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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1617 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                        October 11 (legislative day, October 10), 1995.
      Resolved, That the bill from the House of Representatives (H.R. 
1617) entitled ``An Act to consolidate and reform workforce development 
and literacy programs, and for other purposes'', do pass with the 
following

                              AMENDMENTS:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Workforce 
Development Act of 1995''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

  TITLE I--WORKFORCE DEVELOPMENT AND WORKFORCE PREPARATION ACTIVITIES

          Subtitle A--Statewide Workforce Development Systems

          Chapter 1--Provisions for States and Other Entities

Sec. 101. Statewide workforce development systems established.
Sec. 102. State allotments.
Sec. 103. State apportionment by activity.
Sec. 104. State plans.
Sec. 105. State workforce development boards.
Sec. 106. Use of funds.
Sec. 107. Indian workforce development activities.
Sec. 108. Migrant or seasonal farmworker program.
Sec. 109. Grants to outlying areas.

                      Chapter 2--Local Provisions

Sec. 111. Local apportionment by activity.
Sec. 112. Distribution for secondary school vocational education.
Sec. 113. Distribution for postsecondary and adult vocational 
                            education.
Sec. 114. Distribution for adult education.
Sec. 115. Special rule for minimal allocation.
Sec. 116. Redistribution.
Sec. 117. Local application for workforce education activities.
Sec. 118. Local partnerships, agreements, and workforce development 
                            boards.
Sec. 119. Construction.

                       Chapter 3--Administration

Sec. 121. Accountability.
Sec. 122. Incentives and sanctions.
Sec. 123. Unemployment trust fund.
Sec. 124. Authorization of appropriations.
Sec. 125. Effective date.

 Subtitle B--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                     Chapter 1--General Provisions

Sec. 131. Definitions.

                          Chapter 2--Job Corps

Sec. 141. Purposes.
Sec. 142. Establishment.
Sec. 143. Individuals eligible for the Job Corps.
Sec. 144. Screening and selection of applicants.
Sec. 145. Enrollment and assignment.
Sec. 146. Job Corps Centers.
Sec. 147. Program activities.
Sec. 148. Support.
Sec. 149. Operating plan.
Sec. 150. Standards of conduct.
Sec. 151. Community participation.
Sec. 152. Counseling and placement.
Sec. 153. Advisory committees.
Sec. 154. Application of provisions of Federal law.
Sec. 155. Special provisions.
Sec. 156. Review of Job Corps centers.
Sec. 157. Administration.
Sec. 158. Effective date.

  Chapter 3--Other Workforce Preparation Activities for At-risk Youth

Sec. 161. Workforce preparation activities for at-risk youth.

                   Subtitle C--Transition Provisions

Sec. 171. Waivers.
Sec. 172. Flexibility demonstration program.
Sec. 173. Interim State plans.
Sec. 174. Applications and plans under covered Acts.
Sec. 175. Interim administration of school-to-work programs.
Sec. 176. Interim authorizations of appropriations.

                    Subtitle D--National Activities

Sec. 181. Federal Partnership.
Sec. 182. National Workforce Development Board and personnel.
Sec. 183. Labor market and occupational information.
Sec. 184. National discretionary grants.
Sec. 185. National Center for Research in Education and Workforce 
                            Development.
Sec. 186. National assessment of vocational education programs.
Sec. 187. Transfers to Federal Partnership.
Sec. 188. Transfers to other Federal agencies and offices.
Sec. 189. Elimination of certain offices.

Subtitle E--Repeals of Employment and Training and Vocational and Adult 
                           Education Programs

Sec. 191. Repeals.
Sec. 192. Conforming amendments.

           TITLE II--WORKFORCE DEVELOPMENT-RELATED ACTIVITIES

        Subtitle A--Amendments to the Rehabilitation Act of 1973

Sec. 201. References.
Sec. 202. Findings and purposes.
Sec. 203. Consolidated rehabilitation plan.
Sec. 204. Definitions.
Sec. 205. Administration.
Sec. 206. Reports.
Sec. 207. Evaluation.
Sec. 208. Declaration of policy.
Sec. 209. State plans.
Sec. 210. Individualized employment plans.
Sec. 211. Scope of vocational rehabilitation services.
Sec. 212. State Rehabilitation Advisory Council.
Sec. 213. Evaluation standards and performance indicators.
Sec. 214. Repeals.
Sec. 215. Effective date.

            Subtitle B--Amendments to the Wagner-Peyser Act

Sec. 221. General program requirements.
Sec. 222. Definitions.
Sec. 223. Functions.
Sec. 224. Designation of State agencies.
Sec. 225. Appropriations.
Sec. 226. Disposition of allotted funds.
Sec. 227. State plans.
Sec. 228. Federal Advisory Council.

     Subtitle C--Amendments to the Immigration and Nationality Act

Sec. 231. Prohibition on use of funds for certain employment 
                            activities.

      Subtitle D--Amendments to the National Literacy Act of 1991

Sec. 241. National Institute for Literacy.
Sec. 242. State literacy resource centers.
Sec. 243. National Workforce Literacy Assistance Collaborative.
Sec. 244. Family literacy public broadcasting program.
Sec. 245. Mandatory literacy program.

                    TITLE III--MUSEUMS AND LIBRARIES

Sec. 301. Museum and library services.
Sec. 302. National Commission on Libraries and Information Science.
Sec. 303. Transfer of functions from Institute of Museum Services.
Sec. 304. Service of individuals serving on date of enactment.
Sec. 305. Consideration.
Sec. 306. Repeals and technical and conforming amendments.
Sec. 307. Arts and artifacts.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) increasing international competition, technological 
        advances, and structural changes in the United States economy 
        present new challenges to private businesses and public 
        policymakers in creating a skilled workforce with the ability 
        to adapt to change and technological progress;
            (2) despite more than 60 years of federally funded 
        employment training programs, the Federal Government has no 
        single, coherent policy guiding employment training efforts;
            (3) according to the General Accounting Office, there are 
        over 100 federally funded employment training programs, which 
        are administered by 15 different Federal agencies and cost more 
        than $20,000,000,000 annually;
            (4) many of the programs fail to collect enough performance 
        data to determine the relative effectiveness of each of the 
        programs or the effectiveness of the programs as a whole;
            (5) because of the fragmentation, duplication, and lack of 
        accountability that currently exist within and among Federal 
        employment training programs it is often difficult for workers, 
        jobseekers, and businesses to easily access the services they 
        need;
            (6) high quality, innovative vocational education programs 
        provide youth with skills and knowledge on which to build 
        successful careers and, in providing the skills and knowledge, 
        vocational education serves as the foundation of a successful 
        workforce development system;
            (7) in recent years, several States and communities have 
        begun to develop promising new initiatives such as--
                    (A) school-to-work programs to better integrate 
                youth employment and education programs; and
                    (B) one-stop systems to make workforce development 
                activities more accessible to workers, jobseekers, and 
                businesses; and
            (8) Federal, State, and local governments have failed to 
        adequately allow for private sector leadership in designing 
        workforce development activities that are responsive to local 
        labor market needs.
    (b) Purposes.--The purposes of this Act are--
            (1) to make the United States more competitive in the world 
        economy by eliminating the fragmentation in Federal employment 
        training efforts and creating coherent, integrated statewide 
        workforce development systems designed to develop more fully 
        the academic, occupational, and literacy skills of all segments 
        of the workforce;
            (2) to ensure that all segments of the workforce will 
        obtain the skills necessary to earn wages sufficient to 
        maintain the highest quality of living in the world; and
            (3) to promote the economic development of each State by 
        developing a skilled workforce that is responsive to the labor 
        market needs of the businesses of each State.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Adult education.--
                    (A) In general.--The term ``adult education'' means 
                services or instruction below the college level for 
                adults who--
                            (i) lack sufficient education or literacy 
                        skills to enable the adults to function 
                        effectively in society; or
                            (ii) do not have a certificate of 
                        graduation from a school providing secondary 
                        education (as determined under State law) and 
                        who have not achieved an equivalent level of 
                        education.
                    (B) Adult.--As used in subparagraph (A), the term 
                ``adult'' means an individual who is age 16 or older, 
                or beyond the age of compulsory school attendance under 
                State law, and who is not enrolled in secondary school.
            (2) Appropriate secretary.--The term ``appropriate 
        Secretary'' means, as determined under section 187(c)--
                    (A) the Secretary of Labor;
                    (B) the Secretary of Education; or
                    (C) the Secretary of Labor and the Secretary of 
                Education, acting jointly.
            (3) Area vocational education school.--The term ``area 
        vocational education school'' means--
                    (A) a specialized secondary school used exclusively 
                or principally for the provision of vocational 
                education to individuals who are available for study in 
                preparation for entering the labor market;
                    (B) the department of a secondary school 
                exclusively or principally used for providing 
                vocational education in not fewer than 5 different 
                occupational fields to individuals who are available 
                for study in preparation for entering the labor market;
                    (C) a technical institute or vocational school used 
                exclusively or principally for the provision of 
                vocational education to individuals who have completed 
                or left secondary school and who are available for 
                study in preparation for entering the labor market, if 
                the institute or school admits as regular students both 
                individuals who have completed secondary school and 
                individuals who have left secondary school; or
                    (D) the department or division of a junior college, 
                community college, or university that provides 
                vocational education in not fewer than 5 different 
                occupational fields leading to immediate employment but 
                not necessarily leading to a baccalaureate degree, if 
                the department or division admits as regular students 
                both individuals who have completed secondary school 
                and individuals who have left secondary school.
            (4) At-risk youth.--The term ``at-risk youth'' means an 
        individual who--
                    (A) is not less than age 15 and not more than age 
                24; and
                    (B)(i) is determined under guidelines developed by 
                the Federal Partnership to be low-income, using the 
                most recent available data provided by the Bureau of 
                the Census, prior to the determination; or
                    (ii) is a dependent of a family that is determined 
                under guidelines developed by the Federal Partnership 
                to be low-income, using such data.
            (5) Chief elected official.--The term ``chief elected 
        official'' means the chief elected officer of a unit of general 
        local government in a substate area.
            (6) Community-based organization.--The term ``community-
        based organization'' means a private nonprofit organization of 
        demonstrated effectiveness that is representative of a 
        community or a significant segment of a community and that 
        provides workforce development activities.
            (7) Covered activity.--The term ``covered activity'' means 
        an activity authorized to be carried out under a provision 
        described in section 191(b) (as such provision was in effect on 
        the day before the date of enactment of this Act).
            (8) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A) has been terminated from employment and is 
                eligible for unemployment compensation;
                    (B) has received a notice of termination of 
                employment as a result of any permanent closure, or any 
                layoff of 50 or more people, at a plant, facility, or 
                enterprise, or as a result of a closure or realignment 
                of a military installation;
                    (C) is long-term unemployed;
                    (D) was self-employed (including a farmer and a 
                rancher) but is unemployed due to local economic 
                conditions;
                    (E) is a displaced homemaker; or
                    (F) has become unemployed as a result of a Federal 
                action that limits the use of, or restricts access to, 
                a marine natural resource.
            (9) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who was a full-time homemaker for a 
        substantial number of years, as determined under guidelines 
        developed by the Federal Partnership, and who no longer 
        receives financial support previously provided by a spouse or 
        by public assistance.
            (10) Economic development activities.--The term ``economic 
        development activities'' means the activities described in 
        section 106(e).
            (11) Educational service agency.--The term ``educational 
        service agency'' means a regional public multiservice agency 
        authorized by State statute to develop and manage a service or 
        program, and provide the service or program to a local 
        educational agency.
            (12) Elementary school; local educational agency; secondary 
        school.--The terms ``elementary school'', ``local educational 
        agency'' and ``secondary school'' have the meanings given the 
        terms in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).
            (13) Federal partnership.--The term ``Federal Partnership'' 
        means the Workforce Development Partnership established in 
        section 181, acting under the direction of the National Board.
            (14) Flexible workforce activities.--The term ``flexible 
        workforce activities'' means the activities described in 
        section 106(d).
            (15) Individual with a disability.--
                    (A) In general.--The term ``individual with a 
                disability'' means an individual with any disability 
                (as defined in section 3 of the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12102)).
                    (B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more than 1 
                individual with a disability.
            (16) Local entity.--The term ``local entity'' means a 
        public or private entity responsible for local workforce 
        development activities or workforce preparation activities for 
        at-risk youth.
            (17) Local partnership.--The term ``local partnership'' 
        means a partnership referred to in section 118(a).
            (18) National board.--The term ``National Board'' means the 
        National Board of the Federal Partnership.
            (19) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
            (20) Participant.--The term ``participant'' means an 
        individual participating in workforce development activities or 
        workforce preparation activities for at-risk youth, provided 
        through a statewide system.
            (21) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means an institution 
        of higher education, as defined in section 481(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1088(a)), that offers--
                    (A) a 2-year program of instruction leading to an 
                associate's degree or a certificate of mastery; or
                    (B) a 4-year program of instruction leading to a 
                bachelor's degree.
            (22) Rapid response assistance.--The term ``rapid response 
        assistance'' means workforce employment assistance provided in 
        the case of a permanent closure, or layoff of 50 or more 
        people, at a plant, facility, or enterprise, including the 
        establishment of on-site contact with employers and employee 
        representatives immediately after the State is notified of a 
        current or projected permanent closure, or layoff of 50 or more 
        people.
            (23) School-to-work activities.--The term ``school-to-work 
        activities'' means activities for youth that--
                    (A) integrate school-based learning and work-based 
                learning;
                    (B) integrate academic and occupational learning;
                    (C) establish effective linkages between secondary 
                education and postsecondary education;
                    (D) provide each youth participant with the 
                opportunity to complete a career major;
                    (E) provide assistance in the form of connecting 
                activities that link each youth participant with an 
                employer in an industry or occupation relating to the 
                career major of the youth participant; and
                    (F) are designed and carried out by local 
                partnerships that include representatives of business 
                and industry, education providers, and the community in 
                which the activities are carried out.
            (24) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (25) State benchmarks.--The term ``State benchmarks'', used 
        with respect to a State, means--
                    (A) the quantifiable indicators established under 
                section 121(c) and identified in the report submitted 
                under section 121(a); and
                    (B) such other quantifiable indicators of the 
                statewide progress of the State toward meeting the 
                State goals as the State may identify in the report 
                submitted under section 121(a).
            (26) State educational agency.--The term ``State 
        educational agency'' means the State board of education or 
        other agency or officer primarily responsible for the State 
        supervision of public elementary or secondary schools, or, if 
        there is no such officer or agency, an officer or agency 
        designated by the Governor or by State law.
            (27) State goals.--The term ``State goals'', used with 
        respect to a State, means--
                    (A) the goals specified in section 121(b); and
                    (B) such other major goals of the statewide system 
                of the State as the State may identify in the report 
                submitted under section 121(a).
            (28) Statewide system.--The term ``statewide system'' means 
        a statewide workforce development system, referred to in 
        section 101, that is designed to integrate workforce employment 
        activities, workforce education activities, flexible workforce 
        activities, economic development activities (in a State that is 
        eligible to carry out such activities), vocational 
        rehabilitation program activities, and workforce preparation 
        activities for at-risk youth in the State in order to enhance 
        and develop more fully the academic, occupational, and literacy 
        skills of all segments of the population of the State and 
        assist participants in obtaining meaningful unsubsidized 
        employment.
            (29) Substate area.--The term ``substate area'' means a 
        geographic area designated by a Governor that reflects, to the 
        extent feasible, a local labor market in a State.
            (30) Tech-prep program.--The term ``tech-prep program'' 
        means a program of study that--
                    (A) combines at least 2 years of secondary 
                education (as determined under State law) and 2 years 
                of postsecondary education in a nonduplicative 
                sequence;
                    (B) integrates academic and vocational instruction 
                and utilizes worksite learning where appropriate;
                    (C) provides technical preparation in an area such 
                as engineering technology, applied science, a 
                mechanical, industrial, or practical art or trade, 
                agriculture, a health occupation, business, or applied 
                economics;
                    (D) builds student competence in mathematics, 
                science, communications, economics, and workplace 
                skills, through applied academics and integrated 
                instruction in a coherent sequence of courses;
                    (E) leads to an associate degree or a certificate 
                in a specific career field; and
                    (F) leads to placement in appropriate employment or 
                further education.
            (31) Veteran.--The term ``veteran'' has the meaning given 
        the term in section 101(2) of title 38, United States Code.
            (32) Vocational education.--The term ``vocational 
        education'' means organized educational programs that--
                    (A) offer a sequence of courses that provide 
                individuals with the academic knowledge and skills the 
                individuals need to prepare for further education and 
                careers in current or emerging employment sectors; and
                    (B) include competency-based applied learning that 
                contributes to the academic knowledge, higher-order 
                reasoning and problem-solving skills, work attitudes, 
                general employability skills, and occupation-specific 
                skills, of an individual.
            (33) Vocational rehabilitation program.--The term 
        ``vocational rehabilitation program'' means a program assisted 
        under title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 
        et seq.).
            (34) Welfare assistance.--The term ``welfare assistance'' 
        means--
                    (A) assistance provided under part A of title IV of 
                the Social Security Act; and
                    (B) assistance provided under the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.).
            (35) Welfare recipient.--The term ``welfare recipient'' 
        means an individual who receives welfare assistance.
            (36) Workforce development activities.--The term 
        ``workforce development activities'' means workforce education 
        activities, workforce employment activities, school-to-work 
        activities, and economic development activities (within a State 
        that is eligible to carry out such activities).
            (37) Workforce education activities.--The term ``workforce 
        education activities'' means the activities described in 
        section 106(b).
            (38) Workforce employment activities.--The term ``workforce 
        employment activities'' means the activities described in 
        paragraphs (2) through (8) of section 106(a), including 
        activities described in section 106(a)(6) provided through a 
        voucher described in section 106(a)(9).
            (39) Workforce preparation activities for at-risk youth.--
        The term ``workforce preparation activities for at-risk youth'' 
        means the activities described in section 161(b), carried out 
        for at-risk youth.

  TITLE I--WORKFORCE DEVELOPMENT AND WORKFORCE PREPARATION ACTIVITIES

          Subtitle A--Statewide Workforce Development Systems

          CHAPTER 1--PROVISIONS FOR STATES AND OTHER ENTITIES

SEC. 101. STATEWIDE WORKFORCE DEVELOPMENT SYSTEMS ESTABLISHED.

    For program year 1998 and each subsequent program year, the 
Secretary of Labor and the Secretary of Education, acting jointly on 
the advice of the Federal Partnership, shall make allotments under 
section 102 to States to assist the States in paying for the cost of 
establishing and carrying out activities through statewide workforce 
development systems, in accordance with this subtitle.

SEC. 102. STATE ALLOTMENTS.

    (a) In General.--The Secretary of Labor and the Secretary of 
Education, acting jointly on the advice of the Federal Partnership, 
shall allot to each State with a State plan approved under section 104 
an amount equal to the total of the amounts made available under 
subparagraphs (A), (B), (C), and (D) of subsection (b)(2), adjusted in 
accordance with subsections (c) and (d).
    (b) Allotments Based on Populations.--
            (1) Definitions.--As used in this subsection:
                    (A) Adult recipient of assistance.--The term 
                ``adult recipient of assistance'' means a recipient of 
                assistance under a State program funded under part A of 
                title IV of the Social Security Act who is not a minor 
                child (as defined in section 402(c)(1) of such Act).
                    (B) Individual in poverty.--The term ``individual 
                in poverty'' means an individual who--
                            (i) is not less than age 18;
                            (ii) is not more than age 64; and
                            (iii) is a member of a family (of 1 or more 
                        members) with an income at or below the poverty 
                        line.
                    (C) Poverty line.--The term ``poverty line'' means 
                the poverty line (as defined by the Office of 
                Management and Budget, and revised annually in 
                accordance with section 673(2) of the Community 
                Services Block Grant Act (42 U.S.C. 9902(2)) applicable 
                to a family of the size involved, using the most recent 
                available data provided by the Bureau of the Census, 
                prior to the program year for which the allotment is 
                made, and applying the definition of poverty used by 
                the Bureau of the Census in compiling the 1990 
                decennial census.
            (2) Calculation.--Except as provided in subsections (c) and 
        (d), from the amount reserved under section 124(b)(1), the 
        Secretary of Labor and the Secretary of Education, acting 
        jointly on the advice of the Federal Partnership--
                    (A) using funds equal to 60 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the total number of individuals who are not less 
                than age 15 and not more than age 65 (as determined by 
                the Federal Partnership using the most recent available 
                data provided by the Bureau of the Census, prior to the 
                program year for which the allotment is made) in the 
                State bears to the total number of such individuals in 
                all States;
                    (B) using funds equal to 20 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the total number of individuals in poverty in the 
                State bears to the total number of individuals in 
                poverty in all States;
                    (C) using funds equal to 10 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the average number of unemployed individuals (as 
                determined by the Secretary of Labor for the most 
                recent 24-month period for which data are available, 
                prior to the program year for which the allotment is 
                made) in the State bears to the average number of 
                unemployed individuals (as so determined) in all 
                States; and
                    (D) using funds equal to 10 percent of such 
                reserved amount, shall make available to each State an 
                amount that bears the same relationship to such funds 
                as the average monthly number of adult recipients of 
                assistance (as determined by the Secretary of Health 
                and Human Services for the most recent 12-month period 
                for which data are available, prior to the program year 
                for which the allotment is made) in the State bears to 
                the average monthly number of adult recipients of 
                assistance (as so determined) in all States.
    (c) Minimum State Allotment.--
            (1) Definition.--As used in this subsection, the term 
        ``national average per capita payment'', used with respect to a 
        program year, means the amount obtained by dividing--
                    (A) the amount reserved under section 124(b)(1) for 
                the program year; by
                    (B) the total number of individuals who are not 
                less than age 15 and not more than age 65 (as 
                determined by the Federal Partnership using the most 
                recent available data provided by the Bureau of the 
                Census, prior to the program year for which the 
                allotment is made) in all States.
            (2) Minimum allotment.--Except as provided in paragraph (3) 
        and subsection (d), no State shall receive an allotment under 
        this section for a program year in an amount that is less than 
        0.5 percent of the amount reserved under section 124(b)(1) for 
        the program year.
            (3) Limitation.--No State that receives an increase in an 
        allotment under this section for a program year as a result of 
        the application of paragraph (2) shall receive an allotment 
        under this section for the program year in an amount that is 
        more than the product obtained by multiplying--
                    (A) the total number of individuals who are not 
                less than age 15 and not more than age 65 (as 
                determined by the Federal Partnership using the most 
                recent available data provided by the Bureau of the 
                Census, prior to the program year for which the 
                allotment is made) in the State; and
                    (B) the product obtained by multiplying--
                            (i) 1.5; and
                            (ii) the national average per capita 
                        payment for the program year.
            (4) Adjustments.--In order to increase the allotments of 
        States as a result of the application of paragraph (2), the 
        Secretary of Labor and the Secretary of Education, acting 
        jointly, shall reduce, on a pro rata basis, the allotments of 
        the other States (except as provided in subsection (d)).
    (d) Overall Limitations.--
            (1) Definition.--As used in this subsection, the term 
        ``State percentage'' means--
                    (A) with respect to the program year preceding 
                program year 1998, the percentage that a State receives 
                of the financial assistance made available to States to 
                carry out covered activities for the year ending on 
                June 30, 1998; and
                    (B) with respect to program year 1998 and each 
                subsequent program year, the percentage that a State 
                receives of the amount reserved under section 124(b)(1) 
                for the program year.
            (2) Limitations.--No State shall receive an allotment under 
        this section for a program year in an amount that would make 
        the State percentage for the program year--
                    (A) less than the product obtained by multiplying--
                            (i) 0.95; and
                            (ii) the State percentage of the State for 
                        the preceding program year; or
                    (B) greater than the product obtained by 
                multiplying--
                            (i) 1.05; and
                            (ii) the State percentage of the State for 
                        the preceding program year.

SEC. 103. STATE APPORTIONMENT BY ACTIVITY.

    (a) Activities.--From the sum of the funds made available to a 
State through an allotment received under section 102 and through funds 
received under section 6 of the Wagner-Peyser Act (29 U.S.C. 49e) to 
carry out this subtitle for a program year--
            (1) a portion equal to 25 percent of such sum (which 
        portion shall include the funds received by the State under 
        section 6 of the Wagner-Peyser Act) shall be made available for 
        workforce employment activities or activities carried out under 
        the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
            (2) a portion equal to 25 percent of such sum shall be made 
        available for workforce education activities; and
            (3) a portion (referred to in this title as the ``flex 
        account'') equal to 50 percent of such sum shall be made 
        available for flexible workforce activities.
    (b) Recipients.--In making an allotment under section 102 to a 
State, the Secretary of Labor and the Secretary of Education, acting 
jointly, shall make a payment--
            (1) to the Governor of the State for the portion described 
        in subsection (a)(1), and such part of the flex account as the 
        Governor may be eligible to receive, as determined under the 
        State plan of the State submitted under section 104; and
            (2) to the State educational agency of the State for the 
        portion described in subsection (a)(2), and such part of the 
        flex account as the State educational agency may be eligible to 
        receive, as determined under the State plan of the State 
        submitted under section 104.

SEC. 104. STATE PLANS.

    (a) In General.--For a State to be eligible to receive an allotment 
under section 102, the Governor of the State shall submit to the 
Federal Partnership, and obtain approval of, a single comprehensive 
State workforce development plan (referred to in this section as a 
``State plan''), outlining a 3-year strategy for the statewide system 
of the State.
    (b) Parts.--
            (1) In general.--The State plan shall contain 3 parts.
            (2) Strategic plan and flexible workforce activities.--The 
        first part of the State plan shall describe a strategic plan 
        for the statewide system, including the flexible workforce 
        activities, and, if appropriate, economic development 
        activities, that are designed to meet the State goals and reach 
        the State benchmarks and are to be carried out with the 
        allotment. The Governor shall develop the first part of the 
        State plan, using procedures that are consistent with the 
        procedures described in subsection (d).
            (3) Workforce employment activities.--The second part of 
        the State plan shall describe the workforce employment 
        activities that are designed to meet the State goals and reach 
        the State benchmarks and are to be carried out with the 
        allotment. The Governor shall develop the second part of the 
        State plan.
            (4) Workforce education activities.--The third part of the 
        State plan shall describe the workforce education activities 
        that are designed to meet the State goals and reach the State 
        benchmarks and are to be carried out with the allotment. The 
        State educational agency of the State shall develop the third 
        part of the State plan in collaboration with the State 
        postsecondary education agency and with representatives of 
        vocational education and community colleges.
            (5) State option for integrated plan.--Notwithstanding any 
        other provision of this subsection, with the express written 
        agreement of the Governor, the State educational agency, the 
        State postsecondary education agency, and representatives of 
        vocational education and community colleges, of a State, the 
        Governor may develop all parts of the State plan, using 
        procedures that are consistent with the procedures described in 
        subsection (d). Nothing in this section shall be construed to 
        require a Governor who develops an integrated State plan under 
        this paragraph to duplicate any information contained in 1 part 
        of the plan in another part of the plan.
    (c) Contents of the Plan.--The State plan shall include--
            (1) with respect to the strategic plan for the statewide 
        system--
                    (A) information describing how the State will 
                identify the current and future workforce development 
                needs of the industry sectors most important to the 
                economic competitiveness of the State;
                    (B) information describing how the State will 
                identify the current and future workforce development 
                needs of all segments of the population of the State;
                    (C) information identifying the State goals and 
                State benchmarks and how the goals and benchmarks will 
                make the statewide system relevant and responsive to 
                labor market and education needs at the local level;
                    (D) information describing how the State will 
                coordinate workforce development activities to meet the 
                State goals and reach the State benchmarks;
                    (E) information describing the allocation within 
                the State of the funds made available through the flex 
                account for the State, and how the flexible workforce 
                activities, including school-to-work activities, to be 
                carried out with such funds will be carried out to meet 
                the State goals and reach the State benchmarks;
                    (F) information identifying how the State will 
                obtain the active and continuous participation of 
                business, industry, and labor in the development and 
                continuous improvement of the statewide system;
                    (G) information identifying how the State will 
                obtain the active and continuous participation of local 
                partnerships (or, where established, local workforce 
                development boards described in section 118(b)) in the 
                development and continuous improvement of the statewide 
                system;
                    (H) information identifying how any funds that a 
                State receives under this subtitle will be leveraged 
                with other public and private resources to maximize the 
                effectiveness of such resources for all workforce 
                development activities, and expand the participation of 
                business, industry, labor, and individuals in the 
                statewide system;
                    (I) information identifying how the workforce 
                development activities to be carried out with funds 
                received through the allotment will be coordinated with 
                programs carried out by the Veterans' Employment and 
                Training Service with funds received under title 38, 
                United States Code, in order to meet the State goals 
                and reach the State benchmarks related to veterans;
                    (J) information describing how the State will 
                eliminate duplication in the administration and 
                delivery of services under this subtitle;
                    (K) information describing the process the State 
                will use to independently evaluate and continuously 
                improve the performance of the statewide system, on a 
                yearly basis, including the development of specific 
                performance indicators to measure progress toward 
                meeting the State goals;
                    (L) an assurance that the funds made available 
                under this subtitle will supplement and not supplant 
                other public funds expended to provide workforce 
                development activities;
                    (M) information identifying the steps that the 
                State will take over the 3 years covered by the plan to 
                establish common data collection and reporting 
                requirements for workforce development activities and 
                vocational rehabilitation program activities;
                    (N) with respect to economic development 
                activities, information--
                            (i) describing the activities to be carried 
                        out with the funds made available under this 
                        subtitle;
                            (ii) describing how the activities will 
                        lead directly to increased earnings of 
                        nonmanagerial employees in the State; and
                            (iii) describing whether the labor 
                        organization, if any, representing the 
                        nonmanagerial employees supports the 
                        activities;
                    (O) the description referred to in subsection 
                (d)(1); and
                    (P)(i) information demonstrating the support of 
                individuals and entities described in subsection (d)(1) 
                for the plan; or
                    (ii) in a case in which the Governor is unable to 
                obtain the support of such individuals and entities as 
                provided in subsection (d)(2), the comments referred to 
                in subsection (d)(2)(B);
            (2) with respect to workforce employment activities, 
        information--
                    (A)(i) identifying and designating substate areas, 
                including urban and rural areas, to which funds 
                received through the allotment will be distributed, 
                which areas shall, to the extent feasible, reflect 
                local labor market areas; or
                    (ii) stating that the State will be treated as a 
                substate area for purposes of the application of this 
                subtitle, if the State receives an increase in an 
                allotment under section 102 for a program year as a 
                result of the application of section 102(c)(2);
                    (B) describing the basic features of one-stop 
                delivery of core services described in section 
                106(a)(2) in the State, including information 
                regarding--
                            (i) the strategy of the State for 
                        developing fully operational one-stop delivery 
                        of core services described in section 
                        106(a)(2);
                            (ii) the time frame for achieving the 
                        strategy;
                            (iii) the estimated cost of achieving the 
                        strategy;
                            (iv) the steps that the State will take 
                        over the 3 years covered by the plan to provide 
                        individuals with access to one-stop delivery of 
                        core services described in section 106(a)(2);
                            (v) the steps that the State will take over 
                        the 3 years covered by the plan to ensure that 
                        all publicly funded labor exchange services 
                        described in section 106(a)(2)(B), and all such 
                        services described in the Wagner-Peyser Act (29 
                        U.S.C. 49 et seq.), are provided through the 
                        one-stop career center system of the State;
                            (vi) the steps that the State will take 
                        over the 3 years covered by the plan to provide 
                        information through the one-stop delivery to 
                        individuals on the quality of workforce 
                        employment activities, workforce education 
                        activities, and vocational rehabilitation 
                        program activities, provided through the 
                        statewide system;
                            (vii) the steps that the State will take 
                        over the 3 years covered by the plan to link 
                        services provided through the one-stop delivery 
                        with services provided through State welfare 
                        agencies; and
                            (viii) in a case in which the State chooses 
                        to use vouchers to deliver workforce employment 
                        activities, the steps that the State will take 
                        over the 3 years covered by the plan to comply 
                        with the requirements in section 106(a)(9) and 
                        the information required in such section;
                    (C) identifying performance indicators that relate 
                to the State goals, and to the State benchmarks, 
                concerning workforce employment activities;
                    (D) describing the workforce employment activities 
                to be carried out with funds received through the 
                allotment;
                    (E) describing the steps that the State will take 
                over the 3 years covered by the plan to establish a 
                statewide comprehensive labor market and occupational 
                information system described in section 183(c) that 
                will be utilized by all the providers of one-stop 
                delivery of core services described in section 
                106(a)(2), providers of other workforce employment 
                activities, and providers of workforce education 
                activities, in the State;
                    (F) describing the steps that the State will take 
                over the 3 years covered by the plan to establish a job 
                placement accountability system described in section 
                121(d); and
                    (G) describing the process the State will use to 
                approve all providers of workforce employment 
                activities through the statewide system; and
            (3) with respect to workforce education activities, 
        information--
                    (A) describing how funds received through the 
                allotment will be allocated among--
                            (i) secondary school vocational education, 
                        or postsecondary and adult vocational 
                        education, or both; and
                            (ii) adult education;
                    (B) identifying performance indicators that relate 
                to the State goals, and to the State benchmarks, 
                concerning workforce education activities;
                    (C) describing the workforce education activities 
                that will be carried out with funds received through 
                the allotment;
                    (D) describing how the State will address the adult 
                education needs of the State;
                    (E) describing how the State will disaggregate data 
                relating to at-risk youth in order to adequately 
                measure the progress of at-risk youth toward 
                accomplishing the results measured by the State goals 
                and the State benchmarks;
                    (F) describing how the State will adequately 
                address the needs of both at-risk youth who are in 
                school, and out-of-school youth, in alternative 
                education programs that teach to the same challenging 
                academic, occupational, and skill proficiencies as are 
                provided for in-school youth;
                    (G) describing how the workforce education 
                activities described in the State plan and the State 
                allocation of funds received through the allotment for 
                such activities are an integral part of comprehensive 
                efforts of the State to improve education for all 
                students and adults;
                    (H) describing how the State will annually evaluate 
                the effectiveness of the State plan with respect to 
                workforce education activities;
                    (I) describing how the State will address the 
                professional development needs of the State with 
                respect to workforce education activities;
                    (J) describing how the State will provide local 
                educational agencies in the State with technical 
                assistance;
                    (K) describing how the State will assess the 
                progress of the State in implementing student 
                performance measures; and
                    (L) describing how the State will encourage the 
                participation of parents of secondary school students 
                involved in workforce education activities carried out 
                under this subtitle in State and local decisions 
                regarding workforce education activities carried out 
                under this subtitle.
    (d) Procedure for Development of Part of Plan Relating to Strategic 
Plan.--
            (1) Description of development.--The part of the State plan 
        relating to the strategic plan shall include a description of 
        the manner in which--
                    (A) the Governor;
                    (B) the State educational agency;
                    (C) representatives of business and industry, 
                including representatives of key industry sectors, and 
                of small, medium-size, and large employers, in the 
                State;
                    (D) representatives of labor and workers;
                    (E) local elected officials from throughout the 
                State;
                    (F) the State agency officials responsible for 
                vocational education;
                    (G) the State agency officials responsible for 
                postsecondary education and community colleges;
                    (H) the State agency officials responsible for 
                adult education;
                    (I) the State agency officials responsible for 
                vocational rehabilitation;
                    (J) such other State agency officials, including 
                officials responsible for economic development and 
                employment, as the Governor may designate;
                    (K) the representative of the Veterans' Employment 
                and Training Service assigned to the State under 
                section 4103 of title 38, United States Code; and
                    (L) other appropriate officials, including members 
                of the State workforce development board described in 
                section 105, if the State has established such a board;
        collaborated in the development of such part of the plan.
            (2) Failure to obtain support.--If, after a reasonable 
        effort, the Governor is unable to obtain the support of the 
        individuals and entities described in paragraph (1) for the 
        strategic plan the Governor shall--
                    (A) provide such individuals and entities with 
                copies of the strategic plan;
                    (B) allow such individuals and entities to submit 
                to the Governor, not later than the end of the 30-day 
                period beginning on the date on which the Governor 
                provides such individuals and entities with copies of 
                such plan under subparagraph (A), comments on such 
                plan; and
                    (C) include any such comments in such plan.
    (e) Approval.--The Secretary of Labor and the Secretary of 
Education, acting jointly on the advice of the Federal Partnership, 
shall approve a State plan if--
            (1) the Federal Partnership determines that the plan 
        contains the information described in subsection (c);
            (2) the Federal Partnership determines that the State has 
        prepared the plan in accordance with the requirements of this 
        section, including the requirements relating to development of 
        any part of the plan; and
            (3) the State benchmarks for the State have been negotiated 
        and approved in accordance with section 121(c).
    (f) No Entitlement to a Service.--Nothing in this Act shall be 
construed to provide any individual with an entitlement to a service 
provided under this Act.

SEC. 105. STATE WORKFORCE DEVELOPMENT BOARDS.

    (a) Establishment.--A Governor of a State that receives an 
allotment under section 102 may establish a State workforce development 
board--
            (1) on which a majority of the members are representatives 
        of business and industry;
            (2) on which not less than 25 percent of the members shall 
        be representatives of labor, workers, and community-based 
        organizations;
            (3) that shall include representatives of veterans;
            (4) that shall include a representative of the State 
        educational agency and a representative from the State agency 
        responsible for vocational rehabilitation;
            (5) that may include any other individual or entity that 
        participates in the collaboration described in section 
        104(d)(1); and
            (6) that may include any other individual or entity the 
        Governor may designate.
    (b) Chairperson.--The State workforce development board shall 
select a chairperson from among the members of the board who are 
representatives of business and industry.
    (c) Functions.--The functions of the State workforce development 
board shall include--
            (1) advising the Governor on the development of the 
        statewide system, the State plan described in section 104, and 
        the State goals and State benchmarks;
            (2) assisting in the development of specific performance 
        indicators to measure progress toward meeting the State goals 
        and reaching the State benchmarks and providing guidance on how 
        such progress may be improved;
            (3) serving as a link between business, industry, labor, 
        and the statewide system;
            (4) assisting the Governor in preparing the annual report 
        to the Federal Partnership regarding progress in reaching the 
        State benchmarks, as described in section 121(a);
            (5) receiving and commenting on the State plan developed 
        under section 101 of the Rehabilitation Act of 1973 (29 U.S.C. 
        721);
            (6) assisting the Governor in developing the statewide 
        comprehensive labor market and occupational information system 
        described in section 183(c) to provide information that will be 
        utilized by jobseekers, employers, providers of one-stop 
        delivery of core services described in section 106(a)(2), 
        providers of other workforce employment activities, and 
        providers of workforce education activities, in the State; and
            (7) assisting in the monitoring and continuous improvement 
        of the performance of the statewide system, including 
        evaluation of the effectiveness of workforce development 
        activities funded under this subtitle.

SEC. 106. USE OF FUNDS.

