce development area within the State.

3 (b) STATE CRITERIA.—The Governor, through the

4 collaborative process described under section 103, shall es5 tablish criteria for use by locally elected officials in the

6 workforce development area, in the selection of members

7 of local workforce development boards, in accordance with

8 requirements prescribed under subsections (c) and (d).

9 (c) REPRESENTATION REQUIREMENT.—Such criteria

10 shall require, at a minimum, that a local workforce devel11 opment board consist of—

12 (1) a majority of members who are representa13 tives of business and industry, including individuals

14 who are owners of businesses, chief executives or

15 chief operating officers of private business, and

16 other business executives with optimum policy17 making authority in local businesses, selected from

18 among a list of nominees submitted by local business

19 organizations and trade associations; and

20 (2) an individual or individuals with disabilities,

21 or their representatives.

22 (d) ESTABLISHMENT OF BOARD.—

23 (1) SELECTION OF BOARD MEMBERS.—

24 (A) SINGLE UNIT OF LOCAL GOVERNMENT

25 IN AREA.—In the case of a workforce develop-
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1 ment area that is comprised of only one unit of

2 general local government, the chief elected offi3 cial of such unit shall select the members of the

4 local workforce development board for such

5 area, in accordance with the State criteria de6 veloped pursuant to subsection (b).

7 (B) MULTIPLE UNITS IN AREA.—In the

8 case of a workforce development area that is

9 comprised of more than one unit of general

10 local government, the chief elected official of

11 each such unit shall select the members of the

12 local workforce development board for such area

13 in accordance with an agreement entered into

14 by such officials, in accordance with the State

15 criteria developed under subsection (b).

16 (2) CERTIFICATION.—The Governor shall cer17 tify one local workforce development board for each

18 workforce development area by not later than Octo19 ber 1, 1996.

20 (e) DUTIES OF LOCAL WORKFORCE DEVELOPMENT

21 BOARD.—

22 (1) LOCAL WORKFORCE DEVELOPMENT

23 PLAN.—Each local workforce development board

24 shall develop a biennial strategic plan and provide

25 policy guidance with respect to workforce develop-
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1 ment programs operated within their respective

2 workforce development areas. Such strategic plan

3 shall be consistent with the State’s collaborative

4 workforce development and literacy plan and shall be

5 approved by the appropriate chief elected official or

6 officials. Such local plan shall include the following:

7 (A) Both short-term and long-term goals,

8 and related strategies, to ensure that workforce

9 preparation and development programs, includ10 ing programs established pursuant to this Act,

11 title I of the Rehabilitation Act of 1973, and

12 the Wagner Peyser Act, contribute to a coher13 ent workforce development system in the

14 workforce development area.

15 (B) A description of the performance

16 measures to be used by the local workforce de17 velopment board for measuring the performance

18 of local service providers under chapter 2 of

19 title II, title III, and title I of the Rehabilita20 tion Act of 1973, and the performance of one21 stop career center operators, with whom the

22 Board contracts.

23 (C) A description of the local one-stop ca24 reer center system to be established in the

25 workforce development area, including—
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1 (i) a description of the process the

2 local workforce development board will use

3 to designate or establish career centers

4 which ensures that the most effective and

5 efficient service providers are chosen; and

6 (ii) an identification of the roles of in7 dividual workforce development programs,

8 including programs authorized by the Wag9 ner Peyser Act, and the process for deter10 mining the financial contribution that such

11 programs will make in the operation of the

12 career centers.

13 (D) A description of strategies the local

14 workforce development board will undertake to

15 fully involve local employers, local educational

16 agencies and postsecondary education institu17 tions, adult education and literacy providers,

18 local service providers, and other consumers, in19 cluding individuals with disabilities, in the de20 velopment of the workforce development system.

21 (E) Such other information as requested

22 by the State.

23 (2) IDENTIFICATION OF OCCUPATIONS IN DE24 MAND AND TRAINING NEEDS.—The local workforce

25 development board shall use available labor market
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1 information and other appropriate methods in order

2 to identify and assess the needs of the workforce de3 velopment area with regard to—

4 (A) current and projected demand for

5 workers by occupation;

6 (B) skill levels of the local workforce and

7 the needs of business and industry for a skilled

8 workforce;

9 (C) economic development needs of the

10 area; and

11 (D) the type and availability of workforce

12 preparation and development programs in the

13 area.

14 Such information shall be used to develop the goals

15 of, and activities provided by the workforce develop16 ment programs in the local area.

17 (3) BUDGET AND PROGRAM OVERSIGHT.—

18 (A) BUDGETING.—

19 (i) The local workforce development

20 board, working through the State adminis21 trative agent designated pursuant to sec22 tion 105, shall develop a budget for the

23 purpose of carrying out local programs es24 tablished under chapter 2 of title II, title

25 III, and title I of the Rehabilitation Act of
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1 1973, and for one-stop career center sys2 tems established or designated under sec3 tion 108.

4 (ii) Such budget shall be subject to

5 the approval of the appropriate chief elect6 ed official or officials in the workforce de7 velopment area.

8 (B) PROGRAM OVERSIGHT.—The local

9 workforce development board, in partnership

10 with the chief elected official or officials in the

11 workforce development area, shall conduct over12 sight of the workforce development programs

13 listed in subparagraph (A), of one-stop career

14 centers established under this title, and of pro15 grams established under the Wagner Peyser

16 Act.

17 (4) ADMINISTRATION.—

18 (A) FISCAL AGENT.—

19 (i) The local workforce development

20 board may receive and disburse funds

21 made available for carrying out programs

22 authorized under chapter 2 of title II, title

23 III, and title I of the Rehabilitation Act of

24 1973 of this Act, or to designate a fiscal

25 agent (which may include the State
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1 through a mutual agreement between the

2 local board and the State), for the purpose

3 of disbursement of funds to one-stop cen4 ters and other service providers, as des5 ignated by the local workforce development

6 board.

7 (ii) The Board may employ its own

8 staff, independent of local programs and

9 service providers.

10 (B) LIMITATION.—The workforce develop11 ment board may not operate programs estab12 lished under this Act.

13 (C) CONFLICT OF INTEREST.—No member

14 of a workforce development board may cast a

15 vote on the provision of services by that mem16 ber (or any organization which that member di17 rectly represents) or vote on any matter that

18 would provide direct financial benefit to such

19 member.

20 (5) OTHER.—Each local workforce development

21 board shall carry out such other duties as deter22 mined to be appropriate by the Governor and the in23 dividuals and entities described in section 103,

24 through the collaborative process described in the

25 State plan.
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1 SEC. 108. ESTABLISHMENT OF ONE-STOP CAREER CENTER

2 SYSTEMS.

3 (a) IN GENERAL.—The Governor of a State that de4 sires to receive a grant under one or more of the programs

5 specified in section 102(b) shall ensure that each local

6 workforce development board shall establish or designate

7 a one-stop career center system in the workforce develop8 ment area of such board, consistent with criteria estab9 lished under subsection (b), and not later than July 1,

10 1997.

11 (b) STATE CRITERIA.—The Governor, through the

12 collaborative process described under section 103, shall es13 tablish statewide criteria for use by local workforce devel14 opment boards in the designation or establishment of one15 stop career center systems to ensure that the most effec16 tive and efficient service providers are chosen. Such cri17 teria shall be consistent with the requirements prescribed

18 under subsection (c).

19 (c) ONE-STOP CAREER CENTER SYSTEM REQUIRE20 MENTS.—At a minimum, one-stop career center systems

21 shall include—

22 (1) common intake;

23 (2) preliminary assessment;

24 (3) integrated job development and placement

25 for multiple workforce development programs;
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1 (4) unified and linked computer systems, in2 cluding the availability of labor market information

3 as described under subtitle B, and linkages through

4 uniform management information systems; and

5 (5) to the extent practicable, at least one phys6 ical, co-located site which provides comprehensive

7 and fully integrated workforce development services

8 to any individual seeking such services.

9 Local workforce development areas are encouraged to es10 tablish a network of comprehensive and fully-integrated

11 co-located one-stop career centers, combined with multiple

12 affiliated sites that are linked through electronic and tech13 nological access points.

14 (d) COMMON ACCESS.—Information pertaining to the

15 labor market which is compiled pursuant to the Wagner

16 Peyser Act, as described in subtitle B of this title, shall

17 be available, to the extent practicable, through integrated

18 electronic networks, at all one-stop career center systems.

19 (e) ELIGIBILITY FOR DESIGNATION.—Any entity or

20 consortium of entities located in the workforce develop21 ment area may be designated by the local workforce devel22 opment board to operate a one-stop career center or to

23 participate in a one-stop career center system. Such enti24 ties may include the following:

25 (1) Institutions of higher education.
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1 (2) Local educational agencies.

2 (3) Area vocational education schools.

3 (4) Local employment service offices, estab4 lished under the Wagner Peyser Act.

5 (5) Private nonprofit organizations.

6 (6) Private for-profit entities.

7 (7) Agencies of local governments.

8 (8) Other interested organizations and entities

9 of demonstrated effectiveness, consistent with State

10 criteria established pursuant to subsection (b).

11 (f) DUTIES.—Each one-stop career center shall carry

12 out the following duties:

13 (1) PROVISION OF CORE SERVICES.—A center

14 shall make available the following information and

15 core services to individuals on a universal basis, in

16 the workforce development area in which such center

17 is located:

18 (A) Outreach and intake for services pro19 vided under chapter 2 of title II, title III, title

20 IV, and title I of the Rehabilitation Act of

21 1973.

22 (B) A preliminary assessment of the skill

23 levels and the need for services under chapter

24 2 of title II, title III, title IV, and title I of the

25 Rehabilitation Act of 1973 of individuals, which
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1 may include such factors as basic skills, occupa2 tional skills, career development skills, prior

3 work experience, employability, interests, apti4 tudes, vocational rehabilitation needs, and sup5 portive service needs.

6 (C) Information relating to local and

7 State, and if appropriate, to regional or na8 tional, occupations in demand and skill require9 ments for such occupations.

10 (D) Information relating to youth services,

11 including information on at-risk youth

12 workforce development programs authorized

13 under title II, on school-to-work opportunities,

14 and on youth apprenticeship opportunities.

15 (E) Career counseling and career planning

16 based on a preliminary assessment of the indi17 vidual.

18 (F) Employability development services,

19 which may include assistance in the preparation

20 of a resume, job interview techniques, and work

21 deportment.

22 (G) Information related to vocational reha23 bilitation services, as provided for in title I of

24 the Rehabilitation Act of 1973.
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1 (H) Information relating to federally fund2 ed education and job training programs (includ3 ing registered apprenticeships), and student aid

4 programs, including the eligibility requirements

5 of and services provided by such programs.

6 (I) Information on, and assistance in

7 accessing referral to additional services through

8 programs providing adult education and literacy

9 services, vocational rehabilitation, workforce

10 preparation and development, and supportive

11 services, including those programs authorized in

12 titles II through V, available in the workforce

13 development area.

14 (J) Information on the extent to which the

15 services provided under title II through V meet

16 or exceed the performance standards estab17 lished under section 108, and other information

18 as developed in the workforce development

19 areas consumer-feedback process.

20 (K) Information on industry-recognized

21 skill standards and assessments.

22 (L) Job listings for local labor market op23 portunities, and job search assistance.

24 (M) Acceptance of applications for unem25 ployment compensation.
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1 (N) Other appropriate activities to assist

2 individuals into employment.

3 (2) DISTRIBUTION OF VOUCHERS.—A center

4 shall serve as the point of distribution of vouchers

5 for education, training, and vocational rehabilitation

6 services to eligible individuals in accordance with

7 section 109.

8 SEC. 109. CERTIFICATION OF EDUCATION, TRAINING, AND

9 VOCATIONAL REHABILITATION SERVICE

10 PROVIDERS.

11 (a) ELIGIBILITY REQUIREMENTS.—A provider of

12 education and training services shall be eligible to receive

13 funds under this title, through the receipt of vouchers, or

14 otherwise, if such provider—

15 (1) is either—

16 (A) eligible to participate in title IV of the

17 Higher Education Act of 1965, or

18 (B) determined to be eligible under the

19 procedures described in subsection (b); and

20 (2) provides the performance-based information

21 required pursuant to subsection (c).

22 (b) ALTERNATIVE ELIGIBILITY PROCEDURE.—(1)

23 The Governor shall establish an alternative eligibility pro24 cedure for providers of education and training services in

25 any State desiring to receive funds under titles III and
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1 V, but that are not eligible to participate in title IV of

2 the Higher Education Act of 1965. Such procedure shall

3 establish minimum acceptable levels of performance for

4 such providers, and shall utilize local workforce develop5 ment boards, for the certification of providers of edu6 cation, training, and vocational rehabilitation services.

7 (2) Notwithstanding paragraph (1), if the participa8 tion of an institution of higher education in any of the

9 programs under such title of such Act is terminated, such

10 institution shall not be eligible to receive funds under this

11 Act for a period of two years.

12 (c) PERFORMANCE-BASED INFORMATION.—The

13 State shall identify performance-based information that is

14 to be submitted by providers of services desiring to be eli15 gible under this section. Such information may include in16 formation relating to—

17 (1) the percentage of students completing the

18 programs conducted by the provider;

19 (2) the rates of licensure of graduates of the

20 programs conducted by the provider;

21 (3) the percentage of graduates of the programs

22 meeting skill standards and certification require23 ments endorsed by the National Skill Standards

24 Board established under the Goals 2000: Educate

25 America Act;
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1 (4) the rates of placement and retention in em2 ployment, and earnings of the graduates of the pro3 grams conducted by the provider;

4 (5) the percentage of students who obtained

5 employment in an occupation related to the program

6 conducted by the provider;

7 (6) the warranties or guarantees provided by

8 such provider relating to the skill levels or employ9 ment to be attained by students; and

10 (7) other information for providers of services

11 under title I of the Rehabilitation Act of 1973 that

12 reflects the goal of serving individuals with the most

13 severe disabilities.

14 (d) ADMINISTRATION.—

15 (1) STATE AGENCY.—The Governor shall des16 ignate a State agency to collect, verify, and dissemi17 nate the performance-based information submitted

18 pursuant to subsection (c).

19 (2) APPLICATION.—A provider of education and

20 training services that desires to be eligible to receive

21 funds under this title shall submit the information

22 required under subsection (c) to the State agency

23 designated under paragraph (1) at such time and in

24 such form as such State agency may require.
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1 (3) LIST OF ELIGIBLE PROVIDERS.—The State

2 agency shall compile a list of eligible providers, ac3 companied by the performance-based information

4 submitted, and disseminate such list and informa5 tion to the local workforce development boards with6 in the State.

7 (4) ACCURACY OF INFORMATION.—

8 (A) IN GENERAL.—If the State agency de9 termines that information concerning a provider

10 is inaccurate, such provider shall be disqualified

11 from receiving funds under this title for a pe12 riod of two years, unless such provider can

13 demonstrate to the satisfaction of the Governor

14 or his or her designee, that the information was

15 provided in good faith.

16 (B) APPEAL.—The Governor shall estab17 lish a procedure for a service provider to appeal

18 a determination by a State agency that results

19 in a disqualification under subparagraph (A).

20 Such procedure shall provide an opportunity for

21 a hearing and prescribe appropriate time limits

22 to ensure prompt resolution of the appeal.

23 (5) ASSISTANCE IN DEVELOPING INFORMA24 TION.—The State agency established pursuant to

25 paragraph (1) may provide technical assistance to
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1 education and training providers in developing the

2 information required under subsection (b). Such as3 sistance may include facilitating the utilization of

4 State administrative records, such as unemployment

5 compensation wage records, and other appropriate

6 coordination activities.

7 (e) ON-THE-JOB TRAINING EXCEPTION.—

8 (1) IN GENERAL.—Providers of on-the-job

9 training shall not be subject to the requirements of

10 subsections (a), (b), and (c).

11 (2) COLLECTION AND DISSEMINATION OF IN12 FORMATION.—The Workforce Development Board

13 shall collect such performance-based information

14 from on-the-job training providers as the Governor

15 may require, and shall disseminate such information

16 to the one-stop career centers.

17 SEC. 110. MANAGEMENT INFORMATION SYSTEMS.

18 (a) IN GENERAL.—Each State shall use a portion of

19 the funds it receives under this Act to design a unified

20 management information system.

21 (b) REQUIREMENTS.—Each unified management in22 formation system shall—

23 (1) notwithstanding any other provision of Fed24 eral law, be utilized for federally required fiscal re-
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1 porting and monitoring for each of the programs au2 thorized under this Act;

3 (2) be used by all agencies involved in

4 workforce development activities, including one-stop

5 career centers which shall have the capability to

6 track the overall public investments within the State

7 and workforce development areas, and to inform pol8 icymakers as to the results being achieved through

9 that investment;

10 (3) contain a common structure of financial re11 porting requirements, fiscal systems and monitoring

12 for all workforce development expenditures included

13 in the workforce development system that shall uti14 lize the common data elements and definitions in15 cluded in title I; and

16 (4) support local efforts to establish workforce

17 development systems, including intake and eligibility

18 determination for all services.

19 Subtitle B—Amendments to

20 Wagner-Peyser Act

21 SEC. 131. GENERAL PROGRAM REQUIREMENTS.

22 (a) PURPOSE.—Section 1 of the Act of June 6, 1933

23 (commonly known as the ‘‘Wagner-Peyser Act’’; 29 U.S.C.

24 49) is amended by striking ‘‘public employment offices’’
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1 and inserting ‘‘local employment service offices open to the

2 public’’.

3 (b) DEFINITIONS.—Section 2 of such Act (29 U.S.C.

4 49a) is amended—

5 (1) in paragraph (1), by striking ‘‘Job Training

6 Partnership Act’’ and inserting ‘‘Consolidated and

7 Reformed Education, Employment, and Rehabilita8 tion Systems Act’’;

9 (2) in paragraph (2) to read as follows:

10 ‘‘(2) the term ‘local workforce development

11 board’ means a local workforce development board

12 established under title I of the Consolidated and Re13 formed Education, Employment, and Rehabilitation

14 Systems Act;’’;

15 (3) in paragraph (4) to read as follows:

16 ‘‘(4) the term ‘local workforce development

17 area’ means a local workforce development area es18 tablished under title I of the Consolidated and Re19 formed Education, Employment, and Rehabilitation

20 Systems Act;’’;

21 (4) in paragraph (5), by striking the period at

22 the end and inserting a semicolon; and

23 (5) by adding at the end the following new

24 paragraphs:
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1 ‘‘(6) the term ‘local employment service office’

2 means an office which provides employment services

3 to the general public under a one-stop career center

4 system; and

5 ‘‘(7) the term ‘one-stop career center system’

6 means a one-stop career center system established

7 under title I of the Consolidated and Reformed Edu8 cation, Employment, and Rehabilitation Systems

9 Act.’’.

10 (c) DUTIES.—Section 3(a) of such Act (29 U.S.C.

11 49b(a)) is amended to read as follows:

12 ‘‘(a) The Secretary of Labor shall—

13 ‘‘(1) assist in the coordination and development

14 of a nationwide system of labor exchange services for

15 the general public, provided through the one-stop ca16 reer center system;

17 ‘‘(2) assist in the development of performance

18 standards, benchmarks, and continuous improve19 ment models for such nationwide system which en20 sures private sector satisfaction and meets the de21 mands of jobseekers; and

22 ‘‘(3) ensure the continued services for individ23 uals receiving unemployment compensation.’’.

24 (d) REQUIREMENTS FOR RECEIPT OF FUNDS.—Sec25 tion 4 of such Act (29 U.S.C. 49c) is amended by striking
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1 ‘‘a State shall, through its legislature’’ and inserting ‘‘the

2 Governor of a State, through the collaborative process de3 scribed in title I of the Consolidated and Reformed Edu4 cation, Employment, and Rehabilitation Systems Act’’.

5 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

6 5 of such Act (29 U.S.C. 49d) is amended by inserting

7 before the period at the end the following: ‘‘, of which not

8 less than 25 percent shall be for carrying out title II of

9 this Act’’.

10 (f) USE OF FUNDS UNDER THIS ACT.—Section

11 7(c)(2) of such Act (29 U.S.C. 49f(c)(2)) is amended by

12 striking ‘‘any of the following provisions of law’’ and all

13 that follows and inserting ‘‘the Consolidated and Re14 formed Education, Employment, and Rehabilitation Sys15 tems Act.’’.

16 (g) STATE PLAN.—Section 8 of such Act (29 U.S.C.

17 49g) is amended—

18 (1) in subsection (a) to read as follows:

19 ‘‘(a) Any State desiring to receive assistance under

20 this Act shall submit to the Secretary, as part of the State

21 workforce development and literacy plan authorized under

22 title I of the Consolidated and Reformed Education, Em23 ployment, and Rehabilitation Systems Act, detailed plans

24 for carrying out the provisions of this Act within such

25 State.’’;
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1 (2) by striking subsections (b), (c), and (e); and

2 (3) by redesignating subsection (d) as sub3 section (b).

4 (h) ELIMINATION OF FEDERAL ADVISORY COUN5 CIL.—Section 11 of such Act (29 U.S.C. 49j) is hereby

6 repealed.

7 (i) CONFORMING AMENDMENTS.—

8 (1) After section 2 of such Act insert the fol9 lowing new heading:

10 ‘‘TITLE I—GENERAL PROGRAM

11 REQUIREMENTS’’.

12 (2) Section 4 of such Act is amended by strik13 ing ‘‘United States Employment Service’’ and insert14 ing ‘‘Secretary of Labor’’.

15 (3) Section 7(b) of such Act is amended—

16 (A) in paragraph (1), by striking ‘‘public

17 employment service offices’’ and inserting ‘‘local

18 employment service offices’’; and

19 (B) in paragraph (2), by striking ‘‘private

20 industry council’’ and inserting ‘‘local workforce

21 development board’’.

22 (4) Section 7(d) of such Act is amended—

23 (A) by striking ‘‘United States Employ24 ment Service’’ and inserting ‘‘Secretary of

25 Labor’’; and
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1 (B) by striking ‘‘Job Training Partnership

2 Act’’ and inserting ‘‘Consolidated and Reformed

3 Education, Employment, and Rehabilitation

4 Systems Act’’.

5 (5) Section 12 of such Act is amended by strik6 ing ‘‘The Director, with the approval of the Sec7 retary of Labor,’’ and inserting ‘‘The Secretary of

8 Labor’’.

9 SEC. 132. LABOR MARKET INFORMATION.

10 The Act of June 6, 1933 (commonly known as the

11 ‘‘Wagner-Peyser Act’’; 29 U.S.C. 49), as amended by sec12 tion 131, is further by adding at the end the following

13 new title:

14 ‘‘TITLE II—LABOR MARKET

15 INFORMATION

16 ‘‘SEC. 21. PURPOSE.

17 ‘‘The purpose of this title is to ensure a comprehen18 sive and coordinated system of labor market information

19 which will provide locally based, accurate, up-to-date, eas20 ily accessible, and user friendly labor market information

21 through a cooperative Federal, State, and local governance

22 structure which includes partnerships with the private sec23 tor at all levels.
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1 ‘‘SEC. 22. SYSTEM CONTENT.

