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:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Workforce Development Act of 1995’’.

4 (b) TABLE OF CONTENTS.—The table of contents is as

5 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.
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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.
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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.
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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.

1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—Congress finds that—

3 (1) increasing international competition, techno4 logical advances, and structural changes in the Unit5 ed States economy present new challenges to private

6 businesses and public policymakers in creating a

7 skilled workforce with the ability to adapt to change

8 and technological progress;

9 (2) despite more than 60 years of federally fund10 ed employment training programs, the Federal Gov11 ernment has no single, coherent policy guiding em12 ployment training efforts;

13 (3) according to the General Accounting Office,

14 there are over 100 federally funded employment train-
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1 ing programs, which are administered by 15 different

2 Federal agencies and cost more than $20,000,000,000

3 annually;

4 (4) many of the programs fail to collect enough

5 performance data to determine the relative effective6 ness of each of the programs or the effectiveness of the

7 programs as a whole;

8 (5) because of the fragmentation, duplication,

9 and lack of accountability that currently exist within

10 and among Federal employment training programs it

11 is often difficult for workers, jobseekers, and businesses

12 to easily access the services they need;

13 (6) high quality, innovative vocational education

14 programs provide youth with skills and knowledge on

15 which to build successful careers and, in providing

16 the skills and knowledge, vocational education serves

17 as the foundation of a successful workforce develop18 ment system;

19 (7) in recent years, several States and commu20 nities have begun to develop promising new initia21 tives such as—

22 (A) school-to-work programs to better inte23 grate youth employment and education pro24 grams; and
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1 (B) one-stop systems to make workforce de2 velopment activities more accessible to workers,

3 jobseekers, and businesses; and

4 (8) Federal, State, and local governments have

5 failed to adequately allow for private sector leadership

6 in designing workforce development activities that are

7 responsive to local labor market needs.

8 (b) PURPOSES.—The purposes of this Act are—

9 (1) to make the United States more competitive

10 in the world economy by eliminating the fragmenta11 tion in Federal employment training efforts and cre12 ating coherent, integrated statewide workforce devel13 opment systems designed to develop more fully the

14 academic, occupational, and literacy skills of all seg15 ments of the workforce;

16 (2) to ensure that all segments of the workforce

17 will obtain the skills necessary to earn wages suffi18 cient to maintain the highest quality of living in the

19 world; and

20 (3) to promote the economic development of each

21 State by developing a skilled workforce that is respon22 sive to the labor market needs of the businesses of each

23 State.

24 SEC. 3. DEFINITIONS.

25 As used in this Act:
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1 (1) ADULT EDUCATION.—

2 (A) IN GENERAL.—The term ‘‘adult edu3 cation’’ means services or instruction below the

4 college level for adults who—

5 (i) lack sufficient education or literacy

6 skills to enable the adults to function effec7 tively in society; or

8 (ii) do not have a certificate of gradua9 tion from a school providing secondary edu10 cation (as determined under State law) and

11 who have not achieved an equivalent level of

12 education.

13 (B) ADULT.—As used in subparagraph (A),

14 the term ‘‘adult’’ means an individual who is

15 age 16 or older, or beyond the age of compulsory

16 school attendance under State law, and who is

17 not enrolled in secondary school.

18 (2) APPROPRIATE SECRETARY.—The term ‘‘ap19 propriate Secretary’’ means, as determined under sec20 tion 187(c)—

21 (A) the Secretary of Labor;

22 (B) the Secretary of Education; or

23 (C) the Secretary of Labor and the Sec24 retary of Education, acting jointly.
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1 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

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

3 (A) a specialized secondary school used ex4 clusively or principally for the provision of voca5 tional education to individuals who are available

6 for study in preparation for entering the labor

7 market;

8 (B) the department of a secondary school

9 exclusively or principally used for providing vo10 cational education in not fewer than 5 different

11 occupational fields to individuals who are avail12 able for study in preparation for entering the

13 labor market;

14 (C) a technical institute or vocational school

15 used exclusively or principally for the provision

16 of vocational education to individuals who have

17 completed or left secondary school and who are

18 available for study in preparation for entering

19 the labor market, if the institute or school admits

20 as regular students both individuals who have

21 completed secondary school and individuals who

22 have left secondary school; or

23 (D) the department or division of a junior

24 college, community college, or university that

25 provides vocational education in not fewer than
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1 5 different occupational fields leading to imme2 diate employment but not necessarily leading to

3 a baccalaureate degree, if the department or divi4 sion admits as regular students both individuals

5 who have completed secondary school and indi6 viduals who have left secondary school.

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

8 means an individual who—

9 (A) is not less than age 15 and not more

10 than age 24; and

11 (B)(i) is determined under guidelines devel12 oped by the Federal Partnership to be low-in13 come, using the most recent available data pro14 vided by the Bureau of the Census, prior to the

15 determination; or

16 (ii) is a dependent of a family that is deter17 mined under guidelines developed by the Federal

18 Partnership to be low-income, using such data.

19 (5) CHIEF ELECTED OFFICIAL.—The term ‘‘chief

20 elected official’’ means the chief elected officer of a

21 unit of general local government in a substate area.

22 (6) COMMUNITY-BASED ORGANIZATION.—The

23 term ‘‘community-based organization’’ means a pri24 vate nonprofit organization of demonstrated effective25 ness that is representative of a community or a sig-
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1 nificant segment of a community and that provides

2 workforce development activities.

3 (7) COVERED ACTIVITY.—The term ‘‘covered ac4 tivity’’ means an activity authorized to be carried out

5 under a provision described in section 191(b) (as such

6 provision was in effect on the day before the date of

7 enactment of this Act).

8 (8) DISLOCATED WORKER.—The term ‘‘dislocated

9 worker’’ means an individual who—

10 (A) has been terminated from employment

11 and is eligible for unemployment compensation;

12 (B) has received a notice of termination of

13 employment as a result of any permanent clo14 sure, or any layoff of 50 or more people, at a

15 plant, facility, or enterprise, or as a result of a

16 closure or realignment of a military installation;

17 (C) is long-term unemployed;

18 (D) was self-employed (including a farmer

19 and a rancher) but is unemployed due to local

20 economic conditions;

21 (E) is a displaced homemaker; or

22 (F) has become unemployed as a result of a

23 Federal action that limits the use of, or restricts

24 access to, a marine natural resource.
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1 (9) DISPLACED HOMEMAKER.—The term ‘‘dis2 placed homemaker’’ means an individual who was a

3 full-time homemaker for a substantial number of

4 years, as determined under guidelines developed by

5 the Federal Partnership, and who no longer receives

6 financial support previously provided by a spouse or

7 by public assistance.

8 (10) ECONOMIC DEVELOPMENT ACTIVITIES.—The

9 term ‘‘economic development activities’’ means the ac10 tivities described in section 106(e).

11 (11) EDUCATIONAL SERVICE AGENCY.—The term

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

13 multiservice agency authorized by State statute to de14 velop and manage a service or program, and provide

15 the service or program to a local educational agency.

16 (12) ELEMENTARY SCHOOL; LOCAL EDUCATIONAL

17 AGENCY; SECONDARY SCHOOL.—The terms ‘‘elemen18 tary school’’, ‘‘local educational agency’’ and ‘‘second19 ary school’’ have the meanings given the terms in sec20 tion 14101 of the Elementary and Secondary Edu21 cation Act of 1965 (20 U.S.C. 8801).

22 (13) FEDERAL PARTNERSHIP.—The term ‘‘Fed23 eral Partnership’’ means the Workforce Development

24 Partnership established in section 181, acting under

25 the direction of the National Board.
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1 (14) FLEXIBLE WORKFORCE ACTIVITIES.—The

2 term ‘‘flexible workforce activities’’ means the activi3 ties described in section 106(d).

4 (15) INDIVIDUAL WITH A DISABILITY.—

5 (A) IN GENERAL.—The term ‘‘individual

6 with a disability’’ means an individual with

7 any disability (as defined in section 3 of the

8 Americans with Disabilities Act of 1990 (42

9 U.S.C. 12102)).

10 (B) INDIVIDUALS WITH DISABILITIES.—The

11 term ‘‘individuals with disabilities’’ means more

12 than 1 individual with a disability.

13 (16) LOCAL ENTITY.—The term ‘‘local entity’’

14 means a public or private entity responsible for local

15 workforce development activities or workforce prepa16 ration activities for at-risk youth.

17 (17) LOCAL PARTNERSHIP.—The term ‘‘local

18 partnership’’ means a partnership referred to in sec19 tion 118(a).

20 (18) NATIONAL BOARD.—The term ‘‘National

21 Board’’ means the National Board of the Federal

22 Partnership.

23 (19) OUTLYING AREA.—The term ‘‘outlying

24 area’’ means the United States Virgin Islands, Guam,

25 American Samoa, the Commonwealth of the Northern
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1 Mariana Islands, the Republic of the Marshall Is2 lands, the Federated States of Micronesia, and the Re3 public of Palau.

4 (20) PARTICIPANT.—The term ‘‘participant’’

5 means an individual participating in workforce de6 velopment activities or workforce preparation activi7 ties for at-risk youth, provided through a statewide

8 system.

9 (21) POSTSECONDARY EDUCATIONAL INSTITU10 TION.—The term ‘‘postsecondary educational institu11 tion’’ means an institution of higher education, as de12 fined in section 481(a) of the Higher Education Act

13 of 1965 (20 U.S.C. 1088(a)), that offers—

14 (A) a 2-year program of instruction leading

15 to an associate’s degree or a certificate of mas16 tery; or

17 (B) a 4-year program of instruction leading

18 to a bachelor’s degree.

19 (22) RAPID RESPONSE ASSISTANCE.—The term

20 ‘‘rapid response assistance’’ means workforce employ21 ment assistance provided in the case of a permanent

22 closure, or layoff of 50 or more people, at a plant, fa23 cility, or enterprise, including the establishment of

24 on-site contact with employers and employee rep25 resentatives immediately after the State is notified of
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1 a current or projected permanent closure, or layoff of

2 50 or more people.

3 (23) SCHOOL-TO-WORK ACTIVITIES.—The term

4 ‘‘school-to-work activities’’ means activities for youth

5 that—

6 (A) integrate school-based learning and

7 work-based learning;

8 (B) integrate academic and occupational

9 learning;

10 (C) establish effective linkages between sec11 ondary education and postsecondary education;

12 (D) provide each youth participant with the

13 opportunity to complete a career major;

14 (E) provide assistance in the form of con15 necting activities that link each youth partici16 pant with an employer in an industry or occu17 pation relating to the career major of the youth

18 participant; and

19 (F) are designed and carried out by local

20 partnerships that include representatives of busi21 ness and industry, education providers, and the

22 community in which the activities are carried

23 out.
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1 (24) STATE.—The term ‘‘State’’ means each of

2 the several States of the United States, the District of

3 Columbia, and the Commonwealth of Puerto Rico.

4 (25) STATE BENCHMARKS.—The term ‘‘State

5 benchmarks’’, used with respect to a State, means—

6 (A) the quantifiable indicators established

7 under section 121(c) and identified in the report

8 submitted under section 121(a); and

9 (B) such other quantifiable indicators of the

10 statewide progress of the State toward meeting

11 the State goals as the State may identify in the

12 report submitted under section 121(a).

13 (26) STATE EDUCATIONAL AGENCY.—The term

14 ‘‘State educational agency’’ means the State board of

15 education or other agency or officer primarily respon16 sible for the State supervision of public elementary or

17 secondary schools, or, if there is no such officer or

18 agency, an officer or agency designated by the Gov19 ernor or by State law.

20 (27) STATE GOALS.—The term ‘‘State goals’’,

21 used with respect to a State, means—

22 (A) the goals specified in section 121(b);

23 and
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1 (B) such other major goals of the statewide

2 system of the State as the State may identify in

3 the report submitted under section 121(a).

4 (28) STATEWIDE SYSTEM.—The term ‘‘statewide

5 system’’ means a statewide workforce development

6 system, referred to in section 101, that is designed to

7 integrate workforce employment activities, workforce

8 education activities, flexible workforce activities, eco9 nomic development activities (in a State that is eligi10 ble to carry out such activities), vocational rehabilita11 tion program activities, and workforce preparation

12 activities for at-risk youth in the State in order to en13 hance and develop more fully the academic, occupa14 tional, and literacy skills of all segments of the popu15 lation of the State and assist participants in obtain16 ing meaningful unsubsidized employment.

17 (29) SUBSTATE AREA.—The term ‘‘substate

18 area’’ means a geographic area designated by a Gov19 ernor that reflects, to the extent feasible, a local labor

20 market in a State.

21 (30) TECH-PREP PROGRAM.—The term ‘‘tech22 prep program’’ means a program of study that—

23 (A) combines at least 2 years of secondary

24 education (as determined under State law) and
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1 2 years of postsecondary education in a

2 nonduplicative sequence;

3 (B) integrates academic and vocational in4 struction and utilizes worksite learning where

5 appropriate;

6 (C) provides technical preparation in an

7 area such as engineering technology, applied

8 science, a mechanical, industrial, or practical

9 art or trade, agriculture, a health occupation,

10 business, or applied economics;

11 (D) builds student competence in mathe12 matics, science, communications, economics, and

13 workplace skills, through applied academics and

14 integrated instruction in a coherent sequence of

15 courses;

16 (E) leads to an associate degree or a certifi17 cate in a specific career field; and

18 (F) leads to placement in appropriate em19 ployment or further education.

20 (31) VETERAN.—The term ‘‘veteran’’ has the

21 meaning given the term in section 101(2) of title 38,

22 United States Code.

23 (32) VOCATIONAL EDUCATION.—The term ‘‘voca24 tional education’’ means organized educational pro25 grams that—
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1 (A) offer a sequence of courses that provide

2 individuals with the academic knowledge and

3 skills the individuals need to prepare for further

4 education and careers in current or emerging

5 employment sectors; and

6 (B) include competency-based applied learn7 ing that contributes to the academic knowledge,

8 higher-order reasoning and problem-solving

9 skills, work attitudes, general employability

10 skills, and occupation-specific skills, of an indi11 vidual.

12 (33) VOCATIONAL REHABILITATION PROGRAM.—

13 The term ‘‘vocational rehabilitation program’’ means

14 a program assisted under title I of the Rehabilitation

15 Act of 1973 (29 U.S.C. 720 et seq.).

16 (34) WELFARE ASSISTANCE.—The term ‘‘welfare

17 assistance’’ means—

18 (A) assistance provided under part A of

19 title IV of the Social Security Act; and

20 (B) assistance provided under the Food

21 Stamp Act of 1977 (7 U.S.C. 2011 et seq.).

22 (35) WELFARE RECIPIENT.—The term ‘‘welfare

23 recipient’’ means an individual who receives welfare

24 assistance.
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1 (36) WORKFORCE DEVELOPMENT ACTIVITIES.—

2 The term ‘‘workforce development activities’’ means

3 workforce education activities, workforce employment

4 activities, school-to-work activities, and economic de5 velopment activities (within a State that is eligible to

6 carry out such activities).

7 (37) WORKFORCE EDUCATION ACTIVITIES.—The

8 term ‘‘workforce education activities’’ means the ac9 tivities described in section 106(b).

10 (38) WORKFORCE EMPLOYMENT ACTIVITIES.—

11 The term ‘‘workforce employment activities’’ means

12 the activities described in paragraphs (2) through (8)

13 of section 106(a), including activities described in sec14 tion 106(a)(6) provided through a voucher described

15 in section 106(a)(9).

16 (39) WORKFORCE PREPARATION ACTIVITIES FOR

17 AT-RISK YOUTH.—The term ‘‘workforce preparation

18 activities for at-risk youth’’ means the activities de19 scribed in section 161(b), carried out for at-risk

20 youth.
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1 TITLE I—WORKFORCE DEVELOP2 MENT AND WORKFORCE

3 PREPARATION ACTIVITIES

4 Subtitle A—Statewide Workforce

5 Development Systems

6 CHAPTER 1—PROVISIONS FOR STATES

7 AND OTHER ENTITIES

8 SEC. 101. STATEWIDE WORKFORCE DEVELOPMENT SYS9 TEMS ESTABLISHED.

10 For program year 1998 and each subsequent program

11 year, the Secretary of Labor and the Secretary of Edu12 cation, acting jointly on the advice of the Federal Partner13 ship, shall make allotments under section 102 to States to

14 assist the States in paying for the cost of establishing and

15 carrying out activities through statewide workforce develop16 ment systems, in accordance with this subtitle.

17 SEC. 102. STATE ALLOTMENTS.

18 (a) IN GENERAL.—The Secretary of Labor and the

19 Secretary of Education, acting jointly on the advice of the

20 Federal Partnership, shall allot to each State with a State

21 plan approved under section 104 an amount equal to the

22 total of the amounts made available under subparagraphs

23 (A), (B), (C), and (D) of subsection (b)(2), adjusted in ac24 cordance with subsections (c) and (d).

25 (b) ALLOTMENTS BASED ON POPULATIONS.—
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1 (1) DEFINITIONS.—As used in this subsection:

2 (A) ADULT RECIPIENT OF ASSISTANCE.—

3 The term ‘‘adult recipient of assistance’’ means

4 a recipient of assistance under a State program

5 funded under part A of title IV of the Social Se6 curity Act who is not a minor child (as defined

7 in section 402(c)(1) of such Act).

8 (B) INDIVIDUAL IN POVERTY.—The term

9 ‘‘individual in poverty’’ means an individual

10 who—

11 (i) is not less than age 18;

12 (ii) is not more than age 64; and

13 (iii) is a member of a family (of 1 or

14 more members) with an income at or below

15 the poverty line.

16 (C) POVERTY LINE.—The term ‘‘poverty

17 line’’ means the poverty line (as defined by the

18 Office of Management and Budget, and revised

19 annually in accordance with section 673(2) of

20 the Community Services Block Grant Act (42

21 U.S.C. 9902(2)) applicable to a family of the size

22 involved, using the most recent available data

23 provided by the Bureau of the Census, prior to

24 the program year for which the allotment is

25 made, and applying the definition of poverty
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1 used by the Bureau of the Census in compiling

2 the 1990 decennial census.

3 (2) CALCULATION.—Except as provided in sub4 sections (c) and (d), from the amount reserved under

5 section 124(b)(1), the Secretary of Labor and the Sec6 retary of Education, acting jointly on the advice of

7 the Federal Partnership—

8 (A) using funds equal to 60 percent of such

9 reserved amount, shall make available to each

10 State an amount that bears the same relation11 ship to such funds as the total number of indi12 viduals who are not less than age 15 and not

13 more than age 65 (as determined by the Federal

14 Partnership using the most recent available data

15 provided by the Bureau of the Census, prior to

16 the program year for which the allotment is

17 made) in the State bears to the total number of

18 such individuals in all States;

19 (B) using funds equal to 20 percent of such

20 reserved amount, shall make available to each

21 State an amount that bears the same relation22 ship to such funds as the total number of indi23 viduals in poverty in the State bears to the total

24 number of individuals in poverty in all States;
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1 (C) using funds equal to 10 percent of such

2 reserved amount, shall make available to each

3 State an amount that bears the same relation4 ship to such funds as the average number of un5 employed individuals (as determined by the Sec6 retary of Labor for the most recent 24-month pe7 riod for which data are available, prior to the

8 program year for which the allotment is made)

9 in the State bears to the average number of un10 employed individuals (as so determined) in all

11 States; and

12 (D) using funds equal to 10 percent of such

13 reserved amount, shall make available to each

14 State an amount that bears the same relation15 ship to such funds as the average monthly num16 ber of adult recipients of assistance (as deter17 mined by the Secretary of Health and Human

18 Services for the most recent 12-month period for

19 which data are available, prior to the program

20 year for which the allotment is made) in the

21 State bears to the average monthly number of

22 adult recipients of assistance (as so determined)

23 in all States.

24 (c) MINIMUM STATE ALLOTMENT.—
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1 (1) DEFINITION.—As used in this subsection, the

2 term ‘‘national average per capita payment’’, used

3 with respect to a program year, means the amount

4 obtained by dividing—

5 (A) the amount reserved under section

6 124(b)(1) for the program year; by

7 (B) the total number of individuals who are

8 not less than age 15 and not more than age 65

9 (as determined by the Federal Partnership using

10 the most recent available data provided by the

11 Bureau of the Census, prior to the program year

12 for which the allotment is made) in all States.

13 (2) MINIMUM ALLOTMENT.—Except as provided

14 in paragraph (3) and subsection (d), no State shall

15 receive an allotment under this section for a program

16 year in an amount that is less than 0.5 percent of the

17 amount reserved under section 124(b)(1) for the pro18 gram year.

19 (3) LIMITATION.—No State that receives an in20 crease in an allotment under this section for a pro21 gram year as a result of the application of paragraph

22 (2) shall receive an allotment under this section for

23 the program year in an amount that is more than the

24 product obtained by multiplying—
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1 (A) the total number of individuals who are

2 not less than age 15 and not more than age 65

3 (as determined by the Federal Partnership using

4 the most recent available data provided by the

5 Bureau of the Census, prior to the program year

6 for which the allotment is made) in the State;

7 and

8 (B) the product obtained by multiplying—

9 (i) 1.5; and

10 (ii) the national average per capita

11 payment for the program year.

12 (4) ADJUSTMENTS.—In order to increase the al13 lotments of States as a result of the application of

14 paragraph (2), the Secretary of Labor and the Sec15 retary of Education, acting jointly, shall reduce, on

16 a pro rata basis, the allotments of the other States

17 (except as provided in subsection (d)).

18 (d) OVERALL LIMITATIONS.—

19 (1) DEFINITION.—As used in this subsection, the

20 term ‘‘State percentage’’ means—

21 (A) with respect to the program year pre22 ceding program year 1998, the percentage that a

23 State receives of the financial assistance made

24 available to States to carry out covered activities

25 for the year ending on June 30, 1998; and
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1 (B) with respect to program year 1998 and

2 each subsequent program year, the percentage

3 that a State receives of the amount reserved

4 under section 124(b)(1) for the program year.

5 (2) LIMITATIONS.—No State shall receive an al6 lotment under this section for a program year in an

7 amount that would make the State percentage for the

8 program year—

9 (A) less than the product obtained by mul10 tiplying—

11 (i) 0.95; and

12 (ii) the State percentage of the State

13 for the preceding program year; or

14 (B) greater than the product obtained by

15 multiplying—

16 (i) 1.05; and

17 (ii) the State percentage of the State

18 for the preceding program year.

19 SEC. 103. STATE APPORTIONMENT BY ACTIVITY.

20 (a) ACTIVITIES.—From the sum of the funds made

21 available to a State through an allotment received under

22 section 102 and through funds received under section 6 of

23 the Wagner-Peyser Act (29 U.S.C. 49e) to carry out this

24 subtitle for a program year—
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1 (1) a portion equal to 25 percent of such sum

2 (which portion shall include the funds received by the

3 State under section 6 of the Wagner-Peyser Act) shall

4 be made available for workforce employment activities

5 or activities carried out under the Wagner-Peyser Act

6 (29 U.S.C. 49 et seq.);

7 (2) a portion equal to 25 percent of such sum

8 shall be made available for workforce education ac9 tivities; and

10 (3) a portion (referred to in this title as the ‘‘flex

11 account’’) equal to 50 percent of such sum shall be

12 made available for flexible workforce activities.

13 (b) RECIPIENTS.—In making an allotment under sec14 tion 102 to a State, the Secretary of Labor and the Sec15 retary of Education, acting jointly, shall make a pay16 ment—

17 (1) to the Governor of the State for the portion

18 described in subsection (a)(1), and such part of the

19 flex account as the Governor may be eligible to re20 ceive, as determined under the State plan of the State

21 submitted under section 104; and

22 (2) to the State educational agency of the State

23 for the portion described in subsection (a)(2), and

24 such part of the flex account as the State educational

25 agency may be eligible to receive, as determined under
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1 the State plan of the State submitted under section

2 104.

3 SEC. 104. STATE PLANS.

4 (a) IN GENERAL.—For a State to be eligible to receive

5 an allotment under section 102, the Governor of the State

6 shall submit to the Federal Partnership, and obtain ap7 proval of, a single comprehensive State workforce develop8 ment plan (referred to in this section as a ‘‘State plan’’),

9 outlining a 3-year strategy for the statewide system of the

10 State.

11 (b) PARTS.—

12 (1) IN GENERAL.—The State plan shall contain

13 3 parts.

14 (2) STRATEGIC PLAN AND FLEXIBLE WORKFORCE

15 ACTIVITIES.—The first part of the State plan shall de16 scribe a strategic plan for the statewide system, in17 cluding the flexible workforce activities, and, if appro18 priate, economic development activities, that are de19 signed to meet the State goals and reach the State

20 benchmarks and are to be carried out with the allot21 ment. The Governor shall develop the first part of the

22 State plan, using procedures that are consistent with

23 the procedures described in subsection (d).

24 (3) WORKFORCE EMPLOYMENT ACTIVITIES.—The

25 second part of the State plan shall describe the
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1 workforce employment activities that are designed to

2 meet the State goals and reach the State benchmarks

3 and are to be carried out with the allotment. The

4 Governor shall develop the second part of the State

5 plan.

6 (4) WORKFORCE EDUCATION ACTIVITIES.—The

7 third part of the State plan shall describe the

8 workforce education activities that are designed to

9 meet the State goals and reach the State benchmarks

10 and are to be carried out with the allotment. The

11 State educational agency of the State shall develop the

12 third part of the State plan in collaboration with the

13 State postsecondary education agency and with rep14 resentatives of vocational education and community

15 colleges.

16 (5) STATE OPTION FOR INTEGRATED PLAN.—

17 Notwithstanding any other provision of this sub18 section, with the express written agreement of the

19 Governor, the State educational agency, the State

20 postsecondary education agency, and representatives

21 of vocational education and community colleges, of a

22 State, the Governor may develop all parts of the State

23 plan, using procedures that are consistent with the

24 procedures described in subsection (d). Nothing in this

25 section shall be construed to require a Governor who
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1 develops an integrated State plan under this para2 graph to duplicate any information contained in 1

3 part of the plan in another part of the plan.

4 (c) CONTENTS OF THE PLAN.—The State plan shall

5 include—

6 (1) with respect to the strategic plan for the

7 statewide system—

8 (A) information describing how the State

9 will identify the current and future workforce de10 velopment needs of the industry sectors most im11 portant to the economic competitiveness of the

12 State;

13 (B) information describing how the State

14 will identify the current and future workforce de15 velopment needs of all segments of the population

16 of the State;

17 (C) information identifying the State goals

18 and State benchmarks and how the goals and

19 benchmarks will make the statewide system rel20 evant and responsive to labor market and edu21 cation needs at the local level;

22 (D) information describing how the State

23 will coordinate workforce development activities

24 to meet the State goals and reach the State

25 benchmarks;
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1 (E) information describing the allocation

2 within the State of the funds made available

3 through the flex account for the State, and how

4 the flexible workforce activities, including school5 to-work activities, to be carried out with such

6 funds will be carried out to meet the State goals

7 and reach the State benchmarks;

8 (F) information identifying how the State

9 will obtain the active and continuous participa10 tion of business, industry, and labor in the devel11 opment and continuous improvement of the

12 statewide system;

13 (G) information identifying how the State

14 will obtain the active and continuous participa15 tion of local partnerships (or, where established,

16 local workforce development boards described in

17 section 118(b)) in the development and continu18 ous improvement of the statewide system;

19 (H) information identifying how any funds

20 that a State receives under this subtitle will be

21 leveraged with other public and private resources

22 to maximize the effectiveness of such resources for

23 all workforce development activities, and expand

24 the participation of business, industry, labor,

25 and individuals in the statewide system;
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1 (I) information identifying how the

2 workforce development activities to be carried out

3 with funds received through the allotment will be

4 coordinated with programs carried out by the

5 Veterans’ Employment and Training Service

6 with funds received under title 38, United States

7 Code, in order to meet the State goals and reach

8 the State benchmarks related to veterans;

9 (J) information describing how the State

10 will eliminate duplication in the administration

11 and delivery of services under this subtitle;

12 (K) information describing the process the

13 State will use to independently evaluate and

14 continuously improve the performance of the

15 statewide system, on a yearly basis, including

16 the development of specific performance indica17 tors to measure progress toward meeting the

18 State goals;

19 (L) an assurance that the funds made avail20 able under this subtitle will supplement and not

21 supplant other public funds expended to provide

22 workforce development activities;

23 (M) information identifying the steps that

24 the State will take over the 3 years covered by

25 the plan to establish common data collection and
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1 reporting requirements for workforce development

2 activities and vocational rehabilitation program

3 activities;

4 (N) with respect to economic development

5 activities, information—

6 (i) describing the activities to be car7 ried out with the funds made available

8 under this subtitle;

9 (ii) describing how the activities will

10 lead directly to increased earnings of

11 nonmanagerial employees in the State; and

12 (iii) describing whether the labor orga13 nization, if any, representing the

14 nonmanagerial employees supports the ac15 tivities;

16 (O) the description referred to in subsection

17 (d)(1); and

18 (P)(i) information demonstrating the sup19 port of individuals and entities described in sub20 section (d)(1) for the plan; or

21 (ii) in a case in which the Governor is un22 able to obtain the support of such individuals

23 and entities as provided in subsection (d)(2), the

24 comments referred to in subsection (d)(2)(B);
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1 (2) with respect to workforce employment activi2 ties, information—

3 (A)(i) identifying and designating substate

4 areas, including urban and rural areas, to which

5 funds received through the allotment will be dis6 tributed, which areas shall, to the extent feasible,

7 reflect local labor market areas; or

8 (ii) stating that the State will be treated as

9 a substate area for purposes of the application of

10 this subtitle, if the State receives an increase in

11 an allotment under section 102 for a program

12 year as a result of the application of section

13 102(c)(2);

14 (B) describing the basic features of one-stop

15 delivery of core services described in section

16 106(a)(2) in the State, including information re17 garding—

18 (i) the strategy of the State for develop19 ing fully operational one-stop delivery of

20 core services described in section 106(a)(2);

21 (ii) the time frame for achieving the

22 strategy;

23 (iii) the estimated cost of achieving the

24 strategy;
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1 (iv) the steps that the State will take

2 over the 3 years covered by the plan to pro3 vide individuals with access to one-stop de4 livery of core services described in section

5 106(a)(2);

6 (v) the steps that the State will take

7 over the 3 years covered by the plan to en8 sure that all publicly funded labor exchange

9 services described in section 106(a)(2)(B),

10 and all such services described in the Wag11 ner-Peyser Act (29 U.S.C. 49 et seq.), are

12 provided through the one-stop career center

13 system of the State;

14 (vi) the steps that the State will take

15 over the 3 years covered by the plan to pro16 vide information through the one-stop deliv17 ery to individuals on the quality of

18 workforce employment activities, workforce

19 education activities, and vocational reha20 bilitation program activities, provided

21 through the statewide system;

22 (vii) the steps that the State will take

23 over the 3 years covered by the plan to link

24 services provided through the one-stop deliv-
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1 ery with services provided through State

2 welfare agencies; and

3 (viii) in a case in which the State

4 chooses to use vouchers to deliver workforce

5 employment activities, the steps that the

6 State will take over the 3 years covered by

7 the plan to comply with the requirements in

8 section 106(a)(9) and the information re9 quired in such section;

10 (C) identifying performance indicators that

11 relate to the State goals, and to the State bench12 marks, concerning workforce employment activi13 ties;

14 (D) describing the workforce employment

15 activities to be carried out with funds received

16 through the allotment;

17 (E) describing the steps that the State will

18 take over the 3 years covered by the plan to es19 tablish a statewide comprehensive labor market

20 and occupational information system described

21 in section 183(c) that will be utilized by all the

22 providers of one-stop delivery of core services de23 scribed in section 106(a)(2), providers of other

24 workforce employment activities, and providers

25 of workforce education activities, in the State;
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1 (F) describing the steps that the State will

2 take over the 3 years covered by the plan to es3 tablish a job placement accountability system de4 scribed in section 121(d); and

5 (G) describing the process the State will use

6 to approve all providers of workforce employment

7 activities through the statewide system; and

8 (3) with respect to workforce education activities,

9 information—

10 (A) describing how funds received through

11 the allotment will be allocated among—

12 (i) secondary school vocational edu13 cation, or postsecondary and adult voca14 tional education, or both; and

15 (ii) adult education;

16 (B) identifying performance indicators that

17 relate to the State goals, and to the State bench18 marks, concerning workforce education activities;

19 (C) describing the workforce education ac20 tivities that will be carried out with funds re21 ceived through the allotment;

22 (D) describing how the State will address

23 the adult education needs of the State;

24 (E) describing how the State will

25 disaggregate data relating to at-risk youth in
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1 order to adequately measure the progress of at2 risk youth toward accomplishing the results

3 measured by the State goals and the State bench4 marks;

5 (F) describing how the State will adequately

6 address the needs of both at-risk youth who are

7 in school, and out-of-school youth, in alternative

8 education programs that teach to the same chal9 lenging academic, occupational, and skill pro10 ficiencies as are provided for in-school youth;

11 (G) describing how the workforce education

12 activities described in the State plan and the

13 State allocation of funds received through the al14 lotment for such activities are an integral part

15 of comprehensive efforts of the State to improve

16 education for all students and adults;

17 (H) describing how the State will annually

18 evaluate the effectiveness of the State plan with

19 respect to workforce education activities;

20 (I) describing how the State will address the

21 professional development needs of the State with

22 respect to workforce education activities;

23 (J) describing how the State will provide

24 local educational agencies in the State with tech25 nical assistance;
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1 (K) describing how the State will assess the

2 progress of the State in implementing student

3 performance measures; and

4 (L) describing how the State will encourage

5 the participation of parents of secondary school

6 students involved in workforce education activi7 ties carried out under this subtitle in State and

8 local decisions regarding workforce education ac9 tivities carried out under this subtitle.

10 (d) PROCEDURE FOR DEVELOPMENT OF PART OF

11 PLAN RELATING TO STRATEGIC PLAN.—

12 (1) DESCRIPTION OF DEVELOPMENT.—The part

13 of the State plan relating to the strategic plan shall

14 include a description of the manner in which—

15 (A) the Governor;

16 (B) the State educational agency;

17 (C) representatives of business and indus18 try, including representatives of key industry

19 sectors, and of small, medium-size, and large em20 ployers, in the State;

21 (D) representatives of labor and workers;

22 (E) local elected officials from throughout

23 the State;

24 (F) the State agency officials responsible for

25 vocational education;
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1 (G) the State agency officials responsible for

2 postsecondary education and community colleges;

3 (H) the State agency officials responsible

4 for adult education;

5 (I) the State agency officials responsible for

6 vocational rehabilitation;

7 (J) such other State agency officials, includ8 ing officials responsible for economic develop9 ment and employment, as the Governor may des10 ignate;

11 (K) the representative of the Veterans’ Em12 ployment and Training Service assigned to the

13 State under section 4103 of title 38, United

14 States Code; and

15 (L) other appropriate officials, including

16 members of the State workforce development

17 board described in section 105, if the State has

18 established such a board;

19 collaborated in the development of such part of the

20 plan.

21 (2) FAILURE TO OBTAIN SUPPORT.—If, after a

22 reasonable effort, the Governor is unable to obtain the

23 support of the individuals and entities described in

24 paragraph (1) for the strategic plan the Governor

25 shall—
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1 (A) provide such individuals and entities

2 with copies of the strategic plan;

3 (B) allow such individuals and entities to

4 submit to the Governor, not later than the end

5 of the 30-day period beginning on the date on

6 which the Governor provides such individuals

7 and entities with copies of such plan under sub8 paragraph (A), comments on such plan; and

9 (C) include any such comments in such

10 plan.

11 (e) APPROVAL.—The Secretary of Labor and the Sec12 retary of Education, acting jointly on the advice of the Fed13 eral Partnership, shall approve a State plan if—

14 (1) the Federal Partnership determines that the

15 plan contains the information described in subsection

16 (c);

17 (2) the Federal Partnership determines that the

18 State has prepared the plan in accordance with the

19 requirements of this section, including the require20 ments relating to development of any part of the plan;

21 and

22 (3) the State benchmarks for the State have been

23 negotiated and approved in accordance with section

24 121(c).
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1 (f) NO ENTITLEMENT TO A SERVICE.—Nothing in this

2 Act shall be construed to provide any individual with an

3 entitlement to a service provided under this Act.

4 SEC. 105. STATE WORKFORCE DEVELOPMENT BOARDS.

5 (a) ESTABLISHMENT.—A Governor of a State that re6 ceives an allotment under section 102 may establish a State

7 workforce development board—

8 (1) on which a majority of the members are rep9 resentatives of business and industry;

10 (2) on which not less than 25 percent of the

11 members shall be representatives of labor, workers,

12 and community-based organizations;

13 (3) that shall include representatives of veterans;

14 (4) that shall include a representative of the

15 State educational agency and a representative from

16 the State agency responsible for vocational rehabilita17 tion;

18 (5) that may include any other individual or en19 tity that participates in the collaboration described in

20 section 104(d)(1); and

21 (6) that may include any other individual or en22 tity the Governor may designate.

23 (b) CHAIRPERSON.—The State workforce development

24 board shall select a chairperson from among the members
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1 of the board who are representatives of business and indus2 try.

3 (c) FUNCTIONS.—The functions of the State workforce

4 development board shall include—

5 (1) advising the Governor on the development of

6 the statewide system, the State plan described in sec7 tion 104, and the State goals and State benchmarks;

8 (2) assisting in the development of specific per9 formance indicators to measure progress toward meet10 ing the State goals and reaching the State bench11 marks and providing guidance on how such progress

12 may be improved;

13 (3) serving as a link between business, industry,

14 labor, and the statewide system;

15 (4) assisting the Governor in preparing the an16 nual report to the Federal Partnership regarding

17 progress in reaching the State benchmarks, as de18 scribed in section 121(a);

19 (5) receiving and commenting on the State plan

20 developed under section 101 of the Rehabilitation Act

21 of 1973 (29 U.S.C. 721);

22 (6) assisting the Governor in developing the

23 statewide comprehensive labor market and occupa24 tional information system described in section 183(c)

25 to provide information that will be utilized by job-
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1 seekers, employers, providers of one-stop delivery of

2 core services described in section 106(a)(2), providers

3 of other workforce employment activities, and provid4 ers of workforce education activities, in the State; and

5 (7) assisting in the monitoring and continuous

6 improvement of the performance of the statewide sys7 tem, including evaluation of the effectiveness of

8 workforce development activities funded under this

9 subtitle.

10 SEC. 106. USE OF FUNDS.

11 (a) WORKFORCE EMPLOYMENT ACTIVITIES.—

12 (1) IN GENERAL.—Funds made available to a

13 State under this subtitle to carry out workforce em14 ployment activities through a statewide system—

15 (A) shall be used to carry out the activities

16 described in paragraphs (2), (3), and (4); and

17 (B) may be used to carry out the activities

18 described in paragraphs (5), (6), (7), and (8),

19 including providing activities described in para20 graph (6) through vouchers described in para21 graph (9).

22 (2) ONE-STOP DELIVERY OF CORE SERVICES.—

23 (A) ACCESS.—The State shall use a portion

24 of the funds described in paragraph (1) to estab25 lish a means of providing access to the statewide
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1 system through core services described in sub2 paragraph (B) available—

3 (i) through multiple, connected access

4 points, linked electronically or otherwise;

5 (ii) through a network that assures

6 participants that such core services will be

7 available regardless of where the partici8 pants initially enter the statewide system;

9 (iii) at not less than 1 physical loca10 tion in each substate area of the State; or

11 (iv) through some combination of the

12 options described in clauses (i), (ii), and

13 (iii).

14 (B) CORE SERVICES.—The core services re15 ferred to in subparagraph (A) shall, at a mini16 mum, include—

17 (i) outreach, intake, and orientation to

18 the information and other services available

19 through one-stop delivery of core services de20 scribed in this subparagraph;

21 (ii) initial assessment of skill levels,

22 aptitudes, abilities, and supportive service

23 needs;
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1 (iii) job search and placement assist2 ance and, where appropriate, career coun3 seling;

4 (iv) customized screening and referral

5 of qualified applicants to employment;

6 (v) provision of accurate information

7 relating to local labor market conditions,

8 including employment profiles of growth in9 dustries and occupations within a substate

10 area, the educational and skills require11 ments of jobs in the industries and occupa12 tions, and the earnings potential of the jobs;

13 (vi) provision of accurate information

14 relating to the quality and availability of

15 other workforce employment activities,

16 workforce education activities, and voca17 tional rehabilitation program activities;

18 (vii) provision of information regard19 ing how the substate area is performing on

20 the State benchmarks;

21 (viii) provision of initial eligibility in22 formation on forms of public financial as23 sistance that may be available in order to

24 enable persons to participate in workforce

25 employment activities, workforce education
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1 activities, or vocational rehabilitation pro2 gram activities; and

3 (ix) referral to other appropriate

4 workforce employment activities, workforce

5 education activities, and vocational reha6 bilitation employment activities.

7 (3) LABOR MARKET AND OCCUPATIONAL INFOR8 MATION SYSTEM.—The State shall use a portion of the

9 funds described in paragraph (1) to establish a state10 wide comprehensive labor market and occupational

11 information system described in section 183(c).

12 (4) JOB PLACEMENT ACCOUNTABILITY SYSTEM.—

13 The State shall use a portion of the funds described

14 in paragraph (1) to establish a job placement ac15 countability system described in section 121(d).

16 (5) PERMISSIBLE ONE-STOP DELIVERY ACTIVI17 TIES.—The State may provide, through one-stop de18 livery—

19 (A) co-location of services related to

20 workforce development activities, such as unem21 ployment insurance, vocational rehabilitation

22 program activities, welfare assistance, veterans’

23 employment services, or other public assistance;

24 (B) intensive services for participants who

25 are unable to obtain employment through the
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1 core services described in paragraph (2)(B), as

2 determined by the State; and

3 (C) dissemination to employers of informa4 tion on activities carried out through the state5 wide system.

6 (6) OTHER PERMISSIBLE ACTIVITIES.—The State

7 may use a portion of the funds described in para8 graph (1) to provide services through the statewide

9 system that may include—

10 (A) on-the-job training;

11 (B) occupational skills training;

12 (C) entrepreneurial training;

13 (D) training to develop work habits to help

14 individuals obtain and retain employment;

15 (E) customized training conducted with a

16 commitment by an employer or group of employ17 ers to employ an individual after successful com18 pletion of the training;

19 (F) rapid response assistance for dislocated

20 workers;

21 (G) skill upgrading and retraining for per22 sons not in the workforce;

23 (H) preemployment and work maturity

24 skills training for youth;
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1 (I) connecting activities that organize con2 sortia of small- and medium-size businesses to

3 provide work-based learning opportunities for

4 youth participants in school-to-work programs;

5 (J) programs for adults that combine work6 place training with related instruction;

7 (K) services to assist individuals in attain8 ing certificates of mastery with respect to indus9 try-based skill standards;

10 (L) case management services;

11 (M) supportive services, such as transpor12 tation and financial assistance, that enable indi13 viduals to participate in the statewide system;

14 and

15 (N) followup services for participants who

16 are placed in unsubsidized employment.

17 (7) STAFF DEVELOPMENT AND TRAINING.—The

18 State may use a portion of the funds described in

19 paragraph (1) for the development and training of

20 staff of providers of one-stop delivery of core services

21 described in paragraph (2), including development

22 and training relating to principles of quality man23 agement.

24 (8) INCENTIVE GRANT AWARDS.—The State may

25 use a portion of the funds described in paragraph (1)
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1 to award incentive grants to substate areas that reach

2 or exceed the State benchmarks established under sec3 tion 121(c), with an emphasis on benchmarks estab4 lished under section 121(c)(3). A substate area that

5 receives such a grant may use the funds made avail6 able through the grant to carry out any workforce de7 velopment activities authorized under this subtitle.

8 (9) VOUCHERS.—

9 (A) IN GENERAL.—A State may deliver, to

10 persons age 18 or older who are unable to obtain

11 Pell Grants under title IV of the Higher Edu12 cation Act of 1965 (20 U.S.C. 1070 et seq.), some

13 or all of the workforce employment activities de14 scribed in paragraph (6) that are provided

15 under this subtitle through a system of vouchers

16 administered through the one-stop delivery of

17 core services described in paragraph (2) in the

18 State.

19 (B) ELIGIBILITY REQUIREMENTS.—

20 (i) IN GENERAL.—A State that chooses

21 to deliver the activities described in sub22 paragraph (A) through vouchers shall indi23 cate in the State plan described in section

24 104 the criteria that will be used to deter25 mine—
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1 (I) which workforce employment

2 activities described in paragraph (6)

3 will be delivered through the voucher

4 system;

5 (II) eligibility requirements for

6 participants to receive the vouchers

7 and the amount of funds that partici8 pants will be able to access through the

9 voucher system; and

10 (III) which employment, training,

11 and education providers are eligible to

12 receive payment through the vouchers.

13 (ii) CONSIDERATIONS.—In establishing

14 State criteria for service providers eligible

15 to receive payment through the vouchers

16 under clause (i)(III), the State shall take

17 into account industry-recognized skills

18 standards promoted by the National Skills

19 Standards Board.

20 (C) ACCOUNTABILITY REQUIREMENTS.—A

21 State that chooses to deliver the activities de22 scribed in paragraph (6) through vouchers shall

23 indicate in the State plan—

24 (i) information concerning how the

25 State will utilize the statewide comprehen-
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1 sive labor market and occupational infor2 mation system described in section 183(c)

3 and the job placement accountability system

4 established under section 121(d) to provide

5 timely and accurate information to partici6 pants about the performance of eligible em7 ployment, training, and education provid8 ers;

9 (ii) other information about the per10 formance of eligible providers of services

11 that the State believes is necessary for par12 ticipants receiving the vouchers to make in13 formed career choices; and

14 (iii) the timeframe in which the infor15 mation developed under clauses (i) and (ii)

16 will be widely available through the one17 stop delivery of core services described in

18 paragraph (2) in the State.

19 (D) INFORMATION.—A State that deter20 mines that a need exists to train persons age 18

21 or older through activities authorized under

22 paragraph (6) shall indicate in the State plan

23 described in section 104 for the State, or the an24 nual report described in section 121(a) for the

25 State, the extent, if any, to which the State will
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1 use the authority of this paragraph to deliver

2 some or all of such activities through a system

3 of vouchers, including indicating the information

4 and timeframes required under subparagraph

5 (C).

6 (b) WORKFORCE EDUCATION ACTIVITIES.—The State

7 educational agency shall use the funds made available to

8 the State educational agency under this subtitle for

9 workforce education activities to carry out, through the

10 statewide system, activities that include—

11 (1) integrating academic and vocational edu12 cation;

13 (2) linking secondary education (as determined

14 under State law) and postsecondary education, in15 cluding implementing tech-prep programs;

16 (3) providing career guidance and counseling for

17 students at the earliest possible age, including the

18 provision of career awareness, exploration, planning,

19 and guidance information to students and their par20 ents that is, to the extent possible, in a language and

21 form that the students and their parents understand;

22 (4) providing literacy and basic education serv23 ices for adults and out-of-school youth, including

24 adults and out-of-school youth in correctional institu25 tions;
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1 (5) providing programs for adults and out-of2 school youth to complete their secondary education;

3 (6) expanding, improving, and modernizing

4 quality vocational education programs; and

5 (7) improving access to quality vocational edu6 cation programs for at-risk youth.

7 (c) FISCAL REQUIREMENTS FOR WORKFORCE EDU8 CATION ACTIVITIES.—

9 (1) SUPPLEMENT NOT SUPPLANT.—Funds made

10 available under this subtitle for workforce education

11 activities shall supplement, and may not supplant,

12 other public funds expended to carry out workforce

13 education activities.

14 (2) MAINTENANCE OF EFFORT.—

15 (A) DETERMINATION.—No payments shall

16 be made under this subtitle for any program

17 year to a State for workforce education activities

18 unless the Federal Partnership determines that

19 the fiscal effort per student or the aggregate ex20 penditures of such State for workforce education

21 for the program year preceding the program year

22 for which the determination is made, equaled or

23 exceeded such effort or expenditures for workforce

24 education for the second program year preceding
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1 the fiscal year for which the determination is

2 made.

3 (B) WAIVER.—The Federal Partnership

4 may waive the requirements of this section (with

5 respect to not more than 5 percent of expendi6 tures by any State educational agency) for 1

7 program year only, on making a determination

8 that such waiver would be equitable due to excep9 tional or uncontrollable circumstances affecting

10 the ability of the applicant to meet such require11 ments, such as a natural disaster or an unfore12 seen and precipitous decline in financial re13 sources. No level of funding permitted under such

14 a waiver may be used as the basis for computing

15 the fiscal effort or aggregate expenditures re16 quired under this section for years subsequent to

17 the year covered by such waiver. The fiscal effort

18 or aggregate expenditures for the subsequent

19 years shall be computed on the basis of the level

20 of funding that would, but for such waiver, have

21 been required.

22 (d) FLEXIBLE WORKFORCE ACTIVITIES.—

23 (1) CORE FLEXIBLE WORKFORCE ACTIVITIES.—

24 The State shall use a portion of the funds made avail25 able to the State under this subtitle through the flex
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1 account to carry out school-to-work activities through

2 the statewide system, except that any State that re3 ceived a grant under subtitle B of title II of the

4 School-to-Work Opportunities Act of 1994 (20 U.S.C.

5 6141 et seq.) shall use such portion to support the

6 continued development of the statewide School-to7 Work Opportunities system of the State through the

8 continuation of activities that are carried out in ac9 cordance with the terms of such grant.

10 (2) PERMISSIBLE FLEXIBLE WORKFORCE ACTIVI11 TIES.—The State may use a portion of the funds

12 made available to the State under this subtitle

13 through the flex account—

14 (A) to carry out workforce employment ac15 tivities through the statewide system; and

16 (B) to carry out workforce education activi17 ties through the statewide system.

18 (e) ECONOMIC DEVELOPMENT ACTIVITIES.—In the

19 case of a State that meets the requirements of section 118(c),

20 the State may use not more than 50 percent of the funds

21 made available to the State under this subtitle through the

22 flex account to supplement other funds provided by the

23 State or private sector—
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1 (1) to provide services to upgrade the skills of

2 employed workers who are at risk of being perma3 nently laid off;

4 (2) to retrain employed workers in new tech5 nologies and work processes that will facilitate the

6 conversion and restructuring of businesses to assist in

7 the avoidance of closures, or layoffs of 50 or more peo8 ple, at a plant, facility, or enterprise;

9 (3) to provide customized assessments of the

10 skills of workers and an analysis of the skill needs of

11 employers;

12 (4) to assist consortia of small- and medium-size

13 employers in upgrading the skills of their workforces;

14 (5) to provide productivity and quality improve15 ment training programs for the workforces of small16 and medium-size employers;

17 (6) to provide recognition and use of voluntary

18 industry-developed skills standards by employers,

19 schools, and training institutions;

20 (7) to carry out training activities in companies

21 that are developing modernization plans in conjunc22 tion with State industrial extension service offices;

23 and
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1 (8) to provide on-site, industry-specific training

2 programs supportive of industrial and economic de3 velopment;

4 through the statewide system.