    (a) Workforce Employment Activities.--
            (1) In general.--Funds made available to a State under this 
        subtitle to carry out workforce employment activities through a 
        statewide system--
                    (A) shall be used to carry out the activities 
                described in paragraphs (2), (3), and (4); and
                    (B) may be used to carry out the activities 
                described in paragraphs (5), (6), (7), and (8), 
                including providing activities described in paragraph 
                (6) through vouchers described in paragraph (9).
            (2) One-stop delivery of core services.--
                    (A) Access.--The State shall use a portion of the 
                funds described in paragraph (1) to establish a means 
                of providing access to the statewide system through 
                core services described in subparagraph (B) available--
                            (i) through multiple, connected access 
                        points, linked electronically or otherwise;
                            (ii) through a network that assures 
                        participants that such core services will be 
                        available regardless of where the participants 
                        initially enter the statewide system;
                            (iii) at not less than 1 physical location 
                        in each substate area of the State; or
                            (iv) through some combination of the 
                        options described in clauses (i), (ii), and 
                        (iii).
                    (B) Core services.--The core services referred to 
                in subparagraph (A) shall, at a minimum, include--
                            (i) outreach, intake, and orientation to 
                        the information and other services available 
                        through one-stop delivery of core services 
                        described in this subparagraph;
                            (ii) initial assessment of skill levels, 
                        aptitudes, abilities, and supportive service 
                        needs;
                            (iii) job search and placement assistance 
                        and, where appropriate, career counseling;
                            (iv) customized screening and referral of 
                        qualified applicants to employment;
                            (v) provision of accurate information 
                        relating to local labor market conditions, 
                        including employment profiles of growth 
                        industries and occupations within a substate 
                        area, the educational and skills requirements 
                        of jobs in the industries and occupations, and 
                        the earnings potential of the jobs;
                            (vi) provision of accurate information 
                        relating to the quality and availability of 
                        other workforce employment activities, 
                        workforce education activities, and vocational 
                        rehabilitation program activities;
                            (vii) provision of information regarding 
                        how the substate area is performing on the 
                        State benchmarks;
                            (viii) provision of initial eligibility 
                        information on forms of public financial 
                        assistance that may be available in order to 
                        enable persons to participate in workforce 
                        employment activities, workforce education 
                        activities, or vocational rehabilitation 
                        program activities; and
                            (ix) referral to other appropriate 
                        workforce employment activities, workforce 
                        education activities, and vocational 
                        rehabilitation employment activities.
            (3) Labor market and occupational information system.--The 
        State shall use a portion of the funds described in paragraph 
        (1) to establish a statewide comprehensive labor market and 
        occupational information system described in section 183(c).
            (4) Job placement accountability system.--The State shall 
        use a portion of the funds described in paragraph (1) to 
        establish a job placement accountability system described in 
        section 121(d).
            (5) Permissible one-stop delivery activities.--The State 
        may provide, through one-stop delivery--
                    (A) co-location of services related to workforce 
                development activities, such as unemployment insurance, 
                vocational rehabilitation program activities, welfare 
                assistance, veterans' employment services, or other 
                public assistance;
                    (B) intensive services for participants who are 
                unable to obtain employment through the core services 
                described in paragraph (2)(B), as determined by the 
                State; and
                    (C) dissemination to employers of information on 
                activities carried out through the statewide system.
            (6) Other permissible activities.--The State may use a 
        portion of the funds described in paragraph (1) to provide 
        services through the statewide system that may include--
                    (A) on-the-job training;
                    (B) occupational skills training;
                    (C) entrepreneurial training;
                    (D) training to develop work habits to help 
                individuals obtain and retain employment;
                    (E) customized training conducted with a commitment 
                by an employer or group of employers to employ an 
                individual after successful completion of the training;
                    (F) rapid response assistance for dislocated 
                workers;
                    (G) skill upgrading and retraining for persons not 
                in the workforce;
                    (H) preemployment and work maturity skills training 
                for youth;
                    (I) connecting activities that organize consortia 
                of small- and medium-size businesses to provide work-
                based learning opportunities for youth participants in 
                school-to-work programs;
                    (J) programs for adults that combine workplace 
                training with related instruction;
                    (K) services to assist individuals in attaining 
                certificates of mastery with respect to industry-based 
                skill standards;
                    (L) case management services;
                    (M) supportive services, such as transportation and 
                financial assistance, that enable individuals to 
                participate in the statewide system; and
                    (N) followup services for participants who are 
                placed in unsubsidized employment.
            (7) Staff development and training.--The State may use a 
        portion of the funds described in paragraph (1) for the 
        development and training of staff of providers of one-stop 
        delivery of core services described in paragraph (2), including 
        development and training relating to principles of quality 
        management.
            (8) Incentive grant awards.--The State may use a portion of 
        the funds described in paragraph (1) to award incentive grants 
        to substate areas that reach or exceed the State benchmarks 
        established under section 121(c), with an emphasis on 
        benchmarks established under section 121(c)(3). A substate area 
        that receives such a grant may use the funds made available 
        through the grant to carry out any workforce development 
        activities authorized under this subtitle.
            (9) Vouchers.--
                    (A) In general.--A State may deliver, to persons 
                age 18 or older who are unable to obtain Pell Grants 
                under title IV of the Higher Education Act of 1965 (20 
                U.S.C. 1070 et seq.), some or all of the workforce 
                employment activities described in paragraph (6) that 
                are provided under this subtitle through a system of 
                vouchers administered through the one-stop delivery of 
                core services described in paragraph (2) in the State.
                    (B) Eligibility requirements.--
                            (i) In general.--A State that chooses to 
                        deliver the activities described in 
                        subparagraph (A) through vouchers shall 
                        indicate in the State plan described in section 
                        104 the criteria that will be used to 
                        determine--
                                    (I) which workforce employment 
                                activities described in paragraph (6) 
                                will be delivered through the voucher 
                                system;
                                    (II) eligibility requirements for 
                                participants to receive the vouchers 
                                and the amount of funds that 
                                participants will be able to access 
                                through the voucher system; and
                                    (III) which employment, training, 
                                and education providers are eligible to 
                                receive payment through the vouchers.
                            (ii) Considerations.--In establishing State 
                        criteria for service providers eligible to 
                        receive payment through the vouchers under 
                        clause (i)(III), the State shall take into 
                        account industry-recognized skills standards 
                        promoted by the National Skills Standards 
                        Board.
                    (C) Accountability requirements.--A State that 
                chooses to deliver the activities described in 
                paragraph (6) through vouchers shall indicate in the 
                State plan--
                            (i) information concerning how the State 
                        will utilize the statewide comprehensive labor 
                        market and occupational information system 
                        described in section 183(c) and the job 
                        placement accountability system established 
                        under section 121(d) to provide timely and 
                        accurate information to participants about the 
                        performance of eligible employment, training, 
                        and education providers;
                            (ii) other information about the 
                        performance of eligible providers of services 
                        that the State believes is necessary for 
                        participants receiving the vouchers to make 
                        informed career choices; and
                            (iii) the timeframe in which the 
                        information developed under clauses (i) and 
                        (ii) will be widely available through the one-
                        stop delivery of core services described in 
                        paragraph (2) in the State.
                    (D) Information.--A State that determines that a 
                need exists to train persons age 18 or older through 
                activities authorized under paragraph (6) shall 
                indicate in the State plan described in section 104 for 
                the State, or the annual report described in section 
                121(a) for the State, the extent, if any, to which the 
                State will use the authority of this paragraph to 
                deliver some or all of such activities through a system 
                of vouchers, including indicating the information and 
                timeframes required under subparagraph (C).
    (b) Workforce Education Activities.--The State educational agency 
shall use the funds made available to the State educational agency 
under this subtitle for workforce education activities to carry out, 
through the statewide system, activities that include--
            (1) integrating academic and vocational education;
            (2) linking secondary education (as determined under State 
        law) and postsecondary education, including implementing tech-
        prep programs;
            (3) providing career guidance and counseling for students 
        at the earliest possible age, including the provision of career 
        awareness, exploration, planning, and guidance information to 
        students and their parents that is, to the extent possible, in 
        a language and form that the students and their parents 
        understand;
            (4) providing literacy and basic education services for 
        adults and out-of-school youth, including adults and out-of-
        school youth in correctional institutions;
            (5) providing programs for adults and out-of-school youth 
        to complete their secondary education;
            (6) expanding, improving, and modernizing quality 
        vocational education programs; and
            (7) improving access to quality vocational education 
        programs for at-risk youth.
    (c) Fiscal Requirements for Workforce Education Activities.--
            (1) Supplement not supplant.--Funds made available under 
        this subtitle for workforce education activities shall 
        supplement, and may not supplant, other public funds expended 
        to carry out workforce education activities.
            (2) Maintenance of effort.--
                    (A) Determination.--No payments shall be made under 
                this subtitle for any program year to a State for 
                workforce education activities unless the Federal 
                Partnership determines that the fiscal effort per 
                student or the aggregate expenditures of such State for 
                workforce education for the program year preceding the 
                program year for which the determination is made, 
                equaled or exceeded such effort or expenditures for 
                workforce education for the second program year 
                preceding the fiscal year for which the determination 
                is made.
                    (B) Waiver.--The Federal Partnership may waive the 
                requirements of this section (with respect to not more 
                than 5 percent of expenditures by any State educational 
                agency) for 1 program year only, on making a 
                determination that such waiver would be equitable due 
                to exceptional or uncontrollable circumstances 
                affecting the ability of the applicant to meet such 
                requirements, such as a natural disaster or an 
                unforeseen and precipitous decline in financial 
                resources. No level of funding permitted under such a 
                waiver may be used as the basis for computing the 
                fiscal effort or aggregate expenditures required under 
                this section for years subsequent to the year covered 
                by such waiver. The fiscal effort or aggregate 
                expenditures for the subsequent years shall be computed 
                on the basis of the level of funding that would, but 
                for such waiver, have been required.
    (d) Flexible Workforce Activities.--
            (1) Core flexible workforce activities.--The State shall 
        use a portion of the funds made available to the State under 
        this subtitle through the flex account to carry out school-to-
        work activities through the statewide system, except that any 
        State that received a grant under subtitle B of title II of the 
        School-to-Work Opportunities Act of 1994 (20 U.S.C. 6141 et 
        seq.) shall use such portion to support the continued 
        development of the statewide School-to-Work Opportunities 
        system of the State through the continuation of activities that 
        are carried out in accordance with the terms of such grant.
            (2) Permissible flexible workforce activities.--The State 
        may use a portion of the funds made available to the State 
        under this subtitle through the flex account--
                    (A) to carry out workforce employment activities 
                through the statewide system; and
                    (B) to carry out workforce education activities 
                through the statewide system.
    (e) Economic Development Activities.--In the case of a State that 
meets the requirements of section 118(c), the State may use not more 
than 50 percent of the funds made available to the State under this 
subtitle through the flex account to supplement other funds provided by 
the State or private sector--
            (1) to provide services to upgrade the skills of employed 
        workers who are at risk of being permanently laid off;
            (2) to retrain employed workers in new technologies and 
        work processes that will facilitate the conversion and 
        restructuring of businesses to assist in the avoidance of 
        closures, or layoffs of 50 or more people, at a plant, 
        facility, or enterprise;
            (3) to provide customized assessments of the skills of 
        workers and an analysis of the skill needs of employers;
            (4) to assist consortia of small- and medium-size employers 
        in upgrading the skills of their workforces;
            (5) to provide productivity and quality improvement 
        training programs for the workforces of small- and medium-size 
        employers;
            (6) to provide recognition and use of voluntary industry-
        developed skills standards by employers, schools, and training 
        institutions;
            (7) to carry out training activities in companies that are 
        developing modernization plans in conjunction with State 
        industrial extension service offices; and
            (8) to provide on-site, industry-specific training programs 
        supportive of industrial and economic development;
through the statewide system.
    (f) Limitations.--
            (1) Wages.--No funds provided under this subtitle shall be 
        used to pay the wages of incumbent workers during their 
        participation in economic development activities provided 
        through the statewide system.
            (2) Relocation.--No funds provided under this subtitle 
        shall be used or proposed for use to encourage or induce the 
        relocation, of a business or part of a business, that results 
        in a loss of employment for any employee of such business at 
        the original location.
            (3) Training and assessments following relocation.--No 
        funds provided under this subtitle shall be used for customized 
        or skill training, on-the-job training, or company-specific 
        assessments of job applicants or workers, for any business or 
        part of a business, that has relocated, until 120 days after 
        the date on which such business commences operations at the new 
        location, if the relocation of such business or part of a 
        business, results in a loss of employment for any worker of 
        such business at the original location.
            (4) Displacement.--
                    (A) In general.--No currently employed worker shall 
                be displaced (including partial displacement such as a 
                reduction in hours of nonovertime work, wages, or 
                employment benefits) by any participant in an activity 
                carried out under this subtitle.
                    (B) Existing contract for services or collective 
                bargaining agreement.--No activity carried out under 
                this subtitle shall impair an existing contract for 
                services or a collective bargaining agreement.
                    (C) Layoff or termination.--No participant shall be 
                employed or job opening filled for an activity carried 
                out under this subtitle--
                            (i) when any other individual is on layoff 
                        from the same or a substantially equivalent 
                        job; or
                            (ii) when the employer has terminated the 
                        employment of any regular employee or otherwise 
                        reduced the workforce of the employer with the 
                        intention of filling the vacancy so created by 
                        hiring a participant whose wages are subsidized 
                        under this subtitle.
            (5) Health and safety.--Health and safety standards 
        established under Federal and State law otherwise applicable to 
        working conditions of employees shall be equally applicable to 
        working conditions of participants engaged in work-related 
        activities pursuant to this subtitle. Appropriate workers' 
        compensation shall be provided to the participants on the same 
        basis as the compensation is provided to other individuals in 
        the State in similar employment (as determined under 
        regulations issued by the Secretary of Labor).
            (6) Employment conditions.--Participants employed or 
        assigned to work in positions subsidized under this subtitle 
        shall be provided benefits and working conditions at the same 
        level and to the same extent as other employees working a 
        similar length of time and doing the same type of work.
            (7) Nondiscrimination.--Except as otherwise permitted in 
        law, no individual may be excluded from participation in 
        workforce development activities carried out under this 
        subtitle because of race, color, religion, sex, national 
        origin, disability, or age.
            (8) Grievance procedure.--The State shall establish and 
        maintain (pursuant to regulations issued by the Secretary of 
        Labor) a grievance procedure for resolving complaints alleging 
        violations of any of the prohibitions or requirements described 
        in this subsection. Such procedure shall include an opportunity 
        for a hearing and shall be completed not later than the 90th 
        day after the date of the submission of a complaint, by which 
        day the complainant shall be provided a written decision by the 
        State. A decision of the State under such procedure, or a 
        failure of the State to issue a decision within the 90-day 
        period, may be appealed to the Secretary of Labor, who shall 
        investigate the allegations contained in the complaint and make 
        a determination not later than 60 days after the date of the 
        appeal as to whether a violation of a prohibition or 
        requirement of this subsection has occurred.
            (9) Remedies.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), remedies that may be imposed 
                under this paragraph for violations of the prohibitions 
                and requirements described in this subsection shall be 
                limited to--
                            (i) suspension or termination of payments 
                        under this subtitle;
                            (ii) prohibition of placement of any 
                        participant, for an appropriate period of time, 
                        with an employer that has violated this 
                        subsection; and
                            (iii) appropriate equitable relief (other 
                        than backpay).
                    (B) Exceptions.--
                            (i) Repayment.--If the Secretary of Labor 
                        determines that a violation of paragraph (2) or 
                        (3) has occurred, the Secretary of Labor shall 
                        require the State or substate recipient of 
                        funds that has violated paragraph (2) or (3), 
                        respectively, to repay to the United States an 
                        amount equal to the amount expended in 
                        violation of paragraph (2) or (3), 
                        respectively.
                            (ii) Additional remedies.--In addition to 
                        the remedies available under subparagraph (A), 
                        remedies available under this paragraph for 
                        violations of paragraph (4) may include--
                                    (I) reinstatement of the displaced 
                                employee to the position held by such 
                                employee prior to displacement;
                                    (II) payment of lost wages and 
                                benefits of the employee; and
                                    (III) reestablishment of other 
                                relevant terms, conditions, and 
                                privileges of employment of the 
                                employee.
                    (C) Other laws or contracts.--Nothing in this 
                paragraph shall be construed to prohibit a complainant 
                from pursuing a remedy authorized under another 
                Federal, State, or local law or a contract or 
                collective bargaining agreement for a violation of the 
                prohibitions or requirements described in this 
                subsection.
    (g) Limitations on Participants.--
            (1) Diploma or equivalent.--
                    (A) In general.--No individual may participate in 
                workforce employment activities described in 
                subparagraph (A), (B), (C), (E), (G), (J), or (K) of 
                subsection (a)(6) until the individual has obtained a 
                secondary school diploma or its recognized equivalent, 
                or is enrolled in a program or course of study to 
                obtain a secondary school diploma or its recognized 
                equivalent.
                    (B) Exception.--Nothing in subparagraph (A) shall 
                prevent participation in workforce employment 
                activities described under subparagraph (A), (B), (C), 
                (E), (G), (J), or (K) of subsection (a)(6) by 
                individuals who, after testing and in the judgment of 
                medical, psychiatric, academic, or other appropriate 
                professionals, lack the requisite capacity to complete 
                successfully a course of study that would lead to a 
                secondary school diploma or its recognized equivalent.
            (2) Services.--
                    (A) Referral.--If an individual who has not 
                obtained a secondary school diploma or its recognized 
                equivalent applies to participate in workforce 
                employment activities described under subparagraph (A), 
                (B), (C), (E), (G), (J), or (K) of subsection (a)(6), 
                such individual shall be referred to State approved 
                adult education services that provide instruction 
                designed to help such individual obtain a secondary 
                school diploma or its recognized equivalent.
                    (B) State provision of services.--Notwithstanding 
                any other provision of this title, a State may use 
                funds made available under this subtitle for workforce 
                employment activities to provide State approved adult 
                education services that provide instruction designed to 
                help individuals obtain a secondary school diploma or 
                its recognized equivalent, to individuals who--
                            (i) are seeking to participate in workforce 
                        employment activities described under 
                        subparagraph (A), (B), (C), (E), (G), (J), or 
                        (K) of subsection (a)(6); and
                            (ii) are otherwise unable to obtain such 
                        services.
    (h) Laws and procedures applicable to expenditure of State funds.--
Any funds received by a State under this subtitle shall be expended 
only in accordance with the laws and procedures applicable to 
expenditures of the State's own revenues, subject to the terms and 
conditions required under this subtitle, particularly section 104, 
section 105, and chapter 2.
    (i) Limitations on Participants.--
            (1) Finding.--Congress finds that--
                    (A) the possession, distribution, and use of drugs 
                by participants in workforce employment activities 
                should not be tolerated, and that such use prevents 
                participants from making full use of the benefits 
                extended through such activities at the expense of 
                taxpayers; and
                    (B) applicants and participants should be tested 
                for illegal drug use, in order to maximize the training 
                and assistance provided under this Act.
            (2) Drug tests.--Each local entity carrying out workforce 
        employment activities described in subparagraph (A), (B), (C), 
        (D), (E), (G), (H), (J), or (K) of subsection (a)(6) shall 
        administer a drug test--
                    (A) on a random basis, to individuals who apply to 
                participate in such activities; and
                    (B) to a participant in such activities, on 
                reasonable suspicion of drug use by the participant.
            (3) Eligibility of applicants.--In order for such an 
        applicant to be eligible to participate in workforce employment 
        activities, the applicant shall agree to submit to a drug test 
        administered as described in paragraph (2) and, if the test is 
        administered to the applicant, shall pass the test.
            (4) Eligibility of participants.--In order for such a 
        participant to be eligible to participate in workforce 
        employment activities described in subparagraph (A), (B), (C), 
        (D), (E), (G), (H), (J), or (K) of subsection (a)(6), the 
        individual shall agree to submit to a drug test administered as 
        described in paragraph (2) and, if the test is administered to 
        the participant, shall pass the test. If a participant refuses 
        to submit to the drug test, or fails the drug test, the local 
        entity shall dismiss the participant from participation in the 
        activities.
            (5) Reapplication.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an individual who is an applicant and is 
                disqualified from eligibility under paragraph (3), or 
                who is a participant and is dismissed under paragraph 
                (4), may reapply, not earlier than 6 months after the 
                date of the disqualification or dismissal, to 
                participate in the workforce employment activities 
                described in subparagraph (A), (B), (C), (D), (E), (G), 
                (H), (J), or (K) of subsection (a)(6). If the 
                individual demonstrates that the individual has 
                completed a drug treatment program and passed a drug 
                test within the past 30 days, the individual may 
                participate in such activities, under the same terms 
                and conditions as apply to other applicants and 
                participants, including submission to drug tests 
                administered as described in paragraph (2).
                    (B) Second disqualification or dismissal.--If the 
                individual reapplies to participate in the activities 
                and fails a drug test administered under paragraph (2) 
                by the local entity, while the individual is an 
                applicant or a participant, the local entity shall 
                disqualify the individual from eligibility for, or 
                dismiss the individual from participation in, the 
                workforce employment activities. The individual shall 
                not be eligible to reapply for participation in the 
                activities for 2 years after such disqualification or 
                dismissal.
            (6) Appeal.--A decision by a local entity to disqualify an 
        individual from eligibility for participation in workforce 
        employment activities under paragraph (3) or (5), or to dismiss 
        a participant as described in paragraph (4) or (5), shall be 
        subject to expeditious appeal in accordance with procedures 
        established by the State in which the local entity is located.
            (7) Definitions.--As used in this section:
                    (A) Drug.--The term ``drug'' means a controlled 
                substance, as defined in section 102(6) of the 
                Controlled Substance Act (21 U.S.C. 802(6)).
                    (B) Drug test.--The term ``drug test'' means a 
                biochemical drug test carried out by a facility that is 
                approved by the local entity administering the test.

SEC. 107. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

    (a) Purpose.--
            (1) In general.--The purpose of this section is to support 
        workforce development activities for Indian and Native Hawaiian 
        individuals in order--
                    (A) to develop more fully the academic, 
                occupational, and literacy skills of such individuals;
                    (B) to make such individuals more competitive in 
                the workforce; and
                    (C) to promote the economic and social development 
                of Indian and Native Hawaiian communities in accordance 
                with the goals and values of such communities.
            (2)  Indian policy.--All programs assisted under this 
        section shall be administered in a manner consistent with the 
        principles of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
        government relationship between the Federal Government and 
        Indian tribal governments.
    (b) Definitions.--As used in this section:
            (1) Alaska native.--The term ``Alaska Native'' means a 
        Native as such term is defined in section 3(b) of the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1602(b)).
            (2) Indian, indian tribe, and tribal organization.--The 
        terms ``Indian'', ``Indian tribe'', and ``tribal organization'' 
        have the same meanings given such terms in subsections (d), 
        (e), and (l), respectively, of section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 1201(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(a)).
            (4) Native hawaiian and native hawaiian organization.--The 
        terms ``Native Hawaiian'' and ``Native Hawaiian organization'' 
        have the same meanings given such terms in paragraphs (1) and 
        (3), respectively, of section 9212 of the Native Hawaiian 
        Education Act (20 U.S.C. 7912).
            (5) Tribally controlled community college.--The term 
        ``tribally controlled community college'' has the same meaning 
        given such term in section 2(a)(4) of the Tribally Controlled 
        Community College Assistance Act of 1978 (25 U.S.C. 
        1801(a)(4)).
            (6) Tribally controlled postsecondary vocational 
        institution.--The term ``tribally controlled postsecondary 
        vocational institution'' means an institution of higher 
        education that--
                    (A) is formally controlled, or has been formally 
                sanctioned or chartered, by the governing body of an 
                Indian tribe or Indian tribes;
                    (B) offers a technical degree or certificate 
                granting program;
                    (C) is governed by a board of directors or 
                trustees, a majority of whom are Indians;
                    (D) demonstrates adherence to stated goals, a 
                philosophy, or a plan of operation, that fosters 
                individual Indian economic and self-sufficiency 
                opportunity, including programs that are appropriate to 
                stated tribal goals of developing individual 
                entrepreneurships and self-sustaining economic 
                infrastructures on reservations;
                    (E) has been in operation for at least 3 years;
                    (F) holds accreditation with or is a candidate for 
                accreditation by a nationally recognized accrediting 
                authority for postsecondary vocational education; and
                    (G) enrolls the full-time equivalent of not fewer 
                than 100 students, of whom a majority are Indians.
    (c) Program Authorized.--
            (1) Assistance authorized.--From amounts made available 
        under section 124(b)(2), the Secretary of Labor and the 
        Secretary of Education, acting jointly on the advice of the 
        Federal Partnership, shall make grants to, or enter into 
        contracts or cooperative agreements with, Indian tribes, tribal 
        organizations, Alaska Native entities, tribally controlled 
        community colleges, tribally controlled postsecondary 
        vocational institutions, Indian-controlled organizations 
        serving Indians, or Native Hawaiian organizations to carry out 
        the authorized activities described in subsection (d).
            (2) Formula.--The Secretary of Labor and the Secretary of 
        Education, acting jointly on the advice of the Federal 
        Partnership, shall make grants to, or enter into contracts and 
        cooperative agreements with, entities as described in paragraph 
        (1) to carry out the activities described in paragraphs (2) and 
        (3) of subsection (d) on the basis of a formula developed by 
        the Federal Partnership in consultation with entities described 
        in paragraph (1).
    (d) Authorized Activities.--
            (1) In general.--Funds made available under this section 
        shall be used to carry out the activities described in 
        paragraphs (2) and (3) that--
                    (A) are consistent with this section; and
                    (B) are necessary to meet the needs of Indians or 
                Native Hawaiians preparing to enter, reenter, or retain 
                unsubsidized employment.
            (2) Workforce development activities and supplemental 
        services.--
                    (A) In general.--Funds made available under this 
                section shall be used for--
                            (i) comprehensive workforce development 
                        activities for Indians or Native Hawaiians;
                            (ii) supplemental services for Indian or 
                        Native Hawaiian youth on or near Indian 
                        reservations in Oklahoma, Alaska, or Hawaii; or
                            (iii) supplemental services for recipients 
                        of public assistance on or near Indian 
                        reservations or former reservation areas in 
                        Oklahoma or in Alaska.
                    (B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were 
                eligible to participate in programs under section 401 
                of the Job Training Partnership Act (29 U.S.C. 1671) 
                (as such section was in effect on the day before the 
                date of enactment of this Act) shall be eligible to 
                participate in an activity assisted under subparagraph 
                (A)(i).
            (3) Vocational education, adult education, and literacy 
        services.--Funds made available under this section shall be 
        used for--
                    (A) workforce education activities conducted by 
                entities described in subsection (c)(1); or
                    (B) the support of tribally controlled 
                postsecondary vocational institutions in order to 
                ensure continuing and expanded educational 
                opportunities for Indian students.
    (e) Program Plan.--In order to receive a grant or enter into a 
contract or cooperative agreement under this section an entity 
described in subsection (c)(1) shall submit to the Federal Partnership 
a plan that describes a 3-year strategy for meeting the needs of Indian 
or Native Hawaiian individuals, as appropriate, in the area served by 
such entity. Such plan shall--
            (1) be consistent with the purposes of this section;
            (2) identify the population to be served;
            (3) identify the education and employment needs of the 
        population to be served and the manner in which the services to 
        be provided will strengthen the ability of the individuals 
        served to obtain or retain unsubsidized employment;
            (4) describe the services to be provided and the manner in 
        which such services are to be integrated with other appropriate 
        services; and
            (5) describe the goals and benchmarks to be used to assess 
        the performance of entities in carrying out the activities 
        assisted under this section.
    (f) Further Consolidation of Funds.--Each entity receiving 
assistance under this section may consolidate such assistance with 
assistance received from related programs in accordance with the 
provisions of the Indian Employment, Training and Related Services 
Demonstration Act of 1992 (25 U.S.C. 3401 et seq.).
    (g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            (1) to limit the eligibility of any entity described in 
        subsection (c)(1) to participate in any program offered by a 
        State or local entity under this title; or
            (2) to preclude or discourage any agreement, between any 
        entity described in subsection (c)(1) and any State or local 
        entity, to facilitate the provision of services by such entity 
        or to the population served by such entity.
    (h) Partnership Provisions.--
            (1) Office established.--There shall be established within 
        the Federal Partnership an office to administer the activities 
        assisted under this section.
            (2) Consultation required.--
                    (A) In general.--The Federal Partnership, through 
                the office established under paragraph (1), shall 
                develop regulations and policies for activities 
                assisted under this section in consultation with tribal 
                organizations and Native Hawaiian organizations. Such 
                regulations and policies shall take into account the 
                special circumstances under which such activities 
                operate.
                    (B) Administrative support.--The Federal 
                Partnership shall provide such administrative support 
                to the office established under paragraph (1) as the 
                Federal Partnership determines to be necessary to carry 
                out the consultation required by subparagraph (A).
            (3) Technical assistance.--The Federal Partnership, through 
        the office established under paragraph (1), is authorized to 
        provide technical assistance to entities described in 
        subsection (c)(1) that receive assistance under this section to 
        enable such entities to improve the workforce development 
        activities provided by such entities.

SEC. 108. MIGRANT OR SEASONAL FARMWORKER PROGRAM.

    (a) General Authority.--Using funds made available under section 
124(b)(3), the Secretary of Labor and the Secretary of Education, 
acting jointly on the advice of the Federal Partnership, shall make 
grants to, or enter into contracts with, entities to carry out the 
activities described in subsection (d).
    (b) Eligible Entities.--To be eligible to receive a grant or enter 
into a contract under this section, an entity shall have an 
understanding of the problems of migrant or seasonal farmworkers, a 
familiarity with the area to be served, and a previously demonstrated 
capacity to administer effectively a diversified program of workforce 
development activities for migrant or seasonal farmworkers.
    (c) Program Plan.--
            (1) In general.--To be eligible to receive a grant or enter 
        into a contract under this section, an entity described in 
        subsection (b) shall submit to the Federal Partnership a plan 
        that describes a 3-year strategy for meeting the needs of 
        migrant or seasonal farmworkers in the area to be served by 
        such entity.
            (2) Contents.--Such plan shall--
                    (A) identify the education and employment needs of 
                the population to be served and the manner in which the 
                services to be provided will strengthen the ability of 
                the individuals served to obtain or be retained in 
                unsubsidized employment;
                    (B) describe the services to be provided and the 
                manner in which such services are to be integrated with 
                other appropriate services; and
                    (C) describe the goals and benchmarks to be used to 
                assess the performance of such entity in carrying out 
                the activities assisted under this section.
    (d) Authorized Activities.--Funds made available under this section 
shall be used to carry out comprehensive workforce development 
activities, and related services, for migrant or seasonal farmworkers.
    (e) Consultation with State and Local Partnerships and Boards.--In 
making grants and entering into contracts under this section, the 
Federal Partnership shall consult with the Governors (or, where 
established, the State workforce development boards described in 
section 105) and with local partnerships (or, where established, the 
local workforce development boards described in section 118(b)).

SEC. 109. GRANTS TO OUTLYING AREAS.

    (a) General Authority.--Using funds made available under section 
124(b)(4), the Secretary of Labor and the Secretary of Education, 
acting jointly on the advice of the Federal Partnership, shall make 
grants to outlying areas to carry out workforce development activities.
    (b) Application.--The Federal Partnership shall issue regulations 
specifying the provisions of this subtitle that shall apply to outlying 
areas that receive funds under this subtitle.

                      CHAPTER 2--LOCAL PROVISIONS

SEC. 111. LOCAL APPORTIONMENT BY ACTIVITY.

    (a) Workforce Employment Activities.--
            (1) In general.--The sum of--
                    (A) the funds made available to a State for any 
                fiscal year under section 103(a)(1), less any portion 
                of such funds made available under section 6 of the 
                Wagner-Peyser Act (29 U.S.C. 49e); and
                    (B) the funds made available to a State for any 
                fiscal year under section 103(a)(3) for workforce 
                employment activities;
        shall be made available to the Governor of such State for use 
        in accordance with paragraph (2).
            (2) Distribution.--Of the sum described in paragraph (1), 
        for a program year--
                    (A) 25 percent shall be reserved by the Governor to 
                carry out workforce employment activities through the 
                statewide system, of which not more than 20 percent of 
                such 25 percent may be used for administrative 
                expenses; and
                    (B) 75 percent shall be distributed by the Governor 
                to local entities to carry out workforce employment 
                activities through the statewide system, based on--
                            (i) such factors as the relative 
                        distribution among substate areas of 
                        individuals who are not less than 15 and not 
                        more than 65, individuals in poverty, 
                        unemployed individuals, and adult recipients of 
                        assistance, as determined using the definitions 
                        specified and the determinations described in 
                        section 102(b); and
                            (ii) such additional factors as the 
                        Governor (in consultation with local 
                        partnerships or, where established, local 
                        workforce development boards described in 
                        section 118(b)), determines to be necessary.
    (b) Workforce Education Activities.--
            (1) In general.--The sum of the funds made available to a 
        State for any program year under paragraphs (2) and (3) of 
        section 103(a) for workforce education activities shall be made 
        available to the State educational agency serving such State 
        for use in accordance with paragraph (2).
            (2) Distribution.--Of the sum described in paragraph (1), 
        for a program year--
                    (A) 20 percent shall be reserved by the State 
                educational agency to carry out statewide workforce 
                education activities through the statewide system, of 
                which not more than 5 percent of such 20 percent may be 
                used for administrative expenses; and
                    (B) 80 percent shall be distributed by the State 
                educational agency to entities eligible for financial 
                assistance under section 112, 113, or 114, to carry out 
                workforce education activities through the statewide 
                system.
            (3) State activities.--Activities to be carried out under 
        paragraph (2)(A) may include professional development, 
        technical assistance, and program assessment activities.
            (4) State determinations.--From the amount available to a 
        State educational agency under paragraph (2)(B) for a program 
        year, such agency shall determine the percentage of such amount 
        that will be distributed in accordance with sections 112, 113, 
        and 114 for such year for workforce education activities in 
        such State in each of the following areas:
                    (A) Secondary school vocational education, or 
                postsecondary and adult vocational education, or both; 
                and
                    (B) Adult education.
    (c) Special Rule.--Nothing in this subtitle shall be construed to 
prohibit any individual, entity, or agency in a State (other than the 
State educational agency) that is administering workforce education 
activities or setting education policies consistent with authority 
under State law for workforce education activities, on the day 
preceding the date of enactment of this Act from continuing to 
administer or set education policies consistent with authority under 
State law for such activities under this subtitle.

SEC. 112. DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL EDUCATION.

    (a) Allocation.--Except as otherwise provided in this section and 
section 115, each State educational agency shall distribute the portion 
of the funds made available for any program year (from funds made 
available for the corresponding fiscal year, as determined under 
section 124(c)) by such agency for secondary school vocational 
education under section 111(b)(4)(A) to local educational agencies 
within the State as follows:
            (1) Seventy percent.--From 70 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 70 percent as the amount 
        such local educational agency was allocated under section 1124 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6333) for the preceding fiscal year bears to the total 
        amount received under such section by all local educational 
        agencies in the State for such year.
            (2) Twenty percent.--From 20 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 20 percent as the number of 
        students with disabilities who have individualized education 
        programs under section 614(a)(5) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1414(a)(5)) served by 
        such local educational agency for the preceding fiscal year 
        bears to the total number of such students served by all local 
        educational agencies in the State for such year.
            (3) Ten percent.--From 10 percent of such portion, each 
        local educational agency shall be allocated an amount that 
        bears the same relationship to such 10 percent as the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of such local educational 
        agency for the preceding fiscal year bears to the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of all local educational 
        agencies in the State for such year.
    (b) Minimum Allocation.--
            (1) In general.--Except as provided in paragraph (2), no 
        local educational agency shall receive an allocation under 
        subsection (a) unless the amount allocated to such agency under 
        subsection (a) is not less than $15,000. A local educational 
        agency may enter into a consortium with other local educational 
        agencies for purposes of meeting the minimum allocation 
        requirement of this paragraph.
            (2) Waiver.--The State educational agency may waive the 
        application of paragraph (1) in any case in which the local 
        educational agency--
                    (A) is located in a rural, sparsely populated area; 
                and
                    (B) demonstrates that such agency is unable to 
                enter into a consortium for purposes of providing 
                services under this section.
            (3) Redistribution.--Any amounts that are not allocated by 
        reason of paragraph (1) or (2) shall be redistributed to local 
        educational agencies that meet the requirements of paragraph 
        (1) or (2) in accordance with the provisions of this section.
    (c) Limited Jurisdiction Agencies.--
            (1) In general.--In applying the provisions of subsection 
        (a), no State educational agency receiving assistance under 
        this subtitle shall allocate funds to a local educational 
        agency that serves only elementary schools, but shall 
        distribute such funds to the local educational agency or 
        regional educational agency that provides secondary school 
        services to secondary school students in the same attendance 
        area.
            (2) Special rule.--The amount to be allocated under 
        paragraph (1) to a local educational agency that has 
        jurisdiction only over secondary schools shall be determined 
        based on the number of students that entered such secondary 
        schools in the previous year from the elementary schools 
        involved.
    (d) Allocations to Area Vocational Education Schools and 
Educational Service Agencies.--
            (1) In general.--Each State educational agency shall 
        distribute the portion of funds made available for any program 
        year by such agency for secondary school vocational education 
        under section 111(b)(4)(A) to the appropriate area vocational 
        education school or educational service agency in any case in 
        which--
                    (A) the area vocational education school or 
                educational service agency, and the local educational 
                agency concerned--
                            (i) have formed or will form a consortium 
                        for the purpose of receiving funds under this 
                        section; or
                            (ii) have entered into or will enter into a 
                        cooperative arrangement for such purpose; and
                    (B)(i) the area vocational education school or 
                educational service agency serves an approximately 
                equal or greater proportion of students who are 
                individuals with disabilities or are low-income than 
                the proportion of such students attending the secondary 
                schools under the jurisdiction of all of the local 
                educational agencies sending students to the area 
                vocational education school or the educational service 
                agency; or
                    (ii) the area vocational education school, 
                educational service agency, or local educational agency 
                demonstrates that the vocational education school or 
                educational service agency is unable to meet the 
                criterion described in clause (i) due to the lack of 
                interest by students described in clause (i) in 
                attending vocational education programs in that area 
                vocational education school or educational service 
                agency.
            (2) Allocation basis.--If an area vocational education 
        school or educational service agency meets the requirements of 
        paragraph (1), then--
                    (A) the amount that will otherwise be distributed 
                to the local educational agency under this section 
                shall be allocated to the area vocational education 
                school, the educational service agency, and the local 
                educational agency, based on each school's or agency's 
                relative share of students described in paragraph 
                (1)(B)(i) who are attending vocational education 
                programs (based, if practicable, on the average 
                enrollment for the prior 3 years); or
                    (B) such amount may be allocated on the basis of an 
                agreement between the local educational agency and the 
                area vocational education school or educational service 
                agency.
            (3) State determination.--
                    (A) In general.--For the purposes of this 
                subsection, the State educational agency may determine 
                the number of students who are low-income on the basis 
                of--
                            (i) eligibility for--
                                    (I) free or reduced-price meals 
                                under the National School Lunch Act (7 
                                U.S.C. 1751 et seq.);
                                    (II) assistance under a State 
                                program funded under part A of title IV 
                                of the Social Security Act;
                                    (III) benefits under the Food Stamp 
                                Act of 1977 (7 U.S.C. 2011 et seq.); or
                                    (IV) services under title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6301 et seq.); and
                            (ii) another index of economic status, 
                        including an estimate of such index, if the 
                        State educational agency demonstrates to the 
                        satisfaction of the Federal Partnership that 
                        such index is a more representative means of 
                        determining such number.
                    (B) Data.--If a State educational agency elects to 
                use more than 1 factor described in subparagraph (A) 
                for purposes of making the determination described in 
                such subparagraph, the State educational agency shall 
                ensure that the data used is not duplicative.
            (4) Appeals procedure.--The State educational agency shall 
        establish an appeals procedure for resolution of any dispute 
        arising between a local educational agency and an area 
        vocational education school or an educational service agency 
        with respect to the allocation procedures described in this 
        section, including the decision of a local educational agency 
        to leave a consortium.
            (5) Special rule.--Notwithstanding the provisions of 
        paragraphs (1), (2), (3), and (4), any local educational agency 
        receiving an allocation that is not sufficient to conduct a 
        secondary school vocational education program of sufficient 
        size, scope, and quality to be effective may--
                    (A) form a consortium or enter into a cooperative 
                agreement with an area vocational education school or 
                educational service agency offering secondary school 
                vocational education programs of sufficient size, 
                scope, and quality to be effective and that are 
                accessible to students who are individuals with 
                disabilities or are low-income, and are served by such 
                local educational agency; and
                    (B) transfer such allocation to the area vocational 
                education school or educational service agency.
    (e) Special Rule.--Each State educational agency distributing funds 
under this section shall treat a secondary school funded by the Bureau 
of Indian Affairs within the State as if such school were a local 
educational agency within the State for the purpose of receiving a 
distribution under this section.

SEC. 113. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
              EDUCATION.

    (a) Allocation.--
            (1) In general.--Except as provided in subsection (b) and 
        section 115, each State educational agency, using the portion 
        of the funds made available for any program year by such agency 
        for postsecondary and adult vocational education under section 
        111(b)(4)(A)--
                    (A) shall reserve funds to carry out subsection 
                (d); and
                    (B) shall distribute the remainder to eligible 
                institutions or consortia of the institutions within 
                the State.
            (2) Formula.--Each such eligible institution or consortium 
        shall receive an amount for the program year (from funds made 
        available for the corresponding fiscal year, as determined 
        under section 124(c)) from such remainder that bears the same 
        relationship to such remainder as the number of individuals who 
        are Pell Grant recipients or recipients of assistance from the 
        Bureau of Indian Affairs and are enrolled in programs offered 
        by such institution or consortium for the preceding fiscal year 
        bears to the number of all such individuals who are enrolled in 
        any such program within the State for such preceding year.
            (3) Consortium requirements.--In order for a consortium of 
        eligible institutions described in paragraph (1) to receive 
        assistance pursuant to such paragraph such consortium shall 
        operate joint projects that--
                    (A) provide services to all postsecondary 
                institutions participating in the consortium; and
                    (B) are of sufficient size, scope, and quality to 
                be effective.
    (b) Waiver for More Equitable Distribution.--The Federal 
Partnership may waive the application of subsection (a) in the case of 
any State educational agency that submits to the Federal Partnership an 
application for such a waiver that--
            (1) demonstrates that the formula described in subsection 
        (a) does not result in a distribution of funds to the 
        institutions or consortia within the State that have the 
        highest numbers of low-income individuals and that an 
        alternative formula will result in such a distribution; and
            (2) includes a proposal for an alternative formula that may 
        include criteria relating to the number of individuals 
        attending the institutions or consortia within the State who--
                    (A) receive need-based postsecondary financial aid 
                provided from public funds;
                    (B) are members of families receiving assistance 
                under a State program funded under part A of title IV 
                of the Social Security Act;
                    (C) are enrolled in postsecondary educational 
                institutions that--
                            (i) are funded by the State;
                            (ii) do not charge tuition; and
                            (iii) serve only low-income students;
                    (D) are enrolled in programs serving low-income 
                adults; or
                    (E) are Pell Grant recipients.
    (c) Minimum Amount.--
            (1) In general.--No distribution of funds provided to any 
        institution or consortium for a program year under this section 
        shall be for an amount that is less than $50,000.
            (2) Redistribution.--Any amounts that are not distributed 
        by reason of paragraph (1) shall be redistributed to eligible 
        institutions or consortia in accordance with the provisions of 
        this section.
    (d) Special Rule for Criminal Offenders.--Each State educational 
agency shall distribute the funds reserved under subsection (a)(1)(A) 
to 1 or more State corrections agencies to enable the State corrections 
agencies to administer vocational education programs for juvenile and 
adult criminal offenders in correctional institutions in the State, 
including correctional institutions operated by local authorities.
    (e) Definitions.--For the purposes of this section--
            (1) the term ``eligible institution'' means a postsecondary 
        educational institution, a local educational agency serving 
        adults, or an area vocational education school serving adults 
        that offers or will offer a program that seeks to receive 
        financial assistance under this section;
            (2) the term ``low-income'', used with respect to a person, 
        means a person who is determined under guidelines developed by 
        the Federal Partnership to be low-income, using the most recent 
        available data provided by the Bureau of the Census, prior to 
        the determination; and
            (3) the term ``Pell Grant recipient'' means a recipient of 
        financial aid under subpart 1 of part A of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a et seq.).

SEC. 114. DISTRIBUTION FOR ADULT EDUCATION.

    (a) In General.--Except as provided in subsection (b)(3), from the 
amount made available by a State educational agency for adult education 
under section 111(b)(4)(B) for a program year, such agency shall award 
grants, on a competitive basis, to local educational agencies, 
correctional education agencies, community-based organizations of 
demonstrated effectiveness, volunteer literacy organizations, 
libraries, public or private nonprofit agencies, postsecondary 
educational institutions, public housing authorities, and other 
nonprofit institutions that have the ability to provide literacy 
services to adults and families, or consortia of agencies, 
organizations, or institutions described in this subsection, to enable 
such agencies, organizations, institutions, and consortia to establish 
or expand adult education programs.
    (b) Grant Requirements.--
            (1) Access.--Each State educational agency making funds 
        available for any program year for adult education under 
        section 111(b)(4)(B) shall ensure that the entities described 
        in subsection (a) will be provided direct and equitable access 
        to all Federal funds provided under this section.
            (2) Considerations.--In awarding grants under this section, 
        the State educational agency shall consider--
                    (A) the past effectiveness of applicants in 
                providing services (especially with respect to 
                recruitment and retention of educationally 
                disadvantaged adults and the learning gains 
                demonstrated by such adults);
                    (B) the degree to which an applicant will 
                coordinate and utilize other literacy and social 
                services available in the community; and
                    (C) the commitment of the applicant to serve 
                individuals in the community who are most in need of 
                literacy services.
            (3) Consortia.--A State educational agency may award a 
        grant under subsection (a) to a consortium that includes an 
        entity described in subsection (a) and a for-profit agency, 
        organization, or institution, if such agency, organization, or 
        institution--
                    (A) can make a significant contribution to carrying 
                out the objectives of this subtitle; and
                    (B) enters into a contract with the entity 
                described in subsection (a) for the purpose of 
                establishing or expanding adult education programs.
    (c) Local Administrative Cost Limits.--
            (1) In general.--Except as provided in paragraph (2), of 
        the funds provided under this section by a State educational 
        agency to an agency, organization, institution, or consortium 
        described in subsection (a), at least 95 percent shall be 
        expended for provision of adult education instructional 
        activities. The remainder shall be used for planning, 
        administration, personnel development, and interagency 
        coordination.
            (2) Special rule.--In cases where the cost limits described 
        in paragraph (1) will be too restrictive to allow for adequate 
        planning, administration, personnel development, and 
        interagency coordination supported under this section, the 
        State educational agency shall negotiate with the agency, 
        organization, institution, or consortium described in 
        subsection (a) in order to determine an adequate level of funds 
        to be used for noninstructional purposes.

SEC. 115. SPECIAL RULE FOR MINIMAL ALLOCATION.

    (a) General Authority.--For any program year for which a minimal 
amount is made available by a State educational agency for distribution 
under section 112 or 113 such agency may, notwithstanding the 
provisions of section 112 or 113, respectively, in order to make a more 
equitable distribution of funds for programs serving the highest 
numbers of low-income individuals (as defined in section 113(e)), 
distribute such minimal amount--
            (1) on a competitive basis; or
            (2) through any alternative method determined by the State 
        educational agency.
    (b) Minimal Amount.--For purposes of this section, the term 
``minimal amount'' means not more than 15 percent of the total amount 
made available by the State educational agency under section 
111(b)(4)(A) for section 112 or 113, respectively, for such program 
year.

SEC. 116. REDISTRIBUTION.

    (a) In General.--In any program year that an entity receiving 
financial assistance under section 112 or 113 does not expend all of 
the amounts distributed to such entity for such year under section 112 
or 113, respectively, such entity shall return any unexpended amounts 
to the State educational agency for distribution under section 112 or 
113, respectively. The State educational agency may waive the 
requirements of the preceding sentence, on a case-by-case basis, for 
good cause as determined by such agency.
    (b) Redistribution of Amounts Returned Late in a Program Year.--In 
any program year in which amounts are returned to the State educational 
agency under subsection (a) for programs described in section 112 or 
113 and the State educational agency is unable to redistribute such 
amounts according to section 112 or 113, respectively, in time for such 
amounts to be expended in such program year, the State educational 
agency shall retain such amounts for distribution in combination with 
amounts provided under such section for the following program year.

SEC. 117. LOCAL APPLICATION FOR WORKFORCE EDUCATION ACTIVITIES.

    (a) In General.--
            (1) In general.--Each eligible entity desiring financial 
        assistance under this subtitle for workforce education 
        activities shall submit an application to the State educational 
        agency at such time, in such manner and accompanied by such 
        information as such agency (in consultation with such other 
        educational entities as the State educational agency determines 
        to be appropriate) may require. Such application shall cover 
        the same period of time as the period of time applicable to the 
        State workforce development plan.
            (2) Definition.--For the purpose of this section the term 
        ``eligible entity'' means an entity eligible for financial 
        assistance under section 112, 113, or 114 from a State 
        educational agency.
    (b) Contents.--Each application described in subsection (a) shall, 
at a minimum--
            (1) describe how the workforce education activities 
        required under section 106(b), and other workforce education 
        activities, will be carried out with funds received under this 
        subtitle;
            (2) describe how the activities to be carried out relate to 
        meeting the State goals, and reaching the State benchmarks, 
        concerning workforce education activities;
            (3) describe how the activities to be carried out are an 
        integral part of the comprehensive efforts of the eligible 
        entity to improve education for all students and adults;
            (4) describe the process that will be used to independently 
        evaluate and continuously improve the performance of the 
        eligible entity; and
            (5) describe how the eligible entity will coordinate the 
        activities of the entity with the activities of the local 
        workforce development board, if any, in the substate area.

SEC. 118. LOCAL PARTNERSHIPS, AGREEMENTS, AND WORKFORCE DEVELOPMENT 
              BOARDS.

    (a) Local Agreements.--
            (1) In general.--
                    (A) Negotiation and agreement.--After a Governor 
                submits the State plan described in section 104 to the 
                Federal Partnership, the Governor shall negotiate and 
                enter into a local agreement regarding the workforce 
                development activities to be carried out in each 
                substate area in the State with local partnerships (or, 
                where established, local workforce development boards 
                described in subsection (b)).
                    (B) Workforce education activities.--In carrying 
                out activities under this section, a local partnership 
                or local workforce development board described in 
                subsection (b) may make recommendations with respect to 
                the allocation of funds for, or administration of, 
                workforce education activities in the State involved, 
                but such allocation and administration shall be carried 
                out in accordance with sections 111 through 117 and 
                section 119.
            (2) Local partnerships.--
                    (A) In general.--A local partnership referred to in 
                paragraph (1) shall be established by the local chief 
                elected official, in accordance with subparagraphs (B) 
                and (C), and shall consist of individuals representing 
                business, industry, and labor, local secondary schools, 
                local postsecondary education institutions, local adult 
                education providers, local elected officials, 
                rehabilitation agencies and organizations, community-
                based organizations, and veterans, within the 
                appropriate substate area.
                    (B) Multiple jurisdictions.--In any case in which 
                there are 2 or more units of general local government 
                in the substate area involved, the chief elected 
                official of each such unit shall appoint members of the 
                local partnership in accordance with an agreement 
                entered into by such chief elected officials. In the 
                absence of such an agreement, such appointments shall 
                be made by the Governor of the State involved from the 
                individuals nominated or recommended by the chief 
                elected officials.
                    (C) Selection of business and industry 
                representatives.--Individuals representing business and 
                industry in the local partnership shall be appointed by 
                the chief elected official from nominations submitted 
                by business organizations in the substate area 
                involved. Such individuals shall reasonably represent 
                the industrial and demographic composition of the 
                business community. Where possible, at least 50 percent 
                of such business and industry representatives shall be 
                representatives of small business.
            (3) Business and industry involvement.--The business and 
        industry representatives shall have a lead role in the design, 
        management, and evaluation of the activities to be carried out 
        in the substate area under the local agreement.
            (4) Contents.--
                    (A) State goals and state benchmarks.--Such an 
                agreement shall include a description of the manner in 
                which funds allocated to a substate area in accordance 
                with section 111(a) or in accordance with sections 
                111(b), 112, 113, and 114 will be spent to meet the 
                State goals and reach the State benchmarks in a manner 
                that reflects local labor market conditions.
                    (B) Local responsibilities.--The agreement shall 
                also include a description of the responsibilities of 
                the local partnership (or, where established, local 
                workforce development board described in subsection 
                (b)) for carrying out workforce development activities 
                under this subtitle.
                    (C) Collaboration.--The agreement shall also 
                include information that demonstrates the manner in 
                which--
                            (i) the Governor; and
                            (ii) the local partnership (or, where 
                        established, the local workforce development 
                        board);
                collaborated in reaching the agreement.
            (5) Failure to reach agreement.--If, after a reasonable 
        effort, the Governor is unable to enter into an agreement with 
        the local partnership (or, where established, the local 
        workforce development board), the Governor shall notify the 
        partnership or board, as appropriate, and provide the 
        partnership or board, as appropriate, with the opportunity to 
        comment, not later than 30 days after the date of the 
        notification, on the manner in which funds allocated to such 
        substate area will be spent to meet the State goals and reach 
        the State benchmarks.
            (6) Exception.--A State that indicates in the State plan 
        described in section 104 that the State will be treated as a 
        substate area for purposes of the application of this subtitle 
        shall not be subject to this subsection.
    (b) Local Workforce Development Boards.--
            (1) In general.--Each State may facilitate the 
        establishment of local workforce development boards in each 
        substate area to set policy and provide oversight over the 
        workforce development activities in the substate area.
            (2) Membership.--
                    (A) State criteria.--The Governor shall establish 
                criteria for use by local chief elected officials in 
                each substate area in the selection of members of the 
                local workforce development boards, in accordance with 
                the requirements of subparagraph (B).
                    (B) Representation requirement.--Such criteria 
                shall require, at a minimum, that a local workforce 
                development board consist of--
                            (i) representatives of business and 
                        industry in the substate area, who shall 
                        constitute a majority of the board;
                            (ii) representatives of labor, workers, and 
                        community-based organizations, who shall 
                        constitute not less than 25 percent of the 
                        members of the board;
                            (iii) representatives of local secondary 
                        schools, postsecondary education institutions, 
                        and adult education providers;
                            (iv) representatives of veterans; and
                            (v) 1 or more individuals with 
                        disabilities, or their representatives.
                    (C) Chair.--Each local workforce development board 
                shall select a chairperson from among the members of 
                the board who are representatives of business and 
                industry.
            (3) Conflict of interest.--No member of a local workforce 
        development board shall vote on a matter relating to the 
        provision of services by the member (or any organization that 
        the member directly represents) or vote on a matter that would 
        provide direct financial benefit to such member or the 
        immediate family of such member or engage in any other activity 
        determined by the Governor to constitute a conflict of 
        interest.
            (4) Functions.--The functions of the local workforce 
        development board shall include--
                    (A) submitting to the Governor a single 
                comprehensive 3-year strategic plan for workforce 
                development activities in the substate area that 
                includes information--
                            (i) identifying the workforce development 
                        needs of local industries, students, 
                        jobseekers, and workers;
                            (ii) identifying the workforce development 
                        activities to be carried out in the substate 
                        area with funds received through the allotment 
                        made to the State under section 102, to meet 
                        the State goals and reach the State benchmarks;
                            (iii) identifying how the local workforce 
                        development board will obtain the active and 
                        continuous participation of business, industry, 
                        and labor in the development and continuous 
                        improvement of the workforce development 
                        activities carried out in the substate area; 
                        and
                            (iv) identifying how the local workforce 
                        development board will obtain the active and 
                        continuous participation of secondary school 
                        teachers, secondary school students involved in 
                        workforce education activities carried out 
                        under this subtitle, and parents of such 
                        students, in the development and continuous 
                        improvement of the workforce education 
                        activities carried out in the substate area;
                    (B) entering into local agreements with the 
                Governor as described in subsection (a);
                    (C) overseeing the operations of the one-stop 
                delivery of core services described in section 
                106(a)(2) in the substate area, including the 
                responsibility to--
                            (i) designate local entities to operate the 
                        one-stop delivery in the substate area, 
                        consistent with the criteria referred to in 
                        section 106(a)(2); and
                            (ii) develop and approve the budgets and 
                        annual operating plans of the providers of the 
                        one-stop delivery; and
                    (D) submitting annual reports to the Governor on 
                the progress being made in the substate area toward 
                meeting the State goals and reaching the State 
                benchmarks.
            (5) Consultation.--A local workforce development board that 
        serves a substate area shall conduct the functions described in 
        paragraph (4) in consultation with the chief elected officials 
        in the substate area.
    (c) Economic Development Activities.--A State shall be eligible to 
use not more than 50 percent of the funds made available to the State 
through the flex account for flexible workforce activities to carry out 
economic development activities if--
            (1) the boards described in section 105 and subsection (b) 
        are established in the State;
            (2) in the case of a State that indicates in the State plan 
        described in section 104 that the State will be treated as a 
        substate area for purposes of the application of this subtitle, 
        the board described in section 105 is established in the State; 
        or
            (3) beginning with program year 2000, in the case of a 
        State that elects to offer activities for persons age 18 or 
        older under section 106(a)(6), the State uses the authority of 
        section 106(a)(9) to deliver some or all of such activities 
        through a system of vouchers.

