Union Calendar No. 70

104TH CONGRESS

1ST SESSION H. R. 1617

[Report No. 104–152]

A BILL

To consolidate and reform workforce development

and literacy programs, and for other purposes.

JUNE 22, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 70

104TH CONGRESS

1ST SESSION H. R. 1617

[Report No. 104–152]

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

JUNE 22, 1995

Additional sponsors: Mr. WELLER, Mr. HERGER, Mrs. SEASTRAND, Mr.

LINDER, Mrs. JOHNSON of Connecticut, Mr. ROGERS, Mr. GOODLATTE,

Mr. HANCOCK, and Mr. SENSENBRENNER

JUNE 22, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on May 11, 1995]
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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, Em6 ployment, and Rehabilitation Systems Act’’; or

7 (2) ‘‘CAREERS Act’’.

8 SEC. 2. TABLE OF CONTENTS.

9 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. Authorization of appropriations.

Sec. 5. Definitions.

Sec. 6. Transition.

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. Establishment of workforce development areas.

Sec. 106. Provisions regarding local workforce development boards.

Sec. 107. Establishment of one-stop career center systems.

Sec. 108. Certification of education, training, and vocational rehabilitation service providers.

Sec. 109. Management information systems.

Sec. 110. Performance accountability system.

Subtitle B—Amendments to Wagner-Peyser Act

Sec. 131. General program requirements.

Sec. 132. Labor market information.
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Subtitle C—Worker Rights

Sec. 141. Requirements.

TITLE II—YOUTH DEVELOPMENT AND CAREER PREPARATION

CONSOLIDATION GRANT

Sec. 201. Purposes.

Sec. 202. 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

Sec. 231. Partnership agreements.

Sec. 232. Distribution of funds.

CHAPTER 1—IN-SCHOOL YOUTH

Sec. 241. Uses of funds for in-school youth.

CHAPTER 2—AT-RISK YOUTH

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. Assessment and data collection of youth development and career preparation 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.
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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 AND FAMILY LITERACY CONSOLIDATION GRANT AND LIBRARY SERVICES AND TECHNOLOGY CONSOLIDATION GRANT

Sec. 401. Findings.

Sec. 402. Definitions.

Subtitle A—Adult Education and Family Literacy Consolidation Grant

Sec. 411. Purposes.

CHAPTER 1—FUNDING

Sec. 421. Reservations from amounts appropriated.

Sec. 422. Allotment.

CHAPTER 2—GRANTS TO STATES

Sec. 431. Requirement to make grants.

Sec. 432. Uses of funds.

Sec. 433. Additional grant requirements.

Sec. 434. Performance measures.

CHAPTER 3—NATIONAL PROGRAMS

Sec. 441. National Institute for Literacy.

Sec. 442. National leadership activities.

Subtitle B—Library Services and Technology Consolidation Grant

Sec. 451. Purposes.

Sec. 452. Authorization of appropriations.

Sec. 453. Allotments.

Sec. 454. Grants to States.

Sec. 455. Uses of funds.

Sec. 456. Annual applications.

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. Revision of title I.

Subtitle B—Other Amendments to Rehabilitation Act of 1973

Sec. 521. Training and demonstration projects.

Sec. 522. Employment opportunities for individuals with disabilities.
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TITLE VI—REPEALERS AND OTHER AMENDMENTS

Sec. 601. Carl D. Perkins Vocational and Applied Technology Education Act.

Sec. 602. School-to-Work Opportunities Act.

Sec. 603. Adult Education Act.

Sec. 604. National Literacy Act.

Sec. 605. Library Services and Construction Act.

Sec. 606. Technology for Education Act of 1994.

Sec. 607. Job Training Partnership Act.

Sec. 608. Stewart B. McKinney Homeless Assistance Act.

Sec. 609. 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 States

4 workforce are fundamental to the economic competi5 tiveness of the Nation today and in the future, how6 ever, the United States does not currently possess a

7 comprehensive, effective, and efficient system of

8 workforce preparation and development.

9 (2) Due to global competition, emerging tech10 nologies in the workplace, the emergence of quality

11 managing, corporate realignments, and the loss of

12 many low-skilled jobs, United States workers will in13 creasingly need to enhance their skills on a continu14 ing, lifelong basis through such a workforce prepara15 tion and development system.

16 (3) Reports from the Comptroller General of the

17 United States have identified 163 different Federal

18 programs, totaling $20,000,000,000, and administered

19 by 14 different Federal agencies, that offer some form
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1 of education, job training, or employment assistance

2 to youth and adults.

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

4 duplication and fragmentation that exist within the

5 varied Federal workforce preparation and develop6 ment programs, including—

7 (A) the additional costs of administering

8 overlapping workforce preparation and develop9 ment programs at the Federal, State, and local

10 levels which divert scarce resources that could be

11 better used to assist all individuals in preparing

12 for and entering the workforce; and

13 (B) conflicting eligibility requirements, an14 nual budgeting and operating cycles, planning

15 and reporting requirements, and performance

16 measurement systems which serve as barriers to

17 the integration of Federal workforce preparation

18 and development programs and result in an inef19 ficient use of resources.

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

21 workforce preparation and development system must

22 be—

23 (A) to streamline and consolidate individ24 ual workforce preparation and development pro-
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1 grams, eliminating unnecessary duplication and

2 fragmentation in such programs;

3 (B) to provide maximum authority and re4 sponsibility to States and local communities for

5 operation of State and local workforce prepara6 tion and development programs;

7 (C) to stress private sector partnerships, in8 cluding the use of private sector service providers

9 and encourage increased leadership and respon10 sibility on the part of the private sector through

11 the use of creative incentives for investment in

12 workforce training (which may include reduced

13 regulatory burdens, tax incentives, and employer

14 loans for the training of incumbent workers);

15 (D) to establish a system which is market16 driven, accountable, provides customer choice

17 and easy access to services, and reinforces indi18 vidual responsibility;

19 (E) to improve education, literacy, job

20 training, rehabilitation, and employment assist21 ance programs in the United States, encouraging

22 lifelong learning and skills upgrading through a

23 seamless system connecting elementary, second24 ary, postsecondary, rehabilitation, adult, and

25 work-based training and education; and
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1 (F) to establish a comprehensive, integrated

2 labor market information system to ensure that

3 workforce preparation and development pro4 grams are related to the demand for particular

5 skills in local labor markets, and to ensure that

6 information about the employment and earnings

7 of the local workforce, occupations in demand,

8 skill requirements for such occupations, and the

9 performance of education, rehabilitation, and

10 training providers are available to job seekers,

11 employers, teachers, students, and

12 decisionmakers.

13 (6) Early exposure to career opportunities, in14 cluding opportunities in the practical arts or trade,

15 can enrich the education experience and provide in16 centives for students to stay in school and achieve

17 higher levels of learning.

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

19 trapped in a cycle of poverty, dependency, and inad20 equate education that is linked to illiteracy and low

21 educational achievement, for which adult education

22 and family literacy programs have been shown to be

23 successful in improving the educational attainment

24 and job skills of parents and their children, contribut25 ing to reductions in crime, welfare dependency, and
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1 enhancing employment opportunities for such indi2 viduals.

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

4 States and local communities have begun successful

5 efforts to integrate Federal workforce preparation and

6 development programs through one-stop service deliv7 ery systems, however, without exception, such States

8 and communities have experienced numerous Federal

9 barriers to such program integration.

10 (9) An extremely high percentage of Americans

11 with disabilities are unemployed, and need access to

12 high quality, specialized rehabilitation services that

13 lead to employment, independence, and full participa14 tion in the mainstream of life in America.

15 (b) PURPOSE.—The purpose of this Act is to transform

16 the vast array of Federal workforce development and lit17 eracy programs from a collection of fragmented and dupli18 cative categorical programs into a streamlined, comprehen19 sive, coherent, high-quality, cost-effective, market-based, and

20 accountable Federal workforce development and literacy

21 system that is designed to meet the education, employment,

22 and training needs of the workforce and the competitiveness

23 needs of employers of the United States, both today and in

24 the future.
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1 SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

2 (a) IN GENERAL.—There are authorized to be appro3 priated—

4 (1) for title II, $2,308,200,000 for fiscal year

5 1997 and such sums as may be necessary for each of

6 the fiscal years 1998 through 2002 to carry out the

7 programs under such title;

8 (2) for title III, $2,263,400,000 for fiscal year

9 1997 and such sums as may be necessary for each of

10 the fiscal years 1998 through 2002 to carry out the

11 programs under such title; and

12 (3) for subtitle A of title IV, $280,000,000 for fis13 cal year 1997 and such sums as may be necessary for

14 each of the fiscal years 1998 through 2002 to carry

15 out the programs under such subtitle.

16 (b) PROGRAM YEAR.—

17 (1) IN GENERAL.—Beginning with fiscal year

18 1997, and thereafter, appropriations for any fiscal

19 year for programs and activities under this Act shall

20 be available for obligation only on the basis of a pro21 gram year. The program year shall begin on July 1

22 in the fiscal year for which the appropriation is

23 made.

24 (2) OBLIGATION.—Funds obligated for any pro25 gram year under titles II, III, and IV, may be ex26 pended by each recipient during that program year
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1 and the two succeeding program years, except that the

2 Secretary shall, in accordance with paragraph (3),

3 reallot to eligible States the funds allotted to States

4 from funds appropriated for reallotments.

5 (3) AMOUNTS AVAILABLE FOR REALLOTMENT.—

6 The amount available for reallotment is equal to—

7 (A) the amount by which the unobligated

8 balance of the State allotment at the end of the

9 program year prior to the program year for

10 which the determination under this section is

11 made exceeds 20 percent of such allotment for the

12 prior program year; plus

13 (B) the unexpended balance of the State al14 lotment from any program year prior to the pro15 gram year in which there is such excess.

16 SEC. 5. DEFINITIONS.

17 For purposes of this Act:

18 (1) ADULT.—The term ‘‘adult’’ means an indi19 vidual who is 16 years of age, or beyond the age of

20 compulsory school attendance under State law, and

21 who is not enrolled or required to be enrolled in sec22 ondary school.

23 (2) ADULT EDUCATION.—The term ‘‘adult edu24 cation’’ means services or instruction below the post25 secondary level for adults—
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1 (A) who are not enrolled in secondary

2 school;

3 (B) who lack sufficient mastery of basic

4 educational skills to enable them to function ef5 fectively in society or who do not have a certifi6 cate of graduation from a school providing sec7 ondary education and who have not achieved an

8 equivalent level of education;

9 (C) who are not currently required to be en10 rolled in school; and

11 (D) whose lack of mastery of basic skills re12 sults in an inability to speak, read, or write the

13 English language which constitutes a substantial

14 impairment of their ability to get or retain em15 ployment commensurate with their real ability,

16 and thus are in need of programs to help elimi17 nate such inability and raise the level of edu18 cation of such individuals with a view to making

19 them less likely to become dependent on others.

20 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

21 The term ‘‘area vocational education school’’ means—

22 (A) a specialized high school used exclu23 sively or principally for the provision of voca24 tional education to individuals who are available
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1 for study in preparation for entering the labor

2 market;

3 (B) the department of a high school exclu4 sively or principally used for providing voca5 tional education in not less than 5 different oc6 cupational fields to individuals who are avail7 able for study in preparation for entering the

8 labor market;

9 (C) a technical institute or vocational school

10 used exclusively or principally for the provision

11 of vocational education to individuals who have

12 completed or left high school and who are avail13 able for study in preparation for entering the

14 labor market; or

15 (D) the department or division of a junior

16 college, community college or university operat17 ing under the policies of the State board and

18 which provides vocational education in not less

19 than 5 different occupational fields leading to

20 immediate employment but not necessarily lead21 ing to a baccalaureate degree, if, in the case of

22 a school, department, or division described in

23 subparagraph (C) or this subparagraph, it ad24 mits as regular students both individuals who
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1 have completed high school and individuals who

2 have left high school.

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

4 means—

5 (A) an out-of-school, at-risk youth who is an

6 individual age 24 or younger and who is not en7 rolled in a secondary or postsecondary education

8 program, has not received a high school diploma

9 or equivalent and must overcome barriers to em10 ployment such as economic disadvantages, dis11 ability, or limited English proficiency; or

12 (B) an in-school, at-risk youth who is an

13 individual age 24 or younger who is enrolled in

14 an accredited secondary or postsecondary edu15 cation program but is at risk of dropping out of

16 school or must overcome barriers to complete an

17 education program, such as economic disadvan18 tages, disability, or limited English proficiency.

19 (5) CAREER EXPLORATION AND GUIDANCE COUN20 SELING.—The term ‘‘career exploration and guidance

21 counseling’’ means a program—

22 (A) which pertains to the body of subject

23 matter and related techniques and methods orga24 nized for the development in individuals of ca25 reer awareness, career planning, career decision-
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1 making, placement skills, and knowledge and un2 derstanding of local, State, and national occupa3 tional, educational, and labor market needs,

4 trends, and opportunities;

5 (B) which assists such individuals in mak6 ing and implementing informed educational and

7 occupational choices; and

8 (C) which is comprehensive in nature and

9 provided through an educational program begin10 ning in as early a grade as possible, including

11 late elementary and middle school grades.

12 (6) CASE MANAGEMENT.—The term ‘‘case man13 agement’’ means the provision of a client-centered ap14 proach in the delivery of services designed to—

15 (A) prepare and coordinate comprehensive

16 employment plans, such as service strategies for

17 participants, to ensure access to necessary train18 ing and supportive services, using, where fea19 sible, computer-based technologies; and

20 (B) provide job and career counseling dur21 ing program participation and after job place22 ment.

23 (7) CHIEF ELECTED OFFICIAL.—The term ‘‘chief

24 elected official’’ means the chief elected executive offi-
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1 cer of a unit of general local government in a

2 workforce development area.

3 (8) COMMUNITY-BASED ORGANIZATION.—The

4 term ‘‘community-based organization’’ means a pri5 vate nonprofit organization that is representative of

6 a community or significant segments of a community

7 that provides education, vocational rehabilitation, job

8 training, supportive services, or internship services

9 and programs.

10 (9) DEMOGRAPHIC CHARACTERISTICS.—The term

11 ‘‘demographic characteristics’’ means information on

12 population, especially with reference to size, density,

13 distribution, and vital statistics including, age, race,

14 sex, ethnic origin, and income status.

15 (10) DISLOCATED WORKER.—The term ‘‘dis16 located worker’’ means an individual who—

17 (A) has been terminated or laid off or who

18 has received a notice of termination or layoff

19 from employment, is eligible for or has exhausted

20 entitlement to unemployment compensation, and

21 is unlikely to return to a previous industry or

22 occupation;

23 (B) has been terminated, or has received a

24 notice of termination of employment, as a result
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1 of any permanent closure of, or any substantial

2 layoff at, a plant, facility, or enterprise;

3 (C) has been unemployed long-term and has

4 limited opportunities for employment or reem5 ployment in the same or a similar occupation in

6 the area in which such individual resides, in7 cluding an older individual who may have sub8 stantial barriers to employment by reason of age;

9 or

10 (D) was self-employed (including farmers

11 and ranchers) but is unemployed as a result of

12 general economic conditions in the community

13 in which they reside or because of natural disas14 ters.

15 (11) DISPLACED HOMEMAKER.—The term ‘‘dis16 placed homemaker’’ means an individual who—

17 (A) is an adult; and

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

19 without remuneration to care for the home and

20 family, and for that reason has diminished mar21 ketable skills;

22 (ii) has been dependent on public assistance

23 or on the income of a relative but is no longer

24 supported by such income;
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1 (iii) is a parent whose youngest dependent

2 child will become ineligible to receive assistance

3 under the program for aid to families with de4 pendent children under part A of title IV of the

5 Social Security Act within 2 years of the par6 ent’s application for assistance under title II of

7 this Act; or

8 (iv) is unemployed or underemployed and is

9 experiencing difficulty in obtaining any employ10 ment or suitable employment, as appropriate.

11 (12) EARNINGS.—The term ‘‘earnings’’ means

12 gross hourly wages before any deduction, plus the esti13 mated hourly value of bonuses, tips, gratuities, com14 missions, and overtime pay either expected or re15 ceived. In the case of individuals in subsidized em16 ployment, total hourly earnings include any wage

17 subsidy paid to the individual.

18 (13) ECONOMIC DEVELOPMENT AGENCIES.—The

19 term ‘‘economic development agencies’’ means State

20 and local planning and zoning commissions or

21 boards, community development agencies, and other

22 State and local agencies and institutions responsible

23 for regulating, promoting, or assisting in State and

24 local economic development.
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1 (14) ECONOMICALLY DISADVANTAGED.—The term

2 ‘‘economically disadvantaged’’ means an individual

3 who—

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

5 which receives, cash welfare payments under a

6 Federal, State, or local welfare program;

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

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

9 month period prior to application for the pro10 gram involved (exclusive of unemployment com11 pensation, child support payments, and welfare

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

13 not in excess of the higher of—

14 (i) the official poverty line (as defined

15 by the Office of Management and Budget,

16 and revised annually in accordance with

17 section 673(2) of the Omnibus Budget Rec18 onciliation Act of 1981 (42 U.S.C. 9902(2)),

19 or

20 (ii) 70 percent of the lower living

21 standard income level;

22 (C) is receiving (or has been determined

23 within the 6-month period prior to the applica24 tion for the program involved to be eligible to re-
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1 ceive) food stamps pursuant to the Food Stamp

2 Act of 1977;

3 (D) qualifies as a homeless individual

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

5 the Stewart B. McKinney Homeless Assistance

6 Act;

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

8 State or local government payments are made;

9 (F) in cases permitted by regulations of the

10 Secretary, is an individual with a disability

11 whose own income meets the requirements of sub12 paragraph (A) or (B), but who is a member of

13 a family whose income does not meet such re14 quirements; or

15 (G) is an individual meeting appropriate

16 criteria approved by a State.

17 (15) EDUCATIONAL SERVICE AGENCY.—The term

18 ‘‘educational service agency’’ means a regional public

19 multiservice agency authorized by State statute to de20 velop, manage, and provide services or programs to

21 local education agencies, and is recognized as an ad22 ministrative agency for such State’s vocational or

23 technical education schools or for vocational programs

24 within its public elementary or secondary schools.

25 Such term includes any other public institution or
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1 agency having administrative control and direction

2 over a public elementary or secondary school.

3 (16) EMPLOYED.—The term ‘‘employed’’ means

4 an individual who is currently—

5 (A) a paid employee;

6 (B) works in his or her own business, pro7 fession, or farm;

8 (C) works 15 hours or more per week as an

9 unpaid worker in an enterprise operated by a

10 family member; or is one who is not working,

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

12 is temporarily absent due to illness, bad weather,

13 vacation, labor-management dispute, or personal

14 reasons; or

15 (D) on active military duty.

16 (17) ENGLISH LITERACY PROGRAM.—The term

17 ‘‘English literacy program’’ means a program of in18 struction designed to help limited English proficient

19 adults, out-of-school youths, or both, achieve full com20 petence in the English language.

21 (18) EXCESS NUMBER.—The term ‘‘excess num22 ber’’ means, with respect to the excess number of un23 employed individuals within a State, the number that

24 represents the number of unemployed individuals in

25 excess of 4.5 percent of the civilian labor force in the
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1 State, or the number that represents the number of

2 unemployed individuals in excess of 4.5 percent of the

3 civilian labor force in areas of substantial unemploy4 ment in such State.

5 (19) GOVERNOR.—The term ‘‘Governor’’ means

6 the chief executive of State.

7 (20) INDIVIDUAL OF LIMITED ENGLISH PRO8 FICIENCY.—The term ‘‘individual of limited English

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

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

11 or understanding the English language and—

12 (A) whose native language is a language

13 other than English; or

14 (B) who lives in a family or community en15 vironment where a language other than English

16 is the dominant language.

17 (21) INDIVIDUALS WITH DISABILITIES.—The

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

19 given such term in the Vocational Rehabilitation Act

20 of 1973.

21 (22) INSTITUTION OF HIGHER EDUCATION.—The

22 term ‘‘institution of higher education’’ has the mean23 ing given such term in section 481 of the Higher Edu24 cation Act of 1965.
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1 (23) JOB SEARCH ASSISTANCE.—The term ‘‘job

2 search assistance’’ means a service that helps a job3 ready individual seek, locate, apply for, and obtain

4 employment. Such services may include, but are not

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

6 market, resume preparation assistance, job finding

7 clubs, job search workshops, vocational exploration,

8 and other employability services.

9 (24) LABOR MARKET AREA.—The term ‘‘labor

10 market area’’ means an economically integrated geo11 graphic area within which individuals can reside and

12 find employment within a reasonable distance or can

13 readily change employment without changing their

14 place of residence. Such areas shall be identified in

15 accordance with criteria used by the Bureau of Labor

16 Statistics of the Department of Labor in defining

17 such areas or similar criteria established by a Gov18 ernor.

19 (25) LIBRARY.—The term ‘‘library’’ includes—

20 (A) a public library;

21 (B) a public elementary or secondary school

22 library;

23 (C) an academic library;

24 (D) a research library; and
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1 (E) a private library, but only if the State

2 in which such private library is located deter3 mines that the library should be considered a li4 brary for purposes of this Act.

5 (26) LITERACY.—The term ‘‘literacy’’ means an

6 individual’s ability to read, write, and speak in Eng7 lish, and compute and solve problems, at levels of pro8 ficiency necessary—

9 (A) to function on the job, in the individ10 ual’s family and in society;

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

12 (C) to develop the individual’s knowledge

13 potential.

14 (27) LOCAL EDUCATIONAL AGENCY.—The term

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

16 given such term in section 14101 of the Elementary

17 and Secondary Education Act of 1965.

18 (28) NATIVE AMERICAN.—The term ‘‘native

19 American’’ means Indians, Alaskan natives, and Ha20 waiian natives.

21 (29) NONTRADITIONAL EMPLOYMENT.—The term

22 ‘‘nontraditional employment’’ as applied to women

23 refers to occupations or fields of work where women

24 comprise less than 25 percent of the individuals em25 ployed in such occupation or field of work.
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1 (30) ON-THE-JOB TRAINING.—The term ‘‘on-the2 job training’’ means training in the public or private

3 sector that is provided to a paid employee while he

4 or she is engaged in productive work that—

5 (A) provides knowledge or skills essential to

6 the full and adequate performance of the job;

7 (B) provides reimbursement to employers,

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

9 for the costs of providing training and addi10 tional supervision; and

11 (C) is based on the Occupational Employ12 ment Statistics Program Dictionary.

13 (31) POSTSECONDARY EDUCATIONAL INSTITU14 TION.—The term ‘‘postsecondary educational institu15 tion’’ means an institution of higher education (as

16 such term is defined in section 481 of the Higher

17 Education Act of 1965) which continues to meet the

18 eligibility and certification requirements under title

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

20 (32) PREEMPLOYMENT SKILLS TRAINING; JOB

21 READINESS SKILLS TRAINING.—The terms

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

23 skills training’’ mean training that helps prepare in24 dividuals for work by assuring that they are familiar

25 with general workplace expectations and exhibit work
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1 behavior and attitudes necessary to compete success2 fully in the job market.

3 (33) PUBLIC ASSISTANCE.—The term ‘‘public as4 sistance’’ means Federal, State, or local government

5 cash payments for which eligibility is determined by

6 a needs or income test.

7 (34) RAPID RESPONSE.—The term ‘‘rapid re8 sponse’’ means assistance that is directly provided by

9 the State, or by local grantees with funds provided by

10 the State, in the case of mass layoffs or plant closures,

11 and that establishes on-site contact with employer and

12 employee representatives within a short period of time

13 (preferably 48 hours or less) after becoming aware of

14 a current or projected permanent closure or substan15 tial layoff in order to—

16 (A) provide information on, and facilitate

17 access to, available public programs and services

18 for workers losing jobs as a result of such layoff

19 or closure;

20 (B) provide emergency assistance adapted

21 to the particular closure or layoff;

22 (C) promote the formation of labor-manage23 ment committees, where appropriate;
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1 (D) collect information related to economic

2 dislocation and available resources within the

3 State for dislocated workers;

4 (E) provide or obtain appropriate financial

5 and technical advice and liaison with economic

6 development agencies and other organizations to

7 assist in efforts to avert worker dislocation; and

8 (F) assist the local community in develop9 ing its own coordinated response and in obtain10 ing access to State economic development assist11 ance.

12 (35) REGISTERED APPRENTICESHIP.—The term

13 ‘‘registered apprenticeship’’ means a program reg14 istered by the Bureau of Apprenticeship and Training

15 in the United States Department of Labor, or a State

16 Apprenticeship Agency recognized and approved by

17 the Bureau of Apprenticeship and Training as the

18 appropriate body for State registration or approval of

19 local apprenticeship programs and agreements.

20 (36) SCHOOL DROPOUT.—The term ‘‘school drop21 out’’ means a youth who is no longer attending any

22 school and who has not received a secondary school

23 diploma or a certificate from a program of equiva24 lency for such a diploma.
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1 (37) SKILL CERTIFICATE.—The term ‘‘skill cer2 tificate’’ means a portable, industry-recognized cre3 dential issued by programs authorized under this Act,

4 that certifies that an individual has mastered skills at

5 levels that are at least as challenging as skill stand6 ards endorsed by the National Skill Standards Board,

7 except that until such skill standards are developed,

8 the term ‘‘skill certificate’’ means a credential issued

9 under a process determined by the State.

10 (38) STATE.—The term ‘‘State’’ means any of

11 the several States, the District of Columbia, the Com12 monwealth of Puerto Rico, the Virgin Islands, Amer13 ican Samoa, Guam, and the Commonwealth of the

14 Northern Mariana Islands.

15 (39) STATE EDUCATIONAL AGENCY.—The term

16 ‘‘State educational agency’’ has the meaning given

17 such term in section 14101 of the Elementary and

18 Secondary Education Act of 1965.

19 (40) STATE LIBRARY ADMINISTRATIVE AGEN20 CY.—The term ‘‘State library administrative agency’’

21 means the official agency of a State charged by the

22 law of the State with the extension and development

23 of public library services throughout the State.

24 (41) SUPPORTIVE SERVICES.—The term ‘‘sup25 portive services’’ means services which are necessary
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1 to enable an individual eligible for training under

2 this Act, but who cannot afford to pay for such serv3 ices, to participate in a training or vocational reha4 bilitation program or job search activities funded

5 under this Act. Such supportive services may include

6 transportation, individual and family counseling,

7 child care and dependent care, meals, temporary shel8 ter, financial counseling, needs-based payments, and

9 other reasonable expenses required for participation

10 in a training, job preparation, or job placement pro11 gram. Such services may be provided in-kind or

12 through cash assistance, except that such services will

13 be provided with funds provided under this Act only

14 after alternative funding sources specifically des15 ignated for such services have been exhausted.

16 (42) UNEMPLOYED.—The term ‘‘unemployed’’ re17 fers to an individual who is not employed, who is

18 available for work, and who has made specific efforts

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

20 unemployed are individuals who are not working, are

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

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

23 (43) UNIT OF GENERAL LOCAL GOVERNMENT.—

24 The term ‘‘unit of general local government’’ means

25 any general purpose political subdivision of a State
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1 which has the power to levy taxes and spend funds,

2 as well as general corporate and police powers.

3 (44) VETERAN.—The term ‘‘veteran’’ has the

4 meaning given such term in section 101(2) of title 38,

5 United States Code.

6 (45) WORK EXPERIENCE.—The term ‘‘work expe7 rience’’ means a time-limited work activity that pro8 vides an individual with the opportunity to acquire

9 the general skills and knowledge necessary to obtain

10 employment.

11 (46) WORKPLACE MENTOR.—The term ‘‘work12 place mentor’’ means an employee or other individ13 ual, approved by the employer at a workplace, who

14 possesses the skills and knowledge to be mastered by

15 a student or program participant, and who instructs,

16 critiques the performance, and challenges the student

17 or program participant to perform well, and works in

18 consultation with classroom teachers, training provid19 ers, and the employer of the student or program par20 ticipant.