5 (f) LIMITATIONS.—

6 (1) WAGES.—No funds provided under this sub7 title shall be used to pay the wages of incumbent

8 workers during their participation in economic devel9 opment activities provided through the statewide sys10 tem.

11 (2) RELOCATION.—No funds provided under this

12 subtitle shall be used or proposed for use to encourage

13 or induce the relocation, of a business or part of a

14 business, that results in a loss of employment for any

15 employee of such business at the original location.

16 (3) TRAINING AND ASSESSMENTS FOLLOWING RE17 LOCATION.—No funds provided under this subtitle

18 shall be used for customized or skill training, on-the19 job training, or company-specific assessments of job

20 applicants or workers, for any business or part of a

21 business, that has relocated, until 120 days after the

22 date on which such business commences operations at

23 the new location, if the relocation of such business or

24 part of a business, results in a loss of employment for

25 any worker of such business at the original location.
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1 (4) DISPLACEMENT.—

2 (A) IN GENERAL.—No currently employed

3 worker shall be displaced (including partial dis4 placement such as a reduction in hours of non5 overtime work, wages, or employment benefits)

6 by any participant in an activity carried out

7 under this subtitle.

8 (B) EXISTING CONTRACT FOR SERVICES OR

9 COLLECTIVE BARGAINING AGREEMENT.—No ac10 tivity carried out under this subtitle shall im11 pair an existing contract for services or a collec12 tive bargaining agreement.

13 (C) LAYOFF OR TERMINATION.—No partici14 pant shall be employed or job opening filled for

15 an activity carried out under this subtitle—

16 (i) when any other individual is on

17 layoff from the same or a substantially

18 equivalent job; or

19 (ii) when the employer has terminated

20 the employment of any regular employee or

21 otherwise reduced the workforce of the em22 ployer with the intention of filling the va23 cancy so created by hiring a participant

24 whose wages are subsidized under this sub25 title.
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1 (5) HEALTH AND SAFETY.—Health and safety

2 standards established under Federal and State law

3 otherwise applicable to working conditions of employ4 ees shall be equally applicable to working conditions

5 of participants engaged in work-related activities

6 pursuant to this subtitle. Appropriate workers’ com7 pensation shall be provided to the participants on the

8 same basis as the compensation is provided to other

9 individuals in the State in similar employment (as

10 determined under regulations issued by the Secretary

11 of Labor).

12 (6) EMPLOYMENT CONDITIONS.—Participants

13 employed or assigned to work in positions subsidized

14 under this subtitle shall be provided benefits and

15 working conditions at the same level and to the same

16 extent as other employees working a similar length of

17 time and doing the same type of work.

18 (7) NONDISCRIMINATION.—Except as otherwise

19 permitted in law, no individual may be excluded

20 from participation in workforce development activi21 ties carried out under this subtitle because of race,

22 color, religion, sex, national origin, disability, or age.

23 (8) GRIEVANCE PROCEDURE.—The State shall es24 tablish and maintain (pursuant to regulations issued

25 by the Secretary of Labor) a grievance procedure for
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1 resolving complaints alleging violations of any of the

2 prohibitions or requirements described in this sub3 section. Such procedure shall include an opportunity

4 for a hearing and shall be completed not later than

5 the 90th day after the date of the submission of a

6 complaint, by which day the complainant shall be

7 provided a written decision by the State. A decision

8 of the State under such procedure, or a failure of the

9 State to issue a decision within the 90-day period,

10 may be appealed to the Secretary of Labor, who shall

11 investigate the allegations contained in the complaint

12 and make a determination not later than 60 days

13 after the date of the appeal as to whether a violation

14 of a prohibition or requirement of this subsection has

15 occurred.

16 (9) REMEDIES.—

17 (A) IN GENERAL.—Except as provided in

18 subparagraphs (B) and (C), remedies that may

19 be imposed under this paragraph for violations

20 of the prohibitions and requirements described in

21 this subsection shall be limited to—

22 (i) suspension or termination of pay23 ments under this subtitle;

24 (ii) prohibition of placement of any

25 participant, for an appropriate period of
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1 time, with an employer that has violated

2 this subsection; and

3 (iii) appropriate equitable relief (other

4 than backpay).

5 (B) EXCEPTIONS.—

6 (i) REPAYMENT.—If the Secretary of

7 Labor determines that a violation of para8 graph (2) or (3) has occurred, the Secretary

9 of Labor shall require the State or substate

10 recipient of funds that has violated para11 graph (2) or (3), respectively, to repay to

12 the United States an amount equal to the

13 amount expended in violation of paragraph

14 (2) or (3), respectively.

15 (ii) ADDITIONAL REMEDIES.—In addi16 tion to the remedies available under sub17 paragraph (A), remedies available under

18 this paragraph for violations of paragraph

19 (4) may include—

20 (I) reinstatement of the displaced

21 employee to the position held by such

22 employee prior to displacement;

23 (II) payment of lost wages and

24 benefits of the employee; and
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1 (III) reestablishment of other rel2 evant terms, conditions, and privileges

3 of employment of the employee.

4 (C) OTHER LAWS OR CONTRACTS.—Nothing

5 in this paragraph shall be construed to prohibit

6 a complainant from pursuing a remedy author7 ized under another Federal, State, or local law

8 or a contract or collective bargaining agreement

9 for a violation of the prohibitions or require10 ments described in this subsection.

11 (g) LIMITATIONS ON PARTICIPANTS.—

12 (1) DIPLOMA OR EQUIVALENT.—

13 (A) IN GENERAL.—No individual may par14 ticipate in workforce employment activities de15 scribed in subparagraph (A), (B), (C), (E), (G),

16 (J), or (K) of subsection (a)(6) until the individ17 ual has obtained a secondary school diploma or

18 its recognized equivalent, or is enrolled in a pro19 gram or course of study to obtain a secondary

20 school diploma or its recognized equivalent.

21 (B) EXCEPTION.—Nothing in subparagraph

22 (A) shall prevent participation in workforce em23 ployment activities described under subpara24 graph (A), (B), (C), (E), (G), (J), or (K) of sub25 section (a)(6) by individuals who, after testing
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1 and in the judgment of medical, psychiatric,

2 academic, or other appropriate professionals,

3 lack the requisite capacity to complete success4 fully a course of study that would lead to a sec5 ondary school diploma or its recognized equiva6 lent.

7 (2) SERVICES.—

8 (A) REFERRAL.—If an individual who has

9 not obtained a secondary school diploma or its

10 recognized equivalent applies to participate in

11 workforce employment activities described under

12 subparagraph (A), (B), (C), (E), (G), (J), or (K)

13 of subsection (a)(6), such individual shall be re14 ferred to State approved adult education services

15 that provide instruction designed to help such

16 individual obtain a secondary school diploma or

17 its recognized equivalent.

18 (B) STATE PROVISION OF SERVICES.—Not19 withstanding any other provision of this title, a

20 State may use funds made available under this

21 subtitle for workforce employment activities to

22 provide State approved adult education services

23 that provide instruction designed to help indi24 viduals obtain a secondary school diploma or its

25 recognized equivalent, to individuals who—
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1 (i) are seeking to participate in

2 workforce employment activities described

3 under subparagraph (A), (B), (C), (E), (G),

4 (J), or (K) of subsection (a)(6); and

5 (ii) are otherwise unable to obtain such

6 services.

7 (h) LAWS AND PROCEDURES APPLICABLE TO EXPENDI8 TURE OF STATE FUNDS.—Any funds received by a State

9 under this subtitle shall be expended only in accordance

10 with the laws and procedures applicable to expenditures of

11 the State’s own revenues, subject to the terms and conditions

12 required under this subtitle, particularly section 104, sec13 tion 105, and chapter 2.

14 (i) LIMITATIONS ON PARTICIPANTS.—

15 (1) FINDING.—Congress finds that—

16 (A) the possession, distribution, and use of

17 drugs by participants in workforce employment

18 activities should not be tolerated, and that such

19 use prevents participants from making full use

20 of the benefits extended through such activities at

21 the expense of taxpayers; and

22 (B) applicants and participants should be

23 tested for illegal drug use, in order to maximize

24 the training and assistance provided under this

25 Act.
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1 (2) DRUG TESTS.—Each local entity carrying

2 out workforce employment activities described in sub3 paragraph (A), (B), (C), (D), (E), (G), (H), (J), or

4 (K) of subsection (a)(6) shall administer a drug

5 test—

6 (A) on a random basis, to individuals who

7 apply to participate in such activities; and

8 (B) to a participant in such activities, on

9 reasonable suspicion of drug use by the partici10 pant.

11 (3) ELIGIBILITY OF APPLICANTS.—In order for

12 such an applicant to be eligible to participate in

13 workforce employment activities, the applicant shall

14 agree to submit to a drug test administered as de15 scribed in paragraph (2) and, if the test is adminis16 tered to the applicant, shall pass the test.

17 (4) ELIGIBILITY OF PARTICIPANTS.—In order for

18 such a participant to be eligible to participate in

19 workforce employment activities described in subpara20 graph (A), (B), (C), (D), (E), (G), (H), (J), or (K)

21 of subsection (a)(6), the individual shall agree to sub22 mit to a drug test administered as described in para23 graph (2) and, if the test is administered to the par24 ticipant, shall pass the test. If a participant refuses

25 to submit to the drug test, or fails the drug test, the
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1 local entity shall dismiss the participant from par2 ticipation in the activities.

3 (5) REAPPLICATION.—

4 (A) IN GENERAL.—Except as provided in

5 subparagraph (B), an individual who is an ap6 plicant and is disqualified from eligibility under

7 paragraph (3), or who is a participant and is

8 dismissed under paragraph (4), may reapply,

9 not earlier than 6 months after the date of the

10 disqualification or dismissal, to participate in

11 the workforce employment activities described in

12 subparagraph (A), (B), (C), (D), (E), (G), (H),

13 (J), or (K) of subsection (a)(6). If the individual

14 demonstrates that the individual has completed a

15 drug treatment program and passed a drug test

16 within the past 30 days, the individual may

17 participate in such activities, under the same

18 terms and conditions as apply to other appli19 cants and participants, including submission to

20 drug tests administered as described in para21 graph (2).

22 (B) SECOND DISQUALIFICATION OR DISMIS23 SAL.—If the individual reapplies to participate

24 in the activities and fails a drug test adminis25 tered under paragraph (2) by the local entity,
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1 while the individual is an applicant or a partic2 ipant, the local entity shall disqualify the indi3 vidual from eligibility for, or dismiss the indi4 vidual from participation in, the workforce em5 ployment activities. The individual shall not be

6 eligible to reapply for participation in the ac7 tivities for 2 years after such disqualification or

8 dismissal.

9 (6) APPEAL.—A decision by a local entity to dis10 qualify an individual from eligibility for participa11 tion in workforce employment activities under para12 graph (3) or (5), or to dismiss a participant as de13 scribed in paragraph (4) or (5), shall be subject to ex14 peditious appeal in accordance with procedures estab15 lished by the State in which the local entity is lo16 cated.

17 (7) DEFINITIONS.—As used in this section:

18 (A) DRUG.—The term ‘‘drug’’ means a con19 trolled substance, as defined in section 102(6) of

20 the Controlled Substance Act (21 U.S.C. 802(6)).

21 (B) DRUG TEST.—The term ‘‘drug test’’

22 means a biochemical drug test carried out by a

23 facility that is approved by the local entity ad24 ministering the test.
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1 SEC. 107. INDIAN WORKFORCE DEVELOPMENT ACTIVITIES.

2 (a) PURPOSE.—

3 (1) IN GENERAL.—The purpose of this section is

4 to support workforce development activities for Indian

5 and Native Hawaiian individuals in order—

6 (A) to develop more fully the academic, oc7 cupational, and literacy skills of such individ8 uals;

9 (B) to make such individuals more competi10 tive in the workforce; and

11 (C) to promote the economic and social de12 velopment of Indian and Native Hawaiian com13 munities in accordance with the goals and values

14 of such communities.

15 (2) INDIAN POLICY.—All programs assisted

16 under this section shall be administered in a manner

17 consistent with the principles of the Indian Self-De18 termination and Education Assistance Act (25 U.S.C.

19 450 et seq.) and the government-to-government rela20 tionship between the Federal Government and Indian

21 tribal governments.

22 (b) DEFINITIONS.—As used in this section:

23 (1) ALASKA NATIVE.—The term ‘‘Alaska Native’’

24 means a Native as such term is defined in section

25 3(b) of the Alaska Native Claims Settlement Act (43

26 U.S.C. 1602(b)).
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1 (2) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANI2 ZATION.—The terms ‘‘Indian’’, ‘‘Indian tribe’’, and

3 ‘‘tribal organization’’ have the same meanings given

4 such terms in subsections (d), (e), and (l), respec5 tively, of section 4 of the Indian Self-Determination

6 and Education Assistance Act (25 U.S.C. 450b).

7 (3) INSTITUTION OF HIGHER EDUCATION.—The

8 term ‘‘institution of higher education’’ has the mean9 ing given the term in section 1201(a) of the Higher

10 Education Act of 1965 (20 U.S.C. 1141(a)).

11 (4) NATIVE HAWAIIAN AND NATIVE HAWAIIAN OR12 GANIZATION.—The terms ‘‘Native Hawaiian’’ and

13 ‘‘Native Hawaiian organization’’ have the same

14 meanings given such terms in paragraphs (1) and

15 (3), respectively, of section 9212 of the Native Hawai16 ian Education Act (20 U.S.C. 7912).

17 (5) TRIBALLY CONTROLLED COMMUNITY COL18 LEGE.—The term ‘‘tribally controlled community col19 lege’’ has the same meaning given such term in sec20 tion 2(a)(4) of the Tribally Controlled Community

21 College Assistance Act of 1978 (25 U.S.C. 1801(a)(4)).

22 (6) TRIBALLY CONTROLLED POSTSECONDARY VO23 CATIONAL INSTITUTION.—The term ‘‘tribally con24 trolled postsecondary vocational institution’’ means

25 an institution of higher education that—
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1 (A) is formally controlled, or has been for2 mally sanctioned or chartered, by the governing

3 body of an Indian tribe or Indian tribes;

4 (B) offers a technical degree or certificate

5 granting program;

6 (C) is governed by a board of directors or

7 trustees, a majority of whom are Indians;

8 (D) demonstrates adherence to stated goals,

9 a philosophy, or a plan of operation, that fosters

10 individual Indian economic and self-sufficiency

11 opportunity, including programs that are appro12 priate to stated tribal goals of developing indi13 vidual entrepreneurships and self-sustaining eco14 nomic infrastructures on reservations;

15 (E) has been in operation for at least 3

16 years;

17 (F) holds accreditation with or is a can18 didate for accreditation by a nationally recog19 nized accrediting authority for postsecondary vo20 cational education; and

21 (G) enrolls the full-time equivalent of not

22 fewer than 100 students, of whom a majority are

23 Indians.

24 (c) PROGRAM AUTHORIZED.—
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1 (1) ASSISTANCE AUTHORIZED.—From amounts

2 made available under section 124(b)(2), the Secretary

3 of Labor and the Secretary of Education, acting

4 jointly on the advice of the Federal Partnership, shall

5 make grants to, or enter into contracts or cooperative

6 agreements with, Indian tribes, tribal organizations,

7 Alaska Native entities, tribally controlled community

8 colleges, tribally controlled postsecondary vocational

9 institutions, Indian-controlled organizations serving

10 Indians, or Native Hawaiian organizations to carry

11 out the authorized activities described in subsection

12 (d).

13 (2) FORMULA.—The Secretary of Labor and the

14 Secretary of Education, acting jointly on the advice

15 of the Federal Partnership, shall make grants to, or

16 enter into contracts and cooperative agreements with,

17 entities as described in paragraph (1) to carry out the

18 activities described in paragraphs (2) and (3) of sub19 section (d) on the basis of a formula developed by the

20 Federal Partnership in consultation with entities de21 scribed in paragraph (1).

22 (d) AUTHORIZED ACTIVITIES.—

23 (1) IN GENERAL.—Funds made available under

24 this section shall be used to carry out the activities

25 described in paragraphs (2) and (3) that—
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1 (A) are consistent with this section; and

2 (B) are necessary to meet the needs of Indi3 ans or Native Hawaiians preparing to enter, re4 enter, or retain unsubsidized employment.

5 (2) WORKFORCE DEVELOPMENT ACTIVITIES AND

6 SUPPLEMENTAL SERVICES.—

7 (A) IN GENERAL.—Funds made available

8 under this section shall be used for—

9 (i) comprehensive workforce develop10 ment activities for Indians or Native Ha11 waiians;

12 (ii) supplemental services for Indian or

13 Native Hawaiian youth on or near Indian

14 reservations in Oklahoma, Alaska, or Ha15 waii; or

16 (iii) supplemental services for recipi17 ents of public assistance on or near Indian

18 reservations or former reservation areas in

19 Oklahoma or in Alaska.

20 (B) SPECIAL RULE.—Notwithstanding any

21 other provision of this section, individuals who

22 were eligible to participate in programs under

23 section 401 of the Job Training Partnership Act

24 (29 U.S.C. 1671) (as such section was in effect

25 on the day before the date of enactment of this
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1 Act) shall be eligible to participate in an activ2 ity assisted under subparagraph (A)(i).

3 (3) VOCATIONAL EDUCATION, ADULT EDUCATION,

4 AND LITERACY SERVICES.—Funds made available

5 under this section shall be used for—

6 (A) workforce education activities conducted

7 by entities described in subsection (c)(1); or

8 (B) the support of tribally controlled post9 secondary vocational institutions in order to en10 sure continuing and expanded educational op11 portunities for Indian students.

12 (e) PROGRAM PLAN.—In order to receive a grant or

13 enter into a contract or cooperative agreement under this

14 section an entity described in subsection (c)(1) shall submit

15 to the Federal Partnership a plan that describes a 3-year

16 strategy for meeting the needs of Indian or Native Hawai17 ian individuals, as appropriate, in the area served by such

18 entity. Such plan shall—

19 (1) be consistent with the purposes of this sec20 tion;

21 (2) identify the population to be served;

22 (3) identify the education and employment needs

23 of the population to be served and the manner in

24 which the services to be provided will strengthen the
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1 ability of the individuals served to obtain or retain

2 unsubsidized employment;

3 (4) describe the services to be provided and the

4 manner in which such services are to be integrated

5 with other appropriate services; and

6 (5) describe the goals and benchmarks to be used

7 to assess the performance of entities in carrying out

8 the activities assisted under this section.

9 (f) FURTHER CONSOLIDATION OF FUNDS.—Each en10 tity receiving assistance under this section may consolidate

11 such assistance with assistance received from related pro12 grams in accordance with the provisions of the Indian Em13 ployment, Training and Related Services Demonstration

14 Act of 1992 (25 U.S.C. 3401 et seq.).

15 (g) NONDUPLICATIVE AND NONEXCLUSIVE SERV16 ICES.—Nothing in this section shall be construed—

17 (1) to limit the eligibility of any entity described

18 in subsection (c)(1) to participate in any program of19 fered by a State or local entity under this title; or

20 (2) to preclude or discourage any agreement, be21 tween any entity described in subsection (c)(1) and

22 any State or local entity, to facilitate the provision

23 of services by such entity or to the population served

24 by such entity.

25 (h) PARTNERSHIP PROVISIONS.—
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1 (1) OFFICE ESTABLISHED.—There shall be estab2 lished within the Federal Partnership an office to ad3 minister the activities assisted under this section.

4 (2) CONSULTATION REQUIRED.—

5 (A) IN GENERAL.—The Federal Partner6 ship, through the office established under para7 graph (1), shall develop regulations and policies

8 for activities assisted under this section in con9 sultation with tribal organizations and Native

10 Hawaiian organizations. Such regulations and

11 policies shall take into account the special cir12 cumstances under which such activities operate.

13 (B) ADMINISTRATIVE SUPPORT.—The Fed14 eral Partnership shall provide such administra15 tive support to the office established under para16 graph (1) as the Federal Partnership determines

17 to be necessary to carry out the consultation re18 quired by subparagraph (A).

19 (3) TECHNICAL ASSISTANCE.—The Federal Part20 nership, through the office established under para21 graph (1), is authorized to provide technical assist22 ance to entities described in subsection (c)(1) that re23 ceive assistance under this section to enable such enti24 ties to improve the workforce development activities

25 provided by such entities.
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1 SEC. 108. MIGRANT OR SEASONAL FARMWORKER PROGRAM.

2 (a) GENERAL AUTHORITY.—Using funds made avail3 able under section 124(b)(3), the Secretary of Labor and

4 the Secretary of Education, acting jointly on the advice of

5 the Federal Partnership, shall make grants to, or enter into

6 contracts with, entities to carry out the activities described

7 in subsection (d).

8 (b) ELIGIBLE ENTITIES.—To be eligible to receive a

9 grant or enter into a contract under this section, an entity

10 shall have an understanding of the problems of migrant or

11 seasonal farmworkers, a familiarity with the area to be

12 served, and a previously demonstrated capacity to admin13 ister effectively a diversified program of workforce develop14 ment activities for migrant or seasonal farmworkers.

15 (c) PROGRAM PLAN.—

16 (1) IN GENERAL.—To be eligible to receive a

17 grant or enter into a contract under this section, an

18 entity described in subsection (b) shall submit to the

19 Federal Partnership a plan that describes a 3-year

20 strategy for meeting the needs of migrant or seasonal

21 farmworkers in the area to be served by such entity.

22 (2) CONTENTS.—Such plan shall—

23 (A) identify the education and employment

24 needs of the population to be served and the

25 manner in which the services to be provided will

26 strengthen the ability of the individuals served to
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1 obtain or be retained in unsubsidized employ2 ment;

3 (B) describe the services to be provided and

4 the manner in which such services are to be inte5 grated with other appropriate services; and

6 (C) describe the goals and benchmarks to be

7 used to assess the performance of such entity in

8 carrying out the activities assisted under this

9 section.

10 (d) AUTHORIZED ACTIVITIES.—Funds made available

11 under this section shall be used to carry out comprehensive

12 workforce development activities, and related services, for

13 migrant or seasonal farmworkers.

14 (e) CONSULTATION WITH STATE AND LOCAL PARTNER15 SHIPS AND BOARDS.—In making grants and entering into

16 contracts under this section, the Federal Partnership shall

17 consult with the Governors (or, where established, the State

18 workforce development boards described in section 105) and

19 with local partnerships (or, where established, the local

20 workforce development boards described in section 118(b)).

21 SEC. 109. GRANTS TO OUTLYING AREAS.

22 (a) GENERAL AUTHORITY.—Using funds made avail23 able under section 124(b)(4), the Secretary of Labor and

24 the Secretary of Education, acting jointly on the advice of
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1 the Federal Partnership, shall make grants to outlying

2 areas to carry out workforce development activities.

3 (b) APPLICATION.—The Federal Partnership shall

4 issue regulations specifying the provisions of this subtitle

5 that shall apply to outlying areas that receive funds under

6 this subtitle.

7 CHAPTER 2—LOCAL PROVISIONS

8 SEC. 111. LOCAL APPORTIONMENT BY ACTIVITY.

9 (a) WORKFORCE EMPLOYMENT ACTIVITIES.—

10 (1) IN GENERAL.—The sum of—

11 (A) the funds made available to a State for

12 any fiscal year under section 103(a)(1), less any

13 portion of such funds made available under sec14 tion 6 of the Wagner-Peyser Act (29 U.S.C. 49e);

15 and

16 (B) the funds made available to a State for

17 any fiscal year under section 103(a)(3) for

18 workforce employment activities;

19 shall be made available to the Governor of such State

20 for use in accordance with paragraph (2).

21 (2) DISTRIBUTION.—Of the sum described in

22 paragraph (1), for a program year—

23 (A) 25 percent shall be reserved by the Gov24 ernor to carry out workforce employment activi25 ties through the statewide system, of which not
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1 more than 20 percent of such 25 percent may be

2 used for administrative expenses; and

3 (B) 75 percent shall be distributed by the

4 Governor to local entities to carry out workforce

5 employment activities through the statewide sys6 tem, based on—

7 (i) such factors as the relative distribu8 tion among substate areas of individuals

9 who are not less than 15 and not more than

10 65, individuals in poverty, unemployed in11 dividuals, and adult recipients of assist12 ance, as determined using the definitions

13 specified and the determinations described

14 in section 102(b); and

15 (ii) such additional factors as the Gov16 ernor (in consultation with local partner17 ships or, where established, local workforce

18 development boards described in section

19 118(b)), determines to be necessary.

20 (b) WORKFORCE EDUCATION ACTIVITIES.—

21 (1) IN GENERAL.—The sum of the funds made

22 available to a State for any program year under

23 paragraphs (2) and (3) of section 103(a) for

24 workforce education activities shall be made available
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1 to the State educational agency serving such State for

2 use in accordance with paragraph (2).

3 (2) DISTRIBUTION.—Of the sum described in

4 paragraph (1), for a program year—

5 (A) 20 percent shall be reserved by the State

6 educational agency to carry out statewide

7 workforce education activities through the state8 wide system, of which not more than 5 percent

9 of such 20 percent may be used for administra10 tive expenses; and

11 (B) 80 percent shall be distributed by the

12 State educational agency to entities eligible for

13 financial assistance under section 112, 113, or

14 114, to carry out workforce education activities

15 through the statewide system.

16 (3) STATE ACTIVITIES.—Activities to be carried

17 out under paragraph (2)(A) may include professional

18 development, technical assistance, and program as19 sessment activities.

20 (4) STATE DETERMINATIONS.—From the amount

21 available to a State educational agency under para22 graph (2)(B) for a program year, such agency shall

23 determine the percentage of such amount that will be

24 distributed in accordance with sections 112, 113, and
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1 114 for such year for workforce education activities in

2 such State in each of the following areas:

3 (A) Secondary school vocational education,

4 or postsecondary and adult vocational education,

5 or both; and

6 (B) Adult education.

7 (c) SPECIAL RULE.—Nothing in this subtitle shall be

8 construed to prohibit any individual, entity, or agency in

9 a State (other than the State educational agency) that is

10 administering workforce education activities or setting edu11 cation policies consistent with authority under State law

12 for workforce education activities, on the day preceding the

13 date of enactment of this Act from continuing to administer

14 or set education policies consistent with authority under

15 State law for such activities under this subtitle.

16 SEC. 112. DISTRIBUTION FOR SECONDARY SCHOOL VOCA17 TIONAL EDUCATION.

18 (a) ALLOCATION.—Except as otherwise provided in

19 this section and section 115, each State educational agency

20 shall distribute the portion of the funds made available for

21 any program year (from funds made available for the cor22 responding fiscal year, as determined under section 124(c))

23 by such agency for secondary school vocational education

24 under section 111(b)(4)(A) to local educational agencies

25 within the State as follows:
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1 (1) SEVENTY PERCENT.—From 70 percent of

2 such portion, each local educational agency shall be

3 allocated an amount that bears the same relationship

4 to such 70 percent as the amount such local edu5 cational agency was allocated under section 1124 of

6 the Elementary and Secondary Education Act of

7 1965 (20 U.S.C. 6333) for the preceding fiscal year

8 bears to the total amount received under such section

9 by all local educational agencies in the State for such

10 year.

11 (2) TWENTY PERCENT.—From 20 percent of such

12 portion, each local educational agency shall be allo13 cated an amount that bears the same relationship to

14 such 20 percent as the number of students with dis15 abilities who have individualized education programs

16 under section 614(a)(5) of the Individuals with Dis17 abilities Education Act (20 U.S.C. 1414(a)(5)) served

18 by such local educational agency for the preceding fis19 cal year bears to the total number of such students

20 served by all local educational agencies in the State

21 for such year.

22 (3) TEN PERCENT.—From 10 percent of such

23 portion, each local educational agency shall be allo24 cated an amount that bears the same relationship to

25 such 10 percent as the number of students enrolled in
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1 schools and adults enrolled in training programs

2 under the jurisdiction of such local educational agen3 cy for the preceding fiscal year bears to the number

4 of students enrolled in schools and adults enrolled in

5 training programs under the jurisdiction of all local

6 educational agencies in the State for such year.

7 (b) MINIMUM ALLOCATION.—

8 (1) IN GENERAL.—Except as provided in para9 graph (2), no local educational agency shall receive

10 an allocation under subsection (a) unless the amount

11 allocated to such agency under subsection (a) is not

12 less than $15,000. A local educational agency may

13 enter into a consortium with other local educational

14 agencies for purposes of meeting the minimum alloca15 tion requirement of this paragraph.

16 (2) WAIVER.—The State educational agency may

17 waive the application of paragraph (1) in any case

18 in which the local educational agency—

19 (A) is located in a rural, sparsely populated

20 area; and

21 (B) demonstrates that such agency is unable

22 to enter into a consortium for purposes of pro23 viding services under this section.

24 (3) REDISTRIBUTION.—Any amounts that are

25 not allocated by reason of paragraph (1) or (2) shall
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1 be redistributed to local educational agencies that

2 meet the requirements of paragraph (1) or (2) in ac3 cordance with the provisions of this section.

4 (c) LIMITED JURISDICTION AGENCIES.—

5 (1) IN GENERAL.—In applying the provisions of

6 subsection (a), no State educational agency receiving

7 assistance under this subtitle shall allocate funds to a

8 local educational agency that serves only elementary

9 schools, but shall distribute such funds to the local

10 educational agency or regional educational agency

11 that provides secondary school services to secondary

12 school students in the same attendance area.

13 (2) SPECIAL RULE.—The amount to be allocated

14 under paragraph (1) to a local educational agency

15 that has jurisdiction only over secondary schools shall

16 be determined based on the number of students that

17 entered such secondary schools in the previous year

18 from the elementary schools involved.

19 (d) ALLOCATIONS TO AREA VOCATIONAL EDUCATION

20 SCHOOLS AND EDUCATIONAL SERVICE AGENCIES.—

21 (1) IN GENERAL.—Each State educational agen22 cy shall distribute the portion of funds made available

23 for any program year by such agency for secondary

24 school vocational education under section

25 111(b)(4)(A) to the appropriate area vocational edu-
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1 cation school or educational service agency in any

2 case in which—

3 (A) the area vocational education school or

4 educational service agency, and the local edu5 cational agency concerned—

6 (i) have formed or will form a consor7 tium for the purpose of receiving funds

8 under this section; or

9 (ii) have entered into or will enter into

10 a cooperative arrangement for such purpose;

11 and

12 (B)(i) the area vocational education school

13 or educational service agency serves an approxi14 mately equal or greater proportion of students

15 who are individuals with disabilities or are low16 income than the proportion of such students at17 tending the secondary schools under the jurisdic18 tion of all of the local educational agencies send19 ing students to the area vocational education

20 school or the educational service agency; or

21 (ii) the area vocational education school,

22 educational service agency, or local educational

23 agency demonstrates that the vocational edu24 cation school or educational service agency is un25 able to meet the criterion described in clause (i)
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1 due to the lack of interest by students described

2 in clause (i) in attending vocational education

3 programs in that area vocational education

4 school or educational service agency.

5 (2) ALLOCATION BASIS.—If an area vocational

6 education school or educational service agency meets

7 the requirements of paragraph (1), then—

8 (A) the amount that will otherwise be dis9 tributed to the local educational agency under

10 this section shall be allocated to the area voca11 tional education school, the educational service

12 agency, and the local educational agency, based

13 on each school’s or agency’s relative share of stu14 dents described in paragraph (1)(B)(i) who are

15 attending vocational education programs (based,

16 if practicable, on the average enrollment for the

17 prior 3 years); or

18 (B) such amount may be allocated on the

19 basis of an agreement between the local edu20 cational agency and the area vocational edu21 cation school or educational service agency.

22 (3) STATE DETERMINATION.—

23 (A) IN GENERAL.—For the purposes of this

24 subsection, the State educational agency may de-
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1 termine the number of students who are low-in2 come on the basis of—

3 (i) eligibility for—

4 (I) free or reduced-price meals

5 under the National School Lunch Act

6 (7 U.S.C. 1751 et seq.);

7 (II) assistance under a State pro8 gram funded under part A of title IV

9 of the Social Security Act;

10 (III) benefits under the Food

11 Stamp Act of 1977 (7 U.S.C. 2011 et

12 seq.); or

13 (IV) services under title I of the

14 Elementary and Secondary Education

15 Act of 1965 (20 U.S.C. 6301 et seq.);

16 and

17 (ii) another index of economic status,

18 including an estimate of such index, if the

19 State educational agency demonstrates to

20 the satisfaction of the Federal Partnership

21 that such index is a more representative

22 means of determining such number.

23 (B) DATA.—If a State educational agency

24 elects to use more than 1 factor described in sub25 paragraph (A) for purposes of making the deter-
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1 mination described in such subparagraph, the

2 State educational agency shall ensure that the

3 data used is not duplicative.

4 (4) APPEALS PROCEDURE.—The State edu5 cational agency shall establish an appeals procedure

6 for resolution of any dispute arising between a local

7 educational agency and an area vocational education

8 school or an educational service agency with respect

9 to the allocation procedures described in this section,

10 including the decision of a local educational agency

11 to leave a consortium.

12 (5) SPECIAL RULE.—Notwithstanding the provi13 sions of paragraphs (1), (2), (3), and (4), any local

14 educational agency receiving an allocation that is not

15 sufficient to conduct a secondary school vocational

16 education program of sufficient size, scope, and qual17 ity to be effective may—

18 (A) form a consortium or enter into a coop19 erative agreement with an area vocational edu20 cation school or educational service agency offer21 ing secondary school vocational education pro22 grams of sufficient size, scope, and quality to be

23 effective and that are accessible to students who

24 are individuals with disabilities or are low-in-
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1 come, and are served by such local educational

2 agency; and

3 (B) transfer such allocation to the area vo4 cational education school or educational service

5 agency.

6 (e) SPECIAL RULE.—Each State educational agency

7 distributing funds under this section shall treat a secondary

8 school funded by the Bureau of Indian Affairs within the

9 State as if such school were a local educational agency with10 in the State for the purpose of receiving a distribution

11 under this section.

12 SEC. 113. DISTRIBUTION FOR POSTSECONDARY AND ADULT

13 VOCATIONAL EDUCATION.

14 (a) ALLOCATION.—

15 (1) IN GENERAL.—Except as provided in sub16 section (b) and section 115, each State educational

17 agency, using the portion of the funds made available

18 for any program year by such agency for postsecond19 ary and adult vocational education under section

20 111(b)(4)(A)—

21 (A) shall reserve funds to carry out sub22 section (d); and

23 (B) shall distribute the remainder to eligible

24 institutions or consortia of the institutions with25 in the State.
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1 (2) FORMULA.—Each such eligible institution or

2 consortium shall receive an amount for the program

3 year (from funds made available for the correspond4 ing fiscal year, as determined under section 124(c))

5 from such remainder that bears the same relationship

6 to such remainder as the number of individuals who

7 are Pell Grant recipients or recipients of assistance

8 from the Bureau of Indian Affairs and are enrolled

9 in programs offered by such institution or consortium

10 for the preceding fiscal year bears to the number of

11 all such individuals who are enrolled in any such

12 program within the State for such preceding year.

13 (3) CONSORTIUM REQUIREMENTS.—In order for

14 a consortium of eligible institutions described in

15 paragraph (1) to receive assistance pursuant to such

16 paragraph such consortium shall operate joint

17 projects that—

18 (A) provide services to all postsecondary in19 stitutions participating in the consortium; and

20 (B) are of sufficient size, scope, and quality

21 to be effective.

22 (b) WAIVER FOR MORE EQUITABLE DISTRIBUTION.—

23 The Federal Partnership may waive the application of sub24 section (a) in the case of any State educational agency that
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1 submits to the Federal Partnership an application for such

2 a waiver that—

3 (1) demonstrates that the formula described in

4 subsection (a) does not result in a distribution of

5 funds to the institutions or consortia within the State

6 that have the highest numbers of low-income individ7 uals and that an alternative formula will result in

8 such a distribution; and

9 (2) includes a proposal for an alternative for10 mula that may include criteria relating to the num11 ber of individuals attending the institutions or con12 sortia within the State who—

13 (A) receive need-based postsecondary finan14 cial aid provided from public funds;

15 (B) are members of families receiving as16 sistance under a State program funded under

17 part A of title IV of the Social Security Act;

18 (C) are enrolled in postsecondary edu19 cational institutions that—

20 (i) are funded by the State;

21 (ii) do not charge tuition; and

22 (iii) serve only low-income students;

23 (D) are enrolled in programs serving low24 income adults; or

25 (E) are Pell Grant recipients.
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1 (c) MINIMUM AMOUNT.—

2 (1) IN GENERAL.—No distribution of funds pro3 vided to any institution or consortium for a program

4 year under this section shall be for an amount that

5 is less than $50,000.

6 (2) REDISTRIBUTION.—Any amounts that are

7 not distributed by reason of paragraph (1) shall be re8 distributed to eligible institutions or consortia in ac9 cordance with the provisions of this section.

10 (d) SPECIAL RULE FOR CRIMINAL OFFENDERS.—Each

11 State educational agency shall distribute the funds reserved

12 under subsection (a)(1)(A) to 1 or more State corrections

13 agencies to enable the State corrections agencies to admin14 ister vocational education programs for juvenile and adult

15 criminal offenders in correctional institutions in the State,

16 including correctional institutions operated by local au17 thorities.

18 (e) DEFINITIONS.—For the purposes of this section—

19 (1) the term ‘‘eligible institution’’ means a post20 secondary educational institution, a local educational

21 agency serving adults, or an area vocational edu22 cation school serving adults that offers or will offer a

23 program that seeks to receive financial assistance

24 under this section;
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1 (2) the term ‘‘low-income’’, used with respect to

2 a person, means a person who is determined under

3 guidelines developed by the Federal Partnership to be

4 low-income, using the most recent available data pro5 vided by the Bureau of the Census, prior to the deter6 mination; and

7 (3) the term ‘‘Pell Grant recipient’’ means a re8 cipient of financial aid under subpart 1 of part A of

9 title IV of the Higher Education Act of 1965 (20

10 U.S.C. 1070a et seq.).

11 SEC. 114. DISTRIBUTION FOR ADULT EDUCATION.

12 (a) IN GENERAL.—Except as provided in subsection

13 (b)(3), from the amount made available by a State edu14 cational agency for adult education under section

15 111(b)(4)(B) for a program year, such agency shall award

16 grants, on a competitive basis, to local educational agencies,

17 correctional education agencies, community-based organiza18 tions of demonstrated effectiveness, volunteer literacy orga19 nizations, libraries, public or private nonprofit agencies,

20 postsecondary educational institutions, public housing au21 thorities, and other nonprofit institutions that have the

22 ability to provide literacy services to adults and families,

23 or consortia of agencies, organizations, or institutions de24 scribed in this subsection, to enable such agencies, organiza-
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1 tions, institutions, and consortia to establish or expand

2 adult education programs.

3 (b) GRANT REQUIREMENTS.—

4 (1) ACCESS.—Each State educational agency

5 making funds available for any program year for

6 adult education under section 111(b)(4)(B) shall en7 sure that the entities described in subsection (a) will

8 be provided direct and equitable access to all Federal

9 funds provided under this section.

10 (2) CONSIDERATIONS.—In awarding grants

11 under this section, the State educational agency shall

12 consider—

13 (A) the past effectiveness of applicants in

14 providing services (especially with respect to re15 cruitment and retention of educationally dis16 advantaged adults and the learning gains dem17 onstrated by such adults);

18 (B) the degree to which an applicant will

19 coordinate and utilize other literacy and social

20 services available in the community; and

21 (C) the commitment of the applicant to

22 serve individuals in the community who are

23 most in need of literacy services.

24 (3) CONSORTIA.—A State educational agency

25 may award a grant under subsection (a) to a consor-
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1 tium that includes an entity described in subsection

2 (a) and a for-profit agency, organization, or institu3 tion, if such agency, organization, or institution—

4 (A) can make a significant contribution to

5 carrying out the objectives of this subtitle; and

6 (B) enters into a contract with the entity

7 described in subsection (a) for the purpose of es8 tablishing or expanding adult education pro9 grams.

10 (c) LOCAL ADMINISTRATIVE COST LIMITS.—

11 (1) IN GENERAL.—Except as provided in para12 graph (2), of the funds provided under this section by

13 a State educational agency to an agency, organiza14 tion, institution, or consortium described in sub15 section (a), at least 95 percent shall be expended for

16 provision of adult education instructional activities.

17 The remainder shall be used for planning, adminis18 tration, personnel development, and interagency co19 ordination.

20 (2) SPECIAL RULE.—In cases where the cost lim21 its described in paragraph (1) will be too restrictive

22 to allow for adequate planning, administration, per23 sonnel development, and interagency coordination

24 supported under this section, the State educational

25 agency shall negotiate with the agency, organization,
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1 institution, or consortium described in subsection (a)

2 in order to determine an adequate level of funds to be

3 used for noninstructional purposes.

4 SEC. 115. SPECIAL RULE FOR MINIMAL ALLOCATION.

5 (a) GENERAL AUTHORITY.—For any program year for

6 which a minimal amount is made available by a State edu7 cational agency for distribution under section 112 or 113

8 such agency may, notwithstanding the provisions of section

9 112 or 113, respectively, in order to make a more equitable

10 distribution of funds for programs serving the highest num11 bers of low-income individuals (as defined in section

12 113(e)), distribute such minimal amount—

13 (1) on a competitive basis; or

14 (2) through any alternative method determined

15 by the State educational agency.

16 (b) MINIMAL AMOUNT.—For purposes of this section,

17 the term ‘‘minimal amount’’ means not more than 15 per18 cent of the total amount made available by the State edu19 cational agency under section 111(b)(4)(A) for section 112

20 or 113, respectively, for such program year.

21 SEC. 116. REDISTRIBUTION.

22 (a) IN GENERAL.—In any program year that an en23 tity receiving financial assistance under section 112 or 113

24 does not expend all of the amounts distributed to such entity

25 for such year under section 112 or 113, respectively, such
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1 entity shall return any unexpended amounts to the State

2 educational agency for distribution under section 112 or

3 113, respectively. The State educational agency may waive

4 the requirements of the preceding sentence, on a case-by5 case basis, for good cause as determined by such agency.

6 (b) REDISTRIBUTION OF AMOUNTS RETURNED LATE

7 IN A PROGRAM YEAR.—In any program year in which

8 amounts are returned to the State educational agency under

9 subsection (a) for programs described in section 112 or 113

10 and the State educational agency is unable to redistribute

11 such amounts according to section 112 or 113, respectively,

12 in time for such amounts to be expended in such program

13 year, the State educational agency shall retain such

14 amounts for distribution in combination with amounts pro15 vided under such section for the following program year.

16 SEC. 117. LOCAL APPLICATION FOR WORKFORCE EDU17 CATION ACTIVITIES.

18 (a) IN GENERAL.—

19 (1) IN GENERAL.—Each eligible entity desiring

20 financial assistance under this subtitle for workforce

21 education activities shall submit an application to the

22 State educational agency at such time, in such man23 ner and accompanied by such information as such

24 agency (in consultation with such other educational

25 entities as the State educational agency determines to
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1 be appropriate) may require. Such application shall

2 cover the same period of time as the period of time

3 applicable to the State workforce development plan.

4 (2) DEFINITION.—For the purpose of this section

5 the term ‘‘eligible entity’’ means an entity eligible for

6 financial assistance under section 112, 113, or 114

7 from a State educational agency.

8 (b) CONTENTS.—Each application described in sub9 section (a) shall, at a minimum—

10 (1) describe how the workforce education activi11 ties required under section 106(b), and other

12 workforce education activities, will be carried out

13 with funds received under this subtitle;

14 (2) describe how the activities to be carried out

15 relate to meeting the State goals, and reaching the

16 State benchmarks, concerning workforce education ac17 tivities;

18 (3) describe how the activities to be carried out

19 are an integral part of the comprehensive efforts of

20 the eligible entity to improve education for all stu21 dents and adults;

22 (4) describe the process that will be used to inde23 pendently evaluate and continuously improve the per24 formance of the eligible entity; and
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1 (5) describe how the eligible entity will coordi2 nate the activities of the entity with the activities of

3 the local workforce development board, if any, in the

4 substate area.

5 SEC. 118. LOCAL PARTNERSHIPS, AGREEMENTS, AND

6 WORKFORCE DEVELOPMENT BOARDS.

7 (a) LOCAL AGREEMENTS.—

8 (1) IN GENERAL.—

9 (A) NEGOTIATION AND AGREEMENT.—After

10 a Governor submits the State plan described in

11 section 104 to the Federal Partnership, the Gov12 ernor shall negotiate and enter into a local

13 agreement regarding the workforce development

14 activities to be carried out in each substate area

15 in the State with local partnerships (or, where

16 established, local workforce development boards

17 described in subsection (b)).

18 (B) WORKFORCE EDUCATION ACTIVITIES.—

19 In carrying out activities under this section, a

20 local partnership or local workforce development

21 board described in subsection (b) may make rec22 ommendations with respect to the allocation of

23 funds for, or administration of, workforce edu24 cation activities in the State involved, but such

25 allocation and administration shall be carried
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1 out in accordance with sections 111 through 117

2 and section 119.

3 (2) LOCAL PARTNERSHIPS.—

4 (A) IN GENERAL.—A local partnership re5 ferred to in paragraph (1) shall be established by

6 the local chief elected official, in accordance with

7 subparagraphs (B) and (C), and shall consist of

8 individuals representing business, industry, and

9 labor, local secondary schools, local postsecond10 ary education institutions, local adult education

11 providers, local elected officials, rehabilitation

12 agencies and organizations, community-based or13 ganizations, and veterans, within the appro14 priate substate area.

15 (B) MULTIPLE JURISDICTIONS.—In any

16 case in which there are 2 or more units of gen17 eral local government in the substate area in18 volved, the chief elected official of each such unit

19 shall appoint members of the local partnership

20 in accordance with an agreement entered into by

21 such chief elected officials. In the absence of such

22 an agreement, such appointments shall be made

23 by the Governor of the State involved from the

24 individuals nominated or recommended by the

25 chief elected officials.
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1 (C) SELECTION OF BUSINESS AND INDUS2 TRY REPRESENTATIVES.—Individuals represent3 ing business and industry in the local partner4 ship shall be appointed by the chief elected offi5 cial from nominations submitted by business or6 ganizations in the substate area involved. Such

7 individuals shall reasonably represent the indus8 trial and demographic composition of the busi9 ness community. Where possible, at least 50 per10 cent of such business and industry representa11 tives shall be representatives of small business.

12 (3) BUSINESS AND INDUSTRY INVOLVEMENT.—

13 The business and industry representatives shall have

14 a lead role in the design, management, and evalua15 tion of the activities to be carried out in the substate

16 area under the local agreement.

17 (4) CONTENTS.—

18 (A) STATE GOALS AND STATE BENCH19 MARKS.—Such an agreement shall include a de20 scription of the manner in which funds allocated

21 to a substate area in accordance with section

22 111(a) or in accordance with sections 111(b),

23 112, 113, and 114 will be spent to meet the State

24 goals and reach the State benchmarks in a man25 ner that reflects local labor market conditions.
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1 (B) LOCAL RESPONSIBILITIES.—The agree2 ment shall also include a description of the re3 sponsibilities of the local partnership (or, where

4 established, local workforce development board

5 described in subsection (b)) for carrying out

6 workforce development activities under this sub7 title.

8 (C) COLLABORATION.—The agreement shall

9 also include information that demonstrates the

10 manner in which—

11 (i) the Governor; and

12 (ii) the local partnership (or, where es13 tablished, the local workforce development

14 board);

15 collaborated in reaching the agreement.

16 (5) FAILURE TO REACH AGREEMENT.—If, after a

17 reasonable effort, the Governor is unable to enter into

18 an agreement with the local partnership (or, where es19 tablished, the local workforce development board), the

20 Governor shall notify the partnership or board, as ap21 propriate, and provide the partnership or board, as

22 appropriate, with the opportunity to comment, not

23 later than 30 days after the date of the notification,

24 on the manner in which funds allocated to such sub-
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1 state area will be spent to meet the State goals and

2 reach the State benchmarks.

3 (6) EXCEPTION.—A State that indicates in the

4 State plan described in section 104 that the State will

5 be treated as a substate area for purposes of the appli6 cation of this subtitle shall not be subject to this sub7 section.

8 (b) LOCAL WORKFORCE DEVELOPMENT BOARDS.—

9 (1) IN GENERAL.—Each State may facilitate the

10 establishment of local workforce development boards

11 in each substate area to set policy and provide over12 sight over the workforce development activities in the

13 substate area.

14 (2) MEMBERSHIP.—

15 (A) STATE CRITERIA.—The Governor shall

16 establish criteria for use by local chief elected of17 ficials in each substate area in the selection of

18 members of the local workforce development

19 boards, in accordance with the requirements of

20 subparagraph (B).

21 (B) REPRESENTATION REQUIREMENT.—

22 Such criteria shall require, at a minimum, that

23 a local workforce development board consist of—
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1 (i) representatives of business and in2 dustry in the substate area, who shall con3 stitute a majority of the board;

4 (ii) representatives of labor, workers,

5 and community-based organizations, who

6 shall constitute not less than 25 percent of

7 the members of the board;

8 (iii) representatives of local secondary

9 schools, postsecondary education institu10 tions, and adult education providers;

11 (iv) representatives of veterans; and

12 (v) 1 or more individuals with disabil13 ities, or their representatives.

14 (C) CHAIR.—Each local workforce develop15 ment board shall select a chairperson from

16 among the members of the board who are rep17 resentatives of business and industry.

18 (3) CONFLICT OF INTEREST.—No member of a

19 local workforce development board shall vote on a

20 matter relating to the provision of services by the

21 member (or any organization that the member di22 rectly represents) or vote on a matter that would pro23 vide direct financial benefit to such member or the

24 immediate family of such member or engage in any
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1 other activity determined by the Governor to con2 stitute a conflict of interest.