SEC. 119. CONSTRUCTION.

    Nothing in this title shall be construed--
            (1) to prohibit a local educational agency (or a consortium 
        thereof) that receives assistance under section 112, from 
        working with an eligible entity (or consortium thereof) that 
        receives assistance under section 113, to carry out secondary 
        school vocational education activities in accordance with this 
        subtitle; or
            (2) to prohibit an eligible entity (or consortium thereof) 
        that receives assistance under section 113, from working with a 
        local educational agency (or consortium thereof) that receives 
        assistance under section 112, to carry out postsecondary and 
        adult vocational education activities in accordance with this 
        subtitle.

                       CHAPTER 3--ADMINISTRATION

SEC. 121. ACCOUNTABILITY.

    (a) Report.--
            (1) In general.--Each State that receives an allotment 
        under section 102 shall annually prepare and submit to the 
        Federal Partnership, a report that states how the State is 
        performing on State benchmarks, and the status and results of 
        any State evaluations specified in subsection (f), that relate 
        to workforce development activities (and workforce preparation 
        activities for at-risk youth) carried out through the statewide 
        system of the State. In preparing the report, the State may 
        include information on such additional benchmarks as the State 
        may establish to meet the State goals.
            (2) Consolidated report.--In lieu of submitting separate 
        reports under paragraph (1) and section 409(a) of the Social 
        Security Act, the State may prepare a consolidated report. Any 
        consolidated report prepared under this paragraph shall contain 
        the information described in paragraph (1) and subsections (a) 
        through (h) of section 409 of the Social Security Act. The 
        State shall submit any consolidated report prepared under this 
        paragraph to the Federal Partnership, the Secretary of 
        Agriculture, and the Secretary of Health and Human Services, on 
        the dates specified in section 409(a) of the Social Security 
        Act.
    (b) Goals.--
            (1) Meaningful employment.--Each statewide system supported 
        by an allotment under section 102 shall be designed to meet the 
        goal of assisting participants in obtaining meaningful 
        unsubsidized employment opportunities in the State.
            (2) Education.--Each statewide system supported by an 
        allotment under section 102 shall be designed to meet the goal 
        of enhancing and developing more fully the academic, 
        occupational, and literacy skills of all segments of the 
        population of the State.
    (c) Benchmarks.--
            (1) Meaningful employment.--To be eligible to receive an 
        allotment under section 102, a State shall develop, in 
        accordance with paragraph (5), and identify in the State plan 
        of the State, proposed quantifiable benchmarks to measure the 
        statewide progress of the State toward meeting the goal 
        described in subsection (b)(1), which shall include, at a 
        minimum, measures of--
                    (A) placement in unsubsidized employment of 
                participants;
                    (B) retention of the participants in such 
                employment (12 months after completion of the 
                participation); and
                    (C) increased earnings for the participants.
            (2) Education.--To be eligible to receive an allotment 
        under section 102, a State shall develop, in accordance with 
        paragraph (5), and identify in the State plan of the State, 
        proposed quantifiable benchmarks to measure the statewide 
        progress of the State toward meeting the goal described in 
        subsection (b)(2), which shall include, at a minimum, measures 
        of--
                    (A) student mastery of academic knowledge and work 
                readiness skills;
                    (B) student mastery of occupational and industry-
                recognized skills according to skill proficiencies for 
                students in career preparation programs;
                    (C) placement in, retention in, and completion of 
                secondary education (as determined under State law) and 
                postsecondary education, and placement and retention in 
                employment and in military service; and
                    (D) mastery of the literacy, knowledge, and skills 
                adults need to be productive and responsible citizens 
                and to become more actively involved in the education 
                of their children.
            (3) Populations.--To be eligible to receive an allotment 
        under section 102, a State shall develop, in accordance with 
        paragraph (5), and identify in the State plan of the State, 
        proposed quantifiable benchmarks to measure progress toward 
        meeting the goals described in subsection (b) for populations 
        including, at a minimum--
                    (A) welfare recipients;
                    (B) individuals with disabilities;
                    (C) at-risk youth;
                    (D) dislocated workers; and
                    (E) veterans.
            (4) Special rule.--If a State has developed for all 
        students in the State performance indicators, attainment 
        levels, or assessments for skills according to challenging 
        academic, occupational, or industry-recognized skill 
        proficiencies, the State shall use such performance indicators, 
        attainment levels, or assessments in measuring the progress of 
        all students served under this title in attaining the skills.
            (5) Negotiations.--
                    (A) Initial determination.--On receipt of a State 
                plan submitted under section 104, the Federal 
                Partnership shall, not later than 30 days after the 
                date of the receipt, determine--
                            (i) how the proposed State benchmarks 
                        identified by the State in the State plan 
                        compare to the model benchmarks established by 
                        the Federal Partnership under section 
                        182(b)(2);
                            (ii) how the proposed State benchmarks 
                        compare with State benchmarks proposed by other 
                        States in their State plans; and
                            (iii) whether the proposed State 
                        benchmarks, taken as a whole, are sufficient--
                                    (I) to enable the State to meet the 
                                State goals; and
                                    (II) to make the State eligible for 
                                an incentive grant under section 
                                122(a).
                    (B) Notification.--The Federal Partnership shall 
                immediately notify the State of the determinations 
                referred to in subparagraph (A). If the Federal 
                Partnership determines that the proposed State 
                benchmarks are not sufficient to make the State 
                eligible for an incentive grant under section 122(a), 
                the Federal Partnership shall provide the State with 
                guidance on the steps the State may take to allow the 
                State to become eligible for the grant.
                    (C) Revision.--Not later than 30 days after the 
                date of receipt of the notification referred to in 
                subparagraph (B), the State may revise some or all of 
                the State benchmarks identified in the State plan in 
                order to become eligible for the incentive grant or 
                provide reasons why the State benchmarks should be 
                sufficient to make the State eligible for the incentive 
                grant.
                    (D) Determination.--After reviewing any revised 
                State benchmarks or information submitted by the State 
                in accordance with subparagraph (C), the Federal 
                Partnership shall make a determination on the 
                eligibility of the State for the incentive grant, as 
                described in paragraph (6), and provide advice to the 
                Secretary of Labor and the Secretary of Education. The 
                Secretary of Labor and the Secretary of Education, 
                acting jointly on the advice of the Federal 
                Partnership, may award a grant to the State under 
                section 122(a).
            (6) Incentive grants.--Each State that sets high benchmarks 
        under paragraph (1), (2), or (3) and reaches or exceeds the 
        benchmarks, as determined by the Federal Partnership, shall be 
        eligible to receive an incentive grant under section 122(a).
            (7) Sanctions.--A State that has failed to demonstrate 
        sufficient progress toward reaching the State benchmarks 
        established under this subsection for the 3 years covered by a 
        State plan described in section 104, as determined by the 
        Federal Partnership, may be subject to sanctions under section 
        122(b).
    (d) Job Placement Accountability System.--
            (1) In general.--Each State that receives an allotment 
        under section 102 shall establish a job placement 
        accountability system, which will provide a uniform set of data 
        to track the progress of the State toward reaching the State 
        benchmarks.
            (2) Data.--
                    (A) In general.--In order to maintain data relating 
                to the measures described in subsection (c)(1), each 
                such State shall establish a job placement 
                accountability system using quarterly wage records 
                available through the unemployment insurance system. 
                The State agency or entity within the State responsible 
                for labor market and occupational information, as 
                designated in section 183(c)(1)(B), in conjunction with 
                the Commissioner of Labor Statistics, shall maintain 
                the job placement accountability system and match 
                information on participants served by the statewide 
                systems of the State and other States with quarterly 
                employment and earnings records.
                    (B) Reimbursement.--Each local entity that carries 
                out workforce employment activities or workforce 
                education activities and that receives funds under this 
                title shall provide information regarding the social 
                security numbers of the participants served by the 
                entity and such other information as the State may 
                require to the State agency or entity within the State 
                responsible for labor market and occupational 
                information, as designated in section 183(c)(1)(B).
                    (C) Confidentiality.--The State agency or entity 
                within the State responsible for labor market and 
                occupational information, as designated in section 
                183(c)(1)(B), shall protect the confidentiality of 
                information obtained through the job placement 
                accountability system through the use of recognized 
                security procedures.
    (e) Individual Accountability.--Each State that receives an 
allotment under section 102 shall devise and implement procedures to 
provide, in a timely manner, information on participants in activities 
carried out through the statewide system who are participating as a 
condition of receiving welfare assistance. The procedures shall require 
that the State provide the information to the State and local agencies 
carrying out the programs through which the welfare assistance is 
provided, in a manner that ensures that the agencies can monitor 
compliance with the conditions regarding the receipt of the welfare 
assistance.
    (f) Evaluation of State Programs.--
            (1) In general.--Each State that receives an allotment 
        under section 102 shall conduct ongoing evaluations of 
        workforce employment activities, flexible workforce activities, 
        and activities provided through Job Corps centers, carried out 
        in the State under this title.
            (2) Methods.--The State shall--
                    (A) conduct such evaluations through controlled 
                experiments using experimental and control groups 
                chosen by random assignment;
                    (B) in conducting the evaluations, determine, at a 
                minimum, whether job training and job placement 
                services provided through the activities described in 
                paragraph (1) effectively raise the hourly wage rates 
                of individuals receiving the services through such 
                activities; and
                    (C) conduct at least 1 such evaluation at any given 
                time during any period in which the State is receiving 
                funding under this title for such activities.

SEC. 122. INCENTIVES AND SANCTIONS.

    (a) Incentives.--
            (1) In general.--The Secretary of Labor and the Secretary 
        of Education, acting jointly on the advice of the Federal 
        Partnership, may award incentive grants of not more than 
        $15,000,000 per program year to a State that--
                    (A) reaches or exceeds State benchmarks established 
                under section 121(c), with an emphasis on the 
                benchmarks established under section 121(c)(3), in 
                accordance with section 121(c)(6);
                    (B) demonstrates to the Federal Partnership that 
                the State has made substantial reductions in the number 
                of adult recipients of assistance, as defined in 
                section 102(b)(1)(A), resulting from increased 
                placement of such adult recipients in unsubsidized 
                employment; or
                    (C) in the case of a State that elects to offer 
                activities for persons age 18 or older under section 
                106(a)(6), uses the authority of section 106(a)(9) to 
                deliver some or all of such activities through a system 
                of vouchers.
            (2) Use of funds.--A State that receives such a grant may 
        use the funds made available through the grant to carry out any 
        workforce development activities authorized under this title.
    (b) Sanctions.--
            (1) Failure to demonstrate sufficient progress.--
                    (A) Finding.--If the Federal Partnership 
                determines, after notice and an opportunity for a 
                hearing, that a State has failed to demonstrate 
                sufficient progress toward reaching the State 
                benchmarks established under section 121(c) for the 3 
                years covered by a State plan described in section 104, 
                the Federal Partnership shall--
                            (i) make a finding regarding whether the 
                        failure is attributable to the workforce 
                        employment activities, or workforce education 
                        activities, of the State; and
                            (ii) provide advice to the Secretary of 
                        Labor and the Secretary of Education.
                    (B) Reductions.--
                            (i) Failure attributable to both 
                        categories.--Except as provided in subparagraph 
                        (C), if the Federal Partnership finds that the 
                        failure referred to in subparagraph (A) is 
                        attributable to both categories referred to in 
                        subparagraph (A)(i), the Secretary of Labor and 
                        the Secretary of Education, acting jointly on 
                        the advice of the Federal Partnership, may 
                        reduce the allotment of the State under section 
                        102 by not more than 10 percent per program 
                        year for not more than 3 years.
                            (ii) Failure attributable to one 
                        category.--Unless the Governor of the State has 
                        developed an integrated State plan under 
                        section 104(b)(5), if the Federal Partnership 
                        finds that the failure referred to in 
                        subparagraph (A) is attributable to 1 category 
                        of activities referred to in subparagraph 
                        (A)(i) but not to the remaining category, the 
                        Secretary of Labor and the Secretary of 
                        Education, acting jointly on the advice of the 
                        Federal Partnership, may decide to reduce by 10 
                        percent only the portion of the allotment for 
                        the category of activities to which the failure 
                        is attributable.
                    (C) Combination and reduction.--Notwithstanding 
                sections 103 and 111, if the Federal Partnership finds 
                that the Governor of the State has developed an 
                integrated State plan under section 104(b)(5), and the 
                failure referred to in subparagraph (A) is attributable 
                to 1 category of activities referred to in subparagraph 
                (A)(i) but not to the remaining category, the Secretary 
                of Labor and the Secretary of Education, acting jointly 
                on the advice of the Federal Partnership, in lieu of 
                making a reduction under subparagraph (B), shall--
                            (i) reduce the portion of the allotment for 
                        the category of activities to which the failure 
                        is attributable by a percentage determined by 
                        the Secretaries, but not to exceed 5 percent of 
                        such portion, for a period determined by the 
                        Secretaries;
                            (ii) require the State to combine, for such 
                        period--
                                    (I) an additional percentage, equal 
                                to the percentage determined under 
                                clause (i), of the funds made available 
                                through such portion; and
                                    (II) the funds made available to 
                                the State under this subtitle for the 
                                remaining category; and
                            (iii) require the State to expend the 
                        combined funds in accordance with the 
                        integrated State plan of the State referred to 
                        in section 104(b)(5) to carry out the remaining 
                        category of activities.
                    (D) Construction.--Notwithstanding any other 
                provision of this title, funds referred to in 
                subparagraph (C)(ii)(I) that are combined under 
                subparagraph (C) shall be considered--
                            (i) to be made available under section 
                        103(a)(1) if the combined funds are required to 
                        be expended for workforce employment 
                        activities; and
                            (ii) to be made available under section 
                        103(a)(2) if the combined funds are required to 
                        be expended for workforce education activities.
                    (E) Definition.--As used in this paragraph, the 
                term ``portion of the allotment''--
                            (i) used with respect to workforce 
                        employment activities, means the funds made 
                        available under paragraph (1) or (3) of section 
                        103(a) for workforce employment activities 
                        (less any portion of such funds made available 
                        under section 6 of the Wagner-Peyser Act (29 
                        U.S.C. 49e)); and
                            (ii) used with respect to workforce 
                        education activities, means the funds made 
                        available under paragraph (2) or (3) of section 
                        103(a) for workforce education activities.
            (2) Expenditure contrary to title.--If the Governor of a 
        State determines that a local entity that carries out workforce 
        employment activities in a substate area of the State has 
        expended funds made available under this title in a manner 
        contrary to the objectives of this title, and such expenditures 
        do not constitute fraudulent activity, the Governor may deduct 
        an amount equal to the funds from a subsequent program year 
        allocation to the substate area.
    (c) Funds Resulting From Reduced Allotments.--The Secretary of 
Labor and the Secretary of Education, acting jointly on the advice of 
the Federal Partnership, may use an amount retained as a result of a 
reduction in an allotment made under subsection (b)(1) to award an 
incentive grant under subsection (a).

SEC. 123. UNEMPLOYMENT TRUST FUND.

    (a) In General.--Section 901(c) of the Social Security Act (42 
U.S.C. 1101(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)(iii), by striking 
                ``carrying into effect section 4103'' and inserting 
                ``carrying out the activities described in sections 
                4103, 4103A, 4104, and 4104A''; and
                    (B) in subparagraph (B), in the matter preceding 
                clause (i), by striking ``Department of Labor'' and 
                inserting ``Department of Labor or the Workforce 
                Development Partnership, as appropriate,''; and
            (2) in the first sentence of paragraph (4), by striking 
        ``the Department of Labor'' and inserting ``the Workforce 
        Development Partnership''.
    (b) Effective Date.--The amendments made by this section shall take 
effect July 1, 1998.

SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this title (other than subtitle B) $5,884,000,000 (which amount 
shall include the Federal funds made available to carry out the Wagner-
Peyser Act (29 U.S.C. 49 et seq.)) for each of fiscal years 1998 
through 2001.
    (b) Reservations.--Of the amount appropriated under subsection 
(a)--
            (1) 90.75 percent shall be reserved for making allotments 
        under section 102;
            (2) 1.25 percent shall be reserved for carrying out section 
        107;
            (3) 1.25 percent shall be reserved for carrying out section 
        108;
            (4) 0.2 percent shall be reserved for carrying out section 
        109;
            (5) 5.0 percent shall be reserved for making incentive 
        grants under section 122(a), for making national discretionary 
        grants under section 184, and for the administration of this 
        title;
            (6) 1.4 percent shall be reserved for carrying out section 
        183; and
            (7) 0.15 percent shall be reserved for carrying out 
        sections 185 and 186 and the National Literacy Act of 1991 (20 
        U.S.C. 1201 note).
    (c) Program Year.--
            (1) In general.--Appropriations for any fiscal year for 
        programs and activities under this title shall be available for 
        obligation only on the basis of a program year. The program 
        year shall begin on July 1 in the fiscal year for which the 
        appropriation is made.
            (2) Administration.--Funds obligated for any program year 
        may be expended by each recipient during the program year and 
        the 2 succeeding program years and no amount shall be 
        deobligated on account of a rate of expenditure that is 
        consistent with the provisions of the State plan specified in 
        section 104 that relate to workforce employment activities.

SEC. 125. EFFECTIVE DATE.

    This subtitle shall take effect July 1, 1998.

 Subtitle B--Job Corps and Other Workforce Preparation Activities for 
                             At-Risk Youth

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 131. DEFINITIONS.

    As used in this subtitle:
            (1) At-risk youth.--The term ``at-risk youth'' means an 
        individual who--
                    (A) is not less than age 15 and not more than age 
                24;
                    (B) is low-income (as defined in section 113(e));
                    (C) is 1 or more of the following:
                            (i) Basic skills deficient.
                            (ii) A school dropout.
                            (iii) Homeless or a runaway.
                            (iv) Pregnant or parenting.
                            (v) An individual who requires additional 
                        education, training, or intensive counseling 
                        and related assistance, in order to secure and 
                        hold employment or participate successfully in 
                        regular schoolwork.
            (2) Enrollee.--The term ``enrollee'' means an individual 
        enrolled in the Job Corps.
            (3) Governor.--The term ``Governor'' means the chief 
        executive officer of a State.
            (4) Job corps.--The term ``Job Corps'' means the Job Corps 
        described in section 142.
            (5) Job corps center.--The term ``Job Corps center'' means 
        a center described in section 142.
            (6) Operator.--The term ``operator'' means an entity 
        selected under this chapter to operate a Job Corps center.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.

                          CHAPTER 2--JOB CORPS

SEC. 141. PURPOSES.

    The purposes of this chapter are--
            (1) to maintain a national Job Corps program, carried out 
        in partnership with States and communities, to assist at-risk 
        youth who need and can benefit from an unusually intensive 
        program, operated in a group setting, to become more 
        responsible, employable, and productive citizens;
            (2) to set forth standards and procedures for selecting 
        individuals as enrollees in the Job Corps;
            (3) to authorize the establishment of Job Corps centers in 
        which enrollees will participate in intensive programs of 
        workforce development activities; and
            (4) to prescribe various other powers, duties, and 
        responsibilities incident to the operation and continuing 
        development of the Job Corps.

SEC. 142. ESTABLISHMENT.

    There shall be established in the Department of Labor a Job Corps 
program, to carry out, in conjunction with the activities carried out 
by the National Board as specified in section 156, activities described 
in this chapter for individuals enrolled in the Job Corps and assigned 
to a center.

SEC. 143. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

    To be eligible to become an enrollee, an individual shall be an at-
risk youth.

SEC. 144. SCREENING AND SELECTION OF APPLICANTS.

    (a) Standards and Procedures.--
            (1) In general.--The Secretary shall prescribe specific 
        standards and procedures for the screening and selection of 
        applicants for the Job Corps, after considering recommendations 
        from the Governors, State workforce development boards 
        established under section 105, local partnerships and local 
        workforce development boards established under section 118(b), 
        and other interested parties.
            (2) Methods.--In prescribing standards and procedures under 
        paragraph (1) for the screening and selection of Job Corps 
        applicants, the Secretary shall--
                    (A) require enrollees to take drug tests within 30 
                days of enrollment in the Job Corps;
                    (B) allocate, where necessary, additional resources 
                to increase the applicant pool;
                    (C) establish standards for outreach to and 
                screening of Job Corps applicants;
                    (D) where appropriate, take measures to improve the 
                professional capability of the individuals conducting 
                such screening; and
                    (E) require Job Corps applicants to pass background 
                checks, conducted in accordance with procedures 
                established by the Secretary.
            (3) Implementation.--To the extent practicable, the 
        standards and procedures shall be implemented through 
        arrangements with--
                    (A) centers providing the one-stop delivery of core 
                services described in section 106(a)(2);
                    (B) agencies and organizations such as community 
                action agencies, professional groups, and labor 
                organizations; and
                    (C) agencies and individuals that have contact with 
                youth over substantial periods of time and are able to 
                offer reliable information about the needs and problems 
                of the youth.
            (4) Consultation.--The standards and procedures shall 
        provide for necessary consultation with individuals and 
        organizations, including court, probation, parole, law 
        enforcement, education, welfare, and medical authorities and 
        advisers.
    (b) Special Limitations.--No individual shall be selected as an 
enrollee unless the individual or organization implementing the 
standards and procedures determines that--
            (1) there is a reasonable expectation that the individual 
        considered for selection can participate successfully in group 
        situations and activities, is not likely to engage in behavior 
        that would prevent other enrollees from receiving the benefit 
        of the program or be incompatible with the maintenance of sound 
        discipline and satisfactory relationships between the Job Corps 
        center to which the individual might be assigned and 
        surrounding communities; and
            (2) the individual manifests a basic understanding of both 
        the rules to which the individual will be subject and of the 
        consequences of failure to observe the rules.

SEC. 145. ENROLLMENT AND ASSIGNMENT.

    (a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of 
obligations under the Military Selective Service Act (50 U.S.C. App. 
451 et seq.).
    (b) Assignment.--After the Secretary has determined that an 
enrollee is to be assigned to a Job Corps center, the enrollee shall be 
assigned to the center that is closest to the residence of the 
enrollee, except that the Secretary may waive this requirement for good 
cause, including to ensure an equitable opportunity for at-risk youth 
from various sections of the Nation to participate in the Job Corps 
program, to prevent undue delays in assignment of an enrollee, to 
adequately meet the educational or other needs of an enrollee, and for 
efficiency and economy in the operation of the program.
    (c) Period of Enrollment.--No individual may be enrolled in the Job 
Corps for more than 2 years, except--
            (1) in a case in which completion of an advanced career 
        training program under section 147(d) would require an 
        individual to participate for more than 2 years; or
            (2) as the Secretary may authorize in a special case.

SEC. 146. JOB CORPS CENTERS.

    (a) Operators and Service Providers.--
            (1) Eligible entities.--The Secretary shall enter into an 
        agreement with a Federal, State, or local agency, which may be 
        a State board or agency that operates or wishes to develop an 
        area vocational education school facility or residential 
        vocational school, or with a private organization, for the 
        operation of each Job Corps center. The Secretary shall enter 
        into an agreement with an appropriate entity to provide 
        services for a Job Corps center.
            (2) Selection process.--Except as provided in subsections 
        (c) and (d), the Secretary shall select an entity to operate a 
        Job Corps center on a competitive basis, after reviewing the 
        operating plans described in section 149. In selecting a 
        private or public entity to serve as an operator for a Job 
        Corps Center, the Secretary shall, at the request of the 
        Governor of the State in which the center is located, convene 
        and obtain the recommendation of a selection panel described in 
        section 151(b). In selecting an entity to serve as an operator 
        or to provide services for a Job Corps center, the Secretary 
        shall take into consideration the previous performance of the 
        entity, if any, relating to operating or providing services for 
        a Job Corps center.
    (b) Character and Activities.--Job Corps centers may be residential 
or nonresidential in character, and shall be designed and operated so 
as to provide enrollees, in a well-supervised setting, with access to 
activities described in section 147. In any year, no more than 20 
percent of the individuals enrolled in the Job Corps may be 
nonresidential participants in the Job Corps.
    (c) Civilian Conservation Centers.--
            (1) In general.--The Job Corps centers may include Civilian 
        Conservation Centers operated under agreements with the 
        Secretary of Agriculture or the Secretary of the Interior, 
        located primarily in rural areas, which shall provide, in 
        addition to other training and assistance, programs of work 
        experience to conserve, develop, or manage public natural 
        resources or public recreational areas or to develop community 
        projects in the public interest.
            (2) Selection process.--The Secretary may select an entity 
        to operate a Civilian Conservation Center on a competitive 
        basis, as provided in subsection (a), if the center fails to 
        meet such national performance standards as the Secretary shall 
        establish.
    (d) Indian Tribes.--
            (1) Definition.--As used in this subsection:
                    (A) Indian.-- The term ``Indian'' means a person 
                who is a member of an Indian tribe.
                    (B) Indian tribe.--The term ``Indian tribe'' means 
                any Indian tribe, band, nation, or other organized 
                group or community, which is recognized as eligible for 
                the special programs and services provided by the 
                United States to Indians because of their status as 
                Indians.
            (2) General authority.--The Secretary may enter into 
        agreements with Indian tribes to operate Job Corps centers for 
        Indians.

SEC. 147. PROGRAM ACTIVITIES.

    (a) Activities Provided Through Job Corps Centers.--Each Job Corps 
center shall provide enrollees assigned to the center with access to 
activities described in section 106(a)(2)(B), and such other workforce 
development activities as may be appropriate to meet the needs of the 
enrollees, including providing work-based learning throughout the 
enrollment of the enrollees and assisting the enrollees in obtaining 
meaningful unsubsidized employment, participating successfully in 
secondary education or postsecondary education programs, enrolling in 
other suitable training programs, or satisfying Armed Forces 
requirements, on completion of their enrollment.
    (b) Arrangements.--The Secretary shall arrange for enrollees 
assigned to Job Corps centers to receive workforce development 
activities through or in coordination with the statewide system, 
including workforce development activities provided through local 
public or private educational agencies, vocational educational 
institutions, or technical institutes.
    (c) Job Placement Accountability.--The Secretary shall establish a 
job placement accountability system for Job Corps centers, and 
coordinate the activities carried out through the system with 
activities carried out through the job placement accountability systems 
described in section 121(d) for the States in which Job Corps centers 
are located.
    (d) Advanced Career Training Programs.--
            (1) In general.--The Secretary may arrange for programs of 
        advanced career training for selected enrollees in which the 
        enrollees may continue to participate for a period of not to 
        exceed 1 year in addition to the period of participation to 
        which the enrollees would otherwise be limited.
            (2) Postsecondary educational institutions.--The advanced 
        career training may be provided through a postsecondary 
        educational institution for an enrollee who has obtained a 
        secondary school diploma or its recognized equivalent, has 
        demonstrated commitment and capacity in previous Job Corps 
        participation, and has an identified occupational goal.
            (3) Company-sponsored training programs.--The Secretary may 
        enter into contracts with appropriate entities to provide the 
        advanced career training through intensive training in company-
        sponsored training programs, combined with internships in work 
        settings.
            (4) Benefits.--
                    (A) In general.--During the period of participation 
                in an advanced career training program, an enrollee 
                shall be eligible for full Job Corps benefits, or a 
                monthly stipend equal to the average value of the 
                residential support, food, allowances, and other 
                benefits provided to enrollees assigned to residential 
                Job Corps centers.
                    (B) Calculation.--The total amount for which an 
                enrollee shall be eligible under subparagraph (A) shall 
                be reduced by the amount of any scholarship or other 
                educational grant assistance received by such enrollee 
                for advanced career training.
            (5) Demonstration.--Each year, any operator seeking to 
        enroll additional enrollees in an advanced career training 
        program shall demonstrate that participants in such program 
        have achieved a reasonable rate of completion and placement in 
        training-related jobs before the operator may carry out such 
        additional enrollment.

SEC. 148. SUPPORT.

    The Secretary shall provide enrollees assigned to Job Corps centers 
with such personal allowances, including readjustment allowances, as 
the Secretary may determine to be necessary or appropriate to meet the 
needs of the enrollees.

SEC. 149. OPERATING PLAN.

    (a) In General.--To be eligible to operate a Job Corps center, an 
entity shall prepare and submit an operating plan to the Secretary for 
approval. Prior to submitting the plan to the Secretary, the entity 
shall submit the plan to the Governor of the State in which the center 
is located for review and comment. The entity shall submit any comments 
prepared by the Governor on the plan to the Secretary with the plan. 
Such plan shall include, at a minimum, information indicating--
            (1) in quantifiable terms, the extent to which the center 
        will contribute to the achievement of the proposed State goals 
        and State benchmarks identified in the State plan submitted 
        under section 104 for the State in which the center is located;
            (2) the extent to which workforce employment activities and 
        workforce education activities delivered through the Job Corps 
        center are directly linked to the workforce development needs 
        of the region in which the center is located;
            (3) an implementation strategy to ensure that all enrollees 
        assigned to the Job Corps center will have access to services 
        through the one-stop delivery of core services described in 
        section 106(a)(2) by the State; and
            (4) an implementation strategy to ensure that the curricula 
        of all such enrollees is integrated into the school-to-work 
        activities of the State, including work-based learning, work 
        experience, and career-building activities, and that such 
        enrollees have the opportunity to obtain secondary school 
        diplomas or their recognized equivalent.
    (b) Approval.--The Secretary shall not approve an operating plan 
described in subsection (a) for a center if the Secretary determines 
that the activities proposed to be carried out through the center are 
not sufficiently integrated with the activities carried out through the 
statewide system of the State in which the center is located.

SEC. 150. STANDARDS OF CONDUCT.

    (a) Provision and Enforcement.--The Secretary shall provide, and 
directors of Job Corps center shall stringently enforce, standards of 
conduct within the centers. Such standards of conduct shall include 
provisions forbidding the actions described in subsection (b)(2)(A).
    (b) Disciplinary Measures.--
            (1) In general.--To promote the proper moral and 
        disciplinary conditions in the Job Corps, the directors of Job 
        Corps centers shall take appropriate disciplinary measures 
        against enrollees. If such a director determines that an 
        enrollee has committed a violation of the standards of conduct, 
        the director shall dismiss the enrollee from the Job Corps if 
        the director determines that the retention of the enrollee in 
        the Job Corps will jeopardize the enforcement of such standards 
        or diminish the opportunities of other enrollees.
            (2) Zero tolerance policy.--
                    (A) Guidelines.--The Secretary shall adopt 
                guidelines establishing a zero tolerance policy for an 
                act of violence, for use, sale, or possession of a 
                controlled substance, for abuse of alcohol, or for 
                other illegal or disruptive activity.
                    (B) Definitions.--As used in this paragraph:
                            (i) Controlled substance.--The term 
                        ``controlled substance'' has the meaning given 
                        the term in section 102 of the Controlled 
                        Substances Act (21 U.S.C. 802).
                            (ii) Zero tolerance policy.--The term 
                        ``zero tolerance policy'' means a policy under 
                        which an enrollee shall be automatically 
                        dismissed from the Job Corps after a 
                        determination by the director that the enrollee 
                        has carried out an action described in 
                        subparagraph (A).
    (c) Appeal.--A disciplinary measure taken by a director under this 
section shall be subject to expeditious appeal in accordance with 
procedures established by the Secretary.

SEC. 151. COMMUNITY PARTICIPATION.

    (a) Activities.--The Secretary shall encourage and cooperate in 
activities to establish a mutually beneficial relationship between Job 
Corps centers in the State and nearby communities. The activities shall 
include the use of any local partnerships or local workforce 
development boards established in the State under section 118(b) to 
provide a mechanism for joint discussion of common problems and for 
planning programs of mutual interest.
    (b) Selection Panels.--The Governor may recommend individuals to 
serve on a selection panel convened by the Secretary to provide 
recommendations to the Secretary regarding any competitive selection of 
an operator for a center in the State. The panel shall have not more 
than 7 members. In recommending individuals to serve on the panel, the 
Governor may recommend members of State workforce development boards 
established under section 105, if any, members of any local 
partnerships or local workforce development boards established in the 
State under section 118(b), or other representatives selected by the 
Governor. The Secretary shall select at least 1 individual recommended 
by the Governor.
    (c) Activities.--Each Job Corps center director shall--
            (1) give officials of nearby communities appropriate 
        advance notice of changes in the rules, procedures, or 
        activities of the Job Corps center that may affect or be of 
        interest to the communities;
            (2) afford the communities a meaningful voice in the 
        affairs of the Job Corps center that are of direct concern to 
        the communities, including policies governing the issuance and 
        terms of passes to enrollees; and
            (3) encourage the participation of enrollees in programs 
        for improvement of the communities, with appropriate advance 
        consultation with business, labor, professional, and other 
        interested groups, in the communities.

SEC. 152. COUNSELING AND PLACEMENT.

    The Secretary shall ensure that enrollees assigned to Job Corps 
centers receive academic and vocational counseling and job placement 
services, which shall be provided, to the maximum extent practicable, 
through the delivery of core services described in section 106(a)(2).

SEC. 153. ADVISORY COMMITTEES.

    The Secretary is authorized to make use of advisory committees in 
connection with the operation of the Job Corps program, and the 
operation of Job Corps centers, whenever the Secretary determines that 
the availability of outside advice and counsel on a regular basis would 
be of substantial benefit in identifying and overcoming problems, in 
planning program or center development, or in strengthening 
relationships between the Job Corps and agencies, institutions, or 
groups engaged in related activities.

SEC. 154. APPLICATION OF PROVISIONS OF FEDERAL LAW.

    (a) Enrollees Not Considered To Be Federal Employees.--
            (1) In general.--Except as otherwise provided in this 
        subsection and in section 8143(a) of title 5, United States 
        Code, enrollees shall not be considered to be Federal employees 
        and shall not be subject to the provisions of law relating to 
        Federal employment, including such provisions regarding hours 
        of work, rates of compensation, leave, unemployment 
        compensation, and Federal employee benefits.
            (2) Provisions relating to taxes and social security 
        benefits.--For purposes of the Internal Revenue Code of 1986 
        and title II of the Social Security Act (42 U.S.C. 401 et 
        seq.), enrollees shall be deemed to be employees of the United 
        States and any service performed by an individual as an 
        enrollee shall be deemed to be performed in the employ of the 
        United States.
            (3) Provisions relating to compensation to federal 
        employees for work injuries.--For purposes of subchapter I of 
        chapter 81 of title 5, United States Code (relating to 
        compensation to Federal employees for work injuries), enrollees 
        shall be deemed to be civil employees of the Government of the 
        United States within the meaning of the term ``employee'' as 
        defined in section 8101 of title 5, United States Code, and the 
        provisions of such subchapter shall apply as specified in 
        section 8143(a) of title 5, United States Code.
            (4) Federal tort claims provisions.--For purposes of the 
        Federal tort claims provisions in title 28, United States Code, 
        enrollees shall be considered to be employees of the 
        Government.
    (b) Adjustments and Settlements.--Whenever the Secretary finds a 
claim for damages to a person or property resulting from the operation 
of the Job Corps to be a proper charge against the United States, and 
the claim is not cognizable under section 2672 of title 28, United 
States Code, the Secretary may adjust and settle the claim in an amount 
not exceeding $1,500.
    (c) Personnel of the Uniformed Services.--Personnel of the 
uniformed services who are detailed or assigned to duty in the 
performance of agreements made by the Secretary for the support of the 
Job Corps shall not be counted in computing strength under any law 
limiting the strength of such services or in computing the percentage 
authorized by law for any grade in such services.

SEC. 155. SPECIAL PROVISIONS.

    (a) Enrollment of Women.--The Secretary shall immediately take 
steps to achieve an enrollment of 50 percent women in the Job Corps 
program, consistent with the need to--
            (1) promote efficiency and economy in the operation of the 
        program;
            (2) promote sound administrative practice; and
            (3) meet the socioeconomic, educational, and training needs 
        of the population to be served by the program.
    (b) Studies, Evaluations, Proposals, and Data.--The Secretary shall 
assure that all studies, evaluations, proposals, and data produced or 
developed with Federal funds in the course of carrying out the Job 
Corps program shall become the property of the United States.
    (c) Gross Receipts.--Transactions conducted by a private for-profit 
contractor or a nonprofit contractor in connection with the operation 
by the contractor of a Job Corps center or the provision of services by 
the contractor for a Job Corps center shall not be considered to be 
generating gross receipts. Such a contractor shall not be liable, 
directly or indirectly, to any State or subdivision of a State (nor to 
any person acting on behalf of such a State or subdivision) for any 
gross receipts taxes, business privilege taxes measured by gross 
receipts, or any similar taxes imposed on, or measured by, gross 
receipts in connection with any payments made to or by such contractor 
for operating or providing services for a Job Corps center. Such a 
contractor shall not be liable to any State or subdivision of a State 
to collect or pay any sales, excise, use, or similar tax imposed on the 
sale to or use by such contractor of any property, service, or other 
item in connection with the operation of or provision of services for a 
Job Corps center.
  (d) Management Fee.--The Secretary shall provide each operator or 
entity providing services for a Job Corps center with an equitable and 
negotiated management fee of not less than 1 percent of the contract 
amount.
    (e) Donations.--The Secretary may accept on behalf of the Job Corps 
or individual Job Corps centers charitable donations of cash or other 
assistance, including equipment and materials, if such donations are 
available for appropriate use for the purposes set forth in this 
chapter.

SEC. 156. REVIEW OF JOB CORPS CENTERS.

    (a) National Job Corps Review.--Not later than March 31, 1997, the 
National Board shall conduct a review of the activities carried out 
under part B of title IV of the Job Training Partnership Act (29 U.S.C. 
1691 et seq.), and submit to the appropriate committees of Congress a 
report containing the results of the review, including--
            (1) information on the amount of funds expended for fiscal 
        year 1996 to carry out activities under such part, for each 
        State and for the United States;
            (2) for each Job Corps center funded under such part, 
        information on the amount of funds expended for fiscal year 
        1996 under such part to carry out activities related to the 
        direct operation of the center, including funds expended for 
        student training, outreach or intake activities, meals and 
        lodging, student allowances, medical care, placement or 
        settlement activities, and administration;
            (3) for each Job Corps center, information on the amount of 
        funds expended for fiscal year 1996 under such part through 
        contracts to carry out activities not related to the direct 
        operation of the center, including funds expended for student 
        travel, national outreach, screening, and placement services, 
        national vocational training, and national and regional 
        administrative costs;
            (4) for each Job Corps center, information on the amount of 
        funds expended for fiscal year 1996 under such part for 
        facility construction, rehabilitation, and acquisition 
        expenses;
            (5) information on the amount of funds required to be 
        expended under such part to complete each new or proposed Job 
        Corps center, and to rehabilitate and repair each existing Job 
        Corps center, as of the date of the submission of the report;
            (6) a summary of the information described in paragraphs 
        (2) through (5) for all Job Corps centers;
            (7) an assessment of the need to serve at-risk youth in the 
        Job Corps program, including--
                    (A) a cost-benefit analysis of the residential 
                component of the Job Corps program;
                    (B) the need for residential education and training 
                services for at-risk youth, analyzed for each State and 
                for the United States; and
                    (C) the distribution of training positions in the 
                Job Corps program, as compared to the need for the 
                services described in subparagraph (B), analyzed for 
                each State;
            (8) an overview of the Job Corps program as a whole and an 
        analysis of individual Job Corps centers, including a 5-year 
        performance measurement summary that includes information, 
        analyzed for the program and for each Job Corps center, on--
                    (A) the number of enrollees served;
                    (B) the number of former enrollees who entered 
                employment, including the number of former enrollees 
                placed in a position related to the job training 
                received through the program and the number placed in a 
                position not related to the job training received;
                    (C) the number of former enrollees placed in jobs 
                for 32 hours per week or more;
                    (D) the number of former enrollees who entered 
                employment and were retained in the employment for more 
                than 13 weeks;
                    (E) the number of former enrollees who entered the 
                Armed Forces;
                    (F) the number of former enrollees who completed 
                vocational training, and the rate of such completion, 
                analyzed by vocation;
                    (G) the number of former enrollees who entered 
                postsecondary education;
                    (H) the number and percentage of early dropouts 
                from the Job Corps program;
                    (I) the average wage of former enrollees, including 
                wages from positions described in subparagraph (B);
                    (J) the number of former enrollees who obtained a 
                secondary school diploma or its recognized equivalent;
                    (K) the average level of learning gains for former 
                enrollees; and
                    (L) the number of former enrollees that did not--
                            (i) enter employment or postsecondary 
                        education;
                            (ii) complete a vocational education 
                        program; or
                            (iii) make identifiable learning gains;
            (9) information regarding the performance of all existing 
        Job Corps centers over the 3 years preceding the date of 
        submission of the report; and
            (10) job placement rates for each Job Corps center and each 
        entity providing services to a Job Corps center.
    (b) Recommendations of National Board.--
            (1) Recommendations.--The National Board shall, based on 
        the results of the review described in subsection (a), make 
        recommendations to the Secretary of Labor, regarding 
        improvements in the operation of the Job Corps program, 
        including--
                    (A) closing 5 Job Corps centers by September 30, 
                1997, and 5 additional Job Corps centers by September 
                30, 2000;
                    (B) relocating Job Corps centers described in 
                paragraph (2)(A)(iii) in cases in which facility 
                rehabilitation, renovation, or repair is not cost-
                effective; and
                    (C) taking any other action that would improve the 
                operation of a Job Corps center or any other 
                appropriate action.
            (2) Considerations.--
                    (A) In general.--In determining whether to 
                recommend that the Secretary of Labor close a Job Corps 
                center, the National Board shall consider whether the 
                center--
                            (i) has consistently received low 
                        performance measurement ratings under the 
                        Department of Labor or the Office of Inspector 
                        General Job Corps rating system;
                            (ii) is among the centers that have 
                        experienced the highest number of serious 
                        incidents of violence or criminal activity in 
                        the past 5 years;
                            (iii) is among the centers that require the 
                        largest funding for renovation or repair, as 
                        specified in the Department of Labor Job Corps 
                        Construction/Rehabilitation Funding Needs 
                        Survey, or for rehabilitation or repair, as 
                        reflected in the portion of the review 
                        described in subsection (a)(5);
                            (iv) is among the centers for which the 
                        highest relative or absolute fiscal year 1996 
                        expenditures were made, for any of the 
                        categories of expenditures described in 
                        paragraph (2), (3), or (4) of subsection (a), 
                        as reflected in the review described in 
                        subsection (a);
                            (v) is among the centers with the least 
                        State and local support; or
                            (vi) is among the centers with the lowest 
                        rating on such additional criteria as the 
                        National Board may determine to be appropriate.
                    (B) Coverage of states and regions.--
                Notwithstanding subparagraph (A), the National Board 
                shall not recommend that the Secretary of Labor close 
                the only Job Corps center in a State or a region of the 
                United States.
                    (C) Allowance for new job corps centers.--
                Notwithstanding any other provision of this section, if 
                the planning or construction of a Job Corps center that 
                received Federal funding for fiscal year 1994 or 1995 
                has not been completed by the date of enactment of this 
                Act--
                            (i) the appropriate entity may complete the 
                        planning or construction and begin operation of 
                        the center; and
                            (ii) the National Board shall not evaluate 
                        the center under this title sooner than 3 years 
                        after the first date of operation of the 
                        center.
            (3)  Report.--Not later than June 30, 1997, the National 
        Board shall submit a report to the Secretary of Labor, which 
        shall contain a detailed statement of the findings and 
        conclusions of the National Board resulting from the review 
        described in subsection (a) together with the recommendations 
        described in paragraph (1).
    (c) Implementation of Performance Improvements.--The Secretary 
shall, after reviewing the report submitted under subsection (b)(3), 
implement improvements in the operation of the Job Corps program, 
including closing 10 individual Job Corps centers pursuant to 
subsection (b). In implementing such improvements, the Secretary may 
close such additional Job Corps centers as the Secretary determines to 
be appropriate. Funds saved through the implementation of such 
improvements shall be used to maintain overall Job Corps program 
service levels, improve facilities at existing Job Corps centers, 
relocate Job Corps centers, initiate new Job Corps centers, and make 
other performance improvements in the Job Corps program.
    (d) Report to Congress.--The Secretary shall annually report to 
Congress the information specified in paragraphs (8), (9), and (10) of 
subsection (a) and such additional information relating to the Job 
Corps program as the Secretary may determine to be appropriate.