2 ‘‘The Secretary of Labor, in accordance with the pro3 visions of this title, shall oversee the development, mainte4 nance, and continuous improvement of a nationwide sys5 tem of labor market information using data from all avail6 able and appropriate sources, which shall include—

7 ‘‘(1) statistical data from survey and projection

8 programs and data from administrative reporting

9 systems, which, taken together, shall enumerate, es10 timate, and project the supply and demand for labor

11 at national, State, and local levels in a timely man12 ner, including data on—

13 ‘‘(A) the demography, socioeconomic char14 acteristics, and current employment status of

15 the population, including self-employed, part16 time, and seasonal workers;

17 ‘‘(B) the job duties, education and training

18 requirements, skills, wages, benefits, working

19 conditions, and industrial distribution of occu20 pations, as well as current and projected em21 ployment opportunities and trends by industry

22 and occupation;

23 ‘‘(C) the educational attainment, training,

24 skills, skill levels, and occupations of the popu25 lation;
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1 ‘‘(D) information maintained in a longitu2 dinal manner on the quarterly earnings, estab3 lishment and industry affiliation, and geo4 graphic location of employment for all individ5 uals for whom such information is collected by

6 the States; and

7 ‘‘(E) the incidence, industrial and geo8 graphical location, and number of workers dis9 placed by permanent layoffs and plant closings;

10 ‘‘(2) State and local employment and consumer

11 information, which shall be current, comprehensive,

12 localized, and automated, and which shall be acces13 sible, easy to understand, and in a form useful for

14 immediate employment, entry into education and

15 training programs, and career exploration, on—

16 ‘‘(A) job openings, locations, hiring re17 quirements, and application procedures, as well

18 as profiles of employers in the local labor mar19 ket describing the nature of work performed,

20 employment requirements, wages, benefits, and

21 hiring patterns;

22 ‘‘(B) job seekers, including their education

23 and training, skills, skill levels, employment ex24 perience, and employment goals; and
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1 ‘‘(C) education courses, training programs,

2 and job placement programs, including—

3 ‘‘(i) performance information, such as

4 the ratio of program completion, acquisi5 tion of industry-recognized skill standards,

6 job placement, earnings, and the level of

7 satisfaction of the participants and their

8 employers; and

9 ‘‘(ii) descriptive information, such as

10 eligibility requirements, costs, financial

11 support, or other supportive services, and

12 other appropriate information which may

13 be available with these courses and pro14 grams;

15 ‘‘(3) technical standards for data and informa16 tion that will—

17 ‘‘(A) ensure compatability and additivity of

18 data and information from local to State and

19 national levels;

20 ‘‘(B) support standardization and aggrega21 tion of data and information from the adminis22 trative reporting systems of employment-related

23 programs; and

24 ‘‘(C) include—
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1 ‘‘(i) classification and coding systems

2 for industries, occupations, skills, pro3 grams, and courses;

4 ‘‘(ii) nationally standardized defini5 tions of terms;

6 ‘‘(iii) a common system for designat7 ing geographic areas;

8 ‘‘(iv) quality control mechanisms for

9 data collection and analysis; and

10 ‘‘(v) common schedules for data col11 lection and dissemination;

12 ‘‘(4) analysis of data and information for uses

13 including—

14 ‘‘(A) national, State, and local economic

15 policymaking;

16 ‘‘(B) the implementation of Federal poli17 cies, including the allocation of Federal funds

18 to States and localities and the facilitation of

19 job search and hiring in local labor markets;

20 ‘‘(C) national, State, and local program

21 planning and evaluation; and

22 ‘‘(D) research on labor market dynamics;

23 ‘‘(5) dissemination mechanisms for data and

24 analysis, including mechanisms which may be stand25 ardized among the States and technical standards in
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1 the design of automated data bases, and the design

2 of user interfaces and communications protocols;

3 ‘‘(6) programs of technical assistance for States

4 and localities in the development, maintenance, and

5 utilization of data, analysis, and dissemination

6 mechanisms, including assistance in adopting and

7 utilizing automated systems and improving the ac8 cess, through electronic and other means, of youth,

9 adults, and employers to labor market information

10 for localities, States, and the Nation;

11 ‘‘(7) programs of research and demonstration,

12 which may be carried out by States and other public

13 or private entities, on ways to improve the products

14 and processes authorized in this title; and

15 ‘‘(8) objective performance measures, which will

16 allow for the continuous monitoring of the progress

17 of the labor market information system at national,

18 State, and local levels.

19 ‘‘SEC. 23. FEDERAL RESPONSIBILITIES.

20 ‘‘(a) IN GENERAL.—The Nation’s labor market infor21 mation system shall be planned, administered, overseen,

22 and evaluated by a cooperative governance structure in23 volving the Federal Government and the States.
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1 ‘‘(b) DUTIES.—The Secretary, with respect to data

2 collection, analysis, and dissemination of labor market in3 formation, shall carry out the following duties:

4 ‘‘(1) Reconcile all statistical and administrative

5 data collection activities within the Department of

6 Labor, including the Employment and Training Ad7 ministration, Employment Standards Administra8 tion, and Occupational Health and Safety Adminis9 tration, to those of the Bureau of Labor Statistics.

10 ‘‘(2) Assign responsibilities, as appropriate, to

11 agencies such as the Employment and Training Ad12 ministration, to assist the Bureau of Labor Statis13 tics in the collection, analysis and, particularly, in

14 the dissemination of labor market information, and

15 in the provision of training and technical assistance

16 to users of information, including the States, em17 ployers, youth, and adults.

18 ‘‘(3) In cooperation with other Federal agen19 cies, including but not limited to the Departments of

20 Commerce, Defense, Treasury, Education, Health

21 and Human Services, Agriculture, and the Office of

22 Management and Budget, establish and maintain

23 mechanisms for ensuring complementarity and non24 duplication in the development and operation of sta25 tistical and administrative data collection activities,
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1 in order to ensure a comprehensive labor market in2 formation system.

3 ‘‘(4) Actively seek the participation of other

4 Federal agencies, particularly the National Center

5 for Education Statistics and the Division of Adult

6 and Vocational Education of the Department of

7 Education, in the design and provision of standard8 ized information to the States to support section

9 102(a)(2), and in the dissemination of labor market

10 information.

11 ‘‘(c) ADDITIONAL DUTIES.—The Secretary, acting

12 through the Bureau of Labor Statistics, and in coopera13 tion with other Federal agencies, shall—

14 ‘‘(1) establish and maintain, with the coopera15 tion of the States, elements of the system described

16 in sections 102(a)(1) and 102(a)(3);

17 ‘‘(2) develop and promulgate standards, defini18 tions, formats, collection methodologies, and other

19 necessary system elements for the use of the States

20 in their assembling and presentation of the employ21 ment information specified in section 102(a)(2);

22 ‘‘(3) eliminate gaps and duplication in statis23 tical undertakings, with the systemization of wage

24 surveys as an early priority;
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1 ‘‘(4) recommend any needed improvements in

2 administrative reporting systems to support the de3 velopment of labor market information from their

4 data; and

5 ‘‘(5) ensure that—

6 ‘‘(A) data are sufficiently timely and lo7 cally detailed for uses including those specified

8 in section 102(a)(4);

9 ‘‘(B) administrative records are standard10 ized to facilitate the aggregation of data from

11 local to State and national levels and to support

12 the creation of new statistical series from pro13 gram records; and

14 ‘‘(C) paperwork and reporting require15 ments on employers and individuals are re16 duced.

17 ‘‘SEC. 24. ANNUAL PLAN.

18 ‘‘(a) IN GENERAL.—The Secretary of Labor, working

19 through the Bureau of Labor Statistics, and in consulta20 tion with other appropriate Federal agencies, shall prepare

21 an annual plan, which shall be the operational mechanism

22 for achieving a cooperative Federal/State governance

23 structure for labor market information. The annual plan

24 shall provide the verbal justification for the Department

25 of Labor’s budget request to Congress by describing the
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1 activities of the Bureau, other agencies of the Department

2 of Labor, and other Federal agencies with regard to data

3 collection, analysis, and dissemination of labor market in4 formation for fiscal years succeeding the fiscal year in

5 which the plan is developed and shall include—

6 ‘‘(1) the results of a periodic review of users’

7 needs, including the identification of new employ8 ment issues and the attendant emergence of new

9 needs, on the part of Congress, the States, employ10 ers, youth, and adults, for data, analysis, and dis11 semination;

12 ‘‘(2) an evaluation, including the results of ob13 jective measures, of the performance of the labor

14 market information system in meeting these needs

15 and the steps to be taken to overcome deficiencies;

16 ‘‘(3) a summary of ongoing data programs and

17 activities under section 102 and a description of the

18 development of new data programs, analytical tech19 niques, definitions and standards, dissemination

20 mechanisms, training and technical assistance, gov21 ernance mechanisms, and funding processes to meet

22 new needs; and

23 ‘‘(4) the results of an annual review of the costs

24 to the States of meeting contract requirements for

25 data production under this title, including a descrip-
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1 tion of how the Secretary’s requested budget will

2 cover these costs.

3 ‘‘(b) COOPERATION WITH THE STATES.—The Sec4 retary shall involve the States with the Bureau of Labor

5 Statistics in a cooperative manner in the development of

6 the plan by—

7 ‘‘(1) establishing procedures and mechanisms

8 for holding formal and periodic consultations on

9 products and administration of the system, at least

10 once each quarter, with elected representatives from

11 each of the 8 Federal regions of the Department of

12 Labor and with representatives of the States (by and

13 from among the State directors of labor market in14 formation, according to a process set forth by the

15 Secretary); and

16 ‘‘(2) incorporating in the annual plan, for its

17 submission to Congress, the results of these con18 sultations, including any supplementary or dissent19 ing views from representatives of the States.

20 ‘‘(c) REPRESENTATIVES OF STATES DEEMED TO BE

21 FEDERAL EMPLOYEES.—For purposes of the development

22 of the annual plan and to meet the provisions of Office

23 of Management and Budget Circular A–11, the represent24 atives of the States, elected in accordance with subsection
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1 (b)(1), shall be considered to be employees of the Depart2 ment of Labor.

3 ‘‘SEC. 25. GOVERNOR’S RESPONSIBILITIES.

4 ‘‘(a) DESIGNATION OF STATE AGENCY.—The Gov5 ernor of each State shall designate a single State agency

6 to be the agency responsible for the management and over7 sight of a statewide comprehensive labor market informa8 tion system and for the State’s participation in the cooper9 ative Federal/State governance structure for the nation10 wide labor market information system.

11 ‘‘(b) DUTIES.—In order to receive Federal financial

12 assistance under this Act, the State agency shall—

13 ‘‘(1) develop, maintain, and continuously im14 prove a comprehensive labor market information sys15 tem, which shall—

16 ‘‘(A) include all the elements specified in

17 section 102; and

18 ‘‘(B) be responsive to the needs of the

19 State and its localities for planning and evalua20 tive data, including employment and economic

21 analyses and projections, as required by this

22 Act, the Consolidated and Reformed Education,

23 Employment, and Rehabilitation Systems Act,

24 the Social Security Act, and other provisions of
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1 law under which Congress has required the use

2 of labor market information;

3 ‘‘(2) ensure the performance of contract and

4 grant responsibilities for data collection, analysis,

5 and dissemination;

6 ‘‘(3) conduct such other data collection, analy7 sis, and dissemination activities as will ensure com8 prehensive State and local labor market information;

9 ‘‘(4) actively seek the participation of other

10 State and local agencies, with particular attention to

11 State education, economic development, human serv12 ices, and welfare agencies, in data collection, analy13 sis, and dissemination activities in order to ensure

14 complementarity and compatability among data; and

15 ‘‘(5) participate in the development of the na16 tional annual plan.

17 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this Act

18 shall be construed as limiting the State agency’s ability

19 to conduct additional data collection, analysis, and dis20 semination activities with State funds or with Federal

21 funds from sources other than this Act.’’.
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1 TITLE II—YOUTH WORKFORCE

2 PREPARATION AND DEVELOP3 MENT CONSOLIDATION

4 GRANT

5 SEC. 201. PURPOSES.

6 It is the purpose of this title to provide States and

7 local communities maximum flexibility in designing

8 workforce preparation programs that—

9 (1) best suit the needs of in-school and at-risk

10 youth in their communities, as well as the skill needs

11 of State and local employers;

12 (2) promote strong connections between in13 school and at-risk programs, to ensure that youth

14 are prepared for good jobs and further education op15 portunities;

16 (3) promote the formation of business and edu17 cation partnerships that are dedicated to linking the

18 worlds of school and work; and

19 (4) promote high academic and occupational

20 standards.

21 SEC. 203. DEFINITIONS.

22 For purposes of this title:

23 (1) The term ‘‘administration’’ means activities

24 of a State necessary for the proper and efficient per25 formance of its duties under this title, including su-
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1 pervision, but does not include curriculum develop2 ment activities, personnel development, or research

3 activities.

4 (2) The term ‘‘all aspects of the industry’’

5 means strong experience in, and understanding of,

6 all aspects of the industry the students are prepar7 ing to enter, including planning, management, fi8 nances, technical and production skills, underlying

9 principles of technology, labor issues, and health and

10 safety.

11 (3) The term ‘‘articulation agreement’’ means a

12 commitment to a program designed to provide stu13 dents with a nonduplicative sequence of progressive

14 achievement leading to competencies in a tech-prep

15 education program.

16 (4) The term ‘‘cooperative education’’ means a

17 method of instruction of vocational education for in18 dividuals who, through written cooperative arrange19 ments between the school and employers, receive in20 struction, including required academic courses and

21 related vocational instruction by alternation of study

22 in school with a job in any occupational field. Such

23 alternation shall be planned and supervised by the

24 school and employers so that each contributes to the

25 student’s education and to his or her employability.
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1 Work periods and school attendance may be on al2 ternate half days, full days, weeks, or other periods

3 of time in fulfilling the cooperative program.

4 (5) The term ‘‘corrections vocational education’’

5 means programs administered by the State to assist

6 juvenile and adult criminal offenders in correctional

7 institutions in the State, including correctional insti8 tutions operated by local authorities.

9 (6) The term ‘‘curricula’’ means instructional

10 and related or supportive material, including mate11 rials using advanced learning technology, in any oc12 cupational field which is designed to strengthen the

13 academic foundation and prepare individuals for em14 ployment at the entry level or to upgrade occupa15 tional competencies of those previously or presently

16 employed in any occupational field, and appropriate

17 counseling and guidance material.

18 (7) The term ‘‘displaced homemaker’’ means an

19 individual who—

20 (A) is an adult; and

21 (B)(i) has worked as an adult primarily

22 without remuneration to care for the home and

23 family, and for that reason has diminished mar24 ketable skills;
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1 (ii) has been dependent on public assist2 ance or on the income of a relative but is no

3 longer supported by such income;

4 (iii) is a parent whose youngest dependent

5 child will become ineligible to receive assistance

6 under the program for aid to families with de7 pendent children under part A of title IV of the

8 Social Security Act within 2 years of the par9 ent’s application for assistance under this title;

10 or

11 (iv) is unemployed or underemployed and

12 is experiencing difficulty in obtaining any em13 ployment or suitable employment, as appro14 priate, or

15 (C) is described in subparagraph (A) or

16 (B) and is a criminal offender.

17 (8) Except as otherwise provided, the term ‘‘eli18 gible institution’’ means a local educational agency,

19 an area vocational education school, an intermediate

20 educational agency, a postsecondary educational in21 stitution, or a State corrections educational agency.

22 (9) The term ‘‘Secretary’’ means the Secretary

23 of Education.

24 (10) The term ‘‘sequential course of study’’

25 means an integrated series of courses which are di-
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1 rectly related to the educational and occupational

2 skills preparation of individuals for jobs, or prepara3 tion for postsecondary education.

4 (11) The term ‘‘single parent’’ means an indi5 vidual who—

6 (A) is unmarried or legally separated from

7 a spouse; and

8 (B)(i) has a minor child or children for

9 which the parent has either custody or joint

10 custody; or

11 (ii) is pregnant.

12 (12) The term ‘‘specific job training’’ means

13 training and education for skills required by the em14 ployer that provides the individual student with the

15 ability to obtain employment and to adapt to the

16 changing demands of the workplace.

17 (13) The term ‘‘tech-prep education program’’

18 means a combined secondary and postsecondary pro19 gram which—

20 (A) leads to an associate degree or 2-year

21 certificate;

22 (B) provides technical preparation in at

23 least 1 field of engineering technology, applied

24 science, mechanical, industrial, or practical art

25 or trade, or agriculture, health, or business;
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1 (C) builds student competence in mathe2 matics, science, and communications (including

3 through applied academics) through a sequen4 tial course of study; and

5 (D) leads to placement in employment.

6 (14) The term ‘‘vocational education’’ means

7 organized educational programs offering a sequence

8 of courses which are directly related to the prepara9 tion of individuals in paid or unpaid employment in

10 current or emerging occupations requiring other

11 than a baccalaureate or advanced degree. Such pro12 grams shall include competency-based applied learn13 ing which contributes to an individual’s academic

14 knowledge, higher-order reasoning, and problem15 solving skills, work attitudes, general employability

16 skills, and the occupational-specific skills necessary

17 for economic independence as a productive and con18 tributing member of society. Such term also includes

19 applied technology education.

20 Subtitle A—State Funding

21 SEC. 211. NATIONAL AND STATE FUNDING.

22 (a) NATIONAL PROGRAMS.—In each fiscal year, of

23 the amounts made available under section 3, the Secretary

24 shall reserve 20 percent or $25,000,000, whichever is less,

25 to carry out the provisions of subtitle D.
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1 (b) STATE ALLOTMENT.—

2 (1) IN GENERAL.—In each fiscal year from the

3 amounts made available under section 3, the Sec4 retary shall allot to each State for each fiscal year

5 an amount which bears the same ratio as an average

6 of—

7 (A) the funding allotted in fiscal year 1995

8 under section 101 and 101A of the Carl D.

9 Perkins Vocational and Applied Technology

10 Education Act as such Act was in effect on the

11 day before the date of the enactment of this

12 Act; and

13 (B) the funding allotted in fiscal year 1995

14 under section 252 and 262 of the Job Training

15 Partnership Act as such Act was in effect on

16 the day before the date of the enactment of this

17 Act.

18 (2) DEFINITION.—For the purposes of this sub19 section the term ‘‘State’’ means, in addition to the

20 several States, the District of Columbia, the Com21 monwealth of Puerto Rico, the Virgin Islands,

22 Guam, American Samoa, and the Northern Mariana

23 Islands.
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1 (c) FUNDING FOR STATE PROGRAMS.—Of the funds

2 allotted to a State under subsection (b) for each fiscal

3 year, the Governor shall—

4 (1) make available not less than 90 percent to

5 local providers;

6 (2) use not more than 8 percent for State pro7 grams described in section 222; and

8 (3) use not more than 2 percent for administra9 tive purposes.

10 SEC. 212. WITHIN STATE ALLOCATION.

11 (a) IN GENERAL.—Subject to the provisions of sec12 tion 211, from the remainder of the allotment made to

13 each State from funds appropriated to carry out this title

14 for each fiscal year, the Governor shall allocate—

15 (1) to eligible institutions an amount equal to

16 not less than 40 percent of such amount for in17 school youth programs described in section 241;

18 (2) to local workforce development boards an

19 amount equal to not less than 40 percent of such

20 amount for at-risk youth programs described in sec21 tion 245; and

22 (3) the remainder of any amounts under this

23 subsection to carry out the purposes of paragraph

24 (1) or (2).

25 (b) MINIMUM GRANT AMOUNTS.—
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1 (1) LOCAL EDUCATIONAL AGENCIES.—A local

2 educational agency or consortium of such agencies

3 that receives a subgrant from a State under this

4 subtitle for any fiscal year shall receive not less than

5 $15,000.

6 (2) POSTSECONDARY INSTITUTIONS.—A post7 secondary institution or consortium of such institu8 tions that receives a subgrant from a State under

9 this subtitle for any fiscal year shall receive not less

10 than $50,000.

11 (3) LOCAL DEVELOPMENT BOARD.—A local de12 velopment board that receives a subgrant from a

13 State under this subtitle for any fiscal year shall re14 ceive not less than $15,000.

15 (c) REALLOCATION.—

16 (1) IN GENERAL.—In any academic year that a

17 local workforce development board or an eligible in18 stitution does not expend all of the amounts it is al19 located for such year, such workforce development

20 board or eligible institution shall return any unex21 pended amounts to the State to be reallocated under

22 subsection (a).

23 (2) REALLOCATION OF AMOUNTS RETURNED

24 LATE IN AN ACADEMIC YEAR.—In any academic year

25 in which amounts are returned to the State and the
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1 State is unable to reallocate such amounts according

2 to such sections in time for such amounts to be ex3 pended in such academic year, the State may retain

4 such amounts to be distributed in combination with

5 amounts provided under this subtitle for the follow6 ing academic year.

7 Subtitle B—State Organizational,

8 Planning, and Reporting Re9 sponsibilities

10 SEC. 221. STATE PLAN.

11 In addition to the requirements described in title I,

12 a State that desires to receive funds for any fiscal year

13 under this title shall submit to the Secretary of Education

14 a State plan that includes—

15 (1) a description of how the State will adopt,

16 develop, or assist local providers to adopt or develop

17 model curricula and innovative instructional meth18 odologies, to be used in the secondary, and where

19 possible, the elementary grades, and in programs for

20 at-risk youth that integrate academic, vocational,

21 and work-based learning, stressing applied and con22 textual learning, and promote career awareness;

23 (2) a description of how the State will expand

24 and improve career exploration and guidance coun25 seling in the elementary and secondary grades,
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1 which may include linkages to career exploration and

2 guidance counseling and labor market information

3 services outside of the school system;

4 (3) a description of the strategy of the State for

5 integrating academic, vocational, and work-based

6 learning.

7 (4) a description of how the State will develop

8 a State process for issuing skill certificates that, to

9 the extent feasible, are consistent with the skill

10 standards certification systems endorsed by the Na11 tional Skill Standards Board; and

12 (5) a description of how the State will promote

13 the active involvement of business (including small14 and medium-sized businesses) in the planning, devel15 opment, and implementation of youth workforce de16 velopment programs authorized under this title.

17 SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.

18 (a) GENERAL AUTHORITY.—From amounts made

19 available to a State under section 211, each State shall

20 conduct State programs and activities.

21 (b) REQUIRED USES OF FUNDS.—The programs and

22 activities described in subsection (a) shall include an as23 sessment of programs conducted with assistance under

24 this title, including the development of—
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1 (1) performance standards and measures for

2 such programs; and

3 (2) program improvement and accountability

4 with respect to such programs.

5 (c) ADDITIONAL USES OF FUNDS.—The programs

6 and activities described in subsection (a) may include—

7 (1) the support for tech-prep education;

8 (2) support for workforce preparation programs

9 for single parents, displaced homemakers, and single

10 pregnant women;

11 (3) support for corrections vocational education;

12 (4) professional development activities for voca13 tional teachers, academic teachers, school adminis14 trators, counselors, workplace mentors, and local

15 providers regarding integration of vocational, aca16 demic, and work-based curricula, including inservice

17 and preservice training of teachers in state-of-the-art

18 programs and techniques;

19 (5) development, dissemination, and field test20 ing of work-based learning curricula, especially—

21 (A) curricula that integrate vocational,

22 academic, and work-based methodologies; and

23 (B) curricula that provide a coherent se24 quence of courses through which academic and

25 occupational skills may be measured;
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1 (6) leadership and instructional programs in

2 technology education;

3 (7) data collection;

4 (8) support for 1-stop career centers described

5 in section 108; and

6 (9) support for cooperative education programs.

7 SEC. 223. INCENTIVE AWARDS.

8 The State, may, from the amount made available

9 under section 211(c)(2) for any fiscal year make perform10 ance awards to 1 or more eligible institutions or local pro11 viders that have—

12 (1) exceeded in the performance goals described

13 in section 224; or

14 (2) implemented exemplary workforce develop15 ment systems at the local level in accordance with

16 the purposes described in section 201.

17 SEC. 224. CORE STANDARDS, PERFORMANCE GOALS AND

18 MEASURES.

19 (a) GENERAL AUTHORITY.—

20 (1) STANDARDS AND MEASURES.—In addition

21 to the State’s goals under section 104, each State

22 receiving funds under this title shall have developed

23 or shall develop and implement a statewide system

24 of core standards and measures of performance for
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1 workforce development programs serving youth in

2 coordination with other titles of this Act.

3 (2) STATEWIDE SYSTEM.—Each statewide sys4 tem, in accordance with the provisions of section

5 104, shall—

6 (A) establish or have established perform7 ance goals to define the level of performance to

8 be achieved by youth served under this title and

9 to evaluate the quality and effectiveness of serv10 ices and activities under this title;

11 (B) express such goals in an objective,

12 quantifiable, and measurable form;

13 (C) establish progress indicators that the

14 State and local recipients will use in measuring

15 or assessing progress toward achieving such

16 goals; and

17 (D) provide biennial reports to the public

18 and to the Secretary on the State’s progress in

19 achieving its goals.