3 (4) FUNCTIONS.—The functions of the local

4 workforce development board shall include—

5 (A) submitting to the Governor a single

6 comprehensive 3-year strategic plan for

7 workforce development activities in the substate

8 area that includes information—

9 (i) identifying the workforce develop10 ment needs of local industries, students, job11 seekers, and workers;

12 (ii) identifying the workforce develop13 ment activities to be carried out in the sub14 state area with funds received through the

15 allotment made to the State under section

16 102, to meet the State goals and reach the

17 State benchmarks;

18 (iii) identifying how the local

19 workforce development board will obtain the

20 active and continuous participation of busi21 ness, industry, and labor in the development

22 and continuous improvement of the

23 workforce development activities carried out

24 in the substate area; and
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1 (iv) identifying how the local workforce

2 development board will obtain the active

3 and continuous participation of secondary

4 school teachers, secondary school students

5 involved in workforce education activities

6 carried out under this subtitle, and parents

7 of such students, in the development and

8 continuous improvement of the workforce

9 education activities carried out in the sub10 state area;

11 (B) entering into local agreements with the

12 Governor as described in subsection (a);

13 (C) overseeing the operations of the one-stop

14 delivery of core services described in section

15 106(a)(2) in the substate area, including the re16 sponsibility to—

17 (i) designate local entities to operate

18 the one-stop delivery in the substate area,

19 consistent with the criteria referred to in

20 section 106(a)(2); and

21 (ii) develop and approve the budgets

22 and annual operating plans of the providers

23 of the one-stop delivery; and

24 (D) submitting annual reports to the Gov25 ernor on the progress being made in the substate
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1 area toward meeting the State goals and reach2 ing the State benchmarks.

3 (5) CONSULTATION.—A local workforce develop4 ment board that serves a substate area shall conduct

5 the functions described in paragraph (4) in consulta6 tion with the chief elected officials in the substate

7 area.

8 (c) ECONOMIC DEVELOPMENT ACTIVITIES.—A State

9 shall be eligible to use not more than 50 percent of the funds

10 made available to the State through the flex account for

11 flexible workforce activities to carry out economic develop12 ment activities if—

13 (1) the boards described in section 105 and sub14 section (b) are established in the State;

15 (2) in the case of a State that indicates in the

16 State plan described in section 104 that the State will

17 be treated as a substate area for purposes of the appli18 cation of this subtitle, the board described in section

19 105 is established in the State; or

20 (3) beginning with program year 2000, in the

21 case of a State that elects to offer activities for per22 sons age 18 or older under section 106(a)(6), the State

23 uses the authority of section 106(a)(9) to deliver some

24 or all of such activities through a system of vouchers.
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1 SEC. 119. CONSTRUCTION.

2 Nothing in this title shall be construed—

3 (1) to prohibit a local educational agency (or a

4 consortium thereof) that receives assistance under sec5 tion 112, from working with an eligible entity (or

6 consortium thereof) that receives assistance under sec7 tion 113, to carry out secondary school vocational

8 education activities in accordance with this subtitle;

9 or

10 (2) to prohibit an eligible entity (or consortium

11 thereof) that receives assistance under section 113,

12 from working with a local educational agency (or

13 consortium thereof) that receives assistance under sec14 tion 112, to carry out postsecondary and adult voca15 tional education activities in accordance with this

16 subtitle.

17 CHAPTER 3—ADMINISTRATION

18 SEC. 121. ACCOUNTABILITY.

19 (a) REPORT.—

20 (1) IN GENERAL.—Each State that receives an

21 allotment under section 102 shall annually prepare

22 and submit to the Federal Partnership, a report that

23 states how the State is performing on State bench24 marks, and the status and results of any State eval25 uations specified in subsection (f), that relate to

26 workforce development activities (and workforce prep-
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1 aration activities for at-risk youth) carried out

2 through the statewide system of the State. In prepar3 ing the report, the State may include information on

4 such additional benchmarks as the State may estab5 lish to meet the State goals.

6 (2) CONSOLIDATED REPORT.—In lieu of submit7 ting separate reports under paragraph (1) and section

8 409(a) of the Social Security Act, the State may pre9 pare a consolidated report. Any consolidated report

10 prepared under this paragraph shall contain the in11 formation described in paragraph (1) and subsections

12 (a) through (h) of section 409 of the Social Security

13 Act. The State shall submit any consolidated report

14 prepared under this paragraph to the Federal Part15 nership, the Secretary of Agriculture, and the Sec16 retary of Health and Human Services, on the dates

17 specified in section 409(a) of the Social Security Act.

18 (b) GOALS.—

19 (1) MEANINGFUL EMPLOYMENT.—Each statewide

20 system supported by an allotment under section 102

21 shall be designed to meet the goal of assisting partici22 pants in obtaining meaningful unsubsidized employ23 ment opportunities in the State.

24 (2) EDUCATION.—Each statewide system sup25 ported by an allotment under section 102 shall be de-
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1 signed to meet the goal of enhancing and developing

2 more fully the academic, occupational, and literacy

3 skills of all segments of the population of the State.

4 (c) BENCHMARKS.—

5 (1) MEANINGFUL EMPLOYMENT.—To be eligible

6 to receive an allotment under section 102, a State

7 shall develop, in accordance with paragraph (5), and

8 identify in the State plan of the State, proposed

9 quantifiable benchmarks to measure the statewide

10 progress of the State toward meeting the goal de11 scribed in subsection (b)(1), which shall include, at a

12 minimum, measures of—

13 (A) placement in unsubsidized employment

14 of participants;

15 (B) retention of the participants in such

16 employment (12 months after completion of the

17 participation); and

18 (C) increased earnings for the participants.

19 (2) EDUCATION.—To be eligible to receive an al20 lotment under section 102, a State shall develop, in

21 accordance with paragraph (5), and identify in the

22 State plan of the State, proposed quantifiable bench23 marks to measure the statewide progress of the State

24 toward meeting the goal described in subsection
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1 (b)(2), which shall include, at a minimum, measures

2 of—

3 (A) student mastery of academic knowledge

4 and work readiness skills;

5 (B) student mastery of occupational and in6 dustry-recognized skills according to skill pro7 ficiencies for students in career preparation pro8 grams;

9 (C) placement in, retention in, and comple10 tion of secondary education (as determined

11 under State law) and postsecondary education,

12 and placement and retention in employment and

13 in military service; and

14 (D) mastery of the literacy, knowledge, and

15 skills adults need to be productive and respon16 sible citizens and to become more actively in17 volved in the education of their children.

18 (3) POPULATIONS.—To be eligible to receive an

19 allotment under section 102, a State shall develop, in

20 accordance with paragraph (5), and identify in the

21 State plan of the State, proposed quantifiable bench22 marks to measure progress toward meeting the goals

23 described in subsection (b) for populations including,

24 at a minimum—

25 (A) welfare recipients;
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1 (B) individuals with disabilities;

2 (C) at-risk youth;

3 (D) dislocated workers; and

4 (E) veterans.

5 (4) SPECIAL RULE.—If a State has developed for

6 all students in the State performance indicators, at7 tainment levels, or assessments for skills according to

8 challenging academic, occupational, or industry-rec9 ognized skill proficiencies, the State shall use such

10 performance indicators, attainment levels, or assess11 ments in measuring the progress of all students served

12 under this title in attaining the skills.

13 (5) NEGOTIATIONS.—

14 (A) INITIAL DETERMINATION.—On receipt

15 of a State plan submitted under section 104, the

16 Federal Partnership shall, not later than 30

17 days after the date of the receipt, determine—

18 (i) how the proposed State benchmarks

19 identified by the State in the State plan

20 compare to the model benchmarks estab21 lished by the Federal Partnership under sec22 tion 182(b)(2);

23 (ii) how the proposed State benchmarks

24 compare with State benchmarks proposed by

25 other States in their State plans; and
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1 (iii) whether the proposed State bench2 marks, taken as a whole, are sufficient—

3 (I) to enable the State to meet the

4 State goals; and

5 (II) to make the State eligible for

6 an incentive grant under section

7 122(a).

8 (B) NOTIFICATION.—The Federal Partner9 ship shall immediately notify the State of the de10 terminations referred to in subparagraph (A). If

11 the Federal Partnership determines that the pro12 posed State benchmarks are not sufficient to

13 make the State eligible for an incentive grant

14 under section 122(a), the Federal Partnership

15 shall provide the State with guidance on the

16 steps the State may take to allow the State to be17 come eligible for the grant.

18 (C) REVISION.—Not later than 30 days

19 after the date of receipt of the notification re20 ferred to in subparagraph (B), the State may re21 vise some or all of the State benchmarks identi22 fied in the State plan in order to become eligible

23 for the incentive grant or provide reasons why

24 the State benchmarks should be sufficient to

25 make the State eligible for the incentive grant.
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1 (D) DETERMINATION.—After reviewing any

2 revised State benchmarks or information submit3 ted by the State in accordance with subpara4 graph (C), the Federal Partnership shall make a

5 determination on the eligibility of the State for

6 the incentive grant, as described in paragraph

7 (6), and provide advice to the Secretary of Labor

8 and the Secretary of Education. The Secretary of

9 Labor and the Secretary of Education, acting

10 jointly on the advice of the Federal Partnership,

11 may award a grant to the State under section

12 122(a).

13 (6) INCENTIVE GRANTS.—Each State that sets

14 high benchmarks under paragraph (1), (2), or (3) and

15 reaches or exceeds the benchmarks, as determined by

16 the Federal Partnership, shall be eligible to receive an

17 incentive grant under section 122(a).

18 (7) SANCTIONS.—A State that has failed to dem19 onstrate sufficient progress toward reaching the State

20 benchmarks established under this subsection for the 3

21 years covered by a State plan described in section

22 104, as determined by the Federal Partnership, may

23 be subject to sanctions under section 122(b).

24 (d) JOB PLACEMENT ACCOUNTABILITY SYSTEM.—
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1 (1) IN GENERAL.—Each State that receives an

2 allotment under section 102 shall establish a job

3 placement accountability system, which will provide a

4 uniform set of data to track the progress of the State

5 toward reaching the State benchmarks.

6 (2) DATA.—

7 (A) IN GENERAL.—In order to maintain

8 data relating to the measures described in sub9 section (c)(1), each such State shall establish a

10 job placement accountability system using quar11 terly wage records available through the unem12 ployment insurance system. The State agency or

13 entity within the State responsible for labor

14 market and occupational information, as des15 ignated in section 183(c)(1)(B), in conjunction

16 with the Commissioner of Labor Statistics, shall

17 maintain the job placement accountability sys18 tem and match information on participants

19 served by the statewide systems of the State and

20 other States with quarterly employment and

21 earnings records.

22 (B) REIMBURSEMENT.—Each local entity

23 that carries out workforce employment activities

24 or workforce education activities and that re25 ceives funds under this title shall provide infor-
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1 mation regarding the social security numbers of

2 the participants served by the entity and such

3 other information as the State may require to

4 the State agency or entity within the State re5 sponsible for labor market and occupational in6 formation, as designated in section 183(c)(1)(B).

7 (C) CONFIDENTIALITY.—The State agency

8 or entity within the State responsible for labor

9 market and occupational information, as des10 ignated in section 183(c)(1)(B), shall protect the

11 confidentiality of information obtained through

12 the job placement accountability system through

13 the use of recognized security procedures.

14 (e) INDIVIDUAL ACCOUNTABILITY.—Each State that

15 receives an allotment under section 102 shall devise and im16 plement procedures to provide, in a timely manner, infor17 mation on participants in activities carried out through the

18 statewide system who are participating as a condition of

19 receiving welfare assistance. The procedures shall require

20 that the State provide the information to the State and local

21 agencies carrying out the programs through which the wel22 fare assistance is provided, in a manner that ensures that

23 the agencies can monitor compliance with the conditions

24 regarding the receipt of the welfare assistance.

25 (f) EVALUATION OF STATE PROGRAMS.—
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1 (1) IN GENERAL.—Each State that receives an

2 allotment under section 102 shall conduct ongoing

3 evaluations of workforce employment activities, flexi4 ble workforce activities, and activities provided

5 through Job Corps centers, carried out in the State

6 under this title.

7 (2) METHODS.—The State shall—

8 (A) conduct such evaluations through con9 trolled experiments using experimental and con10 trol groups chosen by random assignment;

11 (B) in conducting the evaluations, deter12 mine, at a minimum, whether job training and

13 job placement services provided through the ac14 tivities described in paragraph (1) effectively

15 raise the hourly wage rates of individuals receiv16 ing the services through such activities; and

17 (C) conduct at least 1 such evaluation at

18 any given time during any period in which the

19 State is receiving funding under this title for

20 such activities.

21 SEC. 122. INCENTIVES AND SANCTIONS.

22 (a) INCENTIVES.—

23 (1) IN GENERAL.—The Secretary of Labor and

24 the Secretary of Education, acting jointly on the ad25 vice of the Federal Partnership, may award incentive
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1 grants of not more than $15,000,000 per program

2 year to a State that—

3 (A) reaches or exceeds State benchmarks es4 tablished under section 121(c), with an emphasis

5 on the benchmarks established under section

6 121(c)(3), in accordance with section 121(c)(6);

7 (B) demonstrates to the Federal Partnership

8 that the State has made substantial reductions

9 in the number of adult recipients of assistance,

10 as defined in section 102(b)(1)(A), resulting from

11 increased placement of such adult recipients in

12 unsubsidized employment; or

13 (C) in the case of a State that elects to offer

14 activities for persons age 18 or older under sec15 tion 106(a)(6), uses the authority of section

16 106(a)(9) to deliver some or all of such activities

17 through a system of vouchers.

18 (2) USE OF FUNDS.—A State that receives such

19 a grant may use the funds made available through the

20 grant to carry out any workforce development activi21 ties authorized under this title.

22 (b) SANCTIONS.—

23 (1) FAILURE TO DEMONSTRATE SUFFICIENT

24 PROGRESS.—
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1 (A) FINDING.—If the Federal Partnership

2 determines, after notice and an opportunity for

3 a hearing, that a State has failed to demonstrate

4 sufficient progress toward reaching the State

5 benchmarks established under section 121(c) for

6 the 3 years covered by a State plan described in

7 section 104, the Federal Partnership shall—

8 (i) make a finding regarding whether

9 the failure is attributable to the workforce

10 employment activities, or workforce edu11 cation activities, of the State; and

12 (ii) provide advice to the Secretary of

13 Labor and the Secretary of Education.

14 (B) REDUCTIONS.—

15 (i) FAILURE ATTRIBUTABLE TO BOTH

16 CATEGORIES.—Except as provided in sub17 paragraph (C), if the Federal Partnership

18 finds that the failure referred to in subpara19 graph (A) is attributable to both categories

20 referred to in subparagraph (A)(i), the Sec21 retary of Labor and the Secretary of Edu22 cation, acting jointly on the advice of the

23 Federal Partnership, may reduce the allot24 ment of the State under section 102 by not
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1 more than 10 percent per program year for

2 not more than 3 years.

3 (ii) FAILURE ATTRIBUTABLE TO ONE

4 CATEGORY.—Unless the Governor of the

5 State has developed an integrated State

6 plan under section 104(b)(5), if the Federal

7 Partnership finds that the failure referred

8 to in subparagraph (A) is attributable to 1

9 category of activities referred to in subpara10 graph (A)(i) but not to the remaining cat11 egory, the Secretary of Labor and the Sec12 retary of Education, acting jointly on the

13 advice of the Federal Partnership, may de14 cide to reduce by 10 percent only the por15 tion of the allotment for the category of ac16 tivities to which the failure is attributable.

17 (C) COMBINATION AND REDUCTION.—Not18 withstanding sections 103 and 111, if the Fed19 eral Partnership finds that the Governor of the

20 State has developed an integrated State plan

21 under section 104(b)(5), and the failure referred

22 to in subparagraph (A) is attributable to 1 cat23 egory of activities referred to in subparagraph

24 (A)(i) but not to the remaining category, the

25 Secretary of Labor and the Secretary of Edu-
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1 cation, acting jointly on the advice of the Fed2 eral Partnership, in lieu of making a reduction

3 under subparagraph (B), shall—

4 (i) reduce the portion of the allotment

5 for the category of activities to which the

6 failure is attributable by a percentage deter7 mined by the Secretaries, but not to exceed

8 5 percent of such portion, for a period de9 termined by the Secretaries;

10 (ii) require the State to combine, for

11 such period—

12 (I) an additional percentage,

13 equal to the percentage determined

14 under clause (i), of the funds made

15 available through such portion; and

16 (II) the funds made available to

17 the State under this subtitle for the re18 maining category; and

19 (iii) require the State to expend the

20 combined funds in accordance with the inte21 grated State plan of the State referred to in

22 section 104(b)(5) to carry out the remaining

23 category of activities.

24 (D) CONSTRUCTION.—Notwithstanding any

25 other provision of this title, funds referred to in
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1 subparagraph (C)(ii)(I) that are combined under

2 subparagraph (C) shall be considered—

3 (i) to be made available under section

4 103(a)(1) if the combined funds are re5 quired to be expended for workforce employ6 ment activities; and

7 (ii) to be made available under section

8 103(a)(2) if the combined funds are re9 quired to be expended for workforce edu10 cation activities.

11 (E) DEFINITION.—As used in this para12 graph, the term ‘‘portion of the allotment’’—

13 (i) used with respect to workforce em14 ployment activities, means the funds made

15 available under paragraph (1) or (3) of sec16 tion 103(a) for workforce employment ac17 tivities (less any portion of such funds made

18 available under section 6 of the Wagner19 Peyser Act (29 U.S.C. 49e)); and

20 (ii) used with respect to workforce edu21 cation activities, means the funds made

22 available under paragraph (2) or (3) of sec23 tion 103(a) for workforce education activi24 ties.
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1 (2) EXPENDITURE CONTRARY TO TITLE.—If the

2 Governor of a State determines that a local entity

3 that carries out workforce employment activities in a

4 substate area of the State has expended funds made

5 available under this title in a manner contrary to the

6 objectives of this title, and such expenditures do not

7 constitute fraudulent activity, the Governor may de8 duct an amount equal to the funds from a subsequent

9 program year allocation to the substate area.

10 (c) FUNDS RESULTING FROM REDUCED ALLOT11 MENTS.—The Secretary of Labor and the Secretary of Edu12 cation, acting jointly on the advice of the Federal Partner13 ship, may use an amount retained as a result of a reduction

14 in an allotment made under subsection (b)(1) to award an

15 incentive grant under subsection (a).

16 SEC. 123. UNEMPLOYMENT TRUST FUND.

17 (a) IN GENERAL.—Section 901(c) of the Social Secu18 rity Act (42 U.S.C. 1101(c)) is amended—

19 (1) in paragraph (1)—

20 (A) in subparagraph (A)(iii), by striking

21 ‘‘carrying into effect section 4103’’ and inserting

22 ‘‘carrying out the activities described in sections

23 4103, 4103A, 4104, and 4104A’’; and

24 (B) in subparagraph (B), in the matter pre25 ceding clause (i), by striking ‘‘Department of
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1 Labor’’ and inserting ‘‘Department of Labor or

2 the Workforce Development Partnership, as ap3 propriate,’’; and

4 (2) in the first sentence of paragraph (4), by

5 striking ‘‘the Department of Labor’’ and inserting

6 ‘‘the Workforce Development Partnership’’.

7 (b) EFFECTIVE DATE.—The amendments made by this

8 section shall take effect July 1, 1998.

9 SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

10 (a) IN GENERAL.—There are authorized to be appro11 priated to carry out this title (other than subtitle B)

12 $5,884,000,000 (which amount shall include the Federal

13 funds made available to carry out the Wagner-Peyser Act

14 (29 U.S.C. 49 et seq.)) for each of fiscal years 1998 through

15 2001.

16 (b) RESERVATIONS.—Of the amount appropriated

17 under subsection (a)—

18 (1) 90.75 percent shall be reserved for making al19 lotments under section 102;

20 (2) 1.25 percent shall be reserved for carrying

21 out section 107;

22 (3) 1.25 percent shall be reserved for carrying

23 out section 108;

24 (4) 0.2 percent shall be reserved for carrying out

25 section 109;
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1 (5) 5.0 percent shall be reserved for making in2 centive grants under section 122(a), for making na3 tional discretionary grants under section 184, and for

4 the administration of this title;

5 (6) 1.4 percent shall be reserved for carrying out

6 section 183; and

7 (7) 0.15 percent shall be reserved for carrying

8 out sections 185 and 186 and the National Literacy

9 Act of 1991 (20 U.S.C. 1201 note).

10 (c) PROGRAM YEAR.—

11 (1) IN GENERAL.—Appropriations for any fiscal

12 year for programs and activities under this title shall

13 be available for obligation only on the basis of a pro14 gram year. The program year shall begin on July 1

15 in the fiscal year for which the appropriation is

16 made.

17 (2) ADMINISTRATION.—Funds obligated for any

18 program year may be expended by each recipient dur19 ing the program year and the 2 succeeding program

20 years and no amount shall be deobligated on account

21 of a rate of expenditure that is consistent with the

22 provisions of the State plan specified in section 104

23 that relate to workforce employment activities.

24 SEC. 125. EFFECTIVE DATE.

25 This subtitle shall take effect July 1, 1998.
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1 Subtitle B—Job Corps and Other

2 Workforce Preparation Activities

3 for At-Risk Youth

4 CHAPTER 1—GENERAL PROVISIONS

5 SEC. 131. DEFINITIONS.

6 As used in this subtitle:

7 (1) AT-RISK YOUTH.—The term ‘‘at-risk youth’’

8 means an individual who—

9 (A) is not less than age 15 and not more

10 than age 24;

11 (B) is low-income (as defined in section

12 113(e));

13 (C) is 1 or more of the following:

14 (i) Basic skills deficient.

15 (ii) A school dropout.

16 (iii) Homeless or a runaway.

17 (iv) Pregnant or parenting.

18 (v) An individual who requires addi19 tional education, training, or intensive

20 counseling and related assistance, in order

21 to secure and hold employment or partici22 pate successfully in regular schoolwork.

23 (2) ENROLLEE.—The term ‘‘enrollee’’ means an

24 individual enrolled in the Job Corps.
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1 (3) GOVERNOR.—The term ‘‘Governor’’ means

2 the chief executive officer of a State.

3 (4) JOB CORPS.—The term ‘‘Job Corps’’ means

4 the Job Corps described in section 142.

5 (5) JOB CORPS CENTER.—The term ‘‘Job Corps

6 center’’ means a center described in section 142.

7 (6) OPERATOR.—The term ‘‘operator’’ means an

8 entity selected under this chapter to operate a Job

9 Corps center.

10 (7) SECRETARY.—The term ‘‘Secretary’’ means

11 the Secretary of Labor.

12 CHAPTER 2—JOB CORPS

13 SEC. 141. PURPOSES.

14 The purposes of this chapter are—

15 (1) to maintain a national Job Corps program,

16 carried out in partnership with States and commu17 nities, to assist at-risk youth who need and can bene18 fit from an unusually intensive program, operated in

19 a group setting, to become more responsible, employ20 able, and productive citizens;

21 (2) to set forth standards and procedures for se22 lecting individuals as enrollees in the Job Corps;

23 (3) to authorize the establishment of Job Corps

24 centers in which enrollees will participate in inten-
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1 sive programs of workforce development activities;

2 and

3 (4) to prescribe various other powers, duties, and

4 responsibilities incident to the operation and continu5 ing development of the Job Corps.

6 SEC. 142. ESTABLISHMENT.

7 There shall be established in the Department of Labor

8 a Job Corps program, to carry out, in conjunction with

9 the activities carried out by the National Board as specified

10 in section 156, activities described in this chapter for indi11 viduals enrolled in the Job Corps and assigned to a center.

12 SEC. 143. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

13 To be eligible to become an enrollee, an individual

14 shall be an at-risk youth.

15 SEC. 144. SCREENING AND SELECTION OF APPLICANTS.

16 (a) STANDARDS AND PROCEDURES.—

17 (1) IN GENERAL.—The Secretary shall prescribe

18 specific standards and procedures for the screening

19 and selection of applicants for the Job Corps, after

20 considering recommendations from the Governors,

21 State workforce development boards established under

22 section 105, local partnerships and local workforce de23 velopment boards established under section 118(b),

24 and other interested parties.
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1 (2) METHODS.—In prescribing standards and

2 procedures under paragraph (1) for the screening and

3 selection of Job Corps applicants, the Secretary

4 shall—

5 (A) require enrollees to take drug tests with6 in 30 days of enrollment in the Job Corps;

7 (B) allocate, where necessary, additional re8 sources to increase the applicant pool;

9 (C) establish standards for outreach to and

10 screening of Job Corps applicants;

11 (D) where appropriate, take measures to

12 improve the professional capability of the indi13 viduals conducting such screening; and

14 (E) require Job Corps applicants to pass

15 background checks, conducted in accordance with

16 procedures established by the Secretary.

17 (3) IMPLEMENTATION.—To the extent prac18 ticable, the standards and procedures shall be imple19 mented through arrangements with—

20 (A) centers providing the one-stop delivery

21 of core services described in section 106(a)(2);

22 (B) agencies and organizations such as

23 community action agencies, professional groups,

24 and labor organizations; and
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1 (C) agencies and individuals that have con2 tact with youth over substantial periods of time

3 and are able to offer reliable information about

4 the needs and problems of the youth.

5 (4) CONSULTATION.—The standards and proce6 dures shall provide for necessary consultation with in7 dividuals and organizations, including court, proba8 tion, parole, law enforcement, education, welfare, and

9 medical authorities and advisers.

10 (b) SPECIAL LIMITATIONS.—No individual shall be se11 lected as an enrollee unless the individual or organization

12 implementing the standards and procedures determines

13 that—

14 (1) there is a reasonable expectation that the in15 dividual considered for selection can participate suc16 cessfully in group situations and activities, is not

17 likely to engage in behavior that would prevent other

18 enrollees from receiving the benefit of the program or

19 be incompatible with the maintenance of sound dis20 cipline and satisfactory relationships between the Job

21 Corps center to which the individual might be as22 signed and surrounding communities; and

23 (2) the individual manifests a basic understand24 ing of both the rules to which the individual will be
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1 subject and of the consequences of failure to observe

2 the rules.

3 SEC. 145. ENROLLMENT AND ASSIGNMENT.

4 (a) RELATIONSHIP BETWEEN ENROLLMENT AND MILI5 TARY OBLIGATIONS.—Enrollment in the Job Corps shall

6 not relieve any individual of obligations under the Military

7 Selective Service Act (50 U.S.C. App. 451 et seq.).

8 (b) ASSIGNMENT.—After the Secretary has determined

9 that an enrollee is to be assigned to a Job Corps center,

10 the enrollee shall be assigned to the center that is closest

11 to the residence of the enrollee, except that the Secretary

12 may waive this requirement for good cause, including to

13 ensure an equitable opportunity for at-risk youth from var14 ious sections of the Nation to participate in the Job Corps

15 program, to prevent undue delays in assignment of an en16 rollee, to adequately meet the educational or other needs of

17 an enrollee, and for efficiency and economy in the operation

18 of the program.

19 (c) PERIOD OF ENROLLMENT.—No individual may be

20 enrolled in the Job Corps for more than 2 years, except—

21 (1) in a case in which completion of an ad22 vanced career training program under section 147(d)

23 would require an individual to participate for more

24 than 2 years; or
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1 (2) as the Secretary may authorize in a special

2 case.

3 SEC. 146. JOB CORPS CENTERS.

4 (a) OPERATORS AND SERVICE PROVIDERS.—

5 (1) ELIGIBLE ENTITIES.—The Secretary shall

6 enter into an agreement with a Federal, State, or

7 local agency, which may be a State board or agency

8 that operates or wishes to develop an area vocational

9 education school facility or residential vocational

10 school, or with a private organization, for the oper11 ation of each Job Corps center. The Secretary shall

12 enter into an agreement with an appropriate entity

13 to provide services for a Job Corps center.

14 (2) SELECTION PROCESS.—Except as provided

15 in subsections (c) and (d), the Secretary shall select

16 an entity to operate a Job Corps center on a competi17 tive basis, after reviewing the operating plans de18 scribed in section 149. In selecting a private or public

19 entity to serve as an operator for a Job Corps Center,

20 the Secretary shall, at the request of the Governor of

21 the State in which the center is located, convene and

22 obtain the recommendation of a selection panel de23 scribed in section 151(b). In selecting an entity to

24 serve as an operator or to provide services for a Job

25 Corps center, the Secretary shall take into consider-
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1 ation the previous performance of the entity, if any,

2 relating to operating or providing services for a Job

3 Corps center.

4 (b) CHARACTER AND ACTIVITIES.—Job Corps centers

5 may be residential or nonresidential in character, and shall

6 be designed and operated so as to provide enrollees, in a

7 well-supervised setting, with access to activities described

8 in section 147. In any year, no more than 20 percent of

9 the individuals enrolled in the Job Corps may be

10 nonresidential participants in the Job Corps.

11 (c) CIVILIAN CONSERVATION CENTERS.—

12 (1) IN GENERAL.—The Job Corps centers may

13 include Civilian Conservation Centers operated under

14 agreements with the Secretary of Agriculture or the

15 Secretary of the Interior, located primarily in rural

16 areas, which shall provide, in addition to other train17 ing and assistance, programs of work experience to

18 conserve, develop, or manage public natural resources

19 or public recreational areas or to develop community

20 projects in the public interest.

21 (2) SELECTION PROCESS.—The Secretary may

22 select an entity to operate a Civilian Conservation

23 Center on a competitive basis, as provided in sub24 section (a), if the center fails to meet such national
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1 performance standards as the Secretary shall estab2 lish.

3 (d) INDIAN TRIBES.—

4 (1) DEFINITION.—As used in this subsection:

5 (A) INDIAN.— The term ‘‘Indian’’ means a

6 person who is a member of an Indian tribe.

7 (B) INDIAN TRIBE.—The term ‘‘Indian

8 tribe’’ means any Indian tribe, band, nation, or

9 other organized group or community, which is

10 recognized as eligible for the special programs

11 and services provided by the United States to In12 dians because of their status as Indians.

13 (2) GENERAL AUTHORITY.—The Secretary may

14 enter into agreements with Indian tribes to operate

15 Job Corps centers for Indians.

16 SEC. 147. PROGRAM ACTIVITIES.

17 (a) ACTIVITIES PROVIDED THROUGH JOB CORPS CEN18 TERS.—Each Job Corps center shall provide enrollees as19 signed to the center with access to activities described in

20 section 106(a)(2)(B), and such other workforce development

21 activities as may be appropriate to meet the needs of the

22 enrollees, including providing work-based learning through23 out the enrollment of the enrollees and assisting the enrollees

24 in obtaining meaningful unsubsidized employment, partici25 pating successfully in secondary education or postsecondary
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1 education programs, enrolling in other suitable training

2 programs, or satisfying Armed Forces requirements, on

3 completion of their enrollment.

4 (b) ARRANGEMENTS.—The Secretary shall arrange for

5 enrollees assigned to Job Corps centers to receive workforce

6 development activities through or in coordination with the

7 statewide system, including workforce development activi8 ties provided through local public or private educational

9 agencies, vocational educational institutions, or technical

10 institutes.

11 (c) JOB PLACEMENT ACCOUNTABILITY.—The Sec12 retary shall establish a job placement accountability system

13 for Job Corps centers, and coordinate the activities carried

14 out through the system with activities carried out through

15 the job placement accountability systems described in sec16 tion 121(d) for the States in which Job Corps centers are

17 located.

18 (d) ADVANCED CAREER TRAINING PROGRAMS.—

19 (1) IN GENERAL.—The Secretary may arrange

20 for programs of advanced career training for selected

21 enrollees in which the enrollees may continue to par22 ticipate for a period of not to exceed 1 year in addi23 tion to the period of participation to which the enroll24 ees would otherwise be limited.
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1 (2) POSTSECONDARY EDUCATIONAL INSTITU2 TIONS.—The advanced career training may be pro3 vided through a postsecondary educational institution

4 for an enrollee who has obtained a secondary school

5 diploma or its recognized equivalent, has dem6 onstrated commitment and capacity in previous Job

7 Corps participation, and has an identified occupa8 tional goal.

9 (3) COMPANY-SPONSORED TRAINING PRO10 GRAMS.—The Secretary may enter into contracts with

11 appropriate entities to provide the advanced career

12 training through intensive training in company-spon13 sored training programs, combined with internships

14 in work settings.

15 (4) BENEFITS.—

16 (A) IN GENERAL.—During the period of

17 participation in an advanced career training

18 program, an enrollee shall be eligible for full Job

19 Corps benefits, or a monthly stipend equal to the

20 average value of the residential support, food, al21 lowances, and other benefits provided to enrollees

22 assigned to residential Job Corps centers.

23 (B) CALCULATION.—The total amount for

24 which an enrollee shall be eligible under sub25 paragraph (A) shall be reduced by the amount of
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1 any scholarship or other educational grant as2 sistance received by such enrollee for advanced

3 career training.

4 (5) DEMONSTRATION.—Each year, any operator

5 seeking to enroll additional enrollees in an advanced

6 career training program shall demonstrate that par7 ticipants in such program have achieved a reasonable

8 rate of completion and placement in training-related

9 jobs before the operator may carry out such addi10 tional enrollment.

11 SEC. 148. SUPPORT.

12 The Secretary shall provide enrollees assigned to Job

13 Corps centers with such personal allowances, including re14 adjustment allowances, as the Secretary may determine to

15 be necessary or appropriate to meet the needs of the enroll16 ees.

17 SEC. 149. OPERATING PLAN.

18 (a) IN GENERAL.—To be eligible to operate a Job

19 Corps center, an entity shall prepare and submit an operat20 ing plan to the Secretary for approval. Prior to submitting

21 the plan to the Secretary, the entity shall submit the plan

22 to the Governor of the State in which the center is located

23 for review and comment. The entity shall submit any com24 ments prepared by the Governor on the plan to the Sec-
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1 retary with the plan. Such plan shall include, at a mini2 mum, information indicating—

3 (1) in quantifiable terms, the extent to which the

4 center will contribute to the achievement of the pro5 posed State goals and State benchmarks identified in

6 the State plan submitted under section 104 for the

7 State in which the center is located;

8 (2) the extent to which workforce employment ac9 tivities and workforce education activities delivered

10 through the Job Corps center are directly linked to the

11 workforce development needs of the region in which

12 the center is located;

13 (3) an implementation strategy to ensure that all

14 enrollees assigned to the Job Corps center will have

15 access to services through the one-stop delivery of core

16 services described in section 106(a)(2) by the State;

17 and

18 (4) an implementation strategy to ensure that

19 the curricula of all such enrollees is integrated into

20 the school-to-work activities of the State, including

21 work-based learning, work experience, and career22 building activities, and that such enrollees have the

23 opportunity to obtain secondary school diplomas or

24 their recognized equivalent.
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1 (b) APPROVAL.—The Secretary shall not approve an

2 operating plan described in subsection (a) for a center if

3 the Secretary determines that the activities proposed to be

4 carried out through the center are not sufficiently integrated

5 with the activities carried out through the statewide system

6 of the State in which the center is located.

7 SEC. 150. STANDARDS OF CONDUCT.

8 (a) PROVISION AND ENFORCEMENT.—The Secretary

9 shall provide, and directors of Job Corps center shall strin10 gently enforce, standards of conduct within the centers.

11 Such standards of conduct shall include provisions forbid12 ding the actions described in subsection (b)(2)(A).

13 (b) DISCIPLINARY MEASURES.—

14 (1) IN GENERAL.—To promote the proper moral

15 and disciplinary conditions in the Job Corps, the di16 rectors of Job Corps centers shall take appropriate

17 disciplinary measures against enrollees. If such a di18 rector determines that an enrollee has committed a

19 violation of the standards of conduct, the director

20 shall dismiss the enrollee from the Job Corps if the di21 rector determines that the retention of the enrollee in

22 the Job Corps will jeopardize the enforcement of such

23 standards or diminish the opportunities of other en24 rollees.

25 (2) ZERO TOLERANCE POLICY.—
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1 (A) GUIDELINES.—The Secretary shall

2 adopt guidelines establishing a zero tolerance

3 policy for an act of violence, for use, sale, or pos4 session of a controlled substance, for abuse of al5 cohol, or for other illegal or disruptive activity.

6 (B) DEFINITIONS.—As used in this para7 graph:

8 (i) CONTROLLED SUBSTANCE.—The

9 term ‘‘controlled substance’’ has the mean10 ing given the term in section 102 of the

11 Controlled Substances Act (21 U.S.C. 802).

12 (ii) ZERO TOLERANCE POLICY.—The

13 term ‘‘zero tolerance policy’’ means a policy

14 under which an enrollee shall be automati15 cally dismissed from the Job Corps after a

16 determination by the director that the en17 rollee has carried out an action described in

18 subparagraph (A).

19 (c) APPEAL.—A disciplinary measure taken by a di20 rector under this section shall be subject to expeditious ap21 peal in accordance with procedures established by the Sec22 retary.

23 SEC. 151. COMMUNITY PARTICIPATION.

24 (a) ACTIVITIES.—The Secretary shall encourage and

25 cooperate in activities to establish a mutually beneficial re-
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1 lationship between Job Corps centers in the State and near2 by communities. The activities shall include the use of any

3 local partnerships or local workforce development boards es4 tablished in the State under section 118(b) to provide a

5 mechanism for joint discussion of common problems and

6 for planning programs of mutual interest.

7 (b) SELECTION PANELS.—The Governor may rec8 ommend individuals to serve on a selection panel convened

9 by the Secretary to provide recommendations to the Sec10 retary regarding any competitive selection of an operator

11 for a center in the State. The panel shall have not more

12 than 7 members. In recommending individuals to serve on

13 the panel, the Governor may recommend members of State

14 workforce development boards established under section 105,

15 if any, members of any local partnerships or local workforce

16 development boards established in the State under section

17 118(b), or other representatives selected by the Governor.

18 The Secretary shall select at least 1 individual rec19 ommended by the Governor.

20 (c) ACTIVITIES.—Each Job Corps center director

21 shall—

22 (1) give officials of nearby communities appro23 priate advance notice of changes in the rules, proce24 dures, or activities of the Job Corps center that may

25 affect or be of interest to the communities;
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1 (2) afford the communities a meaningful voice in

2 the affairs of the Job Corps center that are of direct

3 concern to the communities, including policies govern4 ing the issuance and terms of passes to enrollees; and

5 (3) encourage the participation of enrollees in

6 programs for improvement of the communities, with

7 appropriate advance consultation with business,

8 labor, professional, and other interested groups, in the

9 communities.

10 SEC. 152. COUNSELING AND PLACEMENT.

11 The Secretary shall ensure that enrollees assigned to

12 Job Corps centers receive academic and vocational counsel13 ing and job placement services, which shall be provided, to

14 the maximum extent practicable, through the delivery of

15 core services described in section 106(a)(2).

16 SEC. 153. ADVISORY COMMITTEES.

17 The Secretary is authorized to make use of advisory

18 committees in connection with the operation of the Job

19 Corps program, and the operation of Job Corps centers,

20 whenever the Secretary determines that the availability of

21 outside advice and counsel on a regular basis would be of

22 substantial benefit in identifying and overcoming problems,

23 in planning program or center development, or in strength24 ening relationships between the Job Corps and agencies, in25 stitutions, or groups engaged in related activities.
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1 SEC. 154. APPLICATION OF PROVISIONS OF FEDERAL LAW.

2 (a) ENROLLEES NOT CONSIDERED TO BE FEDERAL

3 EMPLOYEES.—

4 (1) IN GENERAL.—Except as otherwise provided

5 in this subsection and in section 8143(a) of title 5,

6 United States Code, enrollees shall not be considered

7 to be Federal employees and shall not be subject to the

8 provisions of law relating to Federal employment, in9 cluding such provisions regarding hours of work, rates

10 of compensation, leave, unemployment compensation,

11 and Federal employee benefits.

12 (2) PROVISIONS RELATING TO TAXES AND SOCIAL

13 SECURITY BENEFITS.—For purposes of the Internal

14 Revenue Code of 1986 and title II of the Social Secu15 rity Act (42 U.S.C. 401 et seq.), enrollees shall be

16 deemed to be employees of the United States and any

17 service performed by an individual as an enrollee

18 shall be deemed to be performed in the employ of the

19 United States.

20 (3) PROVISIONS RELATING TO COMPENSATION TO

21 FEDERAL EMPLOYEES FOR WORK INJURIES.—For

22 purposes of subchapter I of chapter 81 of title 5, Unit23 ed States Code (relating to compensation to Federal

24 employees for work injuries), enrollees shall be deemed

25 to be civil employees of the Government of the United

26 States within the meaning of the term ‘‘employee’’ as
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1 defined in section 8101 of title 5, United States Code,

2 and the provisions of such subchapter shall apply as

3 specified in section 8143(a) of title 5, United States

4 Code.

5 (4) FEDERAL TORT CLAIMS PROVISIONS.—For

6 purposes of the Federal tort claims provisions in title

7 28, United States Code, enrollees shall be considered

8 to be employees of the Government.

9 (b) ADJUSTMENTS AND SETTLEMENTS.—Whenever the

10 Secretary finds a claim for damages to a person or property

11 resulting from the operation of the Job Corps to be a proper

12 charge against the United States, and the claim is not cog13 nizable under section 2672 of title 28, United States Code,

14 the Secretary may adjust and settle the claim in an amount

15 not exceeding $1,500.

16 (c) PERSONNEL OF THE UNIFORMED SERVICES.—Per17 sonnel of the uniformed services who are detailed or as18 signed to duty in the performance of agreements made by

19 the Secretary for the support of the Job Corps shall not be

20 counted in computing strength under any law limiting the

21 strength of such services or in computing the percentage au22 thorized by law for any grade in such services.

23 SEC. 155. SPECIAL PROVISIONS.

24 (a) ENROLLMENT OF WOMEN.—The Secretary shall

25 immediately take steps to achieve an enrollment of 50 per-
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1 cent women in the Job Corps program, consistent with the

2 need to—

3 (1) promote efficiency and economy in the oper4 ation of the program;

5 (2) promote sound administrative practice; and

6 (3) meet the socioeconomic, educational, and

7 training needs of the population to be served by the

8 program.

9 (b) STUDIES, EVALUATIONS, PROPOSALS, AND

10 DATA.—The Secretary shall assure that all studies, evalua11 tions, proposals, and data produced or developed with Fed12 eral funds in the course of carrying out the Job Corps pro13 gram shall become the property of the United States.

14 (c) GROSS RECEIPTS.—Transactions conducted by a

15 private for-profit contractor or a nonprofit contractor in

16 connection with the operation by the contractor of a Job

17 Corps center or the provision of services by the contractor

18 for a Job Corps center shall not be considered to be generat19 ing gross receipts. Such a contractor shall not be liable, di20 rectly or indirectly, to any State or subdivision of a State

21 (nor to any person acting on behalf of such a State or sub22 division) for any gross receipts taxes, business privilege

23 taxes measured by gross receipts, or any similar taxes im24 posed on, or measured by, gross receipts in connection with

25 any payments made to or by such contractor for operating
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1 or providing services for a Job Corps center. Such a con2 tractor shall not be liable to any State or subdivision of

3 a State to collect or pay any sales, excise, use, or similar

4 tax imposed on the sale to or use by such contractor of any

5 property, service, or other item in connection with the oper6 ation of or provision of services for a Job Corps center.

7 (d) MANAGEMENT FEE.—The Secretary shall provide

8 each operator or entity providing services for a Job Corps

9 center with an equitable and negotiated management fee of

10 not less than 1 percent of the contract amount.

11 (e) DONATIONS.—The Secretary may accept on behalf

12 of the Job Corps or individual Job Corps centers charitable

13 donations of cash or other assistance, including equipment

14 and materials, if such donations are available for appro15 priate use for the purposes set forth in this chapter.

16 SEC. 156. REVIEW OF JOB CORPS CENTERS.

17 (a) NATIONAL JOB CORPS REVIEW.—Not later than

18 March 31, 1997, the National Board shall conduct a review

19 of the activities carried out under part B of title IV of the

20 Job Training Partnership Act (29 U.S.C. 1691 et seq.), and

21 submit to the appropriate committees of Congress a report

22 containing the results of the review, including—

23 (1) information on the amount of funds expended

24 for fiscal year 1996 to carry out activities under such

25 part, for each State and for the United States;
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1 (2) for each Job Corps center funded under such

2 part, information on the amount of funds expended

3 for fiscal year 1996 under such part to carry out ac4 tivities related to the direct operation of the center,

5 including funds expended for student training, out6 reach or intake activities, meals and lodging, student

7 allowances, medical care, placement or settlement ac8 tivities, and administration;

9 (3) for each Job Corps center, information on the

10 amount of funds expended for fiscal year 1996 under

11 such part through contracts to carry out activities not

12 related to the direct operation of the center, including

13 funds expended for student travel, national outreach,

14 screening, and placement services, national vocational

15 training, and national and regional administrative

16 costs;

17 (4) for each Job Corps center, information on the

18 amount of funds expended for fiscal year 1996 under

19 such part for facility construction, rehabilitation, and

20 acquisition expenses;

21 (5) information on the amount of funds required

22 to be expended under such part to complete each new

23 or proposed Job Corps center, and to rehabilitate and

24 repair each existing Job Corps center, as of the date

25 of the submission of the report;
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1 (6) a summary of the information described in

2 paragraphs (2) through (5) for all Job Corps centers;

3 (7) an assessment of the need to serve at-risk

4 youth in the Job Corps program, including—

5 (A) a cost-benefit analysis of the residential

6 component of the Job Corps program;

7 (B) the need for residential education and

8 training services for at-risk youth, analyzed for

9 each State and for the United States; and

10 (C) the distribution of training positions in

11 the Job Corps program, as compared to the need

12 for the services described in subparagraph (B),

13 analyzed for each State;

14 (8) an overview of the Job Corps program as a

15 whole and an analysis of individual Job Corps cen16 ters, including a 5-year performance measurement

17 summary that includes information, analyzed for the

18 program and for each Job Corps center, on—

19 (A) the number of enrollees served;

20 (B) the number of former enrollees who en21 tered employment, including the number of

22 former enrollees placed in a position related to

23 the job training received through the program

24 and the number placed in a position not related

25 to the job training received;
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1 (C) the number of former enrollees placed in

2 jobs for 32 hours per week or more;

3 (D) the number of former enrollees who en4 tered employment and were retained in the em5 ployment for more than 13 weeks;

6 (E) the number of former enrollees who en7 tered the Armed Forces;

8 (F) the number of former enrollees who com9 pleted vocational training, and the rate of such

10 completion, analyzed by vocation;

11 (G) the number of former enrollees who en12 tered postsecondary education;

13 (H) the number and percentage of early

14 dropouts from the Job Corps program;

15 (I) the average wage of former enrollees, in16 cluding wages from positions described in sub17 paragraph (B);

18 (J) the number of former enrollees who ob19 tained a secondary school diploma or its recog20 nized equivalent;

21 (K) the average level of learning gains for

22 former enrollees; and

23 (L) the number of former enrollees that did

24 not—
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1 (i) enter employment or postsecondary

2 education;

3 (ii) complete a vocational education

4 program; or

5 (iii) make identifiable learning gains;

6 (9) information regarding the performance of all

7 existing Job Corps centers over the 3 years preceding

8 the date of submission of the report; and

9 (10) job placement rates for each Job Corps cen10 ter and each entity providing services to a Job Corps

11 center.

12 (b) RECOMMENDATIONS OF NATIONAL BOARD.—

13 (1) RECOMMENDATIONS.—The National Board

14 shall, based on the results of the review described in

15 subsection (a), make recommendations to the Sec16 retary of Labor, regarding improvements in the oper17 ation of the Job Corps program, including—

18 (A) closing 5 Job Corps centers by Septem19 ber 30, 1997, and 5 additional Job Corps centers

20 by September 30, 2000;

21 (B) relocating Job Corps centers described

22 in paragraph (2)(A)(iii) in cases in which facil23 ity rehabilitation, renovation, or repair is not

24 cost-effective; and
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1 (C) taking any other action that would im2 prove the operation of a Job Corps center or any

3 other appropriate action.

4 (2) CONSIDERATIONS.—

5 (A) IN GENERAL.—In determining whether

6 to recommend that the Secretary of Labor close

7 a Job Corps center, the National Board shall

8 consider whether the center—

9 (i) has consistently received low per10 formance measurement ratings under the

11 Department of Labor or the Office of In12 spector General Job Corps rating system;

13 (ii) is among the centers that have ex14 perienced the highest number of serious in15 cidents of violence or criminal activity in

16 the past 5 years;

17 (iii) is among the centers that require

18 the largest funding for renovation or repair,

19 as specified in the Department of Labor Job

20 Corps Construction/Rehabilitation Funding

21 Needs Survey, or for rehabilitation or re22 pair, as reflected in the portion of the re23 view described in subsection (a)(5);

24 (iv) is among the centers for which the

25 highest relative or absolute fiscal year 1996
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1 expenditures were made, for any of the cat2 egories of expenditures described in para3 graph (2), (3), or (4) of subsection (a), as

4 reflected in the review described in sub5 section (a);

6 (v) is among the centers with the least

7 State and local support; or

8 (vi) is among the centers with the low9 est rating on such additional criteria as the

10 National Board may determine to be appro11 priate.

12 (B) COVERAGE OF STATES AND REGIONS.—

13 Notwithstanding subparagraph (A), the National

14 Board shall not recommend that the Secretary of

15 Labor close the only Job Corps center in a State

16 or a region of the United States.

17 (C) ALLOWANCE FOR NEW JOB CORPS CEN18 TERS.—Notwithstanding any other provision of

19 this section, if the planning or construction of a

20 Job Corps center that received Federal funding

21 for fiscal year 1994 or 1995 has not been com22 pleted by the date of enactment of this Act—

23 (i) the appropriate entity may com24 plete the planning or construction and

25 begin operation of the center; and
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1 (ii) the National Board shall not

2 evaluate the center under this title sooner

3 than 3 years after the first date of operation

4 of the center.

5 (3) REPORT.—Not later than June 30, 1997, the

6 National Board shall submit a report to the Secretary

7 of Labor, which shall contain a detailed statement of

8 the findings and conclusions of the National Board

9 resulting from the review described in subsection (a)

10 together with the recommendations described in para11 graph (1).

12 (c) IMPLEMENTATION OF PERFORMANCE IMPROVE13 MENTS.—The Secretary shall, after reviewing the report

14 submitted under subsection (b)(3), implement improve15 ments in the operation of the Job Corps program, including

16 closing 10 individual Job Corps centers pursuant to sub17 section (b). In implementing such improvements, the Sec18 retary may close such additional Job Corps centers as the

19 Secretary determines to be appropriate. Funds saved

20 through the implementation of such improvements shall be

21 used to maintain overall Job Corps program service levels,

22 improve facilities at existing Job Corps centers, relocate Job

23 Corps centers, initiate new Job Corps centers, and make

24 other performance improvements in the Job Corps program.
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1 (d) REPORT TO CONGRESS.—The Secretary shall an2 nually report to Congress the information specified in para3 graphs (8), (9), and (10) of subsection (a) and such addi4 tional information relating to the Job Corps program as

5 the Secretary may determine to be appropriate.