SEC. 157. ADMINISTRATION.

    The Secretary shall carry out the responsibilities specified for 
the Secretary in this chapter, notwithstanding any other provision of 
this title.

SEC. 158. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this chapter 
shall take effect on July 1, 1998.
    (b) Report.--Section 156 shall take effect on the date of enactment 
of this Act.

  CHAPTER 3--OTHER WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH

SEC. 161. WORKFORCE PREPARATION ACTIVITIES FOR AT-RISK YOUTH.

    (a) In General.--For program year 1998 and each subsequent program 
year, the Secretary of Labor and the Secretary of Education, acting 
jointly on the advice of the Federal Partnership, shall make allotments 
under subsection (c) for States, to enable the Secretary of Labor to 
carry out in the States, and to assist the States in paying for the 
cost of carrying out, workforce preparation activities for at-risk 
youth, as described in this section.
    (b) State Use of Funds.--
            (1) Core job corps activities.--The Secretary of Labor 
        shall use the funds made available for a State through an 
        allotment made under subsection (c)(2) to establish and operate 
        Job Corps centers as described in chapter 2, if a center 
        located in the State received assistance under part B of title 
        IV of the Job Training Partnership Act for fiscal year 1996 and 
        was not closed in accordance with section 156.
            (2) Core work-based learning opportunities.--
                    (A) In general.--The State shall use a portion of 
                the funds made available to the State through an 
                allotment received under subsection (c)(3) to make 
                grants to eligible entities in substate areas, in 
                accordance with the procedures described in subsection 
                (e), to assist the substate areas in organizing summer 
                jobs programs that provide work-based learning 
                opportunities in the private and public sectors that 
                are directly linked to year-round school-to-work 
                activities in the substate areas.
                    (B) Limitation.--No funds provided under this 
                subtitle shall be used to displace employed workers.
            (3) Permissible activities.--The State may use a portion of 
        the funds made available to the State through an allotment 
        received under subsection (c)(3) to--
                    (A) make grants to eligible entities in substate 
                areas, in accordance with the procedures described in 
                subsection (e), to assist each such entity in carrying 
                out alternative programs to assist out-of-school at-
                risk youth in participating in school-to-work 
                activities in the substate area; and
                    (B) carry out other workforce development 
                activities specifically for at-risk youth.
            (4) Laws and procedures applicable to expenditure of state 
        funds.--Any funds received by a State under this subtitle shall 
        be expended only in accordance with the laws and procedures 
        applicable to expenditures of the State's own revenues, subject 
        to the terms and conditions required under this subtitle, 
        particularly this section.
    (c) Allotments and Reservation.--
            (1) In general.--The Secretary of Labor and the Secretary 
        of Education, acting jointly on the advice of the Federal 
        Partnership, shall allot for the State an amount equal to the 
        total of--
                    (A) the amount made available for the State under 
                paragraph (2); and
                    (B) the amounts made available to the State under 
                subparagraphs (C), (D), and (E) of paragraph (4).
            (2) Allotments based on fiscal year 1996 appropriations.--
        Using a portion of the funds appropriated under subsection (h) 
        for a fiscal year, the Secretary of Labor and the Secretary of 
        Education, acting jointly on the advice of the Federal 
        Partnership, shall make available for each State, for the 
        operation of Job Corps centers--
                    (A) the amount that Job Corps centers in the State 
                expended for fiscal year 1996 under part B of title IV 
                of the Job Training Partnership Act to enable the 
                Secretary of Labor to carry out activities described in 
                paragraphs (2) and (3), and to pay for rehabilitation 
                expenses described in paragraph (4), of section 156(a), 
                as determined under such paragraphs; and
                    (B) such amount as may be necessary for the 
                planning, construction, and operation described in 
                section 156(b)(2)(C) for any center described in such 
                section in the State.
            (3) Reservation of funds for indians and native 
        hawaiians.--The Secretary of Labor and the Secretary of 
        Education, acting jointly, may reserve a portion of the funds 
        that are appropriated under subsection (h) for a fiscal year, 
        and that are not made available under paragraph (2), to carry 
        out subsection (g).
            (4) Allotments based on populations.--
                    (A) Definitions.--As used in this paragraph:
                            (i) Individual in poverty.--The term 
                        ``individual in poverty'' means an individual 
                        who--
                                    (I) is not less than age 18;
                                    (II) is not more than age 64; and
                                    (III) is a member of a family (of 1 
                                or more members) with an income at or 
                                below the poverty line.
                            (ii) Poverty line.--The term ``poverty 
                        line'' means the poverty line (as defined by 
                        the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Community Services Block Grant 
                        Act (42 U.S.C. 9902(2)) applicable to a family 
                        of the size involved, using the most recent 
                        available data provided by the Bureau of the 
                        Census, prior to the program year for which the 
                        allotment is made, and applying the definition 
                        of poverty used by the Bureau of the Census in 
                        compiling the 1990 decennial census.
                    (B) Total allotments.--The Secretary of Labor and 
                the Secretary of Education, acting jointly on the 
                advice of the Federal Partnership, shall use the 
                remainder of the funds that are appropriated under 
                subsection (h) for a fiscal year, and that are not made 
                available under paragraph (2) or (3), to make amounts 
                available under this paragraph.
                    (C) Unemployed individuals.--From funds equal to 
                33\1/3\ percent of such remainder, the Secretary of 
                Labor and the Secretary of Education, acting jointly on 
                the advice of the Federal Partnership, shall make 
                available to each State an amount that bears the same 
                relationship to such funds as the average number of 
                unemployed individuals (as determined by the Secretary 
                of Labor for the most recent 24-month period for which 
                data are available, prior to the program year for which 
                the allotment is made) in the State bears to the 
                average number of unemployed individuals (as so 
                determined) in the United States.
                    (D) Individuals in poverty.--From funds equal to 
                33\1/3\ percent of such remainder, the Secretary of 
                Labor and the Secretary of Education, acting jointly on 
                the advice of the Federal Partnership, shall make 
                available to each State an amount that bears the same 
                relationship to such funds as the total number of 
                individuals in poverty in the State bears to the total 
                number of individuals in poverty in the United States.
                    (E) At-risk youth.--From funds equal to 33\1/3\ 
                percent of such remainder, the Secretary of Labor and 
                the Secretary of Education, acting jointly on the 
                advice of the Federal Partnership, shall make available 
                to each State an amount that bears the same 
                relationship to such funds as the total number of at-
                risk youth in the State bears to the total number of 
                at-risk youth in the United States.
    (d) State Plan.--
            (1) Information.--To be eligible to receive an allotment 
        under subsection (c)(3), a State shall include, in the State 
        plan to be submitted under section 104, information describing 
        the allocation within the State of the funds made available 
        through the allotment, and how the programs and activities 
        described in subsection (b) will be carried out to meet the 
        State goals and reach the State benchmarks.
            (2) Limitation.--A State may not be required to include the 
        information described in paragraph (1) in the State plan to be 
        submitted under section 104 to be eligible to receive an 
        allotment under section 102.
    (e) Application.--To be eligible to receive a grant under paragraph 
(2) or (3)(A) of subsection (b) from a State to carry out programs in a 
substate area, an entity shall prepare and submit an application to the 
Governor of the State at such time, in such manner, and containing such 
information as the Governor may require. The Governor may establish 
criteria for reviewing such applications. Any such criteria shall, at a 
minimum, include the extent to which the local partnership (or, where 
established, the local workforce development board described in section 
118(b)) for the substate area approves of such application.
    (f) Within State Distribution.--Of the funds allotted to a State 
under subsection (c)(4) for workforce preparation activities for at-
risk youth for a program year--
            (1) 15 percent shall be reserved by the Governor to carry 
        out such activities through the statewide system; and
            (2) 85 percent shall be distributed to local entities to 
        carry out such activities through the statewide system.
    (g) Financial Assistance for Indians and Native Hawaiians.--The 
Secretary of Labor and the Secretary of Education, acting jointly, may 
use the funds reserved under subsection (c)(3), if any, to make grants 
to, or enter into contracts or cooperative agreements with, the 
entities described in section 107(c)(1) to carry out workforce 
preparation activities for at-risk youth who are Indians (as defined in 
section 107(b)(2)) or Native Hawaiians (as defined in section 
107(b)(4)). To be eligible to receive such a grant, or enter into such 
a contract or cooperative agreement, such an entity shall submit to the 
Federal Partnership an application at such time, in such manner, and 
containing such information as the Federal Partnership may require.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subtitle, $2,100,000,000 for each of 
fiscal years 1998 through 2001.
    (i) Effective Date.--This chapter shall take effect on July 1, 
1998.

                   Subtitle C--Transition Provisions

SEC. 171. WAIVERS.

    (a) Waiver Authority.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, and except as provided in subsection (d), the 
        Secretary may waive any requirement under any provision of law 
        relating to a covered activity, or of any regulation issued 
        under such a provision, for--
                    (A) a State that requests such a waiver and submits 
                an application as described in subsection (b); or
                    (B) a local entity that requests such a waiver and 
                complies with the requirements of subsection (c);
        in order to assist the State or local entity in planning or 
        developing a statewide system or workforce development 
        activities, or workforce preparation activities for at-risk 
        youth, to be carried out through the statewide system.
            (2) Term.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each waiver approved pursuant to this section 
                shall be for a period beginning on the date of the 
                approval and ending on June 30, 1998.
                    (B) Failure to submit interim plan.--If a State 
                receives a waiver under this section and fails to 
                submit an interim plan under section 173 by June 30, 
                1997, the waiver shall be deemed to terminate on 
                September 30, 1997. If a local entity receives a waiver 
                under this section, and the State in which the local 
                entity is located fails to submit an interim plan under 
                section 173 by June 30, 1997, the waiver shall be 
                deemed to terminate on September 30, 1997.
    (b) State Request for Waiver.--
            (1) In general.--A State may submit to the Secretary a 
        request for a waiver of 1 or more requirements referred to in 
        subsection (a). The request may include a request for different 
        waivers with respect to different areas within the State.
            (2) Application.--To be eligible to receive a waiver 
        described in subsection (a), a State shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require, 
        including information--
                    (A) identifying the requirement to be waived and 
                the goal that the State (or the local agency applying 
                to the State under subsection (c)) intends to achieve 
                through the waiver;
                    (B) identifying, and describing the actions that 
                the State will take to remove, similar State 
                requirements;
                    (C) describing the activities to which the waiver 
                will apply, including information on how the activities 
                may be continued, or related to activities carried out, 
                under the statewide system of the State;
                    (D) describing the number and type of persons to be 
                affected by such waiver; and
                    (E) providing evidence of support for the waiver 
                request by the State agencies or officials with 
                jurisdiction over the requirement to be waived.
    (c) Local Entity Request for Waiver.--
            (1) In general.--A local entity that seeks a waiver of such 
        a requirement shall submit to the State a request for the 
        waiver and an application containing sufficient information to 
        enable the State to comply with the requirements of subsection 
        (b)(2). The State shall determine whether to submit a request 
        and an application for a waiver to the Secretary, as provided 
        in subsection (b).
            (2) Time limit.--
                    (A) In general.--The State shall make a 
                determination concerning whether to submit the request 
                and application for a waiver as described in paragraph 
                (1) not later than 30 days after the date on which the 
                State receives the application from the local entity.
                    (B) Direct submission.--
                            (i) In general.--If the State does not make 
                        a determination to submit or does not submit 
                        the request and application within the 30-day 
                        time period specified in subparagraph (A), the 
                        local entity may submit the request and 
                        application to the Secretary.
                            (ii) Requirements.--In submitting such a 
                        request, the local entity shall obtain the 
                        agreement of the State involved to comply with 
                        the requirements of this section that would 
                        otherwise apply to a State submitting a request 
                        for a waiver. In reviewing an application 
                        submitted by a local entity, the Secretary 
                        shall comply with the requirements of this 
                        section that would otherwise apply to the 
                        Secretary with respect to review of such an 
                        application submitted by a State.
    (d) Waivers Not Authorized.--The Secretary may not waive any 
requirement of any provision referred to in subsection (a), or of any 
regulation issued under such provision, relating to--
            (1) the allocation of funds to States, local entities, or 
        individuals;
            (2) public health or safety, civil rights, occupational 
        safety and health, environmental protection, displacement of 
        employees, or fraud and abuse;
            (3) the eligibility of an individual for participation in a 
        covered activity, except in a case in which the State or local 
        entity can demonstrate that the individuals who would have been 
        eligible to participate in such activity without the waiver 
        will participate in a similar covered activity; or
            (4) a required supplementation of funds by the State or a 
        prohibition against the State supplanting such funds.
    (e) Activities.--Subject to subsection (d), the Secretary may 
approve a request for a waiver described in subsection (a) that would 
enable a State or local entity to--
            (1) use the assistance that would otherwise have been used 
        to carry out 2 or more covered activities (if the State or 
        local entity were not using the assistance as described in this 
        section)--
                    (A) to address the high priority needs of 
                unemployed persons and at-risk youth in the appropriate 
                State or community for workforce employment activities 
                or workforce education activities;
                    (B) to improve efficiencies in the delivery of the 
                covered activities; or
                    (C) in the case of overlapping or duplicative 
                activities--
                            (i) by combining the covered activities and 
                        funding the combined activities; or
                            (ii) by eliminating 1 of the covered 
                        activities and increasing the funding to the 
                        remaining covered activity; and
            (2) use the assistance that would otherwise have been used 
        for administrative expenses relating to a covered activity (if 
        the State or local entity were not using the assistance as 
        described in this section) to pay for the cost of developing an 
        interim State plan described in section 173 or a State plan 
        described in section 104.
    (f) Approval or Disapproval.--The Secretary shall approve or 
disapprove any request submitted pursuant to subsection (b) or (c), not 
later than 45 days after the date of the submission, and shall issue a 
decision that shall include the reasons for approving or disapproving 
the request.
    (g) Failure To Act.--If the Secretary fails to approve or 
disapprove the request within the 45-day period described in subsection 
(f), the request shall be deemed to be approved on the day after such 
period ends. If the Secretary subsequently determines that the waiver 
relates to a matter described in subsection (d) and issues a decision 
that includes the reasons for the determination, the waiver shall be 
deemed to terminate on the date of issuance of the decision.
    (h) Definition.--As used in this section:
            (1) Local entity.--The term ``local entity'' means--
                    (A) a local educational agency, with respect to any 
                act by a local agency or organization relating to a 
                covered activity that is a workforce education 
                activity; and
                    (B) the local public or private agency or 
                organization responsible for carrying out the covered 
                activity at issue, with respect to any act by a local 
                agency or organization relating to any other covered 
                activity.
            (2) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Labor, with respect to any act 
                relating to a covered activity carried out by the 
                Secretary of Labor; and
                    (B) the Secretary of Education, with respect to any 
                act relating to a covered activity carried out by the 
                Secretary of Education.
            (3) State.--The term ``State'' means--
                    (A) a State educational agency, with respect to any 
                act by a State entity relating to a covered activity 
                that is a workforce education activity; and
                    (B) the Governor, with respect to any act by a 
                State entity relating to any other covered activity.
    (i) Conforming Amendments.--
            (1) Section 501 of the School-to-Work Opportunities Act of 
        1994 (20 U.S.C. 6211) is amended--
                    (A) in subsection (a), by striking ``sections 502 
                and 503'' and inserting ``section 502'';
                    (B) in subsection (b)(2)(B)(ii)--
                            (i) by striking ``section 502(a)(1)(C) or 
                        503(a)(1)(C), as appropriate,'' and inserting 
                        ``section 502(a)(1)(C)''; and
                            (ii) by striking ``section 502 or 503, as 
                        appropriate,'' and inserting ``section 502'';
                    (C) in subsection (c), by striking ``section 502 or 
                503'' and inserting ``section 502''; and
                    (D) by striking ``Secretaries'' each place the term 
                appears and inserting ``Secretary of Education''.
            (2) Section 502(b) of such Act (20 U.S.C. 6212(b)) is 
        amended--
                    (A) in paragraph (4), by striking the semicolon and 
                inserting ``; and'';
                    (B) in paragraph (5), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (6).
            (3) Section 503 of such Act (20 U.S.C. 6213) is repealed.
            (4) Section 504 of such Act (20 U.S.C. 6214) is amended--
                    (A) in subsection (a)(2)(B), by striking clauses 
                (i) and (ii) and inserting the following clauses:
                            ``(i) the provisions of law listed in 
                        paragraphs (2) through (5) of section 502(b);
                            ``(ii) the Job Training Partnership Act (29 
                        U.S.C. 1501 et seq.); and
                            ``(iii) the Carl D. Perkins Vocational and 
                        Applied Technology Education Act (20 U.S.C. 
                        2301 et seq.).''; and
                    (B) in subsection (b), by striking ``paragraphs (1) 
                through (3), and paragraphs (5) and (6), of section 
                503(b)'' and inserting ``paragraphs (2) through (4) and 
                paragraphs (6) and (7) of section 505(b)''.
            (5) Section 505(b) of such Act (20 U.S.C. 6215(b)) is 
        amended to read as follows:
    ``(b) Use of Funds.--A State may use, under the requirements of 
this Act, Federal funds that are made available to the State and 
combined under subsection (a) to carry out school-to-work activities, 
except that the provisions relating to--
            ``(1) the matters specified in section 502(c);
            ``(2) basic purposes or goals;
            ``(3) maintenance of effort;
            ``(4) distribution of funds;
            ``(5) eligibility of an individual for participation;
            ``(6) public health or safety, labor standards, civil 
        rights, occupational safety and health, or environmental 
        protection; or
            ``(7) prohibitions or restrictions relating to the 
        construction of buildings or facilities;
that relate to the program through which the funds described in 
subsection (a)(2)(B) were made available, shall remain in effect with 
respect to the use of such funds.''.

SEC. 172. FLEXIBILITY DEMONSTRATION PROGRAM.

    (a) Definition.--As used in this section:
            (1) Eligible state.--The term ``eligible State'' means a 
        State that--
                    (A)(i) has submitted an interim State plan under 
                section 173;
                    (ii) has an executed memorandum of understanding 
                with the Federal Government; or
                    (iii) is a designated ``Ed-Flex Partnership State'' 
                under section 311(e) of the Goals 2000: Educate America 
                Act (20 U.S.C. 5891(e)); and
                    (B) waives State statutory or regulatory 
                requirements relating to workforce development 
                activities while holding local entities within the 
                State that are effected by such waivers accountable for 
                the performance of the participants who are affected by 
                such waivers.
            (2) Local entity; secretary; state.--The terms ``local 
        entity'', ``Secretary'', and ``State'' have the meanings given 
        the terms in section 171(h).
    (b) Demonstration Program.--
            (1) Establishment.--In addition to providing for the 
        waivers described in section 171(a), the Secretary shall 
        establish a workforce flexibility demonstration program under 
        which the Secretary shall permit not more than 6 eligible 
        States (or local entities within such States) to waive any 
        statutory or regulatory requirement applicable to any covered 
        activity described in section 171(a), other than the 
        requirements described in section 171(d).
            (2) Selection of participant states.--In carrying out the 
        program under paragraph (1), the Secretary shall select for 
        participation in the program 3 eligible States that each have a 
        population of not less than 3,500,000 individuals and 3 
        eligible States that each have a population of not more than 
        3,500,000 individuals, as determined in accordance with the 
        most recent decennial census of the population as provided by 
        the Bureau of the Census.
            (3) Application.--
                    (A) Submission.--To be eligible to participate in 
                the program established under paragraph (1), a State 
                shall prepare and submit an application, in accordance 
                with section 171(b)(2), that includes--
                            (i) a description of the process the 
                        eligible State will use to evaluate 
                        applications from local entities requesting 
                        waivers of--
                                    (I) Federal statutory or regulatory 
                                requirements described in section 
                                171(a); and
                                    (II) State statutory or regulatory 
                                requirements relating to workforce 
                                development activities; and
                            (ii) a detailed description of the State 
                        statutory or regulatory requirements relating 
                        to workforce development activities that the 
                        State will waive.
                    (B) Approval.--The Secretary may approve an 
                application submitted under subparagraph (A) if the 
                Secretary determines that such application demonstrates 
                substantial promise of assisting the State and local 
                entities within such State in carrying out 
                comprehensive reform of workforce development 
                activities and in otherwise meeting the purposes of 
                this Act.
                    (C) Local entity applications.--A State 
                participating in the program established under 
                paragraph (1) shall not approve an application by a 
                local entity for a waiver under this subsection unless 
                the State determines that such waiver will assist the 
                local entity in reaching the goals of the local entity.
            (4) Monitoring.--A State participating in the program 
        established under paragraph (1) shall annually monitor the 
        activities of local entities receiving waivers under this 
        subsection and shall submit an annual report regarding such 
        monitoring to the Secretary. The Secretary shall periodically 
        review the performance of such States and shall terminate the 
        waiver of a State under this subsection if the Secretary 
        determines, after notice and opportunity for a hearing, that 
        the performance of such State has been inadequate to a level 
        that justifies discontinuation of such authority.
            (5) Reference.--Each eligible State participating in the 
        program established under paragraph (1) shall be referred to as 
        a ``Work-Flex Partnership State''.

SEC. 173. INTERIM STATE PLANS.

    (a) In General.--For a State or local entity in a State to use a 
waiver received under section 171 or 172 through June 30, 1998, and for 
a State to be eligible to submit a State plan described in section 104 
for program year 1998, the Governor of the State shall submit an 
interim State plan to the Federal Partnership. The Governor shall 
submit the plan not later than June 30, 1997.
    (b) Requirements.--The interim State plan shall comply with the 
requirements applicable to State plans described in section 104.
    (c) Program Year.--In submitting the interim State plan, the 
Governor shall indicate whether the plan is submitted--
            (1) for review and approval for program year 1997; or
            (2) solely for review.
    (d) Review.--In reviewing an interim State plan, the Secretary of 
Labor and the Secretary of Education, acting jointly on the advice of 
the Federal Partnership, may--
            (1) in the case of a plan submitted for review and approval 
        for program year 1997--
                    (A) approve the plan and permit the State to use a 
                waiver as described in section 171 or 172 to carry out 
                the plan; or
                    (B)(i) disapprove the plan and provide to the State 
                reasons for the disapproval; and
                    (ii) direct the Federal Partnership to provide 
                technical assistance to the State for developing an 
                approvable plan to be submitted under section 104 for 
                program year 1998; and
            (2) in the case of a plan submitted solely for review, 
        review the plan and provide to the State technical assistance 
        for developing an approvable plan to be submitted under section 
        104 for program year 1998.
    (e) Effect of Disapproval.--Disapproval of an interim plan shall 
not affect the ability of a State to use a waiver as described in 
section 171 or 172 through June 30, 1998.

SEC. 174. APPLICATIONS AND PLANS UNDER COVERED ACTS.

    Notwithstanding any other provision of law, no State or local 
entity shall be required to comply with any provision of a covered Act 
that would otherwise require the entity to submit an application or a 
plan to a Federal agency during fiscal year 1996 or 1997 for funding of 
a covered activity. In determining whether to provide funding to the 
State or local entity for the covered activity, the Secretary of Labor 
or the Secretary of Education, as appropriate, shall consider the last 
application or plan, as appropriate, submitted by the entity for 
funding of the covered activity.

SEC. 175. INTERIM ADMINISTRATION OF SCHOOL-TO-WORK PROGRAMS.

    (a) In General.--Any provision of the School-to-Work Opportunities 
Act of 1994 (20 U.S.C. 6101 et seq.) that grants authority to the 
Secretary of Labor or the Secretary of Education shall be considered to 
grant the authority to the Federal Partnership.
    (b) Effective Date.--Subsection (a) shall take effect on October 1, 
1996.

SEC. 176. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Carl D. Perkins Vocational and Applied Technology Education 
Act.--
            (1) In general.--Section 3(a) of the Carl D. Perkins 
        Vocational and Applied Technology Education Act (20 U.S.C. 
        2302(a)) is amended by striking ``for each of the fiscal 
        years'' and all that follows through ``1995'' and inserting 
        ``for each of fiscal years 1992 through 1998''.
            (2) Research.--Section 404(d) of such Act (20 U.S.C. 
        2404(d)) is amended by striking ``for each of the fiscal 
        years'' and all that follows through ``1995'' and inserting 
        ``for each of fiscal years 1992 through 1998''.
    (b) Adult Education Act.--
            (1) In general.--Section 313(a) of the Adult Education Act 
        (20 U.S.C. 1201b(a)) is amended by striking ``for each of the 
        fiscal years'' and all that follows through ``1995'' and 
        inserting ``for each of fiscal years 1993 through 1998''.
            (2) State literacy resource centers.--Section 356(k) of 
        such Act (20 U.S.C. 1208aa(k)) is amended by striking ``for 
        each of the fiscal years 1994 and 1995'' and inserting ``for 
        each of fiscal years 1994 and 1995''.
            (3) Business, industry, labor, and education partnerships 
        for workplace literacy.--Section 371(e)(1) of such Act (20 
        U.S.C. 1211(e)(1)) is amended by striking ``for each of the 
        fiscal years'' and all that follows through ``1995'' and 
        inserting ``for each of fiscal years 1993 through 1998''.
            (4) National institute for literacy.--Section 384(n)(1) of 
        such Act (20 U.S.C. 1213c(n)(1)) is amended by striking ``for 
        each of the fiscal years'' and all that follows through 
        ``1996'' and inserting ``for each of fiscal years 1992 through 
        1995''.

                    Subtitle D--National Activities

SEC. 181. FEDERAL PARTNERSHIP.

    (a) Establishment.--There is established in the Department of Labor 
and the Department of Education a Workforce Development Partnership, 
under the joint control of the Secretary of Labor and the Secretary of 
Education.
    (b) Administration.--Notwithstanding the Department of Education 
Organization Act (20 U.S.C. 3401 et seq.), the General Education 
Provisions Act (20 U.S.C. 1221 et seq.), the Act entitled ``An Act To 
Create a Department of Labor'', approved March 4, 1913 (29 U.S.C. 551 
et seq.), and section 169 of the Job Training Partnership Act (29 
U.S.C. 1579), the Secretary of Labor and the Secretary of Education, 
acting jointly, in accordance with the plan approved or determinations 
made by the President under section 187(c), shall provide for, and 
exercise final authority over, the effective and efficient 
administration of this title (other than subtitle B), the Act amended 
by subtitle B of title II, the provisions amended by sections 241 and 
242, and the officers and employees of the Federal Partnership.
    (c) Responsibilities of Secretary of Labor and Secretary of 
Education.--The Secretary of Labor and the Secretary of Education, 
working jointly through the Federal Partnership, shall--
            (1) approve applications and plans under sections 104, 107, 
        108, 109, 173, and 184;
            (2) award financial assistance under sections 102, 107, 
        108, 109, 122(a), 161, 184, and 185;
            (3) approve State benchmarks in accordance with section 
        121(c); and
            (4) apply sanctions described in section 122(b).
    (d) Workplans.--The Secretary of Labor and the Secretary of 
Education, acting jointly, shall prepare and submit the workplans 
described in sections 187(c) and 188(b).
    (e) Information and Technical Assistance Responsibilities.--The 
Secretary of Labor and the Secretary of Education, acting jointly, 
shall, in appropriate cases, disseminate information and provide 
technical assistance to States on the best practices for establishing 
and carrying out activities through statewide systems, including model 
programs to provide structured work and learning experiences for 
welfare recipients.

SEC. 182. NATIONAL WORKFORCE DEVELOPMENT BOARD AND PERSONNEL.

    (a) National Board.--
            (1) Composition.--The Federal Partnership shall be directed 
        by a National Board that shall be composed of 13 individuals, 
        including--
                    (A) 7 individuals who are representative of 
                business and industry in the United States, appointed 
                by the President by and with the advice and consent of 
                the Senate;
                    (B) 2 individuals who are representative of labor 
                and workers in the United States, appointed by the 
                President by and with the advice and consent of the 
                Senate;
                    (C) 2 individuals who are representative of 
                education providers, 1 of whom is a State or local 
                adult education provider and 1 of whom is a State or 
                local vocational education provider, appointed by the 
                President by and with the advice and consent of the 
                Senate; and
                    (D) 2 Governors, representing different political 
                parties, appointed by the President by and with the 
                advice and consent of the Senate.
            (2) Terms.--Each member of the National Board shall serve 
        for a term of 3 years, except that, as designated by the 
        President--
                    (A) 5 of the members first appointed to the 
                National Board shall serve for a term of 2 years;
                    (B) 4 of the members first appointed to the 
                National Board shall serve for a term of 3 years; and
                    (C) 4 of the members first appointed to the 
                National Board shall serve for a term of 4 years.
            (3) Vacancies.--Any vacancy in the National Board shall not 
        affect the powers of the National Board, but shall be filled in 
        the same manner as the original appointment. Any member 
        appointed to fill such a vacancy shall serve for the remainder 
        of the term for which the predecessor of such member was 
        appointed.
            (4) Duties and powers of the national board.--
                    (A) Oversight.--Subject to section 181(b), the 
                National Board shall oversee all activities of the 
                Federal Partnership.
                    (B) Recommendations about implementation.--If the 
                Secretary of Labor and the Secretary of Education fail 
                to reach agreement with respect to the implementation 
                of their duties and responsibilities under this Act 
                (other than subtitle B) and the amendments made by this 
                Act, the National Board shall review the issues about 
                which disagreement exists and make a recommendation to 
                the President regarding a solution to the disagreement.
            (5) Chairperson.--The position of Chairperson of the 
        National Board shall rotate annually among the appointed 
        members described in paragraph (1)(A).
            (6) Meetings.--The National Board shall meet at the call of 
        the Chairperson but not less often than 4 times during each 
        calendar year. Seven members of the National Board shall 
        constitute a quorum. All decisions of the National Board with 
        respect to the exercise of the duties and powers of the 
        National Board shall be made by a majority vote of the members 
        of the National Board.
            (7) Compensation and travel expenses.--
                    (A) Compensation.--In accordance with the plan 
                approved or the determinations made by the President 
                under section 187(c), each member of the National Board 
                shall be compensated at a rate to be fixed by the 
                President but not to exceed the daily equivalent of the 
                maximum rate authorized for a position above GS-15 of 
                the General Schedule under section 5108 of title 5, 
                United States Code, for each day (including travel 
                time) during which such member is engaged in the 
                performance of the duties of the National Board.
                    (B) Expenses.--While away from their homes or 
                regular places of business on the business of the 
                National Board, members of such National Board shall be 
                allowed travel expenses, including per diem in lieu of 
                subsistence, at rates authorized for employees of 
                agencies under subchapter I of chapter 57 of title 5, 
                United States Code, for persons employed intermittently 
                in the Government service.
            (8) Date of appointment.--The National Board shall be 
        appointed not later than 120 days after the date of enactment 
        of this Act.
    (b) Duties and Powers of the Federal Partnership.--The Federal 
Partnership shall--
            (1) oversee the development, maintenance, and continuous 
        improvement of the nationwide integrated labor market and 
        occupational information system described in section 183, and 
        the relationship between such system and the job placement 
        accountability system described in section 121(d);
            (2) establish model benchmarks for each of the benchmarks 
        referred to in paragraph (1), (2), or (3) of section 121(c), at 
        achievable levels based on existing (as of the date of the 
        establishment of the benchmarks) workforce development efforts 
        in the States;
            (3) negotiate State benchmarks with States in accordance 
        with section 121(c);
            (4) provide advice to the Secretary of Labor and the 
        Secretary of Education regarding the review and approval of 
        applications and plans described in section 181(c)(1) and the 
        approval of financial assistance described in section 
        181(c)(2);
            (5) receive and review reports described in section 121(a);
            (6) prepare and submit to the appropriate committees of 
        Congress an annual report on the absolute and relative 
        performance of States toward reaching the State benchmarks;
            (7) provide advice to the Secretary of Labor and the 
        Secretary of Education regarding applying sanctions described 
        in section 122(b);
            (8) review all federally funded programs providing 
        workforce development activities or workforce preparation 
        activities for at-risk youth, other than programs carried out 
        under this title, and submit recommendations to Congress on how 
        the federally funded programs could be integrated into the 
        statewide systems of the States, including recommendations on 
        the development of common terminology for activities and 
        services provided through the programs;
            (9) prepare an annual plan for the nationwide integrated 
        labor market and occupational information system, as described 
        in section 183(b)(2); and
            (10) perform the duties specified for the Federal 
        Partnership in this Act and the amendments made by this Act.
    (c) Director.--
            (1) In general.--There shall be in the Federal Partnership 
        a Director, who shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            (2) Compensation.--The Director shall be compensated at the 
        rate provided for level IV of the Executive Schedule under 
        section 5315 of title 5, United States Code.
            (3) Duties.--The Director shall make recommendations to the 
        National Board regarding the activities described in subsection 
        (b).
            (4) Date of appointment.--The Director shall be appointed 
        not later than 120 days after the date of enactment of this 
        Act.
    (d) Personnel.--
            (1) Appointments.--The Director may appoint and fix the 
        compensation of such officers and employees as may be necessary 
        to carry out the functions of the Federal Partnership. Except 
        as otherwise provided by law, such officers and employees shall 
        be appointed in accordance with the civil service laws and 
        their compensation fixed in accordance with title 5, United 
        States Code.
            (2) Experts and consultants.--The Director may obtain the 
        services of experts and consultants in accordance with section 
        3109 of title 5, United States Code, and compensate such 
        experts and consultants for each day (including travel time) at 
        rates not in excess of the rate of pay for level IV of the 
        Executive Schedule under section 5315 of such title. The 
        Director may pay experts and consultants who are serving away 
        from their homes or regular places of business travel expenses 
        and per diem in lieu of subsistence at rates authorized by 
        sections 5702 and 5703 of such title for persons in Government 
        service employed intermittently.
            (3) Detail of government employees.--Any Federal Government 
        employee may be detailed to the Federal Partnership without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service or privilege. The Secretary of Education 
        and the Secretary of Labor shall detail a sufficient number of 
        employees to the Federal Partnership for the period beginning 
        October 1, 1996 and ending June 30, 1998 to carry out the 
        functions of the Federal Partnership during such period.
            (4) Use of voluntary and uncompensated services.--
        Notwithstanding section 1342 of title 31, United States Code, 
        the Secretary of Labor and the Secretary of Education are 
        authorized to accept voluntary and uncompensated services in 
        furtherance of the purposes of this Act.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal years 1996 and 1997 $500,000 to the National 
Board for the administration of the duties and responsibilities of the 
Federal Partnership under this title.

SEC. 183. LABOR MARKET AND OCCUPATIONAL INFORMATION.

    (a) Federal Responsibilities.--The Federal Partnership, in 
accordance with the provisions of this section, shall oversee the 
development, maintenance, and continuous improvement of a nationwide 
integrated labor market and occupational information system that shall 
include--
            (1) statistical data from cooperative statistical survey 
        and projection programs and data from administrative reporting 
        systems, that, taken together, shall enumerate, estimate, and 
        project the supply and demand for labor at the substate, State, 
        and national levels in a timely manner, including data on--
                    (A) the demographics, socioeconomic 
                characteristics, and current employment status of the 
                substate, State, and national populations (as of the 
                date of the collection of the data), including self-
                employed, part-time, and seasonal workers;
                    (B) job vacancies, education and training 
                requirements, skills, wages, benefits, working 
                conditions, and industrial distribution, of 
                occupations, as well as current and projected 
                employment opportunities and trends by industry and 
                occupation;
                    (C) the educational attainment, training, skills, 
                skill levels, and occupations of the populations;
                    (D) information maintained in a longitudinal manner 
                on the quarterly earnings, establishment and industry 
                affiliation, and geographic location of employment for 
                all individuals for whom the information is collected 
                by the States; and
                    (E) the incidence, industrial and geographical 
                location, and number of workers displaced by permanent 
                layoffs and plant closings;
            (2) State and substate area employment and consumer 
        information (which shall be current, comprehensive, automated, 
        accessible, easy to understand, and in a form useful for 
        facilitating immediate employment, entry into education and 
        training programs, and career exploration) on--
                    (A) job openings, locations, hiring requirements, 
                and application procedures, including profiles of 
                industries in the local labor market that describe the 
                nature of work performed, employment requirements, and 
                patterns in wages and benefits;
                    (B) jobseekers, including the education, training, 
                and employment experience of the jobseekers; and
                    (C) the cost and effectiveness of providers of 
                workforce employment activities, workforce education 
                activities, and flexible workforce activities, 
                including the percentage of program completion, 
                acquisition of skills to meet industry-recognized skill 
                standards, continued education, job placement, and 
                earnings, by participants, and other information that 
                may be useful in facilitating informed choices among 
                providers by participants;
            (3) technical standards for labor market and occupational 
        information that will--
                    (A) ensure compatibility of the information and the 
                ability to aggregate the information from substate 
                areas to State and national levels;
                    (B) support standardization and aggregation of the 
                data from administrative reporting systems;
                    (C) include--
                            (i) classification and coding systems for 
                        industries, occupations, skills, programs, and 
                        courses;
                            (ii) nationally standardized definitions of 
                        labor market terms, including terms related to 
                        State benchmarks established pursuant to 
                        section 121(c);
                            (iii) quality control mechanisms for the 
                        collection and analysis of labor market and 
                        occupational information; and
                            (iv) common schedules for collection and 
                        dissemination of labor market and occupational 
                        information; and
                    (D) eliminate gaps and duplication in statistical 
                undertakings, with a high priority given to the 
                systemization of wage surveys;
            (4) an analysis of data and information described in 
        paragraphs (1) and (2) for uses such as--
                    (A) national, State, and substate area economic 
                policymaking;
                    (B) planning and evaluation of workforce 
                development activities;
                    (C) the implementation of Federal policies, 
                including the allocation of Federal funds to States and 
                substate areas;
                    (D) research on labor market and occupational 
                dynamics; and
                    (E) career development planning and decisionmaking;
            (5) dissemination mechanisms for data and analysis, 
        including mechanisms that may be standardized among the States; 
        and
            (6) programs of technical assistance for States and 
        substate areas in the development, maintenance, utilization, 
        and continuous improvement of the data, information, standards, 
        analysis, and dissemination mechanisms, described in paragraphs 
        (1) through (5), including training of counselors, teachers, 
        and other persons to use the products of the nationwide 
        integrated labor market and occupational information system to 
        improve career decisionmaking.
    (b) Joint Federal-State Responsibilities.--
            (1) In general.--The nationwide integrated labor market and 
        occupational information system shall be planned, administered, 
        overseen, and evaluated through a cooperative governance 
        structure involving the Federal Government and the States 
        receiving financial assistance under this title.
            (2) Annual plan.--The Federal Partnership shall, with the 
        assistance of the Bureau of Labor Statistics and other Federal 
        agencies, where appropriate, prepare an annual plan that shall 
        be the mechanism for achieving the cooperative Federal-State 
        governance structure for the nationwide integrated labor market 
        and occupational information system. The plan shall--
                    (A) establish goals for the development and 
                improvement of a nationwide integrated labor market and 
                occupational information system based on information 
                needs for achieving economic growth and productivity, 
                accountability, fund allocation equity, and an 
                understanding of labor market characteristics and 
                dynamics;
                    (B) describe the elements of the system, 
                including--
                            (i) standards, definitions, formats, 
                        collection methodologies, and other necessary 
                        system elements, for use in collecting the data 
                        and information described in paragraphs (1) and 
                        (2) of subsection (a); and
                            (ii) assurances that--
                                    (I) data will be sufficiently 
                                timely and detailed for uses including 
                                the uses described in subsection 
                                (a)(4);
                                    (II) administrative records will be 
                                standardized to facilitate the 
                                aggregation of data from substate areas 
                                to State and national levels and to 
                                support the creation of new statistical 
                                series from program records; and
                                    (III) paperwork and reporting 
                                requirements on employers and 
                                individuals will be reduced;
                    (C) recommend needed improvements in administrative 
                reporting systems to be used for the nationwide 
                integrated labor market and occupational information 
                system;
                    (D) describe the current spending on integrated 
                labor market and occupational information activities 
                from all sources, assess the adequacy of the funds 
                spent, and identify the specific budget needs of the 
                Federal Government and States with respect to 
                implementing and improving the nationwide integrated 
                labor market and occupational information system;
                    (E) develop a budget for the nationwide integrated 
                labor market and occupational information system that--
                            (i) accounts for all funds described in 
                        subparagraph (D) and any new funds made 
                        available pursuant to this title; and
                            (ii) describes the relative allotments to 
                        be made for--
                                    (I) operating the cooperative 
                                statistical programs pursuant to 
                                subsection (a)(1);
                                    (II) developing and providing 
                                employment and consumer information 
                                pursuant to subsection (a)(2);
                                    (III) ensuring that technical 
                                standards are met pursuant to 
                                subsection (a)(3); and
                                    (IV) providing the analysis, 
                                dissemination mechanisms, and technical 
                                assistance under paragraphs (4), (5), 
                                and (6) of subsection (a), and matching 
                                data;
                    (F) describe the involvement of States in 
                developing the plan by holding formal consultations 
                conducted in cooperation with representatives of the 
                Governors of each State or the State workforce 
                development board described in section 105, where 
                appropriate, pursuant to a process established by the 
                Federal Partnership; and
                    (G) provide for technical assistance to the States 
                for the development of statewide comprehensive labor 
                market and occupational information systems described 
                in subsection (c), including assistance with the 
                development of easy-to-use software and hardware, or 
                uniform information displays.
        For purposes of applying Office of Management and Budget 
        Circular A-11 to determine persons eligible to participate in 
        deliberations relating to budget issues for the development of 
        the plan, the representatives of the Governors of each State 
        and the State workforce development board described in 
        subparagraph (F) shall be considered to be employees of the 
        Department of Labor.
    (c) State Responsibilities.--
            (1) Designation of state agency.--In order to receive 
        Federal financial assistance under this title, the Governor of 
        a State shall--
                    (A) establish an interagency process for the 
                oversight of a statewide comprehensive labor market and 
                occupational information system and for the 
                participation of the State in the cooperative Federal-
                State governance structure for the nationwide 
                integrated labor market and occupational information 
                system; and
                    (B) designate a single State agency or entity 
                within the State to be responsible for the management 
                of the statewide comprehensive labor market and 
                occupational information system.
            (2) Duties.--In order to receive Federal financial 
        assistance under this title, the State agency or entity within 
        the State designated under paragraph (1)(B) shall--
                    (A) consult with employers and local workforce 
                development boards described in section 118(b), where 
                appropriate, about the labor market relevance of the 
                data to be collected and displayed through the 
                statewide comprehensive labor market and occupational 
                information system;
                    (B) develop, maintain, and continuously improve the 
                statewide comprehensive labor market and occupational 
                information system, which shall--
                            (i) include all of the elements described 
                        in paragraphs (1), (2), (3), (4), (5), and (6) 
                        of subsection (a); and
                            (ii) provide the consumer information 
                        described in clauses (v) and (vi) of section 
                        106(a)(2)(B) in a manner that shall be 
                        responsive to the needs of business, industry, 
                        workers, and jobseekers;
                    (C) ensure the performance of contract and grant 
                responsibilities for data collection, analysis, and 
                dissemination, through the statewide comprehensive 
                labor market and occupational information system;
                    (D) conduct such other data collection, analysis, 
                and dissemination activities to ensure that State and 
                substate area labor market and occupational information 
                is comprehensive;
                    (E) actively seek the participation of other State 
                and local agencies, with particular attention to State 
                education, economic development, human services, and 
                welfare agencies, in data collection, analysis, and 
                dissemination activities in order to ensure 
                complementarity and compatibility among data;
                    (F) participate in the development of the national 
                annual plan described in subsection (b)(2); and
                    (G) ensure that the matches required for the job 
                placement accountability system by section 121(d)(2)(A) 
                are made for the State and for other States.
            (3) Rule of construction.--Nothing in this title shall be 
        construed as limiting the ability of a State agency to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this title.
    (d) Effective Date.--This section shall take effect on July 1, 
1998.

SEC. 184. NATIONAL DISCRETIONARY GRANTS.

    (a) National Grants.--Using funds made available under section 
124(b)(5), the Secretary of Labor and the Secretary of Education, 
acting jointly on the advice of the Federal Partnership, may in a 
timely manner award a national grant--
            (1) to an eligible entity described in subsection (b) to 
        carry out the activities described in such subsection; and
            (2) at the request of an officer described in subsection 
        (c), to such an officer to carry out the activities described 
        in such subsection.
    (b) Rapid Response Grants.--
            (1) In general.--
                    (A) Major economic dislocation.--Funds made 
                available under this section to an eligible entity 
                described in this subsection may be used to provide 
                adjustment assistance to workers affected by a major 
                economic dislocation that results from a closure, 
                layoff, or realignment described in section 3(8)(B).
                    (B) Emergency determination.--Such funds may also 
                be used to provide adjustment assistance to dislocated 
                workers whenever the Federal Partnership (with the 
                agreement of the Governor involved) determines that an 
                emergency exists with respect to any particular 
                distressed industry or any particularly distressed 
                area. The Federal Partnership may make arrangements for 
                the immediate provision of such emergency financial 
                assistance for the purposes of this subsection with any 
                necessary supportive documentation to be submitted on a 
                date agreed to by the Governor and the Federal 
                Partnership.
            (2) Eligible entities.--To be eligible to receive a grant 
        under this section for activities described in this subsection, 
        an eligible entity shall be a State or local entity.
            (3) Application.--To be eligible to receive a grant under 
        this section for activities described in this subsection, an 
        eligible entity shall submit an application to the Federal 
        Partnership at such time, in such manner, and containing such 
        information as the Federal Partnership determines to be 
        appropriate.
    (c) Disaster Relief Employment Assistance.--
            (1) In general.--Funds made available under this section to 
        officers described in this subsection shall be used solely to 
        provide individuals in a disaster area with employment in 
        projects to provide clothing, shelter, and other humanitarian 
        assistance for disaster victims and in projects regarding the 
        demolition, cleanup, repair, renovation, and reconstruction of 
        damaged and destroyed structures, facilities, and lands located 
        within the disaster area.
            (2) Officers.--To be eligible to receive a grant under this 
        section for activities described in this subsection, an officer 
        shall be a chief executive officer of a State within which is 
        located an area that has suffered an emergency or a major 
        disaster as defined in paragraph (1) or (2), respectively, of 
        section 102 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5122(1) and (2)) (referred 
        to in this section as a ``disaster area'').