20 (b) REQUIREMENTS.—Each system developed under

21 subsection (a) shall include—

22 (1) measures of academic and occupational

23 competency gains, including progress in the achieve24 ment of the following:
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1 (A) Academic and occupational competency

2 attainment which includes—

3 (i) attainment of challenging State

4 academic standards;

5 (ii) attainment of challenging voca6 tional-technical education standards; and

7 (iii) attainment of industry-recognized

8 occupational standards, including basic

9 workplace competencies and industry-rec10 ognized skill standards (endorsed by the

11 National Skill Standards Board), which

12 may include the receipt of a skill certificate

13 in the occupation for which the student

14 has been prepared;

15 (B) retention in school or completion of

16 secondary school or the equivalent;

17 (C) placement into additional training or

18 postsecondary education, military service, reg19 istered apprenticeship, or employment;

20 (D) employment retention and earnings

21 levels;

22 (2) reduction of the drop-out rate; and

23 (3) success of special populations in meeting

24 these performance standards.
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1 (c) PERFORMANCE GOALS AND MEASURES.—The

2 Governor shall, acting through the collaborative process,

3 work to ensure that the performance goals are consistent

4 with challenging State academic standards, industry-rec5 ognized skill standards once established by the National

6 Skills Standard Board and the State goals established

7 under this title.

8 Subtitle C—Subgrants for In9 School and At-Risk Youth Pro10 grams

11 SEC. 231. PARTNERSHIP AGREEMENTS.

12 (a) PARTNERSHIP.—A local workforce development

13 board and an eligible institution that desires to receive a

14 subgrant from a State under this subtitle in any fiscal

15 year shall form a partnership.

16 (b) PLAN.—The partnership referred to in subsection

17 (a) shall, in collaboration, develop and submit to the Gov18 ernor through the State collaborative process a com19 prehensive workforce development plan for in-school and

20 at-risk youth. Such plan shall describe how the youth

21 workforce development system meets the requirements of

22 sections 241 and 245.

23 SEC. 232. DISTRIBUTION OF FUNDS.

24 (a) IN-SCHOOL PROGRAMS.—A State shall distribute

25 funds made available in a fiscal year as provided in section
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1 212(a)(1) to carry out in-school youth programs described

2 in section 241 to eligible institutions.

3 (b) AT-RISK YOUTH PROGRAMS.—A State shall dis4 tribute funds made available in any fiscal year as provided

5 in section 212(a)(2) to local workforce development boards

6 to carry out at-risk youth programs described in section

7 245.

8 CHAPTER 1—IN-SCHOOL YOUTH

9 PROGRAMS

10 SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH PRO11 GRAMS.

12 (a) GENERAL AUTHORITY.—Each eligible institution

13 that receives a subgrant under this chapter shall use funds

14 provided under such grant to improve workforce develop15 ment and career-related education programs.

16 (b) REQUIREMENTS FOR USES OF FUNDS.—Funds

17 provided by a State pursuant to section 212(a)(1) shall

18 be used to provide in-school workforce development and

19 career-related education programs that—

20 (1) are of such size, scope, and quality as to be

21 effective;

22 (2) integrate academic, vocational, and work23 based learning, stressing applied and contextual

24 learning, through a coherent sequence of courses so
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1 that youth achieve both academic and occupational

2 competencies;

3 (3) involve employers in the design and imple4 mentation of programs, including the development of

5 curriculum;

6 (4) establish effective linkages between at-risk

7 youth programs, secondary and postsecondary edu8 cation;

9 (5) provide work-based learning experiences;

10 and

11 (6) provide career exploration, career awareness

12 and career guidance opportunities, beginning in the

13 earliest grades possible, but not later than grade 6.

14 (c) ADDITIONAL USES OF FUNDS.—In carrying out

15 the provisions of subsection (b), funds may be used by

16 schools for in-school youth activities such as—

17 (1) purchasing or upgrading of equipment, in18 cluding instructional aides and material;

19 (2) inservice training of vocational instructors,

20 academic instructors, employers, and workplace

21 mentors, to integrate academic and vocational edu22 cation, and provide high-quality work-based learning

23 experiences;

24 (3) tech prep education programs;
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1 (4) supplementary services designed to meet the

2 needs of special populations;

3 (5) adaptation of equipment;

4 (6) apprenticeship programs;

5 (7) programs which train students for all as6 pects of industry in which job openings are projected

7 or available;

8 (8) comprehensive mentoring programs in insti9 tutions of higher education offering comprehensive

10 programs in teacher preparation which seek to fully

11 use the skills and work experience of individuals cur12 rently or formerly employed in business and industry

13 who are interested in becoming classroom instructors

14 and to meet the need of vocational educators who

15 wish to upgrade their teaching competencies; and

16 (9) local education/business partnerships for de17 veloping and implementing workforce preparation

18 systems.

19 CHAPTER 2—AT-RISK YOUTH PROGRAMS

20 SEC. 245. USES OF FUNDS FOR AT-RISK YOUTH.

21 (a) GENERAL AUTHORITY.—Each local workforce de22 velopment board that receives a subgrant under this chap23 ter shall use funds provided under such grant to improve

24 workforce development and career-related education pro25 grams.
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1 (b) REQUIREMENTS FOR USES OF FUNDS.—Funds

2 provided by a State pursuant to section 212(a)(2) shall

3 be used to provide workforce development and career-re4 lated education programs for at-risk youth that—

5 (1) are of such size, scope, and quality as to be

6 effective;

7 (2) integrate academic, vocational, and work8 based learning, stressing applied and contextual

9 learning, through a coherent sequence of courses so

10 that students and at-risk youth achieve both aca11 demic and occupational competencies;

12 (3) involve employers in the design and imple13 mentation of programs, including the development of

14 curriculum;

15 (4) establish effective linkages between at-risk

16 youth programs, and secondary and postsecondary

17 education;

18 (5) provide work-based learning experiences;

19 (6) provide adult mentoring as a core compo20 nent of the program;

21 (7) provide an objective assessment of the aca22 demic and skill levels, and service needs of each par23 ticipant; and

24 (8) provide career exploration and counseling.
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1 (c) ADDITIONAL USES OF FUNDS.—In carrying out

2 the provisions of subsection (b), providers of at-risk youth

3 programs as selected by the local workforce development

4 board may provide activities such as—

5 (1) tutoring study skills training and instruc6 tion leading to high school;

7 (2) alternative high school services;

8 (3) training or education that is combined with

9 community and service learning opportunities;

10 (4) paid work experience, including limited in11 ternships, entry-employment experience programs,

12 and summer employment opportunities that are inte13 grated with the year-round school-based or alter14 native school-based program;

15 (5) drop-out prevention strategies and strate16 gies to encourage at-risk youth to reenter high

17 school or alternative high school programs;

18 (6) preemployment and work maturity skills

19 training;

20 (7) peer-centered activities encouraging respon21 sibility and other positive social behaviors during

22 non-school hours; and

23 (8) training-related supportive services.
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1 SEC. 246. AT-RISK YOUTH PROVIDERS.

2 (a) ROLE OF WORKFORCE DEVELOPMENT BOARD.—

3 A workforce development board that receives funds under

4 this chapter shall not operate programs, but shall contract

5 with eligible providers of demonstrated effectiveness, or

6 with eligible providers utilizing service methodologies with

7 demonstrated effectiveness in serving the workforce prepa8 ration needs of at-risk youth, for the purpose of providing

9 services under this chapter.

10 (b) ELIGIBLE PROVIDERS.—For purposes of this

11 chapter, eligible providers may include—

12 (1) an ‘‘eligible institution’’ as defined under

13 section 212(d);

14 (2) a unit of local government;

15 (3) a private, nonprofit organization;

16 (4) a private, for profit entity;

17 (5) a designated 1-stop career center; or

18 (6) other organizations or entities of dem19 onstrated effectiveness and approved by the local

20 Board.

21 Subtitle D— National Programs

22 SEC. 251. RESEARCH ACTIVITIES.

23 (a) GENERAL AUTHORITY.—(1) In order to carry out

24 the purpose of this title, the Secretary may, directly or

25 through grants, contracts, or cooperative agreements,

26 carry out research, development, dissemination, dem-
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1 onstration programs, evaluation, capacity-building, and

2 technical assistance activities with regard to the services

3 and activities carried out under this title.

4 (2) Activities carried out under this section may in5 clude support for occupational and career information sys6 tems.

7 (b) DISSEMINATION.—The Secretary shall establish

8 a system for disseminating information resulting from re9 search and development activities carried out under this

10 title.

11 SEC. 252. ANNUAL ASSESSMENT AND DATA COLLECTION OF

12 VOCATIONAL EDUCATION PROGRAMS.

13 (a) IN GENERAL.—(1) The Secretary through the Of14 fice of Educational Research and Improvement shall con15 duct an annual assessment of services and activities as16 sisted under this title, through studies and analyses con17 ducted independently through competitive awards.

18 (b) CONTENTS.—The assessment required under sub19 section (a) shall examine the extent to which services and

20 activities assisted under this title have achieved their in21 tended purposes and results, including the extent to

22 which—

23 (1) State and local services and activities have

24 developed, implemented, or improved systems estab25 lished under this title;
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1 (2) services and activities assisted under this

2 title succeed in preparing students, including stu3 dents who are members of special populations, for

4 postsecondary education, further learning, or entry

5 into high-skill, high-wage careers;

6 (3) students who participate in services and ac7 tivities supported under this title succeed in meeting

8 challenging State academic and industry-based skill

9 standards; and

10 (4) the system improvement, participation, local

11 and State assessment, and accountability provisions

12 of this title, including the performance goals and in13 dicators established under section 223, are effective.

14 SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.

15 (a) GENERAL AUTHORITY.—(1) The Secretary may,

16 through a grant or contract, establish one or more na17 tional centers in the areas of applied research, develop18 ment, and dissemination. The Secretary shall consult with

19 States prior to establishing one or more such centers.

20 (2) Entities eligible to receive funds under this sec21 tion are institutions of higher education, other public or

22 private nonprofit organizations or agencies, and consortia

23 of such institutions, organizations, or agencies.

24 (3) The national center in existence on the date of

25 the enactment of the this Act shall continue to receive as-
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1 sistance under this section in accordance with the terms

2 of its current award.

3 (b) ACTIVITIES.—(1) The applied research, develop4 ment, and dissemination activities carried out by the na5 tional center or centers shall include—

6 (A) activities that assist recipients of funds

7 under this title to meet the requirements of section

8 224; and

9 (B) such other activities as the Secretary deter10 mines to be appropriate to achieve the purpose of

11 this Act.

12 (2) The center or centers conducting the activities de13 scribed in paragraph (1) shall annually prepare a sum14 mary of key research findings of such center or centers

15 and shall submit copies of the summary to the Secretaries

16 of Education and Labor. The Secretary shall submit that

17 summary to the Committee on Labor and Human Re18 sources of the Senate, and the Committee on Economic

19 and Educational Opportunities of the House of Represent20 atives.
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1 TITLE III—ADULT EMPLOYMENT

2 AND TRAINING CONSOLIDA3 TION GRANT

4 Subtitle A—Adult Employment and

5 Training Consolidation Grant

6 SEC. 301. PURPOSE.

7 The purpose of this title is to establish an efficient,

8 high-quality, and equitable system of employment, job

9 training, and related assistance designed to facilitate the

10 transition of adults into productive private sector employ11 ment.

12 SEC. 302. AUTHORIZATION.

13 (a) IN GENERAL.—In the case of each State that in

14 accordance with the requirements of section 102 submits

15 to the Secretary of Labor (hereinafter in this title referred

16 to as the ‘‘Secretary’’) a State workforce development and

17 literacy plan under section 104, the Secretary shall pro18 vide a grant to the State for the purpose of providing em19 ployment, job training, and related assistance for adults

20 in the State.

21 (b) AMOUNT.—The grant shall consist of the allot22 ment determined for the State under section 303.
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1 SEC. 303. ALLOTMENT AMONG STATES.

2 (a) IN GENERAL.—Of the amount appropriated pur3 suant to section 4(b) to carry out this title for a fiscal

4 year, the Secretary shall—

5 (1) allot 85 percent of such amounts in accord6 ance with subsection (b); and

7 (2) reserve 15 percent for use under subtitle B.

8 (b) ALLOTMENT AMONG STATES.—

9 (1) RESERVATION FOR THE TERRITORIES.—Of

10 the amount allotted under subsection (a)(1), the

11 Secretary shall allot not more than one quarter of

12 one percent among the Commonwealth of the North13 ern Mariana Islands, American Samoa, Guam, and

14 the Virgin Islands.

15 (2) STATES.—After determining the amount to

16 be allotted under paragraph (1), the Secretary shall

17 allot the remaining amount to the remaining States

18 so that each State receives an amount that bears the

19 same proportion to such remaining amount as—

20 (A) the amount allotted to each such State

21 from allotments under sections 202 and 302 of

22 the Job Training Partnership Act (29 U.S.C.

23 1602 and 1652) (as in effect before the date of

24 the enactment of this Act) for fiscal year 1995;

25 bears to
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1 (B) the aggregate of the amounts allotted

2 to all such States from allotments under such

3 sections for such fiscal year.

4 SEC. 304. ALLOCATION WITHIN STATES.

5 (a) RESERVATIONS FOR STATE ACTIVITIES.—

6 (1) IN GENERAL.—The Governor of the State

7 shall reserve not more than 20 percent of the

8 amount allotted to the State under section 303(b)

9 for a fiscal year for statewide activities for employ10 ment, job training, and related assistance for adults.

11 (2) MANDATORY ACTIVITIES.—Such activities

12 shall include—

13 (A) rapid response activities; and

14 (B) additional assistance to areas that ex15 perience disasters, mass layoffs or plant clos16 ings, or other events which precipitate substan17 tial increases in the number of unemployed

18 workers, to be expended in accordance with the

19 local plan of the relevant workforce development

20 area.

21 (3) DISCRETIONARY ACTIVITIES.—

22 (A) IN GENERAL.—Such activities may in23 clude—
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1 (i) subject to subparagraph (B), ad2 ministration by the State of programs

3 under this subtitle;

4 (ii) capacity building and technical as5 sistance to local workforce development

6 areas, one-stop career centers, and service

7 providers, including the development and

8 training of staff and the development of

9 exemplary program activities;

10 (iii) incentives for program coordina11 tion, performance awards, and research

12 and demonstrations;

13 (iv) implementation of innovative in14 cumbent worker training programs, which

15 may include the establishment and imple16 mentation of an employer loan program to

17 assist in skills upgrading for non-manage18 rial employees (in accordance with the re19 quirements of section 315); and

20 (v) additional assistance for the devel21 opment and implementation of the one22 stop delivery system of the State estab23 lished in accordance with title I of this

24 Act.
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1 (B) LIMITATION.—Not more than 5 per2 cent of the amount reserved by the Governor

3 under paragraph (1) may be used for adminis4 tration by the State of programs under this

5 subtitle.

6 (b) WITHIN STATE ALLOCATION.—The Governor of

7 the State shall allocate the remainder of the amount allot8 ted to the State under section 303(b) to workforce devel9 opment areas designated under title I of this Act for the

10 purpose of providing employment, job training, and relat11 ed assistance for adults in such areas in accordance with

12 section 306.

13 SEC. 305. ADDITIONAL STATE PLAN REQUIREMENTS.

14 The State shall, as part of the State workforce devel15 opment and literacy plan under title I of this Act, submit

16 to the Secretary the following additional information:

17 (1) A description of how the State will serve the

18 employment and training needs of dislocated work19 ers, economically disadvantaged individuals, older

20 workers, individuals with disabilities, and individuals

21 with multiple barriers to employment, including indi22 viduals who are basic skills deficient.

23 (2) A description of how the State will provide

24 rapid response assistance to workers experiencing

25 dislocation as a result of mass layoffs and plant clos-
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1 ings, either through the direct provision of services

2 or through the transfer of funds to local workforce

3 development areas for the provision of such services.

4 SEC. 306. USE OF AMOUNTS.

5 (a) CORE SERVICES.—Amounts allocated under sec6 tion 304(b) shall be used to provide core services to adults

7 through one-stop career centers in accordance with title

8 I of this Act.

9 (b) INTENSIVE SERVICES.—

10 (1) IN GENERAL.—Amounts allocated under

11 section 304(b) may be used to provide intensive

12 services to adults—

13 (A) who are unable to obtain employment

14 through core services under subsection (a); and

15 (B) who have been determined to be in

16 need of more intensive services in order to gain

17 employment.

18 (2) DELIVERY OF SERVICES.—Such intensive

19 services shall be provided—

20 (A) directly through one-stop career cen21 ters in accordance with title I of this Act; or

22 (B) through contracts through such cen23 ters with service providers approved by the local

24 workforce development board.
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1 (3) TYPES OF SERVICES.—Such intensive serv2 ices may include the following:

3 (A) Comprehensive and specialized assess4 ments of the skill levels and service needs of

5 adults, which may include—

6 (i) diagnostic testing and other assess7 ment tools; and

8 (ii) in-depth interviewing and evalua9 tion to identify employment barriers and

10 appropriate employment goals.

11 (B) Development of an individual employ12 ment plan, to identify the employment goals,

13 appropriate achievement objectives, and the ap14 propriate combination of services for the adult

15 to achieve the employment goal.

16 (C) Group counseling.

17 (D) Individual counseling and career plan18 ning.

19 (E) Case management for adults receiving

20 education and training services under sub21 section (c) or supportive services under sub22 section (d).

23 (F) Followup counseling for adults placed

24 in training or employment, for up to 1 year.

25 (c) EDUCATION AND TRAINING SERVICES.—
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1 (1) IN GENERAL.—Amounts allocated under

2 section 304(b) may be used to provide education and

3 training services to adults—

4 (A) who are unable to obtain employment

5 through core services under subsection (a); and

6 (B) who are in need of education and

7 training services in order to gain employment

8 as a result of determinations made through—

9 (i) preliminary assessments under sec10 tion 108(f)(1)(B) of this Act; or

11 (ii) comprehensive and specialized as12 sessments under subsection (b)(3)(A).

13 (2) DELIVERY OF SERVICES.—Such education

14 and training services shall be provided through edu15 cation and training providers certified in accordance

16 with title I of this Act.

17 (3) TYPES OF SERVICES.—Such education and

18 training services may include the following:

19 (A) Basic skills training, including reme20 dial education, literacy training, and English

21 literacy program instruction.

22 (B) Occupational skills training.

23 (C) On-the-job training.

24 (D) Programs that combine workplace

25 training with related instruction.
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1 (E) Training programs operated by the

2 private sector.

3 (F) Skill upgrading and retraining.

4 (G) Entrepreneurial training.

5 (H) Employability training to enhance

6 basic workplace competencies.

7 (I) Customized training conducted with a

8 commitment by an employer or group of em9 ployers to employ an individual upon successful

10 completion of the training.

11 (4) ADDITIONAL REQUIREMENTS.—

12 (A) USE OF VOUCHERS.—(i) To the extent

13 practicable, education and training services

14 under this subsection shall be provided through

15 the use of vouchers in accordance with section

16 109.

17 (ii) A portion of the total payment for the

18 education and training provided by a service

19 provider to a participant pursuant to a voucher

20 issued under this subparagraph may be with21 held from such provider until—

22 (I) the participant has successfully

23 completed the training; and
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1 (II) the participant has been employed

2 and retained employment for a period not

3 less than 90 days.

4 (B) LINKAGE TO OCCUPATIONS IN DE5 MAND.—Education and training services under

6 this subsection shall be directly linked to occu7 pations for which there is a demand in the local

8 workforce development area, or in another area

9 to which an adult receiving such services is will10 ing to relocate.

11 (d) ADDITIONAL SERVICES.—

12 (1) SUPPORTIVE SERVICES.—Supportive serv13 ices may be provided for individuals—

14 (A) who are receiving assistance under any

15 of subsections (a) through (c); and

16 (B) who are unable to receive such services

17 through other programs providing such services.

18 (2) NEEDS-RELATED PAYMENTS.—

19 (A) IN GENERAL.—Amounts allocated

20 under section 304(b) may be used to provide

21 needs-related payments to adults who are un22 employed and do not qualify for (or have ceased

23 to qualify for) unemployment compensation for

24 the purpose of enabling such adults to partici-
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1 pate in education and training programs under

2 subsection (c).

3 (B) ADDITIONAL ELIGIBILITY REQUIRE4 MENTS.—In addition to the requirements con5 tained in subparagraph (A), a dislocated worker

6 who has exhausted unemployment insurance

7 benefits shall be eligible to receive needs-related

8 payments under this paragraph only if such

9 worker was enrolled in education or training by

10 the end of the 8th week of the worker’s initial

11 unemployment compensation benefit period, or,

12 if later, by the end of the 8th week after the

13 worker is informed that a short-term layoff will

14 in fact exceed 6 months.

15 (e) PROHIBITION ON PRIVATE RIGHT OF ACTION.—

16 Nothing in this section shall be construed to establish a

17 right for a participant to bring an action to obtain services

18 under a program established under this section.

19 SEC. 307. CORE STANDARDS, PERFORMANCE GOALS, AND

20 MEASURES.

21 (a) GENERAL AUTHORITY.—

22 (1) STANDARDS AND MEASURES.—Each State

23 receiving a grant under this title shall have devel24 oped or shall develop and implement a statewide sys25 tem of core standards and measures of performance
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1 for programs established under this title, based upon

2 performance standards described in paragraph (2),

3 and consistent with the State’s goals and objectives,

4 and benchmarking process described in the State

5 plan required under section 104.

6 (2) STATEWIDE SYSTEM.—Each statewide sys7 tem shall—

8 (A) establish or have established perform9 ance goals to define the level of performance to

10 be achieved by adults served under this title

11 and to evaluate the quality and effectiveness of

12 services and activities under this title;

13 (B) express such goals in an objective,

14 quantifiable, and measurable form;

15 (C) establish performance indicators or

16 benchmarks that the State and local recipients

17 of funds will use in measuring or assessing

18 progress toward achieving such goals; and

19 (D) provide biennial reports to the public

20 and to the Secretary on the States progress in

21 achieving its goals.

22 (b) REQUIREMENTS.—Each system developed under

23 subsection (a) shall include measures of—

24 (1) placement, retention, and earnings of par25 ticipants in unsubsidized employment, including re-
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1 tention and earnings at 6 months, and at one year

2 after program termination, respectively;

3 (2) the provision of services to dislocated work4 ers, economically disadvantaged individuals, older

5 workers, individuals with disabilities and individuals

6 with multiple barriers to employment, including indi7 viduals who are basic skills deficient; and

8 (3) acquisition of skills certificates pursuant to

9 a skill standards and skill certification system en10 dorsed by the National Skill Standards Board, once

11 such system is established.

12 Subtitle B—Federal Programs

13 SEC. 311. NATIONAL DISCRETIONARY GRANTS.

14 (a) GRANTS FOR DISLOCATED WORKERS.—

15 (1) IN GENERAL.—From amounts reserved

16 under section 303(a)(2) for any fiscal year, the Sec17 retary is authorized to award national discretionary

18 grants to address major economic dislocations that

19 result from plant closures, base closures, or mass

20 layoffs.

21 (2) APPLICATION.—To receive a grant under

22 this section, an eligible entity shall submit an appli23 cation to the Secretary at such time, in such man24 ner, and accompanied by such information as the

25 Secretary determines is appropriate.
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1 (3) ELIGIBLE ENTITIES.—Grants under this

2 section may be awarded to—

3 (A) the State;

4 (B) a local workforce development board

5 administering assistance under this Act;

6 (C) employers and employer associations;

7 (D) worker-management transition assist8 ance committees and other employer-employee

9 entities;

10 (E) representatives of employees;

11 (F) community development corporations

12 and community-based organizations; and

13 (G) industry consortia.

14 (b) INCENTIVE GRANTS.—From amounts reserved

15 under section 303(a)(2) for any fiscal year, the Secretary

16 may provide performance awards to States that have

17 achieved exceptional performance through the implemen18 tation of statewide workforce development systems.

19 SEC. 312. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

20 (a) IN GENERAL.—From amounts reserved under

21 section 303(a)(2) for any fiscal year, the Secretary may

22 provide assistance to the Governor of any State within

23 which is located an area that has suffered an emergency

24 or a major disaster as defined in paragraphs (1) and (2),

25 respectively, of section 102 of the Robert T. Stafford Dis-
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1 aster Relief and Emergency Assistance Act (referred to

2 in this section as the ‘‘disaster area’’).