21 (47) YOUTH.—The term ‘‘youth’’ means an indi22 vidual under the age of 24.

23 SEC. 6. TRANSITION.

24 The Secretary of Education and the Secretary of Labor

25 shall take such steps as they determine to be appropriate
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1 to provide for the orderly transition from any authority

2 under provisions of statutes amended or repealed by this

3 Act or any related authority under provisions of this Act.

4 TITLE I—WORKFORCE DEVELOP5 MENT INFRASTRUCTURE

6 SEC. 101. PURPOSE OF TITLE.

7 The purpose of this title is to provide for the establish8 ment of an infrastructure within States on which to build

9 a comprehensive system of workforce development and lit10 eracy.

11 Subtitle A—State and Local

12 Responsibilities

13 SEC. 102. STATE REQUIREMENTS.

14 (a) IN GENERAL.—For fiscal year 1997 and subse15 quent fiscal years, a State that desires to receive a grant

16 under one or more of the programs specified in subsection

17 (b) shall—

18 (1) establish a collaborative process, pursuant to

19 section 103;

20 (2) develop a State workforce development and

21 literacy plan, pursuant to section 104; and

22 (3) otherwise comply with the requirements of

23 this Act.

24 (b) WORKFORCE DEVELOPMENT AND LITERACY PRO25 GRAMS.—
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1 (1) IN GENERAL.—The programs referred to in

2 subsection (a) are the following:

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

4 Development and Career Preparation Consolida5 tion Grant.

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

7 Employment and Training Consolidation Grant.

8 (C) The program under subtitle A of title

9 IV, the Adult Education and Family Literacy

10 Consolidation Grant.

11 (D) The program amended by subtitle A of

12 title V (relating to title I of the Rehabilitation

13 Act of 1973).

14 (2) DEFINITION.—For purposes of this Act, the

15 term ‘‘Workforce Development and Literacy pro16 grams’’ means the programs specified in paragraph

17 (1).

18 SEC. 103. COLLABORATIVE PROCESS REGARDING STATE

19 SYSTEM.

20 (a) IN GENERAL.—The Governor of a State that de21 sires to receive a grant under one or more of the programs

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

23 Education and the Secretary of Labor that a collaborative

24 process, as described in subsection (b) or (c), has been used

25 in complying with the applicable provisions of this Act.
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1 (b) COLLABORATIVE PROCESS.—The collaborative

2 process referred to in subsection (a) is a process for making

3 decisions which includes as participants, at a minimum,

4 the Governor and—

5 (1) representatives of the following (which rep6 resentatives are appointed by the Governor)—

7 (A) business and industry;

8 (B) local chief elected officials (representing

9 both cities and counties);

10 (C) local educational agencies (including

11 vocational educators);

12 (D) postsecondary institutions (including

13 community and technical colleges);

14 (E) the State rehabilitation advisory coun15 cil;

16 (F) organizations representing individuals

17 served by programs established under this Act

18 (including community-based organizations); and

19 (G) employees.

20 (2) the lead State agency official or officials

21 for—

22 (A) the State educational agency (including

23 representatives of vocational education, adult

24 education and literacy, and libraries);
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1 (B) the State agency responsible for eco2 nomic development;

3 (C) the State agency responsible for employ4 ment; security (and the State agency responsible

5 for job training where different from such agen6 cy);

7 (D) the State agency responsible for post8 secondary education;

9 (E) the State agency responsible for voca10 tional rehabilitation, and where applicable, the

11 State agency providing vocational rehabilitation

12 services for the blind;

13 (F) the State agency responsible for welfare;

14 and

15 (G) the representative of the Veterans’ Serv16 ice assigned to the State under section 4103 of

17 title 38, United States Code.

18 (c) RULE OF CONSTRUCTION.—With respect to compli19 ance with subsection (b)—

20 (1) a State may use any existing State process

21 (including any council or similar entity) that sub22 stantially meets the purposes of such subsection; or

23 (2) if prior to the date of enactment of this Act,

24 a State has developed a one-stop career center system

25 or a school-to-work system through a collaborative
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1 process substantially similar to the process described

2 in subsection (b), the State may use such process.

3 SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOP4 MENT AND LITERACY PLAN.

5 (a) IN GENERAL.—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 submit a strategic State

8 workforce development and literacy plan to provide policy

9 guidance with respect to workforce development programs

10 operated in the State, and that meets the requirements of

11 this section to—

12 (1) the Secretary of Education; and

13 (2) the Secretary of Labor.

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

15 literacy plan shall include the following:

16 (1) A description of the collaborative process

17 under section 103 used in developing the plan.

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

19 workforce development and literacy system, that in20 cludes—

21 (A) a description of how the State will

22 progress toward achieving the goals and purpose

23 of this Act as established in sections 3(a)(5) and

24 3(b);
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1 (B) an assessment of the needs of the State

2 with regard to current and projected demands

3 for workers by occupation, the skills and edu4 cation levels of the workforce, the vocational re5 habilitation needs of individuals with severe dis6 abilities residing in the State, the skill and eco7 nomic development needs of the State, and an as8 sessment of the type and availability of workforce

9 development, adult education, vocational reha10 bilitation, and literacy programs in the State;

11 (C) the identification of progress indicators,

12 based on the performance measures described in

13 titles II and III, subtitle A of title IV, and title

14 I of the Vocational Rehabilitation Act of 1973,

15 and a model of continuous improvement, that the

16 State will use to measure progress made by the

17 State, local workforce development boards, and

18 other applicable local entities who are recipients

19 of financial assistance under this Act in meeting

20 such goals; and

21 (D) a description of how performance meas22 ures are consistent across the 4 grant programs

23 established in titles II and III, subtitle A of title

24 IV, and title I of the Vocational Rehabilitation

25 Act of 1973.
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1 (3) A description of how the State has complied,

2 or will comply, with the provisions of sections 105

3 through 108.

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

5 in the National Labor Market Information system

6 pursuant to subtitle B.

7 (5) Any information required to be included in

8 the plan under any of titles II through IV, and title

9 I of the Vocational Rehabilitation Act of 1973, (in the

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

11 any such title).

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

13 taken by the State to ensure coordination and consist14 ency and avoid duplication among programs receiv15 ing assistance under this Act, including a description

16 of common data collection and reporting processes

17 (including the establishment of a common manage18 ment information system) across such programs.

19 (7) A description of the process used by the State

20 to provide an opportunity for public comment, and

21 input into the development of the plan, prior to sub22 mission of the plan.

23 (8) A description of the process used by the State

24 to consult with representatives of business and indus-
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1 try with respect to the requirements of subparagraphs

2 (A), (B), and (C) of paragraph (2) of this subsection.

3 (9) Assurances that the State will provide for fis4 cal control and fund accounting procedures that may

5 be necessary to ensure the proper disbursement of, and

6 accounting for, funds paid to the State under this

7 Act.

8 (10) A description of the sanctions which the

9 State may impose (including restrictions from future

10 participation or consideration for funding) in in11 stances where recipients of funds under this Act fail

12 to achieve agreed upon performance measures, fail to

13 adhere to State mandated fiscal control and funds ac14 counting procedures, or take or fail to take other ac15 tions required under the State plan, contracts, or

16 other agreements.

17 (c) AUTHORITY OF GOVERNOR.—

18 (1) FINAL AUTHORITY.—If, after a reasonable ef19 fort, a Governor is unable to obtain agreement

20 through the collaborative process described in sub21 section (b)(1), the Governor shall have final authority

22 to make decisions and submit a plan for the design

23 of a comprehensive system of workforce development

24 and literacy for the State under subsection (a).
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1 (2) DISAGREEMENT.—The Governor shall accept

2 and include with the plan submitted under paragraph

3 (1) any disagreeing views submitted by a participant

4 of the collaborative process if such views represent dis5 agreement in the area in which such participant was

6 selected for representation.

7 (3) EXCEPTION.—Nothing in this Act shall be

8 construed to negate or supersede the legal authority,

9 under State law or other applicable law, of any State

10 agency, State entity, or State public official over pro11 grams that are under the jurisdiction of the agency,

12 entity, or official. Nothing in this Act shall be con13 strued to interfere with the authority of such agency,

14 entity, or official to enter into a contract under any

15 provision of law.

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

17 a State in accordance with this section remains in effect

18 until the State submits to the Secretary such modifications

19 as the State determines necessary. This section applies to

20 the modifications to the same extent and in the same man21 ner as this section applies to the original plan.

22 (e) ALLOCATION OF RESPONSIBILITIES OF SECRETAR23 IES.—The Secretary of Education and the Secretary of

24 Labor shall collaborate in establishing and using a common
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1 procedure in making determinations regarding compliance

2 by the States with the requirements established in this title.

3 SEC. 105. ESTABLISHMENT OF WORKFORCE DEVELOPMENT

4 AREAS.

5 The Governor of a State that desires to receive a grant

6 under one or more of the programs specified in section

7 102(b) shall, through the collaborative process established

8 under section 103 and after consultation with local chief

9 elected officials, and after consideration of comments re10 ceived through the public participation process as described

11 in the State plan, designate local workforce development

12 areas within the State. Such areas shall be designated tak13 ing into consideration the following:

14 (1) Existing labor market areas.

15 (2) Units of general local government.

16 (3) Geographic areas served by local educational

17 agencies and intermediate educational agencies.

18 (4) Geographic areas served by postsecondary in19 stitutions and area vocational education schools.

20 (5) Service delivery areas established under sec21 tion 101 of the Job Training Partnership Act (29

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

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

24 (6) The distance that individuals will need to

25 travel to receive services from one-stop career centers.
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1 SEC. 106. PROVISIONS REGARDING LOCAL WORKFORCE DE2 VELOPMENT BOARDS.

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 the establishment of

6 a local workforce development board in each local workforce

7 development area within the State.

8 (b) STATE CRITERIA.—The Governor, through the col9 laborative process described under section 103, shall estab10 lish criteria for use by local chief elected officials in the

11 workforce development area, in the selection of members of

12 local workforce development boards, in accordance with re13 quirements prescribed under subsections (c) and (d).

14 (c) REPRESENTATION REQUIREMENT.—Such criteria

15 shall require, at a minimum, that a local workforce develop16 ment board consist of—

17 (1) a majority of members who are representa18 tives of business and industry, including individuals

19 who are owners of businesses, chief executives or chief

20 operating officers of private business, and other busi21 ness executives with optimum policymaking authority

22 in local businesses, selected from among nominees sub23 mitted by local business organizations and trade asso24 ciations;
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1 (2) an individual or individuals with disabil2 ities, who have special knowledge or expertise in the

3 area of vocational rehabilitation;

4 (3) representatives of education, including local

5 educational agencies and postsecondary institutions,

6 selected from among individuals nominated by re7 gional or local educational agencies, vocational edu8 cation institutions, institutions of postsecondary in9 stitutions (including community colleges), or general

10 organizations of such institutions within the

11 workforce development area; and

12 (4) representatives of community-based organiza13 tions, employees, and veterans as nominated or rec14 ommended to the board through a process established

15 by the Governors through the collaborative process.

16 (d) ESTABLISHMENT OF BOARD.—

17 (1) SELECTION OF BOARD MEMBERS.—

18 (A) SINGLE UNIT OF LOCAL GOVERNMENT

19 IN AREA.—In the case of a workforce develop20 ment area that is comprised of only one unit of

21 general local government, the chief elected official

22 of such unit shall select the members of the local

23 workforce development board for such area, in

24 accordance with the State criteria developed pur25 suant to subsection (b).
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1 (B) MULTIPLE UNITS IN AREA.—In the case

2 of a workforce development area that is com3 prised of more than one unit of general local gov4 ernment, the chief elected official of such units

5 shall select the members of the local workforce de6 velopment board from the individuals so nomi7 nated or recommended for such area in accord8 ance with an agreement entered into by such of9 ficials and with the State criteria developed

10 under subsection (b). In the absence of such an

11 agreement, the appointments shall be made by

12 the Governor, through the collaborative process,

13 from the individuals so nominated or rec14 ommended.

15 (2) CERTIFICATION.—The Governor shall bienni16 ally certify one local workforce development board for

17 each workforce development area.

18 (3) EXCEPTION.—In any case in which a local

19 workforce development area is a State, the individuals

20 comprising the Governor’s collaborative process as de21 scribed in section 103, may be reconstituted to meet

22 the requirements of this section.

23 (e) DUTIES OF LOCAL WORKFORCE DEVELOPMENT

24 BOARD.—
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1 (1) LOCAL WORKFORCE DEVELOPMENT PLAN.—

2 Each local workforce development board shall develop

3 a biennial strategic plan and provide policy guidance

4 with respect to workforce development programs oper5 ated within their respective workforce development

6 areas. Such strategic plan shall be consistent with the

7 State’s collaborative workforce development and lit8 eracy plan, shall be approved by the appropriate chief

9 elected official or officials, and shall be submitted to

10 the Governor for approval. If after a reasonable effort,

11 a local workforce development board is unable to ob12 tain the approval of the chief elected official or offi13 cials, the Board has the authority to forward the

14 plan, with the comments of the chief elected official or

15 officials, to the Governor for final approval or dis16 approval. Such local plan shall include the following:

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

18 and related strategies, to ensure that workforce

19 preparation and development programs, includ20 ing programs established pursuant to this Act,

21 title I of the Rehabilitation Act of 1973, and the

22 Wagner-Peyser Act, contribute to a coherent

23 workforce development system in the workforce

24 development area.
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1 (B) A description of the performance meas2 ures to be used by the local workforce develop3 ment board for measuring the performance of

4 local service providers under chapter 2 of title II,

5 title III, and title I of the Rehabilitation Act of

6 1973, and the performance of one-stop career

7 center operators, with whom the Board contracts.

8 (C) A description of the local one-stop ca9 reer center system to be established in the

10 workforce development area, including—

11 (i) a description of the process the local

12 workforce development board will use to des13 ignate or establish career center system

14 which ensures that the most effective and ef15 ficient service providers are chosen;

16 (ii) an identification of the roles of in17 dividual workforce development programs,

18 including programs authorized by the Wag19 ner-Peyser Act; and

20 (iii) a description of the funding

21 sources to be used in the operation of the ca22 reer center system.

23 (D) A description of strategies the local

24 workforce development board will undertake to

25 fully involve local employers, local educational
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1 agencies, postsecondary education institutions,

2 adult education and literacy providers, local

3 service providers, and other consumers, including

4 individuals with disabilities, in the development

5 of the workforce development system.

6 (E) Such other information as requested by

7 the State.

8 (2) IDENTIFICATION OF OCCUPATIONS IN DE9 MAND AND TRAINING NEEDS.—The local workforce de10 velopment board shall use available labor market in11 formation and other appropriate methods in order to

12 identify and assess the needs of the workforce develop13 ment area with regard to—

14 (A) current and projected demand for work15 ers by occupation;

16 (B) skill levels, including literacy and basic

17 skills, of the local workforce and the needs of

18 business and industry for a skilled workforce;

19 (C) economic development needs of the area;

20 (D) the type and availability of workforce

21 preparation and development programs in the

22 area; and

23 (E) the needs for vocational rehabilitation

24 among individuals with disabilities.
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1 Such information shall be used to develop the goals of,

2 and activities provided by the workforce development

3 programs in the local area.

4 (3) BUDGET AND PROGRAM OVERSIGHT.—

5 (A) BUDGETING.—

6 (i) The local workforce development

7 board, working through the State adminis8 trative agent, shall develop a budget for the

9 purpose of carrying out local programs es10 tablished under chapter 2 of title II, title

11 III, and title I of the Rehabilitation Act of

12 1973, and for one-stop career center systems

13 established or designated under section 107.

14 (ii) Such budget shall be subject to the

15 approval of the appropriate chief elected of16 ficial or officials in the workforce develop17 ment area.

18 (B) PROGRAM OVERSIGHT.—The local

19 workforce development board, in partnership

20 with the chief elected official or officials in the

21 workforce development area, shall conduct over22 sight of the workforce development programs list23 ed in subparagraph (A), and of one-stop career

24 centers established under this title.

25 (4) ADMINISTRATION.—
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1 (A) FISCAL AGENT.—

2 (i) The local workforce development

3 board may receive and disburse funds made

4 available for carrying out programs author5 ized under chapter 2 of title II, title III,

6 and title I of the Rehabilitation Act of 1973

7 of this Act, or the local workforce develop8 ment board may designate a fiscal agent

9 (which may include the State through a

10 mutual agreement between the local board

11 and the State), for the purpose of disburse12 ment of funds to one-stop centers and other

13 service providers, as designated by the local

14 workforce development board.

15 (ii) The Board may employ its own

16 staff, independent of local programs and

17 service providers, and may solicit or accept

18 grants and contributions from sources other

19 than from this Act.

20 (B) LIMITATION.—The workforce develop21 ment board, or employees of such board, may not

22 operate programs established under this Act.

23 (C) CONFLICT OF INTEREST.—A member of

24 a workforce development board may not—
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1 (i) discuss or participate in board con2 sideration; or

3 (ii) cast a vote;

4 regarding the provision of services by such mem5 ber (or by an organization that such member

6 represents) or regarding any matter that would

7 provide direct financial benefit to such member.

8 The Governor may enforce more rigorous conflict

9 of interest standards, as determined appropriate.

10 (D) INDEPENDENT AUTHORITY.—

11 (i) The Board shall elect its own chair12 person from among the members of the

13 board.

14 (ii) The board may adopt bylaws and

15 other operating procedures as consistent

16 with the purposes of this Act, and with the

17 policies established in the State workforce

18 development and literacy plan.

19 (5) OTHER.—Each local workforce development

20 board shall carry out such other duties as determined

21 to be appropriate by the Governor and the individ22 uals and entities described in section 103, through the

23 collaborative process described in the State plan.
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1 SEC. 107. 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 a

7 one-stop career center system in the workforce development

8 area of such board, consistent with criteria established

9 under subsection (b).

10 (b) STATE CRITERIA.—The Governor, through the col11 laborative process described under section 103, shall estab12 lish statewide criteria for use by local workforce develop13 ment boards in the designation or establishment of one-stop

14 career center systems to ensure that the most effective and

15 efficient service providers are chosen. Such criteria shall be

16 consistent with the requirements prescribed under sub17 section (c).

18 (c) ONE-STOP CAREER CENTER SYSTEM REQUIRE19 MENTS.—At a minimum, one-stop career center systems

20 shall include—

21 (1) common intake;

22 (2) preliminary assessment;

23 (3) integrated job search assistance;

24 (4) to the extent practicable, as determined by

25 the Governor, unified and linked computer systems,

26 including the availability of labor market informa-
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1 tion as described under subtitle B, and linkages

2 through uniform management information systems;

3 and

4 (5) to the extent practicable, as determined by

5 the Governor, at least one physical, co-located site

6 which provides comprehensive and fully integrated

7 workforce development services to any individual seek8 ing such services.

9 Local workforce development areas are encouraged to estab10 lish a network of comprehensive and fully-integrated co-lo11 cated one-stop career centers to provide the services de12 scribed in subsection (f), supplemented with multiple affili13 ated sites or satellites that provide one or more of such serv14 ices and are linked through electronic and technological ac15 cess points. Such affiliated sites may include entities des16 ignated as having a specialization in addressing special

17 needs, such as the needs of individuals with disabilities.

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

19 labor market which is compiled pursuant to the Wagner20 Peyser Act, as described in subtitle B of this title, shall be

21 available, to the extent practicable, through integrated elec22 tronic networks, at all one-stop career centers and affiliated

23 sites.

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

25 consortium of entities located in the workforce development
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1 area may be designated by the local workforce development

2 board to operate a one-stop career center or to participate

3 in a one-stop career center system. Such entities may in4 clude the following:

5 (1) Institutions of higher education.

6 (2) Local educational agencies.

7 (3) Area vocational education schools.

8 (4) Local employment service offices, established

9 under the Wagner-Peyser Act.

10 (5) Private nonprofit organizations (including

11 community-based organizations).

12 (6) Private for-profit entities.

13 (7) Agencies of local governments.

14 (8) Other interested organizations and entities of

15 demonstrated effectiveness, including local chambers

16 of commerce and other business organizations, consist17 ent with State criteria established pursuant to sub18 section (b).

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

20 out the following duties:

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

22 shall make available the following information and

23 core services to individuals on a universal and non24 discriminatory basis, with reasonable accommoda25 tions to address the needs of individuals with disabil-
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1 ities, in the workforce development area in which such

2 center is located:

3 (A) Outreach and intake for services pro4 vided under chapter 2 of title II, title III, sub5 title A of title IV, and title I of the Rehabilita6 tion Act of 1973.

7 (B) A preliminary assessment of the skill

8 levels and the need for services of the individual

9 for programs under chapter 2 of title II, title III,

10 subtitle A of title IV, and title I of the Rehabili11 tation Act of 1973 of individuals, which may in12 clude such factors as basic skills, occupational

13 skills, career development skills, prior work expe14 rience, employability, interests, aptitudes, voca15 tional rehabilitation needs, and supportive serv16 ice needs.

17 (C) Information relating to local and State,

18 and if appropriate, to regional or national, occu19 pations in demand and skill requirements for

20 such occupations.

21 (D) Information relating to youth services,

22 including information on at-risk youth workforce

23 development programs authorized under title II,

24 on school-to-work opportunities, and on youth

25 apprenticeship opportunities.
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1 (E) Career counseling and career planning

2 based on a preliminary assessment of the indi3 vidual.

4 (F) Job search assistance.

5 (G) Information related to vocational reha6 bilitation services, as provided for in title I of

7 the Rehabilitation Act of 1973.

8 (H) Information relating to federally fund9 ed education and job training programs (includ10 ing registered apprenticeships), and student aid

11 programs, including the eligibility requirements

12 of and services provided by such programs.

13 (I) Information on, and assistance in

14 accessing referral to additional services through

15 programs providing adult education and literacy

16 services, vocational rehabilitation, workforce

17 preparation and development, and supportive

18 services, including those programs authorized in

19 titles II through IV, title I of the Vocational Re20 habilitation Act of 1973, available in the

21 workforce development area.

22 (J) Information on the extent to which the

23 services provided under titles II and III, subtitle

24 A of title IV, and title I of the Vocational Reha25 bilitation Act of 1973, meet or exceed the per-
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1 formance standards described in the State plan,

2 and the performance-based information provided

3 by the State to local workforce development

4 boards on certified providers of education and

5 training, as required under section 108(d)(3).

6 (K) Information on industry-recognized

7 skill standards and assessments.

8 (L) Job listings for local labor market op9 portunities.

10 (M) Acceptance of applications for unem11 ployment compensation.

12 (N) Other appropriate activities to assist

13 individuals into employment.

14 (2) DISTRIBUTION OF VOUCHERS AND SKILL

15 GRANTS.—A center shall serve as the point of dis16 tribution of vouchers for education, training, and vo17 cational rehabilitation services to eligible individuals

18 in accordance with section 108.

19 (3) SPECIAL ARRANGEMENTS.—For the purpose

20 of providing core services to individuals with severe

21 disabilities in the most effective and efficient manner

22 possible, the one-stop career center may arrange to

23 have such core services provided to an individual by

24 a certified provider, either on a contract basis or

25 through the use of vouchers.
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1 (g) ADDITIONAL SERVICES.—One-stop career centers

2 may provide customized workforce development services to

3 employers on a fee-for-service basis, as determined by the

4 local workforce development board.

5 (h) ALTERNATIVE STATE PROCEDURE.—Through the

6 collaborative process described in section 103, the Governor

7 has the authority to develop alternative procedures to the

8 one-stop career center system, which are designed to accom9 plish the full integration of workforce development pro10 grams. These alternative procedures shall be described in

11 a proposal to the Secretaries of Education and Labor for

12 joint review and approval or disapproval within 60 days.

13 SEC. 108. CERTIFICATION OF EDUCATION, TRAINING, AND

14 VOCATIONAL REHABILITATION SERVICE PRO15 VIDERS.

16 (a) ELIGIBILITY REQUIREMENTS.—A program offered

17 by a provider of education and training services shall be

18 eligible to receive funds under title III, and title I of the

19 Vocational Rehabilitation Act of 1973 through the receipt

20 of vouchers, skill grants, or through contract, if such pro21 gram and provider—

22 (1) are either—

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

24 Higher Education Act of 1965, or
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1 (B) determined to be eligible under the pro2 cedures described in subsection (b); and

3 (2) provides the performance-based information

4 required pursuant to subsection (c), except that pro5 viders eligible under subparagraph (A) only have to

6 provide information for programs other than pro7 grams leading to a degree.

8 (b) ALTERNATIVE ELIGIBILITY PROCEDURE.—(1) The

9 Governor shall establish an alternative eligibility procedure

10 for providers of education, training, and vocational reha11 bilitation services in any State desiring to receive funds

12 under title III of this Act and title I of the Vocational Reha13 bilitation Act of 1973, but that are not eligible to partici14 pate in title IV of the Higher Education Act of 1965. Such

15 procedure shall establish minimum acceptable levels of per16 formance for such providers, and shall be based on guide17 lines developed by the Secretaries of Labor and Education.

18 The Governor shall utilize the local workforce development

19 boards, for the identification and certification of qualified

20 providers of education, training, and vocational rehabilita21 tion services. During a transition period, not to exceed 2

22 years, certification of programs and providers under this

23 subsection shall be based on the performance of such pro24 grams and providers under the Job Training Partnership

25 Act, the Vocational Rehabilitation Act, or other objective
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1 measures of previous performance, such as employer evalua2 tions.

3 (2) Notwithstanding paragraph (1), if the participa4 tion of an institution of higher education in any of the pro5 grams under such title of such Act is terminated, such insti6 tution shall not be eligible to receive funds under this Act

7 for a period of two years.

8 (c) PERFORMANCE-BASED INFORMATION.—The State

9 shall identify performance-based information that is to be

10 submitted by providers of services for programs to be eligible

11 under this section. Such information may include informa12 tion, consistent with guidelines developed by the Secretaries

13 of Education and Labor, relating to—

14 (1) the percentage of students completing the pro15 grams conducted by the provider;

16 (2) the rates of licensure of graduates of the pro17 grams conducted by the provider;

18 (3) the percentage of graduates of the programs

19 meeting skill standards and certification requirements

20 endorsed by the National Skill Standards Board es21 tablished under the Goals 2000: Educate America Act;

22 (4) the rates of placement and retention in em23 ployment, and earnings of the graduates of the pro24 grams conducted by the provider;
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1 (5) the percentage of students who obtained em2 ployment in an occupation related to the program

3 conducted by the provider;

4 (6) the warranties or guarantees provided by

5 such provider relating to the skill levels or employ6 ment to be attained by students; and

7 (7) other information for providers of services

8 under title I of the Rehabilitation Act of 1973 that re9 flects the priority of serving individuals with severe

10 disabilities.

11 (d) ADMINISTRATION.—

12 (1) STATE AGENCY.—The Governor shall des13 ignate a State agency to collect, verify, and dissemi14 nate the performance-based information submitted

15 pursuant to subsection (c).

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

17 training services that desires to be eligible to receive

18 funds under this title shall submit the information re19 quired under subsection (c) to the State agency des20 ignated under paragraph (1) at such time and in

21 such form as such State agency may require.

22 (3) LIST OF ELIGIBLE PROVIDERS.—The State

23 agency shall compile a list of eligible programs and

24 providers, accompanied by the performance-based in25 formation submitted, and disseminate such list and
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1 information to the local workforce development boards

2 within the State.

3 (4) ACCURACY OF INFORMATION.—

4 (A) IN GENERAL.—If the State agency de5 termines that information concerning a provider

6 is inaccurate, such provider shall be disqualified

7 from receiving funds under this title for a period

8 of not less than two years, unless such provider

9 can demonstrate to the satisfaction of the Gov10 ernor or his or her designee, that the information

11 was provided in good faith.

12 (B) APPEAL.—The Governor shall establish

13 a procedure for a service provider to appeal a

14 determination by a State agency that results in

15 a disqualification under subparagraph (A). Such

16 procedure shall provide an opportunity for a

17 hearing and prescribe appropriate time limits to

18 ensure prompt resolution of the appeal.