SEC. 185. NATIONAL CENTER FOR RESEARCH IN EDUCATION AND WORKFORCE 
              DEVELOPMENT.

    (a) Grants Authorized.--From amounts made available under section 
124(b)(7), the Secretary of Labor and the Secretary of Education, 
acting jointly on the advice of the Federal Partnership, are authorized 
to award a grant, on a competitive basis, to an institution of higher 
education, public or private nonprofit organization or agency, or a 
consortium of such institutions, organizations, or agencies, to enable 
such institution, organization, agency, or consortium to establish a 
national center to carry out the activities described in subsection 
(b).
    (b) Authorized Activities.--Grant funds made available under this 
section shall be used by the national center assisted under subsection 
(a)--
            (1) to increase the effectiveness and improve the 
        implementation of workforce development programs, including 
        conducting research and development and providing technical 
        assistance with respect to--
                    (A) combining academic and vocational education;
                    (B) connecting classroom instruction with work-
                based learning;
                    (C) creating a continuum of educational programs 
                that provide multiple exit points for employment, which 
                may include changes or development of instructional 
                materials or curriculum;
                    (D) establishing high quality support services for 
                all students to ensure access to workforce development 
                programs, educational success, and job placement 
                assistance;
                    (E) developing new models for remediation of basic 
                academic skills;
                    (F) identifying ways to establish links among 
                educational and job training programs at the State and 
                local levels;
                    (G) developing new models for career guidance, 
                career information, and counseling services;
                    (H) identifying economic and labor market changes 
                that will affect workforce needs;
                    (I) developing model programs for the transition of 
                members of the Armed Forces from military service to 
                civilian employment;
                    (J) conducting preparation of teachers, counselors, 
                administrators, other professionals, and volunteers, 
                who work with programs funded under this title; and
                    (K) obtaining information on practices in other 
                countries that may be adapted for use in the United 
                States;
            (2) to provide assistance to States and local recipients of 
        assistance under this title in developing and using systems of 
        performance measures and standards for improvement of programs 
        and services; and
            (3) to maintain a clearinghouse that will provide data and 
        information to Federal, State, and local organizations and 
        agencies about the condition of statewide systems and programs 
        funded under this title, which data and information shall be 
        disseminated in a form that is useful to practitioners and 
        policymakers.
    (c) Other Activities.--The Federal Partnership may request that the 
national center assisted under subsection (a) conduct activities not 
described in subsection (b), or study topics not described in 
subsection (b), as the Federal Partnership determines to be necessary 
to carry out this title.
    (d) Identification of Current Needs.--The national center assisted 
under subsection (a) shall identify current needs (as of the date of 
the identification) for research and technical assistance through a 
variety of sources including a panel of Federal, State, and local level 
practitioners.
    (e) Summary Report.--The national center assisted under subsection 
(a) shall annually prepare and submit to the Federal Partnership and 
the Committee on Economic and Educational Opportunities of the House of 
Representatives and the Committee on Labor and Human Resources of the 
Senate a report summarizing the research findings obtained, and the 
results of development and technical assistance activities carried out, 
under this section.
    (f) Transition Period.--Notwithstanding any other provision of law, 
the Secretary of Labor and the Secretary of Education, acting jointly 
on the advice of the Federal Partnership, may use funds made available 
under section 404 of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2404) to prepare, during the period 
beginning on January 1, 1998, and ending June 30, 1998, to award a 
grant under subsection (a) on July 1, 1998.
    (g) Definition.--As used in this section, the term ``institution of 
higher education'' has the meaning given the term in section 1201(a) of 
the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
    (h) Conforming Amendments.--Section 404(a)(2) of the Carl D. 
Perkins Vocational and Applied Technology Education Act (20 U.S.C. 
2404(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``for a period of 5 
        years'' and inserting ``until June 30, 1998''; and
            (2) in the first sentence of subparagraph (B), by striking 
        ``5''.
    (i) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), this section shall take effect on July 1, 1998.
            (2) Transition provisions.--Subsection (f) shall take 
        effect on January 1, 1998.
            (3) Amendments.--The amendments made by subsection (h) 
        shall take effect on the date of enactment of this Act.

SEC. 186. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION PROGRAMS.

    (a) In General.--The Secretary of Education (referred to in this 
section as the ``Secretary'') shall conduct a national assessment of 
vocational education programs assisted under this title, through 
studies and analyses conducted independently through competitive 
awards.
    (b) Independent Advisory Panel.--The Secretary shall appoint an 
independent advisory panel, consisting of vocational education 
administrators, educators, researchers, and representatives of 
business, industry, labor, career guidance and counseling 
professionals, and other relevant groups, to advise the Secretary on 
the implementation of such assessment, including the issues to be 
addressed and the methodology of the studies involved, and the findings 
and recommendations resulting from the assessment. The panel, in the 
discretion of the panel, may submit to the Committee on Economic and 
Educational Opportunities of the House of Representatives, the 
Committee on Labor and Human Resources of the Senate, and the Federal 
Partnership an independent analysis of the findings and recommendations 
resulting from the assessment. The Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to the panel established under this 
subsection.
    (c) Contents.--The assessment required under subsection (a) shall 
include descriptions and evaluations of--
            (1) the effect of this title on State and tribal 
        administration of vocational education programs and on local 
        vocational education practices, including the capacity of 
        State, tribal, and local vocational education systems to 
        address the purposes of this title;
            (2) expenditures at the Federal, State, tribal, and local 
        levels to address program improvement in vocational education, 
        including the impact of Federal allocation requirements (such 
        as within-State distribution formulas) on the delivery of 
        services;
            (3) preparation and qualifications of teachers of 
        vocational and academic curricula in vocational education 
        programs, as well as shortages of such teachers;
            (4) participation in vocational education programs;
            (5) academic and employment outcomes of vocational 
        education, including analyses of--
                    (A) the effect of educational reform on vocational 
                education;
                    (B) the extent and success of integration of 
                academic and vocational curricula;
                    (C) the success of the school-to-work transition; 
                and
                    (D) the degree to which vocational training is 
                relevant to subsequent employment;
            (6) employer involvement in, and satisfaction with, 
        vocational education programs;
            (7) the effect of benchmarks, performance measures, and 
        other measures of accountability on the delivery of vocational 
        education services; and
            (8) the degree to which minority students are involved in 
        vocational student organizations.
    (d) Consultation.--
            (1) In general.--The Secretary shall consult with the 
        Committee on Economic and Educational Opportunities of the 
        House of Representatives and the Committee on Labor and Human 
        Resources of the Senate in the design and implementation of the 
        assessment required under subsection (a).
            (2) Reports.--The Secretary shall submit to the Committee 
        on Economic and Educational Opportunities of the House of 
        Representatives, the Committee on Labor and Human Resources of 
        the Senate, and the Federal Partnership--
                    (A) an interim report regarding the assessment on 
                or before January 1, 2000; and
                    (B) a final report, summarizing all studies and 
                analyses that relate to the assessment and that are 
                completed after the assessment, on or before July 1, 
                2000.
            (3) Prohibition.--Notwithstanding any other provision of 
        law or regulation, the reports required by this subsection 
        shall not be subject to any review outside of the Department of 
        Education before their transmittal to the Committee on Economic 
        and Educational Opportunities of the House of Representatives, 
        the Committee on Labor and Human Resources of the Senate, and 
        the Federal Partnership, but the President, the Secretary, the 
        Federal Partnership, and the independent advisory panel 
        established under subsection (b) may make such additional 
        recommendations to Congress with respect to the assessment as 
        the President, the Secretary, the Federal Partnership, or the 
        panel determine to be appropriate.
    (e) Effective Date.--This section shall take effect on July 1, 
1998.

SEC. 187. TRANSFERS TO FEDERAL PARTNERSHIP.

    (a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
            (1) the term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.
    (b) Transfer of Functions.--There are transferred to the 
appropriate Secretary in the Federal Partnership, in accordance with 
subsection (c), all functions that the Secretary of Labor or the 
Secretary of Education exercised before the effective date of this 
section (including all related functions of any officer or employee of 
the Department of Labor or the Department of Education) that relate to 
a covered activity and that are minimally necessary to carry out the 
functions of the Federal Partnership. The authority of a transferred 
employee to carry out a function that relates to a covered activity 
shall terminate on July 1, 1998.
    (c) Transition Workplan.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Labor and the Secretary 
        of Education shall prepare and submit to the National Board a 
        proposed workplan as described in paragraph (2). The Secretary 
        of Labor and the Secretary of Education shall also submit the 
        plan to the President, the Committee on Economic and 
        Educational Opportunities of the House of Representatives, and 
        the Committee on Labor and Human Resources of the Senate for 
        review and comment.
            (2) Contents.--The proposed workplan shall include, at a 
        minimum--
                    (A) an analysis of the functions that officers and 
                employees of the Department of Labor and the Department 
                of Education carry out (as of the date of the 
                submission of the workplan) that relate to a covered 
                activity;
                    (B) information on the levels of personnel and 
                funding used to carry out the functions (as of such 
                date);
                    (C) a determination of the functions described in 
                subparagraph (A) that are minimally necessary to carry 
                out the functions of the Federal Partnership;
                    (D) information on the levels of personnel and 
                other resources that are minimally necessary to carry 
                out the functions of the Federal Partnership;
                    (E) a determination of the manner in which the 
                Secretary of Labor and the Secretary of Education will 
                provide personnel and other resources of the Department 
                of Labor and the Department of Education for the 
                Federal Partnership;
                    (F) a determination of the appropriate Secretary to 
                receive the personnel, resources, and related items to 
                be transferred under this section, based on factors 
                including increased efficiency and elimination of 
                duplication of functions;
                    (G) a determination of the proposed organizational 
                structure for the Federal Partnership; and
                    (H) a determination of the manner in which the 
                Secretary of Labor and the Secretary of Education, 
                acting jointly through the Federal Partnership, will 
                carry out their duties and responsibilities under this 
                Act (other than subtitle B) and the amendments made by 
                this Act.
            (3) Review by national board.--
                    (A) In general.--Not later than 45 days after the 
                date of submission of the proposed workplan under 
                paragraph (1), the National Board shall--
                            (i) review and concur with the workplan; or
                            (ii) reject the workplan and prepare and 
                        submit to the President a revised workplan that 
                        contains the analysis, information, and 
                        determinations described in paragraph (2).
                    (B) Functions transferred.--If the National Board 
                concurs with the proposed workplan, the functions 
                described in paragraph (2)(C), as determined in the 
                workplan, shall be transferred under subsection (b).
            (4) Review by the president.--
                    (A) In general.--Not later than 30 days after the 
                date of submission of a revised workplan under 
                paragraph (3)(A)(ii), the President shall--
                            (i) review and approve the workplan; or
                            (ii) reject the workplan and prepare an 
                        alternative workplan that contains the 
                        analysis, information, and determinations 
                        described in paragraph (2).
                    (B) Functions transferred.--If the President 
                approves the revised workplan, or prepares the 
                alternative workplan, the functions described in 
                paragraph (2)(C), as determined in such revised or 
                alternative workplan, shall be transferred under 
                subsection (b).
                    (C) Special rule.--If the President takes no action 
                on the revised workplan submitted under paragraph 
                (3)(A)(ii) within the 30-day period described in 
                subparagraph (A), the Secretary of Labor, the Secretary 
                of Education, and the National Board may attempt to 
                reach agreement on a compromise workplan. If the 
                Secretary of Labor, the Secretary of Education, and the 
                National Board reach such agreement, the functions 
                described in paragraph (2)(C), as determined in such 
                compromise workplan, shall be transferred under 
                subsection (b). If, after an additional 15-day period, 
                the Secretary of Labor, the Secretary of Education and 
                the National Board are unable to reach such agreement, 
                the revised workplan shall be deemed to be approved and 
                shall take effect on the day after the end of such 
                period. The functions described in paragraph (2)(C), as 
                determined in the revised workplan, shall be 
                transferred under subsection (b).
            (5) Determination by president.--
                    (A) In general.--In the event that the Secretary of 
                Labor and the Secretary of Education fail to reach 
                agreement regarding, and submit, a proposed workplan 
                described in paragraph (2), the President shall make 
                the determinations described in paragraph (2)(C). The 
                President shall delegate full responsibility for 
                administration described in section 181(b) (other than 
                the administration of subtitle B) to 1 of the 2 
                Secretaries. Such Secretary shall be considered to be 
                the appropriate Secretary for purposes of such 
                administration (other than the administration of 
                subtitle B) and shall have authority to carry out any 
                function that the Secretaries would otherwise be 
                authorized to carry out jointly.
                    (B) Transfers.--The functions described in 
                paragraph (2)(C), as determined by the President under 
                subparagraph (A), shall be transferred under subsection 
                (b). All positions of personnel that relate to a 
                covered activity and that, prior to the transfer, were 
                within the department headed by the other of the 2 
                Secretaries shall be separated from service as provided 
                in subsection (i)(2)(A).
    (d) Delegation and Assignment.--Except where otherwise expressly 
prohibited by law or otherwise provided by this section, the National 
Board may delegate any function transferred or granted to the Federal 
Partnership after the effective date of this section to such officers 
and employees of the Federal Partnership as the National Board may 
designate, and may authorize successive redelegations of such functions 
as may be necessary or appropriate. No delegation of functions by the 
National Board under this subsection or under any other provision of 
this section shall relieve such National Board of responsibility for 
the administration of such functions.
    (e) Reorganization.--The National Board may allocate or reallocate 
any function transferred or granted to the Federal Partnership after 
the effective date of this section among the officers of the Federal 
Partnership, and establish, consolidate, alter, or discontinue such 
organizational entities in the Federal Partnership as may be necessary 
or appropriate.
    (f) Rules.--The Secretary of Labor and the Secretary of Education, 
acting jointly on the advice of the Federal Partnership, may prescribe, 
in accordance with the provisions of chapters 5 and 6 of title 5, 
United States Code, such rules and regulations as the Secretary of 
Labor and the Secretary of Education, acting jointly on the advice of 
the Federal Partnership, determine to be necessary or appropriate to 
administer and manage the functions of the Federal Partnership.
    (g) Transfer and Allocations of Appropriations and Personnel.--
            (1) In general.--Except as otherwise provided in this 
        section, the personnel employed in connection with, and the 
        assets, liabilities, contracts, property, records, and 
        unexpended balances of appropriations, authorizations, 
        allocations, and other funds employed, used, held, arising 
        from, available to, or to be made available in connection with 
        the functions transferred by this section, subject to section 
        1531 of title 31, United States Code, shall be transferred to 
        the appropriate Secretary in the Federal Partnership. 
        Unexpended funds transferred pursuant to this subsection shall 
        be used only to carry out the functions of the Federal 
        Partnership.
            (2) Existing facilities and other federal resources.--
        Pursuant to paragraph (1), the Secretary of Labor and the 
        Secretary of Education shall supply such office facilities, 
        office supplies, support services, and related expenses as may 
        be minimally necessary to carry out the functions of the 
        Federal Partnership. None of the funds made available under 
        this title may be used for the construction of office 
        facilities for the Federal Partnership.
    (h) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this section, and to make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this section. The Director of the Office of Management and Budget shall 
provide for the termination of the affairs of all entities terminated 
by this section and for such further measures and dispositions as may 
be necessary to effectuate the objectives of this section.
    (i) Effect on Personnel.--
            (1) Termination of certain positions.--Positions whose 
        incumbents are appointed by the President, by and with the 
        advice and consent of the Senate, the functions of which are 
        transferred by this section, shall terminate on the effective 
        date of this section.
            (2) Actions.--
                    (A) In general.--The Secretary of Labor and the 
                Secretary of Education shall take such actions as may 
                be necessary, including reduction in force actions, 
                consistent with sections 3502 and 3595 of title 5, 
                United States Code, to ensure that the positions of 
                personnel that relate to a covered activity and are not 
                transferred under subsection (b) are separated from 
                service.
                    (B) Scope.--
                            (i) Initial reductions.--Not later than the 
                        date of the transfer under subsection (b), the 
                        Secretary of Labor and the Secretary of 
                        Education shall take the actions described in 
                        subparagraph (A) with respect to not less than 
                        \1/3\ of the number of positions of personnel 
                        that relate to a covered activity.
                            (ii) Subsequent reductions.--Not later than 
                        5 years after the date of the transfer under 
                        subsection (b), the Secretary of Labor and the 
                        Secretary of Education shall take the actions 
                        described in subparagraph (A)--
                                    (I) with respect to not less than 
                                60 percent of the number of positions 
                                of personnel that relate to a covered 
                                activity, unless the Secretaries submit 
                                (prior to the end of such 5-year 
                                period) a report to Congress 
                                demonstrating why such actions have not 
                                occurred; or
                                    (II) with respect to not less than 
                                40 percent of the number of positions 
                                of personnel that relate to a covered 
                                activity, if the Secretaries make the 
                                determination and submit the report 
                                referred to in subclause (I).
                            (iii) Calculation.--For purposes of 
                        calculating, under this subparagraph, the 
                        number of positions of personnel that relate to 
                        a covered activity, such number shall include 
                        the number of positions of personnel who are 
                        separated from service under subparagraph (A).
    (j) Savings Provisions.--
            (1) Suits not affected.--The provisions of this section 
        shall not affect suits commenced before the effective date of 
        this section, and in all such suits, proceedings shall be had, 
        appeals taken, and judgments rendered in the same manner and 
        with the same effect as if this section had not been enacted.
            (2) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Department of Labor or 
        the Department of Education, or by or against any individual in 
        the official capacity of such individual as an officer of the 
        Department of Labor or the Department of Education, shall abate 
        by reason of the enactment of this section.
    (k) Transition.--The National Board may utilize--
            (1) the services of officers, employees, and other 
        personnel of the Department of Labor or the Department of 
        Education, other than personnel of the Federal Partnership, 
        with respect to functions transferred to the Federal 
        Partnership by this section; and
            (2) funds appropriated to such functions;
for such period of time as may reasonably be needed to facilitate the 
orderly implementation of this section.
    (l) References.--A reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to--
            (1) the Secretary of Labor or the Secretary of Education 
        with regard to functions transferred under subsection (b), 
        shall be deemed to refer to the Federal Partnership; and
            (2) the Department of Labor or the Department of Education 
        with regard to functions transferred under subsection (b), 
        shall be deemed to refer to the Federal Partnership.
    (m) Additional Conforming Amendments.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of Congress and the Director of the 
        Office of Management and Budget, the Federal Partnership shall 
        prepare and submit to Congress recommended legislation 
        containing technical and conforming amendments to reflect the 
        changes made by this section.
            (2) Submission to congress.--Not later than March 31, 1997, 
        the Federal Partnership shall submit the recommended 
        legislation referred to in paragraph (1).
    (n) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), this section shall take effect on June 30, 1998.
            (2) Regulations and conforming amendments.--Subsections (f) 
        and (m) shall take effect on September 30, 1996.
            (3) Workplan.--Subsection (c) shall take effect on the date 
        of enactment of this Act.

SEC. 188. TRANSFERS TO OTHER FEDERAL AGENCIES AND OFFICES.

    (a) Transfer.--There are transferred to the appropriate receiving 
agency, in accordance with subsection (b), all functions that the 
Secretary of Labor, acting through the Employment and Training 
Administration, or the Secretary of Education, acting through the 
Office of Vocational and Adult Education, exercised before the 
effective date of this section (including all related functions of any 
officer or employee of the Employment and Training Administration or 
the Office of Vocational and Adult Education) that do not relate to a 
covered activity.
    (b) Determinations of Functions and Appropriate Receiving 
Agencies.--
            (1) Transition workplan.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary of Labor and the 
        Secretary of Education shall prepare and submit to the 
        President a proposed workplan that specifies the steps that the 
        Secretaries will take, during the period ending on July 1, 
        1998, to carry out the transfer described in subsection (a).
            (2) Contents.--The proposed workplan shall include, at a 
        minimum--
                    (A) a determination of the functions that officers 
                and employees of the Employment and Training 
                Administration and the Office of Vocational and Adult 
                Education carry out (as of the date of the submission 
                of the workplan) that do not relate to a covered 
                activity; and
                    (B) a determination of the appropriate receiving 
                agencies for the functions, based on factors including 
                increased efficiency and elimination of duplication of 
                functions.
            (3) Review.--
                    (A) In general.--Not later than 45 days after the 
                date of submission of the proposed workplan under 
                paragraph (1), the President shall--
                            (i) review and approve the workplan and 
                        submit the workplan to the Committee on 
                        Economic and Educational Opportunities of the 
                        House of Representatives and the Committee on 
                        Labor and Human Resources of the Senate; or
                            (ii) reject the workplan, prepare an 
                        alternative workplan that contains the 
                        determinations described in paragraph (2), and 
                        submit the alternative workplan to the 
                        Committee on Economic and Educational 
                        Opportunities of the House of Representatives 
                        and the Committee on Labor and Human Resources 
                        of the Senate.
                    (B) Functions transferred.--If the President 
                approves the proposed workplan, or prepares the 
                alternative workplan, the functions described in 
                paragraph (2)(A), as determined in such proposed or 
                alternative workplan, shall be transferred under 
                subsection (a) to the appropriate receiving agencies 
                described in paragraph (2)(B), as determined in such 
                proposed or alternative workplan.
                    (C) Special rule.--If the President takes no action 
                on the proposed workplan submitted under paragraph (1) 
                within the 45-day period described in subparagraph (A), 
                such workplan shall be deemed to be approved and shall 
                take effect on the day after the end of such period. 
                The functions described in paragraph (2)(A), as 
                determined in the proposed workplan, shall be 
                transferred under subsection (a) to the appropriate 
                receiving agencies described in paragraph (2)(B), as 
                determined in the proposed workplan.
            (4) Report.--Not later than July 1, 1998, the Secretary of 
        Labor and the Secretary of Education shall submit to the 
        appropriate committees of Congress information on the transfers 
        required by this section.
    (c) Application of Authorities.--
            (1) In general.--
                    (A) Application.--Subsection (a), and subsections 
                (d) through (m), of section 187 (other than subsections 
                (f), (g)(2), (i)(2), and (m)) shall apply to transfers 
                under this section, in the same manner and to the same 
                extent as the subsections apply to transfers under 
                section 187.
                    (B) Regulations and conforming amendments.--
                Subsections (f) and (m) of section 187 shall apply to 
                transfers under this section, in the same manner and to 
                the same extent as the subsections apply to transfers 
                under section 187.
            (2) References.--For purposes of the application of the 
        subsections described in paragraph (1) (other than subsections 
        (g)(2) and (i)(2) of section 187) to transfers under this 
        section--
                    (A) references to the Federal Partnership shall be 
                deemed to be references to the appropriate receiving 
                agency, as determined in the approved or alternative 
                workplan referred to in subsection (b)(3);
                    (B) references to the Secretary of Labor and the 
                Secretary of Education, the Director, or the National 
                Board shall be deemed to be references to the head of 
                the appropriate receiving agency; and
                    (C) references to transfers in section 187 shall be 
                deemed to include transfers under this section.
            (3) Administration.--Unexpended funds transferred pursuant 
        to this section shall be used only for the purposes for which 
        the funds were originally authorized and appropriated.
            (4) Continuing effect of legal documents.--All orders, 
        determinations, rules, regulations, permits, agreements, 
        grants, contracts, certificates, licenses, registrations, 
        privileges, and other administrative actions--
                    (A) that have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal agency or official of a Federal agency, or by a 
                court of competent jurisdiction, in the performance of 
                functions that are transferred under this section; and
                    (B) that are in effect on the effective date of 
                this section or were final before the effective date of 
                this section and are to become effective on or after 
                the effective date of this section;
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, the appropriate receiving 
        agency or other authorized official, a court of competent 
        jurisdiction, or by operation of law.
            (5) Proceedings not affected.--
                    (A) In general.--The provisions of this section 
                shall not affect any proceedings, including notices of 
                proposed rulemaking, or any application for any 
                license, permit, certificate, or financial assistance 
                pending before the Department of Labor or the 
                Department of Education on the date this section takes 
                effect, with respect to functions transferred by this 
                section.
                    (B) Continuation.--Such proceedings and 
                applications shall be continued. Orders shall be issued 
                in such proceedings, appeals shall be taken from the 
                orders, and payments shall be made pursuant to such 
                orders, as if this section had not been enacted, and 
                orders issued in any such proceedings shall continue in 
                effect until modified, terminated, superseded, or 
                revoked by a duly authorized official, by a court of 
                competent jurisdiction, or by operation of law.
                    (C) Construction.--Nothing in this paragraph shall 
                be deemed to prohibit the discontinuance or 
                modification of any such proceeding under the same 
                terms and conditions and to the same extent that such 
                proceeding could have been discontinued or modified if 
                this section had not been enacted.
            (6) Administrative actions relating to promulgation of 
        regulations.--Any administrative action relating to the 
        preparation or promulgation of a regulation by the Department 
        of Labor or the Department of Education relating to a function 
        transferred under this section may be continued by the 
        appropriate receiving agency with the same effect as if this 
        section had not been enacted.
    (d) Construction.--Nothing in this section shall be construed to 
require the transfer of any function described in subsection (b)(2)(A) 
to the Federal Partnership.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), this section shall take effect on June 30, 1998.
            (2) Regulations and conforming amendments.--Subsection 
        (c)(1)(B) shall take effect on September 30, 1996.
            (3) Workplan.--Subsection (b) shall take effect on the date 
        of enactment of this Act.

SEC. 189. ELIMINATION OF CERTAIN OFFICES.

    (a) Termination.--The Office of Vocational and Adult Education and 
the Employment and Training Administration shall terminate on July 1, 
1998.
    (b) Office of Vocational and Adult Education.--
            (1) Title 5, united states code.--Section 5315 of title 5, 
        United States Code, is amended by striking ``Assistant 
        Secretaries of Education (10)'' and inserting ``Assistant 
        Secretaries of Education (9)''.
            (2) Department of education organization act.--
                    (A) Section 202 of the Department of Education 
                Organization Act (20 U.S.C. 3412) is amended--
                            (i) in subsection (b)(1)--
                                    (I) by striking subparagraph (C); 
                                and
                                    (II) by redesignating subparagraphs 
                                (D) through (F) as subparagraphs (C) 
                                through (E), respectively;
                            (ii) by striking subsection (h); and
                            (iii) by redesignating subsection (i) as 
                        subsection (h).
                    (B) Section 206 of such Act (20 U.S.C. 3416) is 
                repealed.
                    (C) Section 402(c)(1) of the Improving America's 
                Schools Act of 1994 (20 U.S.C. 9001(c)(1)) is amended 
                by striking ``established under'' and all that follows 
                and inserting a semicolon.
            (3) Goals 2000: educate america act.--Section 931(h)(3)(A) 
        of the Goals 2000: Educate America Act (20 U.S.C. 
        6031(h)(3)(A)) is amended--
                    (A) by striking clause (iii); and
                    (B) by redesignating clauses (iv) and (v) as 
                clauses (iii) and (iv), respectively.
    (c) Employment and Training Administration.--
            (1) Title 5, united states code.--Section 5315 of title 5, 
        United States Code, is amended by striking ``Assistant 
        Secretaries of Labor (10)'' and inserting ``Assistant 
        Secretaries of Labor (9)''.
            (2) Veterans' benefits and programs improvement act of 
        1988.--Section 402(d)(3) of the Veterans' Benefits and Programs 
        Improvement Act of 1988 (29 U.S.C. 1721 note) is amended by 
        striking ``and under any other program administered by the 
        Employment and Training Administration of the Department of 
        Labor''.
            (3) Title 38, united states code.--Section 4110(d) of title 
        38, United States Code, is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8) through (12) as 
                paragraphs (7) through (11), respectively.
            (4) National and community service act of 1990.--The last 
        sentence of section 162(b) of the National and Community 
        Service Act of 1990 (42 U.S.C. 12622(b)) is amended by striking 
        ``or the Office of Job Training''.
    (d) United States Employment Service.--
            (1) Title 5, united states code.--Section 3327 of title 5, 
        United States Code, is amended--
                    (A) in subsection (a), by striking ``the employment 
                offices of the United States Employment Service'' and 
                inserting ``Governors''; and
                    (B) in subsection (b), by striking ``of the United 
                States Employment Service''.
            (2) Title 10, united states code.--
                    (A) Section 1143a(d) of title 10, United States 
                Code, is amended by striking paragraph (3).
                    (B) Section 2410k(b) of title 10, United States 
                Code, is amended by striking ``, and where appropriate 
                the Interstate Job Bank (established by the United 
                States Employment Service),''.
            (3) Internal revenue code of 1986.--Section 51 of the 
        Internal Revenue Code of 1986 is amended by striking subsection 
        (g).
            (4) National defense authorization act for fiscal year 
        1993.--Section 4468 of the National Defense Authorization Act 
        for Fiscal Year 1993 (29 U.S.C. 1662d-1 note) is repealed.
            (5) Title 38, united states code.--Section 4110(d) of title 
        38, United States Code (as amended by subsection (c)(3)), is 
        further amended--
                    (A) by striking paragraph (10); and
                    (B) by redesignating paragraph (11) as paragraph 
                (10).
            (6) Title 39, united states code.--
                    (A) Section 3202(a)(1) of title 39, United States 
                Code is amended--
                            (i) in subparagraph (D), by striking the 
                        semicolon and inserting ``; and'';
                            (ii) by striking subparagraph (E); and
                            (iii) by redesignating subparagraph (F) as 
                        subparagraph (E).
                    (B) Section 3203(b) of title 39, United States 
                Code, is amended by striking ``(1)(E), (2), and (3)'' 
                and inserting ``(2) and (3)''.
                    (C) Section 3206(b) of title 39, United States 
                Code, is amended by striking ``(1)(F)'' and inserting 
                ``(1)(E)''.
            (7) National and community service act of 1990.--Section 
        162(b) of the National and Community Service Act of 1990 (42 
        U.S.C. 12622(b)) (as amended by subsection (c)(4)) is further 
        amended by striking the last sentence.
    (e) Reorganization Plans.--Except with respect to functions 
transferred under section 188, the authority granted to the Employment 
and Training Administration, the Office of Vocational and Adult 
Education, or any unit of the Employment and Training Administration or 
the Office of Vocational and Adult Education by any reorganization plan 
shall terminate on July 1, 1998.

Subtitle E--Repeals of Employment and Training and Vocational and Adult 
                           Education Programs

SEC. 191. REPEALS.

    (a) Immediate Repeals.--The following provisions are repealed:
            (1) Section 204 of the Immigration Reform and Control Act 
        of 1986 (8 U.S.C. 1255a note).
            (2) Title II of Public Law 95-250 (92 Stat. 172).
            (3) The Displaced Homemakers Self-Sufficiency Assistance 
        Act (29 U.S.C. 2301 et seq.).
            (4) Section 211 of the Appalachian Regional Development Act 
        of 1965 (40 U.S.C. App. 211).
            (5) Subtitle C of title VII of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11441 et seq.).
            (6) Section 5322 of title 49, United States Code.
            (7) Subchapter I of chapter 421 of title 49, United States 
        Code.
    (b) Subsequent Repeals.--The following provisions are repealed:
            (1) The Adult Education Act (20 U.S.C. 1201 et seq.).
            (2) The Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.).
            (3) The School-to-Work Opportunities Act of 1994 (20 U.S.C. 
        6101 et seq.).
            (4) The Job Training Partnership Act (29 U.S.C. 1501 et 
        seq.).
            (5) Title VII of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11421 et seq.), other than subtitle C 
        of such title.
    (c) Effective Dates.--
            (1) Immediate repeals.--The repeals made by subsection (a) 
        shall take effect on the date of enactment of this Act.
            (2) Subsequent repeals.--The repeals made by subsection (b) 
        shall take effect on July 1, 1998.

SEC. 192. CONFORMING AMENDMENTS.