3 (b) USE OF FUNDS.—

4 (1) PROJECTS RESTRICTED TO DISASTER

5 AREAS.—Funds made available under this section—

6 (A) shall be used exclusively to provide em7 ployment on projects to provide food, clothing,

8 shelter, and other humanitarian assistance for

9 disaster victims and on projects regarding dem10 olition, cleanup, repair, renovation, and recon11 struction of damaged and destroyed structures,

12 facilities, and lands located within the disaster

13 area; and

14 (B) may be expended through public and

15 private agencies and organizations engaged in

16 such projects.

17 (2) ELIGIBILITY REQUIREMENTS.—An individ18 ual shall be eligible to be offered disaster employ19 ment under this section if such individual is a dis20 located worker or is temporarily or permanently laid

21 off as a consequence of the disaster.

22 (3) LIMITATIONS ON DISASTER RELIEF EM23 PLOYMENT.—No individual shall be employed under

24 this part for more than 6 months for work related

25 to recovery from a single natural disaster.
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1 SEC. 313. RESEARCH, DEMONSTRATION, EVALUATION, AND

2 CAPACITY BUILDING.

3 (a) IN GENERAL.—From amounts reserved under

4 section 303(a)(2) for any fiscal year, the Secretary shall

5 establish and carry out research, demonstration, and ca6 pacity building activities in accordance with this section.

7 (b) ACTIVITIES.—The Secretary shall carry out the

8 following activities under this section:

9 (1) RESEARCH.—The Secretary shall conduct

10 continuing research, which may include studies and

11 other methods and techniques, that will aid in the

12 solution of the employment and training problems of

13 the United States.

14 (2) DEMONSTRATIONS.—The Secretary shall

15 conduct pilot and demonstration projects for the

16 purpose of developing and improving methods and

17 techniques for addressing employment and training

18 needs. The Secretary may award grants and enter

19 into contracts with entities to carry out such

20 projects.

21 (3) EVALUATION.—

22 (A) ACTIVITIES.—

23 (i) JOB TRAINING ACTIVITIES.—The

24 Secretary shall provide for the continuing

25 evaluation of activities conducted under

26 this Act, including the cost-effectiveness of
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1 such activities in achieving the purposes of

2 this Act.

3 (ii) OTHER PROGRAMS.—The Sec4 retary may conduct evaluations of other

5 federally funded employment-related activi6 ties including programs administered

7 under—

8 (I) the Wagner-Peyser Act (29

9 U.S.C. 49 et seq.);

10 (II) the National Apprenticeship

11 Act (29 U.S.C. 50 et seq.);

12 (III) the Older Americans Act of

13 1965 (42 U.S.C. 3001 et seq.); and

14 (IV) the Federal unemployment

15 insurance program under titles III,

16 IX, and XII of the Social Security Act

17 (42 U.S.C. 501 et seq., 1101 et seq.,

18 and 1321 et seq.).

19 (B) EFFECTIVENESS.—The Secretary shall

20 evaluate the effectiveness of programs author21 ized under this Act with respect to—

22 (i) the statutory goals;

23 (ii) the performance standards estab24 lished by the Secretary; and
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1 (iii) the extent to which such pro2 grams enhance the employment and earn3 ings of participants, reduce income support

4 costs, improve the employment com5 petencies of participants in comparison to

6 comparable persons who did not partici7 pate in such programs, and to the extent

8 feasible, increase the level of total employ9 ment over the level that would have existed

10 in the absence of such programs.

11 (4) NATIONAL PARTNERSHIP AND SPECIAL

12 TRAINING.—The Secretary may award special grants

13 to eligible entities to carry out activities that are

14 most appropriately administered at the national

15 level. Such activities may include—

16 (A) partnerships with national organiza17 tions with special expertise in developing, orga18 nizing, and administering employment and

19 training services at the national, State, and

20 local levels, such as industry and labor associa21 tions, public interests groups, community-based

22 organizations representative of groups that en23 counter special difficulties in the labor market,

24 in education and training; and

25 (B) activities that—
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1 (i) address industrywide skill short2 ages;

3 (ii) meet training needs that are best

4 addressed on a multistate basis;

5 (iii) further the goals of increasing the

6 competitiveness of the United States labor

7 force; and

8 (iv) require technical expertise avail9 able at the national level to serve the needs

10 of particular client groups that encounter

11 significant barriers to employment and who

12 the Secretary determines requires special

13 assistance.

14 (5) CAPACITY BUILDING AND TECHNICAL AS15 SISTANCE.—

16 (A) IN GENERAL.—The Secretary shall

17 provide, through grants, contracts, or other ar18 rangements, staff training and technical assist19 ance to States, local workforce development

20 boards, career centers, communities, business

21 and labor organizations, service providers, in22 dustry consortia, and other entities, to enhance

23 their capacity to develop and deliver effective

24 employment and training services.
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1 (B) ACTIVITIES.—The staff training and

2 technical assistance authorized under subpara3 graph (A) may include—

4 (i) development of management infor5 mation systems;

6 (ii) development and maintenance of a

7 national capacity building, information and

8 dissemination network; and

9 (iii) grants for the replication of suc10 cessful employment and training models

11 and activities.

12 SEC. 314. WORKFORCE SKILLS AND DEVELOPMENT LOANS.

13 (a) AUTHORIZATION.—

14 (1) IN GENERAL.—From amounts reserved

15 under section 303(a)(2) for any fiscal year, the Sec16 retary of Labor may use a portion of such amounts

17 to provide grants to States to provide loans to eligi18 ble entities described in paragraph (2) to assist such

19 entities in providing skills upgrading for non-mana20 gerial employees.

21 (2) ELIGIBLE ENTITIES.—An eligible entity de22 scribed in this paragraph is—

23 (A) an employer;

24 (B) a representative of employees;

25 (C) a business association;
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1 (D) a trade organization; or

2 (E) a consortium consisting of—

3 (i) more than 1 of the entities de4 scribed in subparagraphs (A) through (D);

5 or

6 (ii) an institution of higher education

7 (as such term is defined in section 481 of

8 the Higher Education Act of 1965 (20

9 U.S.C. 1088) which continues to meet the

10 eligibility and certification requirements

11 under section 498 of such Act) and 1 or

12 more of the entities described in subpara13 graphs (A) through (D).

14 (b) APPLICATION.—The Secretary may provide a

15 grant to a State under subsection (a) only if such State

16 submits to the Secretary an application which contains

17 such information as the Secretary may reasonably require.

18 (c) USE OF AMOUNTS.—A State shall use amounts

19 received from a grant under subsection (a) to establish

20 a loan guarantee program to assist eligible entities de21 scribed in paragraph (2) of such subsection to provide

22 skills upgrading for non-managerial employees. In carry23 ing out such program, the State shall meet the following

24 requirements:
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1 (1) ESTABLISHMENT OF RESERVE FUND FOR

2 LOAN GUARANTEES.—The State shall establish a re3 serve fund from amounts received from such grant

4 for the purpose of making commitments to guaran5 tee the payment of principal and interest on loans

6 made by financial institutions to such eligible enti7 ties to provide skills upgrading for non-managerial

8 employees.

9 (2) CRITERIA FOR LOAN GUARANTEES.—The

10 State, in conjunction with appropriate financial in11 stitutions, shall establish and publish criteria for

12 providing loan guarantees to eligible entities under

13 the program, including criteria that provides for the

14 following:

15 (A) A loan guarantee may be issued under

16 the program only if, at the time such guarantee

17 is issued the eligible entity agrees to pay as an

18 insurance premium an amount equal to 1 per19 cent of the principal received by such entity

20 under the loan to the State’s reserve fund.

21 (B)(i) Subject to clause (ii), the eligible en22 tity will use amounts received from the loan to

23 provide skills upgrading for mid- and lower-level

24 employees, which may include—
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1 (I) training in total quality manage2 ment, statistical process control, produc3 tion techniques, office automation, mate4 rials resource planning; and

5 (II) training to improve basic skills,

6 including reading, writing, and arithmetic.

7 (ii) In providing such skills upgrading, the

8 eligible entity shall give priority to

9 nonmanagerial employees who—

10 (I) directly produce or deliver goods

11 or services; or

12 (II) are in danger of being terminated

13 or laid off as a result of modernization in

14 the workplace, corporate downsizing, for15 eign or domestic competition, or Federal

16 policies adversely affecting 1 or more in17 dustries.

18 (C) Amounts from a loan shall not be used

19 to pay the wages or other benefits of any em20 ployee receiving assistance under the program.

21 (3) PAYMENT BY STATE TO FINANCIAL INSTI22 TUTIONS IN CASES OF DEFAULT.—

23 (A) IN GENERAL.—In accordance with cri24 teria developed by the Secretary, the State shall

25 make payments from the State’s reserve fund to
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1 financial institutions that have provided loans

2 to eligible entities that have defaulted on such

3 loans for the purpose of reimbursing such insti4 tutions for the amount of principal and interest

5 remaining unpaid to the institutions by reason

6 of such default.

7 (B) NO FULL FAITH AND CREDIT OF THE

8 UNITED STATES.—Loans provided by financial

9 institutions to eligible entities under loan guar10 antee programs under this section shall not be

11 obligations of, or guaranteed in any respect by,

12 the United States.

13 (4) LIMITATIONS ON LOAN GUARANTEES.—The

14 authority of a State to extend loan guarantees under

15 this section shall not at any time exceed an amount

16 equal to 1,000 percent of the aggregate principal

17 amount in the State’s reserve fund.

18 (5) INTEREST FROM AMOUNTS IN RESERVE

19 FUND.—Any interest earned from amounts in the

20 State’s reserve fund shall be credited to such fund.

21 (d) FEDERAL AND STATE SHARE.—

22 (1) FEDERAL SHARE.—The Federal share

23 under this section may not exceed 50 percent of the

24 total cost of the program established under sub25 section (c) for any fiscal year.
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1 (2) STATE SHARE.—The State share shall be

2 provided from non-Federal sources and may be in

3 cash or in-kind, fairly evaluated.

4 SEC. 315. EMPLOYMENT, TRAINING, AND EDUCATION AS5 SISTANCE FOR NATIVE AMERICANS.

6 (a) AUTHORIZATION.—From amounts reserved under

7 section 303(a)(2) for any fiscal year, the Secretary of

8 Labor shall provide grants to, or enter into contracts or

9 cooperative agreements with, Indian tribes and tribal or10 ganizations, tribally-controlled colleges, tribally-controlled

11 postsecondary vocational institutions, Indian-controlled

12 organizations serving off-reservation areas, Alaska Native

13 village and regional entities serving areas as described in

14 the Alaska Native Claims Settlement Act and Hawaiian

15 Native-controlled organizations to provide employment,

16 training, vocational rehabilitation, library services, and

17 education assistance for Native Americans.

18 (b) TRANSFER OF AUTHORITY FOR VOCATIONAL

19 EDUCATION ACTIVITIES.—In carrying out subsection (a),

20 the Secretary of Labor may enter into an agreement with

21 the Secretary of Education to carry out any portion of

22 assistance under such subsection devoted to vocational

23 educational activities, including support for the United

24 Tribes Technical College and Crowpoint Institute of Tech25 nology.
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1 (c) CONSOLIDATION OF FUNDS.—Entities receiving

2 assistance under subsection (a) may consolidate such as3 sistance with assistance received from related programs in

4 accordance with the provisions of the Indian Employment,

5 Training and Related Services Demonstration Act (Public

6 Law 102–477).

7 (d) REGULATIONS.—The Secretary shall consult with

8 Indian, Alaska Native and Hawaiian Native groups in es9 tablishing regulations to carry out this section, including

10 performance standards for entities receiving assistance

11 under subsection (a), taking into account the economic cir12 cumstances of such groups.

13 SEC. 316. EMPLOYMENT, TRAINING, AND EDUCATION AS14 SISTANCE FOR MIGRANT AND SEASONAL

15 FARMWORKERS.

16 (a) AUTHORIZATION.—

17 (1) IN GENERAL.—From amounts reserved

18 under section 303(a)(2) for any fiscal year, the Sec19 retary of Labor shall provide grants to, or enter into

20 contracts or cooperative agreements with, entities

21 described in paragraph (2) to provide employment,

22 training, and education assistance for migrant and

23 seasonal farmworkers.

24 (2) ENTITIES DESCRIBED.—An entity described

25 in this paragraph is an entity the Secretary deter-
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1 mines to have the capacity to administer effectively

2 a diversified development program for migrant and

3 seasonal farmworkers.

4 (b) USE OF AMOUNTS.—An entity shall use amounts

5 received under subsection (a) to provide employment,

6 training, educational development, high school equiva7 lency, postsecondary education assistance, vocational reha8 bilitation, literacy, English as a second language, work9 based education and development, worker safety training,

10 employability enhancements, emergency or other disaster

11 relief, technical assistance, outreach, intake, assessment,

12 follow-up, stipend support, supportive services, other

13 needs-based assistance, and self-employment and related

14 business enterprise development education.

15 (c) TRANSFER OF AUTHORITY FOR EDUCATION AC16 TIVITIES.—In carrying out subsection (b), the Secretary

17 of Labor may enter into an agreement with the Secretary

18 of Education to carry out any portion of assistance under

19 such subsection devoted to education activities.

20 TITLE IV—ADULT EDUCATION,

21 FAMILY LITERACY, AND LI22 BRARY TECHNOLOGY CON23 SOLIDATION GRANT

24 SEC. 401. FINDINGS AND PURPOSE.

25 (a) FINDINGS.—The Congress finds as follows:
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1 (1) According to the 1990 census, 21 percent of

2 our Nation’s adults (more than 38 million persons)

3 lack a high school credential or are limited English

4 proficient.

5 (2) The National Adult Literacy Survey, con6 ducted under the Adult Education Act, found that

7 20 percent of all adults in the United States, or

8 about 40 million people, have minimal levels of lit9 eracy skills and that the lack of such skills is related

10 to unemployment, low wages, and fewer weeks

11 worked.

12 (3) The success of State efforts to reform and

13 improve public education are dependent on the abil14 ity of the United States to break intergenerational

15 cycles of illiteracy and inadequate education by en16 suring that parents possess a strong educational

17 foundation and, as the first and most continuous

18 teachers of their children, model for, and instill in,

19 their children a commitment to family literacy and

20 life-long learning.

21 (4) Generations of immigrants have contributed

22 to our communities and our economy, but for them

23 to continue to do so given recent technologies and

24 the competitive global economy, they must master

25 English as rapidly as possible.
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1 (5) Studies have found that incarcerated adults

2 are twice as likely as nonincarcerated adults to lack

3 a good education and that such lack is a significant

4 statistical indicator of recidivism.

5 (6) Certain short-term and long-term goals of

6 the Nation may not be met unless the United States

7 improves its current system of adult education and

8 lifelong learning through Federal leadership.

9 (b) PURPOSE.—The purposes of this title are as

10 follows:

11 (1) To assist States to provide—

12 (A) to adults, the basic educational skills

13 necessary for employment and self-sufficiency;

14 (B) to adults who are parents, the edu15 cational skills necessary to be full partners in

16 the educational development of their children;

17 (C) to adults, the basic English language

18 skills necessary to participate in the civic, so19 cial, and economic life of the United States; and

20 (D) to adults, the opportunity to attain a

21 high school degree or its equivalent in order to

22 permit them to pursue further education and

23 training or improve their family and work situa24 tions.
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1 (2) To provide electronic linkages among librar2 ies and one-stop career center systems.

3 SEC. 402. DEFINITIONS.

4 As used in this title:

5 (1) CORRECTIONAL EDUCATION AGENCY.—The

6 term ‘‘correctional education agency’’ means an en7 tity that provides programs for criminal offenders in

8 corrections institutions and for other institutional9 ized individuals which include academic programs

10 for basic education, special education, bilingual or

11 English language instruction, vocational training, li12 brary development, corrections education programs,

13 guidance and counseling, and other supportive serv14 ices for criminal offenders which may emphasize co15 ordination of educational services with educational

16 institutions, community-based organizations of de17 monstrative effectiveness, and the private sector, de18 signed to provide education and training.

19 (2) EDUCATIONALLY DISADVANTAGED

20 ADULT.—The term ‘‘educationally disadvantaged

21 adult’’ means an adult who—

22 (A) demonstrates basic skills equivalent to

23 or below that of students at the fifth grade

24 level; or
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1 (B) has been placed in the lowest or begin2 ning level of an adult education program when

3 that program does not use grade level equiva4 lencies as a measure of students’ basic skills.

5 (3) FAMILY LITERACY SERVICES.—The term

6 ‘‘family literacy services’’ means services that inte7 grate all of the following activities and are of suffi8 cient intensity in terms of hours, and of sufficient

9 duration, to make sustainable changes in a family:

10 (A) Interactive literacy activities between

11 parents and their children.

12 (B) Training for parents on how to be

13 their children’s primary teacher and full part14 ners in the education of their children.

15 (C) Parent literacy training.

16 (D) Early childhood education.

17 (4) LIBRARY.—The term ‘‘library’’ includes—

18 (A) a public library;

19 (B) a public elementary or secondary

20 school library;

21 (C) an academic library;

22 (D) a research library; and

23 (E) a private library, but only if the State

24 in which such private library is located deter-
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1 mines that the library should be considered a li2 brary for purposes of this title.

3 (5) SECRETARY.—The term ‘‘Secretary’’ means

4 the Secretary of Education.

5 Subtitle A—Funding

6 SEC. 411. RESERVATIONS FROM AMOUNTS APPROPRIATED.

7 (a) NATIONAL COMPETITIVE INCENTIVE GRANTS.—

8 For fiscal year 1998 and any succeeding fiscal year, the

9 Secretary shall reserve $20,000,000 of the amount appro10 priated under section 4 to provide the grants under section

11 431.

12 (b) NATIONAL INSTITUTE FOR LITERACY.—For any

13 fiscal year, the Secretary shall reserve $4,500,000 of the

14 amount appropriated under section 4 to carry out the ac15 tivities of the National Institute for Literacy described in

16 section 432.

17 (c) NATIONAL LEADERSHIP ACTIVITIES.—For any

18 fiscal year, the Secretary shall reserve $4,500,000 of the

19 amount appropriated under section 4 to establish and

20 carry out the program of national leadership and evalua21 tion activities described in section 433.

22 SEC. 412. ALLOTMENT.

23 (a) INITIAL ALLOTMENT.—From the sums available

24 for the purpose of making grants under subtitle B for any

25 fiscal year, the Secretary shall allot—
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1 (1) $100,000 each to Guam, American Samoa,

2 the Commonwealth of the Northern Mariana Is3 lands, and the Virgin Islands; and

4 (2) $250,000 to each of the other States.

5 (b) ADDITIONAL ALLOTMENT.—

6 (1) DIVISION OF REMAINING AMOUNTS.—For

7 any fiscal year, the Secretary shall divide the re8 mainder of the sums available for the purpose of

9 making grants under subtitle B for the year after

10 the application of subsection (a) into—

(A) a portion equal to 66 and 2 11 ⁄3 percent

12 of such remainder; and

(B) a portion equal to 33 and 1 13 ⁄3 percent

14 of such remainder.

15 (2) FORMULAS.—

16 (A) IN GENERAL.—The additional allot17 ment to a State for a fiscal year shall equal the

18 sum of the allotment to the State under sub19 paragraph (B) and the allotment to the State

20 under subparagraph (C) for the year.

21 (B) ALLOTMENT BASED ON QUALIFYING

22 ADULTS.—From the portion referred to in

23 paragraph (1)(A), the Secretary shall allot to

24 each State an amount which bears the same

25 ratio to such portion as the number of qualify-
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1 ing adults in the State bears to the number of

2 such adults in all States.

3 (C) ALLOTMENT BASED ON POPU4 LATION.—From the portion referred to in para5 graph (1)(B), the Secretary shall allot to each

6 State an amount which bears the same ratio to

7 such portion as the population of the State

8 bears to the population of all the States.

9 (3) QUALIFYING ADULT.—For purposes of

10 paragraph (2)(B), the term ‘‘qualifying adult’’

11 means an adult who—

12 (A) is at least 16 years of age, but less

13 than 61 years of age;

14 (B) is beyond the age of compulsory school

15 attendance under State law;

16 (C) does not have a certificate of gradua17 tion from a school providing secondary edu18 cation (or its equivalent); and

19 (D) is not currently enrolled in elementary

20 or secondary school.

21 Subtitle B—Grants to States

22 SEC. 421. REQUIREMENT TO MAKE GRANTS.

23 The Secretary shall make a grant for a fiscal year

24 to a State in an amount equal to the initial and additional

25 allotments of the State for the year if the State—
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1 (1) has satisfied the requirements of title I and

2 section 423(a)(1);

3 (2) enters into a written agreement with the

4 Secretary that the State—

5 (A) will not expend the grant for any pur6 pose other than in accordance with section 422;

7 (B) will satisfy the grant requirements in

8 section 423(a)(2) and 423(b); and

9 (C) will not expend the grant for the pur10 pose of supporting or providing programs, serv11 ices, or activities for individuals who are not

12 adults, except if such programs, services, or ac13 tivities are related to family literacy services.

14 SEC. 422. USES OF FUNDS.

15 (a) STATE USES OF FUNDS.—

16 (1) GRANTS TO LOCAL SERVICE PROVIDERS.—

17 Of the funds paid to a State under this title, at least

18 55 percent shall be distributed as grants made by

19 the State on a competitive basis, and consistent with

20 subsection (b) and section 423(b)(2), to local service

21 providers to establish, conduct, or expand programs,

22 services, or activities to achieve the purposes of this

23 title. Such local service providers may include the

24 following:

25 (A) Local educational agencies.
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1 (B) Correctional educational agencies.

2 (C) Community-based organizations.

3 (D) Public or private nonprofit agencies.

4 (E) Institutions of higher education.

5 (F) Libraries.

6 (G) Other institutions that the State deter7 mines to have the ability to provide literacy

8 services to adults and families.

9 (2) LIBRARY TECHNOLOGY.—Of the funds paid

10 to a State under this title, the State shall provide 30

11 percent to the State library administrative agency

12 for the State. Such agency shall expend such funds

13 for one or more of the following purposes:

14 (A) Electronically connecting libraries with

15 one-stop career center systems designated or es16 tablished under section 108 and local service

17 providers receiving grants under paragraph (1).

18 (B) Establishing or enhancing linkages

19 among libraries.

20 (C) Assisting libraries in accessing infor21 mation through electronic networks.

22 (D) Encouraging libraries in different Fed23 eral, State, and local jurisdictions, and different

24 types of libraries, to establish consortia and

25 share resources.
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1 (E) Paying costs for libraries to acquire or

2 share computer systems and telecommuni3 cations technologies.

4 (3) OTHER STATE ACTIVITIES.—A State may

5 use not more than 10 percent of the funds paid to

6 the State under this title for one or more of the fol7 lowing purposes:

8 (A) The establishment or operation of pro9 fessional development programs to improve the

10 quality of instruction provided in local adult

11 education and literacy programs, including in12 struction provided by volunteers.

13 (B) The provision of technology assistance

14 to local service providers to enable them to im15 prove the quality of their programs, services,

16 and activities that achieve the purposes of this

17 title, including—

18 (i) providing hardware and software;

19 (ii) paying for service connection fees

20 associated with gaining access to comput21 erized databases; and

22 (iii) upgrading the technological capa23 bilities of local service providers to improve

24 the quality of their services and to assist

25 them in providing services on a flexible
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1 schedule that meets the needs of diverse

2 populations.

3 (C) The support of State or regional net4 works of literacy resource centers that—

5 (i) enhance the coordination of lit6 eracy services across public and private

7 programs and State agencies;

8 (ii) enhance the capacity of the State

9 and local service providers to provide lit10 eracy services through the diffusion and

11 adoption of state-of-the-art teaching meth12 ods and technologies;

13 (iii) provide linkages between the Na14 tional Institute for Literacy established

15 under section 432 and local service provid16 ers for the sharing of literacy information,

17 research, and resources;

18 (iv) encourage government and indus19 try partnerships; and

20 (v) provide training and technical as21 sistance to literacy instructors in reading

22 instruction, the use of state-of-the-art

23 methodologies, instructional materials, and

24 technologies, and professional development.
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1 (D) Monitoring and evaluating the quality

2 of, and the improvement in, services and activi3 ties conducted with Federal financial assistance

4 under this title, including carrying out section

5 423(a)(2).