19 (5) ASSISTANCE IN DEVELOPING INFORMATION.—

20 The State agency established pursuant to paragraph

21 (1) may provide technical assistance to education,

22 training, and vocational rehabilitation providers in

23 developing the information required under subsection

24 (b). Such assistance may include facilitating the uti25 lization of State administrative records, such as un-
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1 employment compensation wage records, and other

2 appropriate coordination activities.

3 (e) ON-THE-JOB TRAINING EXCEPTION.—

4 (1) IN GENERAL.—Providers of on-the-job train5 ing shall not be subject to the requirements of sub6 sections (a), (b), (c), and (d).

7 (2) COLLECTION AND DISSEMINATION OF INFOR8 MATION.—The Workforce Development Board shall

9 collect such performance-based information from on10 the-job training providers as the Governor may re11 quire, and shall disseminate such information to the

12 one-stop career centers.

13 SEC. 109. MANAGEMENT INFORMATION SYSTEMS.

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

15 the funds it receives under this Act to design a unified man16 agement information system that is in accordance with

17 guidelines established jointly by the Secretaries in consulta18 tion with the Governors.

19 (b) REQUIREMENTS.—Each unified management in20 formation system shall, to the extent practicable as deter21 mined by the Governor—

22 (1) be utilized for federally required fiscal report23 ing and monitoring for each of the programs author24 ized under this Act;
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1 (2) be used by all agencies involved in workforce

2 development activities, including one-stop career cen3 ters which shall have the capability to track the over4 all public investments within the State and workforce

5 development areas, and to inform policymakers as to

6 the results being achieved and the demographic char7 acteristics of the individuals served through that in8 vestment;

9 (3) contain a common structure of financial re10 porting requirements, fiscal systems and monitoring

11 for all workforce development expenditures included

12 in the workforce development system that shall utilize

13 common data elements and the definitions included in

14 section 5;

15 (4) support local efforts to establish workforce de16 velopment systems, including intake and eligibility

17 determination for all services;

18 (5) contain data on the demographic characteris19 tics on the individual participants served by pro20 grams authorized under this Act, which shall be col21 lected, produced, and published by the Secretaries;

22 and

23 (6) be in accordance with guidelines established

24 jointly by the Secretaries in consultation with the

25 States.
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1 SEC. 110. PERFORMANCE ACCOUNTABILITY SYSTEM.

2 (a) IN GENERAL.—In order to promote high levels of

3 performance and to ensure an appropriate return on the

4 Nation’s investment in the workforce development and lit5 eracy system, each State receiving funds under this Act

6 shall develop, or have developed, a statewide performance

7 accountability system in accordance with the provisions of

8 this section.

9 (b) INDICATORS OF PERFORMANCE.—

10 (1) IN GENERAL.—Each State receiving funds

11 under this Act shall identify indicators of perform12 ance for each of the programs established under titles

13 II through IV of this Act and title I of the Vocational

14 Rehabilitation Act of 1973, consistent with State

15 goals as described in the State plan in accordance

16 with section 104. Such indicators shall at a mini17 mum include core indicators described in such titles.

18 Such indicators may also take into account post-pro19 gram surveys measuring customer satisfaction of both

20 employers and program participants.

21 (2) TECHNICAL DEFINITIONS OF CORE INDICA22 TORS.—In order to ensure nationwide comparability

23 of performance data, the Secretary of Labor and the

24 Secretary of Education, in collaboration with the

25 States and with representatives of business and in26 dustry, employees, educational agencies, service pro-
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1 viders, participants, and other interested parties,

2 shall promulgate technical definitions of each of the

3 core indicators described in titles II through IV of

4 this Act and in title I of the Vocational Rehabilita5 tion Act. Such definitions shall be used under this Act

6 in measuring performance.

7 (c) EXPECTED LEVELS OF PERFORMANCE.—

8 (1) IN GENERAL.—(A) Each State shall identify

9 the level of performance, consistent with State goals

10 described under section 104, that is expected for local

11 workforce development areas and other applicable

12 local administrative entities under this Act. In deter13 mining such levels, the State shall take into account

14 the world class levels identified under paragraph (2),

15 and shall initially develop baseline levels of perform16 ance upon which States will measure continuous im17 provement.

18 (B) The Governor, through the collaborative

19 process, may adjust the expected level of performance

20 with respect to each local area taking into account

21 specific economic, demographic, and geographic fac22 tors, and the characteristics of the population to be

23 served.

24 (2) WORLD CLASS LEVELS OF PERFORMANCE.—

25 In order to encourage high levels of performance and
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1 advance the Nation’s competitiveness in the global

2 economy, the Secretary of Labor and the Secretary of

3 Education, in collaboration with the States and with

4 representatives of business and industry, employees,

5 educational agencies, service providers, participants,

6 and other interested parties, shall identify world class

7 levels of performance with respect to appropriate core

8 indicators selected from among the core indicators de9 scribed in titles II through IV and in title I of the

10 Vocational Rehabilitation Act of 1973. Where applica11 ble, such world class standards shall reflect industry12 recognized skill standards and the National Edu13 cation Goals.

14 (d) REPORT ON PERFORMANCE.—

15 (1) IN GENERAL.—The State shall report to the

16 Secretary of Labor and the Secretary of Education,

17 the levels of performance achieved by local workforce

18 development areas and other applicable local admin19 istrative entities with respect to the indicators identi20 fied pursuant to subsection (b)(1) for each program

21 year. The Secretaries shall make such information

22 available to the general public through publication

23 and other appropriate methods, and shall disseminate

24 State-by-State comparisons, and comparisons with

25 other industrialized nations (where appropriate).
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1 (2) REPORTING OPTIONS.—In the collection and

2 reporting of such data, States are encouraged to uti3 lize administrative reporting data on quarterly earn4 ings, establishment and industry affiliation, and geo5 graphic location of employment, such as unemploy6 ment insurance wage-data records.

7 (e) CONSEQUENCES FOR POOR PERFORMANCE.—

8 (1) CRITERIA.—The Governor, through the col9 laborative process, shall establish criteria for deter10 mining whether local workforce development areas

11 and other applicable local administrative entities

12 have failed to meet expected levels of performance with

13 respect to programs under this Act.

14 (2) CONSEQUENCES FOR POOR PERFORMANCE.—

15 (A) STATE CONSEQUENCES.—If a State

16 fails to meet expected levels of performance for a

17 program for any program year as established

18 pursuant to subsection (a), the Secretary of Edu19 cation or the Secretary of Labor, as appropriate

20 to the particular program, may provide tech21 nical assistance, including assistance in the de22 velopment of a performance improvement plan.

23 If such failure continues for a second consecutive

24 year, the appropriate Secretary may reduce by

25 not more than 5 percent, the amount of the grant
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1 that would (in the absence of this paragraph) be

2 payable to the State under such program for the

3 immediately succeeding program year. Such pen4 alty shall be based on the degree of failure to

5 meet expected levels of performance.

6 (B) LOCAL CONSEQUENCES.—(i) If a local

7 workforce development area, or other applicable

8 local administrative entity, fails to meet expected

9 levels of performance for a program for any pro10 gram year under the criteria established in

11 paragraph (1), the Governor, through the collabo12 rative process, may provide technical assistance,

13 including the development of a performance im14 provement plan.

15 (ii) If such failure continues for a second

16 consecutive year, the Governor may take correc17 tive actions, such as the withholding of funds, the

18 redesignation of a local administrative entity, or

19 such other actions as the Governor, through the

20 collaborative process, determines are appropriate,

21 consistent with State law, section 104(c)(3) of

22 this Act, and the requirements of this Act.
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1 Subtitle B—Amendments to

2 Wagner-Peyser Act

3 SEC. 131. GENERAL PROGRAM REQUIREMENTS.

4 (a) DEFINITIONS.—Section 2 of the Act of June 6,

5 1933 (commonly known as the ‘‘Wagner-Peyser Act’’) (29

6 U.S.C. 49a) is amended—

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

8 Partnership Act’’ and inserting ‘‘Consolidated and

9 Reformed Education, Employment, and Rehabilita10 tion Systems Act’’;

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

12 ‘‘(2) the term ‘local workforce development board’

13 means a local workforce development board estab14 lished under title I of the Consolidated and Reformed

15 Education, Employment, and Rehabilitation Systems

16 Act;’’;

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

18 ‘‘(4) the term ‘local workforce development area’

19 means a local workforce development area established

20 under title I of the Consolidated and Reformed Edu21 cation, Employment, and Rehabilitation Systems

22 Act;’’;

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

24 the end and inserting a semicolon; and
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1 (5) by adding at the end the following new para2 graphs:

3 ‘‘(6) the term ‘local public service office’ means

4 an office which provides employment services to the

5 general public under a one-stop career center system;

6 and

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

8 means a one-stop career center system established

9 under title I of the Consolidated and Reformed Edu10 cation, Employment, and Rehabilitation Systems

11 Act.’’.

12 (b) DUTIES.—Section 3(a) of such Act (29 U.S.C.

13 49b(a)) is amended to read as follows:

14 ‘‘(a) The Secretary of Labor shall, pursuant to title

15 II of the Wagner-Peyser Act—

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

17 of a nationwide system of labor exchange services for

18 the general public, provided through the one-stop ca19 reer center system, in coordination with the public

20 employment services;

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

22 standards, benchmarks, and continuous improvement

23 models for such nationwide system which ensures pri24 vate sector satisfaction and meets the demands of job25 seekers; and
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1 ‘‘(3) ensure the continued services for individuals

2 receiving unemployment compensation.’’.

3 (c) REQUIREMENTS FOR RECEIPT OF FUNDS.—Sec4 tion 4 of such Act (29 U.S.C. 49c) is amended by striking

5 ‘‘a State shall, through its legislature’’ and inserting ‘‘the

6 Governor of a State, through the collaborative process de7 scribed in title I of the Consolidated and Reformed Edu8 cation, Employment, and Rehabilitation Systems Act’’.

9 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 5

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

11 the period at the end the following: ‘‘, of which not less than

12 25 percent shall be for carrying out both section 14 and

13 title II of this Act’’.

14 (e) USE OF FUNDS UNDER THIS ACT.—Section 7(c)(2)

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

16 ‘‘any of the following provisions of law’’ and all that follows

17 and inserting ‘‘the Consolidated and Reformed Education,

18 Employment, and Rehabilitation Systems Act.’’.

19 (f) STATE PLAN.—Section 8 of such Act (29 U.S.C.

20 49g) is amended—

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

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

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

24 workforce development and literacy plan authorized under

25 title I of the Consolidated and Reformed Education, Em-
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1 ployment, and Rehabilitation Systems Act, detailed plans

2 for carrying out the provisions of this Act within such

3 State.’’;

4 (2) by striking subsections (b), (c), and (e); and

5 (3) by redesignating subsection (d) as subsection

6 (b).

7 (g) ELIMINATION OF FEDERAL ADVISORY COUNCIL.—

8 Section 11 of such Act (29 U.S.C. 49j) is hereby repealed.

9 (h) CONFORMING AMENDMENTS.—

10 (1) After section 2 of such Act insert the follow11 ing new heading:

12 ‘‘TITLE I—GENERAL PROGRAM

13 REQUIREMENTS’’

14 (2) Section 4 of such Act is amended by striking

15 ‘‘United States Employment Service’’ and inserting

16 ‘‘Secretary of Labor’’.

17 (3) Section 7(b)(2) of such Act is amended by

18 striking ‘‘private industry council’’ and inserting

19 ‘‘local workforce development board’’.

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

21 (A) by striking ‘‘United States Employment

22 Service’’ and inserting ‘‘Secretary of Labor’’;

23 and

24 (B) by striking ‘‘Job Training Partnership

25 Act’’ and inserting ‘‘Consolidated and Reformed
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1 Education, Employment, and Rehabilitation

2 Systems Act’’.

3 (5) Section 12 of such Act is amended by strik4 ing ‘‘The Director, with the approval of the Secretary

5 of Labor,’’ and inserting ‘‘The Secretary of Labor’’.

6 SEC. 132. LABOR MARKET INFORMATION.

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

8 ‘‘Wagner-Peyser Act’’; 29 U.S.C. 49), as amended by section

9 131, is further amended by adding at the end the following

10 new title:

11 ‘‘TITLE II—LABOR MARKET

12 INFORMATION

13 ‘‘SEC. 21. PURPOSE.

14 ‘‘The purpose of this title is to ensure a comprehensive

15 and coordinated system of labor market information which

16 will provide locally based, accurate, up-to-date, easily acces17 sible, and user friendly labor market information through

18 a cooperative Federal, State, and local governance structure

19 which includes partnerships with the private sector at all

20 levels.

21 ‘‘SEC. 22. SYSTEM CONTENT.

22 ‘‘The Secretary of Labor, in accordance with the provi23 sions of this title, shall oversee the development, mainte24 nance, and continuous improvement of a nationwide system
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1 of labor market information using data from all available

2 and appropriate sources, which shall include—

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

4 programs and data from administrative reporting

5 systems, which, taken together, shall enumerate, esti6 mate, and project the supply and demand for labor

7 at national, State, and local levels in a timely man8 ner, including data on—

9 ‘‘(A) the demographic characteristics, as de10 fined in title I of the Careers Act, socioeconomic

11 characteristics, and current employment status

12 of the population, including self-employed, part13 time, and seasonal workers, and individuals

14 with severe disabilities;

15 ‘‘(B) job vacancies, education and training

16 requirements, skills, wages, benefits, working con17 ditions, and industrial distribution of occupa18 tions, as well as current and projected employ19 ment opportunities and trends by industry and

20 occupation;

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

22 skills, skill levels, and occupations of the popu23 lation by demographic characteristics such as

24 unemployment insurance wage data records;
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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 on—

12 ‘‘(A) job openings, locations, hiring require13 ments, and application procedures, as well as

14 profiles of employers in the local labor market

15 describing the nature of work performed, employ16 ment requirements, wages, benefits, and hiring

17 patterns;

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

19 and training, skills, skill levels, employment ex20 perience, and employment goals; and

21 ‘‘(C) education courses, training programs,

22 job placement programs, and vocational rehabili23 tation programs (where appropriate), includ24 ing—
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1 ‘‘(i) performance information, such as

2 the ratio of program completion, acquisition

3 of industry-recognized skill standards, job

4 placement, earnings, and the level of satis5 faction of the participants and their em6 ployers; and

7 ‘‘(ii) descriptive information, such as

8 eligibility requirements, costs, financial

9 support, or other supportive services, and

10 other appropriate information which may

11 be available with these courses and pro12 grams;

13 ‘‘(3) technical standards for data and informa14 tion that will—

15 ‘‘(A) ensure compatibility and additivity of

16 data and information from local to State and

17 national levels;

18 ‘‘(B) support standardization and aggrega19 tion of data and information from the adminis20 trative reporting systems of employment-related

21 programs; and

22 ‘‘(C) include—

23 ‘‘(i) classification and coding systems

24 for industries, occupations, skills, programs,

25 and courses;
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1 ‘‘(ii) nationally standardized defini2 tions of terms;

3 ‘‘(iii) a common system for designating

4 geographic areas;

5 ‘‘(iv) quality control mechanisms for

6 data collection and analysis; and

7 ‘‘(v) common schedules for data collec8 tion and dissemination;

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

10 including—

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

12 policymaking;

13 ‘‘(B) the implementation of Federal policies,

14 including the allocation of Federal funds to

15 States and localities and the facilitation of job

16 search and hiring in local labor markets;

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

18 planning and evaluation; and

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

20 ‘‘(5) dissemination mechanisms for data and

21 analysis, including mechanisms which may be stand22 ardized among the States and technical standards in

23 the design of automated databases, and the design of

24 user interfaces and communications protocols;
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1 ‘‘(6) programs of technical assistance for States

2 and localities in the development, maintenance, and

3 utilization of data, analysis, and dissemination mech4 anisms, including assistance in adopting and utiliz5 ing automated systems and improving the access,

6 through electronic and other means, of youth, adults,

7 and employers to labor market information for local8 ities, States, and the Nation;

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

10 which may be carried out by States and other public

11 or private entities, on ways to improve the products

12 and processes authorized in this title; and

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

14 allow for the continuous monitoring of the progress of

15 the labor market information system at national,

16 State, and local levels.

17 ‘‘SEC. 23. FEDERAL RESPONSIBILITIES.

18 ‘‘(a) IN GENERAL.—The Nation’s labor market infor19 mation system shall be planned, administered, overseen,

20 and evaluated by a cooperative governance structure involv21 ing the Federal Government and the States.

22 ‘‘(b) DUTIES.—The Secretary, with respect to data col23 lection, analysis, and dissemination of labor market infor24 mation, shall carry out the following duties:
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1 ‘‘(1) Ensure that all statistical and administra2 tive data collection activities within the Department

3 of Labor, including the Employment and Training

4 Administration, Veterans’ Employment and Training

5 Service, Employment Standards Administration, and

6 Occupational Health and Safety Administration, are

7 consistent with those of the Bureau of Labor Statis8 tics.

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

10 agencies such as the Employment and Training Ad11 ministration to work with the Bureau of Labor Sta12 tistics in the collection, analysis and, particularly, in

13 the dissemination of labor market information, and

14 in the provision of training and technical assistance

15 to users of information, including the States, employ16 ers, youth, and adults.

17 ‘‘(3) In cooperation with other Federal agencies,

18 including but not limited to the Departments of Com19 merce, Defense, Treasury, Education, Health and

20 Human Services, Agriculture, Veterans’ Affairs, and

21 the Office of Management and Budget, establish and

22 maintain mechanisms for ensuring complementarity

23 and nonduplication in the development and operation

24 of statistical and administrative data collection ac-
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1 tivities, in order to ensure a comprehensive labor

2 market information system.

3 ‘‘(4) Actively seek the participation of other Fed4 eral agencies, particularly the National Center for

5 Education Statistics and the Division of Adult and

6 Vocational Education, and the Rehabilitation Serv7 ices Administration of the Department of Education,

8 the Veterans’ Employment and Training Service of

9 the Department of Labor and the Department of Vet10 erans’ Affairs with respect to vocational rehabilitation

11 programs in the design and provision of standardized

12 information to the States to support section 22(2),

13 and in the dissemination of labor market informa14 tion.

15 ‘‘(5) Establish confidentiality standards for the

16 labor market information system at national, State,

17 and local levels, including such provisions as may be

18 necessary, to be taken in coordination with the States,

19 to ensure that privacy and confidentiality protections

20 are guaranteed with respect to individuals and firm

21 data.

22 ‘‘(c) ADDITIONAL DUTIES.—The Secretary, in collabo23 ration with the Bureau of Labor Statistics, with the assist24 ance of other agencies of the Department where appropriate,

25 shall—
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1 ‘‘(1) establish and maintain, with the coopera2 tion of the States, elements of the system described in

3 sections 22(1) and 22(3);

4 ‘‘(2) develop and promulgate standards, defini5 tions, formats, collection methodologies, and other nec6 essary system elements for the use of the States in

7 their assembling and presentation of the employment

8 information specified in section 22(2);

9 ‘‘(3) eliminate gaps and duplication in statis10 tical undertakings, with the systemization of wage

11 surveys as an early priority;

12 ‘‘(4) recommend any needed improvements in

13 administrative reporting systems to support the devel14 opment of labor market information from their data;

15 and

16 ‘‘(5) ensure that—

17 ‘‘(A) data are sufficiently timely and locally

18 detailed for uses including those specified in sec19 tion 22(4);

20 ‘‘(B) administrative records are standard21 ized to facilitate the aggregation of data from

22 local to State and national levels and to support

23 the creation of new statistical series from pro24 gram records; and
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1 ‘‘(C) paperwork and reporting requirements

2 on employers and individuals are reduced.

3 ‘‘SEC. 24. ANNUAL PLAN.

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

5 through the Bureau of Labor Statistics, and in consultation

6 with other appropriate Federal agencies, shall prepare an

7 annual plan, which shall be the operational mechanism for

8 achieving a cooperative Federal/State governance structure

9 for labor market information. The annual plan shall pro10 vide the verbal justification for the Department of Labor’s

11 budget request to Congress by describing the activities of

12 the Bureau, other agencies of the Department of Labor, and

13 other Federal agencies with regard to data collection, analy14 sis, and dissemination of labor market information for fis15 cal years succeeding the fiscal year in which the plan is

16 developed and shall include—

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

18 needs, including the identification of new employment

19 issues and the attendant emergence of new needs, on

20 the part of Congress, the States, employers, youth,

21 and adults, for data, analysis, and dissemination;

22 ‘‘(2) an evaluation, including the results of objec23 tive measures, of the performance of the labor market

24 information system in meeting these needs and the

25 steps to be taken to overcome deficiencies;
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1 ‘‘(3) a summary of ongoing data programs and

2 activities under section 22 and a description of the

3 development of new data programs, analytical tech4 niques, definitions and standards, dissemination

5 mechanisms, training and technical assistance, gov6 ernance mechanisms, and funding processes to meet

7 new needs; and

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

9 to the States of meeting contract requirements for

10 data production under this title, including a descrip11 tion of how the Secretary’s requested budget will cover

12 these costs.

13 ‘‘(b) COOPERATION WITH THE STATES.—The Sec14 retary shall involve the States with the Bureau of Labor

15 Statistics in a cooperative manner in the development of

16 the plan by—

17 ‘‘(1) establishing procedures and mechanisms for

18 holding formal and periodic consultations on products

19 and administration of the system, at least once each

20 quarter, with representatives of the States from each

21 of the 10 Federal regions of the Department of Labor,

22 elected by and from among the State directors of labor

23 market information, according to a process set forth

24 by the Secretary; and
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1 ‘‘(2) incorporating in the annual plan, for its

2 submission to Congress, the results of these consulta3 tions, including any supplementary or dissenting

4 views from representatives of the States.

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

6 FEDERAL EMPLOYEES.—For purposes of the development

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

8 Management and Budget Circular A–11, the representatives

9 of the States, elected in accordance with subsection (b)(1),

10 shall be considered to be employees of the Department of

11 Labor.

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

13 ‘‘(a) DESIGNATION OF STATE AGENCY.—The Governor

14 of each State shall designate a single State agency to be

15 the agency responsible for the management and oversight

16 of a statewide comprehensive labor market information sys17 tem and for the State’s participation in the cooperative

18 Federal/State governance structure for the nationwide labor

19 market information system.

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

21 assistance under this Act, the State agency shall—

22 ‘‘(1) develop, maintain, and continuously im23 prove a comprehensive labor market information sys24 tem, which shall—
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1 ‘‘(A) include all the elements specified in

2 section 22; and

3 ‘‘(B) be responsive to the needs of the State

4 and its localities for planning and evaluative

5 data, including employment and economic anal6 yses and projections, as required by this Act, the

7 Consolidated and Reformed Education, Employ8 ment, and Rehabilitation Systems Act, the So9 cial Security Act, and other provisions of law

10 under which Congress has required the use of

11 labor market information;

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

13 grant responsibilities for data collection, analysis,

14 and dissemination;

15 ‘‘(3) conduct such other data collection, analysis,

16 and dissemination activities as will ensure com17 prehensive State and local labor market information;

18 ‘‘(4) actively seek the participation of other State

19 and local agencies, with particular attention to State

20 education, economic development, human services,

21 and welfare agencies, in data collection, analysis, and

22 dissemination activities in order to ensure

23 complementarity and compatibility among data; and

24 ‘‘(5) participate in the development of the na25 tional annual plan.
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1 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this Act

2 shall be construed as limiting the State agency’s ability to

3 conduct additional data collection, analysis, and dissemi4 nation activities with State funds or with Federal funds

5 from sources other than this Act.’’.

6 Subtitle C—Worker Rights

7 SEC. 141. REQUIREMENTS.

8 The following requirements shall apply to programs

9 under titles II and III of this Act:

10 (1) PROHIBITION ON DISPLACEMENT.—A partici11 pant in a program under titles II or III shall not dis12 place any currently employed worker (including a

13 partial displacement, such as a reduction in the hours

14 of non-overtime work, wages, or employment benefits).

15 (2) PROHIBITION ON IMPAIRMENT OF CON16 TRACTS.—A program under title II or III shall not

17 impair existing contracts for services or collective bar18 gaining agreements, and no such program that would

19 be inconsistent with the terms of a collective bargain20 ing agreement shall be undertaken without the written

21 concurrence of the labor organization and employer

22 concerned.

23 (3) PROHIBITION ON REPLACEMENT.—A partici24 pant in a program under title II or III shall not be

25 employed—
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1 (A) when any other individual is on tem2 porary layoff, with the clear possibility of recall,

3 from the same or any substantially equivalent

4 job with the participating employer; or

5 (B) when the employer has terminated the

6 employment of any regular employee or other7 wise reduced the workforce of the employer with

8 the intention of filling the vacancy so created

9 with the student.

10 (4) WORKPLACES.—A participant in a program

11 under title II or III shall be provided with adequate

12 and safe equipment and safe and healthful workplaces

13 in conformity with all health and safety requirements

14 of Federal, State, and local law.

15 (5) EFFECT ON OTHER LAWS.—Nothing in this

16 Act shall be construed to modify or affect any Federal

17 or State law prohibiting discrimination on the basis

18 of race, religion, color, ethnicity, national origin, gen19 der, age, or disability, or to modify or affect any

20 right to enforcement of this Act that may exist under

21 other Federal laws, except as expressly provided by

22 this Act.
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1 TITLE II—YOUTH DEVELOPMENT

2 AND CAREER PREPARATION

3 CONSOLIDATION GRANT

4 SEC. 201. PURPOSES.

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

6 local communities maximum flexibility in designing

7 workforce preparation programs that—

8 (1) help individuals attain the academic skills,

9 as well as occupational skills, needed to be successful

10 in a global economy and for lifelong learning;

11 (2) best suit the needs of in-school and at-risk

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

13 of State and local employers;

14 (3) promote strong connections between in-school

15 and at-risk programs, to ensure that youth are pre16 pared for good jobs and further education opportuni17 ties, and promote youth development and career prep18 aration programs that provide opportunities for indi19 viduals to receive postsecondary education and occu20 pational training;

21 (4) promote the formation of business and edu22 cation partnerships that are dedicated to linking the

23 worlds of school and work; and

24 (5) promote high academic and occupational

25 standards and quality vocational-technical education,
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1 including improved secondary and postsecondary pro2 grams, by focusing resources on program improve3 ment initiatives that help prepare students for further

4 education and training and high-wage jobs in high5 performance workplaces.

6 SEC. 202. DEFINITIONS.

7 For purposes of this title:

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

9 of a State necessary for the proper and efficient per10 formance of its duties under this title, including su11 pervision, but does not include curriculum develop12 ment activities, personnel development, or research

13 activities.

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

15 strong experience in, and understanding of, all as16 pects of the industry the students are preparing to

17 enter, including planning, management, finances,

18 technical and production skills, underlying principles

19 of technology, labor issues, and health and safety.

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

21 commitment to a program designed to provide stu22 dents with a nonduplicative sequence of progressive

23 coursework in secondary and postsecondary edu24 cation.
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1 (4) The term ‘‘cooperative education’’ means a

2 method of instruction of vocational education for in3 dividuals who, through written cooperative arrange4 ments between the school and employers, receive in5 struction, including required academic courses and

6 related vocational instruction by alternation of study

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

8 alternation shall be planned and supervised by the

9 school and employers so that each contributes to the

10 student’s education and employability. Work periods

11 and school attendance may be on alternate half days,

12 full days, weeks, or other periods of time in fulfilling

13 the cooperative program.

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

15 means programs administered by the State to assist

16 juvenile and adult criminal offenders in correctional

17 institutions in the State, including correctional insti18 tutions operated by local authorities.

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

20 and related or supportive material, including mate21 rials using advanced learning technology, in any oc22 cupational field which is designed to strengthen the

23 academic foundation and prepare individuals for em24 ployment at the entry level or to upgrade occupa25 tional competencies of those previously or presently
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1 employed in any occupational field, and appropriate

2 counseling and guidance material.