    (a) Immediate Repeals.--
            (1) References to section 204 of the immigration reform and 
        control act of 1986.--The table of contents for the Immigration 
        Reform and Control Act of 1986 is amended by striking the item 
        relating to section 204 of such Act.
            (2) References to title ii of public law 95-250.--Section 
        103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
                    (A) by striking the second sentence of subsection 
                (a); and
                    (B) by striking the second sentence of subsection 
                (b).
            (3) References to subtitle c of title vii of the stewart b. 
        mckinney homeless assistance act.--
                    (A) Section 762(a) of the Stewart B. McKinney 
                Homeless Assistance Act (42 U.S.C. 11472(a)) is 
                amended--
                            (i) by striking ``each of the following 
                        programs'' and inserting ``the emergency 
                        community services homeless grant program 
                        established in section 751''; and
                            (ii) by striking ``tribes:'' and all that 
                        follows and inserting ``tribes.''.
                    (B) The table of contents of such Act is amended by 
                striking the items relating to subtitle C of title VII 
                of such Act.
            (4) References to title 49, united states code.--
                    (A) Sections 5313(b)(1) and 5314(a)(1) of title 49, 
                United States Code, are amended by striking ``5317, and 
                5322'' and inserting ``and 5317''.
                    (B) The table of contents for chapter 53 of title 
                49, United States Code, is amended by striking the item 
                relating to section 5322.
    (b) Subsequent Repeals.--
            (1) References to the adult education act.--
                    (A) Subsection (b) of section 402 of the Refugee 
                Education Assistance Act (8 U.S.C. 1522 note) is 
                repealed.
                    (B) Paragraph (20) of section 3 of the Library 
                Services and Construction Act (20 U.S.C. 351a(20)) is 
                amended to read as follows:
            ``(20) The term `educationally disadvantaged adult' means 
        an individual who--
                    ``(A) is age 16 or older, or beyond the age of 
                compulsory school attendance under State law;
                    ``(B) is not enrolled in secondary school;
                    ``(C) demonstrates basic skills equivalent to or 
                below that of students at the fifth grade level; or
                    ``(D) has been placed in the lowest or beginning 
                level of an adult education program when that program 
                does not use grade level equivalencies as a measure of 
                students' basic skills.''.
                    (C)(i) Section 1202(c)(1) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6362(c)(1)) 
                is amended by striking ``Adult Education Act'' and 
                inserting ``Workforce Development Act of 1995''.
                    (ii) Section 1205(8)(B) of such Act (20 U.S.C. 
                6365(8)(B)) is amended by striking ``Adult Education 
                Act'' and inserting ``Workforce Development Act of 
                1995''.
                    (iii) Section 1206(a)(1)(A) of such Act (20 U.S.C. 
                6366(a)(1)(A)) is amended by striking ``an adult basic 
                education program under the Adult Education Act'' and 
                inserting ``adult education activities under the 
                Workforce Development Act of 1995''.
                    (iv) Section 3113(1) of such Act (20 U.S.C. 
                6813(1)) is amended by striking ``section 312 of the 
                Adult Education Act'' and inserting ``section 3 of the 
                Workforce Development Act of 1995''.
                    (v) Section 9161(2) of such Act (20 U.S.C. 7881(2)) 
                is amended by striking ``section 312(2) of the Adult 
                Education Act'' and inserting ``section 3 of the 
                Workforce Development Act of 1995''.
                    (D) Section 203(b)(8) of the Older Americans Act 
                (42 U.S.C. 3013(b)(8)) is amended by striking ``Adult 
                Education Act'' and inserting ``Workforce Development 
                Act of 1995''.
            (2) References to the carl d. perkins vocational and 
        applied technology education act.--
                    (A) Section 245A(h)(4)(C) of the Immigration and 
                Nationality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by 
                striking ``Vocational Education Act of 1963'' and 
                inserting ``Workforce Development Act of 1995''.
                    (B) Section 4461 of the National Defense 
                Authorization Act for Fiscal Year 1993 (10 U.S.C. 1143 
                note) is amended--
                            (i) by striking paragraph (4); and
                            (ii) by redesignating paragraphs (5) and 
                        (6) as paragraphs (4) and (5), respectively.
                    (C) Section 626(g) of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1425(g)) is 
                amended--
                            (i) by striking ``1973,'' and inserting 
                        ``1973 and''; and
                            (ii) by striking ``, and the Carl D. 
                        Perkins Vocational and Applied Technology 
                        Education Act''.
                    (D) The Goals 2000: Educate America Act (20 U.S.C. 
                5801 et seq.) is amended--
                            (i) in section 306 (20 U.S.C. 5886)--
                                    (I) in subsection (c)(1)(A), by 
                                striking all beginning with ``which 
                                process'' through ``Act'' and inserting 
                                ``which process shall include 
                                coordination with the benchmarks 
                                described in section 121(c)(2) of the 
                                Workforce Development Act of 1995''; 
                                and
                                    (II) in subsection (l), by striking 
                                ``Carl D. Perkins Vocational and 
                                Applied Technology Education Act'' and 
                                inserting ``Workforce Development Act 
                                of 1995''; and
                            (ii) in section 311(b) (20 U.S.C. 5891(b)), 
                        by striking paragraph (6).
                    (E) The Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 6301 et seq.) is amended--
                            (i) in section 1114(b)(2)(C)(v) (20 U.S.C. 
                        6314(b)(2)(C)(v)), by striking ``Carl D. 
                        Perkins Vocational and Applied Technology 
                        Education Act,'' and inserting ``Workforce 
                        Development Act of 1995'';
                            (ii) in section 9115(b)(5) (20 U.S.C. 
                        7815(b)(5)), by striking ``Carl D. Perkins 
                        Vocational and Applied Technology Education 
                        Act'' and inserting ``Workforce Development Act 
                        of 1995'';
                            (iii) in section 14302(a)(2) (20 U.S.C. 
                        8852(a)(2))--
                                    (I) by striking subparagraph (C); 
                                and
                                    (II) by redesignating subparagraphs 
                                (D), (E), and (F) as subparagraphs (C), 
                                (D), and (E), respectively; and
                            (iv) in the matter preceding subparagraph 
                        (A) of section 14307(a)(1) (20 U.S.C. 
                        8857(a)(1)), by striking ``Carl D. Perkins 
                        Vocational and Applied Technology Education 
                        Act'' and inserting ``Workforce Development Act 
                        of 1995''.
                    (F) Section 533(c)(4)(A) of the Equity in 
                Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 
                note) is amended by striking ``(20 U.S.C. 2397h(3)'' 
                and inserting ``, as such section was in effect on the 
                day preceding the date of enactment of the Workforce 
                Development Act of 1995''.
                    (G) Section 563 of the Improving America's Schools 
                Act of 1994 (20 U.S.C. 6301 note) is amended by 
                striking ``the date of enactment of an Act 
                reauthorizing the Carl D. Perkins Vocational and 
                Applied Technology Education Act (20 U.S.C. 2301 et 
                seq.)'' and inserting ``July 1, 1998''.
                    (H) Section 135(c)(3)(B) of the Internal Revenue 
                Code of 1986 (26 U.S.C. 135(c)(3)(B)) is amended--
                            (i) by striking ``subparagraph (C) or (D) 
                        of section 521(3) of the Carl D. Perkins 
                        Vocational Education Act'' and inserting 
                        ``subparagraph (C) or (D) of section 3(3) of 
                        the Workforce Development Act of 1995''; and
                            (ii) by striking ``any State (as defined in 
                        section 521(27) of such Act)'' and inserting 
                        ``any State or outlying area (as the terms 
                        `State' and `outlying area' are defined in 
                        section 3 of such Act)''.
                    (I) Section 214(c) of the Appalachian Regional 
                Development Act of 1965 (40 U.S.C. App. 214(c)) is 
                amended by striking ``Carl D. Perkins Vocational 
                Education Act'' and inserting ``Workforce Development 
                Act of 1995''.
                    (J) Section 104 of the Vocational Education 
                Amendments of 1968 (82 Stat. 1091) is amended by 
                striking ``section 3 of the Carl D. Perkins Vocational 
                Education Act'' and inserting ``the Workforce 
                Development Act of 1995''.
                    (K) The Older Americans Act of 1965 (42 U.S.C. 3001 
                et seq.) is amended--
                            (i) in section 502(b)(1)(N)(i) (42 U.S.C. 
                        3056(b)(1)(N)(i)), by striking ``or the Carl D. 
                        Perkins Vocational and Applied Technology 
                        Education Act (20 U.S.C. 2301 et seq.)''; and
                            (ii) in section 505(d)(2) (42 U.S.C. 
                        3056c(d)(2))--
                                    (I) by striking ``the Secretary of 
                                Education'' and inserting ``the 
                                Workforce Development Partnership'';
                                    (II) by striking ``employment and 
                                training programs'' and inserting 
                                ``workforce development activities''; 
                                and
                                    (III) by striking ``the Carl D. 
                                Perkins Vocational and Applied 
                                Technology Education Act (20 U.S.C. 
                                2301 et seq.)'' and inserting ``the 
                                Workforce Development Act of 1995''.
            (3) School-to-work opportunities act of 1994.--
                    (A) Section 1114(b)(2)(C)(v) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                6314(b)(2)(C)(v)) (as amended in paragraph (2)(E)(i)) 
                is further amended by striking ``the School-to-Work 
                Opportunities Act of 1994,''.
                    (B) Section 5204 of such Act (20 U.S.C. 7234) is 
                amended--
                            (i) by striking paragraph (4); and
                            (ii) by redesignating paragraphs (5) 
                        through (7) as paragraphs (4) through (6), 
                        respectively.
                    (C) Section 9115(b)(5) of such Act (20 U.S.C. 
                7815(b)(5)) (as amended in paragraph (2)(E)(ii)) is 
                further amended by striking ``the School-to-Work 
                Opportunities Act of 1994 and''.
                    (D) Section 14302(a)(2) of such Act (20 U.S.C. 
                8852(a)(2)) (as amended in paragraph (2)(E)(iii)) is 
                further amended--
                            (i) in subparagraph (C) (as redesignated in 
                        such paragraph), by striking the semicolon and 
                        inserting ``; and'';
                            (ii) by striking subparagraph (D) (as 
                        redesignated in such paragraph); and
                            (iii) by redesignating subparagraph (E) (as 
                        redesignated in such paragraph) as subparagraph 
                        (D).
                    (E) Section 14307(a)(1) of such Act (20 U.S.C. 
                8857(a)(1)) (as amended in paragraph (2)(E)(iv)) is 
                further amended by striking ``, the School-to-Work 
                Opportunities Act of 1994,''.
                    (F) Section 14701(b)(1) of such Act (20 U.S.C. 
                8941(b)(1)) is amended--
                            (i) in subparagraph (B)(ii), by striking 
                        ``, and the School-to-Work Opportunities Act of 
                        1994, and be coordinated with evaluations of 
                        such Acts'' and inserting ``and be coordinated 
                        with evaluations of such Act''; and
                            (ii) in subparagraph (C)(ii), by striking 
                        ``, the School-to-Work Opportunities Act of 
                        1994,''.
            (4) Job training partnership act.--
                    (A) Section 3502(d) of title 5, United States Code, 
                is amended--
                            (i) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking clause (i) and inserting the 
                                following:
                    ``(i) the Governor of the appropriate State; and''; 
                and
                                    (II) in subparagraph (B)(iii), by 
                                striking ``other services under the Job 
                                Training Partnership Act'' and 
                                inserting ``other workforce development 
                                activities under the Workforce 
                                Development Act of 1995''; and
                            (ii) in paragraph (4), in the second 
                        sentence, by striking ``Secretary of Labor on 
                        matters relating to the Job Training 
                        Partnership Act'' and inserting ``Workforce 
                        Development Partnership on matters relating to 
                        the Workforce Development Act of 1995''.
                    (B) Section 5(l) of the Food Stamp Act of 1977 (7 
                U.S.C. 2014(l)) is amended by striking 
                ``Notwithstanding section 142(b) of the Job Training 
                Partnership Act (29 U.S.C. 1552(b)), earnings to 
                individuals participating in on-the-job training 
                programs under section 204(b)(1)(C) or section 
                264(c)(1)(A) of the Job Training Partnership Act'' and 
                inserting ``Earnings to individuals participating in 
                on-the-job training under the Workforce Development Act 
                of 1995''.
                    (C) Section 6 of the Food Stamp Act of 1977 (7 
                U.S.C. 2015) is amended--
                            (i) in subsection (d)(4)(N), by striking 
                        ``the State public employment offices and 
                        agencies operating programs under the Job 
                        Training Partnership Act'' and inserting ``the 
                        State employment service offices and other 
                        State agencies and entities providing workforce 
                        employment activities under the Workforce 
                        Development Act of 1995''; and
                            (ii) in subsection (e)(3), by striking 
                        subparagraph (A) and inserting the following:
                    ``(A) a program relating to workforce employment 
                activities carried out under the Workforce Development 
                Act of 1995;''.
                    (D) The second sentence of section 17(b)(2) of the 
                Food Stamp Act of 1977 (7 U.S.C. 2026(b)(2)) is 
                amended--
                            (i) by striking ``to accept an offer of 
                        employment from a political subdivision or a 
                        prime sponsor pursuant to the Comprehensive 
                        Employment and Training Act of 1973, as amended 
                        (29 U.S.C. 812),'' and inserting ``to accept an 
                        offer of employment from a service provider 
                        carrying out workforce employment activities 
                        through a program carried out under the 
                        Workforce Development Act of 1995,''; and
                            (ii) by striking ``: Provided, That all of 
                        the political subdivision's'' and all that 
                        follows and inserting ``, if all of the jobs 
                        supported under the program have been made 
                        available to participants in the program before 
                        the service provider providing the jobs extends 
                        an offer of employment under this paragraph, 
                        and if the service provider, in employing the 
                        person, complies with the requirements of 
                        Federal law that relate to the program.''.
                    (E) Section 245A(h)(4)(F) of the Immigration and 
                Nationality Act (8 U.S.C. 1255a(h)(4)(F)) is amended by 
                striking ``The Job Training Partnership Act.'' and 
                inserting ``The Workforce Development Act of 1995.''.
                    (F) Section 402(a)(4) of the Refugee Education 
                Assistance Act of 1980 (8 U.S.C. 1522 note) is amended 
                by striking ``the Comprehensive Employment and Training 
                Act of 1973'' and inserting ``the Workforce Development 
                Act of 1995''.
                    (G) Section 4461(1) of the National Defense 
                Authorization Act for Fiscal Year 1993 (10 U.S.C. 1143 
                note) is amended by striking ``The Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.).'' and 
                inserting ``The Workforce Development Act of 1995.''.
                    (H) Section 4471 of the National Defense 
                Authorization Act for Fiscal Year 1993 (10 U.S.C. 2501 
                note) is amended--
                            (i) in subsection (d)(2), by striking ``the 
                        State dislocated'' and all that follows through 
                        ``and the chief'' and inserting ``the Governor 
                        of the appropriate State and the chief'';
                            (ii) in subsection (e)--
                                    (I) in the first sentence, by 
                                striking ``for training, adjustment 
                                assistance, and employment services'' 
                                and all that follows through ``except 
                                where'' and inserting ``to participate 
                                in workforce employment activities 
                                carried out under the Workforce 
                                Development Act of 1995, except in a 
                                case in which''; and
                                    (II) by striking the second 
                                sentence; and
                            (iii) in subsection (f)--
                                    (I) in paragraph (3)--
                                            (aa) in subparagraph (B), 
                                        by striking ``the State 
                                        dislocated'' and all that 
                                        follows through ``and the 
                                        chief'' and inserting ``the 
                                        Governor of the appropriate 
                                        State and the chief''; and
                                            (bb) in subparagraph (C), 
                                        by striking ``grantee under 
                                        section 325(a) or 325A(a)'' and 
                                        all that follows through 
                                        ``employment services'' and 
                                        inserting ``recipient of 
                                        assistance under the Workforce 
                                        Development Act of 1995 
                                        providing workforce employment 
                                        activities''; and
                                    (II) in paragraph (4), by striking 
                                ``for training,'' and all that follows 
                                through ``beginning'' and inserting 
                                ``to participate in workforce 
                                employment activities under the 
                                Workforce Development Act of 1995 
                                beginning''.
                    (I) Section 4492(b) of the National Defense 
                Authorization Act for Fiscal Year 1993 (10 U.S.C. 1143 
                note) is amended by striking ``the Job Training 
                Partnership Act'' and inserting ``the Workforce 
                Development Act of 1995''.
                    (J) Section 4003(5)(C) of the National Defense 
                Authorization Act for Fiscal Year 1991 (10 U.S.C. 2391 
                note) is amended by inserting before the period the 
                following: ``, as in effect on the day before the date 
                of enactment of the Workforce Development Act of 
                1995''.
                    (K) Section 1333(c)(2)(B) of the National Defense 
                Authorization Act for Fiscal Year 1994 (10 U.S.C. 2701 
                note) is amended by striking ``Private industry 
                councils (as described in section 102 of the Job 
                Training Partnership Act (29 U.S.C. 1512)).'' and 
                inserting ``Local partnerships or local workforce 
                development boards, as appropriate, established under 
                section 118 of the Workforce Development Act of 
                1995.''.
                    (L) The fourth sentence of section 7(j)(13)(E) of 
                the Small Business Act (15 U.S.C. 636(j)(13)(E)) is 
                amended by striking ``the Job Training Partnership Act 
                (29 U.S.C. 1501 et seq.)'' and inserting ``the 
                Workforce Development Act of 1995''.
                    (M) Section 4(f)(2)(B) of the Employment Act of 
                1946 (15 U.S.C. 1022a(f)(2)(B)) is amended by striking 
                ``and include these in the annual Employment and 
                Training Report of the President required under section 
                705(a) of the Comprehensive Employment and Training Act 
                of 1973 (hereinafter in this Act referred to as 
                `CETA')'' and inserting ``and prepare and submit to the 
                President an annual report containing the 
                recommendations''.
                    (N) Section 206 of the Full Employment and Balanced 
                Growth Act of 1978 (15 U.S.C. 3116) is amended--
                            (i) in subsection (b)--
                                    (I) in the matter preceding 
                                paragraph (1), by striking ``CETA'' and 
                                inserting ``the Workforce Development 
                                Act of 1995''; and
                                    (II) in paragraph (1), by striking 
                                ``(including use of section 110 of CETA 
                                when necessary)''; and
                            (ii) in subsection (c)(1), by striking 
                        ``CETA'' and inserting ``activities carried out 
                        under the Workforce Development Act of 1995''.
                    (O) Section 401(d) of the Full Employment and 
                Balanced Growth Act of 1978 (15 U.S.C. 3151(d)) is 
                amended by striking ``include, in the annual Employment 
                and Training Report of the President provided under 
                section 705(a) of CETA,'' and inserting ``include, in 
                the annual report referred to in section 4(f)(2)(B) of 
                the Employment Act of 1946 (15 U.S.C. 
                1022a(f)(2)(B)),''.
                    (P) Subsections (a), (b), and (c) of section 665 of 
                title 18, United States Code are amended by striking 
                ``the Comprehensive Employment and Training Act or the 
                Job Training Partnership Act'' and inserting ``the 
                Workforce Development Act of 1995''.
                    (Q) Section 239(e) of the Trade Act of 1974 (19 
                U.S.C. 2311(e)) is amended by striking ``under title 
                III of the Job Training Partnership Act'' and inserting 
                ``made available under the Workforce Development Act of 
                1995''.
                    (R) Section 480(b)(14) of the Higher Education Act 
                of 1965 (20 U.S.C. 1087vv(b)(14)) is amended by 
                striking ``Job Training Partnership Act noneducational 
                benefits'' and inserting ``benefits received through 
                participation in workforce employment activities under 
                the Workforce Development Act of 1995''.
                    (S) Section 626 of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1425) is 
                amended--
                            (i) in the first sentence of subsection 
                        (a), by striking ``(including the State job 
                        training coordinating councils and service 
                        delivery area administrative entities 
                        established under the Job Training Partnership 
                        Act)'' and inserting ``(including any statewide 
                        workforce development boards established under 
                        section 105 of the Workforce Development Act of 
                        1995 and local entities, as defined in section 
                        3 of the Workforce Development Act of 1995)'';
                            (ii) in subsection (e)--
                                    (I) in paragraphs (3)(C) and 
                                (4)(A)(iii), by striking ``local 
                                Private Industry Councils (PICS) 
                                authorized by the Job Training 
                                Partnership Act (JTPA),'' and inserting 
                                ``local partnerships or local workforce 
                                development boards, as appropriate, 
                                established under section 118 of the 
                                Workforce Development Act of 1995,''; 
                                and
                                    (II) in clauses (iii), (iv), (v), 
                                and (vii) of paragraph (4)(B), by 
                                striking ``PICS authorized by the 
                                JTPA'' and inserting ``local 
                                partnerships or local workforce 
                                development boards, as appropriate, 
                                established under section 118 of the 
                                Workforce Development Act of 1995''; 
                                and
                            (iii) in subsection (g), by striking ``the 
                        Job Training Partnership Act (JTPA),'' and 
                        inserting ``the Workforce Development Act of 
                        1995,''.
                    (T) Subsection (a) of section 302 of the Department 
                of Education Organization Act (20 U.S.C. 3443(a)) (as 
                redesignated in section 271(a)(2) of the Improving 
                America's Schools Act of 1994) is amended by striking 
                ``under section 303(c)(2) of the Comprehensive 
                Employment and Training Act'' and inserting ``relating 
                to such education''.
                    (U) Section 504(c)(3) of the National Skill 
                Standards Act of 1994 (20 U.S.C. 5934(c)(3)) is amended 
                by striking ``the Capacity Building and Information and 
                Dissemination Network established under section 453(b) 
                of the Job Training Partnership Act (29 U.S.C. 1733(b)) 
                and''.
                    (V) Section 508(1) of the National Skill Standards 
                Act of 1994 (20 U.S.C. 5938(1)) is amended to read as 
                follows:
            ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness that is representative of a 
        community or a significant segment of a community and that 
        provides workforce development activities, as defined in 
        section 3 of the Workforce Development Act of 1995.''.
                    (W) Section 1205(8)(B) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6365(8)(B)) 
                (as amended in paragraph (1)(C)(ii)) is further amended 
                by striking ``, the Individuals with Disabilities 
                Education Act, and the Job Training Partnership Act'' 
                and inserting ``and the Individuals with Disabilities 
                Education Act''.
                    (X) Section 1414(c)(8) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6434(c)(8)) 
                is amended by striking ``programs under the Job 
                Training Partnership Act,'' and inserting ``programs 
                under the Workforce Development Act of 1995,''.
                    (Y) Section 1423(9) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6453(9)) is amended by 
                striking ``programs under the Job Training and 
                Partnership Act'' and inserting ``programs under the 
                Workforce Development Act of 1995''.
                    (Z) Section 1425(9) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6455(9)) is amended by 
                striking ``, such as funds under the Job Training 
                Partnership Act,'' and inserting ``, such as funds made 
                available under the Workforce Development Act of 
                1995,''.
                    (AA) Section 5303(b)(2)(B) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                7263(b)(2)(B)) is amended by striking ``private 
                industry council (established under the Job Training 
                Partnership Act),'' and inserting ``local partnership 
                or local workforce development board, as appropriate, 
                established under section 118 of the Workforce 
                Development Act of 1995,''.
                    (BB) The last sentence of section 505 of the 
                FREEDOM Support Act (22 U.S.C. 5855) is amended by 
                striking ``, through the Defense Conversion'' and all 
                that follows through ``or through'' and inserting ``or 
                through''.
                    (CC) Section 42(i)(3)(D)(i)(II) of the Internal 
                Revenue Code of 1986 is amended by striking 
                ``assistance under'' and all that follows through ``or 
                under'' and inserting ``assistance under the Workforce 
                Development Act of 1995 or under''.
                    (DD) Section 51(d) of the Internal Revenue Code of 
                1986 is amended by striking paragraph (10).
                    (EE) Section 6334(d)(12) of the Internal Revenue 
                Code of 1986 is amended to read as follows:
            ``(12) Assistance under the workforce development act of 
        1995.--Any amount payable to a participant in workforce 
        development activities carried out under the Workforce 
        Development Act of 1995 from funds appropriated under such 
        Act.''.
                    (FF) Section 204(b) of the Emergency Jobs and 
                Unemployment Assistance Act of 1974 (26 U.S.C. 3304 
                note) is amended by striking ``designate as an area'' 
                and all that follows and inserting ``designate as an 
                area under this section an area that is a substate area 
                under the Workforce Development Act of 1995.''.
                    (GG) Section 223 of the Emergency Jobs and 
                Unemployment Assistance Act of 1974 (26 U.S.C. 3304 
                note) is amended--
                            (i) in paragraph (3), by striking 
                        ``assistance provided'' and all that follows 
                        and inserting ``assistance provided under the 
                        Workforce Development Act of 1995;''; and
                            (ii) in paragraph (4), by striking ``funds 
                        provided'' and all that follows and inserting 
                        ``funds provided under the Workforce 
                        Development Act of 1995;''.
                    (HH) Section 612(b) of the Rehabilitation Act of 
                1973 (29 U.S.C. 795a(b)) is amended by striking ``the 
                Job Training Partnership Act'' and inserting ``the 
                Workforce Development Act of 1995''.
                    (II) Section 701 of the Job Training Reform 
                Amendments of 1992 (29 U.S.C. 1501 note) is repealed.
                    (JJ) Section 7 of Public Law 98-524 (29 U.S.C. 1551 
                note) is repealed.
                    (KK) Section 402 of the Veterans' Benefits and 
                Programs Improvement Act of 1988 (29 U.S.C. 1721 note) 
                is amended--
                            (i) in subsection (a), by striking ``title 
                        III of the Job Training Partnership Act (29 
                        U.S.C. 1651 et seq.)'' and inserting ``the 
                        Workforce Development Act of 1995'';
                            (ii) in subsection (c), by striking ``the 
                        office designated or created under section 
                        322(b) of the Job Training Partnership Act'' 
                        and inserting ``the Workforce Development 
                        Partnership''; and
                            (iii) in subsection (d)--
                                    (I) in paragraph (1), by striking 
                                ``under--'' and all that follows 
                                through ``the Veterans''' and inserting 
                                ``under the Veterans'''; and
                                    (II) in paragraph (2), by striking 
                                ``Employment and training'' and all 
                                that follows and inserting ``Workforce 
                                employment activities under the 
                                Workforce Development Act of 1995.''.
                    (LL) Section 13(b) of the Veterans' Job Training 
                Act (29 U.S.C. 1721 note) is amended by striking 
                ``assistance under the Job Training Partnership Act (29 
                U.S.C. 1501 et seq.)'' and inserting ``assistance under 
                the Workforce Development Act of 1995''.
                    (MM) Section 14(b)(3)(B)(i)(II) of the Veterans' 
                Job Training Act (29 U.S.C. 1721 note) is amended by 
                striking ``under part C of title IV of the Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``under the Workforce Development Act of 
                1995''.
                    (NN) Section 15(c)(2) of the Veterans' Job Training 
                Act (29 U.S.C. 1721 note) is amended--
                            (i) in the second sentence, by striking 
                        ``part C of title IV of the Job Training 
                        Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                        inserting ``the Workforce Development Act of 
                        1995''; and
                            (ii) in the third sentence, by striking 
                        ``title III of''.
                    (OO) Section 3(a)(2) of the Worker Adjustment and 
                Retraining Notification Act (29 U.S.C. 2102(a)(2)) is 
                amended by striking ``to the State'' and all that 
                follows through ``and the chief'' and inserting ``to 
                the Governor of the appropriate State and the chief''.
                    (PP) Section 6703(a) of title 31, United States 
                Code, is amended by striking paragraph (4) and 
                inserting the following:
            ``(4) Programs under the Workforce Development Act of 
        1995.''.
                    (QQ) Section 512 of the Veterans' Rehabilitation 
                and Education Amendments of 1980 (38 U.S.C. 4101 note) 
                is amended by striking ``the Comprehensive Employment 
                and Training Act (29 U.S.C. et seq.),'' and inserting 
                ``the Workforce Development Act of 1995,''.
                    (RR) Section 4102A(d) of title 38, United States 
                Code, is amended by striking ``the Job Training 
                Partnership Act'' and inserting ``the Workforce 
                Development Act of 1995''.
                    (SS) Section 4103A(c)(4) of title 38, United States 
                Code, is amended by striking ``(including part C of 
                title IV of the Job Training Partnership Act (29 U.S.C. 
                1501 et seq.))''.
                    (TT) Section 4213 of title 38, United States Code, 
                is amended by striking ``any employment or training 
                program assisted under the Job Training Partnership Act 
                (29 U.S.C. 1501 et seq.),'' and inserting ``any 
                workforce employment activity carried out under the 
                Workforce Development Act of 1995,''.
                    (UU) Section 23 of the United States Housing Act of 
                1937 (42 U.S.C. 1437u) is amended--
                            (i) in subsection (b)(2)(A), by striking 
                        ``the Job Training'' and all that follows 
                        through ``or the'' and inserting ``the 
                        Workforce Development Act of 1995 or the'';
                            (ii) in the first sentence of subsection 
                        (f)(2), by striking ``programs under the'' and 
                        all that follows through ``and the'' and 
                        inserting ``programs under the Workforce 
                        Development Act of 1995 and the''; and
                            (iii) in subsection (g)--
                                    (I) in paragraph (2), by striking 
                                ``programs under the'' and all that 
                                follows through ``and the'' and 
                                inserting ``programs under the 
                                Workforce Development Act of 1995 and 
                                the''; and
                                    (II) in paragraph (3)(H), by 
                                striking ``program under'' and all that 
                                follows through ``and any other'' and 
                                inserting ``program under the Workforce 
                                Development Act of 1995 and any 
                                other''.
                    (VV) Section 504(c)(3) of the Housing Act of 1949 
                (42 U.S.C. 1474(c)(3)) is amended by striking 
                ``pursuant to'' and all that follows through ``or the'' 
                and inserting ``pursuant to the Workforce Development 
                Act of 1995 or the''.
                    (WW) Section 203 of the Older Americans Act of 1965 
                (42 U.S.C. 3013) is amended--
                            (i) in subsection (a)(2), by striking the 
                        last sentence and inserting the following: ``In 
                        particular, the Secretary of Labor and the 
                        Secretary of Education shall consult and 
                        cooperate with the Assistant Secretary in 
                        carrying out the Workforce Development Act of 
                        1995.''; and
                            (ii) in subsection (b), by striking 
                        paragraph (1) and inserting the following:
            ``(1) the Workforce Development Act of 1995,''.
                    (XX) Section 502 of the Older Americans Act of 1965 
                (42 U.S.C. 3056) is amended--
                            (i) in subsection (b)(1)(N)(i), by striking 
                        ``the Job Training Partnership Act (29 U.S.C. 
                        1501 et seq.)'' and inserting ``the Workforce 
                        Development Act of 1995''; and
                            (ii) in subsection (e)(2)(C), by striking 
                        ``programs carried out under section 124 of the 
                        Job Training Partnership Act (29 U.S.C. 1534)'' 
                        and inserting ``workforce employment activities 
                        carried out under the Workforce Development Act 
                        of 1995''.
                    (YY) Section 503(b)(1) of the Older Americans Act 
                of 1995 (42 U.S.C. 3056a(b)(1)) is amended by striking 
                ``the Job Training Partnership Act,'' each place it 
                appears and inserting ``the Workforce Development Act 
                of 1995,''.
                    (ZZ) Section 510 of the Older Americans Act of 1995 
                (42 U.S.C. 3056h) is amended by striking ``the Job 
                Training Partnership Act, eligible individuals shall be 
                deemed to satisfy the requirements of sections 203 and 
                204(d)(5)(A) of such Act (29 U.S.C. 1603, 
                1604(d)(5)(A))'' and inserting ``the Workforce 
                Development Act of 1995, eligible individuals shall be 
                deemed to satisfy the requirements of such Act''.
                    (AAA) Section 1801(b)(3) of the Omnibus Crime 
                Control and Safe Streets Act of 1968 (42 U.S.C. 
                3796ee(b)(3)) is amended by striking ``activities 
                carried out under part B of title IV of the Job 
                Training Partnership Act (relating to Job Corps) (29 
                U.S.C. 1691 et seq.)'' and inserting ``activities 
                carried out under chapter 2 of subtitle B of the 
                Workforce Development Act of 1995''.
                    (BBB) The second sentence of section 2(a) of the 
                Environmental Programs Assistance Act of 1984 (42 
                U.S.C. 4368a(a)) is amended by striking ``and title IV 
                of the Job Training Partnership Act'' and inserting 
                ``and the Workforce Development Act of 1995''.
                    (CCC) The second sentence of section 103(d) of the 
                Domestic Volunteer Service Act of 1973 (42 U.S.C. 
                4953(d)) is amended to read as follows: ``Whenever 
                feasible, such efforts shall be coordinated with a 
                local partnership or local workforce development board, 
                as appropriate, established under section 118 of the 
                Workforce Development Act of 1995.''.
                    (DDD) Subsections (c)(2) and (d)(2) of section 109 
                of the Domestic Volunteer Service Act of 1973 (42 
                U.S.C. 4959) is amended by striking ``administrative 
                entities designated to administer job training plans 
                under the Job Training Partnership Act'' and inserting 
                ``local entities, as defined in section 3 of the 
                Workforce Development Act of 1995''.
                    (EEE) Section 304(c)(1) of the Age Discrimination 
                Act of 1975 (42 U.S.C. 6103(c)(1)) is amended by 
                striking ``the Comprehensive Employment and Training 
                Act of 1974 (29 U.S.C. 801, et seq.), as amended,'' and 
                inserting ``the Workforce Development Act of 1995''.
                    (FFF) Section 414(b)(3) of the Energy Conservation 
                and Production Act (42 U.S.C. 6864(b)(3)) is amended by 
                striking ``the Comprehensive Employment and Training 
                Act of 1973'' and inserting ``the Workforce Development 
                Act of 1995''.
                    (GGG) Section 233 of the National Energy 
                Conservation Policy Act (42 U.S.C. 6873) is amended, in 
                the matter preceding paragraph (1), by striking ``the 
                Comprehensive Employment and Training Act of 1973'' and 
                inserting ``the Workforce Development Act of 1995''.
                    (HHH) Section 3161(c)(6) of the National Defense 
                Authorization Act for Fiscal Year 1993 (42 U.S.C. 
                7274h(c)(6)) is amended by striking subparagraph (A) 
                and inserting the following:
                    ``(A) programs carried out jointly by the Secretary 
                of Labor and the Secretary of Education under the 
                Workforce Development Act of 1995;''.
                    (III) Section 617(a)(3) of the Community Economic 
                Development Act of 1981 (42 U.S.C. 9806(a)(3)) is 
                amended by striking ``activities such as those 
                described in the Comprehensive Employment and Training 
                Act'' and inserting ``workforce employment activities 
                described in the Workforce Development Act of 1995''.
                    (JJJ) Section 103(b)(2) of the Stewart B. McKinney 
                Homeless Assistance Act (42 U.S.C. 11302(b)(2)) is 
                amended by striking ``the Job Training Partnership 
                Act'' and inserting ``the Workforce Development Act of 
                1995''.
                    (KKK) Section 177(d) of the National and Community 
                Service Act of 1990 (42 U.S.C. 12637(d)) is amended to 
                read as follows:
    ``(d) Treatment of Benefits.--Allowances, earnings, and payments to 
individuals participating in programs that receive assistance under 
this title shall not be considered to be income for the purposes of 
determining eligibility for and the amount of income transfer and in-
kind aid furnished under any Federal or federally assisted program 
based on need, other than as provided under the Social Security Act (42 
U.S.C. 301 et seq.).''.
                    (LLL) Section 198C of the National and Community 
                Service Act of 1990 (42 U.S.C. 12653c) is amended--
                            (i) in subsection (b)(1), by striking ``a 
                        military installation described in section 
                        325(e)(1) of the Job Training Partnership Act 
                        (29 U.S.C. 1662d(e)(1)).'' and inserting ``a 
                        military installation being closed or realigned 
                        under--
                    ``(A) the Defense Base Closure and Realignment Act 
                of 1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note); and
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).''; and
                            (ii) in subsection (e)(1)(B), by striking 
                        clause (iii) and inserting the following:
                    ``(iii) an at-risk youth (as defined in section 131 
                of the Workforce Development Act of 1995).''.
                    (MMM) Section 199L(a) of the National and Community 
                Service Act of 1990 (42 U.S.C. 12655m(a)) is amended by 
                striking ``the Job Training Partnership Act (29 U.S.C. 
                1501 et seq.)'' and inserting ``the Workforce 
                Development Act of 1995''.
                    (NNN) Subparagraphs (H) and (M) of subsection 
                (c)(2), and subsection (d)(7), of section 454 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12899c) are amended by striking ``the Job 
                Training Partnership Act'' and inserting ``the 
                Workforce Development Act of 1995''.
                    (OOO) The first sentence of section 456(e) of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12899e(e)) is amended by inserting ``(as in 
                effect on the day before the date of enactment of the 
                Workforce Development Act of 1995)'' after ``the Job 
                Training Partnership Act'' each place it appears.
                    (PPP) Section 31113(a)(4)(C) of the Violent Crime 
                Control and Law Enforcement Act of 1994 (42 U.S.C. 
                13823(a)(4)(C)) is amended by striking ``authorized 
                under the Job Training Partnership Act (29 U.S.C. 1501 
                et seq.)'' and inserting ``or workforce employment 
                activities authorized under the Workforce Development 
                Act of 1995''.
            (5) Stewart b. mckinney homeless assistance act.--
                    (A) Section 6703(a) of title 31, United States 
                Code, is amended--
                            (i) by striking paragraph (15); and
                            (ii) by redesignating paragraphs (16) 
                        through (19) as paragraphs (15) through (18), 
                        respectively.
                    (B) Section 14205(a)(1) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8825(a)(1)) 
                is amended by striking ``the Indian education programs 
                under part A of title IX of this Act, and the education 
                for homeless children and youth program under subtitle 
                B of title VII of the Stewart B. McKinney Homeless 
                Assistance Act,'' and inserting ``and the Indian 
                education programs under part A of title IX,''.
    (c) Recommended Legislation.--
            (1) Preparation.--After consultation with the appropriate 
        committees of Congress and the Director of the Office of 
        Management and Budget, the Federal Partnership shall prepare 
        and submit to Congress recommended legislation containing 
        technical and conforming amendments to reflect the changes made 
        by section 191(b).
            (2) Submission to congress.--Not later than March 31, 1997, 
        the Federal Partnership shall submit the recommended 
        legislation referred to under paragraph (1).
    (d) Effective Dates.--
            (1) Immediate repeals.--The amendments made by subsection 
        (a) shall take effect on the date of enactment of this Act.
            (2) Subsequent repeals.--The amendments made by subsection 
        (b) shall take effect on July 1, 1998.

           TITLE II--WORKFORCE DEVELOPMENT-RELATED ACTIVITIES

        Subtitle A--Amendments to the Rehabilitation Act of 1973

SEC. 201. REFERENCES.

    Except as otherwise expressly provided in this subtitle, whenever 
in this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).

SEC. 202. FINDINGS AND PURPOSES.

    Section 2 (29 U.S.C. 701) is amended--
            (1) in subsection (a)(4), by striking ``the provision of 
        individualized training, independent living services, 
        educational and support services,'' and inserting 
        ``implementation of a statewide workforce development system 
        that provides meaningful and effective participation for 
        individuals with disabilities in workforce development 
        activities and activities carried out through the vocational 
        rehabilitation program established under title I, and through 
        the provision of independent living services, support 
        services,''; and
            (2) in subsection (b)(1)(A), by inserting ``statewide 
        workforce development systems that include, as integral 
        components,'' after ``(A)''.

SEC. 203. CONSOLIDATED REHABILITATION PLAN.

    (a) In General.--Section 6 (29 U.S.C. 705) is repealed.
    (b) Conforming Amendment.--The table of contents for the Act is 
amended by striking the item relating to section 6.

SEC. 204. DEFINITIONS.

    Section 7 (29 U.S.C. 706) is amended by adding at the end the 
following new paragraphs:
    ``(36) The term `statewide workforce development system' means a 
statewide system, as defined in section 3 of the Workforce Development 
Act of 1995.
    ``(37) The term `workforce development activities' has the meaning 
given the term in section 3 of the Workforce Development Act of 1995.
    ``(38) The term `workforce employment activities' means the 
activities described in paragraphs (2) through (8) of section 106(a) of 
the Workforce Development Act of 1995, including activities described 
in section 106(a)(6) of such Act provided through a voucher described 
in section 106(a)(9) of such Act.''.

SEC. 205. ADMINISTRATION.

    Section 12(a)(1) (29 U.S.C. 711(a)(1)) is amended by inserting ``, 
including providing assistance to achieve the meaningful and effective 
participation by individuals with disabilities in the activities 
carried out through a statewide workforce development system'' before 
the semicolon.

SEC. 206. REPORTS.

    Section 13 (29 U.S.C. 712) is amended in the fourth sentence by 
striking ``The data elements'' and all that follows through ``age,'' 
and inserting the following: ``The information shall include all 
information that is required to be submitted in the report described in 
section 121(a) of the Workforce Development Act of 1995 and that 
pertains to the employment of individuals with disabilities, including 
information on age,''.

SEC. 207. EVALUATION.

    Section 14(a) (29 U.S.C. 713(a)) is amended in the third sentence 
by striking ``to the extent feasible,'' and all that follows through 
the end of the sentence and inserting the following: ``to the maximum 
extent appropriate, be consistent with the State benchmarks established 
under paragraphs (1) and (2) of section 121(c) of the Workforce 
Development Act of 1995. For purposes of this section, the Secretary 
may modify or supplement such benchmarks after consultation with the 
National Board established under section 182 of the Workforce 
Development Act of 1995, to the extent necessary to address unique 
considerations applicable to the participation of individuals with 
disabilities in the vocational rehabilitation program established under 
title I and activities carried out under other provisions of this 
Act.''.

SEC. 208. DECLARATION OF POLICY.

    Section 100(a) (29 U.S.C. 720(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (E), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in subparagraph (F)--
                            (i) by inserting ``workforce development 
                        activities and'' before ``vocational 
                        rehabilitation services''; and
                            (ii) by striking the period and inserting 
                        ``; and''; and
                    (C) by adding at the end the following 
                subparagraph:
            ``(G) linkages between the vocational rehabilitation 
        program established under this title and other components of 
        the statewide workforce development system are critical to 
        ensure effective and meaningful participation by individuals 
        with disabilities in workforce development activities.''; and
            (2) in paragraph (2)--
                    (A) by striking ``a comprehensive'' and inserting 
                ``statewide comprehensive''; and
                    (B) by striking ``program of vocational 
                rehabilitation that is designed'' and inserting 
                ``programs of vocational rehabilitation, each of which 
                is--
            ``(A) an integral component of a statewide workforce 
        development system; and
            ``(B) designed''.

SEC. 209. STATE PLANS.

    (a) In General.--Section 101(a) (29 U.S.C. 721(a)) is amended--
            (1) in the first sentence, by striking ``, or shall 
        submit'' and all that follows through ``et seq.)'' and 
        inserting ``, and shall submit the State plan on the same dates 
        as the State submits the State plan described in section 104 of 
        the Workforce Development Act of 1995 to the Federal 
        Partnership established under section 181 of such Act'';
            (2) by inserting after the first sentence the following: 
        ``The State shall also submit the State plan for vocational 
        rehabilitation services for review and comment to any State 
        workforce development board established for the State under 
        section 105 of the Workforce Development Act of 1995, which 
        shall submit the comments on the State plan to the designated 
        State unit.'';
            (3) by striking paragraphs (10), (12), (13), (15), (17), 
        (19), (23), (27), (28), (30), (34), and (35);
            (4) in paragraph (20), by striking ``(20)'' and inserting 
        ``(B)'';
            (5) by redesignating paragraphs (3), (4), (5), (6), (7), 
        (8), (9), (14), (16), (18), (21), (22), (24), (25), (26), (29), 
        (31), (32), (33), and (36) as paragraphs (4), (5), (6), (7), 
        (8), (9), (10), (12), (13), (14), (15), (16), (17), (18), (19), 
        (20), (21), (22), (23), and (24), respectively;
            (6) in paragraph (1)(B)--
                    (A) by redesignating clauses (i), (ii), and (iii) 
                as clauses (ii), (iii), and (iv), respectively; and
                    (B) by inserting before clause (ii) (as 
                redesignated in subparagraph (A)) the following: ``(i) 
                a State entity primarily responsible for implementing 
                workforce employment activities through the statewide 
                workforce development system of the State,'';
            (7) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(1)(B)(i)'' and inserting ``(1)(B)(ii)''; 
                and
                    (B) in subparagraph (B)(ii), by striking 
                ``(1)(B)(ii)'' and inserting ``(1)(B)(iii)'';
            (8) by inserting after paragraph (2) the following 
        paragraph:
    ``(3) provide a plan for expanding and improving vocational 
rehabilitation services for individuals with disabilities on a 
statewide basis, including--
            ``(A) a statement of values and goals;
            ``(B) evidence of ongoing efforts to use outcome measures 
        to make decisions about the effectiveness and future direction 
        of the vocational rehabilitation program established under this 
        title in the State; and
            ``(C) information on specific strategies for strengthening 
        the program as an integral component of the statewide workforce 
        development system established in the State, including specific 
        innovative, state-of-the-art approaches for achieving sustained 
        success in improving and expanding vocational rehabilitation 
        services provided through the program, for all individuals with 
        disabilities who seek employment, through plans, policies, and 
        procedures that link the program with other components of the 
        system, including plans, policies, and procedures relating to--
                    ``(i) entering into cooperative agreements, between 
                the designated State unit and appropriate entities 
                responsible for carrying out the other components of 
                the statewide workforce development system, which 
                agreements may provide for--
                            ``(I) provision of intercomponent staff 
                        training and technical assistance regarding the 
                        availability and benefits of, and eligibility 
                        standards for, vocational rehabilitation 
                        services, and regarding the provision of equal, 
                        effective, and meaningful participation by 
                        individuals with disabilities in workforce 
                        employment activities in the State through 
                        program accessibility, use of nondiscriminatory 
                        policies and procedures, and provision of 
                        reasonable accommodations, auxiliary aids and 
                        services, and rehabilitation technology, for 
                        individuals with disabilities;
                            ``(II) use of information and financial 
                        management systems that link all components of 
                        the statewide workforce development system, 
                        that link the components to other electronic 
                        networks, and that relate to such subjects as 
                        labor market and occupational information, and 
                        information on job vacancies, skill 
                        qualifications, career planning, and workforce 
                        development activities;
                            ``(III) use of customer service features 
                        such as common intake and referral procedures, 
                        customer data bases, resource information, and 
                        human service hotlines;
                            ``(IV) establishment of cooperative efforts 
                        with employers to facilitate job placement and 
                        to develop and sustain working relationships 
                        with employers, trade associations, and labor 
                        organizations;
                            ``(V) identification of staff roles and 
                        responsibilities and available resources for 
                        each entity that carries out a component of the 
                        statewide workforce development system with 
                        regard to paying for necessary services 
                        (consistent with State law); and
                            ``(VI) specification of procedures for 
                        resolving disputes among such entities; and
                    ``(ii) providing for the replication of such 
                cooperative agreements at the local level between 
                individual offices of the designated State unit and 
                local entities carrying out activities through the 
                statewide workforce development system;'';
            (9) in paragraph (6) (as redesignated in paragraph (5))--
                    (A) by striking subparagraph (A) and inserting the 
                following:
            ``(A) contain the plans, policies, and methods to be 
        followed in carrying out the State plan and in the 
        administration and supervision of the plan, including--
                    ``(i)(I) the results of a comprehensive, statewide 
                assessment of the rehabilitation needs of individuals 
                with disabilities (including individuals with severe 
                disabilities, individuals with disabilities who are 
                minorities, and individuals with disabilities who have 
                been unserved, or underserved, by the vocational 
                rehabilitation system) who are residing within the 
                State; and
                    ``(II) the response of the State to the assessment;
                    ``(ii) a description of the method to be used to 
                expand and improve services to individuals with the 
                most severe disabilities, including individuals served 
                under part C of title VI;
                    ``(iii) with regard to community rehabilitation 
                programs--
                            ``(I) a description of the method to be 
                        used (such as a cooperative agreement) to 
                        utilize the programs to the maximum extent 
                        feasible; and
                    ``(II) a description of the needs of the programs, 
                including the community rehabilitation programs funded 
                under the Act entitled ``An Act to Create a Committee 
                on Purchases of Blind-made Products, and for other 
                purposes'', approved June 25, 1938 (commonly known as 
                the Wagner-O'Day Act; 41 U.S.C. 46 et seq.) and such 
                programs funded by State use contracting programs; and
                    ``(iv) an explanation of the methods by which the 
                State will provide vocational rehabilitation services 
                to all individuals with disabilities within the State 
                who are eligible for such services, and, in the event 
                that vocational rehabilitation services cannot be 
                provided to all such eligible individuals with 
                disabilities who apply for such services, information--
                            ``(I) showing and providing the 
                        justification for the order to be followed in 
                        selecting individuals to whom vocational 
                        rehabilitation services will be provided (which 
                        order of selection for the provision of 
                        vocational rehabilitation services shall be 
                        determined on the basis of serving first the 
                        individuals with the most severe disabilities 
                        in accordance with criteria established by the 
                        State, and shall be consistent with priorities 
                        in such order of selection so determined, and 
                        outcome and service goals for serving 
                        individuals with disabilities, established in 
                        regulations prescribed by the Commissioner);
                            ``(II) showing the outcomes and service 
                        goals, and the time within which the outcomes 
                        and service goals may be achieved, for the 
                        rehabilitation of individuals receiving such 
                        services; and
                            ``(III) describing how individuals with 
                        disabilities who will not receive such services 
                        if such order is in effect will be referred to 
                        other components of the statewide workforce 
                        development system for access to services 
                        offered by the components;''; and
                    (B) by striking subparagraph (C) and inserting the 
                following subparagraphs:
            ``(C) with regard to the statewide assessment of 
        rehabilitation needs described in subparagraph (A)(i)--
                    ``(i) provide that the State agency will make 
                reports at such time, in such manner, and containing 
                such information, as the Commissioner may require to 
                carry out the functions of the Commissioner under this 
                title, and comply with such provisions as are necessary 
                to assure the correctness and verification of such 
                reports; and
                    ``(ii) provide that reports made under clause (i) 
                will include information regarding individuals with 
                disabilities and, if an order of selection described in 
                subparagraph (A)(iv)(I) is in effect in the State, will 
                separately include information regarding individuals 
                with the most severe disabilities, on--
                            ``(I) the number of such individuals who 
                        are evaluated and the number rehabilitated;
                            ``(II) the costs of administration, 
                        counseling, provision of direct services, 
                        development of community rehabilitation 
                        programs, and other functions carried out under 
                        this Act; and
                            ``(III) the utilization by such individuals 
                        of other programs pursuant to paragraph (11); 
                        and
            ``(D) describe--
                    ``(i) how a broad range of rehabilitation 
                technology services will be provided at each stage of 
                the rehabilitation process;
                    ``(ii) how a broad range of such rehabilitation 
                technology services will be provided on a statewide 
                basis; and
                    ``(iii) the training that will be provided to 
                vocational rehabilitation counselors, client assistance 
                personnel, personnel of the providers of one-stop 
                delivery of core services described in section 
                106(a)(2) of the Workforce Development Act of 1995, and 
                other related services personnel;'';
            (10) in subparagraph (A) of paragraph (8) (as redesignated 
        in paragraph (5))--
                    (A) in clause (i)(II), by striking ``, based on 
                projections'' and all that follows through ``relevant 
                factors''; and
                    (B) by striking clauses (iii) and (iv) and 
                inserting the following clauses:
            ``(iii) a description of the ways in which the system for 
        evaluating the performance of rehabilitation counselors, 
        coordinators, and other personnel used in the State facilitates 
        the accomplishment of the purpose and policy of this title, 
        including the policy of serving, among others, individuals with 
        the most severe disabilities;
            ``(iv) provide satisfactory assurances that the system 
        described in clause (iii) in no way impedes such 
        accomplishment; and'';
            (11) in paragraph (9) (as redesignated in paragraph (5)) by 
        striking ``required--'' and all that follows through ``(B) 
        prior'' and inserting ``required prior'';
            (12) in paragraph (10) (as redesignated in paragraph (5))--
                    (A) in subparagraph (B), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) in subparagraph (C), by striking ``plan in 
                accordance with such program'' and inserting ``State 
                plan in accordance with the employment plan'';
            (13) in paragraph (11)--
                    (A) in subparagraph (A), by striking ``State's 
                public'' and all that follows and inserting ``State 
                programs that are not part of the statewide workforce 
                development system of the State;''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``if appropriate--'' and 
                        all that follows through ``entering into'' and 
                        inserting ``if appropriate, entering into'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii), 
                        respectively; and
                            (iii) by indenting the clauses and aligning 
                        the margins of the clauses with the margins of 
                        clause (ii) of subparagraph (A) of paragraph 
                        (8) (as redesignated in paragraph (5));
            (14) in paragraph (14) (as redesignated in paragraph (5))--
                    (A) by striking ``(14)'' and inserting ``(14)(A)''; 
                and
                    (B) by inserting before the semicolon the following 
                ``, and, in the case of the designated State unit, will 
                take actions to take such views into account that 
                include providing timely notice, holding public 
                hearings, preparing a summary of hearing comments, and 
                documenting and disseminating information relating to 
                the manner in which the comments will affect services; 
                and'';
            (15) in paragraph (16) (as redesignated in paragraph (5)), 
        by striking ``referrals to other Federal and State programs'' 
        and inserting ``referrals within the statewide workforce 
        development system of the State to programs''; and
            (16) in paragraph (17) (as redesignated in paragraph (5))--
                    (A) in subparagraph (B), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) in subparagraph (C)--
                            (i) in clause (ii), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in clause (iii), by striking the 
                        semicolon and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        clause:
                    ``(iv) the manner in which students who are 
                individuals with disabilities and who are not in 
                special education programs can access and receive 
                vocational rehabilitation services, where 
                appropriate;''.
    (b) Conforming Amendments.--
            (1) Section 7 (29 U.S.C. 706) is amended--
                    (A) in paragraph (3)(B)(ii), by striking 
                ``101(a)(1)(B)(i)'' and inserting ``101(a)(1)(B)(ii)''; 
                and
                    (B) in paragraph (22)(A)(i)(II), by striking 
                ``101(a)(5)(A)'' each place it appears and inserting 
                ``101(a)(6)(A)(iv)''.
            (2) Section 12(d) (29 U.S.C. 711(d)) is amended by striking 
        ``101(a)(5)(A)'' and inserting ``101(a)(6)(A)(iv)''.
            (3) Section 101(a) (29 U.S.C. 721(a)) is amended--
                    (A) in paragraph (1)(A), by striking ``paragraph 
                (4) of this subsection'' and inserting ``paragraph 
                (5)'';
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``paragraph (1)(B)(i)'' and 
                        inserting ``paragraph (1)(B)(ii)''; and
                            (ii) in subparagraph (B)(i), by striking 
                        ``paragraph (1)(B)(ii)'' and inserting 
                        ``paragraph (1)(B)(iii)'';
                    (C) in paragraph (17) (as redesignated in 
                subsection (a)(5)), by striking ``paragraph 
                (11)(C)(ii)'' and inserting ``paragraph (11)(C)'';
                    (D) in paragraph (22) (as redesignated in 
                subsection (a)(5)), by striking ``paragraph (36)'' and 
                inserting ``paragraph (24)''; and
                    (E) in subparagraph (C) of paragraph (24) (as 
                redesignated in subsection (a)(5)), by striking 
                ``101(a)(1)(A)(i)'' and inserting ``paragraph 
                (1)(A)(i)''.
            (4) Section 102 (29 U.S.C. 722) is amended--
                    (A) in subsection (a)(3), by striking 
                ``101(a)(24)'' and inserting ``101(a)(17)''; and
                    (B) in subsection (d)(2)(C)(ii)--
                            (i) in subclause (II), by striking 
                        ``101(a)(36)'' and inserting ``101(a)(24)''; 
                        and
                            (ii) in subclause (III), by striking 
                        ``101(a)(36)(C)(ii)'' and inserting 
                        ``101(a)(24)(C)(ii)''.
            (5) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is amended by 
        striking ``101(a)(36)'' and inserting ``101(a)(24)''.
            (6) Section 107(a) (29 U.S.C. 727(a)) is amended--
                    (A) in paragraph (2)(F), by striking ``101(a)(32)'' 
                and inserting ``101(a)(22)'';
                    (B) in paragraph (3)(A), by striking 
                ``101(a)(5)(A)'' and inserting ``101(a)(6)(A)(iv)''; 
                and
                    (C) in paragraph (4), by striking ``101(a)(35)'' 
                and inserting ``101(a)(8)(A)(iii)''.
            (7) Section 111(a) (29 U.S.C. 731(a)) is amended--
                    (A) in paragraph (1), by striking ``and development 
                and implementation'' and all that follows through 
                ``referred to in section 101(a)(34)(B)''; and
                    (B) in paragraph (2)(A), by striking ``and such 
                payments shall not be made in an amount which would 
                result in a violation of the provisions of the State 
                plan required by section 101(a)(17)''.
            (8) Section 124(a)(1)(A) (29 U.S.C. 744(a)(1)(A)) is 
        amended by striking ``(not including sums used in accordance 
        with section 101(a)(34)(B))''.
            (9) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is amended by 
        striking ``101(a)(22)'' and inserting ``101(a)(16)''.
            (10) Section 635(b)(2) (29 U.S.C. 795n(b)(2)) is amended by 
        striking ``101(a)(5)'' and inserting ``101(a)(6)(A)(i)(I)''.
            (11) Section 802(h)(2)(B)(ii) (29 U.S.C. 797a(h)(2)(B)(ii)) 
        is amended by striking ``101(a)(5)(A)'' and inserting 
        ``101(a)(6)(A)(iv)''.
            (12) Section 102(e)(23)(A) of the Technology-Related 
        Assistance for Individuals With Disabilities Act of 1988 (29 
        U.S.C. 2212(e)(23)(A)) is amended by striking ``section 
        101(a)(36) of the Rehabilitation Act of 1973 (29 U.S.C. 
        721(a)(36))'' and inserting ``section 101(a)(24) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 721(a)(24))''.

SEC. 210. INDIVIDUALIZED EMPLOYMENT PLANS.

    (a) In General.--Section 102 (29 U.S.C. 722) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 102. INDIVIDUALIZED EMPLOYMENT PLANS.'';

            (2) in subsection (a)(6), by striking ``written 
        rehabilitation program'' and inserting ``employment plan'';
            (3) in subsection (b)--
                    (A) in paragraph (1)(A)--
                            (i) in clause (i), by striking ``written 
                        rehabilitation program'' and inserting 
                        ``employment plan''; and
                            (ii) in clause (ii), by striking 
                        ``program'' and inserting ``plan'';
                    (B) in paragraph (1)(B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``written rehabilitation program'' and 
                        inserting ``employment plan'';
                            (ii) in clause (iv)--
                                    (I) by striking subclause (I) and 
                                inserting the following:
            ``(I) include a statement of the specific vocational 
        rehabilitation services to be provided (including, if 
        appropriate, rehabilitation technology services and training in 
        how to use such services) that includes specification of the 
        public or private entity that will provide each such vocational 
        rehabilitation service and the projected dates for the 
        initiation and the anticipated duration of each such service; 
        and'';
                                    (II) by striking subclause (II); 
                                and
                                    (III) by redesignating subclause 
                                (III) as subclause (II); and
                            (iii) in clause (xi)(I), by striking 
                        ``program'' and inserting ``plan'';
                    (C) in paragraph (1)(C), by striking ``written 
                rehabilitation program and amendments to the program'' 
                and inserting ``employment plan and amendments to the 
                plan''; and
                    (D) in paragraph (2)--
                            (i) by striking ``program'' each place the 
                        term appears and inserting ``plan''; and
                            (ii) by striking ``written rehabilitation'' 
                        each place the term appears and inserting 
                        ``employment'';
            (4) in subsection (c)--
                    (A) in paragraph (1), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) by striking ``written program'' each place the 
                term appears and inserting ``plan''; and
            (5) in subsection (d)--
                    (A) in paragraph (5), by striking ``written 
                rehabilitation program'' and inserting ``employment 
                plan''; and
                    (B) in paragraph (6)(A), by striking the second 
                sentence.
    (b) Conforming Amendments.--
            (1) The table of contents for the Act is amended by 
        striking the item relating to section 102 and inserting the 
        following:

``Sec. 102. Individualized employment plans.''.
            (2) Paragraphs (22)(B) and (27)(B), and subparagraphs (B) 
        and (C) of paragraph (34) of section 7 (29 U.S.C. 706), section 
        12(e)(1) (29 U.S.C. 711(e)(1)), section 501(e) (29 U.S.C. 
        791(e)), subparagraphs (C), (D), and (E) of section 635(b)(6) 
        (29 U.S.C. 795n(b)(6) (C), (D), and (E)), section 802(g)(8)(B) 
        (29 U.S.C. 797a(g)(8)(B)), and section 803(c)(2)(D) (29 U.S.C. 
        797b(c)(2)(D)) are amended by striking ``written rehabilitation 
        program'' each place the term appears and inserting 
        ``employment plan''.
            (3) Section 7(22)(B)(i) (29 U.S.C. 706(22)(B)(i)) is 
        amended by striking ``rehabilitation program'' and inserting 
        ``employment plan''.
            (4) Section 107(a)(3)(D) (29 U.S.C. 727(a)(3)(D)) is 
        amended by striking ``written rehabilitation programs'' and 
        inserting ``employment plans''.
            (5) Section 101(b)(7)(A)(ii)(II) of the Technology-Related 
        Assistance for Individuals With Disabilities Act of 1988 (29 
        U.S.C. 2211(b)(7)(A)(ii)(II)) is amended by striking ``written 
        rehabilitation program'' and inserting ``employment plan''.