6 (E) Carrying out other activities of state7 wide significance that promote the purposes of

8 this Act.

9 (4) ADMINISTRATIVE EXPENSES.—In any fiscal

10 year, a State may use not more than 5 percent of

11 the funds paid to the State under this title or

12 $50,000, whichever is greater, for—

13 (A) planning, administration, technical as14 sistance to local service providers, and inter15 agency coordination, associated with a grant

16 under this title; and

17 (B) support for one-stop career center sys18 tems described in section 108.

19 (b) LOCAL USES OF FUNDS.—A State shall require

20 that a local service provider that receives a grant from

21 the State under subsection (a)(1) use the grant to estab22 lish or operate one or more programs that provide instruc23 tion or services within one or more of the following cat24 egories:
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1 (1) Adult basic education that is designed for

2 an adult who—

3 (A) has minimal competence in reading,

4 writing, or computation;

5 (B) is not sufficiently competent in read6 ing, writing, or computation to meet the re7 quirements of adult life in the United States; or

8 (C) is not sufficiently competent in speak9 ing, reading, or writing the English language to

10 obtain employment commensurate with the

11 adult’s intellectual abilities.

12 (2) Adult secondary education that is designed

13 for an adult who is literate and can function in ev14 eryday life, but who—

15 (A) has not acquired basic educational

16 skills, including reading, writing, and computa17 tion; or

18 (B) does not have a certificate of gradua19 tion from a school providing education to stu20 dents in grade 12, or its equivalent.

21 (3) English literacy instruction that is designed

22 for an adult—

23 (A) who—

24 (i) has limited ability in speaking,

25 reading, writing, or understanding the
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1 English language and whose native lan2 guage is a language other than English; or

3 (ii) lives in a family or community en4 vironment where a language other than

5 English is the dominant language; and

6 (B) who, by reason of a condition de7 scribed in subparagraph (A), has sufficient dif8 ficulty reading, writing, or understanding the

9 English language the adult is unable—

10 (i) to learn successfully in a classroom

11 where the language of instruction is Eng12 lish; or

13 (ii) to participate fully in the society

14 of the United States.

15 (4) Family literacy services.

16 SEC. 423. ADDITIONAL GRANT REQUIREMENTS.

17 (a) GOALS, PROGRESS INDICATORS, PERFORMANCE

18 MEASURES.—

19 (1) PLANNING REQUIREMENTS.—A State that

20 desires to receive a grant under this title shall ac21 complish the following:

22 (A) Establish, through the collaborative

23 process described in section 103, measurable

24 goals for improving literacy levels, retention in
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1 literacy programs, and long-term learning gains

2 of individuals in the State.

3 (B) Based on such goals and the perform4 ance measures described in section 424, estab5 lish, through such collaborative process,

6 progress indicators to be used to evaluate the

7 performance of local service providers receiving

8 a grant under section 422(a)(1).

9 (C) Describe such goals and progress indi10 cators in the State workforce development and

11 literacy plan submitted to the Secretary under

12 section 104.

13 (2) IMPLEMENTATION REQUIREMENTS.—A

14 State that receives a grant under this title shall ac15 complish the following:

16 (A) With respect to each local service pro17 vider receiving a grant under section 422(a)(1),

18 based on the goals and progress indicators es19 tablished under paragraph (1), measure the

20 performance measures described in section 424

21 and use the data produced by such measure22 ment to improve the quality of services provided

23 to program participants or service recipients.

24 (B) Beginning on the date that is 2 years

25 after the first date that a local service provider
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1 receives a grant under section 422(a)(1), annu2 ally assess the degree to which the provider is

3 meeting or exceeding the progress indicators

4 applicable to the provider.

5 (C) Annually report to the Secretary on

6 the performance measures described in section

7 424 for each category described in such section.

8 (b) OTHER REQUIREMENTS.—A State that receives

9 a grant under this title shall ensure the following:

10 (1) EXPENDITURES OF NON-FEDERAL

11 FUNDS.—For any fiscal year for which a grant is

12 made to the State under this title, the State shall

13 expend, on programs and activities relating to adult

14 education and family literacy services, an amount,

15 derived from sources other than the Federal Govern16 ment, equal to 25 percent of the State’s initial and

17 additional allotments for the year.

18 (2) PRIORITY FOR PLANNING WITH BOARDS

19 AND SYSTEMS.—In awarding grants to local service

20 providers under section 422(a)(1), the State shall

21 give priority to providers that demonstrate joint

22 planning with local workforce development boards

23 and one-stop career center systems.

24 (3) EQUITABLE ACCESS.—Local educational

25 agencies, public or private nonprofit agencies, com-
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1 munity-based organizations, correctional education

2 agencies, institutions of higher education, libraries,

3 and institutions which serve educationally disadvan4 taged adults shall be provided equitable access to

5 Federal funds provided under this title in accordance

6 with this title.

7 (4) PAYMENTS BY ONE-STOPS TO LOCAL SERV8 ICE PROVIDERS.—A one-stop career center system

9 that refers an individual to a local service provider

10 that—

11 (A) is receiving a grant from the State

12 under section 422(a)(1) shall pay to such pro13 vider, in accordance with the biennial strategic

14 plan of the local workforce development board

15 pursuant to which such center is established or

16 designated, an amount appropriate to pay for

17 the services required by the individual with re18 spect to which the reference is made; or

19 (B) is not receiving such a grant but is

20 providing adult education or literacy services

21 shall pay to such provider, in accordance with

22 such plan, such amount if the State has cer23 tified that such provider is eligible to receive

24 such funds.
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1 SEC. 424. PERFORMANCE MEASURES.

2 A State that receives a grant under this title for a

3 fiscal year shall measure the performance in the following

4 categories for such year of the programs, services, and ac5 tivities carried out by each local service provider receiving

6 a grant under section 422(a)(1):

7 (1) The percentage of adults served who, based

8 on skills or abilities acquired through such a pro9 gram, service, or activity—

10 (A) read to their children;

11 (B) provide support to their children in the

12 completion of homework assignments;

13 (C) participate on an ongoing basis in ac14 tivities that support their childrens’ schools;

15 (D) enrolled in institutions of higher edu16 cation or occupational training;

17 (E) obtained a job;

18 (F) advanced in their job; or

19 (G) performed new job requirements essen20 tial to retaining their job.

21 (2) The percentage of adults served who, based

22 on skills or abilities acquired through such a pro23 gram, service, or activity—

24 (A) obtained a high school diploma;

25 (B) obtained a high school equivalency di26 ploma; or
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1 (C) increased their literacy skills in a man2 ner that enabled them to operate more effec3 tively in their home and community.

4 (3) The percentage of adults served who, based

5 on skills or abilities acquired through such a pro6 gram, service, or activity—

7 (A) register to vote;

8 (B) obtain United States citizenship; or

9 (C) seek preventive health services.

10 (4) The percentage of incarcerated adults

11 served who, based on skills or abilities acquired

12 through such a program, service, or activity, upon

13 the termination of the period of their incarcer14 ation—

15 (A) enrolled in job training or education

16 programs;

17 (B) obtained employment; or

18 (C) returned to society prepared to func19 tion independently.

20 Subtitle C—National Programs

21 SEC. 431. NATIONAL COMPETITIVE INCENTIVE GRANTS.

22 (a) AUTHORITY TO SELECT ELIGIBLE STATES.—

23 (1) STATE PLAN.—A State that desires to re24 ceive an incentive grant under this section shall sub25 mit to the Secretary, by a date specified by the Sec-
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1 retary, a plan, to be implemented in the fiscal year

2 preceding any fiscal year for which the State desires

3 the grant, that describes—

4 (A) a methodology by which the State edu5 cational agency for the State will collaborate

6 with other State agencies to provide to the tar7 get populations described in subsection (c) serv8 ices to raise their level of education and im9 prove their employment skills; and

10 (B) goals and performance measures that

11 permit the success of such methodology and

12 services to be measured objectively.

13 (2) SELECTION OF STATES.—Based on the

14 quality of the plans submitted under paragraph (1)

15 for a fiscal year, the Secretary shall designate not

16 more than 10 States as meeting the preliminary cri17 terion for receipt of an incentive grant under this

18 section for such year.

19 (3) PLAN IMPLEMENTATION.—A State des20 ignated under paragraph (2) that desires to receive

21 an incentive grant shall implement the plan submit22 ted under paragraph (1).

23 (4) EVALUATION OF SUCCESS.—Not earlier

24 than the termination of the 1-year period beginning

25 on the date a State is designated under paragraph
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1 (2), the Secretary shall determine whether the State

2 is successfully implementing the plan submitted by

3 the State under paragraph (1) and achieving the

4 goals set forth in the plan.

5 (b) REQUIREMENT TO MAKE GRANTS.—

6 (1) IN GENERAL.—Beginning in fiscal year

7 1998 and thereafter, the Secretary shall make an in8 centive grant for a fiscal year to each State that the

9 Secretary determines, under subsection (a)(4), is

10 successfully implementing the plan submitted by the

11 State under subsection (a)(1) and achieving the

12 goals set forth in the plan.

13 (2) AMOUNT OF GRANT.—A grant to a State

14 for a fiscal year under paragraph (1) shall be in an

15 amount equal to the allotment of the State for the

16 year under paragraph (3).

17 (3) ALLOTMENT.—

18 (A) IN GENERAL.—From the sums avail19 able for a fiscal year for the purpose of making

20 grants under this section, the Secretary shall

21 allot to each State described in paragraph (1)

22 an amount determined through the application

23 of the formula described in subparagraph (B).

24 (B) FORMULA.—The Secretary shall de25 velop a formula for determining an appropriate
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1 allotment to a State under this subsection.

2 Such formula shall be based on the population

3 of the State and the success of the State in

4 achieving the goals set forth in the plan submit5 ted by the State under subsection (a)(1).

6 (c) TARGET POPULATIONS.—The target populations

7 referred to in subsection (a) are the following:

8 (1) Parents who are educationally disadvan9 taged adults and who have a child who is less than

10 8 years of age.

11 (2) Families on public assistance (as deter12 mined by the State submitting the plan under sub13 section (a)(1)).

14 (3) Adults with more than one barrier to self15 sufficiency such as being unemployed or an educa16 tionally disadvantaged adult.

17 SEC. 432. NATIONAL INSTITUTE FOR LITERACY.

18 (a) ESTABLISHMENT.—

19 (1) IN GENERAL.—There shall be established a

20 National Institute for Literacy (in this section re21 ferred to as the ‘‘Institute’’). The Institute shall be

22 administered under the terms of an interagency

23 agreement entered into by the Secretary of Edu24 cation with the Secretary of Labor and the Secretary

25 of Health and Human Services (in this section re-
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1 ferred to as the ‘‘Interagency Group’’). The Sec2 retary may include in the Institute any research and

3 development center, institute, or clearinghouse estab4 lished within the Department of Education whose

5 purpose is determined by the Secretary to be related

6 to the purpose of the Institute.

7 (2) BOARD RECOMMENDATIONS.—The Inter8 agency Group shall consider the recommendations of

9 the National Institute for Literacy Advisory Board

10 (in this section referred to as the ‘‘Board’’) estab11 lished under subsection (d) in planning the goals of

12 the Institute and in the implementation of any pro13 grams to achieve such goals.

14 (3) DAILY OPERATIONS.—The daily operations

15 of the Institute shall be carried out by the Director

16 of the Institute appointed under subsection (g).

17 (b) DUTIES.—

18 (1) IN GENERAL.—The Institute shall—

19 (A) provide national leadership for the im20 provement and expansion of the system for de21 livery of literacy services;

22 (B) coordinate the delivery of such serv23 ices;

24 (C) support the creation of new methods of

25 offering improved services; and
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1 (D) serve as a national resource for adult

2 education and family literacy services by provid3 ing to the public the best and most current in4 formation available on the subjects.

5 (2) AUTHORIZED ACTIVITIES.—In order to

6 carry out the duties described in paragraph (1), the

7 Institute may—

8 (A) establish a national electronic database

9 of information that includes—

10 (i) information on—

11 (I) effective practices in the pro12 vision of literacy and basic skills in13 struction;

14 (II) public and private literacy

15 and basic skills programs and Fed16 eral, State, and local policies affecting

17 the provision of literacy services at the

18 national, State, and local levels; and

19 (III) technical assistance, meet20 ings, conferences, and other opportu21 nities that lead to the improvement of

22 literacy and basic skills services; and

23 (ii) a communication network for lit24 eracy programs, providers, and students;
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1 (B) coordinate support for the provision of

2 literacy and basic skills services across Federal

3 agencies and at the State and local level;

4 (C) coordinate the support of research and

5 development on literacy and basic skills in fami6 lies and adults across Federal agencies and

7 carry out basic and applied research and devel8 opment on topics that are not being inves9 tigated by other organizations or agencies.

10 (D) collect and disseminate information on

11 methods of advancing literacy that show prom12 ise of success.

13 (E) work with the National Education

14 Goals Panel established under Goals 2000:

15 Educate America Act to assist local, State, and

16 national organizations and agencies in making

17 and measuring progress toward the National

18 Education Goals established under such Act;

19 and

20 (F) assist in the development of policy with

21 respect to literacy and basic skills.

22 (3) GRANTS, CONTRACTS, AND AGREEMENTS.—

23 The Institute may enter into contracts or coopera24 tive agreements with, or make grants to, individuals,

25 public or private institutions, agencies, organiza-
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1 tions, or consortia of such institutions, agencies, or

2 organizations to carry out the activities of the Insti3 tute. Such grants, contracts, or agreements shall be

4 subject to the laws and regulations that generally

5 apply to grants, contracts, or agreements entered

6 into by Federal agencies.

7 (c) LITERACY LEADERSHIP.—

8 (1) FELLOWSHIPS.—The Institute, in consulta9 tion with the Board, may award fellowships, with

10 such stipends and allowances as the Director consid11 ers necessary, to outstanding individuals pursuing

12 careers in adult education or literacy in the areas of

13 instruction, management, research, or innovation.

14 (2) USE OF FELLOWSHIPS.—Fellowships

15 awarded under this subsection shall be used, under

16 the auspices of the Institute, to engage in research,

17 education, training, technical assistance, or other ac18 tivities to advance the field of adult education or lit19 eracy, including the training of volunteer literacy

20 providers at the national, State, or local level.

21 (3) INTERNS AND VOLUNTEERS.—The Insti22 tute, in consultation with the Board, may award

23 paid and unpaid internships to individuals seeking to

24 assist the Institute in carrying out its mission. Not25 withstanding section 1342 of title 31, United States
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1 Code, the Institute may accept and use voluntary

2 and uncompensated services as the Institute deter3 mines necessary.

4 (d) NATIONAL INSTITUTE FOR LITERACY ADVISORY

5 BOARD.—

6 (1) ESTABLISHMENT.—

7 (A) IN GENERAL.—There shall be a Na8 tional Institute for Literacy Advisory Board.

9 The Board shall consist of 10 individuals ap10 pointed by the President with the advice and

11 consent of the Senate from individuals who—

12 (i) are not otherwise officers or em13 ployees of the Federal Government; and

14 (ii) are representative of entities or

15 groups described in subparagraph (B).

16 (B) ENTITIES OR GROUPS DESCRIBED.—

17 The entities or groups referred to in subpara18 graph (A) are—

19 (i) literacy organizations and provid20 ers of literacy services, including—

21 (I) nonprofit providers of literacy

22 services;

23 (II) providers of programs and

24 services involving English language in25 struction; and
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1 (III) providers of services receiv2 ing assistance under this title;

3 (ii) businesses that have demonstrated

4 interest in literacy programs;

5 (iii) literacy students;

6 (iv) experts in the area of literacy re7 search;

8 (v) State and local governments; and

9 (vi) organized labor.

10 (2) DUTIES.—The Board shall—

11 (A) make recommendations concerning the

12 appointment of the Director and staff of the In13 stitute;

14 (B) provide independent advice on the op15 eration of the Institute; and

16 (C) receive reports from the Interagency

17 Group and the Director.

18 (3) TERMS.—

19 (A) IN GENERAL.—Each member of the

20 Board shall be appointed for a term of 3 years,

21 except that the initial terms for members may

22 be 1, 2, or 3 years in order to establish a rotation in which 1 23 ⁄3 of the members are selected

24 each year.
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1 (B) VACANCY APPOINTMENTS.—Any mem2 ber appointed to fill a vacancy occurring before

3 the expiration of the term for which the mem4 ber’s predecessor was appointed shall be ap5 pointed only for the remainder of that term. A

6 member may serve after the expiration of that

7 members’ term until a successor has taken of8 fice. A vacancy in the Board shall be filled in

9 the manner in which the original appointment

10 was made. A vacancy in the Board shall not af11 fect the powers of the Board.

12 (4) QUORUM.—A majority of the members of

13 the Board shall constitute a quorum but a lesser

14 number may hold hearings. Any recommendation

15 may be passed only by a majority of its members

16 present.

17 (5) CHAIRPERSON AND VICE CHAIRPERSON.—

18 The chairperson and vice chairperson of the Board

19 shall be elected by the members. The term of office

20 of the chairperson and vice chairperson shall be 1

21 year.

22 (6) MEETINGS.—The Board shall meet at the

23 call of the chairperson or a majority of its members.
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1 (e) GIFTS, BEQUESTS, AND DEVISES.—The Institute

2 may accept, administer, and use gifts or donations of serv3 ices, money, or property, both real and personal.

4 (f) MAILS.—The Board and the Institute may use the

5 United States mails in the same manner and under the

6 same conditions as other departments and agencies of the

7 United States.

8 (g) STAFF.—The Interagency Group, after consider9 ing recommendations made by the Board, shall appoint

10 and fix the pay of a Director.

11 (h) APPLICABILITY OF CERTAIN CIVIL SERVICE

12 LAWS.—The Director and staff of the Institute may be

13 appointed without regard to the provisions of title 5,

14 United States Code, governing appointments in the com15 petitive service, and may be paid without regard to the

16 provisions of chapter 51 and subchapter III of chapter 53

17 of that title relating to classification and General Schedule

18 pay rates, except that an individual so appointed may not

19 receive pay in excess of the maximum rate payable under

20 section 5376 of title 5, United States Code.

21 (i) EXPERTS AND CONSULTANTS.—The Board and

22 the Institute may procure temporary and intermittent

23 services under section 3109(b) of title 5, United States

24 Code.
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1 (j) REPORT.—The Institute shall submit a biennial

2 report to the Interagency Group and the Congress.

3 SEC. 433. NATIONAL LEADERSHIP ACTIVITIES.

4 (a) IN GENERAL.—The Secretary may establish and

5 carry out a program of national leadership and evaluation

6 activities to enhance the quality of adult education and

7 family literacy programs nationwide. Such activities may

8 include the following:

9 (1) Research and development.

10 (2) Demonstration of model and innovative pro11 grams.

12 (3) Evaluations, including independent evalua13 tions of adult education and family literacy pro14 grams carried out with financial assistance received

15 pursuant to this title.

16 (4) Data collection.

17 (5) Professional development.

18 (6) Technical assistance to States and local

19 service providers receiving Federal financial assist20 ance pursuant to this title.

21 (7) Other activities to enhance the quality of

22 adult education and family literacy programs nation23 wide.

24 (b) GRANTS, CONTRACTS, AND COOPERATIVE

25 AGREEMENTS.—The Secretary may carry out the activi-
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1 ties described in subsection (a) directly or through grants,

2 contracts, and cooperative agreements.

3 TITLE V—AMENDMENTS TO

4 REHABILITATION ACT OF 1973

5 Subtitle A—Vocational

6 Rehabilitation Consolidation Grant

7 CHAPTER 1—TRANSITION PERIOD

8 SEC. 501. TRANSITION.

9 With respect to the amendment made by section

10 511(4) to title I of the Rehabilitation Act of 1973, the

11 Secretary of Education, acting through the Commissioner

12 of the Rehabilitation Services Administration, shall admin13 ister the amendment in accordance with the following:

14 (1) During fiscal year 1996, the Secretary shall

15 develop administrative policies for implementing the

16 amendment.

17 (2) During the fiscal years 1997 and 1998, the

18 Secretary shall begin implementing the amendment

19 in accordance with paragraph (4).

20 (3) The Secretary shall ensure that, by the first

21 day of fiscal year 1999, the amendment is fully im22 plemented.

23 (4) For purposes of paragraph (2), the Sec24 retary shall ensure that, before the first day of fiscal

25 year 1999, the following requirements (administered
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1 as conditions on the receipt of grants under such

2 title) have been met:

3 (A) The States have complied with section

4 103(b)(4) of such title (as amended by section

5 511) regarding the participation of certain pro6 viders.

7 (B) The States have established policies

8 and made arrangements for the operation of the

9 system of vouchers described in section 103(c)

10 of such title, including with respect to the reim11 bursement of providers.

12 (C) The States have established policies

13 and made arrangements under section

14 103(b)(11) of such title regarding the training

15 of the management and staff of one-stop career

16 centers with respect to individuals with disabil17 ities.

18 (D) The States have established policies

19 and made arrangements under section 104 of

20 such title regarding the establishment of such

21 centers, including providing for the significant

22 participation of community-based providers in

23 the program carried out by the State pursuant

24 to such title.
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1 (E) Such other requirements under the

2 amendment as the Secretary determines to be

3 appropriate.

4 (5)(A) Notwithstanding the amendment, during

5 the fiscal years 1996 through 1998, the provisions

6 of title I of the Rehabilitation Act of 1973 that were

7 in effect on the day before the date of the enactment

8 of this Act continue to be in effect, subject to para9 graphs (1) through (4). In implementing the amend10 ment, the Secretary shall seek to avoid unnecessarily

11 disrupting the provision of services under such title

12 to individuals who, as of the date of the enactment

13 of this Act, were receiving services pursuant to an

14 individualized plan under such title.

15 (B) On and after the first day of fiscal year

16 1999, the provisions referred to in the first sentence

17 of subparagraph (A) do not have any legal effect.

18 CHAPTER 2—REVISION OF TITLE I OF

19 REHABILITATION ACT OF 1973

20 SEC. 511. COMPREHENSIVE REVISION.

21 Effective October 1, 1995, the Rehabilitation Act of

22 1973 (29 U.S.C. 701 et seq.) is amended—

23 (1) by transferring section 112 from the cur24 rent placement of the section;
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1 (2) by redesignating such section as section

2 510;

3 (3) by adding such section at the end of title

4 V; and

5 (4) by amending title I to read as follows:

6 ‘‘TITLE I—VOCATIONAL

7 REHABILITATION SERVICES

8 ‘‘SEC. 100. PURPOSE.

9 ‘‘The purpose of this title is to assist States in mak10 ing available to individuals with disabilities a program of

11 employment, training, and rehabilitation services that

12 maximizes an individual’s control over their vocational and

13 career choices, and is in accordance with the goal of assur14 ing equality of opportunity, full participation, independent

15 living, and economic self-sufficiency for such individuals.

16 ‘‘SEC. 101. FORMULA GRANTS.

17 ‘‘(a) IN GENERAL.—

18 ‘‘(1) FORMULA GRANTS.—In the case of each

19 State that submits to the Secretary a workforce de20 velopment and literacy plan for fiscal year 1999 or

21 any subsequent fiscal year that meets the require22 ment of section 103 of the Consolidated and Re23 formed Education, Employment, and Rehabilitation

24 Systems Act, the Secretary shall make a grant for

25 the year to the State as the Federal share of carry-
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1 ing out the purposes specified in this title. The grant

2 shall consist of the allotment determined for the

3 State under section 107.

4 ‘‘(2) CONDITIONS FOR GRANT.—A State may

5 receive a grant under paragraph (1) for a fiscal year

6 only if the State meets the conditions described in

7 this title for the State for the fiscal year.

8 ‘‘(b) ADMINISTRATOR OF FEDERAL PROGRAM.—The

9 Secretary shall carry out this title acting through the

10 Commissioner of the Rehabilitation Services Administra11 tion, except as indicated otherwise.

12 ‘‘(c) RULE OF CONSTRUCTION.—The purpose speci13 fied in section 100 shall be carried out only in accordance

14 with the other provisions of this title.