3 (7) Except as otherwise provided, the term ‘‘eli4 gible institution’’ means a local educational agency,

5 an area vocational education school, an intermediate

6 educational agency, an institution of higher education

7 (as such term is defined in section 1201(a) of the

8 Higher Education Act of 1965), a State corrections

9 educational agency, or consortia of such entities.

10 (8) The term ‘‘partnership’’ means a local entity

11 that is responsible for local youth development and

12 career preparation programs and may consist of em13 ployers, representatives of local educational agencies

14 and local postsecondary educational institutions (in15 cluding representatives of area vocational education

16 schools, where applicable), local educators (such as

17 teachers, counselors, or administrators), representative

18 employee organizations, and students; and include

19 other entities.

20 (9) The term ‘‘Secretary’’ means the Secretary of

21 Education.

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

23 means an integrated series of courses which are di24 rectly related to the educational and occupational
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1 skills preparation of individuals for jobs, or prepara2 tion for postsecondary education.

3 (11) The term ‘‘single parent’’ means an individ4 ual who—

5 (A) is unmarried or legally separated from

6 a spouse; and

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

8 whom the parent has either custody or joint cus9 tody; or

10 (ii) is pregnant.

11 (12) The term ‘‘special populations’’ includes in12 dividuals with disabilities, economically disadvan13 taged individuals, individuals of limited English pro14 ficiency, and individuals in nontraditional training

15 and employment.

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

17 means a program of study which—

18 (A) combines at least 2 years of secondary

19 and 2 years of postsecondary education in a

20 nonduplicative sequence;

21 (B) integrates academic and vocational in22 struction;

23 (C) provides technical preparation in at

24 least 1 field of engineering technology, applied

25 science, mechanical, industrial, or practical art
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1 or trade, or agriculture, health occupations, or

2 business;

3 (D) builds student competence in mathe4 matics, science, communications, and workplace

5 skills, through applied academics and integrated

6 instruction in a coherent sequence of courses;

7 (E) leads to an associate degree or certifi8 cate in a specific career field;

9 (F) leads to placement in appropriate em10 ployment or further education; and

11 (G) enables a student to fulfill a career

12 pathway plan relating to labor market needs.

13 (14) The term ‘‘vocational education’’ means or14 ganized educational programs offering a sequence of

15 courses which are directly related to the preparation

16 of individuals in paid or unpaid employment in cur17 rent or emerging occupations, including

18 nonbaccalaureate certificate and degree programs and

19 baccalaureate vocational degree programs. Such pro20 grams include competency-based applied learning

21 which contributes to an individual’s academic knowl22 edge, higher-order reasoning, and problem-solving

23 skills, work attitudes, general employability skills,

24 and the occupational-specific skills necessary for eco25 nomic independence as a productive and contributing
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1 member of society. Such term also includes applied

2 technology education.

3 (15) The term ‘‘vocational student organiza4 tions’’ means those organizations for individuals en5 rolled in vocational education programs which engage

6 in activities as an integral part of the instructional

7 program. Such organizations may have State and na8 tional units which aggregate the work and purposes

9 of instruction in vocational education at the local

10 level.

11 Subtitle A—State Funding

12 SEC. 211. NATIONAL AND STATE FUNDING.

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

14 amounts made available under section 4, the Secretary shall

15 reserve 20 percent or $25,000,000, whichever is less, to carry

16 out the provisions of subtitle D.

17 (b) STATE ALLOTMENT.—

18 (1) IN GENERAL.—Of the funds remaining after

19 the reservation under subsection (a), the Secretary

20 shall allot to each State for each fiscal year an

21 amount based on that State’s allotment percentage.

22 (2) ALLOTMENT PERCENTAGE.—(A) Except as

23 provided in subparagraph (B), the allotment percent24 age of a State for a fiscal year shall be the same per-
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1 centage of funds allotted to the State under this sec2 tion in the preceding fiscal year.

3 (B) The allotment percentage of a State for fiscal

4 year 1996 shall be the percentage of funds allotted to

5 the State in fiscal year 1995 under—

6 (i) section 101 or 101A of the Carl D. Per7 kins Vocational and Applied Technology Edu8 cation Act as such Act was in effect on the day

9 before the date of the enactment of this Act; and

10 (ii) the funding allotted in fiscal year 1995

11 under section 252 and 262 of the Job Training

12 Partnership Act as such Act was in effect on the

13 day before the date of the enactment of this Act.

14 (3) STATE MINIMUM.—Notwithstanding any

15 other provision of law and subject to paragraph (1),

16 any fiscal year for which the amounts appropriated

17 for programs authorized by this title exceed the

18 amounts available for fiscal year 1985, a State shall

19 not receive less than one-quarter of one percent of the

20 amount available for each such program for that fis21 cal year under this subsection. Amounts necessary for

22 increasing such payments to States to comply with

23 the preceding sentence shall be obtained by ratably re24 ducing the amounts to be paid to other States.
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1 (4) DEFINITION.—For the purposes of this sub2 section the term ‘‘State’’ means, in addition to the

3 several States, the District of Columbia, the Common4 wealth of Puerto Rico, the Virgin Islands, Guam,

5 American Samoa, and the Northern Mariana Islands.

6 (c) FUNDING FOR STATE PROGRAMS.—Of the funds al7 lotted to a State under subsection (b) for each fiscal year,

8 the Governor, through the collaborative process, shall—

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

10 local providers;

11 (2) make available not more than 8 percent for

12 State programs described in section 222; and

13 (3) make available not more than 2 percent for

14 administrative purposes.

15 SEC. 212. WITHIN STATE ALLOCATION.

16 (a) IN GENERAL.—From the amounts made available

17 pursuant to section 211(c)(1), the Governor, through the col18 laborative process, shall—

19 (1) allocate to eligible institutions an amount

20 equal to not less than 40 percent of such amount for

21 in-school youth programs described in section 241;

22 (2) allocate to local workforce development

23 boards an amount equal to not less than 40 percent

24 of such amount for at-risk youth programs described

25 in section 245;
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1 (3) provide an amount equal to 10 percent of the

2 remainder to eligible institutions or local workforce

3 development boards; and

4 (4) allocate the remainder of any amounts under

5 this subsection to carry out the purposes of paragraph

6 (1) or (2).

7 (b) WITHIN STATE FORMULA.—

8 (1) ESTABLISHMENT.—The Governor, through

9 the collaborative process, and after consultation with

10 local chief elected officials in the local workforce devel11 opment area and, where appropriate, local educators

12 in such area, shall develop a formula for the alloca13 tion of funds in accordance with paragraphs (1), (2),

14 and (4) of subsection (a). Such formula shall take

15 into account—

16 (A) poverty rates within each local commu17 nity, as determined by the State;

18 (B) the proportion of the State’s youth pop19 ulation residing within each local community;

20 and

21 (C) such other factors as considered appro22 priate.

23 (2) ADDITIONAL FACTORS.—In establishing such

24 formula, the Governor shall ensure that funds are dis25 tributed equitably throughout the State, and that the
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1 factors described in paragraph (1) do not receive dis2 proportionate weighting.

3 (c) MINIMUM GRANT AMOUNTS.—

4 (1) LOCAL EDUCATIONAL AGENCIES.—A local

5 educational agency or consortium of such agencies

6 that receives a subgrant from a State under this sub7 title for any fiscal year shall receive not less than

8 $15,000.

9 (2) POSTSECONDARY INSTITUTIONS.—A post10 secondary institution or consortium of such institu11 tions that receives a subgrant from a State under this

12 subtitle for any fiscal year shall receive not less than

13 $50,000.

14 (3) LOCAL DEVELOPMENT BOARD.—A local devel15 opment board that receives a subgrant from a State

16 under this subtitle for any fiscal year shall receive not

17 less than $15,000.

18 (4) SECONDARY-POSTSECONDARY CONSORTIA.—

19 One or more local educational agencies and one or

20 more eligible institutions may enter into a consor21 tium agreement. A consortium formed pursuant to

22 this paragraph that receives a subgrant from a State

23 under this subtitle shall receive not less than $50,000

24 in any fiscal year.
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1 (d) FUNDS TO CONSORTIUM.—Funds allocated to a

2 consortium formed to meet the minimum grant require3 ments of this section shall be used only for purposes and

4 activities that are mutually beneficial to all members of the

5 consortium. Such funds may not be reallocated to individ6 ual members of the consortium for purposes or activities

7 benefiting only one member of the consortium.

8 (e) WAIVER.—The State may waive the application of

9 subsection (c) in any case in which a grant recipient—

10 (1) is located in a rural, sparsely-populated

11 area; and

12 (2) demonstrates an inability to enter into a

13 consortium for purposes of providing services under

14 this title.

15 Subtitle B—State Organizational,

16 Planning, and Reporting Re17 sponsibilities

18 SEC. 221. STATE PLAN.

19 In addition to the requirements described in title I,

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

21 under this title shall, as part of the State Workforce Devel22 opment and Literacy Plan under title I, submit to the Sec23 retary of Education information that includes—

24 (1) a description of how the State will adopt, de25 velop, or assist local providers to adopt or develop
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1 model curricula and innovative instructional meth2 odologies, to be used in the postsecondary, secondary,

3 and where possible, the elementary grades, and in

4 programs for at-risk youth that integrate academic,

5 vocational, and work-based learning, stressing applied

6 and contextual learning, and promote career aware7 ness;

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

9 and improve career exploration and guidance counsel10 ing for students in the elementary and secondary

11 grades, which may include linkages to career explo12 ration, guidance counseling and labor market infor13 mation services outside of the school system and shall

14 describe how the State will effectively demonstrate the

15 system of career preparation for youth, which in16 cludes elements such as professional development, and

17 secondary-postsecondary collaborations;

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

19 integrating academic, vocational, and work-based

20 learning, including a description of how the State

21 will promote collaboration between secondary and

22 postsecondary occupational and academic programs

23 and institutions;

24 (4) a description of the State’s plan to develop

25 the academic and occupational skills of students and
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1 provide the attainment of challenging vocational-tech2 nical education standards, including industry-ap3 proved skill standards and workplace competencies,

4 and a description of how the State will develop a

5 State process for issuing skill certificates that, to the

6 extent feasible, are consistent with the skill standards

7 certification systems endorsed by the National Skill

8 Standards Board;

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

10 the active involvement of business (including small11 and medium-sized businesses) in the planning, devel12 opment, and implementation of youth development

13 and career preparation programs authorized under

14 this title; and

15 (6) a description of how the State will coordinate

16 the Goals 2000: Educate America Act, and Improving

17 America’s Schools Act of 1994, and other State edu18 cation improvement plans.

19 SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.

20 (a) GENERAL AUTHORITY.—From amounts made

21 available to a State under section 211, each State shall con22 duct State programs and activities.

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

24 activities described in subsection (a) shall include an assess-
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1 ment of programs conducted with assistance under this

2 title, including the development of—

3 (1) performance standards and measures for

4 such programs; and

5 (2) program improvement and accountability

6 with respect to such programs.

7 (c) ADDITIONAL USES OF FUNDS.—The programs and

8 activities described in subsection (a) may include—

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

10 (2) support for workforce preparation programs

11 for single parents, displaced homemakers, and single

12 pregnant women;

13 (3) support for corrections vocational education;

14 (4) professional development activities for voca15 tional teachers, academic teachers, school administra16 tors, counselors, workplace mentors, and local provid17 ers regarding integration of vocational, academic, and

18 work-based curricula, including—

19 (A) inservice and preservice training of

20 teachers and faculty in state-of-the-art programs

21 and techniques and nontraditional training and

22 employment; and

23 (B) support of public teacher-education pro24 grams to ensure vocational teachers stay current
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1 with the needs, expectations, and methods of in2 dustry to meet employer standards;

3 (5) development, dissemination, and field testing

4 of curricula, especially—

5 (A) curricula that integrate vocational, aca6 demic, and work-based methodologies;

7 (B) curricula that provide a coherent se8 quence of courses through which academic and

9 occupational skills may be measured; and

10 (C) curricula for work-based learning;

11 (6) leadership and instructional programs in

12 technology education;

13 (7) data collection, including support for man14 agement information systems as defined in section

15 109;

16 (8) support for 1-stop career centers described in

17 section 107;

18 (9) support for cooperative education and family

19 and consumer science programs;

20 (10) creative use of technologies, including pro21 fessional development in the use of such technologies

22 for instructional purposes and to increase counselor’s

23 and students’ knowledge of, and use of, additional in24 formation resources to make career pathways and

25 coursework decisions;
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1 (11) support for vocational student organiza2 tions; and

3 (12) improving career guidance and counseling.

4 SEC. 223. INCENTIVE AWARDS.

5 The State, may, from the amount made available

6 under section 211(c)(2) for any fiscal year make perform7 ance awards to 1 or more eligible institutions or local pro8 viders that have—

9 (1) exceeded in the performance goals described

10 in section 224;

11 (2) implemented exemplary youth development

12 and career preparation programs at the local level in

13 accordance with the purposes described in section 201;

14 or

15 (3) provided exemplary education services and

16 activities for at-risk youth.

17 SEC. 224. CORE STANDARDS, PERFORMANCE GOALS, AND

18 MEASURES.

19 (a) GENERAL AUTHORITY.—

20 (1) STANDARDS AND MEASURES.—In addition to

21 the State’s goals described in section 104, each State

22 receiving funds under this title shall have developed

23 or shall develop and implement a statewide system of

24 core standards and measures of performance for youth
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1 development and career preparation programs in co2 ordination with other titles of this Act.

3 (2) STATEWIDE SYSTEM.—Each statewide sys4 tem, in accordance with the provisions of section 104,

5 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, quan12 tifiable, 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 com23 petency gains, including progress in the achievement

24 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-recog10 nized skill standards (endorsed by the Na11 tional Skill Standards Board), which may

12 include the receipt of a skill certificate in

13 the occupation for which the student has

14 been prepared;

15 (B) retention in school or completion of sec16 ondary school or the equivalent;

17 (C) placement into additional training or

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

20 (D) employment retention and earnings lev21 els;

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

23 (3) success of special populations in meeting

24 these performance standards, including nontradi25 tional training and employment.
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1 (c) PERFORMANCE GOALS AND MEASURES.—The Gov2 ernor shall, acting through the collaborative process, work

3 to ensure that the performance goals are consistent with

4 challenging State academic standards, industry-recognized

5 skill standards once established by the National Skill

6 Standards Board and the State goals established under this

7 title.

8 Subtitle C—Subgrants for In-School

9 and At-Risk Youth

10 SEC. 231. PARTNERSHIP AGREEMENTS.

11 (a) PARTNERSHIP.—A local workforce development

12 board and an eligible institution that desires to receive a

13 subgrant from a State under this subtitle in any fiscal year

14 shall form a partnership for the purposes of collaborative

15 planning, coordination of in-school and at-risk programs,

16 and effective public participation.

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

18 (a) shall, in collaboration, develop and submit for approval

19 to the Governor through the State collaborative process a

20 comprehensive youth development and career preparation

21 plan for in-school and at-risk youth. Such plan shall de22 scribe how the youth development and career preparation

23 system meets the requirements of sections 241 and 245 and

24 shall address comments received through the collaborative

25 process. The partnership shall assure the involvement of
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1 parents, teachers, and the community in the collaborative

2 planning process which involves design of the standards,

3 strategies, articulation, and cooperative agreements, assess4 ments, and evaluation of program activities.

5 SEC. 232. DISTRIBUTION OF FUNDS.

6 (a) IN-SCHOOL PROGRAMS.—Based upon an applica7 tion submitted by the partnership to the Governor through

8 the State collaborative process, a State shall distribute

9 funds made available in a fiscal year as provided in section

10 212(a)(1) to eligible institutions to carry out in-school

11 youth programs described in section 241.

12 (b) AT-RISK YOUTH PROGRAMS.—A State shall dis13 tribute funds made available in any fiscal year as provided

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

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

16 245.

17 CHAPTER 1—IN-SCHOOL YOUTH

18 SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH.

19 (a) GENERAL AUTHORITY.—Each eligible institution

20 that receives a subgrant under this chapter shall use funds

21 provided under such grant to improve youth development

22 and career preparation programs.

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

24 provided by a State pursuant to section 212(a)(1) shall be
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1 used to provide in-school youth development and career

2 preparation programs that—

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

4 effective;

5 (2) integrate academic, vocational, and work6 based learning, stressing applied and contextual

7 learning, through a coherent sequence of courses so

8 that youth achieve both academic and occupational

9 competencies;

10 (3) involve employers in the design and imple11 mentation of programs, including the development of

12 curriculum;

13 (4) establish effective linkages between at-risk

14 youth programs, secondary and postsecondary edu15 cation;

16 (5) provide work-based learning experiences with

17 adult mentoring where appropriate; and, to the extent

18 possible, with strong experiences and understanding

19 of all aspects of an industry appropriately tied to the

20 student’s career major; and

21 (6) provide career exploration, including explo22 ration in the practical arts or trade, career awareness

23 and career guidance opportunities, beginning in the

24 earliest grades possible.
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1 (c) ADDITIONAL USES OF FUNDS.—In carrying out

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

3 schools for in-school youth activities such as—

4 (1) purchasing, leasing, or upgrading of equip5 ment, including instructional aides and material;

6 (2) inservice training of vocational instructors,

7 academic instructors, employers, and workplace men8 tors, to integrate academic and vocational education,

9 and provide high-quality work-based learning experi10 ences;

11 (3) tech-prep education programs;

12 (4) supplementary services designed to meet the

13 needs of special populations;

14 (5) adaptation of equipment;

15 (6) apprenticeship programs;

16 (7) comprehensive mentoring programs in insti17 tutions of higher education offering comprehensive

18 programs in teacher preparation which seek to fully

19 use the skills and work experience of individuals cur20 rently or formerly employed in business and industry

21 who are interested in becoming classroom instructors

22 and to meet the need of vocational educators who wish

23 to upgrade their teaching competencies;
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1 (8) local education and business partnerships for

2 developing and implementing workforce preparation

3 systems;

4 (9) support for vocational student organizations;

5 and

6 (10) establishing effective activities and proce7 dures to enable program participants and their par8 ents to participate directly in decisions that influence

9 the character of programs, including providing infor10 mation and assistance needed for informed and effec11 tive participation.

12 CHAPTER 2—AT-RISK YOUTH

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

14 (a) GENERAL AUTHORITY.—Each local workforce de15 velopment board that receives a subgrant under this chapter

16 shall use funds provided under such grant to improve youth

17 development and career preparation programs.

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

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

20 used to provide youth development and career preparation

21 programs for at-risk youth that—

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

23 effective;

24 (2) integrate academic, vocational, and work25 based learning, stressing applied and contextual
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1 learning, through a coherent sequence of courses so

2 that students and at-risk youth achieve both academic

3 and occupational competencies;

4 (3) involve employers in the design and imple5 mentation of programs, including the development of

6 curriculum;

7 (4) establish effective linkages between at-risk

8 youth programs, and secondary and postsecondary

9 education;

10 (5) provide work-based learning experiences, in11 cluding experiences in the practical arts or trade, if

12 applicable;

13 (6) provide adult mentoring as a core component

14 of the program;

15 (7) provide an objective assessment of the aca16 demic and skill levels, and service needs of each par17 ticipant; and

18 (8) provide career exploration and counseling.

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

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

21 programs, as selected by the local workforce development

22 board, may provide activities such as—

23 (1) tutoring, study skills training and instruc24 tion leading to completion of high school;

25 (2) alternative high school services;
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1 (3) training or education that is combined with

2 community service, and service learning opportuni3 ties;

4 (4) paid work experience, including limited in5 ternships, entry-employment experience programs,

6 and summer employment opportunities that are inte7 grated with the year-round school-based or alternative

8 school-based program;

9 (5) drop-out prevention strategies and strategies

10 to encourage at-risk youth to reenter high school or al11 ternative high school programs and programs that en12 courage pregnant and parenting youth to stay in

13 school;

14 (6) preemployment and work maturity skills

15 training;

16 (7) peer-centered activities encouraging respon17 sibility and other positive social behaviors during

18 non-school hours; and

19 (8) training-related supportive services.

20 (d) LIMITATIONS ON USE OF FUNDS.—Not more than

21 10 percent of the funds provided under this chapter to a

22 local workforce development board may be used for adminis23 trative purposes.
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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 with

6 eligible providers utilizing service methodologies with dem7 onstrated effectiveness in serving the workforce preparation

8 needs of at-risk youth, for the purpose of providing services

9 under this chapter.

10 (b) ELIGIBLE PROVIDERS.—For purposes of this chap11 ter, eligible providers may include—

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

13 section 202(7);

14 (2) a unit of local government;

15 (3) a private, nonprofit organization (including

16 community-based organizations);

17 (4) a private, for profit entity;

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

19 (6) other organizations or entities of dem20 onstrated effectiveness and approved by the local

21 Board.

22 Subtitle D—National Programs

23 SEC. 251. RESEARCH ACTIVITIES.

24 (a) GENERAL AUTHORITY.—

25 (1) IN GENERAL.—In order to carry out the pur26 pose of this title, the Secretary may, directly or
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1 through grants, contracts, or cooperative agreements,

2 carry out research, development, dissemination, rep3 lication of model programs, demonstration programs,

4 evaluation, capacity-building, and technical assist5 ance activities with regard to the services and activi6 ties carried out under this title.

7 (2) INFORMATION SYSTEMS.—Activities carried

8 out under this section may include support for occu9 pational and career information systems.

10 (b) DISSEMINATION.—The Secretary shall establish a

11 system for disseminating information resulting from re12 search and development activities carried out under this

13 title.

14 SEC. 252. ASSESSMENT AND DATA COLLECTION OF YOUTH

15 DEVELOPMENT AND CAREER PREPARATION

16 PROGRAMS.

17 (a) IN GENERAL.—The Secretary, through the Office

18 of Educational Research and Improvement, shall conduct

19 a biennial assessment of services and activities assisted

20 under this title, through studies and analyses conducted

21 independently through competitive awards.

22 (b) CONTENTS.—The assessment required under sub23 section (a) shall examine the extent to which services and

24 activities assisted under this title have achieved their in-
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1 tended purposes and results, including the extent to

2 which—

3 (1) State and local services and activities have

4 developed, implemented, or improved systems estab5 lished under this title;

6 (2) services and activities assisted under this

7 title succeed in preparing students, including students

8 who are members of special populations, for post9 secondary education, further learning, or entry into

10 high-skill, high-wage careers;

11 (3) students who participate in services and ac12 tivities supported under this title succeed in meeting

13 challenging State academic and industry-based skill

14 standards; and

15 (4) the system improvement, participation, local

16 and State assessment, and accountability provisions

17 of this title, including the performance goals and in18 dicators established under section 224, are effective.

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

20 (a) GENERAL AUTHORITY.—

21 (1) NATIONAL CENTER.—The Secretary may,

22 through a grant or contract, establish one or more na23 tional centers for conducting applied research, devel24 opment, dissemination, and technical assistance ac25 tivities which would focus on improving the career
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1 preparation of individuals. The Secretary shall con2 sult with States prior to establishing one or more

3 such centers.

4 (2) ELIGIBILITY.—Entities eligible to receive

5 funds under this section are institutions of higher

6 education, other public or private nonprofit organiza7 tions or agencies, and consortia of such institutions,

8 organizations, or agencies.

9 (3) PREVIOUS CENTER.—The national center in

10 existence on the day before the date of the enactment

11 of the this Act shall continue to receive assistance

12 under this section in accordance with the terms of its

13 current award.

14 (b) ACTIVITIES.—

15 (1) IN GENERAL.—The applied research, develop16 ment, dissemination, and technical assistance activi17 ties carried out by the national center or centers shall

18 include—

19 (A) activities that assist recipients of funds

20 under this title to meet the requirements of sec21 tion 224;

22 (B) research and development of activities

23 that combine academic, vocational education,

24 and work-based learning;
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1 (C) developing new models for remediation

2 of basic academic skills which incorporate appro3 priate instructional methods;

4 (D) identifying ways to establish links

5 among educational and job training activities at

6 the State and local levels;

7 (E) new models for career guidance, career

8 information, and counseling services;

9 (F) studies providing longitudinal informa10 tion or formative evaluation on programs funded

11 under this title, including an analysis of the ef12 fectiveness of youth development and career prep13 aration programs in serving at-risk youth; and

14 (G) such other activities as the Secretary

15 determines to be appropriate to achieve the pur16 pose of this Act.

17 (2) DUTIES.—The center or centers shall—

18 (A) provide assistance to States and local

19 recipients in developing and using systems of

20 performance measures and standards for im21 provement of programs and services; and

22 (B) provide technical assistance and out23 reach.

24 (3) SUMMARY.—The center or centers conducting

25 the activities described in paragraph (1) shall annu-
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1 ally prepare a summary of key research findings of

2 such center or centers and shall submit copies of the

3 summary to the Secretaries of Education and Labor.

4 The Secretary shall submit that summary to the Com5 mittee on Labor and Human Resources of the Senate,

6 and the Committee on Economic and Educational

7 Opportunities of the House of Representatives.

8 (c) CLEARINGHOUSE.—The center or centers shall

9 maintain a clearinghouse that will provide data and infor10 mation to Federal, State, and local organizations and agen11 cies about the condition of systems and programs funded

12 under this title.

13 TITLE III—ADULT EMPLOYMENT

14 AND TRAINING CONSOLIDA15 TION GRANT

16 Subtitle A—Adult Employment and

17 Training Consolidation Grant

18 SEC. 301. PURPOSE.

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

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

21 training, and related assistance designed to facilitate the

22 transition of adults into productive, high skills, private sec23 tor employment.
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1 SEC. 302. AUTHORIZATION.

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

3 accordance with the requirements of section 102 submits to

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

5 as the ‘‘Secretary’’) a State workforce development and lit6 eracy plan under section 104, the Secretary shall provide

7 a grant to the State for the purpose of providing employ8 ment, job training, and related assistance for adults in the

9 State.

10 (b) AMOUNT.—The grant shall consist of the allotment

11 determined for the State under section 303.

12 SEC. 303. ALLOTMENT AMONG STATES.

13 (a) IN GENERAL.—Of the amount appropriated pursu14 ant to section 4(a)(2) to carry out this title for a fiscal

15 year, the Secretary shall—

16 (1) allot 85 percent of such amounts in accord17 ance with subsection (b); and

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

19 (b) ALLOTMENT AMONG STATES.—

20 (1) RESERVATION FOR THE TERRITORIES.—Of

21 the amount allotted under subsection (a)(1), the Sec22 retary shall allot not more than one quarter of one

23 percent among the Commonwealth of the Northern

24 Mariana Islands, American Samoa, Guam, and the

25 Virgin Islands.
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1 (2) STATES.—After determining the amount to

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

3 allot the remaining amount to the remaining States

4 so that each State receives an amount that bears the

5 same proportion to such remaining amount as—

6 (A) the amount allotted to each such State

7 from allotments under sections 202 and 302 of

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

9 1602 and 1652) (as in effect before the date of

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

11 bears to

12 (B) the aggregate of the amounts allotted to

13 all such States from allotments under such sec14 tions for such fiscal year.

15 Notwithstanding any other provision of law and sub16 ject to paragraph (1), in any fiscal year for which the

17 amounts appropriated for programs authorized by

18 title III exceed the amounts so available for fiscal

19 year 1985, no State shall receive less than one-quarter

20 of one percent of the amount available for each such

21 program for that fiscal year under this subsection.

22 Amounts necessary for increasing such payments to

23 States to comply with the preceding sentence shall be

24 obtained by ratably reducing the amounts to be paid

25 to other States.
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1 SEC. 304. ALLOCATION WITHIN STATES.

2 (a) RESERVATIONS FOR STATE ACTIVITIES.—

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

4 shall reserve not more than 20 percent of the amount

5 allotted to the State under section 303(b) for a fiscal

6 year for statewide activities for employment, job

7 training, and related assistance for adults.

8 (2) MANDATORY ACTIVITIES.—Such activities

9 shall include—

10 (A) rapid response activities; and

11 (B) additional assistance to areas that expe12 rience disasters, mass layoffs or plant closings,

13 or other events which precipitate substantial in14 creases in the number of unemployed workers, to

15 be expended in accordance with the local plan of

16 the relevant workforce development area.