6 SEC. 157. ADMINISTRATION.

7 The Secretary shall carry out the responsibilities speci8 fied for the Secretary in this chapter, notwithstanding any

9 other provision of this title.

10 SEC. 158. EFFECTIVE DATE.

11 (a) IN GENERAL.—Except as provided in subsection

12 (b), this chapter shall take effect on July 1, 1998.

13 (b) REPORT.—Section 156 shall take effect on the date

14 of enactment of this Act.

15 CHAPTER 3—OTHER WORKFORCE PREPA16 RATION ACTIVITIES FOR AT-RISK

17 YOUTH

18 SEC. 161. WORKFORCE PREPARATION ACTIVITIES FOR AT19 RISK YOUTH.

20 (a) IN GENERAL.—For program year 1998 and each

21 subsequent program year, the Secretary of Labor and the

22 Secretary of Education, acting jointly on the advice of the

23 Federal Partnership, shall make allotments under sub24 section (c) for States, to enable the Secretary of Labor to

25 carry out in the States, and to assist the States in paying
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1 for the cost of carrying out, workforce preparation activities

2 for at-risk youth, as described in this section.

3 (b) STATE USE OF FUNDS.—

4 (1) CORE JOB CORPS ACTIVITIES.—The Sec5 retary of Labor shall use the funds made available for

6 a State through an allotment made under subsection

7 (c)(2) to establish and operate Job Corps centers as

8 described in chapter 2, if a center located in the State

9 received assistance under part B of title IV of the Job

10 Training Partnership Act for fiscal year 1996 and

11 was not closed in accordance with section 156.

12 (2) CORE WORK-BASED LEARNING OPPORTUNI13 TIES.—

14 (A) IN GENERAL.—The State shall use a

15 portion of the funds made available to the State

16 through an allotment received under subsection

17 (c)(3) to make grants to eligible entities in sub18 state areas, in accordance with the procedures

19 described in subsection (e), to assist the substate

20 areas in organizing summer jobs programs that

21 provide work-based learning opportunities in the

22 private and public sectors that are directly

23 linked to year-round school-to-work activities in

24 the substate areas.
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1 (B) LIMITATION.—No funds provided under

2 this subtitle shall be used to displace employed

3 workers.

4 (3) PERMISSIBLE ACTIVITIES.—The State may

5 use a portion of the funds made available to the State

6 through an allotment received under subsection (c)(3)

7 to—

8 (A) make grants to eligible entities in sub9 state areas, in accordance with the procedures

10 described in subsection (e), to assist each such

11 entity in carrying out alternative programs to

12 assist out-of-school at-risk youth in participating

13 in school-to-work activities in the substate area;

14 and

15 (B) carry out other workforce development

16 activities specifically for at-risk youth.

17 (4) LAWS AND PROCEDURES APPLICABLE TO EX18 PENDITURE OF STATE FUNDS.—Any funds received by

19 a State under this subtitle shall be expended only in

20 accordance with the laws and procedures applicable to

21 expenditures of the State’s own revenues, subject to the

22 terms and conditions required under this subtitle,

23 particularly this section.

24 (c) ALLOTMENTS AND RESERVATION.—
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1 (1) IN GENERAL.—The Secretary of Labor and

2 the Secretary of Education, acting jointly on the ad3 vice of the Federal Partnership, shall allot for the

4 State an amount equal to the total of—

5 (A) the amount made available for the State

6 under paragraph (2); and

7 (B) the amounts made available to the State

8 under subparagraphs (C), (D), and (E) of para9 graph (4).

10 (2) ALLOTMENTS BASED ON FISCAL YEAR 1996

11 APPROPRIATIONS.—Using a portion of the funds ap12 propriated under subsection (h) for a fiscal year, the

13 Secretary of Labor and the Secretary of Education,

14 acting jointly on the advice of the Federal Partner15 ship, shall make available for each State, for the oper16 ation of Job Corps centers—

17 (A) the amount that Job Corps centers in

18 the State expended for fiscal year 1996 under

19 part B of title IV of the Job Training Partner20 ship Act to enable the Secretary of Labor to

21 carry out activities described in paragraphs (2)

22 and (3), and to pay for rehabilitation expenses

23 described in paragraph (4), of section 156(a), as

24 determined under such paragraphs; and
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1 (B) such amount as may be necessary for

2 the planning, construction, and operation de3 scribed in section 156(b)(2)(C) for any center de4 scribed in such section in the State.

5 (3) RESERVATION OF FUNDS FOR INDIANS AND

6 NATIVE HAWAIIANS.—The Secretary of Labor and the

7 Secretary of Education, acting jointly, may reserve a

8 portion of the funds that are appropriated under sub9 section (h) for a fiscal year, and that are not made

10 available under paragraph (2), to carry out sub11 section (g).

12 (4) ALLOTMENTS BASED ON POPULATIONS.—

13 (A) DEFINITIONS.—As used in this para14 graph:

15 (i) INDIVIDUAL IN POVERTY.—The

16 term ‘‘individual in poverty’’ means an in17 dividual who—

18 (I) is not less than age 18;

19 (II) is not more than age 64; and

20 (III) is a member of a family (of

21 1 or more members) with an income at

22 or below the poverty line.

23 (ii) POVERTY LINE.—The term ‘‘pov24 erty line’’ means the poverty line (as de25 fined by the Office of Management and
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1 Budget, and revised annually in accordance

2 with section 673(2) of the Community Serv3 ices Block Grant Act (42 U.S.C. 9902(2))

4 applicable to a family of the size involved,

5 using the most recent available data pro6 vided by the Bureau of the Census, prior to

7 the program year for which the allotment is

8 made, and applying the definition of pov9 erty used by the Bureau of the Census in

10 compiling the 1990 decennial census.

11 (B) TOTAL ALLOTMENTS.—The Secretary of

12 Labor and the Secretary of Education, acting

13 jointly on the advice of the Federal Partnership,

14 shall use the remainder of the funds that are ap15 propriated under subsection (h) for a fiscal year,

16 and that are not made available under para17 graph (2) or (3), to make amounts available

18 under this paragraph.

19 (C) UNEMPLOYED INDIVIDUALS.—From

funds equal to 331 20 ⁄3 percent of such remainder,

21 the Secretary of Labor and the Secretary of Edu22 cation, acting jointly on the advice of the Fed23 eral Partnership, shall make available to each

24 State an amount that bears the same relation25 ship to such funds as the average number of un-
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1 employed individuals (as determined by the Sec2 retary of Labor for the most recent 24-month pe3 riod for which data are available, prior to the

4 program year for which the allotment is made)

5 in the State bears to the average number of un6 employed individuals (as so determined) in the

7 United States.

8 (D) INDIVIDUALS IN POVERTY.—From funds

equal to 331 9 ⁄3 percent of such remainder, the Sec10 retary of Labor and the Secretary of Education,

11 acting jointly on the advice of the Federal Part12 nership, shall make available to each State an

13 amount that bears the same relationship to such

14 funds as the total number of individuals in pov15 erty in the State bears to the total number of in16 dividuals in poverty in the United States.

17 (E) AT-RISK YOUTH.—From funds equal to

331 18 ⁄3 percent of such remainder, the Secretary of

19 Labor and the Secretary of Education, acting

20 jointly on the advice of the Federal Partnership,

21 shall make available to each State an amount

22 that bears the same relationship to such funds as

23 the total number of at-risk youth in the State

24 bears to the total number of at-risk youth in the

25 United States.
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1 (d) STATE PLAN.—

2 (1) INFORMATION.—To be eligible to receive an

3 allotment under subsection (c)(3), a State shall in4 clude, in the State plan to be submitted under section

5 104, information describing the allocation within the

6 State of the funds made available through the allot7 ment, and how the programs and activities described

8 in subsection (b) will be carried out to meet the State

9 goals and reach the State benchmarks.

10 (2) LIMITATION.—A State may not be required

11 to include the information described in paragraph (1)

12 in the State plan to be submitted under section 104

13 to be eligible to receive an allotment under section

14 102.

15 (e) APPLICATION.—To be eligible to receive a grant

16 under paragraph (2) or (3)(A) of subsection (b) from a

17 State to carry out programs in a substate area, an entity

18 shall prepare and submit an application to the Governor

19 of the State at such time, in such manner, and containing

20 such information as the Governor may require. The Gov21 ernor may establish criteria for reviewing such applica22 tions. Any such criteria shall, at a minimum, include the

23 extent to which the local partnership (or, where established,

24 the local workforce development board described in section

25 118(b)) for the substate area approves of such application.
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1 (f) WITHIN STATE DISTRIBUTION.—Of the funds allot2 ted to a State under subsection (c)(4) for workforce prepara3 tion activities for at-risk youth for a program year—

4 (1) 15 percent shall be reserved by the Governor

5 to carry out such activities through the statewide sys6 tem; and

7 (2) 85 percent shall be distributed to local enti8 ties to carry out such activities through the statewide

9 system.

10 (g) FINANCIAL ASSISTANCE FOR INDIANS AND NATIVE

11 HAWAIIANS.—The Secretary of Labor and the Secretary of

12 Education, acting jointly, may use the funds reserved under

13 subsection (c)(3), if any, to make grants to, or enter into

14 contracts or cooperative agreements with, the entities de15 scribed in section 107(c)(1) to carry out workforce prepara16 tion activities for at-risk youth who are Indians (as defined

17 in section 107(b)(2)) or Native Hawaiians (as defined in

18 section 107(b)(4)). To be eligible to receive such a grant,

19 or enter into such a contract or cooperative agreement, such

20 an entity shall submit to the Federal Partnership an appli21 cation at such time, in such manner, and containing such

22 information as the Federal Partnership may require.

23 (h) AUTHORIZATION OF APPROPRIATIONS.—There are

24 authorized to be appropriated to carry out this subtitle,

25 $2,100,000,000 for each of fiscal years 1998 through 2001.
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1 (i) EFFECTIVE DATE.—This chapter shall take effect

2 on July 1, 1998.

3 Subtitle C—Transition Provisions

4 SEC. 171. WAIVERS.

5 (a) WAIVER AUTHORITY.—

6 (1) IN GENERAL.—Notwithstanding any other

7 provision of Federal law, and except as provided in

8 subsection (d), the Secretary may waive any require9 ment under any provision of law relating to a covered

10 activity, or of any regulation issued under such a

11 provision, for—

12 (A) a State that requests such a waiver and

13 submits an application as described in sub14 section (b); or

15 (B) a local entity that requests such a waiv16 er and complies with the requirements of sub17 section (c);

18 in order to assist the State or local entity in planning

19 or developing a statewide system or workforce develop20 ment activities, or workforce preparation activities

21 for at-risk youth, to be carried out through the state22 wide system.

23 (2) TERM.—

24 (A) IN GENERAL.—Except as provided in

25 subparagraph (B), each waiver approved pursu-
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1 ant to this section shall be for a period beginning

2 on the date of the approval and ending on June

3 30, 1998.

4 (B) FAILURE TO SUBMIT INTERIM PLAN.—

5 If a State receives a waiver under this section

6 and fails to submit an interim plan under sec7 tion 173 by June 30, 1997, the waiver shall be

8 deemed to terminate on September 30, 1997. If

9 a local entity receives a waiver under this sec10 tion, and the State in which the local entity is

11 located fails to submit an interim plan under

12 section 173 by June 30, 1997, the waiver shall

13 be deemed to terminate on September 30, 1997.

14 (b) STATE REQUEST FOR WAIVER.—

15 (1) IN GENERAL.—A State may submit to the

16 Secretary a request for a waiver of 1 or more require17 ments referred to in subsection (a). The request may

18 include a request for different waivers with respect to

19 different areas within the State.

20 (2) APPLICATION.—To be eligible to receive a

21 waiver described in subsection (a), a State shall sub22 mit an application to the Secretary at such time, in

23 such manner, and containing such information as the

24 Secretary may require, including information—
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1 (A) identifying the requirement to be

2 waived and the goal that the State (or the local

3 agency applying to the State under subsection

4 (c)) intends to achieve through the waiver;

5 (B) identifying, and describing the actions

6 that the State will take to remove, similar State

7 requirements;

8 (C) describing the activities to which the

9 waiver will apply, including information on how

10 the activities may be continued, or related to ac11 tivities carried out, under the statewide system of

12 the State;

13 (D) describing the number and type of per14 sons to be affected by such waiver; and

15 (E) providing evidence of support for the

16 waiver request by the State agencies or officials

17 with jurisdiction over the requirement to be

18 waived.

19 (c) LOCAL ENTITY REQUEST FOR WAIVER.—

20 (1) IN GENERAL.—A local entity that seeks a

21 waiver of such a requirement shall submit to the

22 State a request for the waiver and an application

23 containing sufficient information to enable the State

24 to comply with the requirements of subsection (b)(2).

25 The State shall determine whether to submit a request
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1 and an application for a waiver to the Secretary, as

2 provided in subsection (b).

3 (2) TIME LIMIT.—

4 (A) IN GENERAL.—The State shall make a

5 determination concerning whether to submit the

6 request and application for a waiver as described

7 in paragraph (1) not later than 30 days after

8 the date on which the State receives the applica9 tion from the local entity.

10 (B) DIRECT SUBMISSION.—

11 (i) IN GENERAL.—If the State does not

12 make a determination to submit or does not

13 submit the request and application within

14 the 30-day time period specified in sub15 paragraph (A), the local entity may submit

16 the request and application to the Sec17 retary.

18 (ii) REQUIREMENTS.—In submitting

19 such a request, the local entity shall obtain

20 the agreement of the State involved to com21 ply with the requirements of this section

22 that would otherwise apply to a State sub23 mitting a request for a waiver. In reviewing

24 an application submitted by a local entity,

25 the Secretary shall comply with the require-
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1 ments of this section that would otherwise

2 apply to the Secretary with respect to re3 view of such an application submitted by a

4 State.

5 (d) WAIVERS NOT AUTHORIZED.—The Secretary may

6 not waive any requirement of any provision referred to in

7 subsection (a), or of any regulation issued under such provi8 sion, relating to—

9 (1) the allocation of funds to States, local enti10 ties, or individuals;

11 (2) public health or safety, civil rights, occupa12 tional safety and health, environmental protection,

13 displacement of employees, or fraud and abuse;

14 (3) the eligibility of an individual for participa15 tion in a covered activity, except in a case in which

16 the State or local entity can demonstrate that the in17 dividuals who would have been eligible to participate

18 in such activity without the waiver will participate

19 in a similar covered activity; or

20 (4) a required supplementation of funds by the

21 State or a prohibition against the State supplanting

22 such funds.

23 (e) ACTIVITIES.—Subject to subsection (d), the Sec24 retary may approve a request for a waiver described in sub25 section (a) that would enable a State or local entity to—
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1 (1) use the assistance that would otherwise have

2 been used to carry out 2 or more covered activities (if

3 the State or local entity were not using the assistance

4 as described in this section)—

5 (A) to address the high priority needs of un6 employed persons and at-risk youth in the ap7 propriate State or community for workforce em8 ployment activities or workforce education ac9 tivities;

10 (B) to improve efficiencies in the delivery of

11 the covered activities; or

12 (C) in the case of overlapping or duplicative

13 activities—

14 (i) by combining the covered activities

15 and funding the combined activities; or

16 (ii) by eliminating 1 of the covered ac17 tivities and increasing the funding to the

18 remaining covered activity; and

19 (2) use the assistance that would otherwise have

20 been used for administrative expenses relating to a

21 covered activity (if the State or local entity were not

22 using the assistance as described in this section) to

23 pay for the cost of developing an interim State plan

24 described in section 173 or a State plan described in

25 section 104.
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1 (f) APPROVAL OR DISAPPROVAL.—The Secretary shall

2 approve or disapprove any request submitted pursuant to

3 subsection (b) or (c), not later than 45 days after the date

4 of the submission, and shall issue a decision that shall in5 clude the reasons for approving or disapproving the request.

6 (g) FAILURE TO ACT.—If the Secretary fails to ap7 prove or disapprove the request within the 45-day period

8 described in subsection (f), the request shall be deemed to

9 be approved on the day after such period ends. If the Sec10 retary subsequently determines that the waiver relates to

11 a matter described in subsection (d) and issues a decision

12 that includes the reasons for the determination, the waiver

13 shall be deemed to terminate on the date of issuance of the

14 decision.

15 (h) DEFINITION.—As used in this section:

16 (1) LOCAL ENTITY.—The term ‘‘local entity’’

17 means—

18 (A) a local educational agency, with respect

19 to any act by a local agency or organization re20 lating to a covered activity that is a workforce

21 education activity; and

22 (B) the local public or private agency or or23 ganization responsible for carrying out the cov24 ered activity at issue, with respect to any act by
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1 a local agency or organization relating to any

2 other covered activity.

3 (2) SECRETARY.—The term ‘‘Secretary’’

4 means—

5 (A) the Secretary of Labor, with respect to

6 any act relating to a covered activity carried out

7 by the Secretary of Labor; and

8 (B) the Secretary of Education, with respect

9 to any act relating to a covered activity carried

10 out by the Secretary of Education.

11 (3) STATE.—The term ‘‘State’’ means—

12 (A) a State educational agency, with respect

13 to any act by a State entity relating to a covered

14 activity that is a workforce education activity;

15 and

16 (B) the Governor, with respect to any act by

17 a State entity relating to any other covered ac18 tivity.

19 (i) CONFORMING AMENDMENTS.—

20 (1) Section 501 of the School-to-Work Opportuni21 ties Act of 1994 (20 U.S.C. 6211) is amended—

22 (A) in subsection (a), by striking ‘‘sections

23 502 and 503’’ and inserting ‘‘section 502’’;

24 (B) in subsection (b)(2)(B)(ii)—
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1 (i) by striking ‘‘section 502(a)(1)(C) or

2 503(a)(1)(C), as appropriate,’’ and insert3 ing ‘‘section 502(a)(1)(C)’’; and

4 (ii) by striking ‘‘section 502 or 503, as

5 appropriate,’’ and inserting ‘‘section 502’’;

6 (C) in subsection (c), by striking ‘‘section

7 502 or 503’’ and inserting ‘‘section 502’’; and

8 (D) by striking ‘‘Secretaries’’ each place the

9 term appears and inserting ‘‘Secretary of Edu10 cation’’.

11 (2) Section 502(b) of such Act (20 U.S.C.

12 6212(b)) is amended—

13 (A) in paragraph (4), by striking the semi14 colon and inserting ‘‘; and’’;

15 (B) in paragraph (5), by striking ‘‘; and’’

16 and inserting a period; and

17 (C) by striking paragraph (6).

18 (3) Section 503 of such Act (20 U.S.C. 6213) is

19 repealed.

20 (4) Section 504 of such Act (20 U.S.C. 6214) is

21 amended—

22 (A) in subsection (a)(2)(B), by striking

23 clauses (i) and (ii) and inserting the following

24 clauses:
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1 ‘‘(i) the provisions of law listed in

2 paragraphs (2) through (5) of section

3 502(b);

4 ‘‘(ii) the Job Training Partnership Act

5 (29 U.S.C. 1501 et seq.); and

6 ‘‘(iii) the Carl D. Perkins Vocational

7 and Applied Technology Education Act (20

8 U.S.C. 2301 et seq.).’’; and

9 (B) in subsection (b), by striking ‘‘para10 graphs (1) through (3), and paragraphs (5) and

11 (6), of section 503(b)’’ and inserting ‘‘para12 graphs (2) through (4) and paragraphs (6) and

13 (7) of section 505(b)’’.

14 (5) Section 505(b) of such Act (20 U.S.C.

15 6215(b)) is amended to read as follows:

16 ‘‘(b) USE OF FUNDS.—A State may use, under the re17 quirements of this Act, Federal funds that are made avail18 able to the State and combined under subsection (a) to

19 carry out school-to-work activities, except that the provi20 sions relating to—

21 ‘‘(1) the matters specified in section 502(c);

22 ‘‘(2) basic purposes or goals;

23 ‘‘(3) maintenance of effort;

24 ‘‘(4) distribution of funds;
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1 ‘‘(5) eligibility of an individual for participa2 tion;

3 ‘‘(6) public health or safety, labor standards,

4 civil rights, occupational safety and health, or envi5 ronmental protection; or

6 ‘‘(7) prohibitions or restrictions relating to the

7 construction of buildings or facilities;

8 that relate to the program through which the funds de9 scribed in subsection (a)(2)(B) were made available, shall

10 remain in effect with respect to the use of such funds.’’.

11 SEC. 172. FLEXIBILITY DEMONSTRATION PROGRAM.

12 (a) DEFINITION.—As used in this section:

13 (1) ELIGIBLE STATE.—The term ‘‘eligible State’’

14 means a State that—

15 (A)(i) has submitted an interim State plan

16 under section 173;

17 (ii) has an executed memorandum of under18 standing with the Federal Government; or

19 (iii) is a designated ‘‘Ed-Flex Partnership

20 State’’ under section 311(e) of the Goals 2000:

21 Educate America Act (20 U.S.C. 5891(e)); and

22 (B) waives State statutory or regulatory re23 quirements relating to workforce development ac24 tivities while holding local entities within the

25 State that are effected by such waivers account-
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1 able for the performance of the participants who

2 are affected by such waivers.

3 (2) LOCAL ENTITY; SECRETARY; STATE.—The

4 terms ‘‘local entity’’, ‘‘Secretary’’, and ‘‘State’’ have

5 the meanings given the terms in section 171(h).

6 (b) DEMONSTRATION PROGRAM.—

7 (1) ESTABLISHMENT.—In addition to providing

8 for the waivers described in section 171(a), the Sec9 retary shall establish a workforce flexibility dem10 onstration program under which the Secretary shall

11 permit not more than 6 eligible States (or local enti12 ties within such States) to waive any statutory or

13 regulatory requirement applicable to any covered ac14 tivity described in section 171(a), other than the re15 quirements described in section 171(d).

16 (2) SELECTION OF PARTICIPANT STATES.—In

17 carrying out the program under paragraph (1), the

18 Secretary shall select for participation in the pro19 gram 3 eligible States that each have a population of

20 not less than 3,500,000 individuals and 3 eligible

21 States that each have a population of not more than

22 3,500,000 individuals, as determined in accordance

23 with the most recent decennial census of the popu24 lation as provided by the Bureau of the Census.

25 (3) APPLICATION.—
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1 (A) SUBMISSION.—To be eligible to partici2 pate in the program established under paragraph

3 (1), a State shall prepare and submit an appli4 cation, in accordance with section 171(b)(2),

5 that includes—

6 (i) a description of the process the eli7 gible State will use to evaluate applications

8 from local entities requesting waivers of—

9 (I) Federal statutory or regu10 latory requirements described in sec11 tion 171(a); and

12 (II) State statutory or regulatory

13 requirements relating to workforce de14 velopment activities; and

15 (ii) a detailed description of the State

16 statutory or regulatory requirements relat17 ing to workforce development activities that

18 the State will waive.

19 (B) APPROVAL.—The Secretary may ap20 prove an application submitted under subpara21 graph (A) if the Secretary determines that such

22 application demonstrates substantial promise of

23 assisting the State and local entities within such

24 State in carrying out comprehensive reform of
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1 workforce development activities and in other2 wise meeting the purposes of this Act.

3 (C) LOCAL ENTITY APPLICATIONS.—A State

4 participating in the program established under

5 paragraph (1) shall not approve an application

6 by a local entity for a waiver under this sub7 section unless the State determines that such

8 waiver will assist the local entity in reaching the

9 goals of the local entity.

10 (4) MONITORING.—A State participating in the

11 program established under paragraph (1) shall annu12 ally monitor the activities of local entities receiving

13 waivers under this subsection and shall submit an an14 nual report regarding such monitoring to the Sec15 retary. The Secretary shall periodically review the

16 performance of such States and shall terminate the

17 waiver of a State under this subsection if the Sec18 retary determines, after notice and opportunity for a

19 hearing, that the performance of such State has been

20 inadequate to a level that justifies discontinuation of

21 such authority.

22 (5) REFERENCE.—Each eligible State partici23 pating in the program established under paragraph

24 (1) shall be referred to as a ‘‘Work-Flex Partnership

25 State’’.
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1 SEC. 173. INTERIM STATE PLANS.

2 (a) IN GENERAL.—For a State or local entity in a

3 State to use a waiver received under section 171 or 172

4 through June 30, 1998, and for a State to be eligible to

5 submit a State plan described in section 104 for program

6 year 1998, the Governor of the State shall submit an in7 terim State plan to the Federal Partnership. The Governor

8 shall submit the plan not later than June 30, 1997.

9 (b) REQUIREMENTS.—The interim State plan shall

10 comply with the requirements applicable to State plans de11 scribed in section 104.

12 (c) PROGRAM YEAR.—In submitting the interim State

13 plan, the Governor shall indicate whether the plan is sub14 mitted—

15 (1) for review and approval for program year

16 1997; or

17 (2) solely for review.

18 (d) REVIEW.—In reviewing an interim State plan, the

19 Secretary of Labor and the Secretary of Education, acting

20 jointly on the advice of the Federal Partnership, may—

21 (1) in the case of a plan submitted for review

22 and approval for program year 1997—

23 (A) approve the plan and permit the State

24 to use a waiver as described in section 171 or

25 172 to carry out the plan; or
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1 (B)(i) disapprove the plan and provide to

2 the State reasons for the disapproval; and

3 (ii) direct the Federal Partnership to pro4 vide technical assistance to the State for develop5 ing an approvable plan to be submitted under

6 section 104 for program year 1998; and

7 (2) in the case of a plan submitted solely for re8 view, review the plan and provide to the State tech9 nical assistance for developing an approvable plan to

10 be submitted under section 104 for program year

11 1998.

12 (e) EFFECT OF DISAPPROVAL.—Disapproval of an in13 terim plan shall not affect the ability of a State to use a

14 waiver as described in section 171 or 172 through June 30,

15 1998.

16 SEC. 174. APPLICATIONS AND PLANS UNDER COVERED

17 ACTS.

18 Notwithstanding any other provision of law, no State

19 or local entity shall be required to comply with any provi20 sion of a covered Act that would otherwise require the entity

21 to submit an application or a plan to a Federal agency

22 during fiscal year 1996 or 1997 for funding of a covered

23 activity. In determining whether to provide funding to the

24 State or local entity for the covered activity, the Secretary

25 of Labor or the Secretary of Education, as appropriate,
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1 shall consider the last application or plan, as appropriate,

2 submitted by the entity for funding of the covered activity.

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

4 PROGRAMS.

5 (a) IN GENERAL.—Any provision of the School-to6 Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.)

7 that grants authority to the Secretary of Labor or the Sec8 retary of Education shall be considered to grant the author9 ity to the Federal Partnership.

10 (b) EFFECTIVE DATE.—Subsection (a) shall take effect

11 on October 1, 1996.

12 SEC. 176. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.

13 (a) CARL D. PERKINS VOCATIONAL AND APPLIED

14 TECHNOLOGY EDUCATION ACT.—

15 (1) IN GENERAL.—Section 3(a) of the Carl D.

16 Perkins Vocational and Applied Technology Edu17 cation Act (20 U.S.C. 2302(a)) is amended by strik18 ing ‘‘for each of the fiscal years’’ and all that follows

19 through ‘‘1995’’ and inserting ‘‘for each of fiscal years

20 1992 through 1998’’.

21 (2) RESEARCH.—Section 404(d) of such Act (20

22 U.S.C. 2404(d)) is amended by striking ‘‘for each of

23 the fiscal years’’ and all that follows through ‘‘1995’’

24 and inserting ‘‘for each of fiscal years 1992 through

25 1998’’.
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1 (b) ADULT EDUCATION ACT.—

2 (1) IN GENERAL.—Section 313(a) of the Adult

3 Education Act (20 U.S.C. 1201b(a)) is amended by

4 striking ‘‘for each of the fiscal years’’ and all that fol5 lows through ‘‘1995’’ and inserting ‘‘for each of fiscal

6 years 1993 through 1998’’.

7 (2) STATE LITERACY RESOURCE CENTERS.—Sec8 tion 356(k) of such Act (20 U.S.C. 1208aa(k)) is

9 amended by striking ‘‘for each of the fiscal years 1994

10 and 1995’’ and inserting ‘‘for each of fiscal years

11 1994 and 1995’’.

12 (3) BUSINESS, INDUSTRY, LABOR, AND EDU13 CATION PARTNERSHIPS FOR WORKPLACE LITERACY.—

14 Section 371(e)(1) of such Act (20 U.S.C. 1211(e)(1))

15 is amended by striking ‘‘for each of the fiscal years’’

16 and all that follows through ‘‘1995’’ and inserting

17 ‘‘for each of fiscal years 1993 through 1998’’.

18 (4) NATIONAL INSTITUTE FOR LITERACY.—Sec19 tion 384(n)(1) of such Act (20 U.S.C. 1213c(n)(1)) is

20 amended by striking ‘‘for each of the fiscal years’’ and

21 all that follows through ‘‘1996’’ and inserting ‘‘for

22 each of fiscal years 1992 through 1995’’.
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1 Subtitle D—National Activities

2 SEC. 181. FEDERAL PARTNERSHIP.

3 (a) ESTABLISHMENT.—There is established in the De4 partment of Labor and the Department of Education a

5 Workforce Development Partnership, under the joint control

6 of the Secretary of Labor and the Secretary of Education.

7 (b) ADMINISTRATION.—Notwithstanding the Depart8 ment of Education Organization Act (20 U.S.C. 3401 et

9 seq.), the General Education Provisions Act (20 U.S.C.

10 1221 et seq.), the Act entitled ‘‘An Act To Create a Depart11 ment of Labor’’, approved March 4, 1913 (29 U.S.C. 551

12 et seq.), and section 169 of the Job Training Partnership

13 Act (29 U.S.C. 1579), the Secretary of Labor and the Sec14 retary of Education, acting jointly, in accordance with the

15 plan approved or determinations made by the President

16 under section 187(c), shall provide for, and exercise final

17 authority over, the effective and efficient administration of

18 this title (other than subtitle B), the Act amended by sub19 title B of title II, the provisions amended by sections 241

20 and 242, and the officers and employees of the Federal Part21 nership.

22 (c) RESPONSIBILITIES OF SECRETARY OF LABOR AND

23 SECRETARY OF EDUCATION.—The Secretary of Labor and

24 the Secretary of Education, working jointly through the

25 Federal Partnership, shall—
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1 (1) approve applications and plans under sec2 tions 104, 107, 108, 109, 173, and 184;

3 (2) award financial assistance under sections

4 102, 107, 108, 109, 122(a), 161, 184, and 185;

5 (3) approve State benchmarks in accordance

6 with section 121(c); and

7 (4) apply sanctions described in section 122(b).

8 (d) WORKPLANS.—The Secretary of Labor and the

9 Secretary of Education, acting jointly, shall prepare and

10 submit the workplans described in sections 187(c) and

11 188(b).

12 (e) INFORMATION AND TECHNICAL ASSISTANCE RE13 SPONSIBILITIES.—The Secretary of Labor and the Sec14 retary of Education, acting jointly, shall, in appropriate

15 cases, disseminate information and provide technical assist16 ance to States on the best practices for establishing and car17 rying out activities through statewide systems, including

18 model programs to provide structured work and learning

19 experiences for welfare recipients.

20 SEC. 182. NATIONAL WORKFORCE DEVELOPMENT BOARD

21 AND PERSONNEL.

22 (a) NATIONAL BOARD.—

23 (1) COMPOSITION.—The Federal Partnership

24 shall be directed by a National Board that shall be

25 composed of 13 individuals, including—
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1 (A) 7 individuals who are representative of

2 business and industry in the United States, ap3 pointed by the President by and with the advice

4 and consent of the Senate;

5 (B) 2 individuals who are representative of

6 labor and workers in the United States, ap7 pointed by the President by and with the advice

8 and consent of the Senate;

9 (C) 2 individuals who are representative of

10 education providers, 1 of whom is a State or

11 local adult education provider and 1 of whom is

12 a State or local vocational education provider,

13 appointed by the President by and with the ad14 vice and consent of the Senate; and

15 (D) 2 Governors, representing different po16 litical parties, appointed by the President by

17 and with the advice and consent of the Senate.

18 (2) TERMS.—Each member of the National

19 Board shall serve for a term of 3 years, except that,

20 as designated by the President—

21 (A) 5 of the members first appointed to the

22 National Board shall serve for a term of 2 years;

23 (B) 4 of the members first appointed to the

24 National Board shall serve for a term of 3 years;

25 and
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1 (C) 4 of the members first appointed to the

2 National Board shall serve for a term of 4 years.

3 (3) VACANCIES.—Any vacancy in the National

4 Board shall not affect the powers of the National

5 Board, but shall be filled in the same manner as the

6 original appointment. Any member appointed to fill

7 such a vacancy shall serve for the remainder of the

8 term for which the predecessor of such member was

9 appointed.

10 (4) DUTIES AND POWERS OF THE NATIONAL

11 BOARD.—

12 (A) OVERSIGHT.—Subject to section 181(b),

13 the National Board shall oversee all activities of

14 the Federal Partnership.

15 (B) RECOMMENDATIONS ABOUT IMPLEMEN16 TATION.—If the Secretary of Labor and the Sec17 retary of Education fail to reach agreement with

18 respect to the implementation of their duties and

19 responsibilities under this Act (other than sub20 title B) and the amendments made by this Act,

21 the National Board shall review the issues about

22 which disagreement exists and make a rec23 ommendation to the President regarding a solu24 tion to the disagreement.
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1 (5) CHAIRPERSON.—The position of Chairperson

2 of the National Board shall rotate annually among

3 the appointed members described in paragraph

4 (1)(A).

5 (6) MEETINGS.—The National Board shall meet

6 at the call of the Chairperson but not less often than

7 4 times during each calendar year. Seven members of

8 the National Board shall constitute a quorum. All de9 cisions of the National Board with respect to the exer10 cise of the duties and powers of the National Board

11 shall be made by a majority vote of the members of

12 the National Board.

13 (7) COMPENSATION AND TRAVEL EXPENSES.—

14 (A) COMPENSATION.—In accordance with

15 the plan approved or the determinations made

16 by the President under section 187(c), each mem17 ber of the National Board shall be compensated

18 at a rate to be fixed by the President but not to

19 exceed the daily equivalent of the maximum rate

20 authorized for a position above GS–15 of the

21 General Schedule under section 5108 of title 5,

22 United States Code, for each day (including

23 travel time) during which such member is en24 gaged in the performance of the duties of the Na25 tional Board.
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1 (B) EXPENSES.—While away from their

2 homes or regular places of business on the busi3 ness of the National Board, members of such Na4 tional Board shall be allowed travel expenses, in5 cluding per diem in lieu of subsistence, at rates

6 authorized for employees of agencies under sub7 chapter I of chapter 57 of title 5, United States

8 Code, for persons employed intermittently in the

9 Government service.

10 (8) DATE OF APPOINTMENT.—The National

11 Board shall be appointed not later than 120 days

12 after the date of enactment of this Act.

13 (b) DUTIES AND POWERS OF THE FEDERAL PARTNER14 SHIP.—The Federal Partnership shall—

15 (1) oversee the development, maintenance, and

16 continuous improvement of the nationwide integrated

17 labor market and occupational information system

18 described in section 183, and the relationship between

19 such system and the job placement accountability sys20 tem described in section 121(d);

21 (2) establish model benchmarks for each of the

22 benchmarks referred to in paragraph (1), (2), or (3)

23 of section 121(c), at achievable levels based on existing

24 (as of the date of the establishment of the benchmarks)

25 workforce development efforts in the States;
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1 (3) negotiate State benchmarks with States in

2 accordance with section 121(c);

3 (4) provide advice to the Secretary of Labor and

4 the Secretary of Education regarding the review and

5 approval of applications and plans described in sec6 tion 181(c)(1) and the approval of financial assist7 ance described in section 181(c)(2);

8 (5) receive and review reports described in sec9 tion 121(a);

10 (6) prepare and submit to the appropriate com11 mittees of Congress an annual report on the absolute

12 and relative performance of States toward reaching

13 the State benchmarks;

14 (7) provide advice to the Secretary of Labor and

15 the Secretary of Education regarding applying sanc16 tions described in section 122(b);

17 (8) review all federally funded programs provid18 ing workforce development activities or workforce

19 preparation activities for at-risk youth, other than

20 programs carried out under this title, and submit rec21 ommendations to Congress on how the federally fund22 ed programs could be integrated into the statewide

23 systems of the States, including recommendations on

24 the development of common terminology for activities

25 and services provided through the programs;
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1 (9) prepare an annual plan for the nationwide

2 integrated labor market and occupational information

3 system, as described in section 183(b)(2); and

4 (10) perform the duties specified for the Federal

5 Partnership in this Act and the amendments made by

6 this Act.

7 (c) DIRECTOR.—

8 (1) IN GENERAL.—There shall be in the Federal

9 Partnership a Director, who shall be appointed by the

10 President, by and with the advice and consent of the

11 Senate.

12 (2) COMPENSATION.—The Director shall be com13 pensated at the rate provided for level IV of the Exec14 utive Schedule under section 5315 of title 5, United

15 States Code.

16 (3) DUTIES.—The Director shall make rec17 ommendations to the National Board regarding the

18 activities described in subsection (b).

19 (4) DATE OF APPOINTMENT.—The Director shall

20 be appointed not later than 120 days after the date

21 of enactment of this Act.

22 (d) PERSONNEL.—

23 (1) APPOINTMENTS.—The Director may appoint

24 and fix the compensation of such officers and employ25 ees as may be necessary to carry out the functions of
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1 the Federal Partnership. Except as otherwise provided

2 by law, such officers and employees shall be appointed

3 in accordance with the civil service laws and their

4 compensation fixed in accordance with title 5, United

5 States Code.

6 (2) EXPERTS AND CONSULTANTS.—The Director

7 may obtain the services of experts and consultants in

8 accordance with section 3109 of title 5, United States

9 Code, and compensate such experts and consultants

10 for each day (including travel time) at rates not in

11 excess of the rate of pay for level IV of the Executive

12 Schedule under section 5315 of such title. The Direc13 tor may pay experts and consultants who are serving

14 away from their homes or regular places of business

15 travel expenses and per diem in lieu of subsistence at

16 rates authorized by sections 5702 and 5703 of such

17 title for persons in Government service employed

18 intermittently.

19 (3) DETAIL OF GOVERNMENT EMPLOYEES.—Any

20 Federal Government employee may be detailed to the

21 Federal Partnership without reimbursement, and such

22 detail shall be without interruption or loss of civil

23 service or privilege. The Secretary of Education and

24 the Secretary of Labor shall detail a sufficient num25 ber of employees to the Federal Partnership for the
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1 period beginning October 1, 1996 and ending June

2 30, 1998 to carry out the functions of the Federal

3 Partnership during such period.

4 (4) USE OF VOLUNTARY AND UNCOMPENSATED

5 SERVICES.—Notwithstanding section 1342 of title 31,

6 United States Code, the Secretary of Labor and the

7 Secretary of Education are authorized to accept vol8 untary and uncompensated services in furtherance of

9 the purposes of this Act.

10 (e) AUTHORIZATION OF APPROPRIATIONS.—There is

11 authorized to be appropriated for fiscal years 1996 and

12 1997 $500,000 to the National Board for the administra13 tion of the duties and responsibilities of the Federal Part14 nership under this title.

15 SEC. 183. LABOR MARKET AND OCCUPATIONAL INFORMA16 TION.

17 (a) FEDERAL RESPONSIBILITIES.—The Federal Part18 nership, in accordance with the provisions of this section,

19 shall oversee the development, maintenance, and continuous

20 improvement of a nationwide integrated labor market and

21 occupational information system that shall include—

22 (1) statistical data from cooperative statistical

23 survey and projection programs and data from ad24 ministrative reporting systems, that, taken together,

25 shall enumerate, estimate, and project the supply and
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1 demand for labor at the substate, State, and national

2 levels in a timely manner, including data on—

3 (A) the demographics, socioeconomic charac4 teristics, and current employment status of the

5 substate, State, and national populations (as of

6 the date of the collection of the data), including

7 self-employed, part-time, and seasonal workers;

8 (B) job vacancies, education and training

9 requirements, skills, wages, benefits, working con10 ditions, and industrial distribution, of occupa11 tions, as well as current and projected employ12 ment opportunities and trends by industry and

13 occupation;

14 (C) the educational attainment, training,

15 skills, skill levels, and occupations of the popu16 lations;

17 (D) information maintained in a longitu18 dinal manner on the quarterly earnings, estab19 lishment and industry affiliation, and geo20 graphic location of employment for all individ21 uals for whom the information is collected by the

22 States; and

23 (E) the incidence, industrial and geographi24 cal location, and number of workers displaced by

25 permanent layoffs and plant closings;
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1 (2) State and substate area employment and

2 consumer information (which shall be current, com3 prehensive, automated, accessible, easy to understand,

4 and in a form useful for facilitating immediate em5 ployment, entry into education and training pro6 grams, and career exploration) on—

7 (A) job openings, locations, hiring require8 ments, and application procedures, including

9 profiles of industries in the local labor market

10 that describe the nature of work performed, em11 ployment requirements, and patterns in wages

12 and benefits;

13 (B) jobseekers, including the education,

14 training, and employment experience of the job15 seekers; and

16 (C) the cost and effectiveness of providers of

17 workforce employment activities, workforce edu18 cation activities, and flexible workforce activities,

19 including the percentage of program completion,

20 acquisition of skills to meet industry-recognized

21 skill standards, continued education, job place22 ment, and earnings, by participants, and other

23 information that may be useful in facilitating

24 informed choices among providers by partici25 pants;
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1 (3) technical standards for labor market and oc2 cupational information that will—

3 (A) ensure compatibility of the information

4 and the ability to aggregate the information

5 from substate areas to State and national levels;

6 (B) support standardization and aggrega7 tion of the data from administrative reporting

8 systems;

9 (C) include—

10 (i) classification and coding systems

11 for industries, occupations, skills, programs,

12 and courses;

13 (ii) nationally standardized definitions

14 of labor market terms, including terms re15 lated to State benchmarks established pursu16 ant to section 121(c);

17 (iii) quality control mechanisms for

18 the collection and analysis of labor market

19 and occupational information; and

20 (iv) common schedules for collection

21 and dissemination of labor market and oc22 cupational information; and

23 (D) eliminate gaps and duplication in sta24 tistical undertakings, with a high priority given

25 to the systemization of wage surveys;
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1 (4) an analysis of data and information de2 scribed in paragraphs (1) and (2) for uses such as—

3 (A) national, State, and substate area eco4 nomic policymaking;

5 (B) planning and evaluation of workforce

6 development activities;

7 (C) the implementation of Federal policies,

8 including the allocation of Federal funds to

9 States and substate areas;

10 (D) research on labor market and occupa11 tional dynamics; and

12 (E) career development planning and deci13 sionmaking;

14 (5) dissemination mechanisms for data and

15 analysis, including mechanisms that may be stand16 ardized among the States; and

17 (6) programs of technical assistance for States

18 and substate areas in the development, maintenance,

19 utilization, and continuous improvement of the data,

20 information, standards, analysis, and dissemination

21 mechanisms, described in paragraphs (1) through (5),

22 including training of counselors, teachers, and other

23 persons to use the products of the nationwide inte24 grated labor market and occupational information

25 system to improve career decisionmaking.
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1 (b) JOINT FEDERAL-STATE RESPONSIBILITIES.—

2 (1) IN GENERAL.—The nationwide integrated

3 labor market and occupational information system

4 shall be planned, administered, overseen, and evalu5 ated through a cooperative governance structure in6 volving the Federal Government and the States receiv7 ing financial assistance under this title.

8 (2) ANNUAL PLAN.—The Federal Partnership

9 shall, with the assistance of the Bureau of Labor Sta10 tistics and other Federal agencies, where appropriate,

11 prepare an annual plan that shall be the mechanism

12 for achieving the cooperative Federal-State governance

13 structure for the nationwide integrated labor market

14 and occupational information system. The plan

15 shall—

16 (A) establish goals for the development and

17 improvement of a nationwide integrated labor

18 market and occupational information system

19 based on information needs for achieving eco20 nomic growth and productivity, accountability,

21 fund allocation equity, and an understanding of

22 labor market characteristics and dynamics;

23 (B) describe the elements of the system, in24 cluding—
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1 (i) standards, definitions, formats, col2 lection methodologies, and other necessary

3 system elements, for use in collecting the

4 data and information described in para5 graphs (1) and (2) of subsection (a); and

6 (ii) assurances that—

7 (I) data will be sufficiently timely

8 and detailed for uses including the uses

9 described in subsection (a)(4);

10 (II) administrative records will be

11 standardized to facilitate the aggrega12 tion of data from substate areas to

13 State and national levels and to sup14 port the creation of new statistical se15 ries from program records; and

16 (III) paperwork and reporting re17 quirements on employers and individ18 uals will be reduced;

19 (C) recommend needed improvements in ad20 ministrative reporting systems to be used for the

21 nationwide integrated labor market and occupa22 tional information system;

23 (D) describe the current spending on inte24 grated labor market and occupational informa25 tion activities from all sources, assess the ade-
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1 quacy of the funds spent, and identify the spe2 cific budget needs of the Federal Government and

3 States with respect to implementing and improv4 ing the nationwide integrated labor market and

5 occupational information system;

6 (E) develop a budget for the nationwide in7 tegrated labor market and occupational informa8 tion system that—

9 (i) accounts for all funds described in

10 subparagraph (D) and any new funds made

11 available pursuant to this title; and

12 (ii) describes the relative allotments to

13 be made for—

14 (I) operating the cooperative sta15 tistical programs pursuant to sub16 section (a)(1);

17 (II) developing and providing em18 ployment and consumer information

19 pursuant to subsection (a)(2);

20 (III) ensuring that technical

21 standards are met pursuant to sub22 section (a)(3); and

23 (IV) providing the analysis, dis24 semination mechanisms, and technical

25 assistance under paragraphs (4), (5),
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1 and (6) of subsection (a), and match2 ing data;

3 (F) describe the involvement of States in de4 veloping the plan by holding formal consulta5 tions conducted in cooperation with representa6 tives of the Governors of each State or the State

7 workforce development board described in section

8 105, where appropriate, pursuant to a process

9 established by the Federal Partnership; and

10 (G) provide for technical assistance to the

11 States for the development of statewide com12 prehensive labor market and occupational infor13 mation systems described in subsection (c), in14 cluding assistance with the development of easy15 to-use software and hardware, or uniform infor16 mation displays.

17 For purposes of applying Office of Management and

18 Budget Circular A–11 to determine persons eligible to

19 participate in deliberations relating to budget issues

20 for the development of the plan, the representatives of

21 the Governors of each State and the State workforce

22 development board described in subparagraph (F)

23 shall be considered to be employees of the Department

24 of Labor.

25 (c) STATE RESPONSIBILITIES.—
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1 (1) DESIGNATION OF STATE AGENCY.—In order

2 to receive Federal financial assistance under this title,

3 the Governor of a State shall—

4 (A) establish an interagency process for the

5 oversight of a statewide comprehensive labor

6 market and occupational information system

7 and for the participation of the State in the co8 operative Federal-State governance structure for

9 the nationwide integrated labor market and oc10 cupational information system; and

11 (B) designate a single State agency or en12 tity within the State to be responsible for the

13 management of the statewide comprehensive

14 labor market and occupational information sys15 tem.

16 (2) DUTIES.—In order to receive Federal finan17 cial assistance under this title, the State agency or

18 entity within the State designated under paragraph

19 (1)(B) shall—

20 (A) consult with employers and local

21 workforce development boards described in sec22 tion 118(b), where appropriate, about the labor

23 market relevance of the data to be collected and

24 displayed through the statewide comprehensive
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1 labor market and occupational information sys2 tem;

3 (B) develop, maintain, and continuously

4 improve the statewide comprehensive labor mar5 ket and occupational information system, which

6 shall—

7 (i) include all of the elements described

8 in paragraphs (1), (2), (3), (4), (5), and (6)

9 of subsection (a); and

10 (ii) provide the consumer information

11 described in clauses (v) and (vi) of section

12 106(a)(2)(B) in a manner that shall be re13 sponsive to the needs of business, industry,

14 workers, and jobseekers;

15 (C) ensure the performance of contract and

16 grant responsibilities for data collection, analy17 sis, and dissemination, through the statewide

18 comprehensive labor market and occupational

19 information system;

20 (D) conduct such other data collection,

21 analysis, and dissemination activities to ensure

22 that State and substate area labor market and

23 occupational information is comprehensive;

24 (E) actively seek the participation of other

25 State and local agencies, with particular atten-
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1 tion to State education, economic development,

2 human services, and welfare agencies, in data

3 collection, analysis, and dissemination activities

4 in order to ensure complementarity and compat5 ibility among data;

6 (F) participate in the development of the

7 national annual plan described in subsection

8 (b)(2); and

9 (G) ensure that the matches required for the

10 job placement accountability system by section

11 121(d)(2)(A) are made for the State and for

12 other States.

13 (3) RULE OF CONSTRUCTION.—Nothing in this

14 title shall be construed as limiting the ability of a

15 State agency to conduct additional data collection,

16 analysis, and dissemination activities with State

17 funds or with Federal funds from sources other than

18 this title.

19 (d) EFFECTIVE DATE.—This section shall take effect

20 on July 1, 1998.

21 SEC. 184. NATIONAL DISCRETIONARY GRANTS.

22 (a) NATIONAL GRANTS.—Using funds made available

23 under section 124(b)(5), the Secretary of Labor and the Sec24 retary of Education, acting jointly on the advice of the Fed-
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1 eral Partnership, may in a timely manner award a na2 tional grant—

3 (1) to an eligible entity described in subsection

4 (b) to carry out the activities described in such sub5 section; and

6 (2) at the request of an officer described in sub7 section (c), to such an officer to carry out the activi8 ties described in such subsection.

9 (b) RAPID RESPONSE GRANTS.—

10 (1) IN GENERAL.—

11 (A) MAJOR ECONOMIC DISLOCATION.—

12 Funds made available under this section to an

13 eligible entity described in this subsection may

14 be used to provide adjustment assistance to work15 ers affected by a major economic dislocation that

16 results from a closure, layoff, or realignment de17 scribed in section 3(8)(B).

18 (B) EMERGENCY DETERMINATION.—Such

19 funds may also be used to provide adjustment as20 sistance to dislocated workers whenever the Fed21 eral Partnership (with the agreement of the Gov22 ernor involved) determines that an emergency ex23 ists with respect to any particular distressed in24 dustry or any particularly distressed area. The

25 Federal Partnership may make arrangements for
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1 the immediate provision of such emergency fi2 nancial assistance for the purposes of this sub3 section with any necessary supportive docu4 mentation to be submitted on a date agreed to by

5 the Governor and the Federal Partnership.