15 ‘‘(d) FUNDING.—

16 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—

17 For the purpose of carrying out this title, there are

18 authorized to be appropriated such sums as may be

19 necessary for each of the fiscal years 1999 through

20 2002, except that the amount to be appropriated for

21 a fiscal year shall not be less than the amount of the

22 appropriation under this subsection for the imme23 diately preceding fiscal year, plus the amount of the

24 Consumer Price Index addition determined under
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1 paragraph (2) for the immediately preceding fiscal

2 year.

3 ‘‘(2) ADJUSTMENTS PURSUANT TO CONSUMER

4 PRICE INDEX.—

5 ‘‘(A) Not later than November 15 of each

6 fiscal year, the Secretary of Labor shall publish

7 in the Federal Register the percentage change

8 in the Consumer Price Index published for Oc9 tober of the preceding fiscal year and October

10 of the fiscal year in which such publication is

11 made.

12 ‘‘(B) If in any fiscal year the percentage

13 change published under subparagraph (A) indi14 cates an increase in the Consumer Price Index,

15 then the amount to be appropriated under para16 graph (1) for the subsequent fiscal year shall be

17 at least the amount appropriated for the fiscal

18 year in which the publication is made under

19 subparagraph (A) increased by such percentage

20 change.

21 ‘‘(C) If in any fiscal year the percentage

22 change published under subparagraph (A) does

23 not indicate an increase in the Consumer Price

24 Index, then the amount to be appropriated

25 under paragraph (1) for the subsequent fiscal
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1 year shall be at least the amount appropriated

2 for the fiscal year in which the publication is

3 made under subparagraph (A).

4 ‘‘(D) For purposes of this paragraph, the

5 term ‘Consumer Price Index’ means the

6 Consumer Price Index for All Urban Consum7 ers, published monthly by the Bureau of Labor

8 Statistics.

9 ‘‘(3) AUTOMATIC EXTENSION OF AUTHORIZA10 TION.—

11 ‘‘(A) Unless, in the regular session that

12 ends prior to the beginning of the last fiscal

13 year for which an authorization of appropria14 tions is provided in paragraph (1), legislation

15 has been enacted that has the effect of extend16 ing such authorization, such authorization is

17 automatically extended for one additional year.

18 ‘‘(B) The amount authorized to be appro19 priated for the additional fiscal year described

20 in subparagraph (A) shall be an amount equal

21 to the amount appropriated for such program

22 for fiscal year 2002, plus the amount of the

23 Consumer Price Index addition determined

24 under paragraph (2) for the immediately pre25 ceding fiscal year.
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1 ‘‘(C) In any case where the Commissioner

2 is required under an applicable statute to carry

3 out certain acts or make certain determinations

4 that are necessary for the continuation of the

5 program authorized by this title, and such acts

6 or determinations are required during the last

7 fiscal year for which an authorization of appro8 priations is provided in paragraph (1), such

9 acts and determinations shall be required dur10 ing any fiscal year for which subparagraph (A)

11 is in operation.

12 ‘‘SEC. 102. ALLOCATION WITHIN STATE OF ADMINISTRA13 TIVE RESPONSIBILITIES.

14 ‘‘(a) IN GENERAL.—For purposes of section 101(a),

15 a State, subject to subsection (b)—

16 ‘‘(1) will reserve not more than 10 percent of

17 the grant under such section for the fiscal year in18 volved for carrying out the responsibilities of a State

19 administrative agent under section 103; and

20 ‘‘(2) will reserve not less than 90 percent of the

21 grant for carrying out the responsibilities under sec22 tion 104 of local workforce development boards and

23 one-stop career centers with respect to workforce de24 velopment areas.
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1 ‘‘(b) WAIVER.—With respect to the expenditure by

2 a State of a grant under section 101(a) for a fiscal year,

3 the Secretary may provide to the State a waiver under

4 which the State is authorized to reduce the reservation

5 of funds under subsection (a)(2) by 10 percent and expend

6 the resulting funds for the administration, by the State

7 administrative agent, of responsibilities that otherwise

8 would be carried out under section 104 by local workforce

9 development boards or one-stop career centers. The Sec10 retary may provide such a waiver only if the Secretary

11 determines that the waiver is justified for reasons regard12 ing the efficient and equitable provision in the State of

13 services under this title.

14 ‘‘(c) CERTAIN DEFINITIONS.—For purposes of this

15 Act, the terms ‘State administrative agent’, ‘local

16 workforce development area’, ‘local workforce development

17 board’, and ‘one-stop career center’ have the meanings

18 given such terms in sections 105 through 108, respec19 tively, of the Consolidated and Reformed Education, Em20 ployment, and Rehabilitation Systems Act.

21 ‘‘SEC. 103. RESPONSIBILITIES OF STATE ADMINISTRATIVE

22 AGENT.

23 ‘‘(a) STATE ADMINISTRATIVE AGENT.—In carrying

24 out the requirement of section 105 of the Consolidated

25 and Reformed Education, Employment, and Rehabilita-
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1 tion Systems Act that a Governor must designate a State

2 administrative agent to carry out this title, a Governor

3 may designate—

4 ‘‘(1) one State administrative agent to be re5 sponsible for carrying out this title for individuals

6 who are blind; and

7 ‘‘(2) a different State administrative agent to

8 carry out the remaining responsibilities in this title.

9 ‘‘(b) RESPONSIBILITIES.—For purposes of section

10 101(a) and the operation in a State of the program under

11 this title:

12 ‘‘(1) This subsection, and subsection (d) (as ap13 plicable), will be carried out by State administrative

14 agents designated by the Governor in accordance

15 with subsection (a), through the collaborative proc16 ess established under section 103 of the Consoli17 dated and Reformed Education, Employment, and

18 Rehabilitation Systems Act.

19 ‘‘(2)(A) The State will provide to the public an

20 explanation of the methods by which the State will

21 provide vocational rehabilitation services to all eligi22 ble individuals (as defined in section 105(d)) in the

23 State.

24 ‘‘(B) In the event that such services cannot be

25 provided to all eligible individuals who apply for the
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1 services, the State will show and provide the jus2 tification for the order to be followed in selecting in3 dividuals to whom the services will be provided.

4 ‘‘(C) The order of selection under subparagraph

5 (B) will be determined on the basis of serving first

6 those individuals with the most severe disabilities, in

7 accordance with criteria established by the State.

8 ‘‘(3) The State will establish guidelines provid9 ing that, in the case of an individual to whom the

10 State will provide a service (in accordance with the

11 order of selection under paragraph (2) and the as12 sessment of needs under section 105(b)(2)(A)), the

13 individual will have the option of receiving the serv14 ice from a provider designated by the center or from

15 a provider selected by the individual pursuant to

16 vouchers under subsection (c).

17 ‘‘(4) Pursuant to section 109 of the Consoli18 dated and Reformed Education, Employment, and

19 Rehabilitation Systems Act, the State will make sig20 nificant efforts to encourage the participation in the

21 State program of community-based private provid22 ers, with special consideration given to providers

23 who have been recipients of funds under this Act re24 garding projects with industry or supported employ25 ment services.
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1 ‘‘(5) The State will establish provisions to gov2 ern determinations under section 105 (relating to

3 the eligibility of individuals).

4 ‘‘(6) The State will establish provisions to gov5 ern assessments under section 104(b)(1) (relating to

6 the need of individuals for services).

7 ‘‘(7) The State will ensure that vocational reha8 bilitation services under this title are provided by

9 personnel who are qualified to provide the services

10 involved.

11 ‘‘(8) The State will establish plans, policies, and

12 procedures to be followed in carrying out the pro13 gram under this title in the State (including enter14 ing into a formal interagency cooperative agreement

15 with education officials responsible for the provision

16 of a free appropriate public education to students

17 who are individuals with disabilities). The State will

18 ensure that such plans, policies, and procedures are

19 designed in accordance with the following:

20 ‘‘(A)(i) To facilitate the development and

21 accomplishment of the goals and objectives de22 scribed in clause (ii) (including the specification

23 of plans for coordination with the educational

24 agencies in the provision of transition services),

25 to the extent that the goals and objectives are
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1 included in an individualized education program

2 of a student.

3 ‘‘(ii) The goals and objectives referred to

4 in clause (i) are long-term rehabilitation goals;

5 intermediate rehabilitation objectives; and goals

6 and objectives related to enabling a student to

7 live independently before the student leaves a

8 school setting.

9 ‘‘(B) To facilitate the transition from the

10 provision of a free appropriate public education

11 under the responsibility of an educational agen12 cy to the provision of vocational rehabilitation

13 services under this title, including the specifica14 tion of plans for coordination with educational

15 agencies in the provision of transition services

16 to an individual.

17 ‘‘(C) To provide for—

18 ‘‘(i) provisions for determining State

19 lead agencies and qualified personnel re20 sponsible for transition services;

21 ‘‘(ii) procedures for outreach to and

22 identification of youth in need of such

23 services; and
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1 ‘‘(iii) a timeframe for evaluation and

2 followup of youth who have received such

3 services.

4 ‘‘(9) The State will provide for coordination and

5 working relationships with the Statewide Independ6 ent Living Council established under section 705

7 and independent living centers within the State.

8 ‘‘(10) The State will provide for interagency co9 operation with, and the utilization of the services

10 and facilities of, the State agencies administering

11 the State’s public assistance programs, and other

12 programs for individuals with disabilities.

13 ‘‘(11) With respect to the one-stop career cen14 ters operated pursuant to section 104, the State will

15 provide for the appropriate training of the manage16 ment and staff of the centers regarding the effective

17 provision of services to individuals with disabilities.

18 ‘‘(c) AVAILABILITY OF VOUCHER SYSTEM REGARD19 ING SERVICES.—For purposes of section 101(a) and the

20 operation in a State of the program under this title:

21 ‘‘(1) The State will provide for the establish22 ment of a system to carry out this subsection.

23 ‘‘(2) In the case of an eligible individual who

24 (in accordance with the order of selection under sub25 section (b)(2) and the assessment of needs under
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1 section 105(b)(2)(A)) will receive vocational rehabili2 tation services under this title, the one-stop career

3 center involved will, upon request of the individual,

4 provide to the individual vouchers in accordance with

5 this subsection.

6 ‘‘(3) Vouchers under this subsection will enable

7 such individual to obtain the vocational rehabilita8 tion services involved from providers selected by the

9 individual from among a list of providers approved

10 by the State for such purpose in accordance with

11 section 109 of the Consolidated and Reformed Edu12 cation, Employment, and Rehabilitation Systems

13 Act.

14 ‘‘(4) The State will ensure that the monetary

15 value of a voucher provided to the individual for a

16 particular type of service is calculated at a fair mar17 ket value.

18 ‘‘(5) To the extent practicable, the list of pro19 viders under paragraph (3) will provide for the avail20 ability within each local workforce development area

21 of a broad range of services.

22 ‘‘(d) STATE OPTIONS.—With respect to compliance

23 with this section, a State may, in the discretion of the

24 State, expend a grant under section 101 for the following:
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1 ‘‘(1) To provide technical assistance to local

2 boards, one-stop career centers, and providers relat3 ing to the provision of vocational rehabilitation serv4 ices under this title.

5 ‘‘(2) To disseminate findings from research re6 garding vocational rehabilitation services, after con7 sideration of requests from local workforce develop8 ment boards and one-stop career centers regarding

9 the types of information needed by such boards and

10 centers.

11 ‘‘(3) To conduct demonstration projects regard12 ing improvements with respect to vocational rehabili13 tation services, subject to providing the results of

14 such projects to the Commissioner and as appro15 priate disseminating the results within the State.

16 ‘‘SEC. 104. RESPONSIBILITIES FOR LOCAL BOARDS AND

17 SERVICE CENTERS.

18 ‘‘(a) PROVISION OF VOCATIONAL REHABILITATION

19 SERVICES.—For purposes of section 101(a) and the oper20 ation in a State of the program under this title:

21 ‘‘(1) This section will be carried out by the one22 stop career centers in the State, with each such cen23 ter acting under the guidance of the local workforce

24 development board for the local workforce area with25 in which the center operates.
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1 ‘‘(2) In accordance with the order of selection

2 under section 103(b)(2), a one-stop career center

3 will, in expending amounts provided to the center

4 from a grant under section 101—

5 ‘‘(A) make determinations under section

6 105 of the eligibility of individuals for voca7 tional rehabilitation services; and

8 ‘‘(B) provide for such goods or services for

9 eligible individuals as are—

10 ‘‘(i) necessary to render the individ11 uals employable and achieve an employ12 ment outcome; and

13 ‘‘(ii) provided in response to needs

14 that arise, to a significant extent, from the

15 disability involved and do not duplicate, to

16 any significant extent, the core services

17 available under title I of the Consolidated

18 and Reformed Education, Employment,

19 and Rehabilitation Systems Act.

20 ‘‘(b) CERTAIN SERVICES.—With respect to compli21 ance with this section, vocational rehabilitation services

22 under this title (as defined in subsection (f)) may include

23 the following:

24 ‘‘(1) An assessment of the needs of eligible indi25 viduals for such services.
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1 ‘‘(2) Counseling, guidance, and work-related

2 placement services for individuals with disabilities,

3 including job search assistance, placement assist4 ance, job retention services, personal assistance serv5 ices, and followup, follow-along, and specific

6 postemployment services necessary to assist such in7 dividuals to maintain, regain, or advance in employ8 ment.

9 ‘‘(3) Vocational and other training services for

10 individuals with disabilities, including personal and

11 vocational adjustment, books, or other training ma12 terials, and such services to the families of such in13 dividuals as are necessary to the adjustment or reha14 bilitation of such individuals.

15 ‘‘(4) Development of written plans for the pro16 vision of services.

17 ‘‘(5) Rehabilitation technology services.

18 ‘‘(6) Supported employment services.

19 ‘‘(7) Physical and mental restoration services.

20 ‘‘(8) Interpreter services for individuals who are

21 deaf, and reader services for individuals who are

22 blind.

23 ‘‘(9) Rehabilitation teaching services and ori24 entation and mobility services for individuals who

25 are blind.
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1 ‘‘(10) Referral and other services designed to

2 assist individuals with disabilities in securing needed

3 services from other agencies through agreements de4 veloped under section 103(b)(9), if such services are

5 not available under this Act.

6 ‘‘(11) Any other vocational rehabilitation serv7 ice.

8 ‘‘(c) ALLOCATION FOR CORE SERVICES.—For pur9 poses of section 101(a):

10 ‘‘(1) With respect to a fiscal year, a local

11 workforce development board receiving amounts

12 from a grant under section 101 will reserve an

13 amount for the provision of core services under title

14 I of the Consolidated and Reformed Education, Em15 ployment, and Rehabilitation Systems Act.

16 ‘‘(2) The amount so reserved will be based on

17 the number of eligible individuals with disabilities in

18 the local workforce development area, exceptional

19 costs of facilitating the provision of core services to

20 eligible individuals, and training of employees of the

21 one-stop career centers to provide high-quality serv22 ices to individuals with disabilities, and other factors

23 relating to disability that the board considers appro24 priate.
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1 ‘‘(d) PERFORMANCE PAYMENTS REGARDING VOUCH2 ERS.—For purposes of section 101(a), the local board will

3 ensure that, in providing for the payment of services pro4 vided pursuant to vouchers, a provider does not receive

5 full payment until the delivery of the services involved is

6 completed in reasonable accordance with the outcome des7 ignated for the service pursuant to a prior understanding

8 with the provider.

9 ‘‘(e) PAYOR OF LAST RESORT REGARDING MEDICAL

10 SERVICES AND EDUCATIONAL ASSISTANCE.—For pur11 poses of section 101(a), a State will not expend a grant

12 under section 101 to pay for training services in institu13 tions of higher education, or to pay for medical services,

14 unless maximum efforts have been made to secure pay15 ments, in whole or in part, from other sources.

16 ‘‘(f) DEFINITION.—For purposes of this title, the

17 term ‘vocational rehabilitation services’ means goods and

18 services described in subsection (a)(2)(B).

19 ‘‘SEC. 105. ELIGIBLE INDIVIDUAL.

20 ‘‘(a) IN GENERAL.—For purposes of section 101:

21 ‘‘(1) An individual will not receive vocational re22 habilitation services under this title unless the indi23 vidual—

24 ‘‘(A) is an individual with a disability

25 under section 7(8)(A); and
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1 ‘‘(B) requires vocational rehabilitation

2 services to prepare for, enter, engage in, or re3 tain gainful employment.

4 ‘‘(2) If the individual has a disability or is blind

5 as determined pursuant to title II or title XVI of the

6 Social Security Act, the individual will be considered

7 to have—

8 ‘‘(A) a physical or mental impairment

9 which for such individual constitutes or results

10 in a substantial impediment to employment

11 under section 7(8)(A)(i); and

12 ‘‘(B) a severe physical or mental impair13 ment which seriously limits one or more func14 tional capacities in terms of an employment

15 outcome under section 7(15)(A)(i).

16 ‘‘(b) PROCESS.—For purposes of section 101(a), a

17 State will ensure that, subject to the order of selection

18 under section 102(b)(2), the following applies to an indi19 vidual:

20 ‘‘(1) Once the individual makes a request in

21 person for a determination of eligibility:

22 ‘‘(A) An adviser will be made available to

23 the individual regarding the process of obtain24 ing services under this title.
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1 ‘‘(B) An initial interview will be conducted,

2 followed by an initial assessment.

3 ‘‘(C) A final determination will be made

4 not later than 30 days after the request (sub5 ject to the cooperation of the individual in the

6 process of determination).

7 ‘‘(D) The determination of eligibility will

8 be based on the review of existing data de9 scribed in clause (i) of section 7(22)(A), and, to

10 the extent necessary, the preliminary assess11 ment described in clause (ii) of such section.

12 ‘‘(E) If it is determined that the individual

13 is not an eligible individual, the individual will

14 be provided a written statement explaining the

15 basis of the determination.

16 ‘‘(2) If it is determined that the individual is an

17 eligible individual:

18 ‘‘(A) The needs of the individual for voca19 tional rehabilitation services will be assessed.

20 ‘‘(B) Upon the request of the individual,

21 assistance will be provided to the individual in

22 the development of a written plan for the indi23 vidual regarding the provision of services pursu24 ant to subparagraph (A).
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1 ‘‘(c) RULE OF CONSTRUCTION.—This title may not

2 be construed as establishing an entitlement in any individ3 ual.

4 ‘‘(d) DEFINITION.—For purposes of this title, the

5 term ‘eligible individual’ means an individual described in

6 subsection (a)(1).

7 ‘‘SEC. 106. STATE REHABILITATION ADVISORY COUNCIL.

8 ‘‘(a) IN GENERAL.—For purposes of section 101(a):

9 ‘‘(1) A State will establish a State Rehabilita10 tion Advisory Council (referred to in this section as

11 the ‘Council’) in accordance with this section.

12 ‘‘(2) The Council will be composed of the fol13 lowing:

14 ‘‘(A) Representatives of organizations with15 in the State providing services to individuals

16 with disabilities and their families.

17 ‘‘(B) Representatives of business, industry,

18 and labor.

19 ‘‘(C) Representatives of disability advocacy

20 groups representing a cross section of—

21 ‘‘(i) individuals with physical, cog22 nitive, sensory, and mental disabilities; and

23 ‘‘(ii) parents, family members, guard24 ians, advocates, or authorized representa25 tives, of individuals with disabilities who
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1 have difficulty in representing themselves

2 or are unable due to their disabilities to

3 represent themselves;

4 ‘‘(3) The State administrative agent will be an

5 ex officio member of the Council.

6 ‘‘(4) Members of the Council will be appointed

7 by the Governor or another entity that has appoint8 ment authority under State law.

9 ‘‘(5) A majority of Council members will be per10 sons who are—

11 ‘‘(A) individuals with disabilities described

12 in section 7(8)(B); and

13 ‘‘(B) not employed by the designated State

14 administrative agent.

15 ‘‘(6)(A) Except as provided in subparagraph

16 (B), the Council will select a chairperson from

17 among the membership of the Council.

18 ‘‘(B) In States in which the Governor does not

19 have veto power pursuant to State law, the Governor

20 will designate a member of the Council to serve as

21 the chairperson of the Council or will require the

22 Council to so designate such a member.

23 ‘‘(7) Each member of the Council will serve for

24 a term determined by the Governor or another entity

25 that has appointment authority under State law.
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1 ‘‘(8) Any vacancy occurring in the membership

2 of the Council will be filled in the same manner as

3 the original appointment. The vacancy will not affect

4 the power of the remaining members to execute the

5 duties of the Council.

6 ‘‘(b) FUNCTIONS OF COUNCIL.—For purposes of sec7 tion 101(a), the Council will carry out the following:

8 ‘‘(1) Advise the collaborative process under sec9 tion 103 of the Consolidated and Reformed Edu10 cation, Employment, and Rehabilitation Systems

11 Act, and the State administrative agent, in the prep12 aration of the State workforce development and lit13 eracy plan and other plans, reports, needs assess14 ments, and evaluations required by this title.

15 ‘‘(2) To the extent feasible, conduct a review

16 and analysis of the effectiveness of, and consumer

17 satisfaction with, the delivery of core services and

18 vocational rehabilitation services to individuals with

19 disabilities within the State.

20 ‘‘(3) Prepare and submit an annual report to

21 the collaborative process or appropriate State admin22 istrative agent and the Commissioner on the status

23 of vocational rehabilitation programs operated within

24 the State, and make the report available to the pub25 lic.
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1 ‘‘(4) Coordinate with other councils within the

2 State established to address the needs of individuals

3 with disabilities.

4 ‘‘(5) Perform such other functions, consistent

5 with the purpose of this title, as the State Rehabili6 tation Advisory Council determines to be appro7 priate, that are comparable to the other functions

8 performed by the Council.

9 ‘‘(c) RESOURCES.—

10 ‘‘(1) PLAN.—For purposes of section 101(a),

11 the Council will prepare, in conjunction with the

12 State administrative agent, a plan for the provision

13 of such resources, including such staff and other

14 personnel, as may be necessary to carry out the

15 functions of the Council under this section. The re16 source plan shall, to the maximum extent possible,

17 rely on the use of resources in existence during the

18 period of implementation of the plan.

19 ‘‘(2) RESOLUTION OF DISAGREEMENTS.—For

20 purposes of section 101(a), to the extent that there

21 is a disagreement between the Council and the State

22 administrative agent in regard to the resources nec23 essary to carry out the functions of the Council as

24 set forth in this section, the disagreement will be re-
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1 solved by the Governor or appointing agency identi2 fied in subsection (a)(4).

3 ‘‘(3) SUPERVISION AND EVALUATION.—For

4 purposes of section 101(a), the Council will, consist5 ent with State law, supervise and evaluate such staff

6 and other personnel as may be necessary to carry

7 out its functions under this section.

8 ‘‘(4) PERSONNEL CONFLICT OF INTEREST.—

9 For purposes of section 101(a), while assisting the

10 Council in carrying out its duties, staff and other

11 personnel will not be assigned duties by the State

12 administrative agent or any other agency or office of

13 the State, that would create a conflict of interest.

14 ‘‘(d) CONFLICT OF INTEREST.—For purposes of sec15 tion 101(a), no member of the Council will cast a vote

16 on any matter that would provide direct financial benefit

17 to the member or otherwise give the appearance of a con18 flict of interest under State law.

19 ‘‘(e) MEETINGS.—For purposes of section 101(a), the

20 Council will convene meetings and conduct such forums

21 or hearings as the Council considers appropriate. The

22 meetings, hearings, and forums will be publicly an23 nounced. The meetings will be open and accessible to the

24 general public unless there is a valid reason for an execu25 tive session.
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1 ‘‘(f) COMPENSATION AND EXPENSES.—For purposes

2 of section 101(a), the Council may use funds appropriated

3 under this title to reimburse members of the Council for

4 reasonable and necessary expenses of attending Council

5 meetings and performing Council duties (including child

6 care and personal assistance services), and to pay com7 pensation to a member of the Council, if such member is

8 not employed or must forfeit wages from other employ9 ment, for each day the member is engaged in performing

10 the duties of the Council.

11 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec12 tion prohibits a State from establishing and providing

13 funds to a separate council to carry out functions de14 scribed in subsection (b) with respect to vocational reha15 bilitation services for individuals who are blind.

16 ‘‘SEC. 107. AMOUNT OF ALLOTMENT.