17 (3) DISCRETIONARY ACTIVITIES.—

18 (A) IN GENERAL.—Such activities may in19 clude—

20 (i) subject to subparagraph (B), ad21 ministration by the State of programs

22 under this subtitle;

23 (ii) capacity building and technical

24 assistance to local workforce development

25 areas, one-stop career centers, and service

26 providers, including the development and
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1 training of staff and the development of ex2 emplary program activities;

3 (iii) incentives for program coordina4 tion, performance awards, and research and

5 demonstrations;

6 (iv) implementation of innovative in7 cumbent worker training programs, which

8 may include the establishment and imple9 mentation of an employer loan program to

10 assist in skills upgrading for non-manage11 rial employees (in accordance with the re12 quirements of section 314);

13 (v) implementation of experimentation

14 model activities, pilot projects, and dem15 onstration projects which further the goals

16 and purposes of this Act;

17 (vi) additional assistance for the devel18 opment and implementation of the one-stop

19 delivery system of the State established in

20 accordance with title I of this Act; and

21 (vii) support for a common manage22 ment information system as described in

23 section 109.

(B) LIMITATION.—Not more than 1 24 ⁄4 of the

25 amount reserved by the Governor under para-
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1 graph (1) may be used for administration by the

2 State of programs under this subtitle.

3 (b) WITHIN STATE ALLOCATION.—

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

5 based upon an allocation formula established in ac6 cordance with paragraph (2), shall allocate the re7 mainder of the amount allotted to the State under sec8 tion 303(b) to workforce development areas designated

9 under title I of this Act for the purpose of providing

10 employment, job training, and related assistance for

11 adults in accordance with section 306.

12 (2) WITHIN STATE FORMULA.—

13 (A) ESTABLISHMENT.—The Governor,

14 through the collaborative process, and after con15 sultation with local chief elected officials in the

16 local workforce development area, shall develop a

17 formula for the allocation of funds to workforce

18 development areas. Such formula shall take into

19 account—

20 (i) poverty rates within each local

21 workforce development area, as determined

22 by the State;

23 (ii) unemployment rates within each

24 local workforce development area;
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1 (iii) the proportion of the State’s adult

2 population residing within each local

3 workforce development area; and

4 (iv) such other factors as considered

5 appropriate.

6 (B) ADDITIONAL FACTORS.—In establishing

7 such formula, the Governor shall ensure that

8 funds are distributed equitably throughout the

9 State, and that the factors described in subpara10 graph (A) do not receive disproportionate

11 weighting.

12 (3) EXCEPTION.—Notwithstanding the provisions

13 of paragraphs (1) and (2), the Governor shall provide

14 10 percent of the remainder described in paragraph

15 (1) to local workforce areas designated under title I

16 of this Act.

17 SEC. 305. ADDITIONAL STATE PLAN REQUIREMENTS.

18 The State shall, as part of the State workforce develop19 ment and literacy plan under title I of this Act, submit

20 to the Secretary the following additional information:

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

22 employment and training needs of dislocated workers,

23 economically disadvantaged individuals, older work24 ers, individuals with disabilities, displaced home25 makers, veterans, and individuals with multiple bar-
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1 riers to employment (as determined by the State), in2 cluding individuals who are basic skills deficient.

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

4 rapid response assistance to workers experiencing dis5 location as a result of mass layoffs and plant closings,

6 either through the direct provision of services or

7 through the transfer of funds to local workforce devel8 opment areas for the provision of such services.

9 SEC. 306. USE OF AMOUNTS.

10 (a) CORE SERVICES.—Amounts allocated under sec11 tion 304(b) shall be used to provide core services to adults

12 through one-stop career centers in accordance with title I

13 of this Act.

14 (b) INTENSIVE SERVICES.—

15 (1) IN GENERAL.—Amounts allocated under sec16 tion 304(b) shall be used to provide intensive services

17 to adults—

18 (A) who are unable to obtain employment

19 through core services under subsection (a); and

20 (B) who have been determined to be in need

21 of more intensive services in order to gain em22 ployment.

23 (2) DELIVERY OF SERVICES.—Such intensive

24 services shall be provided—
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1 (A) directly through one-stop career centers

2 in accordance with title I of this Act; or

3 (B) through contracts through such centers

4 with service providers approved by the local

5 workforce development board, which may include

6 private, for-profit providers.

7 (3) TYPES OF SERVICES.—Such intensive serv8 ices may include the following:

9 (A) Comprehensive and specialized assess10 ments of the skill levels and service needs of

11 adults, which may include—

12 (i) diagnostic testing and other assess13 ment tools; and

14 (ii) in-depth interviewing and evalua15 tion to identify employment barriers and

16 appropriate employment goals.

17 (B) Development of an individual employ18 ment plan, to identify the employment goals, ap19 propriate achievement objectives, and the appro20 priate combination of services for the adult to

21 achieve the employment goal.

22 (C) Group counseling.

23 (D) Individual counseling and career plan24 ning.
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1 (E) Case management for adults receiving

2 education and training services under subsection

3 (c) or supportive services under subsection (d).

4 (F) Follow-up counseling for adults placed

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

6 (c) EDUCATION AND TRAINING SERVICES.—

7 (1) IN GENERAL.—Amounts allocated under sec8 tion 304(b) shall be used to provide education and

9 training services to adults—

10 (A) who are unable to obtain employment

11 through core services under subsection (a);

12 (B) who are in need of education and train13 ing services in order to gain employment as a re14 sult of determinations made through—

15 (i) preliminary assessments under sec16 tion 107(f)(1)(B) of this Act; or

17 (ii) comprehensive and specialized as18 sessments under subsection (b)(3)(A); and

19 (C) who are unable to obtain other grant

20 assistance for such services, such as through Pell

21 Grants established under title IV of the Higher

22 Education Act.

23 (2) DELIVERY OF SERVICES.—Such education

24 and training services shall be provided through edu-
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1 cation and training providers certified in accordance

2 with title I of this Act.

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

4 training services may include the following:

5 (A) Basic skills training, including reme6 dial education, literacy training, and English

7 literacy program instruction.

8 (B) Occupational skills training, including

9 training for nontraditional employment.

10 (C) On-the-job training.

11 (D) Programs that combine workplace

12 training with related instruction.

13 (E) Training programs operated by the pri14 vate sector.

15 (F) Skill upgrading and retraining.

16 (G) Entrepreneurial training.

17 (H) Employability training to enhance

18 basic workplace competencies.

19 (I) Customized training conducted with a

20 commitment by an employer or group of employ21 ers to employ an individual upon successful com22 pletion of the training.

23 (4) ADDITIONAL REQUIREMENTS.—

24 (A) USE OF SKILL GRANTS.—
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1 (i) IN GENERAL.—Except as provided

2 in clause (ii), education and training serv3 ices under this section shall be provided

4 through the use of skill grants in accordance

5 with this subsection, and in accordance

6 with section 108 regarding the certification

7 of education and training providers.

8 (ii) EXCEPTIONS.—Education and

9 training services authorized under this title

10 may be provided pursuant to a contract for

11 services in lieu of a skill grant if—

12 (I) such services are on-the-job

13 training provided by an employer;

14 (II) the local workforce develop15 ment board determines there are an in16 sufficient number of certified providers

17 of education and training services in

18 the workforce development area to ac19 complish the purposes of a skill grant

20 system;

21 (III) the local workforce develop22 ment board determines that the cer23 tified providers of education and train24 ing in the workforce development area
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1 are unable to provide effective services

2 to special participant populations; or

3 (IV) the local workforce develop4 ment board decides to enter into a di5 rect training contract with a commu6 nity based organization serving special

7 populations.

8 (B) LINKAGE TO OCCUPATIONS IN DE9 MAND.—Education and training services under

10 this subsection shall be directly linked to occupa11 tions for which there is a demand in the local

12 workforce development area, or in another area

13 to which an adult receiving such services is will14 ing to relocate.

15 (d) ADDITIONAL SERVICES.—

16 (1) SUPPORTIVE SERVICES.—Supportive services

17 may be provided for individuals—

18 (A) who are receiving assistance under any

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

20 (B) who are unable to receive such services

21 through other programs providing such services.

22 (2) NEEDS-RELATED PAYMENTS.—

23 (A) IN GENERAL.—Amounts allocated under

24 section 304(b) may be used to provide needs-re25 lated payments to adults who are unemployed
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1 and do not qualify for (or have ceased to qualify

2 for) unemployment compensation for the purpose

3 of enabling such adults to participate in edu4 cation and training programs under subsection

5 (c).

6 (B) ADDITIONAL ELIGIBILITY REQUIRE7 MENTS.—In addition to the requirements con8 tained in subparagraph (A), a dislocated worker

9 who has exhausted unemployment insurance ben10 efits shall be eligible to receive needs-related pay11 ments under this paragraph only if such worker

12 was enrolled in education or training by the end

13 of the 8th week of the worker’s initial unemploy14 ment compensation benefit period, or, if later, by

15 the end of the 8th week after the worker is in16 formed that a short-term layoff will in fact ex17 ceed 6 months.

18 (e) PRIORITY.—Local workforce development boards

19 shall establish a process through which priority is given to

20 dislocated workers and economically disadvantaged indi21 viduals, for receipt of services provided under subsections

22 (b) and (c), in the event that funds are limited within the

23 workforce development area.

24 (f) PROHIBITION ON PRIVATE RIGHT OF ACTION.—

25 Nothing in this section shall be construed to establish a
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1 right for a participant to bring an action to obtain services

2 under a program established under this section.

3 (g) LIMITATIONS ON USE OF FUNDS.—Not more than

4 10 percent of the funds provided under this title to a local

5 workforce development board may be used for administra6 tive purposes.

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

8 MEASURES.

9 (a) GENERAL AUTHORITY.—

10 (1) STANDARDS AND MEASURES.—Each State re11 ceiving a grant under this title shall have developed

12 or shall develop and implement a statewide system of

13 core standards and measures of performance for pro14 grams established under this title, based upon per15 formance standards described in paragraph (2), and

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

17 benchmarking process described in the State plan re18 quired under section 104.

19 (2) STATEWIDE SYSTEM.—Each statewide system

20 shall—

21 (A) establish or have established perform22 ance goals to define the level of performance to

23 be achieved by adults served under this title and

24 to evaluate the quality and effectiveness of serv25 ices and activities under this title;
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1 (B) express such goals in an objective, quan2 tifiable, and measurable form;

3 (C) establish performance indicators or

4 benchmarks that the State and local recipients of

5 funds will use in measuring or assessing progress

6 toward achieving such goals; and

7 (D) provide biennial reports to the public

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

9 achieving its goals.

10 (b) REQUIREMENTS.—Each system developed under

11 subsection (a) shall include measures of—

12 (1) placement, retention, and earnings of par13 ticipants in unsubsidized employment, including re14 tention and earnings at 6 months, and at one year

15 after program termination, respectively;

16 (2) the provision of services to dislocated work17 ers, economically disadvantaged individuals, older

18 workers, individuals with disabilities, displaced home19 makers, veterans, and individuals with multiple bar20 riers to employment (as determined by the State), in21 cluding individuals who are basic skills deficient; and

22 (3) acquisition of skills certificates pursuant to

23 a skill standards and skill certification system en24 dorsed by the National Skill Standards Board, once

25 such system is established.
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1 Subtitle B—Federal Programs

2 SEC. 311. NATIONAL DISCRETIONARY GRANTS.

3 (a) GRANTS FOR DISLOCATED WORKERS.—

4 (1) IN GENERAL.—From amounts reserved under

5 section 303(a)(2) for any fiscal year, the Secretary is

6 authorized to award national discretionary grants to

7 address major economic dislocations that result from

8 plant closures, base closures, or mass layoffs.

9 (2) APPLICATION.—To receive a grant under this

10 section, an eligible entity shall submit an application

11 to the Secretary at such time, in such manner, and

12 accompanied by such information as the Secretary

13 determines is appropriate.

14 (3) ELIGIBLE ENTITIES.—Grants under this sec15 tion may be awarded to—

16 (A) the State;

17 (B) a local workforce development board ad18 ministering assistance under this Act;

19 (C) employers and employer associations;

20 (D) worker-management transition assist21 ance committees and other employer-employee

22 entities;

23 (E) representatives of employees;

24 (F) community development corporations

25 and community-based organizations; and
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1 (G) industry consortia.

2 (b) INCENTIVE GRANTS.—From amounts reserved

3 under section 303(a)(2) for any fiscal year, the Secretary

4 may provide awards to States—

5 (1) to assist in the implementation of exemplary

6 statewide workforce development system designs; and

7 (2) for the achievement of exceptional perform8 ance in the statewide workforce development system.

9 SEC. 312. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

10 (a) IN GENERAL.—From amounts reserved under sec11 tion 303(a)(2) for any fiscal year, the Secretary may pro12 vide assistance to the Governor of any State within which

13 is located an area that has suffered an emergency or a

14 major disaster as defined in paragraphs (1) and (2), respec15 tively, of section 102 of the Robert T. Stafford Disaster Re16 lief and Emergency Assistance Act (referred to in this sec17 tion as the ‘‘disaster area’’).

18 (b) USE OF FUNDS.—

19 (1) PROJECTS RESTRICTED TO DISASTER

20 AREAS.—Funds made available under this section—

21 (A) shall be used exclusively to provide em22 ployment on projects to provide food, clothing,

23 shelter, and other humanitarian assistance for

24 disaster victims and on projects regarding demo25 lition, cleanup, repair, renovation, and recon-
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1 struction of damaged and destroyed structures,

2 facilities, and lands located within the disaster

3 area; and

4 (B) may be expended through public and

5 private agencies and organizations engaged in

6 such projects.

7 (2) ELIGIBILITY REQUIREMENTS.—An individ8 ual shall be eligible to be offered disaster employment

9 under this section if such individual is a dislocated

10 worker or is temporarily or permanently laid off as

11 a consequence of the disaster.

12 (3) LIMITATIONS ON DISASTER RELIEF EMPLOY13 MENT.—No individual shall be employed under this

14 part for more than 6 months for work related to re15 covery from a single natural disaster.

16 SEC. 313. RESEARCH, DEMONSTRATION, EVALUATION, AND

17 CAPACITY BUILDING.

18 (a) IN GENERAL.—From amounts reserved under sec19 tion 303(a)(2) for any fiscal year, the Secretary shall estab20 lish and carry out research, demonstration, and capacity

21 building activities in accordance with this section.

22 (b) ACTIVITIES.—The Secretary shall carry out the fol23 lowing activities under this section:

24 (1) RESEARCH.—The Secretary shall conduct

25 continuing research, which may include studies and
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1 other methods and techniques, that will aid in the so2 lution of the employment and training problems of

3 the United States. Such studies may include the ex4 tent to which individuals who participate in pro5 grams established under this title achieve self-suffi6 ciency as a result of such participation, including the

7 identification by State and locality, to the extent

8 practicable, of indicators measuring such self-suffi9 ciency.

10 (2) DEMONSTRATIONS.—The Secretary shall con11 duct pilot and demonstration projects for the purpose

12 of developing and improving methods and techniques

13 for addressing employment and training needs which

14 may include projects conducted jointly with the De15 partment of Defense to develop training programs uti16 lizing computer-based and other innovative learning

17 technologies. The Secretary may award grants and

18 enter into contracts with appropriate entities to carry

19 out such projects.

20 (3) EVALUATION.—

21 (A) ACTIVITIES.—

22 (i) JOB TRAINING ACTIVITIES.—The

23 Secretary shall provide for the continuing

24 evaluation of activities conducted under this

25 Act, including the cost-effectiveness of such
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1 activities in achieving the purposes of this

2 Act.

3 (ii) OTHER PROGRAMS.—The Sec4 retary may conduct evaluations of other fed5 erally funded employment-related activities

6 including programs administered under—

7 (I) the Wagner-Peyser Act (29

8 U.S.C. 49 et seq.);

9 (II) the National Apprenticeship

10 Act (29 U.S.C. 50 et seq.);

11 (III) the Older Americans Act of

12 1965 (42 U.S.C. 3001 et seq.); and

13 (IV) the Federal unemployment

14 insurance program under titles III, IX,

15 and XII of the Social Security Act (42

16 U.S.C. 501 et seq., 1101 et seq., and

17 1321 et seq.).

18 (B) EFFECTIVENESS.—The Secretary shall

19 evaluate the effectiveness of programs authorized

20 under this Act with respect to—

21 (i) the statutory goals;

22 (ii) the performance standards estab23 lished by the Secretary; and

24 (iii) the extent to which such programs

25 enhance the employment and earnings of
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1 participants, reduce income support costs,

2 improve the employment competencies of

3 participants in comparison to comparable

4 persons who did not participate in such

5 programs, and to the extent feasible, in6 crease the level of total employment over the

7 level that would have existed in the absence

8 of such programs.

9 (4) NATIONAL PARTNERSHIP AND SPECIAL

10 TRAINING.—The Secretary may award special grants

11 to eligible entities to carry out activities that are most

12 appropriately administered at the national level.

13 Such activities may include—

14 (A) partnerships with national organiza15 tions with special expertise in developing, orga16 nizing, and administering employment and

17 training services at the national, State, and local

18 levels, such as industry and labor associations,

19 public interests groups, community-based organi20 zations representative of groups that encounter

21 special difficulties in the labor market, in edu22 cation and training; and

23 (B) activities that—

24 (i) address industry-wide skill short25 ages;
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1 (ii) meet training needs that are best

2 addressed on a multistate basis;

3 (iii) further the goals of increasing the

4 competitiveness of the United States labor

5 force; and

6 (iv) require technical expertise avail7 able at the national level to serve the needs

8 of particular client groups that encounter

9 significant barriers to employment and who

10 the Secretary determines require special as11 sistance; and

12 (v) promote and experiment with

13 model activities, pilot projects, and dem14 onstration projects which further the goals

15 and purposes of this Act.

16 (5) CAPACITY BUILDING AND TECHNICAL ASSIST17 ANCE.—

18 (A) IN GENERAL.—The Secretary shall pro19 vide, through grants, contracts, or other arrange20 ments, staff training and technical assistance to

21 States, local workforce development boards, ca22 reer centers, communities, business and labor or23 ganizations, service providers, industry consor24 tia, and other entities, to enhance their capacity
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1 to develop and deliver effective employment and

2 training services.

3 (B) ACTIVITIES.—The staff training and

4 technical assistance authorized under subpara5 graph (A) may include—

6 (i) development of management infor7 mation systems;

8 (ii) development and maintenance of a

9 national capacity building, information

10 and dissemination network; and

11 (iii) grants for the replication of suc12 cessful employment and training models

13 and activities.

14 SEC. 314. WORKFORCE SKILLS AND DEVELOPMENT LOANS.

15 (a) AUTHORIZATION.—

16 (1) IN GENERAL.—From amounts reserved under

17 section 303(a)(2) for any fiscal year, the Secretary of

18 Labor may use a portion of such amounts to provide

19 grants to States to provide loans to eligible entities

20 described in paragraph (2) to assist such entities in

21 providing skills upgrading.

22 (2) ELIGIBLE ENTITIES.—An eligible entity de23 scribed in this paragraph is—

24 (A) an employer;

25 (B) a representative of employees;
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1 (C) a business association;

2 (D) a trade organization; or

3 (E) a consortium consisting of—

4 (i) more than 1 of the entities described

5 in subparagraphs (A) through (D); 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 re19 ceived from a grant under subsection (a) to establish a loan

20 guarantee program to assist eligible entities described in

21 paragraph (2) of such subsection to provide skills upgrading

22 for nonmanagerial employees. In carrying out such pro23 gram, the State shall meet the following requirements:

24 (1) ESTABLISHMENT OF RESERVE FUND FOR

25 LOAN GUARANTEES.—The State shall establish a re-
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1 serve fund from amounts received from such grant for

2 the purpose of making commitments to guarantee the

3 payment of principal and interest on loans made by

4 financial institutions to such eligible entities to pro5 vide skills upgrading for nonmanagerial employees.

6 (2) CRITERIA FOR LOAN GUARANTEES.—The

7 State, in conjunction with appropriate financial in8 stitutions, shall establish and publish criteria for pro9 viding loan guarantees to eligible entities under the

10 program, including criteria that provides for the fol11 lowing:

12 (A) A loan guarantee may be issued under

13 the program only if, at the time such guarantee

14 is issued the eligible entity agrees to pay as an

15 insurance premium an amount equal to 1 per16 cent of the principal received by such entity

17 under the loan to the State’s reserve fund.

18 (B)(i) Subject to clause (ii), the eligible en19 tity will use amounts received from the loan to

20 provide skills upgrading for mid- and lower-level

21 employees, which may include—

22 (I) training in total quality manage23 ment, statistical process control, production

24 techniques, office automation, materials re25 source planning; and
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1 (II) training to improve basic skills,

2 including reading, writing, and arithmetic.

3 (ii) In providing such skills upgrading, the

4 eligible entity shall give priority to

5 nonmanagerial employees who—

6 (I) directly produce or deliver goods or

7 services; or

8 (II) are in danger of being terminated

9 or laid off as a result of modernization in

10 the workplace, corporate downsizing, foreign

11 or domestic competition, or Federal policies

12 adversely affecting 1 or more industries.

13 (C) Amounts from a loan shall not be used

14 to pay the wages or other benefits of any em15 ployee receiving assistance under the program.

16 (3) PAYMENT BY STATE TO FINANCIAL INSTITU17 TIONS IN CASES OF DEFAULT.—

18 (A) IN GENERAL.—In accordance with cri19 teria developed by the Secretary, the State shall

20 make payments from the State’s reserve fund to

21 financial institutions that have provided loans to

22 eligible entities that have defaulted on such loans

23 for the purpose of reimbursing such institutions

24 for the amount of principal and interest remain-
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1 ing unpaid to the institutions by reason of such

2 default.

3 (B) NO FULL FAITH AND CREDIT OF THE

4 UNITED STATES.—Loans provided by financial

5 institutions to eligible entities under loan guar6 antee programs under this section shall not be

7 obligations of, or guaranteed in any respect by,

8 the United States.

9 (4) INTEREST FROM AMOUNTS IN RESERVE

10 FUND.—Any interest earned from amounts in the

11 State’s reserve fund shall be credited to such fund.

12 (d) FEDERAL AND STATE SHARE.—

13 (1) FEDERAL SHARE.—The Federal share under

14 this section may not exceed 50 percent of the total cost

15 of the program established under subsection (c) for

16 any fiscal year.

17 (2) STATE SHARE.—The State share shall be

18 provided from non-Federal sources and may be in

19 cash or in-kind, fairly evaluated.

20 SEC. 315. EMPLOYMENT, TRAINING, AND EDUCATION AS21 SISTANCE FOR NATIVE AMERICANS.

22 (a) AUTHORIZATION.—From amounts reserved under

23 section 303(a)(2) for any fiscal year, the Secretary of Labor

24 shall provide grants to, or enter into contracts or coopera25 tive agreements with, Indian tribes and tribal organiza-
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1 tions, tribally-controlled colleges, tribally-controlled post2 secondary vocational institutions, Indian-controlled organi3 zations serving off-reservation areas, Alaska Native village

4 and regional entities serving areas as described in the Alas5 ka Native Claims Settlement Act and Hawaiian Native6 controlled organizations to provide employment, training,

7 vocational rehabilitation, library services, and education

8 assistance for Native Americans.

9 (b) TRANSFER OF AUTHORITY FOR VOCATIONAL EDU10 CATION ACTIVITIES.—In carrying out subsection (a), the

11 Secretary of Labor may enter into an agreement with the

12 Secretary of Education to carry out any portion of assist13 ance under such subsection devoted to vocational edu14 cational activities, including support for the United Tribes

15 Technical College and Crownpoint Institute of Technology.

16 (c) CONSOLIDATION OF FUNDS.—Entities receiving as17 sistance under subsection (a) may consolidate such assist18 ance with assistance received from related programs in ac19 cordance with the provisions of the Indian Employment,

20 Training and Related Services Demonstration Act (Public

21 Law 102–477).

22 (d) REGULATIONS.—The Secretary shall consult with

23 Indian, Alaska Native and Hawaiian Native groups in es24 tablishing regulations to carry out this section, including

25 performance standards for entities receiving assistance
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1 under subsection (a), taking into account the economic cir2 cumstances of such groups.

3 SEC. 316. EMPLOYMENT, TRAINING, AND EDUCATION AS4 SISTANCE FOR MIGRANT AND SEASONAL

5 FARMWORKERS.

6 (a) AUTHORIZATION.—

7 (1) IN GENERAL.—From amounts reserved under

8 section 303(a)(2) for any fiscal year, the Secretary of

9 Labor shall provide grants to, or enter into contracts

10 or cooperative agreements with, entities described in

11 paragraph (2) to provide employment, training, and

12 education assistance for migrant and seasonal farm13 workers.

14 (2) ENTITIES DESCRIBED.—An entity described

15 in this paragraph is an entity the Secretary deter16 mines to have the capacity to administer effectively a

17 diversified development program for migrant and sea18 sonal farmworkers.

19 (b) USE OF AMOUNTS.—An entity shall use amounts

20 received under subsection (a) to provide employment, train21 ing, educational development, high school equivalency, post22 secondary education assistance, vocational rehabilitation,

23 literacy, English as a second language, work-based edu24 cation and development, worker safety training, employ25 ability enhancements, emergency or other disaster relief, in-
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1 cluding housing, technical assistance, outreach, intake, as2 sessment, follow-up, stipend support, supportive services,

3 other needs-based assistance, self-employment and related

4 business enterprise development education, and the manage5 ment of a database on participating migrant and seasonal

6 farmworkers.

7 (c) TRANSFER OF AUTHORITY FOR EDUCATION AC8 TIVITIES.—In carrying out subsection (b), the Secretary of

9 Labor may enter into an agreement with the Secretary of

10 Education to carry out assistance as described in—

11 (1) a secondary and postsecondary high school

12 equivalency program to serve migrants and seasonal

13 farmworkers; and

14 (2) a college assistance migrant program to pro15 vide outreach and recruitment services for migrants

16 and seasonal farmworkers.

17 TITLE IV—ADULT EDUCATION

18 AND FAMILY LITERACY CON19 SOLIDATION GRANT AND LI20 BRARY SERVICES AND TECH21 NOLOGY CONSOLIDATION

22 GRANT

23 SEC. 401. FINDINGS.

24 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 20

7 percent of all adults in the United States, or about

8 40 million people, have minimal levels of literacy

9 skills and that the lack of such skills is related to un10 employment, low wages, and fewer weeks worked.

11 (3) The success of State efforts to reform and im12 prove public education are dependent on the ability

13 of the United States to break intergenerational cycles

14 of illiteracy and inadequate education by ensuring

15 that parents possess a strong educational foundation

16 and, as the first and most continuous teachers of their

17 children, model for, and instill in, their children a

18 commitment to family literacy and life-long learning.

19 (4) Generations of immigrants have contributed

20 to our communities and our economy, but for them to

21 continue to do so given recent technologies and the

22 competitive global economy, they must master English

23 as rapidly as possible.

24 (5) Studies have found that incarcerated adults

25 are twice as likely as nonincarcerated adults to lack
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1 a good education and that such lack is a significant

2 statistical indicator of recidivism.

3 (6) Certain short-term and long-term goals of the

4 Nation may not be met unless the United States im5 proves its current system of adult education and life6 long learning through Federal leadership.

7 SEC. 402. DEFINITIONS.

8 As used in this title:

9 (1) CORRECTIONAL EDUCATION AGENCY.—The

10 term ‘‘correctional education agency’’ means an en11 tity that provides programs for criminal offenders in

12 corrections institutions and for other institutionalized

13 individuals which include academic programs for

14 basic education, special education, bilingual or Eng15 lish language instruction, vocational training, library

16 development, corrections education programs, guid17 ance and counseling, and other supportive services for

18 criminal offenders which may emphasize coordination

19 of educational services with educational institutions,

20 community-based organizations of demonstrative ef21 fectiveness, and the private sector, designed to provide

22 education and training.