SEC. 211. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

    Section 103 (29 U.S.C. 723) is amended--
            (1) in subsection (a)(4)--
                    (A) in subparagraph (B), by striking ``surgery 
                or'';
                    (B) in subparagraph (D), by striking the comma at 
                the end and inserting ``, and'';
                    (C) by striking subparagraph (E); and
                    (D) by redesignating subparagraph (F) as 
                subparagraph (E); and
            (2) in subsection (b)(1), by striking ``the most severe''.

SEC. 212. STATE REHABILITATION ADVISORY COUNCIL.

    (a) In General.--Section 105 (29 U.S.C. 725) is amended--
            (1) in subsection (b)(1)(A)(vi), by inserting before the 
        semicolon the following: ``who, to the extent feasible, are 
        members of any State workforce development board established 
        for the State under section 105 of the Workforce Development 
        Act of 1995''; and
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (3) through (7) as 
                paragraphs (4) through (8), respectively;
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) advise the designated State agency and the designated 
        State unit regarding strategies for ensuring that the 
        vocational rehabilitation program established under this title 
        becomes an integral part of the statewide workforce development 
        system of the State;''; and
                    (C) in paragraph (6) (as redesignated in 
                subparagraph (A))--
                            (i) by striking ``6024), and'' and 
                        inserting ``6024),''; and
                            (ii) by striking the semicolon at the end 
                        and inserting the following: ``, and any State 
                        workforce development board established for the 
                        State under section 105 of the Workforce 
                        Development Act of 1995;''.
    (b) Conforming Amendment.--Subparagraph (B)(iv), and clauses 
(ii)(I) and (iii)(I) of subparagraph (C), of paragraph (24) (as 
redesignated in section 209(a)(5)) of section 101(a) (29 U.S.C. 721(a)) 
are amended by striking ``105(c)(3)'' and inserting ``105(c)(4)''.

SEC. 213. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended--
            (1) by striking ``1994'' and inserting ``1996''; and
            (2) by striking the period and inserting the following: 
        ``that shall, to the maximum extent appropriate, be consistent 
        with the State benchmarks established under paragraphs (1) and 
        (2) of section 121(c) of the Workforce Development Act of 1995. 
        For purposes of this section, the Commissioner may modify or 
        supplement such benchmarks, after consultation with the 
        National Board established under section 182 of the Workforce 
        Development Act of 1995, to the extent necessary to address 
        unique considerations applicable to the participation of 
        individuals with disabilities in the vocational rehabilitation 
        program.''.

SEC. 214. REPEALS.

    (a) In General.--Title I (29 U.S.C. 720 et seq.) is amended--
            (1) by repealing part C; and
            (2) by redesignating parts D and E as parts C and D, 
        respectively.
    (b) Conforming Amendments.--The table of contents for the Act is 
amended--
            (1) by striking the items relating to part C of title I; 
        and
            (2) by striking the items relating to parts D and E of 
        title I and inserting the following:

      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 130. Vocational rehabilitation services grants.

    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 140. Review of data collection and reporting system.
``Sec. 141. Exchange of data.''.

SEC. 215. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle shall take effect on the date of 
enactment of this Act.
    (b) Statewide System Requirements.--The changes made in the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) by the amendments 
made by this subtitle that relate to State benchmarks, or other 
components of a statewide system, shall take effect--
            (1) in a State that submits and obtains approval of an 
        interim plan under section 173 for program year 1997, on July 
        1, 1997; and
            (2) in any other State, on July 1, 1998.

            Subtitle B--Amendments to the Wagner-Peyser Act

SEC. 221. GENERAL PROGRAM REQUIREMENTS.

    Section 1 of the Wagner-Peyser Act (29 U.S.C. 49) is amended by 
striking ``national system'' and all that follows and inserting 
``national system of employment service offices open to the public, 
there shall be in the Federal Partnership a United States Employment 
Service.''.

SEC. 222. DEFINITIONS.

    (a) In General.--Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) 
is amended--
            (1) by striking paragraphs (1), (2), (3), and (4);
            (2) by inserting before paragraph (5) the following 
        paragraphs:
            ``(1) the term `Federal Partnership' has the meaning given 
        the term in section 3 of the Workforce Development Act of 1995;
            ``(2) the term `one-stop career center system' means a 
        means of providing one-stop delivery of core services described 
        in section 106(a)(2)(B) of the Workforce Development Act of 
        1995;
            ``(3) the term `Secretary', used without further 
        modification, means the Secretary of Labor and the Secretary of 
        Education, acting jointly; and''; and
            (3) by redesignating paragraph (5) as paragraph (4).
    (b) Conforming Amendments.--
            (1) Secretary.--Section 7(d) of the Wagner-Peyser Act (29 
        U.S.C. 49f(d)) is amended by striking ``Secretary of Labor'' 
        and inserting ``Secretary''.
            (2) Director.--Section 12 of the Wagner-Peyser Act (29 
        U.S.C. 49k) is amended by striking ``The Director, with the 
        approval of the Secretary of Labor,'' and inserting ``The 
        Secretary''.

SEC. 223. FUNCTIONS.

    (a) In General.--Section 3(a) of the Wagner-Peyser Act (29 U.S.C. 
49b(a)) is amended to read as follows:
    ``(a) The Federal Partnership shall--
            ``(1) assist in the coordination and development of a 
        nationwide system of labor exchange services for the general 
        public, provided through the one-stop career center systems of 
        the States;
            ``(2) assist in the development of continuous improvement 
        models for such nationwide system that ensure private sector 
        satisfaction with the system and meet the demands of jobseekers 
        relating to the system; and
            ``(3) ensure, for individuals otherwise eligible to receive 
        unemployment compensation, the continuation of any activities 
        in which the individuals are required to participate to receive 
        the compensation.''.
    (b) Conforming Amendments.--Section 508(b) of the Unemployment 
Compensation Amendments of 1976 (42 U.S.C. 603a(b)) is amended--
            (1) by striking ``the third sentence of section 3(a)'' and 
        inserting ``section 3(b)''; and
            (2) by striking ``49b(a)'' and inserting ``49b(b))''.

SEC. 224. DESIGNATION OF STATE AGENCIES.

    Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is amended--
            (1) by striking ``a State shall, through its legislature,'' 
        and inserting ``a Governor shall''; and
            (2) by striking ``the United States Employment Service'' 
        and inserting ``the Federal Partnership''.

SEC. 225. APPROPRIATIONS.

    Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is amended 
by striking paragraph (3).

SEC. 226. DISPOSITION OF ALLOTTED FUNDS.

    Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is amended--
            (1) in subsection (b)(2), by striking ``and the appropriate 
        private industry council and chief elected official or 
        officials'' and inserting ``, and the appropriate local 
        partnership established under section 118(a) of the Workforce 
        Development Act of 1995 (or, where established, the appropriate 
        local workforce development board described in section 118(b) 
        of such Act)'';
            (2) in subsection (c)(2), by striking ``any program under'' 
        and all that follows and inserting ``any activity carried out 
        under the Workforce Development Act of 1995.'';
            (3) in subsection (d)--
                    (A) by striking ``United States Employment 
                Service'' and inserting ``Federal Partnership''; and
                    (B) by striking ``administrative entity under the 
                Job Training Partnership Act'' and inserting ``local 
                entity under the Workforce Development Act of 1995''; 
                and
            (4) by adding at the end the following subsection:
    ``(e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsection (a) shall be provided through the one-stop career center 
system established by the State.''.

SEC. 227. STATE PLANS.

    Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Any State desiring to receive assistance under this Act shall 
include in the portion of the State workforce development plan 
described in section 104 of the Workforce Development Act of 1995 
relating to workforce employment activities, detailed plans for 
carrying out this Act in such State.'';
            (2) by striking subsections (b), (c), and (e);
            (3) in subsection (d), by striking ``United States 
        Employment Service'' and inserting ``Federal Partnership''; and
            (4) by redesignating subsection (d) as subsection (b).

SEC. 228. FEDERAL ADVISORY COUNCIL.

    Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is repealed.

     Subtitle C--Amendments to the Immigration and Nationality Act

SEC. 231. PROHIBITION ON USE OF FUNDS FOR CERTAIN EMPLOYMENT 
              ACTIVITIES.

    Section 412(c)(1) of the Immigration and Nationality Act is amended 
by adding at the end the following new subparagraph:
    ``(D) Funds available under this paragraph may not be provided to 
States for workforce employment activities authorized and funded under 
the Workforce Development Act of 1995.''.

      Subtitle D--Amendments to the National Literacy Act of 1991

SEC. 241. NATIONAL INSTITUTE FOR LITERACY.

    Section 102 of the National Literacy Act of 1991 (20 U.S.C. 1213c 
note) is amended to read as follows:

``SEC. 102. NATIONAL INSTITUTE FOR LITERACY.

    ``(a) Establishment.--
            ``(1) In general.--There is established the National 
        Institute for Literacy (referred to in this section as the 
        `Institute'). The Institute shall be administered by the 
        Federal Partnership established under section 181 of the 
        Workforce Development Act of 1995 (referred to in this Act as 
        the `Federal Partnership'). The Federal Partnership may include 
        in the Institute any research and development center, 
        institute, or clearinghouse that the Federal Partnership 
        determines is appropriately included in the Institute.
            ``(2) Offices.--The Institute shall have offices separate 
        from the offices of the Department of Education or the 
        Department of Labor.
            ``(3) Recommendations.--The Federal Partnership shall 
        consider the recommendations of the National Institute Council 
        established under subsection (d) in planning the goals of the 
        Institute and in the implementation of any programs to achieve 
        such goals. The daily operations of the Institute shall be 
        carried out by the Director of the Institute appointed under 
        subsection (g). If such Council's recommendations are not 
        followed, the Federal Partnership shall provide a written 
        explanation to such Council concerning actions the Federal 
        Partnership has taken that includes the Federal Partnership's 
        reasons for not following such Council's recommendations with 
        respect to such actions. Such Council may also request a 
        meeting with the Federal Partnership to discuss such Council's 
        recommendations.
    ``(b) Duties.--
            ``(1) In general.--The Institute is authorized, in order to 
        improve the quality and accountability of the adult basic 
        skills and literacy delivery system, to--
                    ``(A) coordinate the support of research and 
                development on literacy and basic skills education 
                across Federal agencies and carry out basic and applied 
                research and development on topics such as--
                            ``(i) identifying effective models of basic 
                        skills and literacy education for adults and 
                        families that are essential to success in job 
                        training, work, the family, and the community;
                            ``(ii) carrying out evaluations of the 
                        effectiveness of literacy and adult education 
                        programs and services, including those 
                        supported by this Act; and
                            ``(iii) supporting the development of 
                        models at the State and local level of 
                        accountability systems that consist of goals, 
                        performance measures, benchmarks, and 
                        assessments that can be used to improve the 
                        quality of literacy and adult education 
                        services;
                    ``(B) provide technical assistance, information, 
                and other program improvement activities to national, 
                State, and local organizations, such as--
                            ``(i) providing information and training to 
                        State and local workforce development boards 
                        and one-stop centers concerning how literacy 
                        and basic skills services can be incorporated 
                        in a coordinated workforce development model;
                            ``(ii) improving the capacity of national, 
                        State, and local public and private literacy 
                        and basic skills professional development and 
                        technical assistance organizations, such as the 
                        State Literacy Resource Centers established 
                        under section 103; and
                            ``(iii) providing information on-line and 
                        in print to all literacy and basic skills 
                        programs about best practices, models of 
                        collaboration for effective workforce, family, 
                        English as a Second Language, and other 
                        literacy programs, and other informational and 
                        communication needs; and
                    ``(C) work with the Federal Partnership, the 
                Departments of Education, Labor, and Health and Human 
                Services, and the Congress to ensure that they have the 
                best information available on literacy and basic skills 
                programs in formulating Federal policy around the 
                issues of literacy, basic skills, and workforce 
                development.
            ``(2) Contracts, cooperative agreements, and grants.--The 
        Institute may enter into contracts or cooperative agreements 
        with, or make grants to, individuals, public or private 
        nonprofit institutions, agencies, organizations, or consortia 
        of such institutions, agencies, or organizations to carry out 
        the activities of the Institute. Such grants, contracts, or 
        agreements shall be subject to the laws and regulations that 
        generally apply to grants, contracts, or agreements entered 
        into by Federal agencies.
    ``(c) Literacy Leadership.--
            ``(1) Fellowships.--The Institute is, in consultation with 
        the Council, authorized to award fellowships, with such 
        stipends and allowances that the Director considers necessary, 
        to outstanding individuals pursuing careers in adult education 
        or literacy in the areas of instruction, management, research, 
        or innovation.
            ``(2) Use of fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the Institute, 
        to engage in research, education, training, technical 
        assistance, or other activities to advance the field of adult 
        education or literacy, including the training of volunteer 
        literacy providers at the national, State, or local level.
            ``(3) Designation.--Individuals receiving fellowships 
        pursuant to this subsection shall be known as `Literacy Leader 
        Fellows'.
    ``(d) National Institute Council.--
            ``(1) In general.--
                    ``(A) Establishment.--There is established the 
                National Institute Council (in this section referred to 
                as the ``Council''). The Council shall consist of 10 
                individuals appointed by the President with the advice 
                and consent of the Senate from individuals who--
                            ``(i) are not otherwise officers or 
                        employees of the Federal Government;
                            ``(ii) are representative of entities or 
                        groups described in subparagraph (B); and
                            ``(iii) are chosen from recommendations 
                        made to the President by individuals who 
                        represent such entities or groups.
                    ``(B) Entities or groups.--Entities or groups 
                described in this subparagraph are--
                            ``(i) literacy organizations and providers 
                        of literacy services, including--
                                    ``(I) providers of literacy 
                                services receiving assistance under 
                                this Act; and
                                    ``(II) nonprofit providers of 
                                literacy services;
                            ``(ii) businesses that have demonstrated 
                        interest in literacy programs;
                            ``(iii) literacy students;
                            ``(iv) experts in the area of literacy 
                        research;
                            ``(v) State and local governments; and
                            ``(vi) organized labor.
            ``(2) Duties.--The Council shall--
                    ``(A) make recommendations concerning the 
                appointment of the Director and staff of the Institute;
                    ``(B) provide independent advice on the operation 
                of the Institute; and
                    ``(C) receive reports from the Federal Partnership 
                and the Director.
            ``(3) Federal advisory committee act.--Except as otherwise 
        provided, the Council established by this subsection shall be 
        subject to the provisions of the Federal Advisory Committee 
        Act.
            ``(4) Appointment.--
                    ``(A) Duration.--Each member of the Council shall 
                be appointed for a term of 3 years. Any such member may 
                be appointed for not more than 2 consecutive terms.
                    ``(B) Vacancies.--Any member appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which the member's predecessor was appointed shall be 
                appointed only for the remainder of that term. A member 
                may serve after the expiration of that member's term 
                until a successor has taken office. A vacancy in the 
                Council shall be filled in the manner in which the 
                original appointment was made. A vacancy in the Council 
                shall not affect the powers of the Council.
            ``(5) Quorum.--A majority of the members of the Council 
        shall constitute a quorum but a lesser number may hold 
        hearings. Any recommendation may be passed only by a majority 
        of its members present.
            ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Council shall be elected by the members. The 
        term of office of the Chairperson and Vice Chairperson shall be 
        2 years.
            ``(7) Meetings.--The Council shall meet at the call of the 
        Chairperson or a majority of its members.
    ``(e) Gifts, Bequests, and Devises.--The Institute and the Council 
may accept (but not solicit), use, and dispose of gifts, bequests, or 
devises of services or property, both real and personal, for the 
purpose of aiding or facilitating the work of the Institute or the 
Council, respectively. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in the Treasury and shall be available for 
disbursement upon order of the Institute or the Council, respectively.
    ``(f) Mails.--The Council and the Institute may use the United 
States mails in the same manner and under the same conditions as other 
departments and agencies of the United States.
    ``(g) Staff.--The Director of the Federal Partnership, after 
considering recommendations made by the Council, shall appoint and fix 
the pay of a Director of the Institute and staff of the Institute.
    ``(h) Applicability of Certain Civil Service Laws.--The Director of 
the Institute and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service, and may be paid without regard 
to the provisions of chapter 51 and subchapter III of chapter 53 of 
that title relating to classification and General Schedule pay rates, 
except that an individual so appointed may not receive pay in excess of 
the annual rate of basic pay payable for GS-15 of the General Schedule.
    ``(i) Experts and Consultants.--The Council and the Institute may 
procure temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
    ``(j) Report.--The Institute shall submit a report biennially to 
the Committee on Economic and Educational Opportunities of the House of 
Representatives and the Committee on Labor and Human Resources of the 
Senate. Each report submitted under this subsection shall include--
            ``(1) a comprehensive and detailed description of the 
        Institute's operations, activities, financial condition, and 
        accomplishments in the field of literacy for such fiscal year;
            ``(2) a description of how plans for the operation of the 
        Institute for the succeeding fiscal year will facilitate 
        achievement of the goals of the Institute and the goals of the 
        literacy programs within the Federal Partnership, the 
        Department of Education, the Department of Labor, and the 
        Department of Health and Human Services; and
            ``(3) any additional minority, or dissenting views 
        submitted by members of the Council.
    ``(k) Funding.--Any amounts appropriated to the Federal 
Partnership, the Secretary of Education, the Secretary of Labor, or the 
Secretary of Health and Human Services for purposes that the Institute 
is authorized to perform under this section may be provided to the 
Institute for such purposes.''.

SEC. 242. STATE LITERACY RESOURCE CENTERS.

    Section 103 of the National Literacy Act of 1991 is amended to read 
as follows:

``SEC. 103. STATE LITERACY RESOURCE CENTERS.

    ``(a) Purpose.--The purpose of this section is to establish a 
network of State or regional adult literacy resource centers to assist 
State and local public and private nonprofit efforts to eliminate 
illiteracy by--
            ``(1) stimulating the coordination of literacy services;
            ``(2) enhancing the capacity of State and local 
        organizations to provide literacy services; and
            ``(3) serving as a reciprocal link between the National 
        Institute for Literacy established under section 102 and 
        service providers for the purpose of sharing information, data, 
        research, and expertise and literacy resources.
    ``(b) Establishment.--From amounts appropriated pursuant to section 
124(b)(7) of the Workforce Development Act of 1995, the Secretary of 
Labor and the Secretary of Education, acting jointly on the advice of 
the Federal Partnership, are authorized to make grants for purposes of 
establishing a network of State or regional adult literacy resource 
centers.
    ``(c) Allotment.--
            ``(1) In general.--From sums available for purposes of 
        making grants under this section for any fiscal year, the 
        Secretary of Labor and the Secretary of Education, acting 
        jointly on the advice of the Federal Partnership, shall allot 
        to each State having an application approved under subsection 
        (f) an amount that bears the same ratio to such sums as the 
        amount allotted to such State--
                    ``(A) in the case of fiscal years 1996, 1997, and 
                1998 under section 313(b) of the Adult Education Act 
                (20 U.S.C. 1201(b)) for fiscal year 1995 for the 
                purpose of making grants under section 321 of such Act 
                (20 U.S.C. 1203), bears to the aggregate amount 
                allotted to all States under such section for fiscal 
                year 1995 for such purpose; and
                    ``(B) in the case of fiscal years 1999, 2000, and 
                2001, under section 102 of the Workforce Development 
                Act of 1995 for the fiscal year preceding the fiscal 
                year for which the determination is made, bears to the 
                aggregate amount allotted to all States under such 
                section for such preceding fiscal year.
            ``(2) Contracts.--The chief executive officer of each State 
        that receives its allotment under this section shall contract 
        on a competitive basis with the State educational agency, 1 or 
        more local educational agencies, a State office on literacy, a 
        volunteer organization, a community-based organization, an 
        institution of higher education, or another nonprofit entity to 
        operate a State or regional literacy resource center. No 
        applicant participating in a competition pursuant to the 
        preceding sentence shall participate in the review of its own 
        application.
    ``(d) Use of Funds.--Funds provided to each State under subsection 
(c)(1) to carry out this section shall be used to conduct activities 
to--
            ``(1) improve and promote the diffusion and adoption of 
        state-of-the-art teaching methods, technologies, and program 
        evaluations;
            ``(2) develop innovative approaches to the coordination of 
        literacy services within and among States and with the Federal 
        Government;
            ``(3) assist public and private agencies in coordinating 
        the delivery of literacy services;
            ``(4) encourage government and industry partnerships, 
        including partnerships with small businesses, private nonprofit 
        organizations, and community-based organizations;
            ``(5) encourage innovation and experimentation in literacy 
        activities that will enhance the delivery of literacy services 
        and address emerging problems;
            ``(6) provide technical and policy assistance to State and 
        local governments and service providers to improve literacy 
        policy and programs and access to such programs;
            ``(7) provide training and technical assistance to literacy 
        instructors in reading instruction and in--
                    ``(A) selecting and making the most effective use 
                of state-of-the-art methodologies, instructional 
                materials, and technologies such as--
                            ``(i) computer assisted instruction;
                            ``(ii) video tapes;
                            ``(iii) interactive systems; and
                            ``(iv) data link systems; or
                    ``(B) assessing learning style, screening for 
                learning disabilities, and providing individualized 
                remedial reading instruction; or
            ``(8) encourage and facilitate the training of full-time 
        professional adult educators.
    ``(e) Alternative Uses of Equipment.--Equipment purchased pursuant 
to this section, when not being used to carry out the provisions of 
this section, may be used for other instructional purposes if--
            ``(1) the acquisition of the equipment was reasonable and 
        necessary for the purpose of conducting a properly designed 
        project or activity under this section;
            ``(2) the equipment is used after regular program hours or 
        on weekends; and
            ``(3) such other use is--
                    ``(A) incidental to the use of the equipment under 
                this section;
                    ``(B) does not interfere with the use of the 
                equipment under this section; and
                    ``(C) does not add to the cost of using the 
                equipment under this section.
    ``(f) Applications.--Each State or group of States, as appropriate, 
that desires to receive a grant under this section for a regional adult 
literacy resource center, a State adult literacy resource center, or 
both, shall submit to the Federal Partnership an application that 
describes how the State or group of States will--
            ``(1) develop a literacy resource center or expand an 
        existing literacy resource center;
            ``(2) provide services and activities with the assistance 
        provided under this section;
            ``(3) assure access to services of the center for the 
        maximum participation of all public and private programs and 
        organizations providing or seeking to provide basic skills 
        instruction, including local educational agencies, agencies 
        responsible for corrections education, welfare agencies, labor 
        organizations, businesses, volunteer groups, and community-
        based organizations;
            ``(4) address the measurable goals for improving literacy 
        levels as set forth in the plan submitted pursuant to section 
        104 of the Workforce Development Act of 1995; and
            ``(5) develop procedures for the coordination of literacy 
        activities for statewide and local literacy efforts conducted 
        by public and private organizations, and for enhancing the 
        systems of service delivery.
    ``(g) Payments; Federal Share.--
            ``(1) Payments.--The Secretary of Labor and the Secretary 
        of Education, acting jointly on the advice of the Federal 
        Partnership, shall pay to each State having an application 
        approved pursuant to subsection (f) the Federal share of the 
        cost of the activities described in the application.
            ``(2) Federal share.--The Federal share--
                    ``(A) for each of the first 2 fiscal years in which 
                the State receives funds under this section shall not 
                exceed 80 percent;
                    ``(B) for each of the third and fourth fiscal years 
                in which the State receives funds under this section 
                shall not exceed 70 percent; and
                    ``(C) for the fifth and each succeeding fiscal year 
                in which the State receives funds under this section 
                shall not exceed 60 percent.
            ``(3) Non-federal share.--The non-Federal share of payments 
        under this section may be in cash or in kind, fairly evaluated, 
        including plant, equipment, or services.
    ``(h) Regional Centers.--
            ``(1) In general.--A group of States may enter into an 
        interstate agreement to develop and operate a regional adult 
        literacy resource center for purposes of receiving assistance 
        under this section if the States determine that a regional 
        approach is more appropriate for their situation.
            ``(2) Requirements.--Any State that receives assistance 
        under this section as part of a regional center shall only be 
        required to provide under subsection (g) 50 percent of the 
        funds such State would otherwise be required to provide under 
        such subsection.
            ``(3) Minimum.--In any fiscal year in which the amount a 
        State will receive under this section is less than $100,000, 
        the Federal Partnership may designate the State to receive 
        assistance under this section only as part of a regional 
        center.
            ``(4) Inapplicability.--The provisions of paragraph (3) 
        shall not apply to any State that can demonstrate to the 
        Federal Partnership that the total amount of Federal, State, 
        local and private funds expended to carry out the purposes of 
        this section would equal or exceed $100,000.
            ``(5) Special rule.--In any fiscal year in which paragraph 
        (2) applies, the Federal Partnership may allow certain States 
        that receive assistance as part of a regional center to reserve 
        a portion of such assistance for a State adult literacy 
        resource center pursuant to this section.''.

SEC. 243. NATIONAL WORKFORCE LITERACY ASSISTANCE COLLABORATIVE.

    Subsection (c) of section 201 of the National Literacy Act of 1991 
(20 U.S.C. 1211-1) is repealed.

SEC. 244. FAMILY LITERACY PUBLIC BROADCASTING PROGRAM.

    Section 304 of the National Literacy Act of 1991 (20 U.S.C. 1213c 
note) is repealed.

SEC. 245. MANDATORY LITERACY PROGRAM.

    Paragraph (3) of section 601(i) of the National Literacy Act of 
1991 (20 U.S.C. 1211-2(i) is amended--
            (1) by striking ``1994, and'' and inserting ``1994,''; and
            (2) by inserting ``, and such sums as may be necessary for 
        each of the fiscal years 1996, 1997, 1998, 1999, 2000, and 
        2001'' before the period.

                    TITLE III--MUSEUMS AND LIBRARIES

SEC. 301. MUSEUM AND LIBRARY SERVICES.

    The Museum Services Act (20 U.S.C. 961 et seq.) is amended to read 
as follows:

                ``TITLE II--MUSEUM AND LIBRARY SERVICES

                    ``Subtitle A--General Provisions

``SEC. 201. SHORT TITLE.

    ``This title may be cited as the `Museum and Library Services Act'.

``SEC. 202. GENERAL DEFINITIONS.

    ``As used in this title:
            ``(1) Commission.--The term `Commission' means the National 
        Commission on Libraries and Information Science established 
        under section 3 of the National Commission on Libraries and 
        Information Science Act (20 U.S.C. 1502).
            ``(2) Director.--The term `Director' means the Director of 
        the Institute appointed under section 204.
            ``(3) Institute.--The term `Institute' means the Institute 
        of Museum and Library Services established under section 203.
            ``(4) Museum board.--The term `Museum Board' means the 
        National Museum Services Board established under section 276.

``SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

    ``(a) Establishment.--There is established within the Foundation an 
Institute of Museum and Library Services.
    ``(b) Offices.--The Institute shall consist of an Office of Museum 
Services and an Office of Library Services. There shall be a National 
Museum Services Board in the Office of Museum Services.

``SEC. 204. DIRECTOR OF THE INSTITUTE.

    ``(a) Appointment.--
            ``(1) In general.--The Institute shall be headed by a 
        Director, appointed by the President, by and with the advice 
        and consent of the Senate.
            ``(2) Term.--The Director shall serve for a term of 4 
        years.
            ``(3) Qualifications.--Beginning with the first individual 
        appointed to the position of Director after the date of 
        enactment of this Act, every second individual so appointed 
        shall be appointed from among individuals who have special 
        competence with regard to library and information services. 
        Beginning with the second individual appointed to the position 
        of Director after the date of enactment of this Act, every 
        second individual so appointed shall be appointed from among 
        individuals who have special competence with regard to museum 
        services.
    ``(b) Compensation.--The Director shall be compensated at the rate 
provided for level III of the Executive Schedule under section 5314 of 
title 5, United States Code.
    ``(c) Duties and Powers.--The Director shall perform such duties 
and exercise such powers as may be prescribed by law, including--
            ``(1) awarding financial assistance for activities 
        described in this title; and
            ``(2) using not less than 5 percent and not more than 7 
        percent of the funds made available under this title for each 
        fiscal year to award financial assistance for projects that 
        involve both--
                    ``(A) activities relating to library and 
                information services, as described in subtitle B, 
                carried out in accordance with such subtitle; and
                    ``(B) activities relating to museum services, as 
                described in subtitle C, carried out in accordance with 
                such subtitle.
    ``(d) Nondelegation.--The Director shall not delegate any of the 
functions of the Director to any person who is not directly responsible 
to the Director.
    ``(e) Coordination.--The Director shall ensure coordination of the 
policies and activities of the Institute with the policies and 
activities of other agencies and offices of the Federal Government 
having interest in and responsibilities for the improvement of museums 
and libraries and information services.

``SEC. 205. DEPUTY DIRECTORS.

    ``(a) Appointment.--The Office of Library Services shall be headed 
by a Deputy Director, who shall be appointed by the Director from among 
individuals who have a graduate degree in library science and expertise 
in library and information services. The Office of Museum Services 
shall be headed by a Deputy Director, who shall be appointed by the 
Director from among individuals who have expertise in museum services.
    ``(b) Compensation.--Each such position of Deputy Director shall be 
a Senior Executive Service position, which shall be paid at a rate of 
pay for a position at ES-1 of the Senior Executive Service schedule.

``SEC. 206. PERSONNEL.

    ``(a) In General.--The Director may, in accordance with applicable 
provisions of title 5, United States Code, appoint and determine the 
compensation of such employees as the Director determines to be 
necessary to carry out the duties of the Institute.
    ``(b) Voluntary Services.--The Director may accept and utilize the 
voluntary services of individuals and reimburse the individuals for 
travel expenses, including per diem in lieu of subsistence, in the same 
amounts and to the same extent as authorized under section 5703 of 
title 5, United States Code, for persons employed intermittently in 
Federal Government service.

``SEC. 207. CONTRIBUTIONS.

    ``The Institute shall have authority to solicit, accept, receive, 
and invest in the name of the United States, gifts, bequests, or 
devises of money and other property or services and to use such 
property or services in furtherance of the functions of the Institute. 
Any proceeds from such gifts, bequests, or devises, after acceptance by 
the Institute, shall be paid by the donor or the representative of the 
donor to the Director. The Director shall enter the proceeds in a 
special interest bearing account to the credit of the Institute for the 
purposes in each case specified.

             ``Subtitle B--Library Services and Technology

``SEC. 211. SHORT TITLE.

    ``This subtitle may be cited as the `Library Services and 
Technology Act'.

``SEC. 212. STATEMENT OF PURPOSE; RECOGNITION OF NEED.

    ``(a) Statement of Purpose.--The purposes of this subtitle are as 
follows:
            ``(1) To stimulate excellence and promote equity and 
        lifelong access to learning and information resources in all 
        types of libraries.
            ``(2) To combine the ability of the Federal Government to 
        stimulate significant improvement and innovation in library 
        services with support at State and local levels, and with 
        cooperative programs with other agencies and with public and 
        private sector partnerships, to achieve national library 
        service goals.
            ``(3) To establish national library service goals for the 
        21st century. Such goals are that every person in America will 
        be served by a library that--
                    ``(A) provides all users access to information 
                through regional, State, national, and international 
                electronic networks;
                    ``(B) contributes to a productive workforce, and to 
                economic development, by providing resources and 
                services designed to meet local community needs;
                    ``(C) provides a full range of resources and 
                programs to develop reading and critical thinking 
                skills for children and adults;
                    ``(D) provides targeted services to people of 
                diverse geographic, cultural, and socioeconomic 
                backgrounds, to individuals with disabilities, and to 
                people with limited functional literacy or information 
                skills; and
                    ``(E) provides adequate hours of operation, 
                facilities, staff, collections, and electronic access 
                to information.
    ``(b) Recognition of Need.--The Congress recognizes that strong 
library services are essential to empower people to succeed in our 
Nation's increasingly global and technological environment.

``SEC. 213. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Indian tribe.--The term `Indian tribe' means any 
        tribe, band, nation, or other organized group or community, 
        including any Alaska native village, regional corporation, or 
        village corporation, as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
        seq.), which is recognized by the Secretary of the Interior as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            ``(2) Library consortia.--The term `library consortia' 
        means any local, statewide, regional, interstate, or 
        international cooperative association of library entities which 
        provides for the systematic and effective coordination of the 
        resources of school, public, academic, and special libraries 
        and information centers for improved services for their 
        clientele.
            ``(3) Library entity.--The term `library entity' means a 
        library that performs all activities of a library relating to 
        the collection and organization of library materials and other 
        information and that makes the materials and information 
        publicly available. Such term includes State library 
        administrative agencies and the libraries, library related 
        entities, cooperatives, and consortia through which library 
        services are made publicly available.
            ``(4) Public library.--The term `public library' means a 
        library that serves free of charge all residents of a 
        community, district, or region, and receives its financial 
        support in whole or in part from public funds. Such term also 
        includes a research library, which, for the purposes of this 
        sentence, means a library, which--
                    ``(A) makes its services available to the public 
                free of charge;
                    ``(B) has extensive collections of books, 
                manuscripts, and other materials suitable for scholarly 
                research which are not available to the public through 
                public libraries;
                    ``(C) engages in the dissemination of humanistic 
                knowledge through services to readers, fellowships, 
                educational and cultural programs, publications of 
                significant research, and other activities; and
                    ``(D) is not an integral part of an institution of 
                higher education.
            ``(5) State.--The term `State', unless otherwise specified, 
        includes the several States of the United States, the District 
        of Columbia, the Commonwealth of Puerto Rico, Guam, American 
        Samoa, the United States Virgin Islands, the Commonwealth of 
        the Northern Mariana Islands, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the Republic 
        of Palau.
            ``(6) State advisory council.--The term `State advisory 
        council' means an advisory council established pursuant to 
        section 252.
            ``(7) State library administrative agency.--The term `State 
        library administrative agency' means the official agency of a 
        State charged by law of that State with the extension and 
        development of public library services throughout the State, 
        which has adequate authority under law of the State to 
        administer the State plan in accordance with the provisions of 
        this subtitle.
            ``(8) State plan.--The term `State plan' means the document 
        which gives assurances that the officially designated State 
        library administrative agency has the fiscal and legal 
        authority and capability to administer all aspects of this 
        subtitle, provides assurances for establishing the State's 
        policies, priorities, criteria, and procedures necessary to the 
        implementation of all programs under this subtitle, submits 
        copies for approval as required by regulations promulgated by 
        the Director, and identifies a State's library needs and sets 
        forth the activities to be taken toward meeting the identified 
        needs supported with the assistance of Federal funds made 
        available under this subtitle.

``SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authority.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary of Education--
                    ``(A) for the purpose of awarding grants under 
                subchapter A of chapter 2 and for related 
                administrative expenses, $75,000,000 for fiscal year 
                1996, and such sums as may be necessary for each of the 
                4 succeeding fiscal years; and
                    ``(B) for the purpose of awarding grants under 
                subchapter B of chapter 2 and for related 
                administrative expenses, $75,000,000 for fiscal year 
                1996, and such sums as may be necessary for each of the 
                4 succeeding fiscal years.
            ``(2) Transfer.--The Secretary of Education shall transfer 
        any funds appropriated under the authority of paragraph (1) to 
        the Director to enable the Director to carry out this subtitle.
    ``(b) Joint Projects.--Not less than 5 percent and not more than 7 
percent of the funds appropriated under this section for a fiscal year 
may be made available for projects described in section 204(c)(2) for 
the fiscal year.
    ``(c) Administration.--Not more than 10 percent of the funds 
appropriated under this section for a fiscal year may be used to pay 
for the Federal administrative costs of carrying out this subtitle.

                ``CHAPTER 1--BASIC PROGRAM REQUIREMENTS

``SEC. 221. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount appropriated under the 
authority of section 214(a) for any fiscal year, the Director--
            ``(1) shall reserve 1\1/2\ percent to award grants in 
        accordance with section 261; and
            ``(2) shall reserve 8 percent to carry out a national 
        leadership program in library science in accordance with 
        section 262.
    ``(b) Allotments.--
            ``(1) In general.--From the sums appropriated under the 
        authority of section 214(a) and not reserved under subsection 
        (a) for any fiscal year, the Director shall allot the minimum 
        allotment, as determined under paragraph (3), to each State. 
        Any sums remaining after minimum allotments have been made for 
        such year shall be allotted in the manner set forth in 
        paragraph (2).
            ``(2) Remainder.--From the remainder of any sums 
        appropriated under the authority of section 214(a) that are not 
        reserved under subsection (a) and not allotted under paragraph 
        (1) for any fiscal year, the Director shall allot to each State 
        an amount that bears the same relation to such remainder as the 
        population of the State bears to the population of all the 
        States.
            ``(3) Minimum allotment.--
                    ``(A) In general.--For the purposes of this 
                subsection, the minimum allotment shall be--
                            ``(i) with respect to appropriations for 
                        the purposes of subchapter A of chapter 2, 
                        $200,000 for each State, except that the 
                        minimum allotment shall be $40,000 in the case 
                        of Guam, American Samoa, the United States 
                        Virgin Islands, the Commonwealth of the 
                        Northern Mariana Islands, the Republic of the 
                        Marshall Islands, the Federated States of 
                        Micronesia, and the Republic of Palau; and
                            ``(ii) with respect to appropriations for 
                        the purposes of subchapter B of chapter 2, 
                        $200,000 for each State, except that the 
                        minimum allotment shall be $40,000 in the case 
                        of Guam, American Samoa, the United States 
                        Virgin Islands, the Commonwealth of the 
                        Northern Mariana Islands, the Republic of the 
                        Marshall Islands, the Federated States of 
                        Micronesia, and the Republic of Palau.
                    ``(B) Ratable reductions.--If the sums appropriated 
                under the authority of section 214(a) and not reserved 
                under subsection (a) for any fiscal year are 
                insufficient to fully satisfy the aggregate of the 
                minimum allotments for all States for that purpose for 
                such year, each of such minimum allotments shall be 
                reduced ratably.
            ``(4) Data.--The population of each State and of all the 
        States shall be determined by the Director on the basis of the 
        most recent data available from the Bureau of the Census.

``SEC. 222. ADMINISTRATION AND EVALUATION.

    ``(a) In General.--Not more than 5 percent of the total funds 
received under this subtitle for any fiscal year by a State may be used 
for administration.
    ``(b) Construction.--Nothing in this section shall be construed to 
limit spending for evaluation costs under section 251 from sources 
other than this subtitle.

``SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF EFFORT 
              REQUIREMENTS.

    ``(a) Payments.--The Director shall pay to each State library 
administrative agency having a State plan approved under section 224 
the Federal share of the cost of the activities described in the State 
plan.
    ``(b) Federal Share.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        Federal share shall be 50 percent.
            ``(2) Non-federal share.--The non-Federal share of payments 
        shall be provided from non-Federal, State, or local sources.
            ``(3) Special rule.--The Federal share--
                    ``(A) for the Commonwealth of Puerto Rico, Guam, 
                American Samoa, the United States Virgin Islands, and 
                the Commonwealth of the Northern Mariana Islands, shall 
                be 66 percent; and
                    ``(B) for the Republic of the Marshall Islands, the 
                Federated States of Micronesia, and the Republic of 
                Palau, shall be 100 percent.
    ``(c) Maintenance of Effort.--
            ``(1) In general.--The amount otherwise payable to a State 
        for a fiscal year under chapter 2 shall be reduced if the level 
        of State expenditures, as described in paragraph (2), for the 
        previous fiscal year are less than the average of the total of 
        such expenditures for the 3 fiscal years preceding that 
        previous fiscal year. The amount of the reduction in allotment 
        for any fiscal year shall be in exact proportion to the amount 
        which the State fails to meet the requirement of this 
        subsection.
            ``(2) Level of state expenditures.--The level of State 
        expenditures for the purposes of paragraph (1) shall include 
        all State dollars expended by the State library administrative 
        agency for library programs that are consistent with the 
        purposes of this subtitle. All funds included in the 
        maintenance of effort calculation under this subsection shall 
        be expended during the fiscal year for which the determination 
        is made, and shall not include capital expenditures, special 
        one-time project costs, or similar windfalls.
            ``(3) Waiver.--The Director may waive the requirements of 
        paragraph (1) if the Director determines that such a waiver 
        would be equitable due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a precipitous and 
        unforeseen decline in the financial resources of the State.

``SEC. 224. STATE PLANS.

    ``(a) State Plan Required.--
            ``(1) In general.--In order to be eligible to receive a 
        grant under this subtitle, a State library administrative 
        agency shall submit a State plan to the Director not later than 
        April 1, 1996.
            ``(2) Duration.--The State plan shall cover a period of 5 
        fiscal years.
            ``(3) Revisions.--If a State library administrative agency 
        makes a substantive revision to its State plan, then the State 
        library administrative agency shall submit to the Director an 
        amendment to the State plan containing such revision not later 
        than April 1 of the fiscal year preceding the fiscal year for 
        which the amendment will be effective.
    ``(b) Contents.--The State plan shall--
            ``(1) specify priorities for improvement of library 
        services so that all people in the State have convenient and 
        appropriate access to information delivered by libraries 
        through new and emerging technologies assisted under subchapter 
        A of chapter 2;
            ``(2) identify those persons who need special services 
        under subchapter B of chapter 2 and specify priorities for 
        meeting the purpose described in section 241(a);
            ``(3) describe how section 243 will be implemented within 
        the State, specify the accountability and evaluation procedures 
        to be followed by public libraries receiving funds under such 
        section, and specify whether and how funds are to be aggregated 
        under section 243(b)(2) to improve library services provided to 
        children in the State described in section 243(a)(2);
            ``(4) describe the activities and services for which 
        assistance is sought, including--
                    ``(A) priorities for the use of funds under this 
                subtitle; and
                    ``(B) a description of the types of libraries and 
                library entities that will be eligible to receive funds 
                under this subtitle;
            ``(5) provide that any funds paid to the State in 
        accordance with the State plan shall be expended solely for the 
        purposes for which the funds are authorized and appropriated 
        and that such fiscal control and fund accounting procedures 
        have been adopted as may be necessary to assure proper 
        disbursement of, and account for, Federal funds paid to the 
        State (including any such funds paid by the State to any other 
        entity) under this subtitle;
            ``(6) provide procedures to ensure that the State library 
        administrative agency shall involve libraries and users 
        throughout the State in policy decisions regarding 
        implementation of this subtitle, and development of the State 
        plan, including establishing the State advisory council;
            ``(7) provide satisfactory assurance that the State library 
        administrative agency--
                    ``(A) will make such reports, in such form and 
                containing such information, as the Director may 
                require to carry out this subtitle and to determine the 
                extent to which funds provided under this subtitle have 
                been effective in carrying out the purposes of this 
                subtitle, including reports on evaluations under 
                section 251;
                    ``(B) will keep such records and afford such access 
                thereto as the Director may find necessary to assure 
                the correctness and verification of such reports;
                    ``(C) will provide to State advisory council 
                members an orientation regarding the provisions of this 
                subtitle and members' responsibilities, including 
                clear, easily understandable information about the 
                State plan; and
                    ``(D) will report annually at a meeting of the 
                State advisory council on the State library 
                administrative agency's progress toward meeting the 
                goals and objectives of the State plan;
            ``(8) describe the process for assessing the needs for 
        library and information services within the State, and describe 
        the results of the most recent needs assessment;
            ``(9) establish goals and objectives for achieving within 
        the State the purposes of this subtitle, including the purposes 
        in sections 212(a), 231(a), and 241(a); and
            ``(10) describe how the State library administrative 
        agency, in consultation with the State advisory council, will--
                    ``(A) administer this subtitle; and
                    ``(B) conduct evaluations under section 251, 
                including a description of the types of evaluation 
                methodologies to be employed.
    ``(c) Accountability.--Each State plan shall--
            ``(1) establish State-defined performance goals to set 
        forth the level of performance to be achieved by an activity 
        assisted under this subtitle;
            ``(2) express such goals in an objective, quantifiable, and 
        measurable form unless authorized to be in an alternative form 
        in accordance with section 1115(b) of title 31, United States 
        Code;
            ``(3) briefly describe the operational processes, skills 
        and technology, and the human, capital, information, or other 
        resources, required to meet the performance goals;
            ``(4) establish performance indicators in accordance with 
        subsection (d) to be used in measuring or assessing the 
        relevant outputs, service levels, and outcomes, of each 
        activity assisted under this subtitle;
            ``(5) provide a basis for comparing actual program results 
        with the established performance goals; and
            ``(6) describe the means to be used to verify and validate 
        measured values.
    ``(d) Performance Indicators.--Performance indicators described in 
subsection (c)(4) shall include--
            ``(1) evidence of progress toward the national library 
        service goals under section 212(a)(3);
            ``(2) consultation with the State educational agency;
            ``(3) identification of activities suitable for nationwide 
        replication; and
            ``(4) progress in improvement of library services provided 
        to children described in section 243(a)(2).
    ``(e) Approval.--
            ``(1) In general.--The Director shall approve any State 
        plan under this subtitle that meets the requirements of this 
        subtitle and provides satisfactory assurances that the 
        provisions of such plan will be carried out.
            ``(2) Public availability.--Each State library 
        administrative agency receiving a grant under this subtitle 
        shall make the State plan available to the public.
            ``(3) Administration.--If the Director determines that the 
        State plan does not meet the requirements of this section, the 
        Director shall--
                    ``(A) immediately notify the State library 
                administrative agency of such determination and the 
                reasons for such determination;
                    ``(B) offer the State library administrative agency 
                the opportunity to revise its State plan;
                    ``(C) provide technical assistance in order to 
                assist the State library administrative agency to meet 
                the requirements of this section; and
                    ``(D) provide the State library administrative 
                agency the opportunity for a hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

         ``Subchapter A--Information Access Through Technology

``SEC. 231. GRANTS TO STATES FOR INFORMATION ACCESS THROUGH TECHNOLOGY.