6 (2) ELIGIBLE ENTITIES.—To be eligible to re7 ceive a grant under this section for activities de8 scribed in this subsection, an eligible entity shall be

9 a State or local entity.

10 (3) APPLICATION.—To be eligible to receive a

11 grant under this section for activities described in

12 this subsection, an eligible entity shall submit an ap13 plication to the Federal Partnership at such time, in

14 such manner, and containing such information as the

15 Federal Partnership determines to be appropriate.

16 (c) DISASTER RELIEF EMPLOYMENT ASSISTANCE.—

17 (1) IN GENERAL.—Funds made available under

18 this section to officers described in this subsection

19 shall be used solely to provide individuals in a disas20 ter area with employment in projects to provide cloth21 ing, shelter, and other humanitarian assistance for

22 disaster victims and in projects regarding the demoli23 tion, cleanup, repair, renovation, and reconstruction

24 of damaged and destroyed structures, facilities, and

25 lands located within the disaster area.
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1 (2) OFFICERS.—To be eligible to receive a grant

2 under this section for activities described in this sub3 section, an officer shall be a chief executive officer of

4 a State within which is located an area that has suf5 fered an emergency or a major disaster as defined in

6 paragraph (1) or (2), respectively, of section 102 of

7 the Robert T. Stafford Disaster Relief and Emergency

8 Assistance Act (42 U.S.C. 5122(1) and (2)) (referred

9 to in this section as a ‘‘disaster area’’).

10 SEC. 185. NATIONAL CENTER FOR RESEARCH IN EDU11 CATION AND WORKFORCE DEVELOPMENT.

12 (a) GRANTS AUTHORIZED.—From amounts made

13 available under section 124(b)(7), the Secretary of Labor

14 and the Secretary of Education, acting jointly on the advice

15 of the Federal Partnership, are authorized to award a

16 grant, on a competitive basis, to an institution of higher

17 education, public or private nonprofit organization or

18 agency, or a consortium of such institutions, organizations,

19 or agencies, to enable such institution, organization, agen20 cy, or consortium to establish a national center to carry

21 out the activities described in subsection (b).

22 (b) AUTHORIZED ACTIVITIES.—Grant funds made

23 available under this section shall be used by the national

24 center assisted under subsection (a)—
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1 (1) to increase the effectiveness and improve the

2 implementation of workforce development programs,

3 including conducting research and development and

4 providing technical assistance with respect to—

5 (A) combining academic and vocational

6 education;

7 (B) connecting classroom instruction with

8 work-based learning;

9 (C) creating a continuum of educational

10 programs that provide multiple exit points for

11 employment, which may include changes or de12 velopment of instructional materials or curricu13 lum;

14 (D) establishing high quality support serv15 ices for all students to ensure access to workforce

16 development programs, educational success, and

17 job placement assistance;

18 (E) developing new models for remediation

19 of basic academic skills;

20 (F) identifying ways to establish links

21 among educational and job training programs at

22 the State and local levels;

23 (G) developing new models for career guid24 ance, career information, and counseling serv25 ices;
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1 (H) identifying economic and labor market

2 changes that will affect workforce needs;

3 (I) developing model programs for the tran4 sition of members of the Armed Forces from

5 military service to civilian employment;

6 (J) conducting preparation of teachers,

7 counselors, administrators, other professionals,

8 and volunteers, who work with programs funded

9 under this title; and

10 (K) obtaining information on practices in

11 other countries that may be adapted for use in

12 the United States;

13 (2) to provide assistance to States and local re14 cipients of assistance under this title in developing

15 and using systems of performance measures and

16 standards for improvement of programs and services;

17 and

18 (3) to maintain a clearinghouse that will pro19 vide data and information to Federal, State, and

20 local organizations and agencies about the condition

21 of statewide systems and programs funded under this

22 title, which data and information shall be dissemi23 nated in a form that is useful to practitioners and

24 policymakers.
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1 (c) OTHER ACTIVITIES.—The Federal Partnership

2 may request that the national center assisted under sub3 section (a) conduct activities not described in subsection (b),

4 or study topics not described in subsection (b), as the Fed5 eral Partnership determines to be necessary to carry out

6 this title.

7 (d) IDENTIFICATION OF CURRENT NEEDS.—The na8 tional center assisted under subsection (a) shall identify

9 current needs (as of the date of the identification) for re10 search and technical assistance through a variety of sources

11 including a panel of Federal, State, and local level practi12 tioners.

13 (e) SUMMARY REPORT.—The national center assisted

14 under subsection (a) shall annually prepare and submit to

15 the Federal Partnership and the Committee on Economic

16 and Educational Opportunities of the House of Representa17 tives and the Committee on Labor and Human Resources

18 of the Senate a report summarizing the research findings

19 obtained, and the results of development and technical as20 sistance activities carried out, under this section.

21 (f) TRANSITION PERIOD.—Notwithstanding any other

22 provision of law, the Secretary of Labor and the Secretary

23 of Education, acting jointly on the advice of the Federal

24 Partnership, may use funds made available under section

25 404 of the Carl D. Perkins Vocational and Applied Tech-
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1 nology Education Act (20 U.S.C. 2404) to prepare, during

2 the period beginning on January 1, 1998, and ending June

3 30, 1998, to award a grant under subsection (a) on July

4 1, 1998.

5 (g) DEFINITION.—As used in this section, the term

6 ‘‘institution of higher education’’ has the meaning given the

7 term in section 1201(a) of the Higher Education Act of

8 1965 (20 U.S.C. 1141(a)).

9 (h) CONFORMING AMENDMENTS.—Section 404(a)(2) of

10 the Carl D. Perkins Vocational and Applied Technology

11 Education Act (20 U.S.C. 2404(a)(2)) is amended—

12 (1) in subparagraph (A), by striking ‘‘for a pe13 riod of 5 years’’ and inserting ‘‘until June 30, 1998’’;

14 and

15 (2) in the first sentence of subparagraph (B), by

16 striking ‘‘5’’.

17 (i) EFFECTIVE DATE.—

18 (1) IN GENERAL.—Except as provided in para19 graphs (2) and (3), this section shall take effect on

20 July 1, 1998.

21 (2) TRANSITION PROVISIONS.—Subsection (f)

22 shall take effect on January 1, 1998.

23 (3) AMENDMENTS.—The amendments made by

24 subsection (h) shall take effect on the date of enact25 ment of this Act.
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1 SEC. 186. NATIONAL ASSESSMENT OF VOCATIONAL EDU2 CATION PROGRAMS.

3 (a) IN GENERAL.—The Secretary of Education (re4 ferred to in this section as the ‘‘Secretary’’) shall conduct

5 a national assessment of vocational education programs as6 sisted under this title, through studies and analyses con7 ducted independently through competitive awards.

8 (b) INDEPENDENT ADVISORY PANEL.—The Secretary

9 shall appoint an independent advisory panel, consisting of

10 vocational education administrators, educators, researchers,

11 and representatives of business, industry, labor, career

12 guidance and counseling professionals, and other relevant

13 groups, to advise the Secretary on the implementation of

14 such assessment, including the issues to be addressed and

15 the methodology of the studies involved, and the findings

16 and recommendations resulting from the assessment. The

17 panel, in the discretion of the panel, may submit to the

18 Committee on Economic and Educational Opportunities of

19 the House of Representatives, the Committee on Labor and

20 Human Resources of the Senate, and the Federal Partner21 ship an independent analysis of the findings and rec22 ommendations resulting from the assessment. The Federal

23 Advisory Committee Act (5 U.S.C. App.) shall not apply

24 to the panel established under this subsection.

25 (c) CONTENTS.—The assessment required under sub26 section (a) shall include descriptions and evaluations of—
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1 (1) the effect of this title on State and tribal ad2 ministration of vocational education programs and

3 on local vocational education practices, including the

4 capacity of State, tribal, and local vocational edu5 cation systems to address the purposes of this title;

6 (2) expenditures at the Federal, State, tribal,

7 and local levels to address program improvement in

8 vocational education, including the impact of Federal

9 allocation requirements (such as within-State dis10 tribution formulas) on the delivery of services;

11 (3) preparation and qualifications of teachers of

12 vocational and academic curricula in vocational edu13 cation programs, as well as shortages of such teachers;

14 (4) participation in vocational education pro15 grams;

16 (5) academic and employment outcomes of voca17 tional education, including analyses of—

18 (A) the effect of educational reform on voca19 tional education;

20 (B) the extent and success of integration of

21 academic and vocational curricula;

22 (C) the success of the school-to-work transi23 tion; and

24 (D) the degree to which vocational training

25 is relevant to subsequent employment;
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1 (6) employer involvement in, and satisfaction

2 with, vocational education programs;

3 (7) the effect of benchmarks, performance meas4 ures, and other measures of accountability on the de5 livery of vocational education services; and

6 (8) the degree to which minority students are in7 volved in vocational student organizations.

8 (d) CONSULTATION.—

9 (1) IN GENERAL.—The Secretary shall consult

10 with the Committee on Economic and Educational

11 Opportunities of the House of Representatives and the

12 Committee on Labor and Human Resources of the

13 Senate in the design and implementation of the as14 sessment required under subsection (a).

15 (2) REPORTS.—The Secretary shall submit to the

16 Committee on Economic and Educational Opportuni17 ties of the House of Representatives, the Committee on

18 Labor and Human Resources of the Senate, and the

19 Federal Partnership—

20 (A) an interim report regarding the assess21 ment on or before January 1, 2000; and

22 (B) a final report, summarizing all studies

23 and analyses that relate to the assessment and

24 that are completed after the assessment, on or be25 fore July 1, 2000.
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1 (3) PROHIBITION.—Notwithstanding any other

2 provision of law or regulation, the reports required by

3 this subsection shall not be subject to any review out4 side of the Department of Education before their

5 transmittal to the Committee on Economic and Edu6 cational Opportunities of the House of Representa7 tives, the Committee on Labor and Human Resources

8 of the Senate, and the Federal Partnership, but the

9 President, the Secretary, the Federal Partnership, and

10 the independent advisory panel established under sub11 section (b) may make such additional recommenda12 tions to Congress with respect to the assessment as the

13 President, the Secretary, the Federal Partnership, or

14 the panel determine to be appropriate.

15 (e) EFFECTIVE DATE.—This section shall take effect on

16 July 1, 1998.

17 SEC. 187. TRANSFERS TO FEDERAL PARTNERSHIP.

18 (a) DEFINITIONS.—For purposes of this section, unless

19 otherwise provided or indicated by the context—

20 (1) the term ‘‘Federal agency’’ has the meaning

21 given to the term ‘‘agency’’ by section 551(1) of title

22 5, United States Code;

23 (2) the term ‘‘function’’ means any duty, obliga24 tion, power, authority, responsibility, right, privilege,

25 activity, or program; and
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1 (3) the term ‘‘office’’ includes any office, admin2 istration, agency, institute, unit, organizational en3 tity, or component thereof.

4 (b) TRANSFER OF FUNCTIONS.—There are transferred

5 to the appropriate Secretary in the Federal Partnership,

6 in accordance with subsection (c), all functions that the Sec7 retary of Labor or the Secretary of Education exercised be8 fore the effective date of this section (including all related

9 functions of any officer or employee of the Department of

10 Labor or the Department of Education) that relate to a cov11 ered activity and that are minimally necessary to carry

12 out the functions of the Federal Partnership. The authority

13 of a transferred employee to carry out a function that re14 lates to a covered activity shall terminate on July 1, 1998.

15 (c) TRANSITION WORKPLAN.—

16 (1) IN GENERAL.—Not later than 180 days after

17 the date of enactment of this Act, the Secretary of

18 Labor and the Secretary of Education shall prepare

19 and submit to the National Board a proposed

20 workplan as described in paragraph (2). The Sec21 retary of Labor and the Secretary of Education shall

22 also submit the plan to the President, the Committee

23 on Economic and Educational Opportunities of the

24 House of Representatives, and the Committee on
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1 Labor and Human Resources of the Senate for review

2 and comment.

3 (2) CONTENTS.—The proposed workplan shall

4 include, at a minimum—

5 (A) an analysis of the functions that officers

6 and employees of the Department of Labor and

7 the Department of Education carry out (as of the

8 date of the submission of the workplan) that re9 late to a covered activity;

10 (B) information on the levels of personnel

11 and funding used to carry out the functions (as

12 of such date);

13 (C) a determination of the functions de14 scribed in subparagraph (A) that are minimally

15 necessary to carry out the functions of the Fed16 eral Partnership;

17 (D) information on the levels of personnel

18 and other resources that are minimally necessary

19 to carry out the functions of the Federal Partner20 ship;

21 (E) a determination of the manner in

22 which the Secretary of Labor and the Secretary

23 of Education will provide personnel and other

24 resources of the Department of Labor and the
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1 Department of Education for the Federal Part2 nership;

3 (F) a determination of the appropriate Sec4 retary to receive the personnel, resources, and re5 lated items to be transferred under this section,

6 based on factors including increased efficiency

7 and elimination of duplication of functions;

8 (G) a determination of the proposed organi9 zational structure for the Federal Partnership;

10 and

11 (H) a determination of the manner in

12 which the Secretary of Labor and the Secretary

13 of Education, acting jointly through the Federal

14 Partnership, will carry out their duties and re15 sponsibilities under this Act (other than subtitle

16 B) and the amendments made by this Act.

17 (3) REVIEW BY NATIONAL BOARD.—

18 (A) IN GENERAL.—Not later than 45 days

19 after the date of submission of the proposed

20 workplan under paragraph (1), the National

21 Board shall—

22 (i) review and concur with the

23 workplan; or

24 (ii) reject the workplan and prepare

25 and submit to the President a revised
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1 workplan that contains the analysis, infor2 mation, and determinations described in

3 paragraph (2).

4 (B) FUNCTIONS TRANSFERRED.—If the Na5 tional Board concurs with the proposed

6 workplan, the functions described in paragraph

7 (2)(C), as determined in the workplan, shall be

8 transferred under subsection (b).

9 (4) REVIEW BY THE PRESIDENT.—

10 (A) IN GENERAL.—Not later than 30 days

11 after the date of submission of a revised

12 workplan under paragraph (3)(A)(ii), the Presi13 dent shall—

14 (i) review and approve the workplan;

15 or

16 (ii) reject the workplan and prepare an

17 alternative workplan that contains the

18 analysis, information, and determinations

19 described in paragraph (2).

20 (B) FUNCTIONS TRANSFERRED.—If the

21 President approves the revised workplan, or pre22 pares the alternative workplan, the functions de23 scribed in paragraph (2)(C), as determined in

24 such revised or alternative workplan, shall be

25 transferred under subsection (b).
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1 (C) SPECIAL RULE.—If the President takes

2 no action on the revised workplan submitted

3 under paragraph (3)(A)(ii) within the 30-day

4 period described in subparagraph (A), the Sec5 retary of Labor, the Secretary of Education, and

6 the National Board may attempt to reach agree7 ment on a compromise workplan. If the Sec8 retary of Labor, the Secretary of Education, and

9 the National Board reach such agreement, the

10 functions described in paragraph (2)(C), as de11 termined in such compromise workplan, shall be

12 transferred under subsection (b). If, after an ad13 ditional 15-day period, the Secretary of Labor,

14 the Secretary of Education and the National

15 Board are unable to reach such agreement, the

16 revised workplan shall be deemed to be approved

17 and shall take effect on the day after the end of

18 such period. The functions described in para19 graph (2)(C), as determined in the revised

20 workplan, shall be transferred under subsection

21 (b).

22 (5) DETERMINATION BY PRESIDENT.—

23 (A) IN GENERAL.—In the event that the

24 Secretary of Labor and the Secretary of Edu25 cation fail to reach agreement regarding, and
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1 submit, a proposed workplan described in para2 graph (2), the President shall make the deter3 minations described in paragraph (2)(C). The

4 President shall delegate full responsibility for ad5 ministration described in section 181(b) (other

6 than the administration of subtitle B) to 1 of the

7 2 Secretaries. Such Secretary shall be considered

8 to be the appropriate Secretary for purposes of

9 such administration (other than the administra10 tion of subtitle B) and shall have authority to

11 carry out any function that the Secretaries

12 would otherwise be authorized to carry out joint13 ly.

14 (B) TRANSFERS.—The functions described

15 in paragraph (2)(C), as determined by the Presi16 dent under subparagraph (A), shall be trans17 ferred under subsection (b). All positions of per18 sonnel that relate to a covered activity and that,

19 prior to the transfer, were within the department

20 headed by the other of the 2 Secretaries shall be

21 separated from service as provided in subsection

22 (i)(2)(A).

23 (d) DELEGATION AND ASSIGNMENT.—Except where

24 otherwise expressly prohibited by law or otherwise provided

25 by this section, the National Board may delegate any func-
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1 tion transferred or granted to the Federal Partnership after

2 the effective date of this section to such officers and employ3 ees of the Federal Partnership as the National Board may

4 designate, and may authorize successive redelegations of

5 such functions as may be necessary or appropriate. No dele6 gation of functions by the National Board under this sub7 section or under any other provision of this section shall

8 relieve such National Board of responsibility for the admin9 istration of such functions.

10 (e) REORGANIZATION.—The National Board may allo11 cate or reallocate any function transferred or granted to the

12 Federal Partnership after the effective date of this section

13 among the officers of the Federal Partnership, and establish,

14 consolidate, alter, or discontinue such organizational enti15 ties in the Federal Partnership as may be necessary or ap16 propriate.

17 (f) RULES.—The Secretary of Labor and the Secretary

18 of Education, acting jointly on the advice of the Federal

19 Partnership, may prescribe, in accordance with the provi20 sions of chapters 5 and 6 of title 5, United States Code,

21 such rules and regulations as the Secretary of Labor and

22 the Secretary of Education, acting jointly on the advice of

23 the Federal Partnership, determine to be necessary or ap24 propriate to administer and manage the functions of the

25 Federal Partnership.
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1 (g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS

2 AND PERSONNEL.—

3 (1) IN GENERAL.—Except as otherwise provided

4 in this section, the personnel employed in connection

5 with, and the assets, liabilities, contracts, property,

6 records, and unexpended balances of appropriations,

7 authorizations, allocations, and other funds employed,

8 used, held, arising from, available to, or to be made

9 available in connection with the functions transferred

10 by this section, subject to section 1531 of title 31,

11 United States Code, shall be transferred to the appro12 priate Secretary in the Federal Partnership. Unex13 pended funds transferred pursuant to this subsection

14 shall be used only to carry out the functions of the

15 Federal Partnership.

16 (2) EXISTING FACILITIES AND OTHER FEDERAL

17 RESOURCES.—Pursuant to paragraph (1), the Sec18 retary of Labor and the Secretary of Education shall

19 supply such office facilities, office supplies, support

20 services, and related expenses as may be minimally

21 necessary to carry out the functions of the Federal

22 Partnership. None of the funds made available under

23 this title may be used for the construction of office fa24 cilities for the Federal Partnership.
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1 (h) INCIDENTAL TRANSFERS.—The Director of the Of2 fice of Management and Budget, at such time or times as

3 the Director shall provide, may make such determinations

4 as may be necessary with regard to the functions transferred

5 by this section, and to make such additional incidental dis6 positions of personnel, assets, liabilities, grants, contracts,

7 property, records, and unexpended balances of appropria8 tions, authorizations, allocations, and other funds held,

9 used, arising from, available to, or to be made available

10 in connection with such functions, as may be necessary to

11 carry out the provisions of this section. The Director of the

12 Office of Management and Budget shall provide for the ter13 mination of the affairs of all entities terminated by this

14 section and for such further measures and dispositions as

15 may be necessary to effectuate the objectives of this section.

16 (i) EFFECT ON PERSONNEL.—

17 (1) TERMINATION OF CERTAIN POSITIONS.—Posi18 tions whose incumbents are appointed by the Presi19 dent, by and with the advice and consent of the Sen20 ate, the functions of which are transferred by this sec21 tion, shall terminate on the effective date of this sec22 tion.

23 (2) ACTIONS.—

24 (A) IN GENERAL.—The Secretary of Labor

25 and the Secretary of Education shall take such
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1 actions as may be necessary, including reduction

2 in force actions, consistent with sections 3502

3 and 3595 of title 5, United States Code, to en4 sure that the positions of personnel that relate to

5 a covered activity and are not transferred under

6 subsection (b) are separated from service.

7 (B) SCOPE.—

8 (i) INITIAL REDUCTIONS.—Not later

9 than the date of the transfer under sub10 section (b), the Secretary of Labor and the

11 Secretary of Education shall take the ac12 tions described in subparagraph (A) with

respect to not less than 1 13 ⁄3 of the number of

14 positions of personnel that relate to a cov15 ered activity.

16 (ii) SUBSEQUENT REDUCTIONS.—Not

17 later than 5 years after the date of the

18 transfer under subsection (b), the Secretary

19 of Labor and the Secretary of Education

20 shall take the actions described in subpara21 graph (A)—

22 (I) with respect to not less than

23 60 percent of the number of positions

24 of personnel that relate to a covered ac25 tivity, unless the Secretaries submit
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1 (prior to the end of such 5-year period)

2 a report to Congress demonstrating

3 why such actions have not occurred; or

4 (II) with respect to not less than

5 40 percent of the number of positions

6 of personnel that relate to a covered ac7 tivity, if the Secretaries make the de8 termination and submit the report re9 ferred to in subclause (I).

10 (iii) CALCULATION.—For purposes of

11 calculating, under this subparagraph, the

12 number of positions of personnel that relate

13 to a covered activity, such number shall in14 clude the number of positions of personnel

15 who are separated from service under sub16 paragraph (A).

17 (j) SAVINGS PROVISIONS.—

18 (1) SUITS NOT AFFECTED.—The provisions of

19 this section shall not affect suits commenced before the

20 effective date of this section, and in all such suits,

21 proceedings shall be had, appeals taken, and judg22 ments rendered in the same manner and with the

23 same effect as if this section had not been enacted.

24 (2) NONABATEMENT OF ACTIONS.—No suit, ac25 tion, or other proceeding commenced by or against the
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1 Department of Labor or the Department of Edu2 cation, or by or against any individual in the official

3 capacity of such individual as an officer of the De4 partment of Labor or the Department of Education,

5 shall abate by reason of the enactment of this section.

6 (k) TRANSITION.—The National Board may utilize—

7 (1) the services of officers, employees, and other

8 personnel of the Department of Labor or the Depart9 ment of Education, other than personnel of the Fed10 eral Partnership, with respect to functions transferred

11 to the Federal Partnership by this section; and

12 (2) funds appropriated to such functions;

13 for such period of time as may reasonably be needed to fa14 cilitate the orderly implementation of this section.

15 (l) REFERENCES.—A reference in any other Federal

16 law, Executive order, rule, regulation, or delegation of au17 thority, or any document of or relating to—

18 (1) the Secretary of Labor or the Secretary of

19 Education with regard to functions transferred under

20 subsection (b), shall be deemed to refer to the Federal

21 Partnership; and

22 (2) the Department of Labor or the Department

23 of Education with regard to functions transferred

24 under subsection (b), shall be deemed to refer to the

25 Federal Partnership.
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1 (m) ADDITIONAL CONFORMING AMENDMENTS.—

2 (1) RECOMMENDED LEGISLATION.—After con3 sultation with the appropriate committees of Congress

4 and the Director of the Office of Management and

5 Budget, the Federal Partnership shall prepare and

6 submit to Congress recommended legislation contain7 ing technical and conforming amendments to reflect

8 the changes made by this section.

9 (2) SUBMISSION TO CONGRESS.—Not later than

10 March 31, 1997, the Federal Partnership shall submit

11 the recommended legislation referred to in paragraph

12 (1).

13 (n) EFFECTIVE DATE.—

14 (1) IN GENERAL.—Except as provided in para15 graphs (2) and (3), this section shall take effect on

16 June 30, 1998.

17 (2) REGULATIONS AND CONFORMING AMEND18 MENTS.—Subsections (f) and (m) shall take effect on

19 September 30, 1996.

20 (3) WORKPLAN.—Subsection (c) shall take effect

21 on the date of enactment of this Act.

22 SEC. 188. TRANSFERS TO OTHER FEDERAL AGENCIES AND

23 OFFICES.

24 (a) TRANSFER.—There are transferred to the appro25 priate receiving agency, in accordance with subsection (b),
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1 all functions that the Secretary of Labor, acting through

2 the Employment and Training Administration, or the Sec3 retary of Education, acting through the Office of Vocational

4 and Adult Education, exercised before the effective date of

5 this section (including all related functions of any officer

6 or employee of the Employment and Training Administra7 tion or the Office of Vocational and Adult Education) that

8 do not relate to a covered activity.

9 (b) DETERMINATIONS OF FUNCTIONS AND APPRO10 PRIATE RECEIVING AGENCIES.—

11 (1) TRANSITION WORKPLAN.—Not later than 180

12 days after the date of enactment of this Act, the Sec13 retary of Labor and the Secretary of Education shall

14 prepare and submit to the President a proposed

15 workplan that specifies the steps that the Secretaries

16 will take, during the period ending on July 1, 1998,

17 to carry out the transfer described in subsection (a).

18 (2) CONTENTS.—The proposed workplan shall

19 include, at a minimum—

20 (A) a determination of the functions that of21 ficers and employees of the Employment and

22 Training Administration and the Office of Voca23 tional and Adult Education carry out (as of the

24 date of the submission of the workplan) that do

25 not relate to a covered activity; and
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1 (B) a determination of the appropriate re2 ceiving agencies for the functions, based on fac3 tors including increased efficiency and elimi4 nation of duplication of functions.

5 (3) REVIEW.—

6 (A) IN GENERAL.—Not later than 45 days

7 after the date of submission of the proposed

8 workplan under paragraph (1), the President

9 shall—

10 (i) review and approve the workplan

11 and submit the workplan to the Committee

12 on Economic and Educational Opportuni13 ties of the House of Representatives and the

14 Committee on Labor and Human Resources

15 of the Senate; or

16 (ii) reject the workplan, prepare an al17 ternative workplan that contains the deter18 minations described in paragraph (2), and

19 submit the alternative workplan to the Com20 mittee on Economic and Educational Op21 portunities of the House of Representatives

22 and the Committee on Labor and Human

23 Resources of the Senate.

24 (B) FUNCTIONS TRANSFERRED.—If the

25 President approves the proposed workplan, or
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1 prepares the alternative workplan, the functions

2 described in paragraph (2)(A), as determined in

3 such proposed or alternative workplan, shall be

4 transferred under subsection (a) to the appro5 priate receiving agencies described in paragraph

6 (2)(B), as determined in such proposed or alter7 native workplan.

8 (C) SPECIAL RULE.—If the President takes

9 no action on the proposed workplan submitted

10 under paragraph (1) within the 45-day period

11 described in subparagraph (A), such workplan

12 shall be deemed to be approved and shall take ef13 fect on the day after the end of such period. The

14 functions described in paragraph (2)(A), as de15 termined in the proposed workplan, shall be

16 transferred under subsection (a) to the appro17 priate receiving agencies described in paragraph

18 (2)(B), as determined in the proposed workplan.

19 (4) REPORT.—Not later than July 1, 1998, the

20 Secretary of Labor and the Secretary of Education

21 shall submit to the appropriate committees of Con22 gress information on the transfers required by this

23 section.

24 (c) APPLICATION OF AUTHORITIES.—

25 (1) IN GENERAL.—
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1 (A) APPLICATION.—Subsection (a), and

2 subsections (d) through (m), of section 187 (other

3 than subsections (f), (g)(2), (i)(2), and (m)) shall

4 apply to transfers under this section, in the same

5 manner and to the same extent as the subsections

6 apply to transfers under section 187.

7 (B) REGULATIONS AND CONFORMING

8 AMENDMENTS.—Subsections (f) and (m) of sec9 tion 187 shall apply to transfers under this sec10 tion, in the same manner and to the same extent

11 as the subsections apply to transfers under sec12 tion 187.

13 (2) REFERENCES.—For purposes of the applica14 tion of the subsections described in paragraph (1)

15 (other than subsections (g)(2) and (i)(2) of section

16 187) to transfers under this section—

17 (A) references to the Federal Partnership

18 shall be deemed to be references to the appro19 priate receiving agency, as determined in the ap20 proved or alternative workplan referred to in

21 subsection (b)(3);

22 (B) references to the Secretary of Labor and

23 the Secretary of Education, the Director, or the

24 National Board shall be deemed to be references
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1 to the head of the appropriate receiving agency;

2 and

3 (C) references to transfers in section 187

4 shall be deemed to include transfers under this

5 section.

6 (3) ADMINISTRATION.—Unexpended funds trans7 ferred pursuant to this section shall be used only for

8 the purposes for which the funds were originally au9 thorized and appropriated.

10 (4) CONTINUING EFFECT OF LEGAL DOCU11 MENTS.—All orders, determinations, rules, regula12 tions, permits, agreements, grants, contracts, certifi13 cates, licenses, registrations, privileges, and other ad14 ministrative actions—

15 (A) that have been issued, made, granted, or

16 allowed to become effective by the President, any

17 Federal agency or official of a Federal agency, or

18 by a court of competent jurisdiction, in the per19 formance of functions that are transferred under

20 this section; and

21 (B) that are in effect on the effective date of

22 this section or were final before the effective date

23 of this section and are to become effective on or

24 after the effective date of this section;
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1 shall continue in effect according to their terms until

2 modified, terminated, superseded, set aside, or revoked

3 in accordance with law by the President, the appro4 priate receiving agency or other authorized official, a

5 court of competent jurisdiction, or by operation of

6 law.

7 (5) PROCEEDINGS NOT AFFECTED.—

8 (A) IN GENERAL.—The provisions of this

9 section shall not affect any proceedings, includ10 ing notices of proposed rulemaking, or any ap11 plication for any license, permit, certificate, or

12 financial assistance pending before the Depart13 ment of Labor or the Department of Education

14 on the date this section takes effect, with respect

15 to functions transferred by this section.

16 (B) CONTINUATION.—Such proceedings and

17 applications shall be continued. Orders shall be

18 issued in such proceedings, appeals shall be

19 taken from the orders, and payments shall be

20 made pursuant to such orders, as if this section

21 had not been enacted, and orders issued in any

22 such proceedings shall continue in effect until

23 modified, terminated, superseded, or revoked by a

24 duly authorized official, by a court of competent

25 jurisdiction, or by operation of law.
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1 (C) CONSTRUCTION.—Nothing in this para2 graph shall be deemed to prohibit the discontinu3 ance or modification of any such proceeding

4 under the same terms and conditions and to the

5 same extent that such proceeding could have been

6 discontinued or modified if this section had not

7 been enacted.

8 (6) ADMINISTRATIVE ACTIONS RELATING TO PRO9 MULGATION OF REGULATIONS.—Any administrative

10 action relating to the preparation or promulgation of

11 a regulation by the Department of Labor or the De12 partment of Education relating to a function trans13 ferred under this section may be continued by the ap14 propriate receiving agency with the same effect as if

15 this section had not been enacted.

16 (d) CONSTRUCTION.—Nothing in this section shall be

17 construed to require the transfer of any function described

18 in subsection (b)(2)(A) to the Federal Partnership.

19 (e) EFFECTIVE DATE.—

20 (1) IN GENERAL.—Except as provided in para21 graphs (2) and (3), this section shall take effect on

22 June 30, 1998.

23 (2) REGULATIONS AND CONFORMING AMEND24 MENTS.—Subsection (c)(1)(B) shall take effect on Sep25 tember 30, 1996.
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1 (3) WORKPLAN.—Subsection (b) shall take effect

2 on the date of enactment of this Act.

3 SEC. 189. ELIMINATION OF CERTAIN OFFICES.

4 (a) TERMINATION.—The Office of Vocational and

5 Adult Education and the Employment and Training Ad6 ministration shall terminate on July 1, 1998.

7 (b) OFFICE OF VOCATIONAL AND ADULT EDU8 CATION.—

9 (1) TITLE 5, UNITED STATES CODE.—Section

10 5315 of title 5, United States Code, is amended by

11 striking ‘‘Assistant Secretaries of Education (10)’’

12 and inserting ‘‘Assistant Secretaries of Education

13 (9)’’.

14 (2) DEPARTMENT OF EDUCATION ORGANIZATION

15 ACT.—

16 (A) Section 202 of the Department of Edu17 cation Organization Act (20 U.S.C. 3412) is

18 amended—

19 (i) in subsection (b)(1)—

20 (I) by striking subparagraph (C);

21 and

22 (II) by redesignating subpara23 graphs (D) through (F) as subpara24 graphs (C) through (E), respectively;

25 (ii) by striking subsection (h); and
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1 (iii) by redesignating subsection (i) as

2 subsection (h).

3 (B) Section 206 of such Act (20 U.S.C.

4 3416) is repealed.

5 (C) Section 402(c)(1) of the Improving

6 America’s Schools Act of 1994 (20 U.S.C.

7 9001(c)(1)) is amended by striking ‘‘established

8 under’’ and all that follows and inserting a

9 semicolon.

10 (3) GOALS 2000: EDUCATE AMERICA ACT.—Sec11 tion 931(h)(3)(A) of the Goals 2000: Educate America

12 Act (20 U.S.C. 6031(h)(3)(A)) is amended—

13 (A) by striking clause (iii); and

14 (B) by redesignating clauses (iv) and (v) as

15 clauses (iii) and (iv), respectively.

16 (c) EMPLOYMENT AND TRAINING ADMINISTRATION.—

17 (1) TITLE 5, UNITED STATES CODE.—Section

18 5315 of title 5, United States Code, is amended by

19 striking ‘‘Assistant Secretaries of Labor (10)’’ and in20 serting ‘‘Assistant Secretaries of Labor (9)’’.

21 (2) VETERANS’ BENEFITS AND PROGRAMS IM22 PROVEMENT ACT OF 1988.—Section 402(d)(3) of the

23 Veterans’ Benefits and Programs Improvement Act of

24 1988 (29 U.S.C. 1721 note) is amended by striking

25 ‘‘and under any other program administered by the
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1 Employment and Training Administration of the De2 partment of Labor’’.

3 (3) TITLE 38, UNITED STATES CODE.—Section

4 4110(d) of title 38, United States Code, is amended—

5 (A) by striking paragraph (7); and

6 (B) by redesignating paragraphs (8)

7 through (12) as paragraphs (7) through (11), re8 spectively.

9 (4) NATIONAL AND COMMUNITY SERVICE ACT OF

10 1990.—The last sentence of section 162(b) of the Na11 tional and Community Service Act of 1990 (42

12 U.S.C. 12622(b)) is amended by striking ‘‘or the Of13 fice of Job Training’’.

14 (d) UNITED STATES EMPLOYMENT SERVICE.—

15 (1) TITLE 5, UNITED STATES CODE.—Section

16 3327 of title 5, United States Code, is amended—

17 (A) in subsection (a), by striking ‘‘the em18 ployment offices of the United States Employ19 ment Service’’ and inserting ‘‘Governors’’; and

20 (B) in subsection (b), by striking ‘‘of the

21 United States Employment Service’’.

22 (2) TITLE 10, UNITED STATES CODE.—

23 (A) Section 1143a(d) of title 10, United

24 States Code, is amended by striking paragraph

25 (3).
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1 (B) Section 2410k(b) of title 10, United

2 States Code, is amended by striking ‘‘, and

3 where appropriate the Interstate Job Bank (es4 tablished by the United States Employment

5 Service),’’.

6 (3) INTERNAL REVENUE CODE OF 1986.—Section

7 51 of the Internal Revenue Code of 1986 is amended

8 by striking subsection (g).

9 (4) NATIONAL DEFENSE AUTHORIZATION ACT

10 FOR FISCAL YEAR 1993.—Section 4468 of the National

11 Defense Authorization Act for Fiscal Year 1993 (29

12 U.S.C. 1662d–1 note) is repealed.

13 (5) TITLE 38, UNITED STATES CODE.—Section

14 4110(d) of title 38, United States Code (as amended

15 by subsection (c)(3)), is further amended—

16 (A) by striking paragraph (10); and

17 (B) by redesignating paragraph (11) as

18 paragraph (10).

19 (6) TITLE 39, UNITED STATES CODE.—

20 (A) Section 3202(a)(1) of title 39, United

21 States Code is amended—

22 (i) in subparagraph (D), by striking

23 the semicolon and inserting ‘‘; and’’;

24 (ii) by striking subparagraph (E); and
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1 (iii) by redesignating subparagraph

2 (F) as subparagraph (E).

3 (B) Section 3203(b) of title 39, United

4 States Code, is amended by striking ‘‘(1)(E), (2),

5 and (3)’’ and inserting ‘‘(2) and (3)’’.

6 (C) Section 3206(b) of title 39, United

7 States Code, is amended by striking ‘‘(1)(F)’’

8 and inserting ‘‘(1)(E)’’.

9 (7) NATIONAL AND COMMUNITY SERVICE ACT OF

10 1990.—Section 162(b) of the National and Community

11 Service Act of 1990 (42 U.S.C. 12622(b)) (as amend12 ed by subsection (c)(4)) is further amended by strik13 ing the last sentence.

14 (e) REORGANIZATION PLANS.—Except with respect to

15 functions transferred under section 188, the authority

16 granted to the Employment and Training Administration,

17 the Office of Vocational and Adult Education, or any unit

18 of the Employment and Training Administration or the Of19 fice of Vocational and Adult Education by any reorganiza20 tion plan shall terminate on July 1, 1998.
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1 Subtitle E—Repeals of Employment

2 and Training and Vocational

3 and Adult Education Programs

4 SEC. 191. REPEALS.

5 (a) IMMEDIATE REPEALS.—The following provisions

6 are repealed:

7 (1) Section 204 of the Immigration Reform and

8 Control Act of 1986 (8 U.S.C. 1255a note).

9 (2) Title II of Public Law 95–250 (92 Stat.

10 172).

11 (3) The Displaced Homemakers Self-Sufficiency

12 Assistance Act (29 U.S.C. 2301 et seq.).

13 (4) Section 211 of the Appalachian Regional De14 velopment Act of 1965 (40 U.S.C. App. 211).

15 (5) Subtitle C of title VII of the Stewart B.

16 McKinney Homeless Assistance Act (42 U.S.C. 11441

17 et seq.).

18 (6) Section 5322 of title 49, United States Code.

19 (7) Subchapter I of chapter 421 of title 49, Unit20 ed States Code.

21 (b) SUBSEQUENT REPEALS.—The following provisions

22 are repealed:

23 (1) The Adult Education Act (20 U.S.C. 1201 et

24 seq.).
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1 (2) The Carl D. Perkins Vocational and Applied

2 Technology Education Act (20 U.S.C. 2301 et seq.).

3 (3) The School-to-Work Opportunities Act of

4 1994 (20 U.S.C. 6101 et seq.).

5 (4) The Job Training Partnership Act (29

6 U.S.C. 1501 et seq.).

7 (5) Title VII of the Stewart B. McKinney Home8 less Assistance Act (42 U.S.C. 11421 et seq.), other

9 than subtitle C of such title.

10 (c) EFFECTIVE DATES.—

11 (1) IMMEDIATE REPEALS.—The repeals made by

12 subsection (a) shall take effect on the date of enact13 ment of this Act.

14 (2) SUBSEQUENT REPEALS.—The repeals made

15 by subsection (b) shall take effect on July 1, 1998.

16 SEC. 192. CONFORMING AMENDMENTS.

17 (a) IMMEDIATE REPEALS.—

18 (1) REFERENCES TO SECTION 204 OF THE IMMI19 GRATION REFORM AND CONTROL ACT OF 1986.—The

20 table of contents for the Immigration Reform and

21 Control Act of 1986 is amended by striking the item

22 relating to section 204 of such Act.

23 (2) REFERENCES TO TITLE II OF PUBLIC LAW

24 95–250.—Section 103 of Public Law 95–250 (16

25 U.S.C. 79l) is amended—
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1 (A) by striking the second sentence of sub2 section (a); and

3 (B) by striking the second sentence of sub4 section (b).

5 (3) REFERENCES TO SUBTITLE C OF TITLE VII

6 OF THE STEWART B. MCKINNEY HOMELESS ASSIST7 ANCE ACT.—

8 (A) Section 762(a) of the Stewart B.

9 McKinney Homeless Assistance Act (42 U.S.C.

10 11472(a)) is amended—

11 (i) by striking ‘‘each of the following

12 programs’’ and inserting ‘‘the emergency

13 community services homeless grant program

14 established in section 751’’; and

15 (ii) by striking ‘‘tribes:’’ and all that

16 follows and inserting ‘‘tribes.’’.

17 (B) The table of contents of such Act is

18 amended by striking the items relating to sub19 title C of title VII of such Act.

20 (4) REFERENCES TO TITLE 49, UNITED STATES

21 CODE.—

22 (A) Sections 5313(b)(1) and 5314(a)(1) of

23 title 49, United States Code, are amended by

24 striking ‘‘5317, and 5322’’ and inserting ‘‘and

25 5317’’.
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1 (B) The table of contents for chapter 53 of

2 title 49, United States Code, is amended by

3 striking the item relating to section 5322.

4 (b) SUBSEQUENT REPEALS.—

5 (1) REFERENCES TO THE ADULT EDUCATION

6 ACT.—

7 (A) Subsection (b) of section 402 of the Ref8 ugee Education Assistance Act (8 U.S.C. 1522

9 note) is repealed.

10 (B) Paragraph (20) of section 3 of the Li11 brary Services and Construction Act (20 U.S.C.

12 351a(20)) is amended to read as follows:

13 ‘‘(20) The term ‘educationally disadvantaged

14 adult’ means an individual who—

15 ‘‘(A) is age 16 or older, or beyond the age

16 of compulsory school attendance under State law;

17 ‘‘(B) is not enrolled in secondary school;

18 ‘‘(C) demonstrates basic skills equivalent to

19 or below that of students at the fifth grade level;

20 or

21 ‘‘(D) has been placed in the lowest or begin22 ning level of an adult education program when

23 that program does not use grade level equiva24 lencies as a measure of students’ basic skills.’’.
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1 (C)(i) Section 1202(c)(1) of the Elementary

2 and Secondary Education Act of 1965 (20

3 U.S.C. 6362(c)(1)) is amended by striking

4 ‘‘Adult Education Act’’ and inserting ‘‘Workforce

5 Development Act of 1995’’.

6 (ii) Section 1205(8)(B) of such Act (20

7 U.S.C. 6365(8)(B)) is amended by striking

8 ‘‘Adult Education Act’’ and inserting ‘‘Workforce

9 Development Act of 1995’’.

10 (iii) Section 1206(a)(1)(A) of such Act (20

11 U.S.C. 6366(a)(1)(A)) is amended by striking

12 ‘‘an adult basic education program under the

13 Adult Education Act’’ and inserting ‘‘adult edu14 cation activities under the Workforce Develop15 ment Act of 1995’’.

16 (iv) Section 3113(1) of such Act (20 U.S.C.

17 6813(1)) is amended by striking ‘‘section 312 of

18 the Adult Education Act’’ and inserting ‘‘section

19 3 of the Workforce Development Act of 1995’’.

20 (v) Section 9161(2) of such Act (20 U.S.C.

21 7881(2)) is amended by striking ‘‘section 312(2)

22 of the Adult Education Act’’ and inserting ‘‘sec23 tion 3 of the Workforce Development Act of

24 1995’’.
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1 (D) Section 203(b)(8) of the Older Ameri2 cans Act (42 U.S.C. 3013(b)(8)) is amended by

3 striking ‘‘Adult Education Act’’ and inserting

4 ‘‘Workforce Development Act of 1995’’.

5 (2) REFERENCES TO THE CARL D. PERKINS VO6 CATIONAL AND APPLIED TECHNOLOGY EDUCATION

7 ACT.—

8 (A) Section 245A(h)(4)(C) of the Immigra9 tion and Nationality Act (8 U.S.C.

10 1255a(h)(4)(C)) is amended by striking ‘‘Voca11 tional Education Act of 1963’’ and inserting

12 ‘‘Workforce Development Act of 1995’’.

13 (B) Section 4461 of the National Defense

14 Authorization Act for Fiscal Year 1993 (10

15 U.S.C. 1143 note) is amended—

16 (i) by striking paragraph (4); and

17 (ii) by redesignating paragraphs (5)

18 and (6) as paragraphs (4) and (5), respec19 tively.

20 (C) Section 626(g) of the Individuals with

21 Disabilities Education Act (20 U.S.C. 1425(g))

22 is amended—

23 (i) by striking ‘‘1973,’’ and inserting

24 ‘‘1973 and’’; and
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1 (ii) by striking ‘‘, and the Carl D. Per2 kins Vocational and Applied Technology

3 Education Act’’.

4 (D) The Goals 2000: Educate America Act

5 (20 U.S.C. 5801 et seq.) is amended—

6 (i) in section 306 (20 U.S.C. 5886)—

7 (I) in subsection (c)(1)(A), by

8 striking all beginning with ‘‘which

9 process’’ through ‘‘Act’’ and inserting

10 ‘‘which process shall include coordina11 tion with the benchmarks described in

12 section 121(c)(2) of the Workforce De13 velopment Act of 1995’’; and

14 (II) in subsection (l), by striking

15 ‘‘Carl D. Perkins Vocational and Ap16 plied Technology Education Act’’ and

17 inserting ‘‘Workforce Development Act

18 of 1995’’; and

19 (ii) in section 311(b) (20 U.S.C.

20 5891(b)), by striking paragraph (6).

21 (E) The Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 6301 et seq.) is

23 amended—

24 (i) in section 1114(b)(2)(C)(v) (20

25 U.S.C. 6314(b)(2)(C)(v)), by striking ‘‘Carl
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1 D. Perkins Vocational and Applied Tech2 nology Education Act,’’ and inserting

3 ‘‘Workforce Development Act of 1995’’;

4 (ii) in section 9115(b)(5) (20 U.S.C.

5 7815(b)(5)), by striking ‘‘Carl D. Perkins

6 Vocational and Applied Technology Edu7 cation Act’’ and inserting ‘‘Workforce Devel8 opment Act of 1995’’;

9 (iii) in section 14302(a)(2) (20 U.S.C.

10 8852(a)(2))—

11 (I) by striking subparagraph (C);

12 and

13 (II) by redesignating subpara14 graphs (D), (E), and (F) as subpara15 graphs (C), (D), and (E), respectively;

16 and

17 (iv) in the matter preceding subpara18 graph (A) of section 14307(a)(1) (20 U.S.C.

19 8857(a)(1)), by striking ‘‘Carl D. Perkins

20 Vocational and Applied Technology Edu21 cation Act’’ and inserting ‘‘Workforce Devel22 opment Act of 1995’’.

23 (F) Section 533(c)(4)(A) of the Equity in

24 Educational Land-Grant Status Act of 1994 (7

25 U.S.C. 301 note) is amended by striking ‘‘(20
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1 U.S.C. 2397h(3)’’ and inserting ‘‘, as such sec2 tion was in effect on the day preceding the date

3 of enactment of the Workforce Development Act

4 of 1995’’.

5 (G) Section 563 of the Improving America’s

6 Schools Act of 1994 (20 U.S.C. 6301 note) is

7 amended by striking ‘‘the date of enactment of

8 an Act reauthorizing the Carl D. Perkins Voca9 tional and Applied Technology Education Act

10 (20 U.S.C. 2301 et seq.)’’ and inserting ‘‘July 1,

11 1998’’.

12 (H) Section 135(c)(3)(B) of the Internal

13 Revenue Code of 1986 (26 U.S.C. 135(c)(3)(B))

14 is amended—

15 (i) by striking ‘‘subparagraph (C) or

16 (D) of section 521(3) of the Carl D. Perkins

17 Vocational Education Act’’ and inserting

18 ‘‘subparagraph (C) or (D) of section 3(3) of

19 the Workforce Development Act of 1995’’;

20 and

21 (ii) by striking ‘‘any State (as defined

22 in section 521(27) of such Act)’’ and insert23 ing ‘‘any State or outlying area (as the

24 terms ‘State’ and ‘outlying area’ are defined

25 in section 3 of such Act)’’.
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1 (I) Section 214(c) of the Appalachian Re2 gional Development Act of 1965 (40 U.S.C. App.

3 214(c)) is amended by striking ‘‘Carl D. Perkins

4 Vocational Education Act’’ and inserting

5 ‘‘Workforce Development Act of 1995’’.

6 (J) Section 104 of the Vocational Education

7 Amendments of 1968 (82 Stat. 1091) is amended

8 by striking ‘‘section 3 of the Carl D. Perkins Vo9 cational Education Act’’ and inserting ‘‘the

10 Workforce Development Act of 1995’’.

11 (K) The Older Americans Act of 1965 (42

12 U.S.C. 3001 et seq.) is amended—

13 (i) in section 502(b)(1)(N)(i) (42

14 U.S.C. 3056(b)(1)(N)(i)), by striking ‘‘or

15 the Carl D. Perkins Vocational and Applied

16 Technology Education Act (20 U.S.C. 2301

17 et seq.)’’; and

18 (ii) in section 505(d)(2) (42 U.S.C.

19 3056c(d)(2))—

20 (I) by striking ‘‘the Secretary of

21 Education’’ and inserting ‘‘the

22 Workforce Development Partnership’’;

23 (II) by striking ‘‘employment and

24 training programs’’ and inserting
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1 ‘‘workforce development activities’’;

2 and

3 (III) by striking ‘‘the Carl D.

4 Perkins Vocational and Applied Tech5 nology Education Act (20 U.S.C. 2301

6 et seq.)’’ and inserting ‘‘the Workforce

7 Development Act of 1995’’.

8 (3) SCHOOL-TO-WORK OPPORTUNITIES ACT OF

9 1994.—

10 (A) Section 1114(b)(2)(C)(v) of the Elemen11 tary and Secondary Education Act of 1965 (20

12 U.S.C. 6314(b)(2)(C)(v)) (as amended in para13 graph (2)(E)(i)) is further amended by striking

14 ‘‘the School-to-Work Opportunities Act of 1994,’’.

15 (B) Section 5204 of such Act (20 U.S.C.

16 7234) is amended—

17 (i) by striking paragraph (4); and

18 (ii) by redesignating paragraphs (5)

19 through (7) as paragraphs (4) through (6),

20 respectively.

21 (C) Section 9115(b)(5) of such Act (20

22 U.S.C. 7815(b)(5)) (as amended in paragraph

23 (2)(E)(ii)) is further amended by striking ‘‘the

24 School-to-Work Opportunities Act of 1994 and’’.
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1 (D) Section 14302(a)(2) of such Act (20

2 U.S.C. 8852(a)(2)) (as amended in paragraph

3 (2)(E)(iii)) is further amended—

4 (i) in subparagraph (C) (as redesig5 nated in such paragraph), by striking the

6 semicolon and inserting ‘‘; and’’;

7 (ii) by striking subparagraph (D) (as

8 redesignated in such paragraph); and

9 (iii) by redesignating subparagraph

10 (E) (as redesignated in such paragraph) as

11 subparagraph (D).