23 (2) EDUCATIONALLY DISADVANTAGED ADULT.—

24 The term ‘‘educationally disadvantaged adult’’ means

25 an adult who—
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1 (A) demonstrates basic skills equivalent to

2 or below that of students at the fifth grade level;

3 or

4 (B) has been placed in the lowest or begin5 ning level of an adult education program when

6 that program does not use grade level equiva7 lencies as a measure of students’ basic skills.

8 (3) FAMILY LITERACY SERVICES.—The term

9 ‘‘family literacy services’’ means services that inte10 grate all of the following activities and are of suffi11 cient intensity in terms of hours, and of sufficient du12 ration, to make sustainable changes in a family:

13 (A) Interactive literacy activities between

14 parents and their children.

15 (B) Training for parents on how to be their

16 children’s primary teacher and full partners in

17 the education of their children.

18 (C) Parent literacy training.

19 (D) Early childhood education.

20 (4) SECRETARY.—The term ‘‘Secretary’’ means

21 the Secretary of Education.
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1 Subtitle A—Adult Education and

2 Family Literacy Consolidation

3 Grant

4 SEC. 411. PURPOSES.

5 The purposes of this subtitle are to assist States to pro6 vide—

7 (1) to adults, the basic educational skills nec8 essary for employment and self-sufficiency;

9 (2) to adults who are parents, the educational

10 skills necessary to be full partners in the educational

11 development of their children;

12 (3) to adults, the basic English language skills

13 necessary to participate in the civic, social, and eco14 nomic life of the United States; and

15 (4) to adults, the opportunity to attain a high

16 school degree or its equivalent in order to permit them

17 to pursue further education and training or improve

18 their family and work situations.

19 CHAPTER 1—FUNDING

20 SEC. 421. RESERVATIONS FROM AMOUNTS APPROPRIATED.

21 (a) NATIONAL INSTITUTE FOR LITERACY.—For any

22 fiscal year, the Secretary shall reserve $4,500,000 of the

23 amount appropriated under section 4(a)(3) to carry out the

24 activities of the National Institute for Literacy described

25 in section 441.
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1 (b) NATIONAL LEADERSHIP ACTIVITIES.—For any fis2 cal year, the Secretary shall reserve $4,500,000 of the

3 amount appropriated under section 4(a)(3) to establish and

4 carry out the program of national leadership and evalua5 tion activities described in section 442.

6 SEC. 422. ALLOTMENT.

7 (a) INITIAL ALLOTMENT.—From the sums available

8 for the purpose of making grants under chapter 2 for any

9 fiscal year, the Secretary shall allot—

10 (1) $100,000 each to Guam, American Samoa,

11 the Commonwealth of the Northern Mariana Islands,

12 and the Virgin Islands; and

13 (2) $250,000 to each of the other States.

14 (b) ADDITIONAL ALLOTMENT.—

15 (1) IN GENERAL.—From the remainder of the

16 sums described in subsection (a) after the application

17 of the subsection, the Secretary shall allot to each

18 State an amount which bears the same ratio to such

19 remainder as the number of qualifying adults in the

20 State bears to the number of such adults in all States.

21 (2) QUALIFYING ADULT.—For purposes of this

22 subsection, the term ‘‘qualifying adult’’ means an

23 adult who—

24 (A) is at least 16 years of age, but less than

25 61 years of age;
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1 (B) is beyond the age of compulsory school

2 attendance under State law;

3 (C) does not have a certificate of graduation

4 from a school providing secondary education (or

5 its equivalent); and

6 (D) is not currently enrolled in elementary

7 or secondary school.

8 CHAPTER 2—GRANTS TO STATES

9 SEC. 431. REQUIREMENT TO MAKE GRANTS.

10 For fiscal year 1997 and subsequent fiscal years, the

11 Secretary shall make a grant to a State in an amount equal

12 to the initial and additional allotments of the State for the

13 year if the State—

14 (1) has satisfied the requirements of title I and

15 section 433(a)(1);

16 (2) enters into a written agreement with the Sec17 retary that the State—

18 (A) will not expend the grant for any pur19 pose other than in accordance with section 432;

20 (B) will satisfy the grant requirements in

21 sections 433(a)(2) and 433(b); and

22 (C) will not expend the grant for the pur23 pose of supporting or providing programs, serv24 ices, or activities for individuals who are not
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1 adults, except if such programs, services, or ac2 tivities are related to family literacy services.

3 SEC. 432. USES OF FUNDS.

4 (a) STATE USES OF FUNDS.—

5 (1) GRANTS TO SERVE TARGET POPULATIONS.—

6 (A) IN GENERAL.—Of the funds paid to a

7 State under this title for fiscal year 1998 and

8 subsequent fiscal years, 3 percent shall be distrib9 uted as performance grants made by the State on

10 a competitive basis, and consistent with sub11 section (b) and section 433(b)(2), to local service

12 providers that have provided, during the imme13 diately preceding fiscal year, adult education or

14 family literacy services to the target populations

15 described in subparagraph (C).

16 (B) LOCAL SERVICE PROVIDERS.—The local

17 service providers referred to in subparagraph (A)

18 may include the following:

19 (i) Local educational agencies.

20 (ii) Correctional educational agencies.

21 (iii) Community-based organizations.

22 (iv) Public or private nonprofit agen23 cies.

24 (v) Institutions of higher education.

25 (vi) Libraries.
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1 (vii) Other institutions that the State

2 determines to have the ability to provide lit3 eracy services to adults and families.

4 (C) TARGET POPULATIONS.—The target

5 populations referred to in subparagraph (A) are

6 the following:

7 (i) Adults with more than one barrier

8 to self-sufficiency, such as being unemployed

9 or an educationally disadvantaged adult.

10 (ii) Families on public assistance (as

11 determined by the State).

12 (iii) Parents who are educationally

13 disadvantaged adults and who have a child

14 who is less than 8 years of age.

15 (iv) Adults who are individuals with

16 disabilities or who have similar special

17 needs.

18 (2) GRANTS TO LOCAL SERVICE PROVIDERS.—Of

19 the funds paid to a State under this subtitle for any

20 fiscal year that remain after the application of para21 graph (1), at least 85 percent shall be distributed as

22 grants made by the State on a competitive basis, and

23 consistent with subsection (b) and section 433(b)(2),

24 to local service providers to establish, conduct, or ex25 pand programs, services, or activities to achieve a
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1 purpose of this subtitle. Such local service providers

2 may include the local service providers described in

3 paragraph (1)(B).

4 (3) OTHER STATE ACTIVITIES.—A State may use

5 not more than 12 percent of the funds paid to the

6 State under this subtitle for any fiscal year that re7 main after the application of paragraph (1) for one

8 or more of the following purposes:

9 (A) The establishment or operation of pro10 fessional development programs to improve the

11 quality of instruction provided in local adult

12 education and literacy programs, including in13 struction provided by volunteers.

14 (B) The provision of technical assistance to

15 local service providers.

16 (C) The provision of technology assistance

17 to local service providers to enable them to im18 prove the quality of their programs, services, and

19 activities that achieve a purpose of this subtitle,

20 including—

21 (i) providing hardware and software;

22 (ii) paying for service connection fees

23 associated with gaining access to computer24 ized databases; and
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1 (iii) upgrading the technological capa2 bilities of local service providers to improve

3 the quality of their services and to assist

4 them in providing services on a flexible

5 schedule that meets the needs of diverse pop6 ulations.

7 (D) The support of State or regional net8 works of literacy resource centers that—

9 (i) enhance the coordination of literacy

10 services across public and private programs

11 and State agencies;

12 (ii) enhance the capacity of the State

13 and local service providers to provide lit14 eracy services through the diffusion and

15 adoption of state-of-the-art teaching methods

16 and technologies;

17 (iii) provide linkages between the Na18 tional Institute for Literacy established

19 under section 441 and local service provid20 ers for the sharing of literacy information,

21 research, and resources;

22 (iv) encourage government and indus23 try partnerships; and

24 (v) provide training and technical as25 sistance to literacy instructors in reading
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1 instruction, the use of state-of-the-art meth2 odologies, instructional materials, and tech3 nologies, and professional development.

4 (E) Monitoring and evaluating the quality

5 of, and the improvement in, services and activi6 ties conducted with Federal financial assistance

7 under this subtitle, including carrying out sec8 tion 433(a)(2).

9 (F) The support of a common management

10 information system as described in section 109.

11 (G) Carrying out other activities of state12 wide significance that promote the purposes of

13 this Act.

14 (4) ADMINISTRATIVE EXPENSES.—For any fiscal

15 year, a State may use not more than 3 percent of the

16 funds paid to the State under this subtitle that re17 main after the application of paragraph (1) or

18 $50,000, whichever is greater, for—

19 (A) planning, administration, and inter20 agency coordination associated with a grant

21 under this subtitle; and

22 (B) support for one-stop career center sys23 tems described in section 107.

24 (b) LOCAL USES OF FUNDS.—A State shall require

25 that a local service provider that receives a grant from the
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1 State under paragraph (1) or (2) of subsection (a) use the

2 grant to establish or operate one or more programs that

3 provide instruction or services within one or more of the

4 following categories:

5 (1) Adult basic education that is designed for an

6 adult who—

7 (A) has minimal competence in reading,

8 writing, or computation;

9 (B) is not sufficiently competent in reading,

10 writing, or computation to meet the requirements

11 of adult life in the United States; or

12 (C) is not sufficiently competent in speak13 ing, reading, or writing the English language to

14 obtain employment commensurate with the

15 adult’s intellectual abilities.

16 (2) Adult secondary education that is designed

17 for an adult who is literate and can function in ev18 eryday life, but who—

19 (A) has not acquired basic educational

20 skills, including reading, writing, and computa21 tion; or

22 (B) does not have a certificate of graduation

23 from a school providing education to students in

24 grade 12, or its equivalent.
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1 (3) English literacy instruction that is designed

2 for an adult—

3 (A) who—

4 (i) has limited ability in speaking,

5 reading, writing, or understanding the Eng6 lish language and whose native language is

7 a language other than English; or

8 (ii) lives in a family or community en9 vironment where a language other than

10 English is the dominant language; and

11 (B) who, by reason of a condition described

12 in subparagraph (A), has sufficient difficulty

13 reading, writing, or understanding the English

14 language that the adult is unable—

15 (i) to learn successfully in a classroom

16 where the language of instruction is Eng17 lish; or

18 (ii) to participate fully in the society

19 of the United States.

20 (4) Family literacy services.

21 SEC. 433. ADDITIONAL GRANT REQUIREMENTS.

22 (a) GOALS, PROGRESS INDICATORS, PERFORMANCE

23 MEASURES.—
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1 (1) PLANNING REQUIREMENTS.—A State that de2 sires to receive a grant under this subtitle shall ac3 complish the following:

4 (A) Establish, through the collaborative

5 process described in section 103, measurable

6 goals for improving literacy levels, retention in

7 literacy programs, and long-term learning gains

8 of individuals in the State.

9 (B) Based on such goals and the perform10 ance measures described in section 434, establish,

11 through such collaborative process, progress indi12 cators to be used to evaluate the performance of

13 local service providers receiving a grant under

14 paragraph (1) or (2) of section 432(a).

15 (C) Describe such goals and progress indica16 tors in the State workforce development and lit17 eracy plan submitted to the Secretary under sec18 tion 104.

19 (2) IMPLEMENTATION REQUIREMENTS.—A State

20 that receives a grant under this subtitle shall accom21 plish the following:

22 (A) With respect to each local service pro23 vider receiving a grant under paragraph (1) or

24 (2) of section 432(a), based on the goals and

25 progress indicators established under paragraph
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1 (1), measure the performance measures described

2 in section 434 and use the data produced by such

3 measurement to improve the quality of services

4 provided to program participants or service re5 cipients.

6 (B) Beginning on the date that is 2 years

7 after the first date that a local service provider

8 receives a grant under paragraph (1) or (2) of

9 section 432(a), annually assess the degree to

10 which the provider is meeting or exceeding the

11 progress indicators applicable to the provider.

12 (C) Annually report to the Secretary on the

13 performance measures described in section 434

14 for each category described in such section.

15 (b) OTHER REQUIREMENTS.—A State that receives a

16 grant under this subtitle shall ensure the following:

17 (1) EXPENDITURES OF NON-FEDERAL FUNDS.—

18 For any fiscal year for which a grant is made to the

19 State under this subtitle, the State shall expend, on

20 programs and activities relating to adult education

21 and family literacy services, an amount, derived from

22 sources other than the Federal Government, equal to

23 25 percent of the State’s initial and additional allot24 ments for the year.
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1 (2) PRIORITY FOR PLANNING WITH BOARDS AND

2 SYSTEMS.—In awarding grants to local service pro3 viders under paragraph (1) or (2) of section 432(a),

4 the State shall give priority to providers that dem5 onstrate joint planning with local workforce develop6 ment boards and one-stop career center systems.

7 (3) EQUITABLE ACCESS.—Local educational

8 agencies, public or private nonprofit agencies, com9 munity-based organizations, correctional education

10 agencies, institutions of higher education, libraries,

11 and institutions which serve educationally disadvan12 taged adults shall be provided direct and equitable ac13 cess to Federal funds provided under this subtitle in

14 accordance with this subtitle.

15 (4) PAYMENTS BY ONE-STOPS TO LOCAL SERVICE

16 PROVIDERS.—A one-stop career center system in a

17 State that refers an adult who is in need of adult edu18 cation or literacy services in order to achieve such

19 adult’s career goals to a local service provider shall

20 pay to such provider, in accordance with the biennial

21 strategic plan of the local workforce development

22 board pursuant to which such center is established or

23 designated, an amount appropriate to pay for such

24 services if such provider renders such services and—
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1 (A) is receiving a grant from the State

2 under paragraph (1) or (2) of section 432(a); or

3 (B) is not receiving such a grant but has

4 been certified by the State as eligible to receive

5 such amounts.

6 SEC. 434. PERFORMANCE MEASURES.

7 A State that receives a grant under this subtitle for

8 a fiscal year shall measure the performance in the following

9 categories for such year of the programs, services, and ac10 tivities carried out by each local service provider receiving

11 a grant under paragraph (1) or (2) of section 432(a):

12 (1) The percentage of adults served who, based on

13 skills or abilities acquired through such a program,

14 service, or activity—

15 (A) demonstrate skills necessary to assist

16 their children to succeed in school, such as the

17 ability to—

18 (i) read to their children;

19 (ii) provide support to their children

20 in the completion of homework assignments;

21 or

22 (iii) participate on an ongoing basis

23 in activities that support their childrens’

24 schools;
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1 (B) enrolled in institutions of higher edu2 cation or occupational training;

3 (C) obtained a job;

4 (D) advanced in their job; or

5 (E) performed new job requirements essen6 tial to retaining their job.

7 (2) The percentage of adults served who, based on

8 skills or abilities acquired through such a program,

9 service, or activity—

10 (A) obtained a high school diploma; or

11 (B) obtained a high school equivalency di12 ploma.

13 (3) The percentage of adults served who, based on

14 skills or abilities acquired through such a program,

15 service, or activity—

16 (A) register to vote;

17 (B) obtain United States citizenship; or

18 (C) seek preventive health services.

19 (4) The percentage of incarcerated adults served

20 who, based on skills or abilities acquired through such

21 a program, service, or activity, during their term of

22 incarceration or upon the termination of such term—

23 (A) enrolled in job training or education

24 programs; or

25 (B) obtained employment.
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1 CHAPTER 3—NATIONAL PROGRAMS

2 SEC. 441. NATIONAL INSTITUTE FOR LITERACY.

3 (a) ESTABLISHMENT.—

4 (1) IN GENERAL.—There shall be established a

5 National Institute for Literacy (in this section re6 ferred to as the ‘‘Institute’’). The Institute shall be ad7 ministered under the terms of an interagency agree8 ment entered into by the Secretary of Education with

9 the Secretary of Labor and the Secretary of Health

10 and Human Services (in this section referred to as

11 the ‘‘Interagency Group’’). The Secretary may include

12 in the Institute any research and development center,

13 institute, or clearinghouse established within the De14 partment of Education whose purpose is determined

15 by the Secretary to be related to the purpose of the

16 Institute.

17 (2) BOARD RECOMMENDATIONS.—The Inter18 agency Group shall consider the recommendations of

19 the National Institute for Literacy Advisory Board

20 (in this section referred to as the ‘‘Board’’) established

21 under subsection (d) in planning the goals of the In22 stitute and in the implementation of any programs to

23 achieve such goals.
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1 (3) DAILY OPERATIONS.—The daily operations of

2 the Institute shall be carried out by the Director of

3 the Institute appointed under subsection (g).

4 (b) DUTIES.—

5 (1) IN GENERAL.—The Institute shall—

6 (A) provide national leadership for the im7 provement and expansion of the system for deliv8 ery of literacy services;

9 (B) coordinate the delivery of such services;

10 (C) support the creation of new methods of

11 offering improved services;

12 (D) serve as a national resource for adult

13 education and family literacy services by provid14 ing to the public the best and most current infor15 mation available on the subjects; and

16 (E) assist States in developing levels of per17 formance.

18 (2) AUTHORIZED ACTIVITIES.—In order to carry

19 out the duties described in paragraph (1), the Insti20 tute may—

21 (A) establish a national electronic database

22 of information that includes—

23 (i) information on—
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1 (I) effective practices in the provi2 sion of literacy and basic skills in3 struction;

4 (II) public and private literacy

5 and basic skills programs and Federal,

6 State, and local policies affecting the

7 provision of literacy services at the na8 tional, State, and local levels; and

9 (III) technical assistance, meet10 ings, conferences, and other opportuni11 ties that lead to the improvement of lit12 eracy and basic skills services; and

13 (ii) a communication network for lit14 eracy programs, providers, and students;

15 (B) coordinate support for the provision of

16 literacy and basic skills services across Federal

17 agencies and at the State and local level;

18 (C) coordinate the support of research and

19 development on literacy and basic skills in fami20 lies and adults across Federal agencies and carry

21 out basic and applied research and development

22 on topics that are not being investigated by other

23 organizations or agencies;
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1 (D) collect and disseminate information on

2 methods of advancing literacy that show promise

3 of success;

4 (E) work with the National Education

5 Goals Panel established under Goals 2000: Edu6 cate America Act to assist local, State, and na7 tional organizations and agencies in making and

8 measuring progress toward the National Edu9 cation Goals established under such Act; and

10 (F) assist in the development of policy with

11 respect to literacy and basic skills.

12 (3) GRANTS, CONTRACTS, AND AGREEMENTS.—

13 The Institute may enter into contracts or cooperative

14 agreements with, or make grants to, individuals, pub15 lic or private institutions, agencies, organizations, or

16 consortia of such institutions, agencies, or organiza17 tions to carry out the activities of the Institute. Such

18 grants, contracts, or agreements shall be subject to the

19 laws and regulations that generally apply to grants,

20 contracts, or agreements entered into by Federal agen21 cies.

22 (c) LITERACY LEADERSHIP.—

23 (1) FELLOWSHIPS.—The Institute, in consulta24 tion with the Board, may award fellowships, with

25 such stipends and allowances as the Director consid-
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1 ers necessary, to outstanding individuals pursuing ca2 reers in adult education or literacy in the areas of in3 struction, management, research, or innovation.

4 (2) USE OF FELLOWSHIPS.—Fellowships award5 ed under this subsection shall be used, under the aus6 pices of the Institute, to engage in research, education,

7 training, technical assistance, or other activities to

8 advance the field of adult education or literacy, in9 cluding the training of volunteer literacy providers at

10 the national, State, or local level.

11 (3) INTERNS AND VOLUNTEERS.—The Institute,

12 in consultation with the Board, may award paid and

13 unpaid internships to individuals seeking to assist the

14 Institute in carrying out its mission. Notwithstand15 ing section 1342 of title 31, United States Code, the

16 Institute may accept and use voluntary and uncom17 pensated services as the Institute determines nec18 essary.

19 (d) NATIONAL INSTITUTE FOR LITERACY ADVISORY

20 BOARD.—

21 (1) ESTABLISHMENT.—

22 (A) IN GENERAL.—There shall be a Na23 tional Institute for Literacy Advisory Board.

24 The Board shall consist of 10 individuals ap-
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1 pointed by the President with the advice and

2 consent of the Senate from individuals who—

3 (i) are not otherwise officers or em4 ployees of the Federal Government; and

5 (ii) are representative of entities or

6 groups described in subparagraph (B).

7 (B) ENTITIES OR GROUPS DESCRIBED.—

8 The entities or groups referred to in subpara9 graph (A) are—

10 (i) literacy organizations and provid11 ers of literacy services, including—

12 (I) nonprofit providers of literacy

13 services;

14 (II) providers of programs and

15 services involving English language in16 struction; and

17 (III) providers of services receiv18 ing assistance under this subtitle;

19 (ii) businesses that have demonstrated

20 interest in literacy programs;

21 (iii) literacy students;

22 (iv) experts in the area of literacy re23 search;

24 (v) State and local governments; and

25 (vi) organized labor.
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1 (2) DUTIES.—The Board shall—

2 (A) make recommendations concerning the

3 appointment of the Director and staff of the In4 stitute;

5 (B) provide independent advice on the oper6 ation of the Institute; and

7 (C) receive reports from the Interagency

8 Group and the Director.

9 (3) TERMS.—

10 (A) IN GENERAL.—Each member of the

11 Board shall be appointed for a term of 3 years,

12 except that the initial terms for members may be

13 1, 2, or 3 years in order to establish a rotation

in which 1 14 ⁄3 of the members are selected each

15 year.

16 (B) VACANCY APPOINTMENTS.—Any member

17 appointed to fill a vacancy occurring before the

18 expiration of the term for which the member’s

19 predecessor was appointed shall be appointed

20 only for the remainder of that term. A member

21 may serve after the expiration of that members’

22 term until a successor has taken office. A va23 cancy in the Board shall be filled in the manner

24 in which the original appointment was made. A
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1 vacancy in the Board shall not affect the powers

2 of the Board.

3 (4) QUORUM.—A majority of the members of the

4 Board shall constitute a quorum but a lesser number

5 may hold hearings. Any recommendation may be

6 passed only by a majority of its members present.

7 (5) CHAIRPERSON AND VICE CHAIRPERSON.—The

8 chairperson and vice chairperson of the Board shall

9 be elected by the members. The term of office of the

10 chairperson and vice chairperson shall be 1 year.

11 (6) MEETINGS.—The Board shall meet at the call

12 of the chairperson or a majority of its members.

13 (e) GIFTS, BEQUESTS, AND DEVISES.—The Institute

14 may accept, administer, and use gifts or donations of serv15 ices, money, or property, both real and personal.

16 (f) MAILS.—The Board and the Institute may use the

17 United States mails in the same manner and under the

18 same conditions as other departments and agencies of the

19 United States.

20 (g) STAFF.—The Interagency Group, after considering

21 recommendations made by the Board, shall appoint and fix

22 the pay of a Director.

23 (h) APPLICABILITY OF CERTAIN CIVIL SERVICE

24 LAWS.—The Director and staff of the Institute may be ap25 pointed without regard to the provisions of title 5, United
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1 States Code, governing appointments in the competitive

2 service, and may be paid without regard to the provisions

3 of chapter 51 and subchapter III of chapter 53 of that title

4 relating to classification and General Schedule pay rates,

5 except that an individual so appointed may not receive pay

6 in excess of the maximum rate payable under section 5376

7 of title 5, United States Code.

8 (i) EXPERTS AND CONSULTANTS.—The Board and the

9 Institute may procure temporary and intermittent services

10 under section 3109(b) of title 5, United States Code.

11 (j) REPORT.—The Institute shall submit a biennial re12 port to the Interagency Group and the Congress.

13 SEC. 442. NATIONAL LEADERSHIP ACTIVITIES.

14 (a) IN GENERAL.—The Secretary shall establish and

15 carry out a program of national leadership and evaluation

16 activities to enhance the quality of adult education and

17 family literacy programs nationwide.

18 (b) REQUIRED ACTIVITY.—

19 (1) IN GENERAL.—The program of national lead20 ership and evaluation activities under subsection (a)

21 shall include a national evaluation, conducted by the

22 Secretary, of the programs and activities carried out

23 by States and local service providers with Federal

24 funds received under this subtitle. Such evaluation

25 shall include information on the following:
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1 (A) The manner in which States and local

2 service providers use Federal funds, including

3 the manner in which States allocate such funds

4 among such providers.

5 (B) The manner in which States establish

6 goals and performance standards and use such

7 goals and standards to manage and improve

8 programs.

9 (C) The effectiveness of the funds used under

10 subparagraphs (B) and (C) of section 432(a)(3).

11 (D) The manner in which economically dis12 advantaged individuals and educationally dis13 advantaged adults are being served by States

14 and local service providers.

15 (E) The coordination between programs and

16 activities carried out with Federal funds received

17 under titles II and III and programs and activi18 ties carried out with Federal funds received

19 under this subtitle.

20 (F) The percentage of individuals receiving

21 a service from a one-stop career center system

22 who are referred by such system to a local service

23 provider providing adult education or literacy

24 services.
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1 (2) REPORT.—Not later than September 30,

2 2001, the Secretary shall provide to the Congress and

3 publicly publish the results of the evaluation con4 ducted under paragraph (1).

5 (c) AUTHORIZED ACTIVITIES.—

6 (1) IN GENERAL.—The program of national lead7 ership and evaluation activities under subsection (a)

8 may include the following:

9 (A) Assisting States in developing levels of

10 performance.

11 (B) Research and development.

12 (C) Demonstration of model and innovative

13 programs.

14 (D) Evaluations, including independent

15 evaluations of adult education and family lit16 eracy programs carried out with financial assist17 ance received pursuant to this subtitle.

18 (E) Data collection.

19 (F) Professional development.

20 (G) Technical assistance to States and local

21 service providers receiving Federal financial as22 sistance pursuant to this subtitle.

23 (H) Making grants to State or regional net24 works of literacy resource centers described in

25 section 432(a)(3)(D).
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1 (I) Other activities to enhance the quality of

2 adult education and family literacy programs

3 nationwide.

4 (2) GRANTS, CONTRACTS, AND COOPERATIVE

5 AGREEMENTS.—The Secretary may carry out the ac6 tivities described in paragraph (1) directly or through

7 grants, contracts, and cooperative agreements.

8 Subtitle B—Library Services and

9 Technology Consolidation Grant

10 SEC. 451. PURPOSES.

11 The purposes of this subtitle are—

12 (1) to consolidate Federal library service pro13 grams;

14 (2) to improve public access to information

15 through electronic networks; and

16 (3) to provide linkages among and between li17 braries and one-stop career center systems.

18 SEC. 452. AUTHORIZATION OF APPROPRIATIONS.

19 (a) IN GENERAL.—There are authorized to be appro20 priated to carry out this subtitle $110,000,000 for each of

21 the fiscal years 1997 through 2002.

22 (b) ADVANCE NOTICE OF FUNDING.—For the purpose

23 of affording adequate notice of funding available under this

24 subtitle, an appropriation to carry out this subtitle is au25 thorized to be included in an appropriation Act for the fis-
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1 cal year preceding the fiscal year for which such appropria2 tion is first available for obligation.

3 SEC. 453. ALLOTMENTS.

4 (a) INITIAL ALLOTMENTS.—

5 (1) IN GENERAL.—From the sums appropriated

6 under section 452 for any fiscal year, the Secretary

7 shall allot—

8 (A) $40,000 each to Guam, American

9 Samoa, the Commonwealth of the Northern Mar10 iana Islands, and the Virgin Islands; and

11 (B) $200,000 to each of the other States.

12 (2) RATABLE REDUCTION.—If the sums appro13 priated under section 452 for any fiscal year are in14 sufficient to pay all of the allotments under para15 graph (1), each such allotment shall be ratably re16 duced.

17 (b) ADDITIONAL ALLOTMENTS.—

18 (1) IN GENERAL.—From the remainder of the

19 sums appropriated under section 452 for any fiscal

20 year after the application of subsection (a), the Sec21 retary shall allot to each State an amount which

22 bears the same ratio to such remainder as the popu23 lation of the State bears to the population of all

24 States.
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1 (2) DETERMINATION OF POPULATION OF

2 STATES.—For the purpose of this subsection, the pop3 ulation of each State, and the total population of all

4 States, shall be determined by the Secretary on the

5 basis of the most recent census data available to the

6 Secretary, and the Secretary shall use for such pur7 pose, if available, the annual interim current census

8 data produced by the Secretary of Commerce pursu9 ant to section 181 of title 13, United States Code.