    ``(a) Purpose.--The purpose of this subchapter is to provide for 
the improvement of library services so that all people have access to 
information delivered by libraries through new and emerging 
technologies, whether the information originates locally, from the 
State, nationally, or globally.
    ``(b) Grants.--
            ``(1) In general.--The Director shall award grants under 
        this subchapter from allotments under section 221(b) to States 
        that have State plans approved under section 224.
            ``(2) Federal share.--Grants awarded under paragraph (1) 
        shall be used to pay the Federal share of the cost of 
        activities under section 232 that are described in a State plan 
        approved under section 224.

``SEC. 232. AUTHORIZED ACTIVITIES.

    ``Each State that receives a grant under section 231(b) may use the 
grant funds to provide statewide services and subgrants to public 
libraries, other types of libraries and library consortia, or library 
linkages with other entities, in accordance with the State plan. Such 
services and subgrants shall involve--
            ``(1) organization, access, and delivery of information;
            ``(2) lifelong learning, and workforce and economic 
        development; or
            ``(3) support of technology infrastructure.

    ``Subchapter B--Information Empowerment Through Special Services

``SEC. 241. GRANTS TO STATES FOR INFORMATION EMPOWERMENT THROUGH 
              SPECIAL SERVICES.

    ``(a) Purpose.--The purpose of this subchapter is to provide for 
the improvement of library and information services targeted to persons 
of all ages and cultures who have difficulty using a library and to 
communities which are geographically disadvantaged in access to 
libraries, who or which need special materials or services, or who or 
which will benefit from outreach services for equity of access to 
library services and information technologies, including children (from 
birth through age 17) from families living below the income official 
poverty line (as defined by the Office of Management and Budget, and 
revised annually in accordance with section 673(2) of the Community 
Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a family of 
the size involved).
    ``(b) Grants.--
            ``(1) In general.--The Director shall award grants under 
        this subchapter from allotments under section 221(b) to States 
        that have State plans approved under section 224.
            ``(2) Federal share.--Grants awarded under paragraph (1) 
        shall be used to pay the Federal share of the cost of the 
        activities under section 242 that are described in a State plan 
        approved under section 224.

``SEC. 242. AUTHORIZED ACTIVITIES.

    ``Each State that receives a grant under section 241(b) may use the 
grant funds to provide statewide services and subgrants to public 
libraries, other types of libraries and library consortia, or library 
linkages with other entities, in accordance with the State plan. Such 
services and subgrants shall involve activities that--
            ``(1) increase literacy and lifelong learning;
            ``(2) serve persons in rural, underserved, or inner-city 
        areas; or
            ``(3) support the provision of special services.

``SEC. 243. SERVICES FOR CHILDREN IN POVERTY.

    ``(a) State Level Reservation.--
            ``(1) In general.--Except as provided in subsection (c), 
        from the total amount that each State library administrative 
        agency receives under this subchapter for a fiscal year, such 
        agency shall reserve the amount of funds determined under 
        paragraph (2) to provide assistance to public libraries in the 
        State to enable such libraries to enhance the provision of 
        special services to children described in such paragraph who 
        are served by such libraries.
            ``(2) Amount.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amount of funds a State library 
                administrative agency shall reserve under paragraph (1) 
                shall be equal to the sum of--
                            ``(i) $1.50 for every preschooler (birth 
                        through age 5) in the State from a family 
                        living below the income official poverty line 
                        (as defined by the Office of Management and 
                        Budget, and revised annually in accordance with 
                        section 673(2) of the Community Services Block 
                        Grant Act (42 U.S.C. 9902(2)) applicable to a 
                        family of the size involved); and
                            ``(ii) $1.00 for every school-age child 
                        (ages 6 through 17) in the State from such a 
                        family.
                    ``(B) Maximum.--The maximum amount that a State 
                library administrative agency may reserve under 
                paragraph (1) for any fiscal year shall not exceed 15 
                percent of the total amount such agency receives under 
                this subchapter for such year.
    ``(b) Within State Distribution.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each public library in a State shall receive under this section 
        for a fiscal year an amount that bears the same relation to the 
        amount the State library administrative agency reserves under 
        subsection (a) for such year as the number of children 
        described in subsection (a)(2) served by such public library 
        for the preceding fiscal year bears to the number of such 
        children served by all public libraries in the State for such 
        preceding fiscal year.
            ``(2) Exception.--
                    ``(A) In general.--If a State library 
                administrative agency determines that the amount 
                available under paragraph (1) for a fiscal year for 2 
                or more public libraries is too small to be effective, 
                then such agency may aggregate such amounts for such 
                year.
                    ``(B) Requirements.--Each State library 
                administrative agency aggregating amounts under 
                subparagraph (A) for a fiscal year--
                            ``(i) shall only aggregate the amount 
                        available under paragraph (1) for a public 
                        library for a fiscal year if the amount so 
                        available for such year is $3,000 or less; and
                            ``(ii) shall use such aggregated amounts to 
                        enhance the library services provided to the 
                        children described in subsection (a)(2) served 
                        by the public libraries for which such agency 
                        aggregated such amounts for such year.
    ``(c) Adjustments.--
            ``(1) Appropriations increase.--For any fiscal year for 
        which the amount appropriated to carry out this subtitle is 
        greater than the amount appropriated to carry out this subtitle 
        for the preceding fiscal year by a percentage that equals or 
        exceeds 10 percent, the amount each State library 
        administrative agency shall reserve under subsection (a)(2) for 
        the fiscal year for which the determination is made shall be 
        increased by the same such percentage.
            ``(2) Appropriations decrease.--For any fiscal year for 
        which the amount appropriated to carry out this subtitle is 
        less than the amount appropriated to carry out this subtitle 
        for the preceding fiscal year by a percentage that equals or 
        exceeds 10 percent, the amount each State library 
        administrative agency shall reserve under subsection (a)(2) for 
        the fiscal year for which the determination is made shall be 
        decreased by the same such percentage.
    ``(d) Plan.--Each public library desiring assistance under this 
section shall submit a plan for the expenditure of funds under this 
section to the State library administrative agency. Such plan shall 
include a description of how the library will--
            ``(1) identify the children described in subsection (a)(2);
            ``(2) collaborate with community representatives to ensure 
        planning and implementation of appropriate, helpful library 
        services; and
            ``(3) establish indicators of success.
    ``(e) Priorities.--Priorities for the use of funds under this 
section may include activities for children described in subsection 
(a)(2) such as--
            ``(1) development of after-school homework support and 
        summer and vacation reading programs;
            ``(2) development of family literacy programs;
            ``(3) extension of branch hours to provide space and 
        resources for homework;
            ``(4) development of coalitions and training programs 
        involving libraries and other service providers in the State;
            ``(5) development of technological resources;
            ``(6) hiring specialized outreach staff; and
            ``(7) development of peer tutoring programs.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

``SEC. 251. STATE EVALUATION.

    ``(a) In General.--Each State receiving a grant under this subtitle 
shall annually evaluate, in accordance with subsections (b) and (c), 
the activities assisted under subchapters A and B of chapter 2.
    ``(b) Subchapter A Activities.--Each evaluation of activities 
assisted under subchapter A of chapter 2 shall include a description of 
how effective such activities are in ensuring that--
            ``(1) every American will have affordable access to 
        information resources through electronic networks;
            ``(2) every public library will be connected to national 
        and international electronic networks;
            ``(3) every State library agency will promote planning and 
        provide support for full library participation in electronic 
        networks;
            ``(4) every public librarian will possess the knowledge and 
        skills needed to help people obtain information through 
        electronic sources; and
            ``(5) every public library will be equipped with the 
        technology needed to help people obtain information in an 
        effective and timely manner.
    ``(c) Subchapter B Activities.--
            ``(1) In general.--Each evaluation of activities assisted 
        under subchapter B of chapter 2 shall include--
                    ``(A) with respect to activities to increase 
                literacy and lifelong learning--
                            ``(i) an analysis of the current situation 
                        in the State;
                            ``(ii) how such activities will meet the 
                        needs of the current situation in the State and 
                        the target groups to be served; and
                            ``(iii) a report of the effect of such 
                        activities in relation to the objectives of 
                        such activities;
                    ``(B) with respect to activities to serve people in 
                rural and urban areas--
                            ``(i) procedures used to identify library 
                        users within a community;
                            ``(ii) a description of needs and target 
                        groups to be served;
                            ``(iii) an analysis of the levels of 
                        success to be targeted;
                            ``(iv) a report of the effect of such 
                        activities in relation to the objectives of 
                        such activities; and
                            ``(v) a description of the background of 
                        the current level of library service to people 
                        in rural and urban areas, and how such 
                        activities will extend, improve, and further 
                        provide library resources to such people;
                    ``(C) with respect to activities to support the 
                provision of special services--
                            ``(i) an analysis of the current situation 
                        in the State;
                            ``(ii) how such activities will meet the 
                        needs of the current situation in the State; 
                        and
                            ``(iii) a report of the effect of such 
                        activities in relation to the objectives of 
                        such activities; and
                    ``(D) with respect to activities to serve children 
                under section 243--
                            ``(i) an analysis of the current local 
                        situations;
                            ``(ii) a description of such activities, 
                        including objectives and costs of such 
                        activities; and
                            ``(iii) a report of the effect of such 
                        activities in relation to the objectives of 
                        such activities.
            ``(2) Information.--Each public library receiving 
        assistance under section 243 shall submit to the State library 
        administrative agency such information as such agency may 
        require to meet the requirements of paragraph (1)(D).

``SEC. 252. STATE ADVISORY COUNCILS.

    ``(a) Councils Required.--Each State desiring assistance under this 
subtitle shall establish a State advisory council.
    ``(b) Composition.--Each State advisory council shall be broadly 
representative of the library entities in the State, including public, 
school, academic, special, and institutional libraries, and libraries 
serving individuals with disabilities.
    ``(c) Duties.--Each State advisory council shall--
            ``(1) consult with the State library administrative agency 
        regarding the development of the State plan;
            ``(2) advise the State library administrative agency on the 
        development of, and policy matters arising in the 
        administration of, the State plan, including mechanisms for 
        evaluation;
            ``(3) assist the State library administrative agency in--
                    ``(A) the dissemination of information regarding 
                activities assisted under this subtitle; and
                    ``(B) the evaluation of activities assisted under 
                this subtitle; and
            ``(4) establish bylaws to carry out such council's duties 
        under this subsection.

                  ``Subchapter B--Federal Requirements

``SEC. 261. SERVICES FOR INDIAN TRIBES.

    ``(a) Grants Authorized.--From amounts reserved under section 
221(a)(1) for any fiscal year the Director shall award grants to 
organizations primarily serving and representing Indian tribes to 
enable such organizations to carry out the authorized activities 
described in subsection (b).
    ``(b) Authorized Activities.--Grant funds awarded under this 
section may be used for--
            ``(1) inservice or preservice training of Indians as 
        library personnel;
            ``(2) the purchase of library materials;
            ``(3) the conduct of special library programs for Indians;
            ``(4) salaries of library personnel;
            ``(5) transportation to enable Indians to have access to 
        library services;
            ``(6) dissemination of information about library services;
            ``(7) assessment of tribal library needs; and
            ``(8) contracts to provide public library services to 
        Indians living on or near reservations or to accomplish any 
        activities described in paragraphs (1) through (7).
    ``(c) Prohibition.--No funds shall be awarded pursuant to this 
section unless such funds will be administered by a librarian.
    ``(d) Duplication.--In awarding grants under this section, the 
Director shall take such actions as may be necessary to prevent the 
grant funds provided under this section from being received by any 2 or 
more entities to serve the same population.
    ``(e) Maintenance of Effort.--Each organization that receives a 
grant under this section and supports a public library system shall 
continue to expend from Federal, State, and local sources an amount not 
less than the amount expended by such organization from such sources 
for public library services during the second fiscal year preceding the 
fiscal year for which the determination is made.
    ``(f) Construction.--Nothing in this section shall be construed to 
prohibit the dissemination of restricted collections of tribal cultural 
materials with funds made available under this section.
    ``(g) Application.--
            ``(1) In general.--Any organization which desires to 
        receive a grant under this section shall submit an application 
        to the Director that--
                    ``(A) describes the activities and services for 
                which assistance is sought; and
                    ``(B) contains such information as the Director may 
                require by regulation.
            ``(2) Criteria.--The Director shall issue criteria for the 
        approval of applications under this section, but such criteria 
        shall not include--
                    ``(A) an allotment formula; or
                    ``(B) a matching of funds requirement.

``SEC. 262. NATIONAL LEADERSHIP PROGRAM.

    ``(a) In General.--From the amounts reserved under section 
221(a)(2) for any fiscal year the Director shall establish and carry 
out a program of national leadership and evaluation activities to 
enhance the quality of library services nationwide. Such activities may 
include--
            ``(1) education and training of persons in library and 
        information science, particularly in areas of new technology 
        and other critical needs, including graduate fellowships, 
        traineeships, institutes, or other programs;
            ``(2) research and demonstration projects related to the 
        improvement of libraries, education in library and information 
        science, enhancement of library services through effective and 
        efficient use of new technologies, and dissemination of 
        information derived from such projects; and
            ``(3) preservation or digitization of library materials and 
        resources, giving priority to projects emphasizing 
        coordination, avoidance of duplication, and access by 
        researchers beyond the institution or library entity 
        undertaking the project.
    ``(b) Grants or Contracts.--
            ``(1) In general.--The Director may carry out the 
        activities described in subsection (a) by awarding grants to, 
        or entering into contracts with, library entities, agencies, or 
        institutions of higher education.
            ``(2) Competitive basis.--Grants and contracts described in 
        paragraph (1) shall be awarded on a competitive basis.
    ``(c) Special Rule.--The Director, with policy advice from the 
Museum Board shall make every effort to ensure that activities assisted 
under this section are administered by appropriate library and 
information services professionals or experts and science professionals 
or experts.

``SEC. 263. STATE AND LOCAL INITIATIVES.

    ``Nothing in this subtitle shall be construed to interfere with 
State and local initiatives and responsibility in the conduct of 
library services. The administration of libraries, the selection of 
personnel and library books and materials, and insofar as consistent 
with the purposes of this subtitle, the determination of the best uses 
of the funds provided under this subtitle, shall be reserved to the 
States and their local subdivisions.

                     ``Subtitle C--Museum Services

``SEC. 271. PURPOSE.

    ``It is the purpose of this subtitle--
            ``(1) to encourage and assist museums in their educational 
        role, in conjunction with formal systems of elementary, 
        secondary, and postsecondary education and with programs of 
        nonformal education for all age groups;
            ``(2) to assist museums in modernizing their methods and 
        facilities so that the museums may be better able to conserve 
        the cultural, historic, and scientific heritage of the United 
        States; and
            ``(3) to ease the financial burden borne by museums as a 
        result of their increasing use by the public.

``SEC. 272. DEFINITIONS.

    ``As used in this subtitle, the term `museum' means a public or 
private nonprofit agency or institution organized on a permanent basis 
for essentially educational or aesthetic purposes, that utilizes a 
professional staff, owns or utilizes tangible objects, cares for the 
tangible objects, and exhibits the tangible objects to the public on a 
regular basis.

``SEC. 273. MUSEUM SERVICES ACTIVITIES.

    ``(a) Grants.--The Director, subject to the policy direction of the 
Museum Board, may make grants to museums to pay for the Federal share 
of the cost of increasing and improving museum services, through such 
activities as--
            ``(1) programs to enable museums to construct or install 
        displays, interpretations, and exhibitions in order to improve 
        museum services to the public;
            ``(2) assisting museums in developing and maintaining 
        professionally trained or otherwise experienced staff to meet 
        their needs;
            ``(3) assisting museums in meeting their administrative 
        costs in preserving and maintaining their collections, 
        exhibiting the collections to the public, and providing 
        educational programs to the public through the use of the 
        collections;
            ``(4) assisting museums in cooperating with each other in 
        developing traveling exhibitions, meeting transportation costs, 
        and identifying and locating collections available for loan;
            ``(5) assisting museums in conservation of their 
        collections; and
            ``(6) developing and carrying out specialized programs for 
        specific segments of the public, such as programs for urban 
        neighborhoods, rural areas, Indian reservations, and penal and 
        other State institutions.
    ``(b) Contracts and Cooperative Agreements.--
            ``(1) Projects to strengthen museum services.--The 
        Director, subject to the policy direction of the Museum Board, 
        is authorized to enter into contracts and cooperative 
        agreements with appropriate entities to pay for the Federal 
        share of enabling the entities to undertake projects designed 
        to strengthen museum services, except that any contracts or 
        cooperative agreements entered into pursuant to this subsection 
        shall be effective only to such extent or in such amounts as 
        are provided in appropriations Acts.
            ``(2) Limitation on amount.--The aggregate amount of 
        financial assistance made available under this subsection for a 
        fiscal year shall not exceed 15 percent of the amount 
        appropriated under this subtitle for such fiscal year.
            ``(3) Operational expenses.--No financial assistance may be 
        provided under this subsection to pay for operational expenses.
    ``(c) Federal Share.--
            ``(1) 50 percent.--Except as provided in paragraph (2), the 
        Federal share described in subsections (a) and (b) shall be not 
        more than 50 percent.
            ``(2) 100 percent.--The Director may use not more than 20 
        percent of the funds made available under this section for a 
        fiscal year to make grants under subsection (a), or enter into 
        contracts or agreements under subsection (b), for which the 
        Federal share may be 100 percent.
    ``(d) Review and Evaluation.--The Director shall establish 
procedures for reviewing and evaluating grants, contracts, and 
cooperative agreements made or entered into under this section. 
Procedures for reviewing grant applications or contracts and 
cooperative agreements for financial assistance under this section 
shall not be subject to any review outside of the Institute.

``SEC. 274. ASSESSMENTS.

    ``(a) In General.--The Director, subject to the policy direction of 
the Museum Board and in consultation with appropriate representatives 
of museums and other types of community institutions, agencies, and 
organizations, shall undertake an assessment of the collaborative 
possibilities museums can engage in to serve the public more broadly 
and effectively.
    ``(b) Contents.--The assessment shall include--
            ``(1) an investigation of opportunities to establish 
        collaborative programs between museums within a community, 
        including an investigation of the role that larger institutions 
        can play as mentors to smaller institutions;
            ``(2) an investigation of opportunities to establish 
        collaborative programs between museums and community 
        organizations;
            ``(3) an investigation of the potential for collaboration 
        between museums on technology issues to reach a broader 
        audience; and
            ``(4) an investigation of opportunities for museums to work 
        with each other and with other community resources to serve the 
        public better and to coordinate professional and financial 
        development activities.
    ``(c) Limitation.--This section shall not apply in any fiscal year 
for which the amount appropriated under section 277(a) is less than 
$28,700,000.

``SEC. 275. AWARD.

    ``The Director, with the advice of the Museum Board, may annually 
award a National Award for Museum Service to outstanding museums that 
have made significant contributions in service to their communities.

``SEC. 276. NATIONAL MUSEUM SERVICES BOARD.

    ``(a) Establishment.--There is established in the Institute a 
National Museum Services Board.
    ``(b) Composition and Qualifications.--
            ``(1) Composition.--The Museum Board shall consist of the 
        Director and 14 members appointed by the President, by and with 
        the advice and consent of the Senate.
            ``(2) Qualifications.--The appointive members of the Museum 
        Board shall be selected from among citizens of the United 
        States--
                    ``(A) who are members of the general public;
                    ``(B) who are or have been affiliated with--
                            ``(i) resources that, collectively, are 
                        broadly representative of the curatorial, 
                        conservation, educational, and cultural 
                        resources of the United States; and
                            ``(ii) museums that, collectively, are 
                        broadly representative of various types of 
                        museums, including museums relating to science, 
                        history, technology, and art, zoos, and 
                        botanical gardens; and
                    ``(C) who are recognized for their broad knowledge, 
                expertise, or experience in museums or commitment to 
                museums.
            ``(3) Geographic and other representation.--Members of the 
        Museum Board shall be appointed to reflect persons from various 
        geographic regions of the United States. The Museum Board may 
        not include, at any time, more than 3 members from a single 
        State. In making such appointments, the President shall give 
        due regard to equitable representation of women, minorities, 
        and persons with disabilities who are involved with museums.
    ``(c) Terms.--
            ``(1) In general.--Each appointive member of the Museum 
        Board shall serve for a term of 5 years, except that--
                    ``(A) of the members first appointed, 3 shall serve 
                for terms of 5 years, 3 shall serve for terms of 4 
                years, 3 shall serve for terms of 3 years, 3 shall 
                serve for terms of 2 years, and 2 shall serve for terms 
                of 1 year, as designated by the President at the time 
                of nomination for appointment; and
                    ``(B) any member appointed to fill a vacancy shall 
                serve for the remainder of the term for which the 
                predecessor of the member was appointed.
            ``(2) Reappointment.--No member of the Museum Board who has 
        been a member for more than 7 consecutive years shall be 
        eligible for reappointment.
            ``(3) Service until successor takes office.--
        Notwithstanding any other provision of this subsection, a 
        member shall serve after the expiration of the term of the 
        member until the successor to the member takes office.
    ``(d) Duties and Powers.--The Museum Board shall have the 
responsibility for general policies with respect to the duties, powers, 
and authorities vested in the Institute relating to museum services, 
including general policies with respect to--
            ``(1) financial assistance awarded under this title for 
        museum services;
            ``(2) projects described in section 204(c)(2); and
            ``(3) measures to ensure that the policies and activities 
        of the Institute for Museum and Library Services are 
        coordinated with other activities of the Federal Government.
    ``(e) Chairperson.--The President shall designate 1 of the 
appointive members of the Museum Board as Chairperson of the Museum 
Board.
    ``(f) Meetings.--
            ``(1) In general.--The Museum Board shall meet--
                    ``(A) not less than 3 times each year, including--
                            ``(i) not less than 2 times each year 
                        separately; and
                            ``(ii) not less than 1 time each year in a 
                        joint meeting with the Commission, convened for 
                        purposes of making general policies with 
                        respect to financial assistance for projects 
                        described in section 204(c)(2); and
                    ``(B) at the call of the Director.
            ``(2) Vote.--All decisions by the Museum Board with respect 
        to the exercise of the duties and powers of the Museum Board 
        shall be made by a majority vote of the members of the Museum 
        Board who are present. All decisions by the Commission and the 
        Museum Board with respect to the policies described in 
        paragraph (1)(A)(ii) shall be made by a \2/3\ majority vote of 
        the total number of the members of the Commission and the 
        Museum Board who are present.
    ``(g) Quorum.--A majority of the members of the Museum Board shall 
constitute a quorum for the conduct of business at official meetings of 
the Museum Board, but a lesser number of members may hold hearings. A 
majority of the members of the Commission and a majority of the members 
of the Museum Board shall constitute a quorum for the conduct of 
business at official joint meetings of the Commission and the Museum 
Board.
    ``(h) Compensation and Travel Expenses.--
            ``(1) Compensation.--Each member of the Museum Board who is 
        not an officer or employee of the Federal Government shall be 
        compensated at a rate to be fixed by the President, but not to 
        exceed the daily equivalent of the maximum rate authorized for 
        a position above grade GS-15 of the General Schedule under 
        section 5108 of title 5, United States Code, for each day 
        (including travel time) during which such member is engaged in 
        the performance of the duties of the Museum Board. All members 
        of the Museum Board who are officers or employees of the 
        Federal Government shall serve without compensation in addition 
        to compensation received for their services as officers or 
        employees of the Federal Government.
            ``(2) Travel expenses.--The members of the Museum Board 
        shall be allowed travel expenses, including per diem in lieu of 
        subsistence, in the same amounts and to the same extent, as 
        authorized under section 5703 of title 5, United States Code, 
        for persons employed intermittently in Federal Government 
        service.
    ``(i) Coordination.--The Museum Board, with the advice of the 
Director, shall take steps to ensure that the policies and activities 
of the Institute are coordinated with other activities of the Federal 
Government.

``SEC. 277. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants.--For the purpose of carrying out this subtitle, there 
are authorized to be appropriated to the Director $28,700,000 for the 
fiscal year 1996, and such sums as may be necessary for each of the 
fiscal years 1997 through 2000.
    ``(b) Administration.--Not more than 10 percent of the funds 
appropriated under this section for a fiscal year may be used to pay 
for the administrative costs of carrying out this subtitle.
    ``(c) Joint Projects.--Not less than 5 percent and not more than 7 
percent of the funds appropriated under this section for a fiscal year 
may be made available for projects described in section 204(c)(2) for 
the fiscal year.
    ``(d) Sums Remaining Available.--Sums appropriated pursuant to 
subsection (a) for any fiscal year shall remain available for 
obligation until expended.''.

SEC. 302. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE.

    (a) Functions.--Section 5 of the National Commission on Libraries 
and Information Science Act (20 U.S.C. 1504) is amended--
            (1) by redesignating subsections (b) through (d) as 
        subsections (d) through (f), respectively; and
            (2) by inserting after subsection (a) the following:
    ``(b) The Commission shall have the responsibility to advise the 
Director of the Institute of Museum and Library Services on general 
policies with respect to the duties and powers vested in the Institute 
of Museum and Library Services relating to library services, 
including--
            ``(1) general policies with respect to--
                    ``(A) financial assistance awarded under the Museum 
                and Library Services Act for library services; and
                    ``(B) projects described in section 204(c)(2) of 
                such Act; and
            ``(2) measures to ensure that the policies and activities 
        of the Institute of Museum and Library Services are coordinated 
        with other activities of the Federal Government.
    ``(c)(1) The Commission shall meet not less than 1 time each year 
in a joint meeting with the National Museum Services Board, convened 
for purposes of providing advice on general policy with respect to 
financial assistance for projects described in section 204(c)(2) of 
such Act.
    ``(2) All decisions by the Commission and the National Museum 
Services Board with respect to the advice on general policy described 
in paragraph (1) shall be made by a \2/3\ majority vote of the total 
number of the members of the Commission and the National Museum 
Services Board who are present.
    ``(3) A majority of the members of the Commission and a majority of 
the members of the National Museum Services Board shall constitute a 
quorum for the conduct of business at official joint meetings of the 
Commission and the National Museum Services Board.''.
    (b) Membership.--Section 6 of the National Commission on Libraries 
and Information Science Act (20 U.S.C. 1505) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``Librarian 
                of Congress'' and inserting ``Librarian of Congress, 
                the Director of the Institute of Museum and Library 
                Services (who shall serve as an ex officio, nonvoting 
                member),'';
                    (B) in the second sentence--
                            (i) by striking ``special competence or 
                        interest in'' and inserting ``special 
                        competence in or knowledge of; and
                            (ii) by inserting before the period the 
                        following: ``and at least one other of whom 
                        shall be knowledgeable with respect to the 
                        library and information service and science 
                        needs of the elderly'';
                    (C) in the third sentence, by inserting 
                ``appointive'' before ``members''; and
                    (D) in the last sentence, by striking ``term and at 
                least'' and all that follows and inserting ``term.''; 
                and
            (2) in subsection (b), by striking ``the rate specified'' 
        and all that follows through ``and while'' and inserting ``the 
        daily equivalent of the maximum rate authorized for a position 
        above grade GS-15 of the General Schedule under section 5108 of 
        title 5, United States Code, for each day (including 
        traveltime) during which the members are engaged in the 
        business of the Commission. While''.

SEC. 303. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM SERVICES.

    (a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
            (1) the term ``Federal agency'' has the meaning given to 
        the term ``agency'' by section 551(1) of title 5, United States 
        Code;
            (2) the term ``function'' means any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational entity, 
        or component thereof.
    (b) Transfer of Functions.--There are transferred to the Institute 
of Museum and Library Services established under section 203 of the 
Museum and Library Services Act all functions that the Director of the 
Institute of Museum Services exercised before the date of enactment of 
this section (including all related functions of any officer or 
employee of the Institute of Museum Services).
    (c) Determinations of Certain Functions by the Office of Management 
and Budget.--If necessary, the Office of Management and Budget shall 
make any determination of the functions that are transferred under 
subsection (b).
    (d) Delegation and Assignment.--Except where otherwise expressly 
prohibited by law or otherwise provided by this section, the Director 
of the Institute of Museum and Library Services may delegate any of the 
functions transferred to the Director of the Institute of Museum and 
Library Services by this section and any function transferred or 
granted to such Director of the Institute of Museum and Library 
Services after the effective date of this section to such officers and 
employees of the Institute of Museum and Library Services as the 
Director of the Institute of Museum and Library Services may designate, 
and may authorize successive redelegations of such functions as may be 
necessary or appropriate. No delegation of functions by the Director of 
the Institute of Museum and Library Services under this section or 
under any other provision of this section shall relieve such Director 
of the Institute of Museum and Library Services of responsibility for 
the administration of such functions.
    (e) Reorganization.--The Director of the Institute of Museum and 
Library Services may allocate or reallocate any function transferred 
under subsection (b) among the officers of the Institute of Museum and 
Library Services, and may establish, consolidate, alter, or discontinue 
such organizational entities in the Institute of Museum and Library 
Services as may be necessary or appropriate.
    (f) Rules.--The Director of the Institute of Museum and Library 
Services may prescribe, in accordance with chapters 5 and 6 of title 5, 
United States Code, such rules and regulations as the Director of the 
Institute of Museum and Library Services determines to be necessary or 
appropriate to administer and manage the functions of the Institute of 
Museum and Library Services.
    (g) Transfer and Allocations of Appropriations and Personnel.--
Except as otherwise provided in this section, the personnel employed in 
connection with, and the assets, liabilities, contracts, property, 
records, and unexpended balances of appropriations, authorizations, 
allocations, and other funds employed, used, held, arising from, 
available to, or to be made available in connection with the functions 
transferred by this section, subject to section 1531 of title 31, 
United States Code, shall be transferred to the Institute of Museum and 
Library Services. Unexpended funds transferred pursuant to this 
subsection shall be used only for the purposes for which the funds were 
originally authorized and appropriated.
    (h) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this section, and make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out this section. The 
Director of the Office of Management and Budget shall provide for the 
termination of the affairs of all entities terminated by this section 
and for such further measures and dispositions as may be necessary to 
effectuate the purposes of this section.
    (i) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by this 
        section, the transfer pursuant to this section of full-time 
        personnel (except special Government employees) and part-time 
        personnel holding permanent positions shall not cause any such 
        employee to be separated or reduced in grade or compensation 
        for 1 year after the date of transfer of such employee under 
        this section.
            (2) Executive schedule positions.--Except as otherwise 
        provided in this section, any person who, on the day preceding 
        the effective date of this section, held a position compensated 
        in accordance with the Executive Schedule prescribed in chapter 
        53 of title 5, United States Code, and who, without a break in 
        service, is appointed in the Institute of Museum and Library 
        Services to a position having duties comparable to the duties 
        performed immediately preceding such appointment shall continue 
        to be compensated in such new position at not less than the 
        rate provided for such previous position, for the duration of 
        the service of such person in such new position.
    (j) Savings Provisions.--
            (1) Continuing effect of legal documents.--All orders, 
        determinations, rules, regulations, permits, agreements, 
        grants, contracts, certificates, licenses, registrations, 
        privileges, and other administrative actions--
                    (A) that have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal agency or official of a Federal agency, or by a 
                court of competent jurisdiction, in the performance of 
                functions that are transferred under this section; and
                    (B) that were in effect before the effective date 
                of this section, or were final before the effective 
                date of this section and are to become effective on or 
                after the effective date of this section;
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, the Director of the 
        Institute of Museum and Library Services or other authorized 
        official, a court of competent jurisdiction, or by operation of 
        law.
            (2) Proceedings not affected.--This section shall not 
        affect any proceedings, including notices of proposed 
        rulemaking, or any application for any license, permit, 
        certificate, or financial assistance pending before the 
        Institute of Museum Services on the effective date of this 
        section, with respect to functions transferred by this section. 
        Such proceedings and applications shall be continued. Orders 
        shall be issued in such proceedings, appeals shall be taken 
        from the orders, and payments shall be made pursuant to the 
        orders, as if this section had not been enacted, and orders 
        issued in any such proceedings shall continue in effect until 
        modified, terminated, superseded, or revoked by a duly 
        authorized official, by a court of competent jurisdiction, or 
        by operation of law. Nothing in this paragraph shall be 
        construed to prohibit the discontinuance or modification of any 
        such proceeding under the same terms and conditions and to the 
        same extent that such proceeding could have been discontinued 
        or modified if this section had not been enacted.
            (3) Suits not affected.--This section shall not affect 
        suits commenced before the effective date of this section, and 
        in all such suits, proceedings shall be had, appeals taken, and 
        judgments rendered in the same manner and with the same effect 
        as if this section had not been enacted.
            (4) Nonabatement of actions.--No suit, action, or other 
        proceeding commenced by or against the Institute of Museum 
        Services, or by or against any individual in the official 
        capacity of such individual as an officer of the Institute of 
        Museum Services, shall abate by reason of the enactment of this 
        section.
            (5) Administrative actions relating to promulgation of 
        regulations.--Any administrative action relating to the 
        preparation or promulgation of a regulation by the Institute of 
        Museum Services relating to a function transferred under this 
        section may be continued by the Institute of Museum and Library 
        Services with the same effect as if this section had not been 
        enacted.
    (k) Transition.--The Director of the Institute of Museum and 
Library Services may utilize--
            (1) the services of such officers, employees, and other 
        personnel of the Institute of Museum Services with respect to 
        functions transferred to the Institute of Museum and Library 
        Services by this section; and
            (2) funds appropriated to such functions for such period of 
        time as may reasonably be needed to facilitate the orderly 
        implementation of this section.
    (l) References.--A reference in any other Federal law, Executive 
order, rule, regulation, or delegation of authority, or any document of 
or relating to--
            (1) the Director of the Institute of Museum Services with 
        regard to functions transferred under subsection (b), shall be 
        deemed to refer to the Director of the Institute of Museum and 
        Library Services; and
            (2) the Institute of Museum Services with regard to 
        functions transferred under subsection (b), shall be deemed to 
        refer to the Institute of Museum and Library Services.
    (m) Additional Conforming Amendments.--
            (1) Recommended legislation.--After consultation with the 
        appropriate committees of Congress and the Director of the 
        Office of Management and Budget, the Director of the Institute 
        of Museum and Library Services shall prepare and submit to the 
        appropriate committees of Congress recommended legislation 
        containing technical and conforming amendments to reflect the 
        changes made by this section.
            (2) Submission to congress.--Not later than 6 months after 
        the effective date of this section, the Director of the 
        Institute of Museum and Library Services shall submit to the 
        appropriate committees of Congress the recommended legislation 
        referred to under paragraph (1).

SEC. 304. SERVICE OF INDIVIDUALS SERVING ON DATE OF ENACTMENT.

    Notwithstanding section 204 of the Museum and Library Services Act, 
the individual who was appointed to the position of Director of the 
Institute of Museum Services under section 205 of the Museum Services 
Act (as such section was in effect on the day before the date of 
enactment of this Act) and who is serving in such position on the day 
before the date of enactment of this Act shall serve as the first 
Director of the Institute of Museum and Library Services under section 
204 of the Museum and Library Services Act (as added by section 301 of 
this title), and shall serve at the pleasure of the President.

SEC. 305. CONSIDERATION.

    Consistent with title 5, United States Code, in appointing 
employees of the Office of Library Services, the Director of the 
Institute of Museum and Library Services shall give strong 
consideration to individuals with experience in administering State-
based and national library and information services programs.

SEC. 306. REPEALS AND TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Repeals.--
            (1) Library services and construction act.--The Library 
        Services and Construction Act (20 U.S.C. 351 et seq.) is 
        repealed.
            (2) Higher education act of 1965.--Title II of the Higher 
        Education Act of 1965 (20 U.S.C. 1021 et seq.) is repealed.
    (b) References to Library Services and Construction Act.--
            (1) Omnibus education reconciliation act of 1981.--Section 
        528 of the Omnibus Education Reconciliation Act of 1981 (20 
        U.S.C. 3489) is amended--
                    (A) by striking paragraph (12); and
                    (B) by redesignating paragraphs (13) through (15) 
                as paragraphs (12) through (14), respectively.
            (2) Elementary and secondary education act of 1965.--
        Section 3113(10) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 6813(10)) is amended by striking ``section 3 
        of the Library Services and Construction Act'' and inserting 
        ``section 213(7) of the Library Services and Technology Act''.
            (3) Community improvement volunteer act of 1994.--Section 
        7305 of the Community Improvement Volunteer Act of 1994 (40 
        U.S.C. 276d-3) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (6) as 
                paragraphs (1) through (5), respectively.
            (4) Appalachian regional development act of 1965.--Section 
        214(c) of the Appalachian Regional Development Act of 1965 (40 
        U.S.C. App. 214(c)) is amended by striking ``Library Services 
        and Construction Act;''.
            (5) Demonstration cities and metropolitan development act 
        of 1966.--Section 208(2) of the Demonstration Cities and 
        Metropolitan Development Act of 1966 (42 U.S.C. 3338(2)) is 
        amended by striking ``title II of the Library Services and 
        Construction Act;''.
            (6) Public law 87-688.--Subsection (c) of the first section 
        of the Act entitled ``An Act to extend the application of 
        certain laws to American Samoa'', approved September 25, 1962 
        (48 U.S.C. 1666(c)) is amended by striking ``the Library 
        Services Act (70 Stat. 293; 20 U.S.C. 351 et seq.),''.
    (c) References to Institute of Museum Services.--
            (1) Title 5, united states code.--Section 5315 of title 5, 
        United States Code, is amended by striking the following:
            ``Director of the Institute of Museum Services.'' and 
        inserting the following:
            ``Director of the Institute of Museum and Library 
        Services.''.
            (2) Department of education organization act.--Section 301 
        of the Department of Education Organization Act (20 U.S.C. 
        3441) is amended--
                    (A) in subsection (a)--
                            (i) by striking paragraph (5); and
                            (ii) by redesignating paragraphs (6) and 
                        (7) as paragraphs (5) and (6), respectively; 
                        and
                    (B) in subsection (b)--
                            (i) by striking paragraph (4); and
                            (ii) by redesignating paragraphs (5) 
                        through (7) as paragraphs (4) through (6), 
                        respectively.
            (3) Elementary and secondary education act of 1965.--
                    (A) Sections 2101(b), 2205(c)(1)(D), 
                2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and 
                subsections (d)(6) and (e)(2) of section 10401 of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6621(b), 6645(c)(1)(D), 6648(d)(1)(H)(v), 
                6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2)) are 
                amended by striking ``the Institute of Museum 
                Services'' and inserting ``the Institute of Museum and 
                Library Services''.
                    (B) Section 10412(b) of such Act (20 U.S.C. 
                8102(b)) is amended--
                            (i) in paragraph (2), by striking ``the 
                        Director of the Institute of Museum Services,'' 
                        and inserting ``the Director of the Institute 
                        of Museum and Library Services,''; and
                            (ii) in paragraph (7), by striking ``the 
                        Director of the Institute of Museum Services,'' 
                        and inserting ``the Director of the Institute 
                        of Museum and Library Services,''.
                    (C) Section 10414(a)(2)(B) of such Act (20 U.S.C. 
                8104(a)(2)(B)) is amended by striking clause (iii) and 
                inserting the following new clause:
                            ``(iii) the Institute of Museum and Library 
                        Services.''.
    (d) References to Higher Education Act of 1965.--
            (1) Higher education act of 1965.--Paragraph (2) of section 
        356(b) of the Higher Education Act of 1965 (20 U.S.C. 1069b(b)) 
        is amended by striking ``II,''.
            (2) Higher education amendments of 1986.--Part D of title 
        XIII of the Higher Education Amendments of 1986 (20 U.S.C. 1029 
        note) is repealed.
    (e) References to Office of Libraries and Learning Resources.--
            (1) Education amendments of 1974.--Section 519 of the 
        Education Amendments of 1974 (20 U.S.C. 1221i) is repealed.
            (2) Department of education organization act.--Section 
        413(b)(1) of the Department of Education Organization Act (20 
        U.S.C. 3473(b)(1)) is amended--
                    (A) by striking subparagraph (H); and
                    (B) by redesignating subparagraphs (I) through (M) 
                as subparagraphs (H) through (L), respectively.

SEC. 307. ARTS AND ARTIFACTS.

    The Arts and Artifacts Indemnity Act (20 U.S.C. 971 et seq.) is 
amended to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Arts and Artifacts Indemnity Act'.

``SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTIFACTS.

    ``The Director of the Institute of Museums and Library Services may 
enter into agreements to indemnify against loss or damage such items as 
may be eligible for such indemnity agreements under section 3--
            ``(1) in accordance with the provisions of this Act; and
            ``(2) on such terms and conditions as the Director shall 
        prescribe, by regulation, in order to achieve the objectives of 
        this Act and, consistent with such objectives, to protect the 
        financial interest of the United States.

``SEC. 3. ELIGIBLE ITEMS.

    ``(a) Types of Items.--The Director may enter into an indemnity 
agreement under section 2 with respect to items--
            ``(1) that are--
                    ``(A) works of art, including tapestries, 
                paintings, sculpture, folk art, and graphics and craft 
                arts;
                    ``(B) manuscripts, rare documents, books, or other 
                printed or published materials;
                    ``(C) other artifacts or objects; or
                    ``(D) photographs, motion pictures, or audio and 
                video tape;
            ``(2) that are of educational, cultural, historical, or 
        scientific value; and
            ``(3) the exhibition of which is certified (where 
        appropriate) by the Secretary of State or the designee of the 
        Secretary of State as being in the national interest.
    ``(b) Items on Exhibition.--
            ``(1) Scope.--An indemnity agreement made under this Act 
        shall cover eligible items while on exhibition, generally when 
        the items are part of an exchange of exhibitions. An item 
        described in subsection (a) that is part of an exhibition that 
        originates either in the United States or outside the United 
        States and that is touring the United States shall be 
        considered to be an eligible item.
            ``(2) Definition.--For purposes of this subsection, the 
        term `on exhibition' includes the period of time beginning on 
        the date the eligible items leave the premises of the lender or 
        place designated by the lender and ending on the date such 
        items are returned to the premises of the lender or place 
        designated by the lender.

``SEC. 4. APPLICATIONS.

    ``(a) In General.--Any person, nonprofit agency, institution, or 
government desiring to enter into an indemnity agreement for eligible 
items under this Act shall submit an application to the Director at 
such time, in such manner and in accordance with such procedures, as 
the Director shall, by regulation, prescribe.
    ``(b) Contents.--An application submitted under subsection (a) 
shall--
            ``(1) describe each item to be covered by the agreement 
        (including an estimated value of such item);
            ``(2) show evidence that the item is an item described in 
        section 3(a); and
            ``(3) set forth policies, procedures, techniques, and 
        methods with respect to preparation for, and conduct of, 
        exhibition of the item, and any transportation related to such 
        item.
    ``(c) Approval.--On receipt of an application under this section, 
the Director shall review the application as described in section 5 
and, if the Director agrees with the estimated value described in the 
application and if such application conforms with the requirements of 
this Act, approve the application and enter into an indemnity agreement 
with the applicant under section 2. On such approval, the agreement 
shall constitute a contract between the Director and the applicant 
pledging the full faith and credit of the United States to pay any 
amount for which the Director becomes liable under such agreement. The 
Director, for such purpose, is authorized to pledge the full faith and 
credit of the United States.

``SEC. 5. INDEMNITY AGREEMENT.

    ``(a) Review.--On receipt of an application meeting the 
requirements of subsections (a) and (b) of section 4, the Director 
shall review the estimated value of the items for which coverage by an 
indemnity agreement is sought.
    ``(b) Aggregate Amount of Loss or Damage.--The aggregate amount of 
loss or damage covered by indemnity agreements made under this Act 
shall not exceed $3,000,000,000, at any one time.
    ``(c) Individual Amount of Loss or Damage.--No indemnity agreement 
for a single exhibition shall cover loss or damage in excess of 
$300,000,000.
    ``(d) Extent of Coverage.--If the estimated value of the items 
covered by an indemnity agreement for a single exhibition is--
            ``(1) $2,000,000 or less, then coverage under this Act 
        shall extend only to loss or damage in excess of the first 
        $15,000 of loss or damage to the items covered;
            ``(2) more than $2,000,000 but less than $10,000,000, then 
        coverage under this Act shall extend only to loss or damage in 
        excess of the first $25,000 of loss or damage to the items 
        covered;
            ``(3) not less than $10,000,000 but less than $125,000,000, 
        then coverage under this Act shall extend only to loss or 
        damage in excess of the first $50,000 of loss or damage to the 
        items covered;
            ``(4) not less than $125,000,000 but less than 
        $200,000,000, then coverage under this Act shall extend only to 
        loss or damage in excess of the first $100,000 of loss or 
        damage to the items covered; or
            ``(5) $200,000,000 or more, then coverage under this Act 
        shall extend only to loss or damage in excess of the first 
        $200,000 of loss or damage to the items covered.

``SEC. 6. REGULATIONS AND CERTIFICATION.

    ``(a) Regulations.--The Director shall prescribe regulations 
providing for prompt adjustment of valid claims for loss or damage to 
items that are covered by an agreement entered into pursuant to section 
2, including provision for arbitration of issues relating to the dollar 
value of damages involving less than total loss or destruction of such 
covered items.
    ``(b) Certification.--In the case of a claim of loss or damage with 
respect to an item that is covered by an agreement entered into 
pursuant to section 2, the Director shall certify the validity of the 
claim and the amount of the loss to the Speaker of the House of 
Representatives and the President pro tempore of the Senate.

``SEC. 7. REPORT.

    ``The Director shall prepare, and submit at the end of each fiscal 
year to the appropriate committees of Congress, a report containing 
information on--
            ``(1) all claims paid pursuant to this Act during such 
        year;
            ``(2) pending claims against the Director under this Act as 
        of the end of such year; and
            ``(3) the aggregate face value of contracts entered into by 
        the Director that are outstanding at the end of such year.

``SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as may be 
necessary--
            ``(1) to enable the Director to carry out the functions of 
        the Director under this Act; and
            ``(2) to pay claims certified pursuant to section 6(b).''.

            Amend the title so as to read: ``An Act to consolidate 
        Federal employment training, vocational education, and adult 
        education programs and create integrated statewide workforce 
        development systems, and for other purposes.''.

            Attest:

                                                             Secretary.
104th CONGRESS

  1st Session

                               H. R. 1617

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