17 ‘‘(a)(1) Subject to the provisions of subsection (d),

18 for each fiscal year beginning before October 1, 1978, each

19 State shall be entitled to an allotment of an amount bear20 ing the same ratio to the amount authorized to be appro21 priated under section 101(d) for allotment under this sec22 tion as the product of (A) the population of the State,

23 and (B) the square of its allotment percentage, bears to

24 the sum of the corresponding products for all the States.
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1 ‘‘(2)(A) For each fiscal year beginning on or after

2 October 1, 1978, each State shall be entitled to an allot3 ment in an amount equal to the amount such State re4 ceived under paragraph (1) for the fiscal year ending Sep5 tember 30, 1978, and an additional amount determined

6 pursuant to subparagraph (B) of this paragraph.

7 ‘‘(B) For each fiscal year beginning on or after Octo8 ber 1, 1978, each State shall be entitled to an allotment,

9 from any amount authorized to be appropriated for such

10 fiscal year under section 101(d) for allotment under this

11 section in excess of the amount appropriated under such

12 section for the fiscal year ending September 30, 1978, in

13 an amount equal to the sum of—

14 ‘‘(i) an amount bearing the same ratio to 50

15 percent of such excess amount as the product of the

16 population of the State and the square of its allot17 ment percentage bears to the sum of the correspond18 ing products for all the States; and

19 ‘‘(ii) an amount bearing the same ratio to 50

20 percent of such excess amount as the product of the

21 population of the State and its allotment percentage

22 bears to the sum of the corresponding products for

23 all the States.

24 ‘‘(3) The sum of the payment to any State (other

25 than Guam, American Samoa, the Virgin Islands, and the
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1 Northern Mariana Islands) under this subsection for any

2 fiscal year which is less than one-third of 1 percent of the

3 amount appropriated under section 101(d), or $3,000,000,

4 whichever is greater, shall be increased to that amount,

5 the total of the increases thereby required being derived

6 by proportionately reducing the allotment to each of the

7 remaining such States under this subsection, but with

8 such adjustments as may be necessary to prevent the sum

9 of the allotments made under this subsection to any such

10 remaining State from being thereby reduced to less than

11 that amount.

12 ‘‘(4) For each fiscal year beginning on or after Octo13 ber 1, 1984, for which any amount is appropriated pursu14 ant to section 101(d), each State shall receive an alloca15 tion (from such appropriated amount) in addition to the

16 allotment to which such State is entitled under paragraphs

17 (2) and (3) of this subsection. Such additional allocation

18 shall be an amount which bears the same ratio to the

19 amount so appropriated as that State’s allotment under

20 paragraphs (2) and (3) of this subsection bears to the sum

21 of such allotments of all the States.

22 ‘‘(b)(1) If the payment to a State pursuant to this

23 section for a fiscal year is less than the total payments

24 such State received under section 2 of the Vocational Re25 habilitation Act for the fiscal year ending June 30, 1973,
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1 such State shall be entitled to an additional payment (sub2 ject to the same terms and conditions applicable to other

3 payments under this part) equal to the difference between

4 the payment under this section and the amount so received

5 by it.

6 ‘‘(2) If a State receives as its Federal share pursuant

7 to this section for any fiscal year less than the applicable

8 Federal share of the expenditure of such State for fiscal

9 year 1972 for vocational rehabilitation services under the

10 plan for such State approved under section 101 as in ef11 fect for such year (including any amount expended by such

12 State for the administration of the State plan but exclud13 ing any amount expended by such State from non-Federal

14 sources for construction under such plan), such State shall

15 be entitled to an additional payment for such fiscal year,

16 subject to the same terms and conditions applicable to

17 other payments under this part, equal to the difference

18 between such the payment pursuant to this section and

19 an amount equal to the applicable Federal share of such

20 expenditure for vocational rehabilitation services.

21 ‘‘(3) Any payment attributable to the additional pay22 ment to a State under this subsection shall be made only

23 from appropriations specifically made to carry out this

24 subsection, and such additional appropriations are hereby

25 authorized.’’.
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1 Subtitle B—Other Amendments to

2 Rehabilitation Act of 1973

3 SEC. 521. TRAINING AND DEMONSTRATION PROJECTS.

4 (a) IN GENERAL.—Effective October 1, 1995, the

5 Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is

6 amended—

7 (1) in title III—

8 (A) by striking section 303;

9 (B) by striking section 304;

10 (C) in section 311, by subsection (f);

11 (D) by striking section 312; and

12 (E) by striking section 316;

13 (2)(A) by transferring subsection (a) of section

14 802 from the current placement of the subsection;

15 (B) by redesignating such subsection as sub16 section (f); and

17 (C) by inserting such section at the end of sec18 tion 311 (as amended by paragraph (1)(C) of this

19 subsection);

20 (3)(A) by transferring subsection (g) of section

21 802 from the current placement of the subsection;

22 (B) by redesignating such subsection as sub23 section (g); and
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1 (C) by inserting such section at the end of sec2 tion 311 (as amended by paragraph (2)(C) of this

3 subsection);

4 (4)(A) by transferring subsection (b) of section

5 803 from the current placement of the subsection;

6 (B) by redesignating such subsection as sub7 section (j); and

8 (C) by inserting such section at the end of sec9 tion 302; and

10 (5) by striking the remaining provisions of title

11 VIII.

12 (b) SECTION 311(c).—Effective October 1, 1997, sec13 tion 311 of the Rehabilitation Act of 1973 (29 U.S.C.

14 777a), as amended by subsection (a) of this subsection,

15 is amended—

16 (1) by striking subsection (c); and

17 (2) by redesignating subsections (d) through (g)

18 as subsections (c) through (f), respectively.

19 SEC. 522. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS

20 WITH DISABILITIES.

21 (a) IN GENERAL.—Effective October 1, 1995, title VI

22 of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.)

23 is amended—

24 (1) by striking part A;

25 (2) by striking part C;
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1 (3) by striking part D; and

2 (4) in part B, by striking the part designation

3 and heading.

4 (b) PROJECTS WITH INDUSTRY.—Effective October

5 1, 1997, title VI of the Rehabilitation Act of 1973, as

6 amended by subsection (a) of this section, is repealed.

7 TITLE VI—AMENDMENTS TO THE

8 HIGHER EDUCATION ACT OF

9 1965

10 SEC. 601. PURPOSE OF TITLE.

11 The purpose of this title is to provide for the ces12 sation of Federal sponsorship of two Government spon13 sored enterprises, the Student Loan Marketing Associa14 tion and the College Construction Loan Insurance Asso15 ciation now that both corporations are economically viable

16 and have successfully fulfilled the purposes for which they

17 were created.

18 Subtitle A—Student Loan

19 Marketing Association

20 SEC. 611. REORGANIZATION OF THE STUDENT LOAN MAR21 KETING ASSOCIATION THROUGH THE FOR22 MATION OF A HOLDING COMPANY.

23 (a) AMENDMENT.—Part B of title IV of the Higher

24 Education Act of 1965 (20 U.S.C. 1071 et seq. (1988))
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1 is amended by inserting after section 439 (20 U.S.C.

2 1087–2) the following new section:

3 ‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MAR4 KETING ASSOCIATION THROUGH THE FOR5 MATION OF A HOLDING COMPANY.

6 ‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DI7 RECTORS.—The Board of Directors of the Association

8 shall take or cause to be taken all such action as it deems

9 necessary or appropriate to effect, upon the shareholder

10 approval described in subsection (b), a restructuring of the

11 common stock ownership of the Association, as set forth

12 in a plan of reorganization adopted by the Board of Direc13 tors (the terms of which shall be consistent with this Act)

14 so that all of the outstanding common shares shall be di15 rectly owned by an ordinary business corporation char16 tered under State or District of Columbia law (the ‘Hold17 ing Company’), as the Board of Directors may determine.

18 Such actions may include, in the Board’s discretion, a

19 merger of a wholly owned subsidiary of the Holding Com20 pany with and into the Association, which would have the

21 effect provided in the plan of reorganization and the law

22 of the jurisdiction in which such subsidiary is incor23 porated. As part of the restructuring, the Board of Direc24 tors may cause (1) the common shares of the Association

25 to be converted, at the reorganization effective date, to
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1 common shares of the Holding Company on a one for one

2 basis, consistent with applicable State or District of Co3 lumbia law, and (2) Holding Company common shares to

4 be registered with the Securities and Exchange Commis5 sion.

6 ‘‘(b) SHAREHOLDER APPROVAL.—The plan of reor7 ganization adopted by the Board of Directors pursuant to

8 subsection (a) shall be submitted to common stockholders

9 of the Association for their approval. The reorganization

10 shall occur at the reorganization effective date, provided

11 that the plan of reorganization has been approved by the

12 affirmative votes, cast in person or by proxy, of the holders

13 of a majority of the issued and outstanding shares of the

14 Association common stock.

15 ‘‘(c) TRANSITION.—

16 ‘‘(1) IN GENERAL.—Except as specifically pro17 vided in this section, until the dissolution date the

18 Association shall continue to have all of the rights,

19 privileges and obligations set forth in, and shall be

20 subject to all of the limitations and restrictions of,

21 section 439 of this Act as in effect on the effective

22 date of this section. The Holding Company and its

23 affiliates other than the Association shall not be en24 titled to any of the rights, privileges and obligations,

25 and shall not be subject to the limitations and re-
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1 strictions, applicable to the Association under section

2 439 of this Act as in effect on the effective date of

3 this section, except as specifically provided in this

4 section.

5 ‘‘(2) TRANSFER OF CERTAIN PROPERTY.—Ex6 cept as specifically provided in this section, at the

7 reorganization effective date or as soon as prac8 ticable thereafter, the Association shall use its best

9 efforts to transfer to the Holding Company or its

10 subsidiaries (or both), in each case, as directed by

11 the Holding Company, all real and personal property

12 of the Association (both tangible and intangible)

13 other than the remaining property. Without limiting

14 the preceding sentence, such transferred property

15 shall include all right, title and interest in (A) direct

16 or indirect subsidiaries of the Association (excluding

17 any interest in any government sponsored enter18 prise), (B) contracts, leases, and other agreements,

19 (C) licenses and other intellectual property, and (D)

20 any other property of the Association. Notwithstand21 ing the preceding provisions of this paragraph, noth22 ing in this paragraph shall be construed to prohibit

23 the Association from transferring remaining prop24 erty from time to time to the Holding Company or
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1 its subsidiaries, subject to the provisions of para2 graph (4).

3 ‘‘(3) TRANSFER OF PERSONNEL.—At the reor4 ganization effective date, employees of the Associa5 tion shall become employees of the Holding Com6 pany (or of the subsidiaries), and the Holding Com7 pany (or the subsidiaries or both) shall provide all

8 necessary and appropriate management and oper9 ational support (including loan servicing) to the As10 sociation, as requested by the Association. The Asso11 ciation may, however, obtain such management and

12 operational support from other persons or entities.

13 ‘‘(4) DIVIDENDS.—The Association may pay

14 dividends in the form of cash or noncash distribu15 tions so long as at the time of the declaration of

16 such dividends, after giving effect to the payment of

17 such dividends as of the date of such declaration by

18 the Board of Directors of the Association, the Asso19 ciation’s capital would be in compliance with the

20 capital standards set forth in section 439(r) of this

21 Act. If, at any time after the reorganization effective

22 date, the Association fails to comply with such cap23 ital standards, the Holding Company shall be obli24 gated to transfer to the Association additional cap25 ital in such amounts as are necessary to ensure that
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1 the Association again complies with the capital

2 standards, but not to exceed that amount received

3 by the Holding Company as dividends during the 6-

4 month period immediately preceding such failure.

5 ‘‘(5) VALUATION OF NONCASH DISTRIBU6 TIONS.—After the reorganization effective date, any

7 distribution of noncash assets by the Association to

8 the Holding Company shall be valued at book value

9 on the date the Association’s Board of Directors ap10 proved such distribution for purposes of calculating

11 compliance with section 439(r) of this Act.

12 ‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIV13 ITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—

14 After the reorganization effective date, the Associa15 tion shall not engage in any new business activities

16 or acquire any additional assets other than—

17 ‘‘(A) prior to the last day of the 36th full

18 calendar month immediately following the reor19 ganization effective date in connection with con20 tractual commitments for future student loan

21 purchases or warehousing advances or pursuant

22 to letters of credit or standby bond purchase

23 agreements, in either case which are outstand24 ing as of the reorganization effective date;
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1 ‘‘(B) in connection with its serving as a

2 lender-of-last-resort pursuant to section 439 of

3 this Act; and

4 ‘‘(C) in connection with its purchase of

5 loans insured under this part, if the Secretary,

6 with the approval of the Secretary of the Treas7 ury, requests the Association to continue or re8 sume its secondary market purchase program

9 because the Secretary determines there is inad10 equate liquidity for loans made under this part,

11 the Secretary is authorized to enter into agree12 ments with the Association covering these addi13 tional secondary market activities.

14 Any agreement entered into under subparagraph (C)

15 shall cover a period of 12 months, but may be re16 newed if the Secretary determines that liquidity re17 mains inadequate. The fee provided under section

18 439(h)(7) shall not apply to loans acquired under

19 any such agreement with the Secretary.

20 ‘‘(7) RESTRICTIONS ON ADDITIONAL INDEBTED21 NESS OF THE ASSOCIATION; ATTRIBUTES OF DEBT

22 OBLIGATIONS.—After the reorganization effective

23 date, the Association shall not incur indebtedness

24 which at any given time would exceed the aggregate

25 book value of its assets, to the extent such assets are
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1 permitted to be held under this subsection. The As2 sociation shall not issue new debt obligations after

3 the last day of the 36th full calendar month imme4 diately following the reorganization effective date,

5 except in connection with its serving as a lender-of6 last-resort pursuant to section 439 of this Act or

7 with purchasing loans under an agreement with the

8 Secretary described in section 440(c)(6). Notwith9 standing the foregoing, nothing in this subsection

10 shall in any way whatsoever modify the attributes

11 accorded the debt obligations of the Association by

12 section 439 of this Act, regardless of whether such

13 debt obligations are incurred (A) prior to the reorga14 nization effective date, (B) after the reorganization

15 effective date and prior to the last day of the 36th

16 month period described above, or (C) after any such

17 obligations are transferred to a trust in accordance

18 with subsection (d).

19 ‘‘(8) MONITORING OF SAFETY AND SOUND20 NESS.—

21 ‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN,

22 AND REPORT INFORMATION.—The Association

23 shall obtain such information and make and

24 keep such records as the Secretary of the

25 Treasury may from time to time prescribe con-
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1 cerning the Association’s policies, procedures,

2 or systems for monitoring and controlling finan3 cial risk to it resulting from the activities of

4 any of its associated persons, to the extent such

5 activities are reasonably likely to have a mate6 rial impact on the financial condition of the As7 sociation, including its capital ratio, its liquid8 ity, or its ability to conduct and finance its op9 erations, except that the Association’s obliga10 tions under this subsection with respect to any

11 associated person which is a third party servicer

12 (as defined in 34 C.F.R. 682.200(b)) shall be

13 limited to providing to the Secretary of the

14 Treasury copies of any reports or other infor15 mation provided to the Secretary of Education

16 pursuant to 34 C.F.R. 682.200 et seq. The Sec17 retary of the Treasury may require summary

18 reports of such information to be filed no more

19 frequently than quarterly. For purposes of this

20 paragraph, the term ‘associated person’ shall

21 mean any person, other than a natural person,

22 directly or indirectly controlling, controlled by,

23 or under common control with the Association.

24 ‘‘(B) MAINTENANCE OF SEPARATE ENTI25 TIES.—After the reorganization effective date,
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1 the Holding Company and other corporate af2 filiates of the Association shall take all reason3 able actions to—

4 ‘‘(i) preserve the separate corporate

5 identities of each company within the hold6 ing company structure for purposes of any

7 legal or equitable proceeding that could in8 volve the Association, including the mainte9 nance of separate books and records and

10 the separation of the funds and assets of

11 the separate entities;

12 ‘‘(ii) maintain arms length relation13 ships between the Association and its cor14 porate affiliates; and

15 ‘‘(iii) maintain independent manage16 ment between the Association and Holding

17 Company and its other subsidiaries, includ18 ing the disqualification of at least one offi19 cer of the Association from serving as an

20 officer or employee of the Holding Com21 pany or such other subsidiaries.

22 ‘‘(C) ENCUMBRANCE OF ASSETS.—Not23 withstanding any otherwise applicable Federal

24 or State law, rule, or regulation, or legal or eq25 uitable principle, doctrine, or theory to the con-
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1 trary, under no circumstances shall the assets

2 of—

3 ‘‘(i) the Association be available or

4 used to pay claims or debts of or incurred

5 by the Holding Company; or

6 ‘‘(ii) the Holding Company be avail7 able or used to pay claims or debts of or

8 incurred by the Association.

9 Nothing in this subparagraph shall limit the

10 right of the Association to pay dividends not

11 otherwise prohibited hereunder or limit any li12 ability of the Holding Company explicitly pro13 vided for in this part.

14 ‘‘(9) ASSOCIATION BOARD OF DIRECTORS.—

15 Notwithstanding any other provision of part B of

16 this title, after the reorganization effective date, the

17 14 directors of the Association elected by the Asso18 ciation’s stockholders (which immediately after the

19 reorganization effective date shall be the Holding

20 Company) shall no longer be required to meet the

21 eligibility requirements set forth in section 439(c).

22 ‘‘(10) ISSUANCE OF STOCK WARRANTS.—At the

23 reorganization effective date, the Holding Company

24 shall issue to the Secretary of the Treasury 100,000

25 stock warrants, each entitling the holder of the stock
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1 warrant to purchase from the Holding Company one

2 share of the registered common stock of the Holding

3 Company at any time on or before December 31,

4 2004. The exercise price for such warrants shall be

5 an amount equal to (A) the average closing price

6 of the common stock of the Association for the 20

7 business days prior to and including the date of en8 actment of this section on the exchange or market

9 which is then the primary exchange or market for

10 the common stock of the Association, plus (B) 10

11 percent of the average price described in clause (A)

12 subject to any adjustments necessary to reflect the

13 conversion of Association common stock into Hold14 ing Company common stock as part of the plan of

15 reorganization approved by the Association’s share16 holders.

17 ‘‘(11) RESTRICTIONS ON TRANSFER OF ASSO18 CIATION SHARES AND BANKRUPTCY OF ASSOCIA19 TION.—After the reorganization effective date, the

20 Holding Company shall not sell, pledge, or otherwise

21 transfer the outstanding shares of the Association,

22 or agree to or cause the Association to file bank23 ruptcy, without prior approval of the Secretary of

24 the Treasury; except, that such approval shall not be

25 withheld if, after giving effect to such event, the
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1 safety and soundness provisions of section 439(r)

2 are maintained.

3 ‘‘(d) DISCHARGE OF REMAINING OBLIGATIONS, LIQ4 UIDATION AND DISSOLUTION OF THE ASSOCIATION.—The

5 Association shall dissolve and its separate existence shall

6 terminate on December 31, 2004, after discharge of its

7 remaining obligations and liquidation pursuant to this

8 subsection. The Association may dissolve pursuant to this

9 subsection prior to December 31, 2004 by notifying the

10 Secretary of Education of its intention to dissolve, unless

11 within 60 days of receipt of such notice the Secretary noti12 fies the Association that it continues to be needed to serve

13 as a lender of last resort pursuant to section 439(q) of

14 this Act or continues to be needed to purchase loans under

15 an agreement with the Secretary described in section

16 440(c)(6). On the dissolution date, the Association shall

17 take the following actions:

18 ‘‘(1) ESTABLISHMENT OF A TRUST.—The Asso19 ciation shall, under the terms of an irrevocable trust

20 agreement in form and substance satisfactory to the

21 Association and the appointed trustee, irrevocably

22 transfer the remaining obligations to the trust and

23 irrevocably deposit or cause to be deposited into

24 such trust the following assets, as trust funds solely
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1 for the benefit of holders of the remaining obliga2 tions—

3 ‘‘(A) money or noncallable obligations of or

4 guaranteed by the United States of America or

5 any agency thereof for which payment the full

6 faith and credit of the United States is pledged,

7 maturing as to principal and interest in such

8 amounts and at such times as are sufficient

9 without consideration of any significant rein10 vestment of such interest to pay the principal of

11 and interest on such remaining obligations to

12 stated maturity,

13 ‘‘(B) securities or financial assets (which

14 may include student loans) in such amounts

15 and of such kind as to ensure the highest credit

16 rating from a nationally recognized bond rating

17 agency for such trust, and as to which the

18 Holding Company shall agree to take all actions

19 necessary to maintain such rating, or

20 ‘‘(C) a combination of subparagraphs (A)

21 and (B).

22 All money, obligations, or financial assets deposited

23 into the trust pursuant to this subsection shall be

24 applied by the trustee to the payment of the obliga25 tions assumed by the trust. Upon the fulfillment of
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1 the trustee’s obligations under the trust, any re2 maining assets of the trust shall be transferred to

3 the Holding Company or its subsidiaries, or both,

4 as directed by the Holding Company. To the extent

5 that such money, obligations, and financial assets

6 are insufficient to pay the obligations assumed by

7 the trust at the time such obligations become due,

8 the Holding Company shall agree to fully and un9 conditionally guarantee the payment of such obliga10 tions.

11 ‘‘(2) OBLIGATIONS NOT TRANSFERRED TO THE

12 TRUST.—The Association shall make proper provi13 sion under applicable State law (which, in the ab14 sence of any other applicable law shall be deemed

15 the District of Columbia law) for all other obliga16 tions of the Association (including the repurchase or

17 redemption or the making of proper provision for the

18 repurchase or redemption on or prior to December

19 31, 2004 of any preferred stock of the Association

20 then outstanding).

21 ‘‘(3) TRANSFER OF REMAINING ASSETS AND LI22 ABILITIES.—The Association shall transfer to the

23 Holding Company or its subsidiaries, or both, as di24 rected by the Holding Company, all remaining assets
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1 and liabilities of the Association not deposited in the

2 trust.

3 ‘‘(e) OPERATION OF THE HOLDING COMPANY.—

4 ‘‘(1) HOLDING COMPANY BOARD OF DIREC5 TORS.—The number and composition of the Board

6 of Directors of the Holding Company shall be deter7 mined as set forth in the Holding Company’s charter

8 or like instrument (as amended from time to time)

9 or bylaws (as amended from time to time) and as

10 permissible under the laws of the jurisdiction of its

11 incorporation.

12 ‘‘(2) HOLDING COMPANY NAME.—The names of

13 the Holding Company and any direct or indirect

14 subsidiary of the Holding Company other than the

15 Association (A) may not contain the name ‘Student

16 Loan Marketing Association’, and (B) may contain

17 (to the extent permitted by the applicable State or

18 District of Columbia law), ‘Sallie Mae’, or variations

19 thereof or such other name as the Board of Direc20 tors of the Association or the Holding Company

21 shall deem appropriate.

22 ‘‘(f) STRICT CONSTRUCTION.—Except as specifically

23 set forth in this section, nothing contained in this section

24 shall be construed to limit the authority of the Association

25 as a federally chartered corporation, or of the Holding
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1 Company as a State or District of Columbia chartered cor2 poration.

3 ‘‘(g) DEADLINE FOR REORGANIZATION EFFECTIVE

4 DATE.—This section shall be of no further force and effect

5 in the event that the reorganization effective date does not

6 occur on or before 18 months after the date of enactment

7 of this section.

8 ‘‘(h) DEFINITIONS.—For purposes of this section—

9 ‘‘(1) The term ‘Association’ means the Student

10 Loan Marketing Association.

11 ‘‘(2) The term ‘dissolution date’ shall mean De12 cember 31, 2004, or such earlier date as the Sec13 retary of Education permits the transfer of remain14 ing obligations in accordance with subsection (d) of

15 this section.

16 ‘‘(3) The term ‘reorganization effective date’

17 means the effective date of the reorganization as de18 termined by the Board of Directors of the Associa19 tion, which shall not be earlier than the date that

20 stockholder approval is obtained pursuant to sub21 section (b) of this section and shall not be later than

22 the date that is 18 months after the date of enact23 ment of this section.

24 ‘‘(4) The term ‘Holding Company’ means the

25 new business corporation formed pursuant to this
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1 section by the Association under the laws of any

2 State of the United States or the District of Colum3 bia.

4 ‘‘(5) The term ‘remaining obligations’ shall

5 mean the debt obligations of the Association out6 standing as of the dissolution date.