12 (E) Section 14307(a)(1) of such Act (20

13 U.S.C. 8857(a)(1)) (as amended in paragraph

14 (2)(E)(iv)) is further amended by striking ‘‘, the

15 School-to-Work Opportunities Act of 1994,’’.

16 (F) Section 14701(b)(1) of such Act (20

17 U.S.C. 8941(b)(1)) is amended—

18 (i) in subparagraph (B)(ii), by strik19 ing ‘‘, and the School-to-Work Opportuni20 ties Act of 1994, and be coordinated with

21 evaluations of such Acts’’ and inserting

22 ‘‘and be coordinated with evaluations of

23 such Act’’; and
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1 (ii) in subparagraph (C)(ii), by strik2 ing ‘‘, the School-to-Work Opportunities Act

3 of 1994,’’.

4 (4) JOB TRAINING PARTNERSHIP ACT.—

5 (A) Section 3502(d) of title 5, United States

6 Code, is amended—

7 (i) in paragraph (3)—

8 (I) in subparagraph (A), by strik9 ing clause (i) and inserting the follow10 ing:

11 ‘‘(i) the Governor of the appropriate State;

12 and’’; and

13 (II) in subparagraph (B)(iii), by

14 striking ‘‘other services under the Job

15 Training Partnership Act’’ and insert16 ing ‘‘other workforce development ac17 tivities under the Workforce Develop18 ment Act of 1995’’; and

19 (ii) in paragraph (4), in the second

20 sentence, by striking ‘‘Secretary of Labor on

21 matters relating to the Job Training Part22 nership Act’’ and inserting ‘‘Workforce De23 velopment Partnership on matters relating

24 to the Workforce Development Act of 1995’’.
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1 (B) Section 5(l) of the Food Stamp Act of

2 1977 (7 U.S.C. 2014(l)) is amended by striking

3 ‘‘Notwithstanding section 142(b) of the Job

4 Training Partnership Act (29 U.S.C. 1552(b)),

5 earnings to individuals participating in on-the6 job training programs under section

7 204(b)(1)(C) or section 264(c)(1)(A) of the Job

8 Training Partnership Act’’ and inserting ‘‘Earn9 ings to individuals participating in on-the-job

10 training under the Workforce Development Act of

11 1995’’.

12 (C) Section 6 of the Food Stamp Act of

13 1977 (7 U.S.C. 2015) is amended—

14 (i) in subsection (d)(4)(N), by striking

15 ‘‘the State public employment offices and

16 agencies operating programs under the Job

17 Training Partnership Act’’ and inserting

18 ‘‘the State employment service offices and

19 other State agencies and entities providing

20 workforce employment activities under the

21 Workforce Development Act of 1995’’; and

22 (ii) in subsection (e)(3), by striking

23 subparagraph (A) and inserting the follow24 ing:
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1 ‘‘(A) a program relating to workforce em2 ployment activities carried out under the

3 Workforce Development Act of 1995;’’.

4 (D) The second sentence of section 17(b)(2)

5 of the Food Stamp Act of 1977 (7 U.S.C.

6 2026(b)(2)) is amended—

7 (i) by striking ‘‘to accept an offer of

8 employment from a political subdivision or

9 a prime sponsor pursuant to the Com10 prehensive Employment and Training Act

11 of 1973, as amended (29 U.S.C. 812),’’ and

12 inserting ‘‘to accept an offer of employment

13 from a service provider carrying out

14 workforce employment activities through a

15 program carried out under the Workforce

16 Development Act of 1995,’’; and

17 (ii) by striking ‘‘: Provided, That all of

18 the political subdivision’s’’ and all that fol19 lows and inserting ‘‘, if all of the jobs sup20 ported under the program have been made

21 available to participants in the program be22 fore the service provider providing the jobs

23 extends an offer of employment under this

24 paragraph, and if the service provider, in

25 employing the person, complies with the re-
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1 quirements of Federal law that relate to the

2 program.’’.

3 (E) Section 245A(h)(4)(F) of the Immigra4 tion and Nationality Act (8 U.S.C.

5 1255a(h)(4)(F)) is amended by striking ‘‘The

6 Job Training Partnership Act.’’ and inserting

7 ‘‘The Workforce Development Act of 1995.’’.

8 (F) Section 402(a)(4) of the Refugee Edu9 cation Assistance Act of 1980 (8 U.S.C. 1522

10 note) is amended by striking ‘‘the Comprehensive

11 Employment and Training Act of 1973’’ and in12 serting ‘‘the Workforce Development Act of

13 1995’’.

14 (G) Section 4461(1) of the National Defense

15 Authorization Act for Fiscal Year 1993 (10

16 U.S.C. 1143 note) is amended by striking ‘‘The

17 Job Training Partnership Act (29 U.S.C. 1501

18 et seq.).’’ and inserting ‘‘The Workforce Develop19 ment Act of 1995.’’.

20 (H) Section 4471 of the National Defense

21 Authorization Act for Fiscal Year 1993 (10

22 U.S.C. 2501 note) is amended—

23 (i) in subsection (d)(2), by striking

24 ‘‘the State dislocated’’ and all that follows

25 through ‘‘and the chief’’ and inserting ‘‘the
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1 Governor of the appropriate State and the

2 chief’’;

3 (ii) in subsection (e)—

4 (I) in the first sentence, by strik5 ing ‘‘for training, adjustment assist6 ance, and employment services’’ and

7 all that follows through ‘‘except where’’

8 and inserting ‘‘to participate in

9 workforce employment activities car10 ried out under the Workforce Develop11 ment Act of 1995, except in a case in

12 which’’; and

13 (II) by striking the second sen14 tence; and

15 (iii) in subsection (f)—

16 (I) in paragraph (3)—

17 (aa) in subparagraph (B), by

18 striking ‘‘the State dislocated’’

19 and all that follows through ‘‘and

20 the chief’’ and inserting ‘‘the Gov21 ernor of the appropriate State

22 and the chief’’; and

23 (bb) in subparagraph (C), by

24 striking ‘‘grantee under section

25 325(a) or 325A(a)’’ and all that
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1 follows through ‘‘employment serv2 ices’’ and inserting ‘‘recipient of

3 assistance under the Workforce

4 Development Act of 1995 provid5 ing workforce employment activi6 ties’’; and

7 (II) in paragraph (4), by striking

8 ‘‘for training,’’ and all that follows

9 through ‘‘beginning’’ and inserting ‘‘to

10 participate in workforce employment

11 activities under the Workforce Develop12 ment Act of 1995 beginning’’.

13 (I) Section 4492(b) of the National Defense

14 Authorization Act for Fiscal Year 1993 (10

15 U.S.C. 1143 note) is amended by striking ‘‘the

16 Job Training Partnership Act’’ and inserting

17 ‘‘the Workforce Development Act of 1995’’.

18 (J) Section 4003(5)(C) of the National De19 fense Authorization Act for Fiscal Year 1991 (10

20 U.S.C. 2391 note) is amended by inserting before

21 the period the following: ‘‘, as in effect on the

22 day before the date of enactment of the Workforce

23 Development Act of 1995’’.

24 (K) Section 1333(c)(2)(B) of the National

25 Defense Authorization Act for Fiscal Year 1994
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1 (10 U.S.C. 2701 note) is amended by striking

2 ‘‘Private industry councils (as described in sec3 tion 102 of the Job Training Partnership Act

4 (29 U.S.C. 1512)).’’ and inserting ‘‘Local part5 nerships or local workforce development boards,

6 as appropriate, established under section 118 of

7 the Workforce Development Act of 1995.’’.

8 (L) The fourth sentence of section

9 7(j)(13)(E) of the Small Business Act (15 U.S.C.

10 636(j)(13)(E)) is amended by striking ‘‘the Job

11 Training Partnership Act (29 U.S.C. 1501 et

12 seq.)’’ and inserting ‘‘the Workforce Development

13 Act of 1995’’.

14 (M) Section 4(f)(2)(B) of the Employment

15 Act of 1946 (15 U.S.C. 1022a(f)(2)(B)) is

16 amended by striking ‘‘and include these in the

17 annual Employment and Training Report of the

18 President required under section 705(a) of the

19 Comprehensive Employment and Training Act

20 of 1973 (hereinafter in this Act referred to as

21 ‘CETA’)’’ and inserting ‘‘and prepare and sub22 mit to the President an annual report contain23 ing the recommendations’’.
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1 (N) Section 206 of the Full Employment

2 and Balanced Growth Act of 1978 (15 U.S.C.

3 3116) is amended—

4 (i) in subsection (b)—

5 (I) in the matter preceding para6 graph (1), by striking ‘‘CETA’’ and

7 inserting ‘‘the Workforce Development

8 Act of 1995’’; and

9 (II) in paragraph (1), by striking

10 ‘‘(including use of section 110 of CETA

11 when necessary)’’; and

12 (ii) in subsection (c)(1), by striking

13 ‘‘CETA’’ and inserting ‘‘activities carried

14 out under the Workforce Development Act of

15 1995’’.

16 (O) Section 401(d) of the Full Employment

17 and Balanced Growth Act of 1978 (15 U.S.C.

18 3151(d)) is amended by striking ‘‘include, in the

19 annual Employment and Training Report of the

20 President provided under section 705(a) of

21 CETA,’’ and inserting ‘‘include, in the annual

22 report referred to in section 4(f)(2)(B) of the

23 Employment Act of 1946 (15 U.S.C.

24 1022a(f)(2)(B)),’’.
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1 (P) Subsections (a), (b), and (c) of section

2 665 of title 18, United States Code are amended

3 by striking ‘‘the Comprehensive Employment

4 and Training Act or the Job Training Partner5 ship Act’’ and inserting ‘‘the Workforce Develop6 ment Act of 1995’’.

7 (Q) Section 239(e) of the Trade Act of 1974

8 (19 U.S.C. 2311(e)) is amended by striking

9 ‘‘under title III of the Job Training Partnership

10 Act’’ and inserting ‘‘made available under the

11 Workforce Development Act of 1995’’.

12 (R) Section 480(b)(14) of the Higher Edu13 cation Act of 1965 (20 U.S.C. 1087vv(b)(14)) is

14 amended by striking ‘‘Job Training Partnership

15 Act noneducational benefits’’ and inserting ‘‘ben16 efits received through participation in workforce

17 employment activities under the Workforce De18 velopment Act of 1995’’.

19 (S) Section 626 of the Individuals with Dis20 abilities Education Act (20 U.S.C. 1425) is

21 amended—

22 (i) in the first sentence of subsection

23 (a), by striking ‘‘(including the State job

24 training coordinating councils and service

25 delivery area administrative entities estab-
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1 lished under the Job Training Partnership

2 Act)’’ and inserting ‘‘(including any state3 wide workforce development boards estab4 lished under section 105 of the Workforce

5 Development Act of 1995 and local entities,

6 as defined in section 3 of the Workforce De7 velopment Act of 1995)’’;

8 (ii) in subsection (e)—

9 (I) in paragraphs (3)(C) and

10 (4)(A)(iii), by striking ‘‘local Private

11 Industry Councils (PICS) authorized

12 by the Job Training Partnership Act

13 (JTPA),’’ and inserting ‘‘local partner14 ships or local workforce development

15 boards, as appropriate, established

16 under section 118 of the Workforce De17 velopment Act of 1995,’’; and

18 (II) in clauses (iii), (iv), (v), and

19 (vii) of paragraph (4)(B), by striking

20 ‘‘PICS authorized by the JTPA’’ and

21 inserting ‘‘local partnerships or local

22 workforce development boards, as ap23 propriate, established under section

24 118 of the Workforce Development Act

25 of 1995’’; and
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1 (iii) in subsection (g), by striking ‘‘the

2 Job Training Partnership Act (JTPA),’’

3 and inserting ‘‘the Workforce Development

4 Act of 1995,’’.

5 (T) Subsection (a) of section 302 of the De6 partment of Education Organization Act (20

7 U.S.C. 3443(a)) (as redesignated in section

8 271(a)(2) of the Improving America’s Schools

9 Act of 1994) is amended by striking ‘‘under sec10 tion 303(c)(2) of the Comprehensive Employment

11 and Training Act’’ and inserting ‘‘relating to

12 such education’’.

13 (U) Section 504(c)(3) of the National Skill

14 Standards Act of 1994 (20 U.S.C. 5934(c)(3)) is

15 amended by striking ‘‘the Capacity Building and

16 Information and Dissemination Network estab17 lished under section 453(b) of the Job Training

18 Partnership Act (29 U.S.C. 1733(b)) and’’.

19 (V) Section 508(1) of the National Skill

20 Standards Act of 1994 (20 U.S.C. 5938(1)) is

21 amended to read as follows:

22 ‘‘(1) COMMUNITY-BASED ORGANIZATION.—The

23 term ‘community-based organization’ means a private

24 nonprofit organization of demonstrated effectiveness

25 that is representative of a community or a significant
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1 segment of a community and that provides workforce

2 development activities, as defined in section 3 of the

3 Workforce Development Act of 1995.’’.

4 (W) Section 1205(8)(B) of the Elementary

5 and Secondary Education Act of 1965 (20

6 U.S.C. 6365(8)(B)) (as amended in paragraph

7 (1)(C)(ii)) is further amended by striking ‘‘, the

8 Individuals with Disabilities Education Act, and

9 the Job Training Partnership Act’’ and inserting

10 ‘‘and the Individuals with Disabilities Edu11 cation Act’’.

12 (X) Section 1414(c)(8) of the Elementary

13 and Secondary Education Act of 1965 (20

14 U.S.C. 6434(c)(8)) is amended by striking ‘‘pro15 grams under the Job Training Partnership Act,’’

16 and inserting ‘‘programs under the Workforce

17 Development Act of 1995,’’.

18 (Y) Section 1423(9) of the Elementary and

19 Secondary Education Act of 1965 (20 U.S.C.

20 6453(9)) is amended by striking ‘‘programs

21 under the Job Training and Partnership Act’’

22 and inserting ‘‘programs under the Workforce

23 Development Act of 1995’’.

24 (Z) Section 1425(9) of the Elementary and

25 Secondary Education Act of 1965 (20 U.S.C.
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1 6455(9)) is amended by striking ‘‘, such as funds

2 under the Job Training Partnership Act,’’ and

3 inserting ‘‘, such as funds made available under

4 the Workforce Development Act of 1995,’’.

5 (AA) Section 5303(b)(2)(B) of the Elemen6 tary and Secondary Education Act of 1965 (20

7 U.S.C. 7263(b)(2)(B)) is amended by striking

8 ‘‘private industry council (established under the

9 Job Training Partnership Act),’’ and inserting

10 ‘‘local partnership or local workforce develop11 ment board, as appropriate, established under

12 section 118 of the Workforce Development Act of

13 1995,’’.

14 (BB) The last sentence of section 505 of the

15 FREEDOM Support Act (22 U.S.C. 5855) is

16 amended by striking ‘‘, through the Defense Con17 version’’ and all that follows through ‘‘or

18 through’’ and inserting ‘‘or through’’.

19 (CC) Section 42(i)(3)(D)(i)(II) of the Inter20 nal Revenue Code of 1986 is amended by strik21 ing ‘‘assistance under’’ and all that follows

22 through ‘‘or under’’ and inserting ‘‘assistance

23 under the Workforce Development Act of 1995 or

24 under’’.
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1 (DD) Section 51(d) of the Internal Revenue

2 Code of 1986 is amended by striking paragraph

3 (10).

4 (EE) Section 6334(d)(12) of the Internal

5 Revenue Code of 1986 is amended to read as fol6 lows:

7 ‘‘(12) ASSISTANCE UNDER THE WORKFORCE DE8 VELOPMENT ACT OF 1995.—Any amount payable to a

9 participant in workforce development activities car10 ried out under the Workforce Development Act of 1995

11 from funds appropriated under such Act.’’.

12 (FF) Section 204(b) of the Emergency Jobs

13 and Unemployment Assistance Act of 1974 (26

14 U.S.C. 3304 note) is amended by striking ‘‘des15 ignate as an area’’ and all that follows and in16 serting ‘‘designate as an area under this section

17 an area that is a substate area under the

18 Workforce Development Act of 1995.’’.

19 (GG) Section 223 of the Emergency Jobs

20 and Unemployment Assistance Act of 1974 (26

21 U.S.C. 3304 note) is amended—

22 (i) in paragraph (3), by striking ‘‘as23 sistance provided’’ and all that follows and

24 inserting ‘‘assistance provided under the

25 Workforce Development Act of 1995;’’; and
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1 (ii) in paragraph (4), by striking

2 ‘‘funds provided’’ and all that follows and

3 inserting ‘‘funds provided under the

4 Workforce Development Act of 1995;’’.

5 (HH) Section 612(b) of the Rehabilitation

6 Act of 1973 (29 U.S.C. 795a(b)) is amended by

7 striking ‘‘the Job Training Partnership Act’’ and

8 inserting ‘‘the Workforce Development Act of

9 1995’’.

10 (II) Section 701 of the Job Training Re11 form Amendments of 1992 (29 U.S.C. 1501 note)

12 is repealed.

13 (JJ) Section 7 of Public Law 98–524 (29

14 U.S.C. 1551 note) is repealed.

15 (KK) Section 402 of the Veterans’ Benefits

16 and Programs Improvement Act of 1988 (29

17 U.S.C. 1721 note) is amended—

18 (i) in subsection (a), by striking ‘‘title

19 III of the Job Training Partnership Act (29

20 U.S.C. 1651 et seq.)’’ and inserting ‘‘the

21 Workforce Development Act of 1995’’;

22 (ii) in subsection (c), by striking ‘‘the

23 office designated or created under section

24 322(b) of the Job Training Partnership
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1 Act’’ and inserting ‘‘the Workforce Develop2 ment Partnership’’; and

3 (iii) in subsection (d)—

4 (I) in paragraph (1), by striking

5 ‘‘under—’’ and all that follows through

6 ‘‘the Veterans’ ’’ and inserting ‘‘under

7 the Veterans’ ’’; and

8 (II) in paragraph (2), by striking

9 ‘‘Employment and training’’ and all

10 that follows and inserting ‘‘Workforce

11 employment activities under the

12 Workforce Development Act of 1995.’’.

13 (LL) Section 13(b) of the Veterans’ Job

14 Training Act (29 U.S.C. 1721 note) is amended

15 by striking ‘‘assistance under the Job Training

16 Partnership Act (29 U.S.C. 1501 et seq.)’’ and

17 inserting ‘‘assistance under the Workforce Devel18 opment Act of 1995’’.

19 (MM) Section 14(b)(3)(B)(i)(II) of the Vet20 erans’ Job Training Act (29 U.S.C. 1721 note)

21 is amended by striking ‘‘under part C of title IV

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

23 1501 et seq.)’’ and inserting ‘‘under the

24 Workforce Development Act of 1995’’.
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1 (NN) Section 15(c)(2) of the Veterans’ Job

2 Training Act (29 U.S.C. 1721 note) is amend3 ed—

4 (i) in the second sentence, by striking

5 ‘‘part C of title IV of the Job Training

6 Partnership Act (29 U.S.C. 1501 et seq.)’’

7 and inserting ‘‘the Workforce Development

8 Act of 1995’’; and

9 (ii) in the third sentence, by striking

10 ‘‘title III of’’.

11 (OO) Section 3(a)(2) of the Worker Adjust12 ment and Retraining Notification Act (29

13 U.S.C. 2102(a)(2)) is amended by striking ‘‘to

14 the State’’ and all that follows through ‘‘and the

15 chief’’ and inserting ‘‘to the Governor of the ap16 propriate State and the chief’’.

17 (PP) Section 6703(a) of title 31, United

18 States Code, is amended by striking paragraph

19 (4) and inserting the following:

20 ‘‘(4) Programs under the Workforce Development

21 Act of 1995.’’.

22 (QQ) Section 512 of the Veterans’ Rehabili23 tation and Education Amendments of 1980 (38

24 U.S.C. 4101 note) is amended by striking ‘‘the

25 Comprehensive Employment and Training Act
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1 (29 U.S.C. et seq.),’’ and inserting ‘‘the

2 Workforce Development Act of 1995,’’.

3 (RR) Section 4102A(d) of title 38, United

4 States Code, is amended by striking ‘‘the Job

5 Training Partnership Act’’ and inserting ‘‘the

6 Workforce Development Act of 1995’’.

7 (SS) Section 4103A(c)(4) of title 38, United

8 States Code, is amended by striking ‘‘(including

9 part C of title IV of the Job Training Partner10 ship Act (29 U.S.C. 1501 et seq.))’’.

11 (TT) Section 4213 of title 38, United States

12 Code, is amended by striking ‘‘any employment

13 or training program assisted under the Job

14 Training Partnership Act (29 U.S.C. 1501 et

15 seq.),’’ and inserting ‘‘any workforce employment

16 activity carried out under the Workforce Devel17 opment Act of 1995,’’.

18 (UU) Section 23 of the United States Hous19 ing Act of 1937 (42 U.S.C. 1437u) is amended—

20 (i) in subsection (b)(2)(A), by striking

21 ‘‘the Job Training’’ and all that follows

22 through ‘‘or the’’ and inserting ‘‘the

23 Workforce Development Act of 1995 or the’’;

24 (ii) in the first sentence of subsection

25 (f)(2), by striking ‘‘programs under the’’
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1 and all that follows through ‘‘and the’’ and

2 inserting ‘‘programs under the Workforce

3 Development Act of 1995 and the’’; and

4 (iii) in subsection (g)—

5 (I) in paragraph (2), by striking

6 ‘‘programs under the’’ and all that fol7 lows through ‘‘and the’’ and inserting

8 ‘‘programs under the Workforce Devel9 opment Act of 1995 and the’’; and

10 (II) in paragraph (3)(H), by

11 striking ‘‘program under’’ and all that

12 follows through ‘‘and any other’’ and

13 inserting ‘‘program under the

14 Workforce Development Act of 1995

15 and any other’’.

16 (VV) Section 504(c)(3) of the Housing Act

17 of 1949 (42 U.S.C. 1474(c)(3)) is amended by

18 striking ‘‘pursuant to’’ and all that follows

19 through ‘‘or the’’ and inserting ‘‘pursuant to the

20 Workforce Development Act of 1995 or the’’.

21 (WW) Section 203 of the Older Americans

22 Act of 1965 (42 U.S.C. 3013) is amended—

23 (i) in subsection (a)(2), by striking the

24 last sentence and inserting the following:

25 ‘‘In particular, the Secretary of Labor and
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1 the Secretary of Education shall consult

2 and cooperate with the Assistant Secretary

3 in carrying out the Workforce Development

4 Act of 1995.’’; and

5 (ii) in subsection (b), by striking para6 graph (1) and inserting the following:

7 ‘‘(1) the Workforce Development Act of 1995,’’.

8 (XX) Section 502 of the Older Americans

9 Act of 1965 (42 U.S.C. 3056) is amended—

10 (i) in subsection (b)(1)(N)(i), by strik11 ing ‘‘the Job Training Partnership Act (29

12 U.S.C. 1501 et seq.)’’ and inserting ‘‘the

13 Workforce Development Act of 1995’’; and

14 (ii) in subsection (e)(2)(C), by striking

15 ‘‘programs carried out under section 124 of

16 the Job Training Partnership Act (29

17 U.S.C. 1534)’’ and inserting ‘‘workforce em18 ployment activities carried out under the

19 Workforce Development Act of 1995’’.

20 (YY) Section 503(b)(1) of the Older Ameri21 cans Act of 1995 (42 U.S.C. 3056a(b)(1)) is

22 amended by striking ‘‘the Job Training Partner23 ship Act,’’ each place it appears and inserting

24 ‘‘the Workforce Development Act of 1995,’’.
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1 (ZZ) Section 510 of the Older Americans

2 Act of 1995 (42 U.S.C. 3056h) is amended by

3 striking ‘‘the Job Training Partnership Act, eli4 gible individuals shall be deemed to satisfy the

5 requirements of sections 203 and 204(d)(5)(A) of

6 such Act (29 U.S.C. 1603, 1604(d)(5)(A))’’ and

7 inserting ‘‘the Workforce Development Act of

8 1995, eligible individuals shall be deemed to sat9 isfy the requirements of such Act’’.

10 (AAA) Section 1801(b)(3) of the Omnibus

11 Crime Control and Safe Streets Act of 1968 (42

12 U.S.C. 3796ee(b)(3)) is amended by striking ‘‘ac13 tivities carried out under part B of title IV of

14 the Job Training Partnership Act (relating to

15 Job Corps) (29 U.S.C. 1691 et seq.)’’ and insert16 ing ‘‘activities carried out under chapter 2 of

17 subtitle B of the Workforce Development Act of

18 1995’’.

19 (BBB) The second sentence of section 2(a)

20 of the Environmental Programs Assistance Act of

21 1984 (42 U.S.C. 4368a(a)) is amended by strik22 ing ‘‘and title IV of the Job Training Partner23 ship Act’’ and inserting ‘‘and the Workforce De24 velopment Act of 1995’’.
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1 (CCC) The second sentence of section 103(d)

2 of the Domestic Volunteer Service Act of 1973

3 (42 U.S.C. 4953(d)) is amended to read as fol4 lows: ‘‘Whenever feasible, such efforts shall be co5 ordinated with a local partnership or local

6 workforce development board, as appropriate, es7 tablished under section 118 of the Workforce De8 velopment Act of 1995.’’.

9 (DDD) Subsections (c)(2) and (d)(2) of sec10 tion 109 of the Domestic Volunteer Service Act

11 of 1973 (42 U.S.C. 4959) is amended by striking

12 ‘‘administrative entities designated to administer

13 job training plans under the Job Training Part14 nership Act’’ and inserting ‘‘local entities, as de15 fined in section 3 of the Workforce Development

16 Act of 1995’’.

17 (EEE) Section 304(c)(1) of the Age Dis18 crimination Act of 1975 (42 U.S.C. 6103(c)(1))

19 is amended by striking ‘‘the Comprehensive Em20 ployment and Training Act of 1974 (29 U.S.C.

21 801, et seq.), as amended,’’ and inserting ‘‘the

22 Workforce Development Act of 1995’’.

23 (FFF) Section 414(b)(3) of the Energy Con24 servation and Production Act (42 U.S.C.

25 6864(b)(3)) is amended by striking ‘‘the Com-
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1 prehensive Employment and Training Act of

2 1973’’ and inserting ‘‘the Workforce Development

3 Act of 1995’’.

4 (GGG) Section 233 of the National Energy

5 Conservation Policy Act (42 U.S.C. 6873) is

6 amended, in the matter preceding paragraph (1),

7 by striking ‘‘the Comprehensive Employment

8 and Training Act of 1973’’ and inserting ‘‘the

9 Workforce Development Act of 1995’’.

10 (HHH) Section 3161(c)(6) of the National

11 Defense Authorization Act for Fiscal Year 1993

12 (42 U.S.C. 7274h(c)(6)) is amended by striking

13 subparagraph (A) and inserting the following:

14 ‘‘(A) programs carried out jointly by the

15 Secretary of Labor and the Secretary of Edu16 cation under the Workforce Development Act of

17 1995;’’.

18 (III) Section 617(a)(3) of the Community

19 Economic Development Act of 1981 (42 U.S.C.

20 9806(a)(3)) is amended by striking ‘‘activities

21 such as those described in the Comprehensive

22 Employment and Training Act’’ and inserting

23 ‘‘workforce employment activities described in

24 the Workforce Development Act of 1995’’.
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1 (JJJ) Section 103(b)(2) of the Stewart B.

2 McKinney Homeless Assistance Act (42 U.S.C.

3 11302(b)(2)) is amended by striking ‘‘the Job

4 Training Partnership Act’’ and inserting ‘‘the

5 Workforce Development Act of 1995’’.

6 (KKK) Section 177(d) of the National and

7 Community Service Act of 1990 (42 U.S.C.

8 12637(d)) is amended to read as follows:

9 ‘‘(d) TREATMENT OF BENEFITS.—Allowances, earn10 ings, and payments to individuals participating in pro11 grams that receive assistance under this title shall not be

12 considered to be income for the purposes of determining eli13 gibility for and the amount of income transfer and in-kind

14 aid furnished under any Federal or federally assisted pro15 gram based on need, other than as provided under the So16 cial Security Act (42 U.S.C. 301 et seq.).’’.

17 (LLL) Section 198C of the National and

18 Community Service Act of 1990 (42 U.S.C.

19 12653c) is amended—

20 (i) in subsection (b)(1), by striking ‘‘a

21 military installation described in section

22 325(e)(1) of the Job Training Partnership

23 Act (29 U.S.C. 1662d(e)(1)).’’ and inserting

24 ‘‘a military installation being closed or re25 aligned under—
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1 ‘‘(A) the Defense Base Closure and Realign2 ment Act of 1990 (part A of title XXIX of Public

3 Law 101–510; 10 U.S.C. 2687 note); and

4 ‘‘(B) title II of the Defense Authorization

5 Amendments and Base Closure and Realignment

6 Act (Public Law 100–526; 10 U.S.C. 2687

7 note).’’; and

8 (ii) in subsection (e)(1)(B), by striking

9 clause (iii) and inserting the following:

10 ‘‘(iii) an at-risk youth (as defined in section

11 131 of the Workforce Development Act of 1995).’’.

12 (MMM) Section 199L(a) of the National

13 and Community Service Act of 1990 (42 U.S.C.

14 12655m(a)) is amended by striking ‘‘the Job

15 Training Partnership Act (29 U.S.C. 1501 et

16 seq.)’’ and inserting ‘‘the Workforce Development

17 Act of 1995’’.

18 (NNN) Subparagraphs (H) and (M) of sub19 section (c)(2), and subsection (d)(7), of section

20 454 of the Cranston-Gonzalez National Afford21 able Housing Act (42 U.S.C. 12899c) are amend22 ed by striking ‘‘the Job Training Partnership

23 Act’’ and inserting ‘‘the Workforce Development

24 Act of 1995’’.
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1 (OOO) The first sentence of section 456(e) of

2 the Cranston-Gonzalez National Affordable

3 Housing Act (42 U.S.C. 12899e(e)) is amended

4 by inserting ‘‘(as in effect on the day before the

5 date of enactment of the Workforce Development

6 Act of 1995)’’ after ‘‘the Job Training Partner7 ship Act’’ each place it appears.

8 (PPP) Section 31113(a)(4)(C) of the Violent

9 Crime Control and Law Enforcement Act of

10 1994 (42 U.S.C. 13823(a)(4)(C)) is amended by

11 striking ‘‘authorized under the Job Training

12 Partnership Act (29 U.S.C. 1501 et seq.)’’ and

13 inserting ‘‘or workforce employment activities

14 authorized under the Workforce Development Act

15 of 1995’’.

16 (5) STEWART B. MCKINNEY HOMELESS ASSIST17 ANCE ACT.—

18 (A) Section 6703(a) of title 31, United

19 States Code, is amended—

20 (i) by striking paragraph (15); and

21 (ii) by redesignating paragraphs (16)

22 through (19) as paragraphs (15) through

23 (18), respectively.

24 (B) Section 14205(a)(1) of the Elementary

25 and Secondary Education Act of 1965 (20
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1 U.S.C. 8825(a)(1)) is amended by striking ‘‘the

2 Indian education programs under part A of title

3 IX of this Act, and the education for homeless

4 children and youth program under subtitle B of

5 title VII of the Stewart B. McKinney Homeless

6 Assistance Act,’’ and inserting ‘‘and the Indian

7 education programs under part A of title IX,’’.

8 (c) RECOMMENDED LEGISLATION.—

9 (1) PREPARATION.—After consultation with the

10 appropriate committees of Congress and the Director

11 of the Office of Management and Budget, the Federal

12 Partnership shall prepare and submit to Congress rec13 ommended legislation containing technical and con14 forming amendments to reflect the changes made by

15 section 191(b).

16 (2) SUBMISSION TO CONGRESS.—Not later than

17 March 31, 1997, the Federal Partnership shall submit

18 the recommended legislation referred to under para19 graph (1).

20 (d) EFFECTIVE DATES.—

21 (1) IMMEDIATE REPEALS.—The amendments

22 made by subsection (a) shall take effect on the date

23 of enactment of this Act.
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1 (2) SUBSEQUENT REPEALS.—The amendments

2 made by subsection (b) shall take effect on July 1,

3 1998.

4 TITLE II—WORKFORCE DEVEL5 OPMENT-RELATED ACTIVI6 TIES

7 Subtitle A—Amendments to the

8 Rehabilitation Act of 1973

9 SEC. 201. REFERENCES.

10 Except as otherwise expressly provided in this subtitle,

11 whenever in this subtitle an amendment or repeal is ex12 pressed in terms of an amendment to, or repeal of, a section

13 or other provision, the reference shall be considered to be

14 made to a section or other provision of the Rehabilitation

15 Act of 1973 (29 U.S.C. 701 et seq.).

16 SEC. 202. FINDINGS AND PURPOSES.

17 Section 2 (29 U.S.C. 701) is amended—

18 (1) in subsection (a)(4), by striking ‘‘the provi19 sion of individualized training, independent living

20 services, educational and support services,’’ and in21 serting ‘‘implementation of a statewide workforce de22 velopment system that provides meaningful and effec23 tive participation for individuals with disabilities in

24 workforce development activities and activities carried

25 out through the vocational rehabilitation program es-
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1 tablished under title I, and through the provision of

2 independent living services, support services,’’; and

3 (2) in subsection (b)(1)(A), by inserting ‘‘state4 wide workforce development systems that include, as

5 integral components,’’ after ‘‘(A)’’.

6 SEC. 203. CONSOLIDATED REHABILITATION PLAN.

7 (a) IN GENERAL.—Section 6 (29 U.S.C. 705) is re8 pealed.

9 (b) CONFORMING AMENDMENT.—The table of contents

10 for the Act is amended by striking the item relating to sec11 tion 6.

12 SEC. 204. DEFINITIONS.

13 Section 7 (29 U.S.C. 706) is amended by adding at

14 the end the following new paragraphs:

15 ‘‘(36) The term ‘statewide workforce development sys16 tem’ means a statewide system, as defined in section 3 of

17 the Workforce Development Act of 1995.

18 ‘‘(37) The term ‘workforce development activities’ has

19 the meaning given the term in section 3 of the Workforce

20 Development Act of 1995.

21 ‘‘(38) The term ‘workforce employment activities’

22 means the activities described in paragraphs (2) through

23 (8) of section 106(a) of the Workforce Development Act of

24 1995, including activities described in section 106(a)(6) of
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1 such Act provided through a voucher described in section

2 106(a)(9) of such Act.’’.

3 SEC. 205. ADMINISTRATION.

4 Section 12(a)(1) (29 U.S.C. 711(a)(1)) is amended by

5 inserting ‘‘, including providing assistance to achieve the

6 meaningful and effective participation by individuals with

7 disabilities in the activities carried out through a statewide

8 workforce development system’’ before the semicolon.

9 SEC. 206. REPORTS.

10 Section 13 (29 U.S.C. 712) is amended in the fourth

11 sentence by striking ‘‘The data elements’’ and all that fol12 lows through ‘‘age,’’ and inserting the following: ‘‘The infor13 mation shall include all information that is required to be

14 submitted in the report described in section 121(a) of the

15 Workforce Development Act of 1995 and that pertains to

16 the employment of individuals with disabilities, including

17 information on age,’’.

18 SEC. 207. EVALUATION.

19 Section 14(a) (29 U.S.C. 713(a)) is amended in the

20 third sentence by striking ‘‘to the extent feasible,’’ and all

21 that follows through the end of the sentence and inserting

22 the following: ‘‘to the maximum extent appropriate, be con23 sistent with the State benchmarks established under para24 graphs (1) and (2) of section 121(c) of the Workforce Devel25 opment Act of 1995. For purposes of this section, the Sec-
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1 retary may modify or supplement such benchmarks after

2 consultation with the National Board established under sec3 tion 182 of the Workforce Development Act of 1995, to the

4 extent necessary to address unique considerations applicable

5 to the participation of individuals with disabilities in the

6 vocational rehabilitation program established under title I

7 and activities carried out under other provisions of this

8 Act.’’.

9 SEC. 208. DECLARATION OF POLICY.

10 Section 100(a) (29 U.S.C. 720(a)) is amended—

11 (1) in paragraph (1)—

12 (A) in subparagraph (E), by striking ‘‘;

13 and’’ and inserting a semicolon;

14 (B) in subparagraph (F)—

15 (i) by inserting ‘‘workforce develop16 ment activities and’’ before ‘‘vocational re17 habilitation services’’; and

18 (ii) by striking the period and insert19 ing ‘‘; and’’; and

20 (C) by adding at the end the following sub21 paragraph:

22 ‘‘(G) linkages between the vocational rehabilita23 tion program established under this title and other

24 components of the statewide workforce development

25 system are critical to ensure effective and meaningful
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1 participation by individuals with disabilities in

2 workforce development activities.’’; and

3 (2) in paragraph (2)—

4 (A) by striking ‘‘a comprehensive’’ and in5 serting ‘‘statewide comprehensive’’; and

6 (B) by striking ‘‘program of vocational re7 habilitation that is designed’’ and inserting

8 ‘‘programs of vocational rehabilitation, each of

9 which is—

10 ‘‘(A) an integral component of a statewide

11 workforce development system; and

12 ‘‘(B) designed’’.

13 SEC. 209. STATE PLANS.

14 (a) IN GENERAL.—Section 101(a) (29 U.S.C. 721(a))

15 is amended—

16 (1) in the first sentence, by striking ‘‘, or shall

17 submit’’ and all that follows through ‘‘et seq.)’’ and

18 inserting ‘‘, and shall submit the State plan on the

19 same dates as the State submits the State plan de20 scribed in section 104 of the Workforce Development

21 Act of 1995 to the Federal Partnership established

22 under section 181 of such Act’’;

23 (2) by inserting after the first sentence the fol24 lowing: ‘‘The State shall also submit the State plan

25 for vocational rehabilitation services for review and
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1 comment to any State workforce development board

2 established for the State under section 105 of the

3 Workforce Development Act of 1995, which shall sub4 mit the comments on the State plan to the designated

5 State unit.’’;

6 (3) by striking paragraphs (10), (12), (13), (15),

7 (17), (19), (23), (27), (28), (30), (34), and (35);

8 (4) in paragraph (20), by striking ‘‘(20)’’ and

9 inserting ‘‘(B)’’;

10 (5) by redesignating paragraphs (3), (4), (5),

11 (6), (7), (8), (9), (14), (16), (18), (21), (22), (24),

12 (25), (26), (29), (31), (32), (33), and (36) as para13 graphs (4), (5), (6), (7), (8), (9), (10), (12), (13),

14 (14), (15), (16), (17), (18), (19), (20), (21), (22), (23),

15 and (24), respectively;

16 (6) in paragraph (1)(B)—

17 (A) by redesignating clauses (i), (ii), and

18 (iii) as clauses (ii), (iii), and (iv), respectively;

19 and

20 (B) by inserting before clause (ii) (as redes21 ignated in subparagraph (A)) the following: ‘‘(i)

22 a State entity primarily responsible for imple23 menting workforce employment activities through

24 the statewide workforce development system of

25 the State,’’;
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1 (7) in paragraph (2)—

2 (A) in the matter preceding subparagraph

3 (A), by striking ‘‘(1)(B)(i)’’ and inserting

4 ‘‘(1)(B)(ii)’’; and

5 (B) in subparagraph (B)(ii), by striking

6 ‘‘(1)(B)(ii)’’ and inserting ‘‘(1)(B)(iii)’’;

7 (8) by inserting after paragraph (2) the follow8 ing paragraph:

9 ‘‘(3) provide a plan for expanding and improving vo10 cational rehabilitation services for individuals with disabil11 ities on a statewide basis, including—

12 ‘‘(A) a statement of values and goals;

13 ‘‘(B) evidence of ongoing efforts to use outcome

14 measures to make decisions about the effectiveness and

15 future direction of the vocational rehabilitation pro16 gram established under this title in the State; and

17 ‘‘(C) information on specific strategies for

18 strengthening the program as an integral component

19 of the statewide workforce development system estab20 lished in the State, including specific innovative,

21 state-of-the-art approaches for achieving sustained

22 success in improving and expanding vocational reha23 bilitation services provided through the program, for

24 all individuals with disabilities who seek employment,

25 through plans, policies, and procedures that link the
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1 program with other components of the system, includ2 ing plans, policies, and procedures relating to—

3 ‘‘(i) entering into cooperative agreements,

4 between the designated State unit and appro5 priate entities responsible for carrying out the

6 other components of the statewide workforce de7 velopment system, which agreements may pro8 vide for—

9 ‘‘(I) provision of intercomponent staff

10 training and technical assistance regarding

11 the availability and benefits of, and eligi12 bility standards for, vocational rehabilita13 tion services, and regarding the provision of

14 equal, effective, and meaningful participa15 tion by individuals with disabilities in

16 workforce employment activities in the

17 State through program accessibility, use of

18 nondiscriminatory policies and procedures,

19 and provision of reasonable accommoda20 tions, auxiliary aids and services, and reha21 bilitation technology, for individuals with

22 disabilities;

23 ‘‘(II) use of information and financial

24 management systems that link all compo25 nents of the statewide workforce development
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1 system, that link the components to other

2 electronic networks, and that relate to such

3 subjects as labor market and occupational

4 information, and information on job vacan5 cies, skill qualifications, career planning,

6 and workforce development activities;

7 ‘‘(III) use of customer service features

8 such as common intake and referral proce9 dures, customer data bases, resource infor10 mation, and human service hotlines;

11 ‘‘(IV) establishment of cooperative ef12 forts with employers to facilitate job place13 ment and to develop and sustain working

14 relationships with employers, trade associa15 tions, and labor organizations;

16 ‘‘(V) identification of staff roles and

17 responsibilities and available resources for

18 each entity that carries out a component of

19 the statewide workforce development system

20 with regard to paying for necessary services

21 (consistent with State law); and

22 ‘‘(VI) specification of procedures for re23 solving disputes among such entities; and

24 ‘‘(ii) providing for the replication of such

25 cooperative agreements at the local level between
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1 individual offices of the designated State unit

2 and local entities carrying out activities through

3 the statewide workforce development system;’’;

4 (9) in paragraph (6) (as redesignated in para5 graph (5))—

6 (A) by striking subparagraph (A) and in7 serting the following:

8 ‘‘(A) contain the plans, policies, and methods to

9 be followed in carrying out the State plan and in the

10 administration and supervision of the plan, includ11 ing—

12 ‘‘(i)(I) the results of a comprehensive, state13 wide assessment of the rehabilitation needs of in14 dividuals with disabilities (including individuals

15 with severe disabilities, individuals with disabil16 ities who are minorities, and individuals with

17 disabilities who have been unserved, or under18 served, by the vocational rehabilitation system)

19 who are residing within the State; and

20 ‘‘(II) the response of the State to the assess21 ment;

22 ‘‘(ii) a description of the method to be used

23 to expand and improve services to individuals

24 with the most severe disabilities, including indi25 viduals served under part C of title VI;
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1 ‘‘(iii) with regard to community rehabilita2 tion programs—

3 ‘‘(I) a description of the method to be

4 used (such as a cooperative agreement) to

5 utilize the programs to the maximum extent

6 feasible; and

7 ‘‘(II) a description of the needs of the pro8 grams, including the community rehabilitation

9 programs funded under the Act entitled ‘‘An Act

10 to Create a Committee on Purchases of Blind11 made Products, and for other purposes’’, ap12 proved June 25, 1938 (commonly known as the

13 Wagner-O’Day Act; 41 U.S.C. 46 et seq.) and

14 such programs funded by State use contracting

15 programs; and

16 ‘‘(iv) an explanation of the methods by

17 which the State will provide vocational rehabili18 tation services to all individuals with disabilities

19 within the State who are eligible for such serv20 ices, and, in the event that vocational rehabilita21 tion services cannot be provided to all such eligi22 ble individuals with disabilities who apply for

23 such services, information—

24 ‘‘(I) showing and providing the jus25 tification for the order to be followed in se-
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1 lecting individuals to whom vocational re2 habilitation services will be provided (which

3 order of selection for the provision of voca4 tional rehabilitation services shall be deter5 mined on the basis of serving first the indi6 viduals with the most severe disabilities in

7 accordance with criteria established by the

8 State, and shall be consistent with priorities

9 in such order of selection so determined,

10 and outcome and service goals for serving

11 individuals with disabilities, established in

12 regulations prescribed by the Commis13 sioner);

14 ‘‘(II) showing the outcomes and service

15 goals, and the time within which the out16 comes and service goals may be achieved,

17 for the rehabilitation of individuals receiv18 ing such services; and

19 ‘‘(III) describing how individuals with

20 disabilities who will not receive such serv21 ices if such order is in effect will be referred

22 to other components of the statewide

23 workforce development system for access to

24 services offered by the components;’’; and
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1 (B) by striking subparagraph (C) and in2 serting the following subparagraphs:

3 ‘‘(C) with regard to the statewide assessment of

4 rehabilitation needs described in subparagraph

5 (A)(i)—

6 ‘‘(i) provide that the State agency will make

7 reports at such time, in such manner, and con8 taining such information, as the Commissioner

9 may require to carry out the functions of the

10 Commissioner under this title, and comply with

11 such provisions as are necessary to assure the

12 correctness and verification of such reports; and

13 ‘‘(ii) provide that reports made under

14 clause (i) will include information regarding in15 dividuals with disabilities and, if an order of se16 lection described in subparagraph (A)(iv)(I) is

17 in effect in the State, will separately include in18 formation regarding individuals with the most

19 severe disabilities, on—

20 ‘‘(I) the number of such individuals

21 who are evaluated and the number rehabili22 tated;

23 ‘‘(II) the costs of administration, coun24 seling, provision of direct services, develop25 ment of community rehabilitation pro-
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1 grams, and other functions carried out

2 under this Act; and

3 ‘‘(III) the utilization by such individ4 uals of other programs pursuant to para5 graph (11); and

6 ‘‘(D) describe—

7 ‘‘(i) how a broad range of rehabilitation

8 technology services will be provided at each stage

9 of the rehabilitation process;

10 ‘‘(ii) how a broad range of such rehabilita11 tion technology services will be provided on a

12 statewide basis; and

13 ‘‘(iii) the training that will be provided to

14 vocational rehabilitation counselors, client assist15 ance personnel, personnel of the providers of one16 stop delivery of core services described in section

17 106(a)(2) of the Workforce Development Act of

18 1995, and other related services personnel;’’;

19 (10) in subparagraph (A) of paragraph (8) (as

20 redesignated in paragraph (5))—

21 (A) in clause (i)(II), by striking ‘‘, based on

22 projections’’ and all that follows through ‘‘rel23 evant factors’’; and

24 (B) by striking clauses (iii) and (iv) and

25 inserting the following clauses:
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1 ‘‘(iii) a description of the ways in which the sys2 tem for evaluating the performance of rehabilitation

3 counselors, coordinators, and other personnel used in

4 the State facilitates the accomplishment of the pur5 pose and policy of this title, including the policy of

6 serving, among others, individuals with the most se7 vere disabilities;

8 ‘‘(iv) provide satisfactory assurances that the

9 system described in clause (iii) in no way impedes

10 such accomplishment; and’’;

11 (11) in paragraph (9) (as redesignated in para12 graph (5)) by striking ‘‘required—’’ and all that fol13 lows through ‘‘(B) prior’’ and inserting ‘‘required

14 prior’’;

15 (12) in paragraph (10) (as redesignated in para16 graph (5))—

17 (A) in subparagraph (B), by striking ‘‘writ18 ten rehabilitation program’’ and inserting ‘‘em19 ployment plan’’; and

20 (B) in subparagraph (C), by striking ‘‘plan

21 in accordance with such program’’ and inserting

22 ‘‘State plan in accordance with the employment

23 plan’’;

24 (13) in paragraph (11)—
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1 (A) in subparagraph (A), by striking

2 ‘‘State’s public’’ and all that follows and insert3 ing ‘‘State programs that are not part of the

4 statewide workforce development system of the

5 State;’’; and

6 (B) in subparagraph (C)—

7 (i) by striking ‘‘if appropriate—’’ and

8 all that follows through ‘‘entering into’’ and

9 inserting ‘‘if appropriate, entering into’’;

10 (ii) by redesignating subclauses (I),

11 (II), and (III) as clauses (i), (ii), and (iii),

12 respectively; and

13 (iii) by indenting the clauses and

14 aligning the margins of the clauses with the

15 margins of clause (ii) of subparagraph (A)

16 of paragraph (8) (as redesignated in para17 graph (5));

18 (14) in paragraph (14) (as redesignated in para19 graph (5))—

20 (A) by striking ‘‘(14)’’ and inserting

21 ‘‘(14)(A)’’; and

22 (B) by inserting before the semicolon the fol23 lowing ‘‘, and, in the case of the designated State

24 unit, will take actions to take such views into ac25 count that include providing timely notice, hold-
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1 ing public hearings, preparing a summary of

2 hearing comments, and documenting and dis3 seminating information relating to the manner

4 in which the comments will affect services; and’’;

5 (15) in paragraph (16) (as redesignated in para6 graph (5)), by striking ‘‘referrals to other Federal and

7 State programs’’ and inserting ‘‘referrals within the

8 statewide workforce development system of the State

9 to programs’’; and

10 (16) in paragraph (17) (as redesignated in para11 graph (5))—

12 (A) in subparagraph (B), by striking ‘‘writ13 ten rehabilitation program’’ and inserting ‘‘em14 ployment plan’’; and

15 (B) in subparagraph (C)—

16 (i) in clause (ii), by striking ‘‘; and’’

17 and inserting a semicolon;

18 (ii) in clause (iii), by striking the

19 semicolon and inserting ‘‘; and’’; and

20 (iii) by adding at the end the following

21 clause:

22 ‘‘(iv) the manner in which students who are

23 individuals with disabilities and who are not in

24 special education programs can access and re-
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1 ceive vocational rehabilitation services, where

2 appropriate;’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 7 (29 U.S.C. 706) is amended—

5 (A) in paragraph (3)(B)(ii), by striking

6 ‘‘101(a)(1)(B)(i)’’ and inserting

7 ‘‘101(a)(1)(B)(ii)’’; and

8 (B) in paragraph (22)(A)(i)(II), by striking

9 ‘‘101(a)(5)(A)’’ each place it appears and insert10 ing ‘‘101(a)(6)(A)(iv)’’.

11 (2) Section 12(d) (29 U.S.C. 711(d)) is amended

12 by striking ‘‘101(a)(5)(A)’’ and inserting

13 ‘‘101(a)(6)(A)(iv)’’.