10 SEC. 454. GRANTS TO STATES.

11 (a) IN GENERAL.—The Secretary shall make a grant

12 for a fiscal year to a State if the State—

13 (1) has submitted to the Secretary for the year

14 an annual application that has been approved by the

15 Secretary under section 456; and

16 (2) has entered into a written agreement with

17 the Secretary that—

18 (A) the State will provide 100 percent of the

19 funds paid to the State under this subtitle for the

20 year to the State library administrative agency

21 for the State;

22 (B) such agency will be required to use such

23 funds to carry out activities that—

24 (i) are described in such annual appli25 cation;
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1 (ii) achieve the purposes of this sub2 title; and

3 (iii) satisfy the requirements of section

4 455;

5 (C) there will be available from State and

6 local sources for expenditure by such agency to

7 carry out such activities an amount that equals

8 or exceeds 25 percent of the total cost (as deter9 mined by the Secretary) of carrying out such ac10 tivities for the year; and

11 (D) such agency has the fiscal and legal au12 thority and capability to administer all aspects

13 of such activities.

14 (b) AMOUNT OF GRANTS.—The amount of a grant to

15 a State under subsection (a) for a fiscal year shall equal

16 the lesser of the following:

17 (1) The sum of the initial and additional allot18 ments of the State for the year.

19 (2) 75 percent of the total cost (as determined by

20 the Secretary) of carrying out the activities described

21 in subsection (a)(2)(B) for the year.

22 SEC. 455. USES OF FUNDS.

23 (a) IN GENERAL.—Of the funds provided to a State

24 library administrative agency under section 454(a)(2)(A),
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1 the agency shall expend at least 97 percent for one or more

2 of the following purposes:

3 (1) Electronically connecting libraries with one4 stop career center systems designated or established

5 under section 107 and local service providers receiv6 ing grants under paragraph (1) or (2) of section

7 432(a).

8 (2) Establishing or enhancing linkages among li9 braries.

10 (3) Assisting libraries in accessing information

11 through electronic networks.

12 (4) Encouraging libraries in different Federal,

13 State, and local jurisdictions, and different types of

14 libraries, to establish consortia and share resources.

15 (5) Paying costs for libraries to acquire or share

16 computer systems and telecommunications tech17 nologies.

18 (6) Improving library and information services

19 for individuals who have difficulty using a library or

20 who need special library materials or services, includ21 ing individuals under the age of 18.

22 (b) ADMINISTRATIVE EXPENSES.—In any fiscal year,

23 a State library administrative agency may use not more

24 than 3 percent of the funds provided to the agency under

25 section 454(a)(2)(A) for planning, administration, evalua-
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1 tions, and interagency coordination associated with a grant

2 under this subtitle.

3 SEC. 456. ANNUAL APPLICATIONS.

4 (a) SUBMISSION.—A State that desires to receive a

5 grant under this subtitle for a fiscal year shall submit to

6 the Secretary, in such form and manner and before such

7 deadline as the Secretary shall specify in regulations, an

8 application for such year. Such application shall—

9 (1) establish goals, and specify priorities, for the

10 State consistent with the purposes of this subtitle;

11 (2) describe activities that are consistent with

12 such goals and priorities, the purposes of this subtitle,

13 and the requirements of section 455 that the State li14 brary administrative agency will carry out during

15 such year using such grant;

16 (3) describe the procedures that such agency will

17 use to carry out such activities;

18 (4) describe the methodology that such agency

19 will use to evaluate the success of such activities in

20 achieving such goals and meeting such priorities;

21 (5) describe procedures that such agency will use

22 to involve libraries and library users throughout the

23 State in policy decisions regarding implementation of

24 this subtitle; and
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1 (6) provide assurances satisfactory to the Sec2 retary that such agency will make such reports, in

3 such form and containing such information, as the

4 Secretary may reasonably require to carry out this

5 subtitle and to determine the extent to which funds

6 provided under this subtitle have been effective in car7 rying out its purposes.

8 (b) APPROVAL.—

9 (1) IN GENERAL.—The Secretary shall approve

10 each application submitted under subsection (a) that

11 satisfies the requirements of the subsection.

12 (2) RIGHTS OF STATES UPON DISAPPROVAL.—If

13 the Secretary determines that an application submit14 ted by a State under subsection (a) does not satisfy

15 the requirements of such subsection, the Secretary

16 shall—

17 (A) immediately notify the State of such de18 termination and the reasons for such determina19 tion; and

20 (B) offer the State an opportunity to revise

21 its application to correct any deficiencies.
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1 TITLE V—AMENDMENTS TO

2 REHABILITATION ACT OF 1973

3 Subtitle A—Vocational

4 Rehabilitation Consolidation Grant

5 CHAPTER 1—TRANSITION PERIOD

6 SEC. 501. TRANSITION.

7 With respect to the amendment made by section 511(4)

8 to title I of the Rehabilitation Act of 1973, the Secretary

9 of Education, acting through the Commissioner of the Reha10 bilitation Services Administration, shall administer the

11 amendment in accordance with the following:

12 (1) During fiscal year 1996, the Secretary shall

13 develop administrative policies for implementing the

14 amendment.

15 (2) During the fiscal years 1997 and 1998, the

16 Secretary shall begin implementing the amendment in

17 accordance with paragraph (4).

18 (3) The Secretary shall ensure that, by the first

19 day of fiscal year 1999, the amendment is fully im20 plemented.

21 (4) For purposes of paragraph (2), the Secretary

22 shall ensure that, before the first day of fiscal year

23 1999, the following requirements, administered as

24 conditions on the receipt of grants under such title,

25 have been met:
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1 (A) The States have complied with section

2 103(b)(4) of such title (as amended by section

3 511) regarding the participation of certain pro4 viders.

5 (B) The States have established policies and

6 made arrangements for the operation of the sys7 tem of vouchers described in section 103(c) of

8 such title, including with respect to the reim9 bursement of providers.

10 (C) The States have established policies and

11 made arrangements under section 103(b)(12) of

12 such title regarding the training of the manage13 ment and staff of one-stop career centers with re14 spect to individuals with disabilities.

15 (D) The States have established policies and

16 made arrangements under section 104 of such

17 title regarding the establishment of such centers,

18 including providing for the significant partici19 pation of community-based providers in the pro20 gram carried out by the State pursuant to such

21 title.

22 (E) Such other requirements under the

23 amendment as the Secretary determines to be ap24 propriate.
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1 (5)(A) Notwithstanding the amendment, during

2 the fiscal years 1996 through 1998, the provisions of

3 title I of the Rehabilitation Act of 1973 that were in

4 effect on the day before the date of the enactment of

5 this Act continue to be in effect, subject to paragraphs

6 (1) through (4). In implementing the amendment, the

7 Secretary shall seek to avoid unnecessarily disrupting

8 the provision of services under such title to individ9 uals who, as of the date of the enactment of this Act,

10 were receiving services pursuant to an individualized

11 plan under such title.

12 (B) On and after the first day of fiscal year

13 1999, the provisions referred to in the first sentence

14 of subparagraph (A) do not have any legal effect.

15 CHAPTER 2—REVISION OF TITLE I OF

16 REHABILITATION ACT OF 1973

17 SEC. 511. REVISION OF TITLE I.

18 (a) IN GENERAL.—Effective October 1, 1995, the Reha19 bilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended—

20 (1) by transferring section 112 from the current

21 placement of the section;

22 (2) by redesignating such section as section 510;

23 (3) by adding such section at the end of title V;

24 and

25 (4) by amending title I to read as follows:
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1 ‘‘TITLE I—VOCATIONAL

2 REHABILITATION SERVICES

3 ‘‘SEC. 100. PURPOSE.

4 ‘‘The purpose of this title is to assist States in making

5 available to individuals with disabilities a program of em6 ployment, training, and rehabilitation services that is con7 sistent with their strengths, resources, priorities, concerns,

8 abilities, and capabilities; that maximizes individuals’ con9 trol over their vocational and career choices; and that is

10 in accordance with the goal of assuring equality of oppor11 tunity, full participation, independent living, and economic

12 self-sufficiency for such individuals.

13 ‘‘SEC. 101. FORMULA GRANTS.

14 ‘‘(a) IN GENERAL.—

15 ‘‘(1) FORMULA GRANTS.—In the case of each

16 State that submits to the Secretary a workforce devel17 opment and literacy plan for fiscal year 1999 or any

18 subsequent fiscal year that meets the requirement of

19 section 104 of the Consolidated and Reformed Edu20 cation, Employment, and Rehabilitation Systems Act,

21 the Secretary shall make a grant for the year to the

22 State as the Federal share of carrying out the pur23 poses specified in this title. The grant shall consist of

24 the allotment determined for the State under section

25 107.
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1 ‘‘(2) CONDITIONS FOR GRANT.—A State may re2 ceive a grant under paragraph (1) for a fiscal year

3 only if the State meets the conditions described in this

4 title for the State for the fiscal year.

5 ‘‘(b) ADMINISTRATOR OF FEDERAL PROGRAM.—The

6 Secretary shall carry out this title acting through the Com7 missioner of the Rehabilitation Services Administration, ex8 cept as indicated otherwise.

9 ‘‘(c) RULE OF CONSTRUCTION.—The purpose specified

10 in section 100 shall be carried out only in accordance with

11 the other provisions of this title.

12 ‘‘(d) FUNDING.—

13 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—For

14 the purpose of carrying out this title, there are au15 thorized to be appropriated such sums as may be nec16 essary for each of the fiscal years 1999 through 2002,

17 except that the amount to be appropriated for a fiscal

18 year shall not be less than the amount of the appro19 priation under this subsection for the immediately

20 preceding fiscal year, plus the amount of the

21 Consumer Price Index addition determined under

22 paragraph (2) for the immediately preceding fiscal

23 year.

24 ‘‘(2) ADJUSTMENTS PURSUANT TO CONSUMER

25 PRICE INDEX.—
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1 ‘‘(A) Not later than November 15 of each

2 fiscal year, the Secretary of Labor shall publish

3 in the Federal Register the percentage change in

4 the Consumer Price Index published for October

5 of the preceding fiscal year and October of the

6 fiscal year in which such publication is made.

7 ‘‘(B) If in any fiscal year the percentage

8 change published under subparagraph (A) indi9 cates an increase in the Consumer Price Index,

10 then the amount to be appropriated under para11 graph (1) for the subsequent fiscal year shall be

12 at least the amount appropriated for the fiscal

13 year in which the publication is made under

14 subparagraph (A) increased by such percentage

15 change.

16 ‘‘(C) If in any fiscal year the percentage

17 change published under subparagraph (A) does

18 not indicate an increase in the Consumer Price

19 Index, then the amount to be appropriated under

20 paragraph (1) for the subsequent fiscal year shall

21 be at least the amount appropriated for the fiscal

22 year in which the publication is made under

23 subparagraph (A).

24 ‘‘(D) For purposes of this paragraph, the

25 term ‘Consumer Price Index’ means the
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1 Consumer Price Index for All Urban Consumers,

2 published monthly by the Bureau of Labor Sta3 tistics.

4 ‘‘(3) AUTOMATIC EXTENSION OF AUTHORIZA5 TION.—

6 ‘‘(A) Unless, in the regular session that ends

7 prior to the beginning of the last fiscal year for

8 which an authorization of appropriations is pro9 vided in paragraph (1), legislation has been en10 acted that has the effect of extending such au11 thorization, such authorization is automatically

12 extended for one additional year.

13 ‘‘(B) The amount authorized to be appro14 priated for the additional fiscal year described

15 in subparagraph (A) shall be an amount equal

16 to the amount appropriated for such program for

17 fiscal year 2002, plus the amount of the

18 Consumer Price Index addition determined

19 under paragraph (2) for the immediately preced20 ing fiscal year.

21 ‘‘(C) In any case where the Commissioner is

22 required under an applicable statute to carry out

23 certain acts or make certain determinations that

24 are necessary for the continuation of the pro25 gram authorized by this title, and such acts or
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1 determinations are required during the last fis2 cal year for which an authorization of appro3 priations is provided in paragraph (1), such acts

4 and determinations shall be required during any

5 fiscal year for which subparagraph (A) is in op6 eration.

7 ‘‘SEC. 102. ALLOCATION WITHIN STATE OF ADMINISTRATIVE

8 RESPONSIBILITIES.

9 ‘‘(a) IN GENERAL.—For purposes of section 101(a), a

10 State will—

11 ‘‘(1) subject to subsection (b), reserve not more

12 than 20 percent of the grant under such section for

13 the fiscal year involved for carrying out the respon14 sibilities of a State administrative agent under sec15 tion 103; and

16 ‘‘(2) reserve not less than 80 percent of the grant

17 for carrying out the responsibilities under section 104

18 of local workforce development boards and one-stop

19 career centers with respect to workforce development

20 areas.

21 ‘‘(b) ADDITIONAL STATE RESPONSIBILITIES.—

22 Amounts reserved by a State under subsection (a)(1) may

23 be expended by the State administrative agent to carry out

24 responsibilities that otherwise would be carried out under

25 section 104 by local workforce development boards or one-
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1 stop career centers, if the State determines that such ex2 penditures are justified to make available goods and services

3 that could not otherwise be obtained within a local

4 workforce development area, to provide services to individ5 uals unable to utilize the one-stop career centers, or to other6 wise ensure the efficient and equitable provision in the

7 State of services under this title, including the provision

8 of services for individuals in rural areas.

9 ‘‘(c) CERTAIN DEFINITIONS.—For purposes of this Act,

10 the terms ‘State administrative agent’, ‘local workforce de11 velopment area’, ‘local workforce development board’, and

12 ‘one-stop career center’ have the meanings given such terms

13 in sections 105 through 108, respectively, of the Consoli14 dated and Reformed Education, Employment, and Reha15 bilitation Systems Act.

16 ‘‘SEC. 103. RESPONSIBILITIES OF STATE ADMINISTRATIVE

17 AGENT.

18 ‘‘(a) STATE ADMINISTRATIVE AGENT.—In carrying

19 out the requirements of the Consolidated and Reformed

20 Education, Employment, and Rehabilitation Systems Act,

21 a Governor may designate—

22 ‘‘(1) one State administrative agent to be respon23 sible for carrying out this title for individuals who

24 are blind; and
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1 ‘‘(2) a different State administrative agent to

2 carry out the remaining responsibilities in this title.

3 ‘‘(b) RESPONSIBILITIES.—For purposes of section

4 101(a) and the operation in a State of the program under

5 this title:

6 ‘‘(1) This subsection, and the subsequent provi7 sions of this section, will be carried out by State ad8 ministrative agents designated by the Governor in ac9 cordance with subsection (a), through the collaborative

10 process established under section 103 of the Consoli11 dated and Reformed Education, Employment, and

12 Rehabilitation Systems Act.

13 ‘‘(2)(A) The State will provide to the public an

14 explanation of the methods by which the State will

15 provide vocational rehabilitation services (as defined

16 in section 104(b))—

17 ‘‘(i) to all eligible individuals (as defined in

18 section 105(d)); and

19 ‘‘(ii) within all local workforce delivery

20 areas in the State.

21 ‘‘(B) In the event that such services cannot be

22 provided to all eligible individuals who apply for the

23 services, the State will show and provide the justifica24 tion for the order to be followed in selecting individ25 uals to whom the services will be provided.
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1 ‘‘(C) The order of selection under subparagraph

2 (B) will be determined on the basis of serving first

3 those individuals with the most severe disabilities, in

4 accordance with criteria established by the State.

5 ‘‘(3) The State will establish guidelines provid6 ing that, in the case of an individual to whom the

7 State will provide a service (in accordance with the

8 order of selection under paragraph (2) and the assess9 ment of needs under section 104(c)(1)), the individual

10 will have the option of receiving the service from a

11 provider designated by the center or from a provider

12 selected by the individual pursuant to vouchers under

13 subsection (c).

14 ‘‘(4) Pursuant to section 109 of the Consolidated

15 and Reformed Education, Employment, and Reha16 bilitation Systems Act, the State will make signifi17 cant efforts to encourage the participation in the

18 State program of community-based private providers,

19 with special consideration given to providers who

20 have received funds under this Act regarding projects

21 with industry or supported employment services, or

22 under the Act commonly known as the Javits-Wagner23 O’Day Act (41 U.S.C. 46 et seq.) for employment and

24 training services.
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1 ‘‘(5) The State will establish provisions to govern

2 determinations under section 105 (relating to the eli3 gibility of individuals).

4 ‘‘(6) The State will establish standards to govern

5 the conduct under section 104(c)(1) of assessments of

6 need, including the development of a methodology that

7 will be applied in a reasonably uniform manner to

8 all individuals for whom such assessments are con9 ducted, and that (subject to the order of selection

10 under paragraph (2)) will be designed to prevent sub11 stantial disparities, among individuals with com12 parable circumstances, in the monetary value of the

13 services to be provided pursuant to the assessments.

14 ‘‘(7)(A) The State will establish procedures

15 through which an individual may request and obtain

16 an impartial review, utilizing an impartial hearing

17 officer, of whether standards for determinations of eli18 gibility for services, assessments of vocational reha19 bilitation needs, and development of individualized

20 rehabilitation and employment plans under this title

21 were correctly applied to the individual by the one22 stop career center involved.

23 ‘‘(B) The State will designate a number of days

24 (applied uniformly to all individuals) within which

25 review under subparagraph (A) will be conducted
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1 once a request for such review is made by an individ2 ual, subject to subparagraph (C).

3 ‘‘(C)(i) The State will provide that there may be

4 an informal hearing, mediation, or alternatives to

5 such review, if agreed upon by the individual and the

6 one-stop career center involved.

7 ‘‘(ii) The State will provide that if, in a process

8 utilized under clause (i) by an individual, there is

9 not a final disposition of the matter involved, review

10 under subparagraph (A) will remain available to the

11 individual.

12 ‘‘(8) The State will ensure that vocational reha13 bilitation services under this title, and related core

14 services, are provided by personnel who are qualified

15 to provide the services involved. For purposes of the

16 preceding sentence, the term ‘core services’ has the

17 meaning indicated for such term under title I of the

18 Consolidated and Reformed Education, Employment,

19 and Rehabilitation Systems Act.

20 ‘‘(9) The State will establish plans, policies, and

21 procedures to be followed in carrying out the program

22 under this title in the State (including entering into

23 a formal interagency cooperative agreement with edu24 cation officials responsible for the provision of a free

25 appropriate public education to students who are in-
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1 dividuals with disabilities). The State will ensure

2 that such plans, policies, and procedures are designed

3 in accordance with the following:

4 ‘‘(A)(i) To facilitate the development and

5 accomplishment of the goals and objectives de6 scribed in clause (ii) (including the specification

7 of plans for coordination with the educational

8 agencies in the provision of transition services),

9 to the extent that the goals and objectives are in10 cluded in an individualized education program

11 of a student.

12 ‘‘(ii) The goals and objectives referred to in

13 clause (i) are long-term rehabilitation goals; in14 termediate rehabilitation objectives; and goals

15 and objectives related to enabling a student to

16 live independently before the student leaves a

17 school setting.

18 ‘‘(B) To facilitate the transition from the

19 provision of a free appropriate public education

20 under the responsibility of an educational agen21 cy to the provision of vocational rehabilitation

22 services under this title, including the specifica23 tion of plans for coordination with educational

24 agencies in the provision of transition services to

25 an individual.
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1 ‘‘(C) To provide for—

2 ‘‘(i) provisions for determining State

3 lead agencies and qualified personnel re4 sponsible for transition services;

5 ‘‘(ii) procedures for outreach to and

6 identification of youth in need of such serv7 ices; and

8 ‘‘(iii) a timeframe for evaluation and

9 follow-up of youth who have received such

10 services.

11 ‘‘(10) The State will provide for coordination

12 and working relationships with the Statewide Inde13 pendent Living Council established under section 705

14 and independent living centers within the State.

15 ‘‘(11) The State will provide for interagency co16 operation with, and the utilization of the services and

17 facilities of, the State agencies administering the

18 State’s public assistance programs, and other pro19 grams for individuals with disabilities.

20 ‘‘(12) With respect to the one-stop career centers

21 operated pursuant to section 104, the State will pro22 vide for the appropriate training of the management

23 and staff of the centers regarding the effective provi24 sion of services to individuals with disabilities.
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1 ‘‘(13) The State will provide technical assistance

2 to local boards, one-stop career centers, and providers

3 relating to the effective provision of vocational reha4 bilitation services under this title, including the effec5 tive development of individualized rehabilitation and

6 employment plans, and will ensure that such tech7 nical assistance is provided through appropriate

8 means.

9 ‘‘(c) AVAILABILITY OF VOUCHER SYSTEM REGARDING

10 SERVICES.—For purposes of section 101(a) and the oper11 ation in a State of the program under this title:

12 ‘‘(1) The State will provide for the establishment

13 of a system to carry out this subsection.

14 ‘‘(2) In the case of an eligible individual who (in

15 accordance with the order of selection under sub16 section (b)(2) and the assessment of needs under sec17 tion 105(b)(2)(A)) will receive vocational rehabilita18 tion services under this title, the one-stop career cen19 ter involved will, upon request of the individual, pro20 vide to the individual vouchers in accordance with

21 this subsection.

22 ‘‘(3) Vouchers under this subsection will enable

23 such individual to obtain the vocational rehabilita24 tion services involved from providers selected by the

25 individual from among a list of providers approved
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1 by the State for such purpose in accordance with sec2 tion 109 of the Consolidated and Reformed Edu3 cation, Employment, and Rehabilitation Systems Act.

4 ‘‘(4) The monetary value of a voucher provided

5 to the individual for a particular type of service will

6 be calculated at a fair market value.

7 ‘‘(5) To the extent practicable, the list of provid8 ers under paragraph (3) will provide for the avail9 ability within each local workforce development area

10 of a broad range of services.

11 ‘‘(d) STATE OPTIONS.—With respect to compliance

12 with this section, a State may, in the discretion of the State,

13 expend a grant under section 101 for the following:

14 ‘‘(1) To disseminate findings from research re15 garding vocational rehabilitation services, after con16 sideration of requests from local workforce develop17 ment boards and one-stop career centers regarding the

18 types of information needed by such boards and cen19 ters.

20 ‘‘(2) To conduct demonstration projects regard21 ing improvements with respect to vocational rehabili22 tation services, subject to providing the results of such

23 projects to the Commissioner and as appropriate dis24 seminating the results within the State.
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1 ‘‘(e) CORE STANDARDS, PERFORMANCE GOALS, AND

2 MEASURES.—For purposes of section 101(a):

3 ‘‘(1) The State involved will develop and imple4 ment a statewide system of core standards and meas5 ures of performance for programs established under

6 this title, based upon performance standards described

7 in paragraph (3), and consistent with the State’s

8 goals and objectives and the benchmarking process de9 scribed in the workforce development and literacy

10 plan submitted by the State under section 104 of the

11 Consolidated and Reformed Education, Employment,

12 and Rehabilitation Systems Act.

13 ‘‘(2) The statewide system will—

14 ‘‘(A) establish performance goals to define

15 the level of performance to be achieved by indi16 viduals served under this title and to evaluate

17 the quality and effectiveness of services and ac18 tivities under this title;

19 ‘‘(B) express such goals in an objective,

20 quantifiable, and measurable form;

21 ‘‘(C) establish performance indicators or

22 benchmarks that the State and local recipients of

23 funds will use in measuring or assessing progress

24 toward achieving such goals; and
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1 ‘‘(D) provide biennial reports to the public

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

3 achieving its goals.

4 ‘‘(3) The statewide system will include measures

5 of—

6 ‘‘(A) placement, retention, and earnings of

7 participants in integrated employment, includ8 ing retention and earnings at 6 months, and at

9 1 year after program termination, respectively;

10 ‘‘(B) the percentage of individuals served

11 who had severe disabilities, including those indi12 viduals determined to have a disability under

13 title II or title XVI of the Social Security Act;

14 and

15 ‘‘(C) other relevant measures of program

16 performance included in the standards and indi17 cators promulgated by the Commissioner under

18 sections 621 and 106 (relating to projects with

19 industry, and relating to evaluation standards

20 and indicators for vocational rehabilitation, re21 spectively), as such sections were in effect for fis22 cal year 1995.
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1 ‘‘SEC. 104. RESPONSIBILITIES FOR LOCAL BOARDS AND

2 SERVICE CENTERS.

3 ‘‘(a) PROVISION OF VOCATIONAL REHABILITATION

4 SERVICES.—For purposes of section 101(a) and the oper5 ation in a State of the program under this title:

6 ‘‘(1) This section will be carried out by the one7 stop career centers in the State, with each such center

8 acting under the guidance of the local workforce devel9 opment board for the local workforce area within

10 which the center operates. Such centers will provide

11 services under this section directly or through con12 tract.

13 ‘‘(2) In accordance with the order of selection

14 under section 103(b)(2), a one-stop career center will,

15 in expending amounts provided to the center from a

16 grant under section 101, carry out the following:

17 ‘‘(A) Make determinations under section

18 105 of the eligibility of individuals for voca19 tional rehabilitation services (as defined in sub20 section (b)).

21 ‘‘(B) Provide for vocational rehabilitation

22 services for eligible individuals.

23 ‘‘(C) In the case of individuals with severe

24 disabilities, conduct outreach and intake activi25 ties for such individuals who are not able to di-
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1 rectly access the one-stop career centers because

2 of the nature of their disabilities.

3 ‘‘(3) A one-stop career center will, in expending

4 amounts provided to the center from a grant under

5 section 101, make vocational rehabilitation services

6 available at a variety of locations and, as appro7 priate for particular populations, in a variety of en8 vironments.

9 ‘‘(b) DEFINITION.—For purposes of this title, the term

10 ‘vocational rehabilitation services’ means such goods or

11 services for eligible individuals as are—

12 ‘‘(1) necessary to render the individuals employ13 able and achieve an employment outcome; and

14 ‘‘(2) provided in response to needs that arise, to

15 a significant extent, from the disability involved and

16 do not duplicate, to any significant extent, the core

17 services available under title I of the Consolidated

18 and Reformed Education, Employment, and Reha19 bilitation Systems Act.

20 ‘‘(c) CERTAIN SERVICES.—For purposes of section

21 101(a), the vocational rehabilitation services available

22 through one-stop career centers will include the following:

23 ‘‘(1) An assessment of the needs of eligible indi24 viduals for such services.
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1 ‘‘(2) Development, in accordance with section

2 105(b)(2), of an individualized rehabilitation and em3 ployment plan for the purpose of identifying employ4 ment goals, appropriate intermediate rehabilitation

5 objectives, and an appropriate combination of goods

6 and services for the individual to achieve the employ7 ment goals.

8 ‘‘(3) Counseling, guidance, and work-related

9 placement services for individuals with disabilities,

10 including job search assistance, placement assistance,

11 job retention services, personal assistance services,

12 and follow-up, follow-along, and specific

13 postemployment services necessary to assist such indi14 viduals to maintain, regain, or advance in employ15 ment.

16 ‘‘(4) Vocational and other training services for

17 individuals with disabilities, including personal and

18 vocational adjustment, books, or other training mate19 rials, and such services to the families of such indi20 viduals as are necessary to the adjustment or rehabili21 tation of such individuals.

22 ‘‘(5) Rehabilitation technology services.

23 ‘‘(6) Supported employment services.

24 ‘‘(7) Physical and mental restoration services.
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1 ‘‘(8) Interpreter services for individuals who are

2 deaf, and reader services for individuals who are

3 blind.

4 ‘‘(9) Rehabilitation teaching services and ori5 entation and mobility services for individuals who

6 are blind.

7 ‘‘(10) Referral and other services designed to as8 sist individuals with disabilities in securing needed

9 services from other agencies through agreements devel10 oped under section 103(b)(10), if such services are not

11 available under this Act.