7 ‘‘(6) The term ‘remaining property’ shall mean

8 the following assets and liabilities of the Association

9 which are outstanding as of the reorganization effec10 tive date: (A) debt obligations issued by the Associa11 tion, (B) contracts relating to interest rate, cur12 rency, or commodity positions or protections, (C) in13 vestment securities owned by the Association, (D)

14 any instruments, assets, or agreements described in

15 section 439(d) of this Act (including without limita16 tion all student loans, forward purchase and lending

17 commitments, warehousing advances, academic fa18 cilities obligations, letters of credit, standby bond

19 purchase agreements, liquidity agreements, and stu20 dent loan revenue bonds or other loans), and (E) ex21 cept as specifically prohibited by this Act, any other

22 nonmaterial assets or liabilities of the Association

23 which the Association’s Board of Directors deter24 mines to be necessary or appropriate to its oper25 ations.
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1 ‘‘(7) The term ‘reorganization’ means the re2 structuring event or events (including any merger

3 event) giving effect to the holding company structure

4 described in subsection (a) of this section.

5 ‘‘(8) The term ‘subsidiaries’ shall mean one or

6 more direct or indirect subsidiaries of the Holding

7 Company.’’.

8 (b) TECHNICAL AMENDMENTS.—

9 (1) AMENDMENTS TO THE HIGHER EDUCATION

10 ACT.—Effective on the reorganization effective date

11 (as defined in section 440(h)(3) of the Higher Edu12 cation Act of 1965, as added by subsection (a)), sec13 tions 435(d)(1)(F) and (G) and 428C(a)(1)(A) of

14 such Act (20 U.S.C. 1085(d)(1)(F), (G); 1078–

15 3(a)(1)(A)) are each amended by inserting after

16 ‘‘Student Loan Marketing Association’’ the follow17 ing: ‘‘or the Holding Company of the Student Loan

18 Marketing Association, including all subsidiaries of

19 such Holding Company, created pursuant to section

20 440 of this Act,’’.

21 (2) REPEAL OF THE ASSOCIATION’S CHAR22 TER.—Effective on the dissolution date (as defined

23 in section 440(h)(2) of the Higher Education Act of

24 1965, as added by subsection (a)), section 439 of
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1 the Higher Education Act of 1965 (20 U.S.C. 1087–

2 2) is repealed.

3 Subtitle B—College Construction

4 Loan Insurance Association

5 SEC. 621. PRIVATIZATION OF COLLEGE CONSTRUCTION

6 LOAN INSURANCE ASSOCIATION.

7 (a) REPEAL OF STATUTORY RESTRICTIONS.—Part D

8 of title VII of the Higher Education Act of 1965 (20

9 U.S.C. 1132f et seq.) is repealed.

10 (b) STATUS OF THE CORPORATION.—

11 (1) STATUS OF THE CORPORATION.—The Cor12 poration shall not be an agency, instrumentality, or

13 establishment of the United States Government and

14 shall not be a ‘‘Government corporation’’ nor a

15 ‘‘Government controlled corporation’’ as defined in

16 section 103 of title 5, United States Code. No action

17 under section 1491 of title 28, United States Code

18 (commonly known as the Tucker Act) shall be allow19 able against the United States based on the actions

20 of the Corporation.

21 (2) CORPORATE POWERS.—The Corporation

22 shall have the power to engage in any business or

23 other activities for which corporations may be orga24 nized under the laws of any State of the United

25 States or the District of Columbia. The Corporation
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1 shall have the power to enter into contracts, to exe2 cute instruments, to incur liabilities, to provide prod3 ucts and services, and to do all things as are nec4 essary or incidental to the proper management of its

5 affairs and the efficient operation of a private, for6 profit business.

7 (c) RELATED PRIVATIZATION REQUIREMENTS.—

8 (1) NOTICE REQUIREMENTS.—During the 5-

9 year period following the date of the enactment of

10 this Act, the Corporation shall include in any docu11 ment offering the Corporation’s securities a state12 ment that—

13 (A) the Corporation is not a Government14 sponsored enterprise or instrumentality of the

15 United States; and

16 (B) the Corporation’s obligations are not

17 guaranteed by the full faith and credit of the

18 United States.

19 (2) CORPORATE CHARTER.—The Corporation’s

20 charter shall be amended as necessary and without

21 delay to conform the requirements of this Act.

22 (3) CORPORATE NAME.—The name of the Cor23 poration, or of any direct or indirect subsidiary

24 thereof, may not contain the term ‘‘College Con25 struction Loan Insurance Association’’.
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1 (4) ARTICLES OF INCORPORATION.—The Cor2 poration shall amend its articles of incorporation

3 without delay to reflect that one of the purposes of

4 the Corporation shall be to guarantee, insure and re5 insure bonds, leases, and other evidences of debt of

6 educational institutions, including Historically Black

7 Colleges and Universities and other academic insti8 tutions which are ranked in the lower investment

9 grade category using a nationally recognized credit

10 rating system.

11 (5) TRANSITION REQUIREMENTS.—

12 (A) REQUIREMENTS UNTIL STOCK SALE.—

13 Notwithstanding subsection (a), the require14 ments of section 754 of the Higher Education

15 Act of 1965 (20 U.S.C. 1132f–3), as in exist16 ence as of the day before enactment of this Act,

17 shall continue to be effective until the day im18 mediately following the date of closing of the

19 purchase of the Secretary’s stock (or the date

20 of closing of the final purchase, in the case of

21 multiple transactions) pursuant to subsection

22 (d) of this section.

23 (B) REPORTS AFTER STOCK SALE.—The

24 Corporation shall, not later than March 30 of

25 the first full calendar year immediately follow-
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1 ing the sale pursuant to subsection (d), and

2 each of the 2 succeeding years, submit to the

3 Secretary of Education a report describing the

4 Corporation’s efforts to assist in the financing

5 of education facilities projects, including

6 projects for elementary, secondary, and post7 secondary educational institution infrastructure,

8 and detailing, on a project-by-project basis, the

9 Corporation’s business dealings with edu10 cational institutions that are rated by a nation11 ally recognized statistical rating organization at

12 or below the organization’s third highest rat13 ings.

14 (d) SALE OF FEDERALLY OWNED STOCK.—

15 (1) SALE OF STOCK REQUIRED.—The Secretary

16 of the Treasury shall, upon the request of the Sec17 retary of Education sell, pursuant to section 324 of

18 title 31, United States Code, the voting common

19 stock of the Corporation owned by the Secretary of

20 Education not later than one year after the date of

21 the enactment of this Act.

22 (2) PURCHASE BY THE CORPORATION.—In the

23 event that the Secretary of the Treasury is unable

24 to sell the voting common stock, or any portion

25 thereof, at a price acceptable to the Secretary of
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1 Education and the Secretary of the Treasury within

2 the period specified in paragraph (1), the Corpora3 tion shall purchase such stock at a price determined

4 by the Secretary of the Treasury and acceptable to

5 the Corporation based on independent appraisal by

6 one or more nationally recognized financial advisory

7 firms. Such firms shall be selected by the Secretary

8 of the Treasury in consultation with the Secretary of

9 Education and the Corporation.

10 (3) REIMBURSEMENT OF COSTS OF SALE.—The

11 Secretary of the Treasury shall be reimbursed from

12 the proceeds of the sale of the stock under this sec13 tion for all reasonable costs of any contracts related

14 to such sale, including all reasonable expenses relat15 ing to one or more independent appraisals under this

16 section.

17 (e) ASSISTANCE BY THE CORPORATION.—The Cor18 poration shall provide such assistance as the Secretary of

19 the Treasury and the Secretary of Education may require

20 to facilitate the sale of the stock under this section.

21 (f) DEFINITION.—As used in this section, the term

22 ‘‘Corporation’’ means the Corporation established pursu23 ant to the provision of law repealed by subsection (a).
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1 TITLE VII—REPEALERS AND

2 OTHER AMENDMENTS.

3 SEC. 701. CARL D. PERKINS VOCATIONAL AND APPLIED

4 TECHNOLOGY EDUCATION ACT.

5 The Carl D. Perkins Vocational and Applied Tech6 nology Education Act (20 U.S.C. 2301 et seq.) is repealed.

7 SEC. 702. SCHOOL-TO-WORK OPPORTUNITIES ACT.

8 The School-to-Work Opportunities Act of 1994 (20

9 U.S.C. 6101 et seq.) is repealed.

10 SEC. 703. ADULT EDUCATION ACT.

11 (a) IN GENERAL.—The Adult Education Act (20

12 U.S.C. 1201 et seq.) is repealed.

13 (b) CONFORMING AMENDMENTS.—

14 (1) ESEA.—The Elementary and Secondary

15 Education Act of 1965 (20 U.S.C. 6301 et seq.) is

16 amended—

17 (A) in section 1202(c)(1), by striking ‘‘the

18 Adult Education Act,’’ and inserting ‘‘title IV

19 of the CAREERS Act,’’;

20 (B) in section 1205(8)(B), by striking ‘‘the

21 Adult Education Act,’’ and inserting ‘‘title IV

22 of the CAREERS Act,’’;

23 (C) in section 1206(a)(1)(A), by striking

24 ‘‘the Adult Education Act;’’ and inserting ‘‘title

25 IV of the CAREERS Act;’’; and
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1 (D) in section 9161(2), by striking ‘‘sec2 tion 312(2) of the Adult Education Act.’’ and

3 inserting ‘‘section 5 of the CAREERS Act.’’.

4 (2) TECHNOLOGY FOR EDUCATION ACT.—The

5 Technology for Education Act of 1994 (20 U.S.C.

6 6801 et seq.) is amended in section 3113(1) by

7 striking ‘‘section 312 of the Adult Education Act;’’

8 and inserting ‘‘section 5 of the CAREERS Act;’’;

9 SEC. 704. NATIONAL LITERACY ACT.

10 The National Literacy Act of 1991, except section

11 101 of such Act, is repealed.

12 SEC. 705. LIBRARY SERVICES AND CONSTRUCTION ACT.

13 (a) IN GENERAL.—The Library Services and Con14 struction Act (20 U.S.C. 351 et seq.) is repealed.

15 (b) CONFORMING AMENDMENT.—The Technology for

16 Education Act of 1994 (20 U.S.C. 6801 et seq.) is amend17 ed in section 3113(10) by striking ‘‘section 3 of the Li18 brary Services and Construction Act;’’ and inserting ‘‘sec19 tion 5 of the CAREERS Act;’’.

20 SEC. 706. TECHNOLOGY FOR EDUCATION ACT OF 1994.

21 Sections 3601 through 3605 of the Technology for

22 Education Act of 1994 (20 U.S.C. 7001 et seq.) (relating

23 to the library media resources program) are repealed.
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1 SEC. 707. JOB TRAINING PARTNERSHIP ACT.

2 (a) IN GENERAL.—The Job Training Partnership

3 Act (29 U.S.C. 1501 et seq.), except sections 421 through

4 439 and section 441 of such Act (29 U.S.C. 1691 et seq.)

5 (relating to the Job Corps), is hereby repealed.

6 (b) CONFORMING AMENDMENTS TO JOB CORPS.—

7 The Job Training Partnership Act (29 U.S.C. 1501 et

8 seq.) is amended—

9 (1) by redesignating sections 421 through 439

10 as sections 1 through 20, respectively;

11 (2) in section 1 (as redesignated), by striking

12 ‘‘part’’ each place it appears and inserting ‘‘Act’’;

13 (3) in section 3(4) (as redesignated), by strik14 ing ‘‘sections 424 and 425’’ and inserting ‘‘sections

15 4 and 5’’;

16 (4) in section 4 (as redesignated)—

17 (A) in subsection (a), by striking ‘‘entities

18 administering programs under title II of this

19 Act,’’; and

20 (B) in subsection (b), by striking ‘‘part’’

21 and inserting ‘‘Act’’;

22 (5) in section 6 (as redesignated)—

23 (A) in subsection (a), by striking ‘‘section

24 428’’ and inserting ‘‘section 8’’; and

25 (B) by striking subsection (d);

26 (6) in section 7 (as redesignated)—
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1 (A) by striking subsection (b); and

2 (B) by redesignating subsection (c) as sub3 section (b);

4 (7) in section 13 (as redesignated)—

5 (A) in subsection (a)(4), by striking ‘‘part’’

6 and inserting ‘‘Act’’;

7 (B) in subsection (c)(1), by striking ‘‘and

8 activities authorized under sections 452 and

9 453’’; and

10 (C) in subsection (e), by striking ‘‘section

11 431’’ and inserting ‘‘section 11’’;

12 (8) in section 14 (as redesignated)—

13 (A) in subsection (a)—

14 (i) in the matter preceding paragraph

15 (1), by striking ‘‘section 427’’ and insert16 ing ‘‘section 7’’; and

17 (ii) in paragraph 4(A), by striking

18 ‘‘section 428’’ and inserting ‘‘section 8’’;

19 (B) in subsection (c)(3), by striking ‘‘sec20 tion 423’’ and inserting ‘‘section 3’’;

21 (C) in subsection (d), by striking ‘‘sections

22 424 and 425’’ and inserting ‘‘sections 4 and 5’’;

23 and

24 (D) in subsection (e), by striking ‘‘, pursu25 ant to section 452(d),’’;
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1 (9) in section 16 (as redesignated), by striking

2 ‘‘part’’ each place it appears and inserting ‘‘Act’’;

3 (10) in section 19 (as redesignated), by striking

4 ‘‘part’’ each place it appears and inserting ‘‘Act’’;

5 (11) in section 20 (as redesignated), by striking

6 ‘‘part’’ and inserting ‘‘Act’’; and

7 (12) by adding at the end the following new

8 section:

9 ‘‘AUTHORIZATION OF APPROPRIATIONS

10 ‘‘SEC. 21. There are authorized to be appropriated

11 such sums as are necessary to carry out this Act.’’.

12 SEC. 708. STEWART B. McKINNEY HOMELESS ASSISTANCE

13 ACT.

14 (a) ADULT EDUCATION.—Section 702 of the Stewart

15 B. McKinney Homeless Assistance Act (42 U.S.C. 11421)

16 is repealed.

17 (b) SUBTITLE C.—

18 (1) IN GENERAL.—Subtitle C of title VII of the

19 Stewart B. McKinney Homeless Assistance Act (42

20 U.S.C. 11441 et seq.), except section 738, is hereby

21 repealed.

22 (2) TABLE OF CONTENTS.—The table of con23 tents of such Act is amended by striking the items

24 relating to sections 731 through 737 and sections

25 739 through 741.
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1 SEC. 709. HIGHER EDUCATION PROVISIONS.

2 (a) HIGHER EDUCATION ACT OF 1965 PROVI3 SIONS.—The following provisions of the Higher Education

4 Act of 1965 are repealed:

5 (1) Part B of title I (20 U.S.C. 1011 et seq.),

6 relating to articulation agreements.

7 (2) Part C of title I (20 U.S.C. 1015 et seq.),

8 relating to access and equity to education for all

9 Americans through telecommunications.

10 (3) Title II (20 U.S.C. 1021 et seq.), relating

11 to academic libraries and information services.

12 (4) Chapter 2 of subpart 2 of part A of title IV

13 (20 U.S.C. 1070a–21 et seq.), relating to national

14 early intervention scholarships.

15 (5) Chapter 3 of subpart 2 of part A of title IV

16 (20 U.S.C. 1070a–31 et seq.), relating to presi17 dential access scholarships.

18 (6) Chapter 4 of subpart 2 of part A of title IV

19 (20 U.S.C. 1070a–41 et seq.), relating to model pro20 gram community partnerships and counseling

21 grants.

22 (7) Chapter 5 of subpart 2 of part A of title IV

23 (20 U.S.C. 1070a–52 et seq.), relating to a database

24 and information line concerning student financial as25 sistance.
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1 (8) Chapter 8 of subpart 2 of part A of title IV

2 (20 U.S.C. 1070a–81), relating to technical assist3 ance for teachers and counselors.

4 (9) Subpart 4 of part A of title IV (20 U.S.C.

5 1070c et seq.), relating to State student incentive

6 grants.

7 (10) Subpart 5 of part A of title IV of the

8 Higher Education Act of 1965 (20 U.S.C. 1070d–

9 2).

10 (11) Subpart 8 of part A of title IV (20 U.S.C.

11 1070f), relating to special child care services for dis12 advantaged college students.

13 (12) Section 428J (20 U.S.C. 1078–10), relat14 ing to loan forgiveness for teachers, individuals per15 forming national community service and nurses.

16 (13) Section 486 (20 U.S.C. 1093), relating to

17 training in financial aid services.

18 (14) Subpart 1 of part H of title IV (20 U.S.C.

19 1099a et seq.) relating to State postsecondary re20 view entity programs.

21 (15) Part A of title V (20 U.S.C. 1102 et seq.),

22 relating to State and local programs for teacher ex23 cellence.

24 (16) Part B of title V (20 U.S.C. 1103 et seq.),

25 relating to national teacher academies.
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1 (17) Subpart 1 of part C of title V (20 U.S.C.

2 1104 et seq.), relating to Douglas teacher scholar3 ships.

4 (18) Subpart 3 of part C of title V (20 U.S.C.

5 1106 et seq.), relating to the teacher corps.

6 (19) Subpart 3 of part D of title V (20 U.S.C.

7 1109 et seq.), relating to class size demonstration

8 grants.

9 (20) Subpart 4 of part D of title V (20 U.S.C.

10 1110 et seq.), relating to middle school teaching

11 demonstration programs.

12 (21) Subpart 1 of part E of title V (20 U.S.C.

13 1111 et seq.), relating to new teaching careers.

14 (22) Subpart 1 of part F of title V (20 U.S.C.

15 1113 et seq.), relating to the national mini corps

16 programs.

17 (23) Section 586 (20 U.S.C. 1114), relating to

18 demonstration grants for critical language and area

19 studies.

20 (24) Section 587 (20 U.S.C. 1114a), relating to

21 development of foreign languages and cultures in22 structional materials.

23 (25) Subpart 3 of part F of title V (20 U.S.C.

24 1115), relating to small State teaching initiatives.
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1 (26) Subpart 4 of part F of title V (20 U.S.C.

2 1116), relating to faculty development grants.

3 (27) Subpart 5 of part F of title V (20 U.S.C.

4 1117), relating to early childhood staff training and

5 professional enhancement.

6 (28) Section 605 (20 U.S.C. 1124a), relating to

7 intensive summer language institutes.

8 (29) Section 607 (20 U.S.C. 1125a), relating to

9 foreign language periodicals.

10 (30) Part A of title VII (20 U.S.C. 11326 et

11 seq.), relating to academic and library facilities.

12 (31) Title VIII (20 U.S.C. 1133 et seq.), relat13 ing to cooperative education programs.

14 (32) Part A of title IX (20 U.S.C. 1134a et

15 seq.), relating to women and minority participation

16 in graduate education.

17 (33) Part B of title IX (20 U.S.C. 1134d et

18 seq.), relating to Harris fellowships.

19 (34) Part C of title IX (20 U.S.C. 1134h et

20 seq.), relating to Javits fellowships.

21 (35) Part E of title IX (20 U.S.C. 1134r et

22 seq.), relating to the faculty development fellowship

23 program.
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1 (36) Part F of title IX (20 U.S.C. 1134s et

2 seq.), relating to legal training for the disadvan3 taged.

4 (37) Part G of title IX (20 U.S.C. 1134u et

5 seq.), relating to law school clinical programs.

6 (38) Section 1011 (20 U.S.C. 1135a–11), relat7 ing to special projects in areas of national need.

8 (39) Subpart 2 of part B of title X (20 U.S.C.

9 1135c et seq.), relating to science and engineering

10 access programs.

11 (40) Part C of title X (20 U.S.C. 1135e et

12 seq.), relating to women and minorities science and

13 engineering outreach demonstration programs.

14 (41) Part D of title X (20 U.S.C. 1135f), relat15 ing to Eisenhower leadership programs.

16 (42) Title XI (20 U.S.C. 1136 et seq.), relating

17 to community service programs.

18 (b) EDUCATION AMENDMENTS OF 1986 PROVI19 SIONS.—The following provisions of the Education

20 Amendments of 1986 are repealed:

21 (1) Part E of title XIII (20 U.S.C. 1221–1

22 note), relating to a National Academy of Science

23 study.
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1 (2) Title XV (20 U.S.C. 4401 et seq.), relating

2 to American Indian, Alaska Native, and Native Ha3 waiian culture and art development.

4 (c) EDUCATION AMENDMENTS OF 1992 PROVI5 SIONS.—The following provisions of the Education

6 Amendments of 1992 are repealed:

7 (1) Part F of title XIII (25 U.S.C. 3351 et

8 seq.), relating to American Indian postsecondary

9 economic development scholarships.

10 (2) Part G of title XIII (25 U.S.C. 3371), re11 lating to American Indian teacher training.

12 (3) Section 1406 (20 U.S.C. 1221e–1 note), re13 lating to a national survey of factors associated with

14 participation.

15 (4) Section 1409 (20 U.S.C. 1132a note), relat16 ing to a study of environmental hazards in institu17 tions of higher education.

18 (5) Section 1412 (20 U.S.C. 1101 note), relat19 ing to a national job bank for teacher recruitment.

20 (6) Part B of title XV (20 U.S.C. 1452 note),

21 relating to a national clearinghouse for postsecond22 ary education materials.

23 (7) Part C of title XV (20 U.S.C. 1101 note),

24 relating to school-based decisionmakers.
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1 (8) Part D of title XV (20 U.S.C. 1145h note),

2 relating to grants for sexual offenses education.

3 (9) Part E of title XV (20 U.S.C. 1070 note),

4 relating to Olympic scholarships.

5 (10) Part G of title XV (20 U.S.C. 1070a–11

6 note), relating to advanced placement fee payment

7 programs.

8 (d) CONFORMING AMENDMENTS.—The Higher Edu9 cation Act of 1965 is amended—

10 (1) in section 453(c)(2)—

11 (A) by striking subparagraph (E); and

12 (B) by redesignating subparagraphs (F)

13 through (H) as subparagraphs (E) through (G),

14 respective;

15 (2) in section 487(a)(3), by striking subpara16 graph (B) and redesignating subparagraphs (C) and

17 (D) as subparagraphs (B) and (C), respectively;

18 (3) in section 487(a)(15), by striking ‘‘the Sec19 retary of Veterans Affairs, and State review entities

20 under subpart 1 of part H’’ and inserting ‘‘and the

21 Secretary of Veterans Affairs’’;

22 (4) in section 487(a)(21), by striking ‘‘, State

23 postsecondary review entities,’’;

24 (5) in section 487(c)(1)(A)(i), by striking

25 ‘‘State agencies, and the State review entities re-
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1 ferred to in subpart 1 of part H’’ and inserting ‘‘and

2 State agencies’’;

3 (6) in section 487(c)(4), by striking ‘‘, after

4 consultation with each State review entity designated

5 under subpart 1 of part H,’’;

6 (7) in section 487(c)(5), by striking ‘‘State re7 view entities designated under subpart 1 of part

8 H,’’;

9 (8) in section 496(a)(7), by striking ‘‘and the

10 appropriate State postsecondary review entity’’;

11 (9) in section 496(a)(8), by striking ‘‘and the

12 State postsecondary review entity of the State in

13 which the institution of higher education is located’’;

14 (10) in section 498(g)(2), by striking everything

15 after the first sentence;

16 (11) in section 498A(a)(2)(D), by striking ‘‘by

17 the appropriate State postsecondary review entity

18 designated under subpart 1 of this part or’’;

19 (12) in section 498A(a)(2)—

20 (A) by inserting ‘‘and’’ after the semicolon

21 at the end of subparagraph (E);

22 (B) by striking subparagraph (F); and

23 (C) by redesignating subparagraph (G) as

24 subparagraph (F); and

25 (13) in section 498A(a)(3)—
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1 (A) by inserting ‘‘and’’ after the semicolon

2 at the end of subparagraph (C);

3 (B) by striking ‘‘; and’’ at the end of sub4 paragraph (D) and inserting a period; and

5 (C) by striking subparagraph (E).

6 SEC. 710. EFFECTIVE DATE.

7 The repeals and amendments made by this title shall

8 take effect on October 1, 1996.

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