14 (3) Section 101(a) (29 U.S.C. 721(a)) is amend15 ed—

16 (A) in paragraph (1)(A), by striking ‘‘para17 graph (4) of this subsection’’ and inserting

18 ‘‘paragraph (5)’’;

19 (B) in paragraph (2)—

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘paragraph

22 (1)(B)(i)’’ and inserting ‘‘paragraph

23 (1)(B)(ii)’’; and
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1 (ii) in subparagraph (B)(i), by strik2 ing ‘‘paragraph (1)(B)(ii)’’ and inserting

3 ‘‘paragraph (1)(B)(iii)’’;

4 (C) in paragraph (17) (as redesignated in

5 subsection (a)(5)), by striking ‘‘paragraph

6 (11)(C)(ii)’’ and inserting ‘‘paragraph (11)(C)’’;

7 (D) in paragraph (22) (as redesignated in

8 subsection (a)(5)), by striking ‘‘paragraph (36)’’

9 and inserting ‘‘paragraph (24)’’; and

10 (E) in subparagraph (C) of paragraph (24)

11 (as redesignated in subsection (a)(5)), by strik12 ing ‘‘101(a)(1)(A)(i)’’ and inserting ‘‘paragraph

13 (1)(A)(i)’’.

14 (4) Section 102 (29 U.S.C. 722) is amended—

15 (A) in subsection (a)(3), by striking

16 ‘‘101(a)(24)’’ and inserting ‘‘101(a)(17)’’; and

17 (B) in subsection (d)(2)(C)(ii)—

18 (i) in subclause (II), by striking

19 ‘‘101(a)(36)’’ and inserting ‘‘101(a)(24)’’;

20 and

21 (ii) in subclause (III), by striking

22 ‘‘101(a)(36)(C)(ii)’’ and inserting

23 ‘‘101(a)(24)(C)(ii)’’.
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1 (5) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is

2 amended by striking ‘‘101(a)(36)’’ and inserting

3 ‘‘101(a)(24)’’.

4 (6) Section 107(a) (29 U.S.C. 727(a)) is amend5 ed—

6 (A) in paragraph (2)(F), by striking

7 ‘‘101(a)(32)’’ and inserting ‘‘101(a)(22)’’;

8 (B) in paragraph (3)(A), by striking

9 ‘‘101(a)(5)(A)’’ and inserting

10 ‘‘101(a)(6)(A)(iv)’’; and

11 (C) in paragraph (4), by striking

12 ‘‘101(a)(35)’’ and inserting ‘‘101(a)(8)(A)(iii)’’.

13 (7) Section 111(a) (29 U.S.C. 731(a)) is amend14 ed—

15 (A) in paragraph (1), by striking ‘‘and de16 velopment and implementation’’ and all that fol17 lows through ‘‘referred to in section

18 101(a)(34)(B)’’; and

19 (B) in paragraph (2)(A), by striking ‘‘and

20 such payments shall not be made in an amount

21 which would result in a violation of the provi22 sions of the State plan required by section

23 101(a)(17)’’.

24 (8) Section 124(a)(1)(A) (29 U.S.C.

25 744(a)(1)(A)) is amended by striking ‘‘(not including
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1 sums used in accordance with section

2 101(a)(34)(B))’’.

3 (9) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is

4 amended by striking ‘‘101(a)(22)’’ and inserting

5 ‘‘101(a)(16)’’.

6 (10) Section 635(b)(2) (29 U.S.C. 795n(b)(2)) is

7 amended by striking ‘‘101(a)(5)’’ and inserting

8 ‘‘101(a)(6)(A)(i)(I)’’.

9 (11) Section 802(h)(2)(B)(ii) (29 U.S.C.

10 797a(h)(2)(B)(ii)) is amended by striking

11 ‘‘101(a)(5)(A)’’ and inserting ‘‘101(a)(6)(A)(iv)’’.

12 (12) Section 102(e)(23)(A) of the Technology-Re13 lated Assistance for Individuals With Disabilities Act

14 of 1988 (29 U.S.C. 2212(e)(23)(A)) is amended by

15 striking ‘‘section 101(a)(36) of the Rehabilitation Act

16 of 1973 (29 U.S.C. 721(a)(36))’’ and inserting ‘‘sec17 tion 101(a)(24) of the Rehabilitation Act of 1973 (29

18 U.S.C. 721(a)(24))’’.

19 SEC. 210. INDIVIDUALIZED EMPLOYMENT PLANS.

20 (a) IN GENERAL.—Section 102 (29 U.S.C. 722) is

21 amended—

22 (1) by striking the section heading and inserting

23 the following:
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1 ‘‘SEC. 102. INDIVIDUALIZED EMPLOYMENT PLANS.’’;

2 (2) in subsection (a)(6), by striking ‘‘written re3 habilitation program’’ and inserting ‘‘employment

4 plan’’;

5 (3) in subsection (b)—

6 (A) in paragraph (1)(A)—

7 (i) in clause (i), by striking ‘‘written

8 rehabilitation program’’ and inserting ‘‘em9 ployment plan’’; and

10 (ii) in clause (ii), by striking ‘‘pro11 gram’’ and inserting ‘‘plan’’;

12 (B) in paragraph (1)(B)—

13 (i) in the matter preceding clause (i),

14 by striking ‘‘written rehabilitation pro15 gram’’ and inserting ‘‘employment plan’’;

16 (ii) in clause (iv)—

17 (I) by striking subclause (I) and

18 inserting the following:

19 ‘‘(I) include a statement of the specific voca20 tional rehabilitation services to be provided (includ21 ing, if appropriate, rehabilitation technology services

22 and training in how to use such services) that in23 cludes specification of the public or private entity

24 that will provide each such vocational rehabilitation

25 service and the projected dates for the initiation and

26 the anticipated duration of each such service; and’’;
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1 (II) by striking subclause (II);

2 and

3 (III) by redesignating subclause

4 (III) as subclause (II); and

5 (iii) in clause (xi)(I), by striking ‘‘pro6 gram’’ and inserting ‘‘plan’’;

7 (C) in paragraph (1)(C), by striking ‘‘writ8 ten rehabilitation program and amendments to

9 the program’’ and inserting ‘‘employment plan

10 and amendments to the plan’’; and

11 (D) in paragraph (2)—

12 (i) by striking ‘‘program’’ each place

13 the term appears and inserting ‘‘plan’’; and

14 (ii) by striking ‘‘written rehabilita15 tion’’ each place the term appears and in16 serting ‘‘employment’’;

17 (4) in subsection (c)—

18 (A) in paragraph (1), by striking ‘‘written

19 rehabilitation program’’ and inserting ‘‘employ20 ment plan’’; and

21 (B) by striking ‘‘written program’’ each

22 place the term appears and inserting ‘‘plan’’;

23 and

24 (5) in subsection (d)—
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1 (A) in paragraph (5), by striking ‘‘written

2 rehabilitation program’’ and inserting ‘‘employ3 ment plan’’; and

4 (B) in paragraph (6)(A), by striking the

5 second sentence.

6 (b) CONFORMING AMENDMENTS.—

7 (1) The table of contents for the Act is amended

8 by striking the item relating to section 102 and in9 serting the following:

‘‘Sec. 102. Individualized employment plans.’’.

10 (2) Paragraphs (22)(B) and (27)(B), and sub11 paragraphs (B) and (C) of paragraph (34) of section

12 7 (29 U.S.C. 706), section 12(e)(1) (29 U.S.C.

13 711(e)(1)), section 501(e) (29 U.S.C. 791(e)), sub14 paragraphs (C), (D), and (E) of section 635(b)(6) (29

15 U.S.C. 795n(b)(6) (C), (D), and (E)), section

16 802(g)(8)(B) (29 U.S.C. 797a(g)(8)(B)), and section

17 803(c)(2)(D) (29 U.S.C. 797b(c)(2)(D)) are amended

18 by striking ‘‘written rehabilitation program’’ each

19 place the term appears and inserting ‘‘employment

20 plan’’.

21 (3) Section 7(22)(B)(i) (29 U.S.C.

22 706(22)(B)(i)) is amended by striking ‘‘rehabilitation

23 program’’ and inserting ‘‘employment plan’’.

24 (4) Section 107(a)(3)(D) (29 U.S.C.

25 727(a)(3)(D)) is amended by striking ‘‘written reha-
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1 bilitation programs’’ and inserting ‘‘employment

2 plans’’.

3 (5) Section 101(b)(7)(A)(ii)(II) of the Tech4 nology-Related Assistance for Individuals With Dis5 abilities Act of 1988 (29 U.S.C. 2211(b)(7)(A)(ii)(II))

6 is amended by striking ‘‘written rehabilitation pro7 gram’’ and inserting ‘‘employment plan’’.

8 SEC. 211. SCOPE OF VOCATIONAL REHABILITATION SERV9 ICES.

10 Section 103 (29 U.S.C. 723) is amended—

11 (1) in subsection (a)(4)—

12 (A) in subparagraph (B), by striking ‘‘sur13 gery or’’;

14 (B) in subparagraph (D), by striking the

15 comma at the end and inserting ‘‘, and’’;

16 (C) by striking subparagraph (E); and

17 (D) by redesignating subparagraph (F) as

18 subparagraph (E); and

19 (2) in subsection (b)(1), by striking ‘‘the most se20 vere’’.

21 SEC. 212. STATE REHABILITATION ADVISORY COUNCIL.

22 (a) IN GENERAL.—Section 105 (29 U.S.C. 725) is

23 amended—

24 (1) in subsection (b)(1)(A)(vi), by inserting be25 fore the semicolon the following: ‘‘who, to the extent
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1 feasible, are members of any State workforce develop2 ment board established for the State under section 105

3 of the Workforce Development Act of 1995’’; and

4 (2) in subsection (c)—

5 (A) by redesignating paragraphs (3)

6 through (7) as paragraphs (4) through (8), re7 spectively;

8 (B) by inserting after paragraph (2) the fol9 lowing new paragraph:

10 ‘‘(3) advise the designated State agency and the

11 designated State unit regarding strategies for ensur12 ing that the vocational rehabilitation program estab13 lished under this title becomes an integral part of the

14 statewide workforce development system of the State;’’;

15 and

16 (C) in paragraph (6) (as redesignated in

17 subparagraph (A))—

18 (i) by striking ‘‘6024), and’’ and in19 serting ‘‘6024),’’; and

20 (ii) by striking the semicolon at the

21 end and inserting the following: ‘‘, and any

22 State workforce development board estab23 lished for the State under section 105 of the

24 Workforce Development Act of 1995;’’.
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1 (b) CONFORMING AMENDMENT.—Subparagraph

2 (B)(iv), and clauses (ii)(I) and (iii)(I) of subparagraph

3 (C), of paragraph (24) (as redesignated in section

4 209(a)(5)) of section 101(a) (29 U.S.C. 721(a)) are amend5 ed by striking ‘‘105(c)(3)’’ and inserting ‘‘105(c)(4)’’.

6 SEC. 213. EVALUATION STANDARDS AND PERFORMANCE IN7 DICATORS.

8 Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended—

9 (1) by striking ‘‘1994’’ and inserting ‘‘1996’’;

10 and

11 (2) by striking the period and inserting the fol12 lowing: ‘‘that shall, to the maximum extent appro13 priate, be consistent with the State benchmarks estab14 lished under paragraphs (1) and (2) of section 121(c)

15 of the Workforce Development Act of 1995. For pur16 poses of this section, the Commissioner may modify or

17 supplement such benchmarks, after consultation with

18 the National Board established under section 182 of

19 the Workforce Development Act of 1995, to the extent

20 necessary to address unique considerations applicable

21 to the participation of individuals with disabilities in

22 the vocational rehabilitation program.’’.

23 SEC. 214. REPEALS.

24 (a) IN GENERAL.—Title I (29 U.S.C. 720 et seq.) is

25 amended—
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1 (1) by repealing part C; and

2 (2) by redesignating parts D and E as parts C

3 and D, respectively.

4 (b) CONFORMING AMENDMENTS.—The table of contents

5 for the Act is amended—

6 (1) by striking the items relating to part C of

7 title I; and

8 (2) by striking the items relating to parts D and

9 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.’’.

10 SEC. 215. EFFECTIVE DATE.

11 (a) IN GENERAL.—Except as provided in subsection

12 (b), the amendments made by this subtitle shall take effect

13 on the date of enactment of this Act.

14 (b) STATEWIDE SYSTEM REQUIREMENTS.—The

15 changes made in the Rehabilitation Act of 1973 (29 U.S.C.

16 701 et seq.) by the amendments made by this subtitle that

17 relate to State benchmarks, or other components of a state18 wide system, shall take effect—

19 (1) in a State that submits and obtains approval

20 of an interim plan under section 173 for program

21 year 1997, on July 1, 1997; and

22 (2) in any other State, on July 1, 1998.
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1 Subtitle B—Amendments to the

2 Wagner-Peyser Act

3 SEC. 221. GENERAL PROGRAM REQUIREMENTS.

4 Section 1 of the Wagner-Peyser Act (29 U.S.C. 49) is

5 amended by striking ‘‘national system’’ and all that follows

6 and inserting ‘‘national system of employment service of7 fices open to the public, there shall be in the Federal Part8 nership a United States Employment Service.’’.

9 SEC. 222. DEFINITIONS.

10 (a) IN GENERAL.—Section 2 of the Wagner-Peyser Act

11 (29 U.S.C. 49a) is amended—

12 (1) by striking paragraphs (1), (2), (3), and (4);

13 (2) by inserting before paragraph (5) the follow14 ing paragraphs:

15 ‘‘(1) the term ‘Federal Partnership’ has the

16 meaning given the term in section 3 of the Workforce

17 Development Act of 1995;

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

19 means a means of providing one-stop delivery of core

20 services described in section 106(a)(2)(B) of the

21 Workforce Development Act of 1995;

22 ‘‘(3) the term ‘Secretary’, used without further

23 modification, means the Secretary of Labor and the

24 Secretary of Education, acting jointly; and’’; and
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1 (3) by redesignating paragraph (5) as para2 graph (4).

3 (b) CONFORMING AMENDMENTS.—

4 (1) SECRETARY.—Section 7(d) of the Wagner5 Peyser Act (29 U.S.C. 49f(d)) is amended by striking

6 ‘‘Secretary of Labor’’ and inserting ‘‘Secretary’’.

7 (2) DIRECTOR.—Section 12 of the Wagner-Peyser

8 Act (29 U.S.C. 49k) is amended by striking ‘‘The Di9 rector, with the approval of the Secretary of Labor,’’

10 and inserting ‘‘The Secretary’’.

11 SEC. 223. FUNCTIONS.

12 (a) IN GENERAL.—Section 3(a) of the Wagner-Peyser

13 Act (29 U.S.C. 49b(a)) is amended to read as follows:

14 ‘‘(a) The Federal Partnership shall—

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

16 of a nationwide system of labor exchange services for

17 the general public, provided through the one-stop ca18 reer center systems of the States;

19 ‘‘(2) assist in the development of continuous im20 provement models for such nationwide system that en21 sure private sector satisfaction with the system and

22 meet the demands of jobseekers relating to the system;

23 and

24 ‘‘(3) ensure, for individuals otherwise eligible to

25 receive unemployment compensation, the continuation
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1 of any activities in which the individuals are re2 quired to participate to receive the compensation.’’.

3 (b) CONFORMING AMENDMENTS.—Section 508(b) of the

4 Unemployment Compensation Amendments of 1976 (42

5 U.S.C. 603a(b)) is amended—

6 (1) by striking ‘‘the third sentence of section

7 3(a)’’ and inserting ‘‘section 3(b)’’; and

8 (2) by striking ‘‘49b(a)’’ and inserting ‘‘49b(b))’’.

9 SEC. 224. DESIGNATION OF STATE AGENCIES.

10 Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c)

11 is amended—

12 (1) by striking ‘‘a State shall, through its legisla13 ture,’’ and inserting ‘‘a Governor shall’’; and

14 (2) by striking ‘‘the United States Employment

15 Service’’ and inserting ‘‘the Federal Partnership’’.

16 SEC. 225. APPROPRIATIONS.

17 Section 5(c) of the Wagner-Peyser Act (29 U.S.C.

18 49d(c)) is amended by striking paragraph (3).

19 SEC. 226. DISPOSITION OF ALLOTTED FUNDS.

20 Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f)

21 is amended—

22 (1) in subsection (b)(2), by striking ‘‘and the ap23 propriate private industry council and chief elected

24 official or officials’’ and inserting ‘‘, and the appro25 priate local partnership established under section
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1 118(a) of the Workforce Development Act of 1995 (or,

2 where established, the appropriate local workforce de3 velopment board described in section 118(b) of such

4 Act)’’;

5 (2) in subsection (c)(2), by striking ‘‘any pro6 gram under’’ and all that follows and inserting ‘‘any

7 activity carried out under the Workforce Development

8 Act of 1995.’’;

9 (3) in subsection (d)—

10 (A) by striking ‘‘United States Employment

11 Service’’ and inserting ‘‘Federal Partnership’’;

12 and

13 (B) by striking ‘‘administrative entity

14 under the Job Training Partnership Act’’ and

15 inserting ‘‘local entity under the Workforce De16 velopment Act of 1995’’; and

17 (4) by adding at the end the following subsection:

18 ‘‘(e) All job search, placement, recruitment, labor mar19 ket information, and other labor exchange services author20 ized under subsection (a) shall be provided through the one21 stop career center system established by the State.’’.

22 SEC. 227. STATE PLANS.

23 Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g)

24 is amended—
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1 (1) by striking subsection (a) and inserting the

2 following new subsection:

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

4 this Act shall include in the portion of the State workforce

5 development plan described in section 104 of the Workforce

6 Development Act of 1995 relating to workforce employment

7 activities, detailed plans for carrying out this Act in such

8 State.’’;

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

10 (3) in subsection (d), by striking ‘‘United States

11 Employment Service’’ and inserting ‘‘Federal Part12 nership’’; and

13 (4) by redesignating subsection (d) as subsection

14 (b).

15 SEC. 228. FEDERAL ADVISORY COUNCIL.

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

17 is repealed.

18 Subtitle C—Amendments to the

19 Immigration and Nationality Act

20 SEC. 231. PROHIBITION ON USE OF FUNDS FOR CERTAIN

21 EMPLOYMENT ACTIVITIES.

22 Section 412(c)(1) of the Immigration and Nationality

23 Act is amended by adding at the end the following new sub24 paragraph:
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1 ‘‘(D) Funds available under this paragraph may not

2 be provided to States for workforce employment activities

3 authorized and funded under the Workforce Development

4 Act of 1995.’’.

5 Subtitle D—Amendments to the

6 National Literacy Act of 1991

7 SEC. 241. NATIONAL INSTITUTE FOR LITERACY.

8 Section 102 of the National Literacy Act of 1991 (20

9 U.S.C. 1213c note) is amended to read as follows:

10 ‘‘SEC. 102. NATIONAL INSTITUTE FOR LITERACY.

11 ‘‘(a) ESTABLISHMENT.—

12 ‘‘(1) IN GENERAL.—There is established the Na13 tional Institute for Literacy (referred to in this sec14 tion as the ‘Institute’). The Institute shall be adminis15 tered by the Federal Partnership established under

16 section 181 of the Workforce Development Act of 1995

17 (referred to in this Act as the ‘Federal Partnership’).

18 The Federal Partnership may include in the Institute

19 any research and development center, institute, or

20 clearinghouse that the Federal Partnership determines

21 is appropriately included in the Institute.

22 ‘‘(2) OFFICES.—The Institute shall have offices

23 separate from the offices of the Department of Edu24 cation or the Department of Labor.
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1 ‘‘(3) RECOMMENDATIONS.—The Federal Partner2 ship shall consider the recommendations of the Na3 tional Institute Council established under subsection

4 (d) in planning the goals of the Institute and in the

5 implementation of any programs to achieve such

6 goals. The daily operations of the Institute shall be

7 carried out by the Director of the Institute appointed

8 under subsection (g). If such Council’s recommenda9 tions are not followed, the Federal Partnership shall

10 provide a written explanation to such Council con11 cerning actions the Federal Partnership has taken

12 that includes the Federal Partnership’s reasons for

13 not following such Council’s recommendations with

14 respect to such actions. Such Council may also re15 quest a meeting with the Federal Partnership to dis16 cuss such Council’s recommendations.

17 ‘‘(b) DUTIES.—

18 ‘‘(1) IN GENERAL.—The Institute is authorized,

19 in order to improve the quality and accountability of

20 the adult basic skills and literacy delivery system,

21 to—

22 ‘‘(A) coordinate the support of research and

23 development on literacy and basic skills edu24 cation across Federal agencies and carry out
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1 basic and applied research and development on

2 topics such as—

3 ‘‘(i) identifying effective models of

4 basic skills and literacy education for adults

5 and families that are essential to success in

6 job training, work, the family, and the com7 munity;

8 ‘‘(ii) carrying out evaluations of the ef9 fectiveness of literacy and adult education

10 programs and services, including those sup11 ported by this Act; and

12 ‘‘(iii) supporting the development of

13 models at the State and local level of ac14 countability systems that consist of goals,

15 performance measures, benchmarks, and as16 sessments that can be used to improve the

17 quality of literacy and adult education serv18 ices;

19 ‘‘(B) provide technical assistance, informa20 tion, and other program improvement activities

21 to national, State, and local organizations, such

22 as—

23 ‘‘(i) providing information and train24 ing to State and local workforce develop25 ment boards and one-stop centers concern-
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1 ing how literacy and basic skills services

2 can be incorporated in a coordinated

3 workforce development model;

4 ‘‘(ii) improving the capacity of na5 tional, State, and local public and private

6 literacy and basic skills professional devel7 opment and technical assistance organiza8 tions, such as the State Literacy Resource

9 Centers established under section 103; and

10 ‘‘(iii) providing information on-line

11 and in print to all literacy and basic skills

12 programs about best practices, models of col13 laboration for effective workforce, family,

14 English as a Second Language, and other

15 literacy programs, and other informational

16 and communication needs; and

17 ‘‘(C) work with the Federal Partnership, the

18 Departments of Education, Labor, and Health

19 and Human Services, and the Congress to ensure

20 that they have the best information available on

21 literacy and basic skills programs in formulating

22 Federal policy around the issues of literacy,

23 basic skills, and workforce development.

24 ‘‘(2) CONTRACTS, COOPERATIVE AGREEMENTS,

25 AND GRANTS.—The Institute may enter into contracts
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1 or cooperative agreements with, or make grants to, in2 dividuals, public or private nonprofit institutions,

3 agencies, organizations, or consortia of such institu4 tions, agencies, or organizations to carry out the ac5 tivities of the Institute. Such grants, contracts, or

6 agreements shall be subject to the laws and regula7 tions that generally apply to grants, contracts, or

8 agreements entered into by Federal agencies.

9 ‘‘(c) LITERACY LEADERSHIP.—

10 ‘‘(1) FELLOWSHIPS.—The Institute is, in con11 sultation with the Council, authorized to award fel12 lowships, with such stipends and allowances that the

13 Director considers necessary, to outstanding individ14 uals pursuing careers in adult education or literacy

15 in the areas of instruction, management, research, or

16 innovation.

17 ‘‘(2) USE OF FELLOWSHIPS.—Fellowships

18 awarded under this subsection shall be used, under

19 the auspices of the Institute, to engage in research,

20 education, training, technical assistance, or other ac21 tivities to advance the field of adult education or lit22 eracy, including the training of volunteer literacy

23 providers at the national, State, or local level.
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1 ‘‘(3) DESIGNATION.—Individuals receiving fel2 lowships pursuant to this subsection shall be known

3 as ‘Literacy Leader Fellows’.

4 ‘‘(d) NATIONAL INSTITUTE COUNCIL.—

5 ‘‘(1) IN GENERAL.—

6 ‘‘(A) ESTABLISHMENT.—There is estab7 lished the National Institute Council (in this sec8 tion referred to as the ‘‘Council’’). The Council

9 shall consist of 10 individuals appointed by the

10 President with the advice and consent of the Sen11 ate from individuals who—

12 ‘‘(i) are not otherwise officers or em13 ployees of the Federal Government;

14 ‘‘(ii) are representative of entities or

15 groups described in subparagraph (B); and

16 ‘‘(iii) are chosen from recommenda17 tions made to the President by individuals

18 who represent such entities or groups.

19 ‘‘(B) ENTITIES OR GROUPS.—Entities or

20 groups described in this subparagraph are—

21 ‘‘(i) literacy organizations and provid22 ers of literacy services, including—

23 ‘‘(I) providers of literacy services

24 receiving assistance under this Act;

25 and
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1 ‘‘(II) nonprofit providers of lit2 eracy services;

3 ‘‘(ii) businesses that have demonstrated

4 interest in literacy programs;

5 ‘‘(iii) literacy students;

6 ‘‘(iv) experts in the area of literacy re7 search;

8 ‘‘(v) State and local governments; and

9 ‘‘(vi) organized labor.

10 ‘‘(2) DUTIES.—The Council shall—

11 ‘‘(A) make recommendations concerning the

12 appointment of the Director and staff of the In13 stitute;

14 ‘‘(B) provide independent advice on the op15 eration of the Institute; and

16 ‘‘(C) receive reports from the Federal Part17 nership and the Director.

18 ‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.—Ex19 cept as otherwise provided, the Council established by

20 this subsection shall be subject to the provisions of the

21 Federal Advisory Committee Act.

22 ‘‘(4) APPOINTMENT.—

23 ‘‘(A) DURATION.—Each member of the

24 Council shall be appointed for a term of 3 years.
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1 Any such member may be appointed for not

2 more than 2 consecutive terms.

3 ‘‘(B) VACANCIES.—Any member appointed

4 to fill a vacancy occurring before the expiration

5 of the term for which the member’s predecessor

6 was appointed shall be appointed only for the re7 mainder of that term. A member may serve after

8 the expiration of that member’s term until a suc9 cessor has taken office. A vacancy in the Council

10 shall be filled in the manner in which the origi11 nal appointment was made. A vacancy in the

12 Council shall not affect the powers of the Coun13 cil.

14 ‘‘(5) QUORUM.—A majority of the members of

15 the Council shall constitute a quorum but a lesser

16 number may hold hearings. Any recommendation

17 may be passed only by a majority of its members

18 present.

19 ‘‘(6) ELECTION OF OFFICERS.—The Chairperson

20 and Vice Chairperson of the Council shall be elected

21 by the members. The term of office of the Chairperson

22 and Vice Chairperson shall be 2 years.

23 ‘‘(7) MEETINGS.—The Council shall meet at the

24 call of the Chairperson or a majority of its members.
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1 ‘‘(e) GIFTS, BEQUESTS, AND DEVISES.—The Institute

2 and the Council may accept (but not solicit), use, and dis3 pose of gifts, bequests, or devises of services or property, both

4 real and personal, for the purpose of aiding or facilitating

5 the work of the Institute or the Council, respectively. Gifts,

6 bequests, or devises of money and proceeds from sales of

7 other property received as gifts, bequests, or devises shall

8 be deposited in the Treasury and shall be available for dis9 bursement upon order of the Institute or the Council, respec10 tively.

11 ‘‘(f) MAILS.—The Council and the Institute may use

12 the United States mails in the same manner and under the

13 same conditions as other departments and agencies of the

14 United States.

15 ‘‘(g) STAFF.—The Director of the Federal Partnership,

16 after considering recommendations made by the Council,

17 shall appoint and fix the pay of a Director of the Institute

18 and staff of the Institute.

19 ‘‘(h) APPLICABILITY OF CERTAIN CIVIL SERVICE

20 LAWS.—The Director of the Institute and staff of the Insti21 tute may be appointed without regard to the provisions of

22 title 5, United States Code, governing appointments in the

23 competitive service, and may be paid without regard to the

24 provisions of chapter 51 and subchapter III of chapter 53

25 of that title relating to classification and General Schedule
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1 pay rates, except that an individual so appointed may not

2 receive pay in excess of the annual rate of basic pay payable

3 for GS–15 of the General Schedule.

4 ‘‘(i) EXPERTS AND CONSULTANTS.—The Council and

5 the Institute may procure temporary and intermittent serv6 ices under section 3109(b) of title 5, United States Code.

7 ‘‘(j) REPORT.—The Institute shall submit a report bi8 ennially to the Committee on Economic and Educational

9 Opportunities of the House of Representatives and the Com10 mittee on Labor and Human Resources of the Senate. Each

11 report submitted under this subsection shall include—

12 ‘‘(1) a comprehensive and detailed description of

13 the Institute’s operations, activities, financial condi14 tion, and accomplishments in the field of literacy for

15 such fiscal year;

16 ‘‘(2) a description of how plans for the operation

17 of the Institute for the succeeding fiscal year will fa18 cilitate achievement of the goals of the Institute and

19 the goals of the literacy programs within the Federal

20 Partnership, the Department of Education, the De21 partment of Labor, and the Department of Health

22 and Human Services; and

23 ‘‘(3) any additional minority, or dissenting

24 views submitted by members of the Council.
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1 ‘‘(k) FUNDING.—Any amounts appropriated to the

2 Federal Partnership, the Secretary of Education, the Sec3 retary of Labor, or the Secretary of Health and Human

4 Services for purposes that the Institute is authorized to per5 form under this section may be provided to the Institute

6 for such purposes.’’.

7 SEC. 242. STATE LITERACY RESOURCE CENTERS.

8 Section 103 of the National Literacy Act of 1991 is

9 amended to read as follows:

10 ‘‘SEC. 103. STATE LITERACY RESOURCE CENTERS.

11 ‘‘(a) PURPOSE.—The purpose of this section is to es12 tablish a network of State or regional adult literacy re13 source centers to assist State and local public and private

14 nonprofit efforts to eliminate illiteracy by—

15 ‘‘(1) stimulating the coordination of literacy

16 services;

17 ‘‘(2) enhancing the capacity of State and local

18 organizations to provide literacy services; and

19 ‘‘(3) serving as a reciprocal link between the Na20 tional Institute for Literacy established under section

21 102 and service providers for the purpose of sharing

22 information, data, research, and expertise and lit23 eracy resources.

24 ‘‘(b) ESTABLISHMENT.—From amounts appropriated

25 pursuant to section 124(b)(7) of the Workforce Development
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1 Act of 1995, the Secretary of Labor and the Secretary of

2 Education, acting jointly on the advice of the Federal Part3 nership, are authorized to make grants for purposes of es4 tablishing a network of State or regional adult literacy re5 source centers.

6 ‘‘(c) ALLOTMENT.—

7 ‘‘(1) IN GENERAL.—From sums available for

8 purposes of making grants under this section for any

9 fiscal year, the Secretary of Labor and the Secretary

10 of Education, acting jointly on the advice of the Fed11 eral Partnership, shall allot to each State having an

12 application approved under subsection (f) an amount

13 that bears the same ratio to such sums as the amount

14 allotted to such State—

15 ‘‘(A) in the case of fiscal years 1996, 1997,

16 and 1998 under section 313(b) of the Adult Edu17 cation Act (20 U.S.C. 1201(b)) for fiscal year

18 1995 for the purpose of making grants under sec19 tion 321 of such Act (20 U.S.C. 1203), bears to

20 the aggregate amount allotted to all States under

21 such section for fiscal year 1995 for such pur22 pose; and

23 ‘‘(B) in the case of fiscal years 1999, 2000,

24 and 2001, under section 102 of the Workforce De25 velopment Act of 1995 for the fiscal year preced-
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1 ing the fiscal year for which the determination

2 is made, bears to the aggregate amount allotted

3 to all States under such section for such preced4 ing fiscal year.

5 ‘‘(2) CONTRACTS.—The chief executive officer of

6 each State that receives its allotment under this sec7 tion shall contract on a competitive basis with the

8 State educational agency, 1 or more local educational

9 agencies, a State office on literacy, a volunteer orga10 nization, a community-based organization, an insti11 tution of higher education, or another nonprofit en12 tity to operate a State or regional literacy resource

13 center. No applicant participating in a competition

14 pursuant to the preceding sentence shall participate

15 in the review of its own application.

16 ‘‘(d) USE OF FUNDS.—Funds provided to each State

17 under subsection (c)(1) to carry out this section shall be

18 used to conduct activities to—

19 ‘‘(1) improve and promote the diffusion and

20 adoption of state-of-the-art teaching methods, tech21 nologies, and program evaluations;

22 ‘‘(2) develop innovative approaches to the coordi23 nation of literacy services within and among States

24 and with the Federal Government;
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1 ‘‘(3) assist public and private agencies in coordi2 nating the delivery of literacy services;

3 ‘‘(4) encourage government and industry part4 nerships, including partnerships with small busi5 nesses, private nonprofit organizations, and commu6 nity-based organizations;

7 ‘‘(5) encourage innovation and experimentation

8 in literacy activities that will enhance the delivery of

9 literacy services and address emerging problems;

10 ‘‘(6) provide technical and policy assistance to

11 State and local governments and service providers to

12 improve literacy policy and programs and access to

13 such programs;

14 ‘‘(7) provide training and technical assistance to

15 literacy instructors in reading instruction and in—

16 ‘‘(A) selecting and making the most effective

17 use of state-of-the-art methodologies, instruc18 tional materials, and technologies such as—

19 ‘‘(i) computer assisted instruction;

20 ‘‘(ii) video tapes;

21 ‘‘(iii) interactive systems; and

22 ‘‘(iv) data link systems; or

23 ‘‘(B) assessing learning style, screening for

24 learning disabilities, and providing individual25 ized remedial reading instruction; or
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1 ‘‘(8) encourage and facilitate the training of full2 time professional adult educators.

3 ‘‘(e) ALTERNATIVE USES OF EQUIPMENT.—Equipment

4 purchased pursuant to this section, when not being used to

5 carry out the provisions of this section, may be used for

6 other instructional purposes if—

7 ‘‘(1) the acquisition of the equipment was rea8 sonable and necessary for the purpose of conducting

9 a properly designed project or activity under this sec10 tion;

11 ‘‘(2) the equipment is used after regular program

12 hours or on weekends; and

13 ‘‘(3) such other use is—

14 ‘‘(A) incidental to the use of the equipment

15 under this section;

16 ‘‘(B) does not interfere with the use of the

17 equipment under this section; and

18 ‘‘(C) does not add to the cost of using the

19 equipment under this section.

20 ‘‘(f) APPLICATIONS.—Each State or group of States,

21 as appropriate, that desires to receive a grant under this

22 section for a regional adult literacy resource center, a State

23 adult literacy resource center, or both, shall submit to the

24 Federal Partnership an application that describes how the

25 State or group of States will—
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1 ‘‘(1) develop a literacy resource center or expand

2 an existing literacy resource center;

3 ‘‘(2) provide services and activities with the as4 sistance provided under this section;

5 ‘‘(3) assure access to services of the center for the

6 maximum participation of all public and private

7 programs and organizations providing or seeking to

8 provide basic skills instruction, including local edu9 cational agencies, agencies responsible for corrections

10 education, welfare agencies, labor organizations, busi11 nesses, volunteer groups, and community-based orga12 nizations;

13 ‘‘(4) address the measurable goals for improving

14 literacy levels as set forth in the plan submitted pur15 suant to section 104 of the Workforce Development Act

16 of 1995; and

17 ‘‘(5) develop procedures for the coordination of

18 literacy activities for statewide and local literacy ef19 forts conducted by public and private organizations,

20 and for enhancing the systems of service delivery.

21 ‘‘(g) PAYMENTS; FEDERAL SHARE.—

22 ‘‘(1) PAYMENTS.—The Secretary of Labor and

23 the Secretary of Education, acting jointly on the ad24 vice of the Federal Partnership, shall pay to each

25 State having an application approved pursuant to
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1 subsection (f) the Federal share of the cost of the ac2 tivities described in the application.

3 ‘‘(2) FEDERAL SHARE.—The Federal share—

4 ‘‘(A) for each of the first 2 fiscal years in

5 which the State receives funds under this section

6 shall not exceed 80 percent;

7 ‘‘(B) for each of the third and fourth fiscal

8 years in which the State receives funds under

9 this section shall not exceed 70 percent; and

10 ‘‘(C) for the fifth and each succeeding fiscal

11 year in which the State receives funds under this

12 section shall not exceed 60 percent.

13 ‘‘(3) NON-FEDERAL SHARE.—The non-Federal

14 share of payments under this section may be in cash

15 or in kind, fairly evaluated, including plant, equip16 ment, or services.

17 ‘‘(h) REGIONAL CENTERS.—

18 ‘‘(1) IN GENERAL.—A group of States may enter

19 into an interstate agreement to develop and operate

20 a regional adult literacy resource center for purposes

21 of receiving assistance under this section if the States

22 determine that a regional approach is more appro23 priate for their situation.

24 ‘‘(2) REQUIREMENTS.—Any State that receives

25 assistance under this section as part of a regional
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1 center shall only be required to provide under sub2 section (g) 50 percent of the funds such State would

3 otherwise be required to provide under such sub4 section.

5 ‘‘(3) MINIMUM.—In any fiscal year in which the

6 amount a State will receive under this section is less

7 than $100,000, the Federal Partnership may des8 ignate the State to receive assistance under this sec9 tion only as part of a regional center.

10 ‘‘(4) INAPPLICABILITY.—The provisions of para11 graph (3) shall not apply to any State that can dem12 onstrate to the Federal Partnership that the total

13 amount of Federal, State, local and private funds ex14 pended to carry out the purposes of this section would

15 equal or exceed $100,000.

16 ‘‘(5) SPECIAL RULE.—In any fiscal year in

17 which paragraph (2) applies, the Federal Partnership

18 may allow certain States that receive assistance as

19 part of a regional center to reserve a portion of such

20 assistance for a State adult literacy resource center

21 pursuant to this section.’’.

22 SEC. 243. NATIONAL WORKFORCE LITERACY ASSISTANCE

23 COLLABORATIVE.

24 Subsection (c) of section 201 of the National Literacy

25 Act of 1991 (20 U.S.C. 1211–1) is repealed.
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1 SEC. 244. FAMILY LITERACY PUBLIC BROADCASTING PRO2 GRAM.

3 Section 304 of the National Literacy Act of 1991 (20

4 U.S.C. 1213c note) is repealed.

5 SEC. 245. MANDATORY LITERACY PROGRAM.

6 Paragraph (3) of section 601(i) of the National Lit7 eracy Act of 1991 (20 U.S.C. 1211–2(i) is amended—

8 (1) by striking ‘‘1994, and’’ and inserting

9 ‘‘1994,’’; and

10 (2) by inserting ‘‘, and such sums as may be nec11 essary for each of the fiscal years 1996, 1997, 1998,

12 1999, 2000, and 2001’’ before the period.

13 TITLE III—MUSEUMS AND

14 LIBRARIES

15 SEC. 301. MUSEUM AND LIBRARY SERVICES.

16 The Museum Services Act (20 U.S.C. 961 et seq.) is

17 amended to read as follows:

18 ‘‘TITLE II—MUSEUM AND

19 LIBRARY SERVICES

20 ‘‘Subtitle A—General Provisions

21 ‘‘SEC. 201. SHORT TITLE.

22 ‘‘This title may be cited as the ‘Museum and Library

23 Services Act’.

24 ‘‘SEC. 202. GENERAL DEFINITIONS.

25 ‘‘As used in this title:
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1 ‘‘(1) COMMISSION.—The term ‘Commission’

2 means the National Commission on Libraries and In3 formation Science established under section 3 of the

4 National Commission on Libraries and Information

5 Science Act (20 U.S.C. 1502).

6 ‘‘(2) DIRECTOR.—The term ‘Director’ means the

7 Director of the Institute appointed under section 204.

8 ‘‘(3) INSTITUTE.—The term ‘Institute’ means the

9 Institute of Museum and Library Services established

10 under section 203.

11 ‘‘(4) MUSEUM BOARD.—The term ‘Museum

12 Board’ means the National Museum Services Board

13 established under section 276.

14 ‘‘SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

15 ‘‘(a) ESTABLISHMENT.—There is established within

16 the Foundation an Institute of Museum and Library Serv17 ices.

18 ‘‘(b) OFFICES.—The Institute shall consist of an Office

19 of Museum Services and an Office of Library Services.

20 There shall be a National Museum Services Board in the

21 Office of Museum Services.

22 ‘‘SEC. 204. DIRECTOR OF THE INSTITUTE.

23 ‘‘(a) APPOINTMENT.—
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1 ‘‘(1) IN GENERAL.—The Institute shall be headed

2 by a Director, appointed by the President, by and

3 with the advice and consent of the Senate.

4 ‘‘(2) TERM.—The Director shall serve for a term

5 of 4 years.

6 ‘‘(3) QUALIFICATIONS.—Beginning with the first

7 individual appointed to the position of Director after

8 the date of enactment of this Act, every second indi9 vidual so appointed shall be appointed from among

10 individuals who have special competence with regard

11 to library and information services. Beginning with

12 the second individual appointed to the position of Di13 rector after the date of enactment of this Act, every

14 second individual so appointed shall be appointed

15 from among individuals who have special competence

16 with regard to museum services.

17 ‘‘(b) COMPENSATION.—The Director shall be com18 pensated at the rate provided for level III of the Executive

19 Schedule under section 5314 of title 5, United States Code.

20 ‘‘(c) DUTIES AND POWERS.—The Director shall per21 form such duties and exercise such powers as may be pre22 scribed by law, including—

23 ‘‘(1) awarding financial assistance for activities

24 described in this title; and
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1 ‘‘(2) using not less than 5 percent and not more

2 than 7 percent of the funds made available under this

3 title for each fiscal year to award financial assistance

4 for projects that involve both—

5 ‘‘(A) activities relating to library and infor6 mation services, as described in subtitle B, car7 ried out in accordance with such subtitle; and

8 ‘‘(B) activities relating to museum services,

9 as described in subtitle C, carried out in accord10 ance with such subtitle.

11 ‘‘(d) NONDELEGATION.—The Director shall not dele12 gate any of the functions of the Director to any person who

13 is not directly responsible to the Director.

14 ‘‘(e) COORDINATION.—The Director shall ensure co15 ordination of the policies and activities of the Institute with

16 the policies and activities of other agencies and offices of

17 the Federal Government having interest in and responsibil18 ities for the improvement of museums and libraries and in19 formation services.

20 ‘‘SEC. 205. DEPUTY DIRECTORS.

21 ‘‘(a) APPOINTMENT.—The Office of Library Services

22 shall be headed by a Deputy Director, who shall be ap23 pointed by the Director from among individuals who have

24 a graduate degree in library science and expertise in li25 brary and information services. The Office of Museum Serv-
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1 ices shall be headed by a Deputy Director, who shall be ap2 pointed by the Director from among individuals who have

3 expertise in museum services.

4 ‘‘(b) COMPENSATION.—Each such position of Deputy

5 Director shall be a Senior Executive Service position, which

6 shall be paid at a rate of pay for a position at ES–1 of

7 the Senior Executive Service schedule.

8 ‘‘SEC. 206. PERSONNEL.

9 ‘‘(a) IN GENERAL.—The Director may, in accordance

10 with applicable provisions of title 5, United States Code,

11 appoint and determine the compensation of such employees

12 as the Director determines to be necessary to carry out the

13 duties of the Institute.

14 ‘‘(b) VOLUNTARY SERVICES.—The Director may accept

15 and utilize the voluntary services of individuals and reim16 burse the individuals for travel expenses, including per

17 diem in lieu of subsistence, in the same amounts and to

18 the same extent as authorized under section 5703 of title

19 5, United States Code, for persons employed intermittently

20 in Federal Government service.

21 ‘‘SEC. 207. CONTRIBUTIONS.

22 ‘‘The Institute shall have authority to solicit, accept,

23 receive, and invest in the name of the United States, gifts,

24 bequests, or devises of money and other property or services

25 and to use such property or services in furtherance of the
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1 functions of the Institute. Any proceeds from such gifts, be2 quests, or devises, after acceptance by the Institute, shall

3 be paid by the donor or the representative of the donor to

4 the Director. The Director shall enter the proceeds in a spe5 cial interest bearing account to the credit of the Institute

6 for the purposes in each case specified.

7 ‘‘Subtitle B—Library Services and

8 Technology

9 ‘‘SEC. 211. SHORT TITLE.

10 ‘‘This subtitle may be cited as the ‘Library Services

11 and Technology Act’.

12 ‘‘SEC. 212. STATEMENT OF PURPOSE; RECOGNITION OF

13 NEED.

14 ‘‘(a) STATEMENT OF PURPOSE.—The purposes of this

15 subtitle are as follows:

16 ‘‘(1) To stimulate excellence and promote equity

17 and lifelong access to learning and information re18 sources in all types of libraries.

19 ‘‘(2) To combine the ability of the Federal Gov20 ernment to stimulate significant improvement and

21 innovation in library services with support at State

22 and local levels, and with cooperative programs with

23 other agencies and with public and private sector

24 partnerships, to achieve national library service goals.
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1 ‘‘(3) To establish national library service goals

2 for the 21st century. Such goals are that every person

3 in America will be served by a library that—

4 ‘‘(A) provides all users access to informa5 tion through regional, State, national, and inter6 national electronic networks;

7 ‘‘(B) contributes to a productive workforce,

8 and to economic development, by providing re9 sources and services designed to meet local com10 munity needs;

11 ‘‘(C) provides a full range of resources and

12 programs to develop reading and critical think13 ing skills for children and adults;

14 ‘‘(D) provides targeted services to people of

15 diverse geographic, cultural, and socioeconomic

16 backgrounds, to individuals with disabilities,

17 and to people with limited functional literacy or

18 information skills; and

19 ‘‘(E) provides adequate hours of operation,

20 facilities, staff, collections, and electronic access

21 to information.

22 ‘‘(b) RECOGNITION OF NEED.—The Congress recog23 nizes that strong library services are essential to empower

24 people to succeed in our Nation’s increasingly global and

25 technological environment.
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1 ‘‘SEC. 213. DEFINITIONS.

2 ‘‘As used in this subtitle:

3 ‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’

4 means any tribe, band, nation, or other organized

5 group or community, including any Alaska native

6 village, regional corporation, or village corporation,

7 as defined in or established pursuant to the Alaska

8 Native Claims Settlement Act (43 U.S.C. 1601 et

9 seq.), which is recognized by the Secretary of the Inte10 rior as eligible for the special programs and services

11 provided by the United States to Indians because of

12 their status as Indians.

13 ‘‘(2) LIBRARY CONSORTIA.—The term ‘library

14 consortia’ means any local, statewide, regional, inter15 state, or international cooperative association of li16 brary entities which provides for the systematic and

17 effective coordination of the resources of school, public,

18 academic, and special libraries and information cen19 ters for improved services for their clientele.

20 ‘‘(3) LIBRARY ENTITY.—The term ‘library entity’

21 means a library that performs all activities of a li22 brary relating to the collection and organization of li23 brary materials and other information and that

24 makes the materials and information publicly avail25 able. Such term includes State library administrative

26 agencies and the libraries, library related entities, co-
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1 operatives, and consortia through which library serv2 ices are made publicly available.

3 ‘‘(4) PUBLIC LIBRARY.—The term ‘public li4 brary’ means a library that serves free of charge all

5 residents of a community, district, or region, and re6 ceives its financial support in whole or in part from

7 public funds. Such term also includes a research li8 brary, which, for the purposes of this sentence, means

9 a library, which—

10 ‘‘(A) makes its services available to the pub11 lic free of charge;

12 ‘‘(B) has extensive collections of books,

13 manuscripts, and other materials suitable for

14 scholarly research which are not available to the

15 public through public libraries;

16 ‘‘(C) engages in the dissemination of hu17 manistic knowledge through services to readers,

18 fellowships, educational and cultural programs,

19 publications of significant research, and other

20 activities; and

21 ‘‘(D) is not an integral part of an institu22 tion of higher education.

23 ‘‘(5) STATE.—The term ‘State’, unless otherwise

24 specified, includes the several States of the United

25 States, the District of Columbia, the Commonwealth
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1 of Puerto Rico, Guam, American Samoa, the United

2 States Virgin Islands, the Commonwealth of the

3 Northern Mariana Islands, the Republic of the Mar4 shall Islands, the Federated States of Micronesia, and

5 the Republic of Palau.

6 ‘‘(6) STATE ADVISORY COUNCIL.—The term

7 ‘State advisory council’ means an advisory council

8 established pursuant to section 252.

9 ‘‘(7) STATE LIBRARY ADMINISTRATIVE AGEN10 CY.—The term ‘State library administrative agency’

11 means the official agency of a State charged by law

12 of that State with the extension and development of

13 public library services throughout the State, which

14 has adequate authority under law of the State to ad15 minister the State plan in accordance with the provi16 sions of this subtitle.

17 ‘‘(8) STATE PLAN.—The term ‘State plan’ means

18 the document which gives assurances that the offi19 cially designated State library administrative agency

20 has the fiscal and legal authority and capability to

21 administer all aspects of this subtitle, provides assur22 ances for establishing the State’s policies, priorities,

23 criteria, and procedures necessary to the implementa24 tion of all programs under this subtitle, submits cop25 ies for approval as required by regulations promul-
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1 gated by the Director, and identifies a State’s library

2 needs and sets forth the activities to be taken toward

3 meeting the identified needs supported with the assist4 ance of Federal funds made available under this sub5 title.

6 ‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘(a) AUTHORITY.—

8 ‘‘(1) IN GENERAL.—There are authorized to be

9 appropriated to the Secretary of Education—

10 ‘‘(A) for the purpose of awarding grants

11 under subchapter A of chapter 2 and for related

12 administrative expenses, $75,000,000 for fiscal

13 year 1996, and such sums as may be necessary

14 for each of the 4 succeeding fiscal years; and

15 ‘‘(B) for the purpose of awarding grants

16 under subchapter B of chapter 2 and for related

17 administrative expenses, $75,000,000 for fiscal

18 year 1996, and such sums as may be necessary

19 for each of the 4 succeeding fiscal years.

20 ‘‘(2) TRANSFER.—The Secretary of Education

21 shall transfer any funds appropriated under the au22 thority of paragraph (1) to the Director to enable the

23 Director to carry out this subtitle.

24 ‘‘(b) JOINT PROJECTS.—Not less than 5 percent and

25 not more than 7 percent of the funds appropriated under
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1 this section for a fiscal year may be made available for

2 projects described in section 204(c)(2) for the fiscal year.

3 ‘‘(c) ADMINISTRATION.—Not more than 10 percent of

4 the funds appropriated under this section for a fiscal year

5 may be used to pay for the Federal administrative costs

6 of carrying out this subtitle.

7 ‘‘CHAPTER 1—BASIC PROGRAM

8 REQUIREMENTS

9 ‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

10 ‘‘(a) RESERVATIONS.—From the amount appropriated

11 under the authority of section 214(a) for any fiscal year,

12 the Director—

‘‘(1) shall reserve 11 13 ⁄2 percent to award grants in

14 accordance with section 261; and

15 ‘‘(2) shall reserve 8 percent to carry out a na16 tional leadership program in library science in ac17 cordance with section 262.