12 ‘‘(11) Transportation in connection with the ren13 dering of any vocational rehabilitation service.

14 ‘‘(12) Telecommunications, sensory, and other

15 technological aids and devices.

16 ‘‘(13) On-the-job, or other related personal-assist17 ance services, provided while eligible individuals are

18 receiving other vocational rehabilitation services

19 under this title.

20 ‘‘(d) CERTAIN ARRANGEMENTS.—For purposes of sec21 tion 101(a), a one-stop career center will, with respect to

22 the provision of vocational rehabilitation services to indi23 viduals with the most severe disabilities, provide for nec24 essary arrangements with community-based providers, in25 cluding arrangements regarding supported employment
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1 services and extended services, periodic reviews of individ2 uals placed in extended employment, and services to pro3 mote movement from extended employment to integrated

4 employment.

5 ‘‘(e) OPTIONAL PROVISION OF OTHER SERVICES.—For

6 purposes of this title, a one-stop career center may provide

7 such vocational rehabilitation services in addition to the

8 services specified in subsection (c) as the center determines

9 to be appropriate.

10 ‘‘(f) ALLOCATION FOR CORE SERVICES.—For purposes

11 of section 101(a):

12 ‘‘(1) With respect to a fiscal year, a local

13 workforce development board receiving amounts from

14 a grant under section 101 will reserve an amount for

15 the provision of core services under title I of the Con16 solidated and Reformed Education, Employment, and

17 Rehabilitation Systems Act.

18 ‘‘(2) The amount so reserved will be based on the

19 number of eligible individuals with disabilities in the

20 local workforce development area and the costs of

21 training employees of the one-stop career centers to

22 provide high-quality services to individuals with dis23 abilities.

24 ‘‘(g) PERFORMANCE PAYMENTS REGARDING VOUCH25 ERS.—For purposes of section 101(a):
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1 ‘‘(1) The local workforce development board in2 volved will ensure that, in providing for the payment

3 of services provided pursuant to vouchers, a portion

4 of the total payment is withheld from the provider

5 until the delivery of the services involved is completed

6 in reasonable accordance with the outcome designated

7 for the service pursuant to a prior understanding

8 with the provider.

9 ‘‘(2) In the case of education, training, and

10 placement services that are designed to lead to an em11 ployment outcome, a portion of the total payment will

12 be withheld from the provider until—

13 ‘‘(A) the participant has successfully com14 pleted the training; and

15 ‘‘(B) the participant has been employed,

16 and has retained employment for a period of not

17 less than 90 days.

18 ‘‘(h) PAYOR OF LAST RESORT REGARDING MEDICAL

19 SERVICES AND EDUCATIONAL ASSISTANCE.—For purposes

20 of section 101(a), a State will not expend a grant under

21 section 101 to pay for training services in institutions of

22 higher education, or to pay for medical services, unless sig23 nificant efforts have been made to secure payments, in whole

24 or in part, from other sources, except that such efforts are

25 not required if making the efforts would delay the provision
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1 of such services to any eligible individual who is at extreme

2 medical risk, or if making the efforts would result in the

3 loss of a job placement that (but for the efforts) would be

4 immediately available to an eligible individual.

5 ‘‘SEC. 105. ELIGIBLE INDIVIDUAL.

6 ‘‘(a) IN GENERAL.—For purposes of section 101:

7 ‘‘(1) An individual will not receive vocational

8 rehabilitation services under this title unless the indi9 vidual—

10 ‘‘(A) is an individual with a disability

11 under section 7(8)(A); and

12 ‘‘(B) requires vocational rehabilitation serv13 ices to prepare for, enter, engage in, or retain

14 gainful employment.

15 ‘‘(2) If the individual has a disability or is blind

16 as determined pursuant to title II or title XVI of the

17 Social Security Act, the individual will be considered

18 to have—

19 ‘‘(A) a physical or mental impairment

20 which for such individual constitutes or results

21 in a substantial impediment to employment

22 under section 7(8)(A)(i); and

23 ‘‘(B) a severe physical or mental impair24 ment which seriously limits one or more func-
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1 tional capacities in terms of an employment out2 come under section 7(15)(A)(i).

3 ‘‘(3) It will be presumed that an individual can

4 benefit in terms of an employment outcome from vo5 cational rehabilitation services for purposes of section

6 7(8)(A)(ii), unless the one-stop career center involved

7 can demonstrate by clear and convincing evidence

8 that such individual is incapable of benefiting from

9 vocational rehabilitation services in terms of an em10 ployment outcome.

11 ‘‘(b) PROCESS.—For purposes of section 101(a), a

12 State will ensure that, subject to the order of selection under

13 section 102(b)(2), the following applies to an individual:

14 ‘‘(1) Once the individual makes a request in per15 son for a determination of eligibility:

16 ‘‘(A) A qualified rehabilitation adviser will

17 be made available to the individual regarding

18 the process of obtaining services under this title.

19 ‘‘(B) An initial interview will be conducted,

20 followed by an initial assessment.

21 ‘‘(C) A final determination will be made

22 not later than 30 days after the request (subject

23 to the cooperation of the individual in the proc24 ess of determination).
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1 ‘‘(D) The determination of eligibility will be

2 based on the review of existing data described in

3 clause (i) of section 7(22)(A), and, to the extent

4 necessary, the preliminary assessment described

5 in clause (ii) of such section.

6 ‘‘(E) If it is determined that the individual

7 is not an eligible individual, the individual will

8 be provided a written statement explaining the

9 following:

10 ‘‘(i) The basis of the determination.

11 ‘‘(ii) The availability of impartial re12 view under section 103(b)(7).

13 ‘‘(iii) The availability of services under

14 the client assistance program under section

15 510.

16 ‘‘(2)(A) If it is determined that the individual is

17 an eligible individual—

18 ‘‘(i) the needs of the individual for vo19 cational rehabilitation services will be as20 sessed; and

21 ‘‘(ii) subject to subparagraph (D), an

22 individualized rehabilitation and employ23 ment plan will be developed for the individ24 ual regarding the provision of services pur25 suant to clause (i).
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1 ‘‘(B) The plan under subparagraph (A) will be

2 developed and mutually agreed upon by the individ3 ual and an appropriate staff member of the one-stop

4 career center involved.

5 ‘‘(C) A plan under subparagraph (A) is individ6 ualized if the plan is consistent with the unique

7 strengths, resources, priorities, concerns, abilities, and

8 capabilities of the individual for whom the plan is de9 veloped.

10 ‘‘(D) A plan under subparagraph (A) is not re11 quired for an individual if the individual signs a

12 waiver stating that such a plan is not necessary for

13 the individual.

14 ‘‘(c) RULE OF CONSTRUCTION.—This title may not be

15 construed as establishing an entitlement in any individual.

16 ‘‘(d) DEFINITION.—For purposes of this title, the term

17 ‘eligible individual’ means an individual described in sub18 section (a)(1).

19 ‘‘SEC. 106. STATE REHABILITATION ADVISORY COUNCIL.

20 ‘‘(a) IN GENERAL.—For purposes of section 101(a):

21 ‘‘(1) A State will establish a State Rehabilitation

22 Advisory Council (referred to in this section as the

23 ‘Council’) in accordance with this section.

24 ‘‘(2) The Council will be composed of the follow25 ing:
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1 ‘‘(A) Representatives of organizations with2 in the State providing services to individuals

3 with disabilities and their families, including

4 representatives of the client assistance program

5 under section 510.

6 ‘‘(B) Representatives of business, industry,

7 and labor.

8 ‘‘(C) Representatives of disability advocacy

9 groups representing a cross section of—

10 ‘‘(i) individuals with physical, cog11 nitive, sensory, and mental disabilities; and

12 ‘‘(ii) parents, family members, guard13 ians, advocates, or authorized representa14 tives, of individuals with disabilities who

15 have difficulty in representing themselves or

16 are unable due to their disabilities to rep17 resent themselves.

18 ‘‘(3) The State administrative agent will be an

19 ex officio member of the Council.

20 ‘‘(4) Members of the Council will be appointed

21 by the Governor or another entity that has appoint22 ment authority under State law.

23 ‘‘(5) A majority of Council members will be per24 sons who are—
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1 ‘‘(A) individuals with disabilities described

2 in section 7(8)(B); and

3 ‘‘(B) not employed by the designated State

4 administrative agent.

5 ‘‘(6)(A) Except as provided in subparagraph

6 (B), the Council will select a chairperson from among

7 the membership of the Council.

8 ‘‘(B) In States in which the Governor does not

9 have veto power pursuant to State law, the Governor

10 will designate a member of the Council to serve as the

11 chairperson of the Council or will require the Council

12 to so designate such a member.

13 ‘‘(7) Each member of the Council will serve for

14 a term determined by the Governor or another entity

15 that has appointment authority under State law.

16 ‘‘(8) Any vacancy occurring in the membership

17 of the Council will be filled in the same manner as

18 the original appointment. The vacancy will not affect

19 the power of the remaining members to execute the

20 duties of the Council.

21 ‘‘(b) FUNCTIONS OF COUNCIL.—For purposes of section

22 101(a), the Council will carry out the following:

23 ‘‘(1) Advise the collaborative process under sec24 tion 103 of the Consolidated and Reformed Edu25 cation, Employment, and Rehabilitation Systems Act,
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1 and the State administrative agent, in the prepara2 tion of the State workforce development and literacy

3 plan and other plans, reports, needs assessments, and

4 evaluations required by this title.

5 ‘‘(2) To the extent feasible, conduct a review and

6 analysis of the effectiveness of, and consumer satisfac7 tion with, the delivery of core services and vocational

8 rehabilitation services to individuals with disabilities

9 within the State.

10 ‘‘(3) Prepare and submit an annual report to the

11 collaborative process or appropriate State adminis12 trative agent and the Commissioner on the status of

13 vocational rehabilitation programs operated within

14 the State, and make the report available to the public.

15 ‘‘(4) Coordinate with other councils within the

16 State established to address the needs of individuals

17 with disabilities.

18 ‘‘(5) Perform such other functions, consistent

19 with the purpose of this title, as the State Rehabilita20 tion Advisory Council determines to be appropriate,

21 that are comparable to the other functions performed

22 by the Council.

23 ‘‘(c) RESOURCES.—

24 ‘‘(1) PLAN.—For purposes of section 101(a), the

25 Council will prepare, in conjunction with the State
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1 administrative agent, a plan for the provision of such

2 resources, including such staff and other personnel, as

3 may be necessary to carry out the functions of the

4 Council under this section. The resource plan shall, to

5 the maximum extent possible, rely on the use of re6 sources in existence during the period of implementa7 tion of the plan.

8 ‘‘(2) RESOLUTION OF DISAGREEMENTS.—For

9 purposes of section 101(a), to the extent that there is

10 a disagreement between the Council and the State ad11 ministrative agent in regard to the resources nec12 essary to carry out the functions of the Council as set

13 forth in this section, the disagreement will be resolved

14 by the Governor or appointing agency identified in

15 subsection (a)(4).

16 ‘‘(3) SUPERVISION AND EVALUATION.—For pur17 poses of section 101(a), the Council will, consistent

18 with State law, supervise and evaluate such staff and

19 other personnel as may be necessary to carry out its

20 functions under this section.

21 ‘‘(4) PERSONNEL CONFLICT OF INTEREST.—For

22 purposes of section 101(a), while assisting the Council

23 in carrying out its duties, staff and other personnel

24 will not be assigned duties by the State administra-
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1 tive agent or any other agency or office of the State,

2 that would create a conflict of interest.

3 ‘‘(d) CONFLICT OF INTEREST.—For purposes of section

4 101(a), no member of the Council will cast a vote on any

5 matter that would provide direct financial benefit to the

6 member or otherwise give the appearance of a conflict of

7 interest under State law.

8 ‘‘(e) MEETINGS.—For purposes of section 101(a), the

9 Council will convene meetings and conduct such forums or

10 hearings as the Council considers appropriate. The meet11 ings, hearings, and forums will be publicly announced. The

12 meetings will be open and accessible to the general public

13 unless there is a valid reason for an executive session.

14 ‘‘(f) COMPENSATION AND EXPENSES.—For purposes of

15 section 101(a), the Council may use funds appropriated

16 under this title to reimburse members of the Council for

17 reasonable and necessary expenses of attending Council

18 meetings and performing Council duties (including child

19 care and personal assistance services), and to pay com20 pensation to a member of the Council, if such member is

21 not employed or must forfeit wages from other employment,

22 for each day the member is engaged in performing the du23 ties of the Council.

24 ‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec25 tion prohibits a State from establishing and providing
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1 funds to a separate council to carry out functions described

2 in subsection (b) with respect to vocational rehabilitation

3 services for individuals who are blind.

4 ‘‘SEC. 107. AMOUNT OF ALLOTMENT.

5 ‘‘(a)(1) Subject to the provisions of subsection (d), for

6 each fiscal year beginning before October 1, 1978, each State

7 shall be entitled to an allotment of an amount bearing the

8 same ratio to the amount authorized to be appropriated

9 under section 101(d) for allotment under this section as the

10 product of (A) the population of the State, and (B) the

11 square of its allotment percentage, bears to the sum of the

12 corresponding products for all the States.

13 ‘‘(2)(A) For each fiscal year beginning on or after Oc14 tober 1, 1978, each State shall be entitled to an allotment

15 in an amount equal to the amount such State received

16 under paragraph (1) for the fiscal year ending September

17 30, 1978, and an additional amount determined pursuant

18 to subparagraph (B) of this paragraph.

19 ‘‘(B) For each fiscal year beginning on or after October

20 1, 1978, each State shall be entitled to an allotment, from

21 any amount authorized to be appropriated for such fiscal

22 year under section 101(d) for allotment under this section

23 in excess of the amount appropriated under such section

24 for the fiscal year ending September 30, 1978, in an

25 amount equal to the sum of—
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1 ‘‘(i) an amount bearing the same ratio to 50 per2 cent of such excess amount as the product of the popu3 lation of the State and the square of its allotment per4 centage bears to the sum of the corresponding prod5 ucts for all the States; and

6 ‘‘(ii) an amount bearing the same ratio to 50

7 percent of such excess amount as the product of the

8 population of the State and its allotment percentage

9 bears to the sum of the corresponding products for all

10 the States.

11 ‘‘(3) The sum of the payment to any State (other than

12 Guam, American Samoa, the Virgin Islands, and the

13 Northern Mariana Islands) under this subsection for any

14 fiscal year which is less than one-third of 1 percent of the

15 amount appropriated under section 101(d), or $3,000,000,

16 whichever is greater, shall be increased to that amount, the

17 total of the increases thereby required being derived by pro18 portionately reducing the allotment to each of the remain19 ing such States under this subsection, but with such adjust20 ments as may be necessary to prevent the sum of the allot21 ments made under this subsection to any such remaining

22 State from being thereby reduced to less than that amount.

23 ‘‘(4) For each fiscal year beginning on or after October

24 1, 1984, for which any amount is appropriated pursuant

25 to section 101(d), each State shall receive an allocation
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1 (from such appropriated amount) in addition to the allot2 ment to which such State is entitled under paragraphs (2)

3 and (3) of this subsection. Such additional allocation shall

4 be an amount which bears the same ratio to the amount

5 so appropriated as that State’s allotment under paragraphs

6 (2) and (3) of this subsection bears to the sum of such allot7 ments of all the States.

8 ‘‘(b)(1) If the payment to a State pursuant to this sec9 tion for a fiscal year is less than the total payments such

10 State received under section 2 of the Vocational Rehabilita11 tion Act for the fiscal year ending June 30, 1973, such State

12 shall be entitled to an additional payment (subject to the

13 same terms and conditions applicable to other payments

14 under this title) equal to the difference between the payment

15 under this section and the amount so received by it.

16 ‘‘(2) If a State receives as its Federal share pursuant

17 to this section for any fiscal year less than the applicable

18 Federal share of the expenditure of such State for fiscal year

19 1972 for vocational rehabilitation services under the plan

20 for such State approved under section 101 as in effect for

21 such year (including any amount expended by such State

22 for the administration of the State plan but excluding any

23 amount expended by such State from non-Federal sources

24 for construction under such plan), such State shall be enti25 tled to an additional payment for such fiscal year, subject
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1 to the same terms and conditions applicable to other pay2 ments under this title, equal to the difference between such

3 the payment pursuant to this section and an amount equal

4 to the applicable Federal share of such expenditure for voca5 tional rehabilitation services.

6 ‘‘(3) Any payment attributable to the additional pay7 ment to a State under this subsection shall be made only

8 from appropriations specifically made to carry out this sub9 section, and such additional appropriations are hereby au10 thorized.’’.

11 (b) CERTAIN FUNDING PROVISION.—Effective October

12 1, 1995, the Rehabilitation Act of 1973 (29 U.S.C. 701 et

13 seq.) is amended by inserting after section 3 the following

14 section:

15 ‘‘AVAILABILITY OF FUNDS

16 ‘‘SEC. 3A. Notwithstanding any other provision of law,

17 funding to carry out titles II through VII for any fiscal

18 year is available only to such extent as is provided, or in

19 such amounts as are provided, in appropriations Acts.’’.

20 (c) CONFORMING AMENDMENTS.—Effective October 1,

21 1995, the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)

22 is amended in the table of contents in the first section—

23 (1) by inserting after the item relating to section

24 3 the following item:

‘‘Sec. 3A. Availability of funds.’’;
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1 (2) by striking the items relating to sections 100

2 through 109, to sections 110 through 112, to sections

3 120 through 124, to section 130, and to sections 140

4 and 141;

5 (3) by striking the items relating to the title des6 ignation and heading for title I, and to the part des7 ignations and headings for parts A, B, C, D, and E

8 of title I;

9 (4) by inserting after the item relating to section

10 21 the following items:

‘‘TITLE I—VOCATIONAL REHABILITATION SERVICES

‘‘Sec. 100. Purpose.

‘‘Sec. 101. Formula Grants.

‘‘Sec. 102. Allocation Within State of Administrative Responsibilities.

‘‘Sec. 103. Responsibilities of State Administrative Agent.

‘‘Sec. 104. Responsibilities for Local Boards and Service Centers.

‘‘Sec. 105. Eligible Individual.

‘‘Sec. 106. State Rehabilitation Advisory Council.

‘‘Sec. 107. Amount of Allotment.’’; and

11 (5) by inserting after the item relating to section

12 509 the following item:

‘‘Sec. 510. Client assistance program.’’.

13 Subtitle B—Other Amendments to

14 Rehabilitation Act of 1973

15 SEC. 521. TRAINING AND DEMONSTRATION PROJECTS.

16 (a) IN GENERAL.—Effective October 1, 1995, the Reha17 bilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended—

18 (1) in title III—

19 (A) by striking section 303;
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1 (B) by striking section 304;

2 (C) in section 311, by striking subsection

3 (f);

4 (D) by striking section 312; and

5 (E) by striking section 316;

6 (2)(A) by transferring subsection (a) of section

7 802 from the current placement of the subsection;

8 (B) by redesignating such subsection as sub9 section (f); and

10 (C) by inserting such subsection at the end of

11 section 311 (as amended by paragraph (1)(C) of this

12 subsection);

13 (3)(A) by transferring subsection (g) of section

14 802 from the current placement of the subsection; and

15 (B) by inserting such subsection at the end of

16 section 311 (as amended by paragraph (2)(C) of this

17 subsection);

18 (4)(A) by transferring subsection (c) of section

19 803 from the current placement of the subsection;

20 (B) by redesignating such subsection as sub21 section (h); and

22 (C) by inserting such subsection at the end of

23 section 311 (as amended by paragraph (3)(B) of this

24 subsection);
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1 (5)(A) by transferring subsection (b) of section

2 803 from the current placement of the subsection;

3 (B) by redesignating such subsection as sub4 section (j); and

5 (C) by inserting such subsection at the end of

6 section 302; and

7 (6) by striking the remaining provisions of title

8 VIII.

9 (b) SECTION 311(c).—Effective October 1, 1998, sec10 tion 311 of the Rehabilitation Act of 1973 (29 U.S.C. 777a),

11 as amended by subsection (a) of this subsection, is amend12 ed—

13 (1) by striking subsection (c); and

14 (2) by redesignating subsections (d) through (h)

15 as subsections (c) through (g), respectively.

16 (c) CONFORMING AMENDMENTS.—Effective October 1,

17 1995, the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)

18 is amended in the table of contents in the first section—

19 (1) by striking the items relating to sections 303,

20 304, 312, and 316;

21 (2) by striking the items relating to sections 801

22 through 803 of title VIII; and

23 (3) by striking the item relating to the title des24 ignation and heading for title VIII.
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1 SEC. 522. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS

2 WITH DISABILITIES.

3 (a) IN GENERAL.—Effective October 1, 1995, title VI

4 of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.)

5 is amended—

6 (1) by striking part A;

7 (2) by striking part C;

8 (3) by striking part D; and

9 (4) in part B, by striking the part designation

10 and heading.

11 (b) PROJECTS WITH INDUSTRY.—Effective October 1,

12 1998, title VI of the Rehabilitation Act of 1973, as amended

13 by subsection (a) of this section, is repealed.

14 (c) CONFORMING AMENDMENTS.—Effective October 1,

15 1995, the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)

16 is amended in the table of contents in the first section by

17 striking the items relating to sections 611 through 617, to

18 sections 631 through 638, and to section 641; and by strik19 ing the items relating to the part designations and headings

20 for parts A, B, C, and D of title VI. Effective October 1,

21 1998, such table of contents is amended by striking the

22 items relating to sections 621 through 623; and by striking

23 the item relating to the title designation and heading for

24 title VI.
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1 TITLE VI—REPEALERS AND

2 OTHER AMENDMENTS

3 SEC. 601. 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. 602. 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. 603. 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 of

19 the CAREERS Act,’’;

20 (B) in section 1205(8)(B), by striking ‘‘the

21 Adult Education Act,’’ and inserting ‘‘title IV of

22 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 ‘‘section

2 312(2) of the Adult Education Act.’’ and insert3 ing ‘‘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 strik7 ing ‘‘section 312 of the Adult Education Act;’’ and in8 serting ‘‘section 5 of the CAREERS Act;’’;

9 SEC. 604. NATIONAL LITERACY ACT.

10 The National Literacy Act of 1991, except section 101

11 of such Act, is repealed.

12 SEC. 605. 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 amended

17 in section 3113(10) by striking ‘‘section 3 of the Library

18 Services and Construction Act;’’ and inserting ‘‘section 5

19 of the CAREERS Act;’’.

20 SEC. 606. TECHNOLOGY FOR EDUCATION ACT OF 1994.

21 Part F of the Technology for Education Act of 1994

22 (20 U.S.C. 7001 et seq.) (relating to the library media re23 sources program) is repealed.
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1 SEC. 607. JOB TRAINING PARTNERSHIP ACT.

2 (a) IN GENERAL.—The Job Training Partnership Act

3 (29 U.S.C. 1501 et seq.), except section 1, sections 421

4 through 439 (relating to the Job Corps), and section 441

5 of such Act (relating to veterans’ employment programs),

6 is hereby repealed.

7 (b) CONFORMING AMENDMENTS.—

8 (1) SHORT TITLE.—Section 1 of the Job Train9 ing Partnership Act (29 U.S.C. 1501, note) is amend10 ed—

11 (A) in the heading, by striking ‘‘; TABLE OF

12 CONTENTS’’; and

13 (B) by striking all that follows after ‘‘Job

14 Training Partnership Act’’.

15 (2) JOB CORPS.—Such Act (29 U.S.C. 1501 et

16 seq.), as amended by this section, is further amend17 ed—

18 (A) by redesignating sections 421 through

19 439 as sections 2 through 21, respectively;

20 (B) in section 2 (as redesignated), by strik21 ing ‘‘part’’ each place it appears and inserting

22 ‘‘Act’’;

23 (C) in section 4(4) (as redesignated), by

24 striking ‘‘sections 424 and 425’’ and inserting

25 ‘‘sections 5 and 6’’;

26 (D) in section 5 (as redesignated)—
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1 (i) in subsection (a), by striking ‘‘enti2 ties administering programs under title II

3 of this Act,’’; and

4 (ii) in subsection (b), by striking

5 ‘‘part’’ and inserting ‘‘Act’’;

6 (E) in section 7 (as redesignated)—

7 (i) in subsection (a), by striking ‘‘sec8 tion 428’’ and inserting ‘‘section 9’’; and

9 (ii) by striking subsection (d);

10 (F) in section 8 (as redesignated)—

11 (i) by striking subsection (b); and

12 (ii) by redesignating subsection (c) as

13 subsection (b);

14 (G) in section 14 (as redesignated)—

15 (i) in subsection (a)(4), by striking

16 ‘‘part’’ and inserting ‘‘Act’’;

17 (ii) in subsection (c)(1), by striking

18 ‘‘and activities authorized under sections

19 452 and 453’’; and

20 (iii) in subsection (e), by striking ‘‘sec21 tion 431’’ and inserting ‘‘section 12’’;

22 (H) in section 15 (as redesignated)—

23 (i) in subsection (a)—
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1 (I) in the matter preceding para2 graph (1), by striking ‘‘section 427’’

3 and inserting ‘‘section 8’’; and

4 (II) in paragraph (4)(A), by

5 striking ‘‘section 428’’ and inserting

6 ‘‘section 9’’;

7 (ii) in subsection (c)(3), by striking

8 ‘‘section 423’’ and inserting ‘‘section 4’’;

9 (iii) in subsection (d), by striking ‘‘sec10 tions 424 and 425’’ and inserting ‘‘sections

11 5 and 6’’; and

12 (iv) in subsection (e), by striking ‘‘,

13 pursuant to section 452(d),’’;

14 (I) in section 17 (as redesignated), by strik15 ing ‘‘purpose of this part’’ each place it appears

16 and inserting ‘‘purpose of this Act’’;

17 (J) in section 20 (as redesignated), by strik18 ing ‘‘part’’ each place it appears and inserting

19 ‘‘Act’’; and

20 (K) in section 21 (as redesignated), by

21 striking ‘‘part’’ and inserting ‘‘Act’’.

22 (3) VETERANS’ EMPLOYMENT PROGRAMS.—Such

23 Act (29 U.S.C. 1501 et seq.), as amended by this sec24 tion, is further amended—
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1 (A) by redesignating section 441 as section

2 22;

3 (B) by striking the heading of such section

4 22 (as redesignated), and inserting the following:

5 ‘‘VETERANS’ EMPLOYMENT PROGRAMS’’; and

6 (C) in such section 22, by striking ‘‘part’’

7 each place it appears and inserting ‘‘section’’.

8 (4) AUTHORIZATION OF APPROPRIATIONS.—Such

9 Act (29 U.S.C. 1501 et seq.), as amended by this sec10 tion, is further amended by adding at the end the fol11 lowing new section:

12 ‘‘AUTHORIZATION OF APPROPRIATIONS

13 ‘‘SEC. 23. There are authorized to be appropriated

14 such sums as are necessary to carry out this Act.’’.

15 SEC. 608. STEWART B. MCKINNEY HOMELESS ASSISTANCE

16 ACT.

17 (a) ADULT EDUCATION.—

18 (1) IN GENERAL.—Subtitle A of title VII of the

19 Stewart B. McKinney Homeless Assistance Act (42

20 U.S.C. 11421 et seq.) is repealed.

21 (2) TABLE OF CONTENTS.—The table of contents

22 of such Act is amended by striking the items relating

23 to subtitle A of title VII of such Act.

24 (b) SUBTITLE C.—

25 (1) IN GENERAL.—Subtitle C of title VII of the

26 Stewart B. McKinney Homeless Assistance Act (42
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1 U.S.C. 11441 et seq.), except section 738, is hereby re2 pealed.

3 (2) TABLE OF CONTENTS.—The table of contents

4 of such Act is amended—

5 (A) by striking the item relating to subtitle

6 C of title VII of such Act; and

7 (B) by striking the items relating to sections

8 731 through 737 and sections 739 through 741.

9 SEC. 609. EFFECTIVE DATE.

10 The repeals and amendments made by this title shall

11 take effect on October 1, 1996.

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