18 ‘‘(b) ALLOTMENTS.—

19 ‘‘(1) IN GENERAL.—From the sums appropriated

20 under the authority of section 214(a) and not reserved

21 under subsection (a) for any fiscal year, the Director

22 shall allot the minimum allotment, as determined

23 under paragraph (3), to each State. Any sums re24 maining after minimum allotments have been made
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1 for such year shall be allotted in the manner set forth

2 in paragraph (2).

3 ‘‘(2) REMAINDER.—From the remainder of any

4 sums appropriated under the authority of section

5 214(a) that are not reserved under subsection (a) and

6 not allotted under paragraph (1) for any fiscal year,

7 the Director shall allot to each State an amount that

8 bears the same relation to such remainder as the pop9 ulation of the State bears to the population of all the

10 States.

11 ‘‘(3) MINIMUM ALLOTMENT.—

12 ‘‘(A) IN GENERAL.—For the purposes of this

13 subsection, the minimum allotment shall be—

14 ‘‘(i) with respect to appropriations for

15 the purposes of subchapter A of chapter 2,

16 $200,000 for each State, except that the

17 minimum allotment shall be $40,000 in the

18 case of Guam, American Samoa, the United

19 States Virgin Islands, the Commonwealth of

20 the Northern Mariana Islands, the Republic

21 of the Marshall Islands, the Federated

22 States of Micronesia, and the Republic of

23 Palau; and

24 ‘‘(ii) with respect to appropriations for

25 the purposes of subchapter B of chapter 2,
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1 $200,000 for each State, except that the

2 minimum allotment shall be $40,000 in the

3 case of Guam, American Samoa, the United

4 States Virgin Islands, the Commonwealth of

5 the Northern Mariana Islands, the Republic

6 of the Marshall Islands, the Federated

7 States of Micronesia, and the Republic of

8 Palau.

9 ‘‘(B) RATABLE REDUCTIONS.—If the sums

10 appropriated under the authority of section

11 214(a) and not reserved under subsection (a) for

12 any fiscal year are insufficient to fully satisfy

13 the aggregate of the minimum allotments for all

14 States for that purpose for such year, each of

15 such minimum allotments shall be reduced rat16 ably.

17 ‘‘(4) DATA.—The population of each State and of

18 all the States shall be determined by the Director on

19 the basis of the most recent data available from the

20 Bureau of the Census.

21 ‘‘SEC. 222. ADMINISTRATION AND EVALUATION.

22 ‘‘(a) IN GENERAL.—Not more than 5 percent of the

23 total funds received under this subtitle for any fiscal year

24 by a State may be used for administration.
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1 ‘‘(b) CONSTRUCTION.—Nothing in this section shall be

2 construed to limit spending for evaluation costs under sec3 tion 251 from sources other than this subtitle.

4 ‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE

5 OF EFFORT REQUIREMENTS.

6 ‘‘(a) PAYMENTS.—The Director shall pay to each State

7 library administrative agency having a State plan ap8 proved under section 224 the Federal share of the cost of

9 the activities described in the State plan.

10 ‘‘(b) FEDERAL SHARE.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (3), the Federal share shall be 50 percent.

13 ‘‘(2) NON-FEDERAL SHARE.—The non-Federal

14 share of payments shall be provided from non-Fed15 eral, State, or local sources.

16 ‘‘(3) SPECIAL RULE.—The Federal share—

17 ‘‘(A) for the Commonwealth of Puerto Rico,

18 Guam, American Samoa, the United States Vir19 gin Islands, and the Commonwealth of the

20 Northern Mariana Islands, shall be 66 percent;

21 and

22 ‘‘(B) for the Republic of the Marshall Is23 lands, the Federated States of Micronesia, and

24 the Republic of Palau, shall be 100 percent.

25 ‘‘(c) MAINTENANCE OF EFFORT.—
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1 ‘‘(1) IN GENERAL.—The amount otherwise pay2 able to a State for a fiscal year under chapter 2 shall

3 be reduced if the level of State expenditures, as de4 scribed in paragraph (2), for the previous fiscal year

5 are less than the average of the total of such expendi6 tures for the 3 fiscal years preceding that previous fis7 cal year. The amount of the reduction in allotment

8 for any fiscal year shall be in exact proportion to the

9 amount which the State fails to meet the requirement

10 of this subsection.

11 ‘‘(2) LEVEL OF STATE EXPENDITURES.—The

12 level of State expenditures for the purposes of para13 graph (1) shall include all State dollars expended by

14 the State library administrative agency for library

15 programs that are consistent with the purposes of this

16 subtitle. All funds included in the maintenance of ef17 fort calculation under this subsection shall be ex18 pended during the fiscal year for which the deter19 mination is made, and shall not include capital ex20 penditures, special one-time project costs, or similar

21 windfalls.

22 ‘‘(3) WAIVER.—The Director may waive the re23 quirements of paragraph (1) if the Director deter24 mines that such a waiver would be equitable due to

25 exceptional or uncontrollable circumstances such as a
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1 natural disaster or a precipitous and unforeseen de2 cline in the financial resources of the State.

3 ‘‘SEC. 224. STATE PLANS.

4 ‘‘(a) STATE PLAN REQUIRED.—

5 ‘‘(1) IN GENERAL.—In order to be eligible to re6 ceive a grant under this subtitle, a State library ad7 ministrative agency shall submit a State plan to the

8 Director not later than April 1, 1996.

9 ‘‘(2) DURATION.—The State plan shall cover a

10 period of 5 fiscal years.

11 ‘‘(3) REVISIONS.—If a State library administra12 tive agency makes a substantive revision to its State

13 plan, then the State library administrative agency

14 shall submit to the Director an amendment to the

15 State plan containing such revision not later than

16 April 1 of the fiscal year preceding the fiscal year for

17 which the amendment will be effective.

18 ‘‘(b) CONTENTS.—The State plan shall—

19 ‘‘(1) specify priorities for improvement of library

20 services so that all people in the State have convenient

21 and appropriate access to information delivered by li22 braries through new and emerging technologies as23 sisted under subchapter A of chapter 2;

24 ‘‘(2) identify those persons who need special serv25 ices under subchapter B of chapter 2 and specify pri-
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1 orities for meeting the purpose described in section

2 241(a);

3 ‘‘(3) describe how section 243 will be imple4 mented within the State, specify the accountability

5 and evaluation procedures to be followed by public li6 braries receiving funds under such section, and speci7 fy whether and how funds are to be aggregated under

8 section 243(b)(2) to improve library services provided

9 to children in the State described in section 243(a)(2);

10 ‘‘(4) describe the activities and services for which

11 assistance is sought, including—

12 ‘‘(A) priorities for the use of funds under

13 this subtitle; and

14 ‘‘(B) a description of the types of libraries

15 and library entities that will be eligible to re16 ceive funds under this subtitle;

17 ‘‘(5) provide that any funds paid to the State in

18 accordance with the State plan shall be expended sole19 ly for the purposes for which the funds are authorized

20 and appropriated and that such fiscal control and

21 fund accounting procedures have been adopted as may

22 be necessary to assure proper disbursement of, and ac23 count for, Federal funds paid to the State (including

24 any such funds paid by the State to any other entity)

25 under this subtitle;
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1 ‘‘(6) provide procedures to ensure that the State

2 library administrative agency shall involve libraries

3 and users throughout the State in policy decisions re4 garding implementation of this subtitle, and develop5 ment of the State plan, including establishing the

6 State advisory council;

7 ‘‘(7) provide satisfactory assurance that the

8 State library administrative agency—

9 ‘‘(A) will make such reports, in such form

10 and containing such information, as the Director

11 may require to carry out this subtitle and to de12 termine the extent to which funds provided under

13 this subtitle have been effective in carrying out

14 the purposes of this subtitle, including reports on

15 evaluations under section 251;

16 ‘‘(B) will keep such records and afford such

17 access thereto as the Director may find necessary

18 to assure the correctness and verification of such

19 reports;

20 ‘‘(C) will provide to State advisory council

21 members an orientation regarding the provisions

22 of this subtitle and members’ responsibilities, in23 cluding clear, easily understandable information

24 about the State plan; and
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1 ‘‘(D) will report annually at a meeting of

2 the State advisory council on the State library

3 administrative agency’s progress toward meeting

4 the goals and objectives of the State plan;

5 ‘‘(8) describe the process for assessing the needs

6 for library and information services within the State,

7 and describe the results of the most recent needs as8 sessment;

9 ‘‘(9) establish goals and objectives for achieving

10 within the State the purposes of this subtitle, includ11 ing the purposes in sections 212(a), 231(a), and

12 241(a); and

13 ‘‘(10) describe how the State library administra14 tive agency, in consultation with the State advisory

15 council, will—

16 ‘‘(A) administer this subtitle; and

17 ‘‘(B) conduct evaluations under section 251,

18 including a description of the types of evaluation

19 methodologies to be employed.

20 ‘‘(c) ACCOUNTABILITY.—Each State plan shall—

21 ‘‘(1) establish State-defined performance goals to

22 set forth the level of performance to be achieved by an

23 activity assisted under this subtitle;

24 ‘‘(2) express such goals in an objective, quantifi25 able, and measurable form unless authorized to be in
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1 an alternative form in accordance with section

2 1115(b) of title 31, United States Code;

3 ‘‘(3) briefly describe the operational processes,

4 skills and technology, and the human, capital, infor5 mation, or other resources, required to meet the per6 formance goals;

7 ‘‘(4) establish performance indicators in accord8 ance with subsection (d) to be used in measuring or

9 assessing the relevant outputs, service levels, and out10 comes, of each activity assisted under this subtitle;

11 ‘‘(5) provide a basis for comparing actual pro12 gram results with the established performance goals;

13 and

14 ‘‘(6) describe the means to be used to verify and

15 validate measured values.

16 ‘‘(d) PERFORMANCE INDICATORS.—Performance indi17 cators described in subsection (c)(4) shall include—

18 ‘‘(1) evidence of progress toward the national li19 brary service goals under section 212(a)(3);

20 ‘‘(2) consultation with the State educational

21 agency;

22 ‘‘(3) identification of activities suitable for na23 tionwide replication; and

24 ‘‘(4) progress in improvement of library services

25 provided to children described in section 243(a)(2).
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1 ‘‘(e) APPROVAL.—

2 ‘‘(1) IN GENERAL.—The Director shall approve

3 any State plan under this subtitle that meets the re4 quirements of this subtitle and provides satisfactory

5 assurances that the provisions of such plan will be

6 carried out.

7 ‘‘(2) PUBLIC AVAILABILITY.—Each State library

8 administrative agency receiving a grant under this

9 subtitle shall make the State plan available to the

10 public.

11 ‘‘(3) ADMINISTRATION.—If the Director deter12 mines that the State plan does not meet the require13 ments of this section, the Director shall—

14 ‘‘(A) immediately notify the State library

15 administrative agency of such determination and

16 the reasons for such determination;

17 ‘‘(B) offer the State library administrative

18 agency the opportunity to revise its State plan;

19 ‘‘(C) provide technical assistance in order to

20 assist the State library administrative agency to

21 meet the requirements of this section; and

22 ‘‘(D) provide the State library administra23 tive agency the opportunity for a hearing.
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1 ‘‘CHAPTER 2—LIBRARY PROGRAMS

2 ‘‘Subchapter A—Information Access Through

3 Technology

4 ‘‘SEC. 231. GRANTS TO STATES FOR INFORMATION ACCESS

5 THROUGH TECHNOLOGY.

6 ‘‘(a) PURPOSE.—The purpose of this subchapter is to

7 provide for the improvement of library services so that all

8 people have access to information delivered by libraries

9 through new and emerging technologies, whether the infor10 mation originates locally, from the State, nationally, or

11 globally.

12 ‘‘(b) GRANTS.—

13 ‘‘(1) IN GENERAL.—The Director shall award

14 grants under this subchapter from allotments under

15 section 221(b) to States that have State plans ap16 proved under section 224.

17 ‘‘(2) FEDERAL SHARE.—Grants awarded under

18 paragraph (1) shall be used to pay the Federal share

19 of the cost of activities under section 232 that are de20 scribed in a State plan approved under section 224.

21 ‘‘SEC. 232. AUTHORIZED ACTIVITIES.

22 ‘‘Each State that receives a grant under section 231(b)

23 may use the grant funds to provide statewide services and

24 subgrants to public libraries, other types of libraries and

25 library consortia, or library linkages with other entities, in
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1 accordance with the State plan. Such services and subgrants

2 shall involve—

3 ‘‘(1) organization, access, and delivery of infor4 mation;

5 ‘‘(2) lifelong learning, and workforce and eco6 nomic development; or

7 ‘‘(3) support of technology infrastructure.

8 ‘‘Subchapter B—Information Empowerment

9 Through Special Services

10 ‘‘SEC. 241. GRANTS TO STATES FOR INFORMATION

11 EMPOWERMENT THROUGH SPECIAL SERV12 ICES.

13 ‘‘(a) PURPOSE.—The purpose of this subchapter is to

14 provide for the improvement of library and information

15 services targeted to persons of all ages and cultures who

16 have difficulty using a library and to communities which

17 are geographically disadvantaged in access to libraries, who

18 or which need special materials or services, or who or which

19 will benefit from outreach services for equity of access to

20 library services and information technologies, including

21 children (from birth through age 17) from families living

22 below the income official poverty line (as defined by the Of23 fice of Management and Budget, and revised annually in

24 accordance with section 673(2) of the Community Services
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1 Block Grant Act (42 U.S.C. 9902(2)) applicable to a family

2 of the size involved).

3 ‘‘(b) GRANTS.—

4 ‘‘(1) IN GENERAL.—The Director shall award

5 grants under this subchapter from allotments under

6 section 221(b) to States that have State plans ap7 proved under section 224.

8 ‘‘(2) FEDERAL SHARE.—Grants awarded under

9 paragraph (1) shall be used to pay the Federal share

10 of the cost of the activities under section 242 that are

11 described in a State plan approved under section 224.

12 ‘‘SEC. 242. AUTHORIZED ACTIVITIES.

13 ‘‘Each State that receives a grant under section 241(b)

14 may use the grant funds to provide statewide services and

15 subgrants to public libraries, other types of libraries and

16 library consortia, or library linkages with other entities, in

17 accordance with the State plan. Such services and subgrants

18 shall involve activities that—

19 ‘‘(1) increase literacy and lifelong learning;

20 ‘‘(2) serve persons in rural, underserved, or

21 inner-city areas; or

22 ‘‘(3) support the provision of special services.

23 ‘‘SEC. 243. SERVICES FOR CHILDREN IN POVERTY.

24 ‘‘(a) STATE LEVEL RESERVATION.—
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1 ‘‘(1) IN GENERAL.—Except as provided in sub2 section (c), from the total amount that each State li3 brary administrative agency receives under this sub4 chapter for a fiscal year, such agency shall reserve the

5 amount of funds determined under paragraph (2) to

6 provide assistance to public libraries in the State to

7 enable such libraries to enhance the provision of spe8 cial services to children described in such paragraph

9 who are served by such libraries.

10 ‘‘(2) AMOUNT.—

11 ‘‘(A) IN GENERAL.—Except as provided in

12 subparagraph (B), the amount of funds a State

13 library administrative agency shall reserve

14 under paragraph (1) shall be equal to the sum

15 of—

16 ‘‘(i) $1.50 for every preschooler (birth

17 through age 5) in the State from a family

18 living below the income official poverty line

19 (as defined by the Office of Management

20 and Budget, and revised annually in ac21 cordance with section 673(2) of the Commu22 nity Services Block Grant Act (42 U.S.C.

23 9902(2)) applicable to a family of the size

24 involved); and
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1 ‘‘(ii) $1.00 for every school-age child

2 (ages 6 through 17) in the State from such

3 a family.

4 ‘‘(B) MAXIMUM.—The maximum amount

5 that a State library administrative agency may

6 reserve under paragraph (1) for any fiscal year

7 shall not exceed 15 percent of the total amount

8 such agency receives under this subchapter for

9 such year.

10 ‘‘(b) WITHIN STATE DISTRIBUTION.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), each public library in a State shall receive

13 under this section for a fiscal year an amount that

14 bears the same relation to the amount the State li15 brary administrative agency reserves under subsection

16 (a) for such year as the number of children described

17 in subsection (a)(2) served by such public library for

18 the preceding fiscal year bears to the number of such

19 children served by all public libraries in the State for

20 such preceding fiscal year.

21 ‘‘(2) EXCEPTION.—

22 ‘‘(A) IN GENERAL.—If a State library ad23 ministrative agency determines that the amount

24 available under paragraph (1) for a fiscal year

25 for 2 or more public libraries is too small to be
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1 effective, then such agency may aggregate such

2 amounts for such year.

3 ‘‘(B) REQUIREMENTS.—Each State library

4 administrative agency aggregating amounts

5 under subparagraph (A) for a fiscal year—

6 ‘‘(i) shall only aggregate the amount

7 available under paragraph (1) for a public

8 library for a fiscal year if the amount so

9 available for such year is $3,000 or less;

10 and

11 ‘‘(ii) shall use such aggregated amounts

12 to enhance the library services provided to

13 the children described in subsection (a)(2)

14 served by the public libraries for which such

15 agency aggregated such amounts for such

16 year.

17 ‘‘(c) ADJUSTMENTS.—

18 ‘‘(1) APPROPRIATIONS INCREASE.—For any fis19 cal year for which the amount appropriated to carry

20 out this subtitle is greater than the amount appro21 priated to carry out this subtitle for the preceding fis22 cal year by a percentage that equals or exceeds 10

23 percent, the amount each State library administrative

24 agency shall reserve under subsection (a)(2) for the
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1 fiscal year for which the determination is made shall

2 be increased by the same such percentage.

3 ‘‘(2) APPROPRIATIONS DECREASE.—For any fis4 cal year for which the amount appropriated to carry

5 out this subtitle is less than the amount appropriated

6 to carry out this subtitle for the preceding fiscal year

7 by a percentage that equals or exceeds 10 percent, the

8 amount each State library administrative agency

9 shall reserve under subsection (a)(2) for the fiscal

10 year for which the determination is made shall be de11 creased by the same such percentage.

12 ‘‘(d) PLAN.—Each public library desiring assistance

13 under this section shall submit a plan for the expenditure

14 of funds under this section to the State library administra15 tive agency. Such plan shall include a description of how

16 the library will—

17 ‘‘(1) identify the children described in subsection

18 (a)(2);

19 ‘‘(2) collaborate with community representatives

20 to ensure planning and implementation of appro21 priate, helpful library services; and

22 ‘‘(3) establish indicators of success.

23 ‘‘(e) PRIORITIES.—Priorities for the use of funds under

24 this section may include activities for children described in

25 subsection (a)(2) such as—
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1 ‘‘(1) development of after-school homework sup2 port and summer and vacation reading programs;

3 ‘‘(2) development of family literacy programs;

4 ‘‘(3) extension of branch hours to provide space

5 and resources for homework;

6 ‘‘(4) development of coalitions and training pro7 grams involving libraries and other service providers

8 in the State;

9 ‘‘(5) development of technological resources;

10 ‘‘(6) hiring specialized outreach staff; and

11 ‘‘(7) development of peer tutoring programs.

12 ‘‘CHAPTER 3—ADMINISTRATIVE

13 PROVISIONS

14 ‘‘Subchapter A—State Requirements

15 ‘‘SEC. 251. STATE EVALUATION.

16 ‘‘(a) IN GENERAL.—Each State receiving a grant

17 under this subtitle shall annually evaluate, in accordance

18 with subsections (b) and (c), the activities assisted under

19 subchapters A and B of chapter 2.

20 ‘‘(b) SUBCHAPTER A ACTIVITIES.—Each evaluation of

21 activities assisted under subchapter A of chapter 2 shall in22 clude a description of how effective such activities are in

23 ensuring that—

24 ‘‘(1) every American will have affordable access

25 to information resources through electronic networks;
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1 ‘‘(2) every public library will be connected to na2 tional and international electronic networks;

3 ‘‘(3) every State library agency will promote

4 planning and provide support for full library partici5 pation in electronic networks;

6 ‘‘(4) every public librarian will possess the

7 knowledge and skills needed to help people obtain in8 formation through electronic sources; and

9 ‘‘(5) every public library will be equipped with

10 the technology needed to help people obtain informa11 tion in an effective and timely manner.

12 ‘‘(c) SUBCHAPTER B ACTIVITIES.—

13 ‘‘(1) IN GENERAL.—Each evaluation of activities

14 assisted under subchapter B of chapter 2 shall in15 clude—

16 ‘‘(A) with respect to activities to increase

17 literacy and lifelong learning—

18 ‘‘(i) an analysis of the current situa19 tion in the State;

20 ‘‘(ii) how such activities will meet the

21 needs of the current situation in the State

22 and the target groups to be served; and

23 ‘‘(iii) a report of the effect of such ac24 tivities in relation to the objectives of such

25 activities;
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1 ‘‘(B) with respect to activities to serve peo2 ple in rural and urban areas—

3 ‘‘(i) procedures used to identify library

4 users within a community;

5 ‘‘(ii) a description of needs and target

6 groups to be served;

7 ‘‘(iii) an analysis of the levels of suc8 cess to be targeted;

9 ‘‘(iv) a report of the effect of such ac10 tivities in relation to the objectives of such

11 activities; and

12 ‘‘(v) a description of the background of

13 the current level of library service to people

14 in rural and urban areas, and how such ac15 tivities will extend, improve, and further

16 provide library resources to such people;

17 ‘‘(C) with respect to activities to support the

18 provision of special services—

19 ‘‘(i) an analysis of the current situa20 tion in the State;

21 ‘‘(ii) how such activities will meet the

22 needs of the current situation in the State;

23 and
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1 ‘‘(iii) a report of the effect of such ac2 tivities in relation to the objectives of such

3 activities; and

4 ‘‘(D) with respect to activities to serve chil5 dren under section 243—

6 ‘‘(i) an analysis of the current local

7 situations;

8 ‘‘(ii) a description of such activities,

9 including objectives and costs of such activi10 ties; and

11 ‘‘(iii) a report of the effect of such ac12 tivities in relation to the objectives of such

13 activities.

14 ‘‘(2) INFORMATION.—Each public library receiv15 ing assistance under section 243 shall submit to the

16 State library administrative agency such information

17 as such agency may require to meet the requirements

18 of paragraph (1)(D).

19 ‘‘SEC. 252. STATE ADVISORY COUNCILS.

20 ‘‘(a) COUNCILS REQUIRED.—Each State desiring as21 sistance under this subtitle shall establish a State advisory

22 council.

23 ‘‘(b) COMPOSITION.—Each State advisory council shall

24 be broadly representative of the library entities in the State,

25 including public, school, academic, special, and institu-
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1 tional libraries, and libraries serving individuals with dis2 abilities.

3 ‘‘(c) DUTIES.—Each State advisory council shall—

4 ‘‘(1) consult with the State library administra5 tive agency regarding the development of the State

6 plan;

7 ‘‘(2) advise the State library administrative

8 agency on the development of, and policy matters

9 arising in the administration of, the State plan, in10 cluding mechanisms for evaluation;

11 ‘‘(3) assist the State library administrative

12 agency in—

13 ‘‘(A) the dissemination of information re14 garding activities assisted under this subtitle;

15 and

16 ‘‘(B) the evaluation of activities assisted

17 under this subtitle; and

18 ‘‘(4) establish bylaws to carry out such council’s

19 duties under this subsection.

20 ‘‘Subchapter B—Federal Requirements

21 ‘‘SEC. 261. SERVICES FOR INDIAN TRIBES.

22 ‘‘(a) GRANTS AUTHORIZED.—From amounts reserved

23 under section 221(a)(1) for any fiscal year the Director

24 shall award grants to organizations primarily serving and

25 representing Indian tribes to enable such organizations to
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1 carry out the authorized activities described in subsection

2 (b).

3 ‘‘(b) AUTHORIZED ACTIVITIES.—Grant funds awarded

4 under this section may be used for—

5 ‘‘(1) inservice or preservice training of Indians

6 as library personnel;

7 ‘‘(2) the purchase of library materials;

8 ‘‘(3) the conduct of special library programs for

9 Indians;

10 ‘‘(4) salaries of library personnel;

11 ‘‘(5) transportation to enable Indians to have ac12 cess to library services;

13 ‘‘(6) dissemination of information about library

14 services;

15 ‘‘(7) assessment of tribal library needs; and

16 ‘‘(8) contracts to provide public library services

17 to Indians living on or near reservations or to accom18 plish any activities described in paragraphs (1)

19 through (7).

20 ‘‘(c) PROHIBITION.—No funds shall be awarded pursu21 ant to this section unless such funds will be administered

22 by a librarian.

23 ‘‘(d) DUPLICATION.—In awarding grants under this

24 section, the Director shall take such actions as may be nec25 essary to prevent the grant funds provided under this sec-
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1 tion from being received by any 2 or more entities to serve

2 the same population.

3 ‘‘(e) MAINTENANCE OF EFFORT.—Each organization

4 that receives a grant under this section and supports a pub5 lic library system shall continue to expend from Federal,

6 State, and local sources an amount not less than the

7 amount expended by such organization from such sources

8 for public library services during the second fiscal year pre9 ceding the fiscal year for which the determination is made.

10 ‘‘(f) CONSTRUCTION.—Nothing in this section shall be

11 construed to prohibit the dissemination of restricted collec12 tions of tribal cultural materials with funds made available

13 under this section.

14 ‘‘(g) APPLICATION.—

15 ‘‘(1) IN GENERAL.—Any organization which de16 sires to receive a grant under this section shall submit

17 an application to the Director that—

18 ‘‘(A) describes the activities and services for

19 which assistance is sought; and

20 ‘‘(B) contains such information as the Di21 rector may require by regulation.

22 ‘‘(2) CRITERIA.—The Director shall issue criteria

23 for the approval of applications under this section,

24 but such criteria shall not include—

25 ‘‘(A) an allotment formula; or
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1 ‘‘(B) a matching of funds requirement.

2 ‘‘SEC. 262. NATIONAL LEADERSHIP PROGRAM.

3 ‘‘(a) IN GENERAL.—From the amounts reserved under

4 section 221(a)(2) for any fiscal year the Director shall es5 tablish and carry out a program of national leadership and

6 evaluation activities to enhance the quality of library serv7 ices nationwide. Such activities may include—

8 ‘‘(1) education and training of persons in li9 brary and information science, particularly in areas

10 of new technology and other critical needs, including

11 graduate fellowships, traineeships, institutes, or other

12 programs;

13 ‘‘(2) research and demonstration projects related

14 to the improvement of libraries, education in library

15 and information science, enhancement of library serv16 ices through effective and efficient use of new tech17 nologies, and dissemination of information derived

18 from such projects; and

19 ‘‘(3) preservation or digitization of library mate20 rials and resources, giving priority to projects empha21 sizing coordination, avoidance of duplication, and ac22 cess by researchers beyond the institution or library

23 entity undertaking the project.

24 ‘‘(b) GRANTS OR CONTRACTS.—
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1 ‘‘(1) IN GENERAL.—The Director may carry out

2 the activities described in subsection (a) by awarding

3 grants to, or entering into contracts with, library en4 tities, agencies, or institutions of higher education.

5 ‘‘(2) COMPETITIVE BASIS.—Grants and contracts

6 described in paragraph (1) shall be awarded on a

7 competitive basis.

8 ‘‘(c) SPECIAL RULE.—The Director, with policy advice

9 from the Museum Board shall make every effort to ensure

10 that activities assisted under this section are administered

11 by appropriate library and information services profes12 sionals or experts and science professionals or experts.

13 ‘‘SEC. 263. STATE AND LOCAL INITIATIVES.

14 ‘‘Nothing in this subtitle shall be construed to interfere

15 with State and local initiatives and responsibility in the

16 conduct of library services. The administration of libraries,

17 the selection of personnel and library books and materials,

18 and insofar as consistent with the purposes of this subtitle,

19 the determination of the best uses of the funds provided

20 under this subtitle, shall be reserved to the States and their

21 local subdivisions.

22 ‘‘Subtitle C—Museum Services

23 ‘‘SEC. 271. PURPOSE.

24 ‘‘It is the purpose of this subtitle—
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1 ‘‘(1) to encourage and assist museums in their

2 educational role, in conjunction with formal systems

3 of elementary, secondary, and postsecondary edu4 cation and with programs of nonformal education for

5 all age groups;

6 ‘‘(2) to assist museums in modernizing their

7 methods and facilities so that the museums may be

8 better able to conserve the cultural, historic, and sci9 entific heritage of the United States; and

10 ‘‘(3) to ease the financial burden borne by muse11 ums as a result of their increasing use by the public.

12 ‘‘SEC. 272. DEFINITIONS.

13 ‘‘As used in this subtitle, the term ‘museum’ means a

14 public or private nonprofit agency or institution organized

15 on a permanent basis for essentially educational or aes16 thetic purposes, that utilizes a professional staff, owns or

17 utilizes tangible objects, cares for the tangible objects, and

18 exhibits the tangible objects to the public on a regular basis.

19 ‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

20 ‘‘(a) GRANTS.—The Director, subject to the policy di21 rection of the Museum Board, may make grants to museums

22 to pay for the Federal share of the cost of increasing and

23 improving museum services, through such activities as—
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1 ‘‘(1) programs to enable museums to construct or

2 install displays, interpretations, and exhibitions in

3 order to improve museum services to the public;

4 ‘‘(2) assisting museums in developing and main5 taining professionally trained or otherwise experi6 enced staff to meet their needs;

7 ‘‘(3) assisting museums in meeting their admin8 istrative costs in preserving and maintaining their

9 collections, exhibiting the collections to the public, and

10 providing educational programs to the public through

11 the use of the collections;

12 ‘‘(4) assisting museums in cooperating with each

13 other in developing traveling exhibitions, meeting

14 transportation costs, and identifying and locating col15 lections available for loan;

16 ‘‘(5) assisting museums in conservation of their

17 collections; and

18 ‘‘(6) developing and carrying out specialized

19 programs for specific segments of the public, such as

20 programs for urban neighborhoods, rural areas, In21 dian reservations, and penal and other State institu22 tions.

23 ‘‘(b) CONTRACTS AND COOPERATIVE AGREEMENTS.—

24 ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM SERV25 ICES.—The Director, subject to the policy direction of
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1 the Museum Board, is authorized to enter into con2 tracts and cooperative agreements with appropriate

3 entities to pay for the Federal share of enabling the

4 entities to undertake projects designed to strengthen

5 museum services, except that any contracts or cooper6 ative agreements entered into pursuant to this sub7 section shall be effective only to such extent or in such

8 amounts as are provided in appropriations Acts.

9 ‘‘(2) LIMITATION ON AMOUNT.—The aggregate

10 amount of financial assistance made available under

11 this subsection for a fiscal year shall not exceed 15

12 percent of the amount appropriated under this sub13 title for such fiscal year.

14 ‘‘(3) OPERATIONAL EXPENSES.—No financial as15 sistance may be provided under this subsection to pay

16 for operational expenses.

17 ‘‘(c) FEDERAL SHARE.—

18 ‘‘(1) 50 PERCENT.—Except as provided in para19 graph (2), the Federal share described in subsections

20 (a) and (b) shall be not more than 50 percent.

21 ‘‘(2) 100 PERCENT.—The Director may use not

22 more than 20 percent of the funds made available

23 under this section for a fiscal year to make grants

24 under subsection (a), or enter into contracts or agree-
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1 ments under subsection (b), for which the Federal

2 share may be 100 percent.

3 ‘‘(d) REVIEW AND EVALUATION.—The Director shall

4 establish procedures for reviewing and evaluating grants,

5 contracts, and cooperative agreements made or entered into

6 under this section. Procedures for reviewing grant applica7 tions or contracts and cooperative agreements for financial

8 assistance under this section shall not be subject to any re9 view outside of the Institute.

10 ‘‘SEC. 274. ASSESSMENTS.

11 ‘‘(a) IN GENERAL.—The Director, subject to the policy

12 direction of the Museum Board and in consultation with

13 appropriate representatives of museums and other types of

14 community institutions, agencies, and organizations, shall

15 undertake an assessment of the collaborative possibilities

16 museums can engage in to serve the public more broadly

17 and effectively.

18 ‘‘(b) CONTENTS.—The assessment shall include—

19 ‘‘(1) an investigation of opportunities to estab20 lish collaborative programs between museums within

21 a community, including an investigation of the role

22 that larger institutions can play as mentors to small23 er institutions;
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1 ‘‘(2) an investigation of opportunities to estab2 lish collaborative programs between museums and

3 community organizations;

4 ‘‘(3) an investigation of the potential for collabo5 ration between museums on technology issues to reach

6 a broader audience; and

7 ‘‘(4) an investigation of opportunities for muse8 ums to work with each other and with other commu9 nity resources to serve the public better and to coordi10 nate professional and financial development activi11 ties.

12 ‘‘(c) LIMITATION.—This section shall not apply in any

13 fiscal year for which the amount appropriated under sec14 tion 277(a) is less than $28,700,000.

15 ‘‘SEC. 275. AWARD.

16 ‘‘The Director, with the advice of the Museum Board,

17 may annually award a National Award for Museum Serv18 ice to outstanding museums that have made significant con19 tributions in service to their communities.

20 ‘‘SEC. 276. NATIONAL MUSEUM SERVICES BOARD.

21 ‘‘(a) ESTABLISHMENT.—There is established in the In22 stitute a National Museum Services Board.

23 ‘‘(b) COMPOSITION AND QUALIFICATIONS.—

24 ‘‘(1) COMPOSITION.—The Museum Board shall

25 consist of the Director and 14 members appointed by
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1 the President, by and with the advice and consent of

2 the Senate.

3 ‘‘(2) QUALIFICATIONS.—The appointive members

4 of the Museum Board shall be selected from among

5 citizens of the United States—

6 ‘‘(A) who are members of the general public;

7 ‘‘(B) who are or have been affiliated with—

8 ‘‘(i) resources that, collectively, are

9 broadly representative of the curatorial,

10 conservation, educational, and cultural re11 sources of the United States; and

12 ‘‘(ii) museums that, collectively, are

13 broadly representative of various types of

14 museums, including museums relating to

15 science, history, technology, and art, zoos,

16 and botanical gardens; and

17 ‘‘(C) who are recognized for their broad

18 knowledge, expertise, or experience in museums

19 or commitment to museums.

20 ‘‘(3) GEOGRAPHIC AND OTHER REPRESENTA21 TION.—Members of the Museum Board shall be ap22 pointed to reflect persons from various geographic re23 gions of the United States. The Museum Board may

24 not include, at any time, more than 3 members from

25 a single State. In making such appointments, the
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1 President shall give due regard to equitable represen2 tation of women, minorities, and persons with dis3 abilities who are involved with museums.

4 ‘‘(c) TERMS.—

5 ‘‘(1) IN GENERAL.—Each appointive member of

6 the Museum Board shall serve for a term of 5 years,

7 except that—

8 ‘‘(A) of the members first appointed, 3 shall

9 serve for terms of 5 years, 3 shall serve for terms

10 of 4 years, 3 shall serve for terms of 3 years, 3

11 shall serve for terms of 2 years, and 2 shall serve

12 for terms of 1 year, as designated by the Presi13 dent at the time of nomination for appointment;

14 and

15 ‘‘(B) any member appointed to fill a va16 cancy shall serve for the remainder of the term

17 for which the predecessor of the member was ap18 pointed.

19 ‘‘(2) REAPPOINTMENT.—No member of the Mu20 seum Board who has been a member for more than

21 7 consecutive years shall be eligible for reappoint22 ment.

23 ‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OF24 FICE.—Notwithstanding any other provision of this

25 subsection, a member shall serve after the expiration
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1 of the term of the member until the successor to the

2 member takes office.

3 ‘‘(d) DUTIES AND POWERS.—The Museum Board shall

4 have the responsibility for general policies with respect to

5 the duties, powers, and authorities vested in the Institute

6 relating to museum services, including general policies with

7 respect to—

8 ‘‘(1) financial assistance awarded under this

9 title for museum services;

10 ‘‘(2) projects described in section 204(c)(2); and

11 ‘‘(3) measures to ensure that the policies and ac12 tivities of the Institute for Museum and Library Serv13 ices are coordinated with other activities of the Fed14 eral Government.

15 ‘‘(e) CHAIRPERSON.—The President shall designate 1

16 of the appointive members of the Museum Board as Chair17 person of the Museum Board.

18 ‘‘(f) MEETINGS.—

19 ‘‘(1) IN GENERAL.—The Museum Board shall

20 meet—

21 ‘‘(A) not less than 3 times each year, in22 cluding—

23 ‘‘(i) not less than 2 times each year

24 separately; and
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1 ‘‘(ii) not less than 1 time each year in

2 a joint meeting with the Commission, con3 vened for purposes of making general poli4 cies with respect to financial assistance for

5 projects described in section 204(c)(2); and

6 ‘‘(B) at the call of the Director.

7 ‘‘(2) VOTE.—All decisions by the Museum Board

8 with respect to the exercise of the duties and powers

9 of the Museum Board shall be made by a majority

10 vote of the members of the Museum Board who are

11 present. All decisions by the Commission and the Mu12 seum Board with respect to the policies described in

paragraph (1)(A)(ii) shall be made by a 2 13 ⁄3 majority

14 vote of the total number of the members of the Com15 mission and the Museum Board who are present.

16 ‘‘(g) QUORUM.—A majority of the members of the Mu17 seum Board shall constitute a quorum for the conduct of

18 business at official meetings of the Museum Board, but a

19 lesser number of members may hold hearings. A majority

20 of the members of the Commission and a majority of the

21 members of the Museum Board shall constitute a quorum

22 for the conduct of business at official joint meetings of the

23 Commission and the Museum Board.

24 ‘‘(h) COMPENSATION AND TRAVEL EXPENSES.—
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1 ‘‘(1) COMPENSATION.—Each member of the Mu2 seum Board who is not an officer or employee of the

3 Federal Government shall be compensated at a rate to

4 be fixed by the President, but not to exceed the daily

5 equivalent of the maximum rate authorized for a po6 sition above grade GS–15 of the General Schedule

7 under section 5108 of title 5, United States Code, for

8 each day (including travel time) during which such

9 member is engaged in the performance of the duties

10 of the Museum Board. All members of the Museum

11 Board who are officers or employees of the Federal

12 Government shall serve without compensation in ad13 dition to compensation received for their services as

14 officers or employees of the Federal Government.

15 ‘‘(2) TRAVEL EXPENSES.—The members of the

16 Museum Board shall be allowed travel expenses, in17 cluding per diem in lieu of subsistence, in the same

18 amounts and to the same extent, as authorized under

19 section 5703 of title 5, United States Code, for per20 sons employed intermittently in Federal Government

21 service.

22 ‘‘(i) COORDINATION.—The Museum Board, with the

23 advice of the Director, shall take steps to ensure that the

24 policies and activities of the Institute are coordinated with

25 other activities of the Federal Government.
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1 ‘‘SEC. 277. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘(a) GRANTS.—For the purpose of carrying out this

3 subtitle, there are authorized to be appropriated to the Di4 rector $28,700,000 for the fiscal year 1996, and such sums

5 as may be necessary for each of the fiscal years 1997

6 through 2000.

7 ‘‘(b) ADMINISTRATION.—Not more than 10 percent of

8 the funds appropriated under this section for a fiscal year

9 may be used to pay for the administrative costs of carrying

10 out this subtitle.

11 ‘‘(c) JOINT PROJECTS.—Not less than 5 percent and

12 not more than 7 percent of the funds appropriated under

13 this section for a fiscal year may be made available for

14 projects described in section 204(c)(2) for the fiscal year.

15 ‘‘(d) SUMS REMAINING AVAILABLE.—Sums appro16 priated pursuant to subsection (a) for any fiscal year shall

17 remain available for obligation until expended.’’.

18 SEC. 302. NATIONAL COMMISSION ON LIBRARIES AND IN19 FORMATION SCIENCE.

20 (a) FUNCTIONS.—Section 5 of the National Commis21 sion on Libraries and Information Science Act (20 U.S.C.

22 1504) is amended—

23 (1) by redesignating subsections (b) through (d)

24 as subsections (d) through (f), respectively; and

25 (2) by inserting after subsection (a) the follow26 ing:
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1 ‘‘(b) The Commission shall have the responsibility to

2 advise the Director of the Institute of Museum and Library

3 Services on general policies with respect to the duties and

4 powers vested in the Institute of Museum and Library Serv5 ices relating to library services, including—

6 ‘‘(1) general policies with respect to—

7 ‘‘(A) financial assistance awarded under the

8 Museum and Library Services Act for library

9 services; and

10 ‘‘(B) projects described in section 204(c)(2)

11 of such Act; and

12 ‘‘(2) measures to ensure that the policies and ac13 tivities of the Institute of Museum and Library Serv14 ices are coordinated with other activities of the Fed15 eral Government.

16 ‘‘(c)(1) The Commission shall meet not less than 1 time

17 each year in a joint meeting with the National Museum

18 Services Board, convened for purposes of providing advice

19 on general policy with respect to financial assistance for

20 projects described in section 204(c)(2) of such Act.

21 ‘‘(2) All decisions by the Commission and the National

22 Museum Services Board with respect to the advice on gen23 eral policy described in paragraph (1) shall be made by

a 2 24 ⁄3 majority vote of the total number of the members of
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1 the Commission and the National Museum Services Board

2 who are present.

3 ‘‘(3) A majority of the members of the Commission and

4 a majority of the members of the National Museum Services

5 Board shall constitute a quorum for the conduct of business

6 at official joint meetings of the Commission and the Na7 tional Museum Services Board.’’.

8 (b) MEMBERSHIP.—Section 6 of the National Commis9 sion on Libraries and Information Science Act (20 U.S.C.

10 1505) is amended—

11 (1) in subsection (a)—

12 (A) in the first sentence, by striking ‘‘Li13 brarian of Congress’’ and inserting ‘‘Librarian

14 of Congress, the Director of the Institute of Mu15 seum and Library Services (who shall serve as

16 an ex officio, nonvoting member),’’;

17 (B) in the second sentence—

18 (i) by striking ‘‘special competence or

19 interest in’’ and inserting ‘‘special com20 petence in or knowledge of; and

21 (ii) by inserting before the period the

22 following: ‘‘and at least one other of whom

23 shall be knowledgeable with respect to the li24 brary and information service and science

25 needs of the elderly’’;
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1 (C) in the third sentence, by inserting ‘‘ap2 pointive’’ before ‘‘members’’; and

3 (D) in the last sentence, by striking ‘‘term

4 and at least’’ and all that follows and inserting

5 ‘‘term.’’; and

6 (2) in subsection (b), by striking ‘‘the rate speci7 fied’’ and all that follows through ‘‘and while’’ and

8 inserting ‘‘the daily equivalent of the maximum rate

9 authorized for a position above grade GS–15 of the

10 General Schedule under section 5108 of title 5, United

11 States Code, for each day (including traveltime) dur12 ing which the members are engaged in the business of

13 the Commission. While’’.

14 SEC. 303. TRANSFER OF FUNCTIONS FROM INSTITUTE OF

15 MUSEUM SERVICES.

16 (a) DEFINITIONS.—For purposes of this section, unless

17 otherwise provided or indicated by the context—

18 (1) the term ‘‘Federal agency’’ has the meaning

19 given to the term ‘‘agency’’ by section 551(1) of title

20 5, United States Code;

21 (2) the term ‘‘function’’ means any duty, obliga22 tion, power, authority, responsibility, right, privilege,

23 activity, or program; and
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1 (3) the term ‘‘office’’ includes any office, admin2 istration, agency, institute, unit, organizational en3 tity, or component thereof.

4 (b) TRANSFER OF FUNCTIONS.—There are transferred

5 to the Institute of Museum and Library Services established

6 under section 203 of the Museum and Library Services Act

7 all functions that the Director of the Institute of Museum

8 Services exercised before the date of enactment of this section

9 (including all related functions of any officer or employee

10 of the Institute of Museum Services).

11 (c) DETERMINATIONS OF CERTAIN FUNCTIONS BY THE

12 OFFICE OF MANAGEMENT AND BUDGET.—If necessary, the

13 Office of Management and Budget shall make any deter14 mination of the functions that are transferred under sub15 section (b).

16 (d) DELEGATION AND ASSIGNMENT.—Except where

17 otherwise expressly prohibited by law or otherwise provided

18 by this section, the Director of the Institute of Museum and

19 Library Services may delegate any of the functions trans20 ferred to the Director of the Institute of Museum and Li21 brary Services by this section and any function transferred

22 or granted to such Director of the Institute of Museum and

23 Library Services after the effective date of this section to

24 such officers and employees of the Institute of Museum and

25 Library Services as the Director of the Institute of Museum
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1 and Library Services may designate, and may authorize

2 successive redelegations of such functions as may be nec3 essary or appropriate. No delegation of functions by the Di4 rector of the Institute of Museum and Library Services

5 under this section or under any other provision of this sec6 tion shall relieve such Director of the Institute of Museum

7 and Library Services of responsibility for the administra8 tion of such functions.

9 (e) REORGANIZATION.—The Director of the Institute of

10 Museum and Library Services may allocate or reallocate

11 any function transferred under subsection (b) among the

12 officers of the Institute of Museum and Library Services,

13 and may establish, consolidate, alter, or discontinue such

14 organizational entities in the Institute of Museum and Li15 brary Services as may be necessary or appropriate.

16 (f) RULES.—The Director of the Institute of Museum

17 and Library Services may prescribe, in accordance with

18 chapters 5 and 6 of title 5, United States Code, such rules

19 and regulations as the Director of the Institute of Museum

20 and Library Services determines to be necessary or appro21 priate to administer and manage the functions of the Insti22 tute of Museum and Library Services.

23 (g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS

24 AND PERSONNEL.—Except as otherwise provided in this

25 section, the personnel employed in connection with, and the
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1 assets, liabilities, contracts, property, records, and unex2 pended balances of appropriations, authorizations, alloca3 tions, and other funds employed, used, held, arising from,

4 available to, or to be made available in connection with

5 the functions transferred by this section, subject to section

6 1531 of title 31, United States Code, shall be transferred

7 to the Institute of Museum and Library Services. Unex8 pended funds transferred pursuant to this subsection shall

9 be used only for the purposes for which the funds were origi10 nally authorized and appropriated.

11 (h) INCIDENTAL TRANSFERS.—The Director of the Of12 fice of Management and Budget, at such time or times as

13 the Director shall provide, may make such determinations

14 as may be necessary with regard to the functions transferred

15 by this section, and make such additional incidental dis16 positions of personnel, assets, liabilities, grants, contracts,

17 property, records, and unexpended balances of appropria18 tions, authorizations, allocations, and other funds held,

19 used, arising from, available to, or to be made available

20 in connection with such functions, as may be necessary to

21 carry out this section. The Director of the Office of Manage22 ment and Budget shall provide for the termination of the

23 affairs of all entities terminated by this section and for such

24 further measures and dispositions as may be necessary to

25 effectuate the purposes of this section.
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1 (i) EFFECT ON PERSONNEL.—

2 (1) IN GENERAL.—Except as otherwise provided

3 by this section, the transfer pursuant to this section

4 of full-time personnel (except special Government em5 ployees) and part-time personnel holding permanent

6 positions shall not cause any such employee to be sep7 arated or reduced in grade or compensation for 1

8 year after the date of transfer of such employee under

9 this section.

10 (2) EXECUTIVE SCHEDULE POSITIONS.—Except

11 as otherwise provided in this section, any person who,

12 on the day preceding the effective date of this section,

13 held a position compensated in accordance with the

14 Executive Schedule prescribed in chapter 53 of title 5,

15 United States Code, and who, without a break in

16 service, is appointed in the Institute of Museum and

17 Library Services to a position having duties com18 parable to the duties performed immediately preced19 ing such appointment shall continue to be com20 pensated in such new position at not less than the

21 rate provided for such previous position, for the dura22 tion of the service of such person in such new posi23 tion.

24 (j) SAVINGS PROVISIONS.—
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1 (1) CONTINUING EFFECT OF LEGAL DOCU2 MENTS.—All orders, determinations, rules, regula3 tions, permits, agreements, grants, contracts, certifi4 cates, licenses, registrations, privileges, and other ad5 ministrative actions—

6 (A) that have been issued, made, granted, or

7 allowed to become effective by the President, any

8 Federal agency or official of a Federal agency, or

9 by a court of competent jurisdiction, in the per10 formance of functions that are transferred under

11 this section; and

12 (B) that were in effect before the effective

13 date of this section, or were final before the effec14 tive date of this section and are to become effec15 tive on or after the effective date of this section;

16 shall continue in effect according to their terms until

17 modified, terminated, superseded, set aside, or revoked

18 in accordance with law by the President, the Director

19 of the Institute of Museum and Library Services or

20 other authorized official, a court of competent juris21 diction, or by operation of law.

22 (2) PROCEEDINGS NOT AFFECTED.—This section

23 shall not affect any proceedings, including notices of

24 proposed rulemaking, or any application for any li25 cense, permit, certificate, or financial assistance
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1 pending before the Institute of Museum Services on

2 the effective date of this section, with respect to func3 tions transferred by this section. Such proceedings

4 and applications shall be continued. Orders shall be

5 issued in such proceedings, appeals shall be taken

6 from the orders, and payments shall be made pursu7 ant to the orders, as if this section had not been en8 acted, and orders issued in any such proceedings shall

9 continue in effect until modified, terminated, super10 seded, or revoked by a duly authorized official, by a

11 court of competent jurisdiction, or by operation of

12 law. Nothing in this paragraph shall be construed to

13 prohibit the discontinuance or modification of any

14 such proceeding under the same terms and conditions

15 and to the same extent that such proceeding could

16 have been discontinued or modified if this section had

17 not been enacted.

18 (3) SUITS NOT AFFECTED.—This section shall

19 not affect suits commenced before the effective date of

20 this section, and in all such suits, proceedings shall

21 be had, appeals taken, and judgments rendered in the

22 same manner and with the same effect as if this sec23 tion had not been enacted.

24 (4) NONABATEMENT OF ACTIONS.—No suit, ac25 tion, or other proceeding commenced by or against the
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1 Institute of Museum Services, or by or against any

2 individual in the official capacity of such individual

3 as an officer of the Institute of Museum Services, shall

4 abate by reason of the enactment of this section.

5 (5) ADMINISTRATIVE ACTIONS RELATING TO PRO6 MULGATION OF REGULATIONS.—Any administrative

7 action relating to the preparation or promulgation of

8 a regulation by the Institute of Museum Services re9 lating to a function transferred under this section

10 may be continued by the Institute of Museum and Li11 brary Services with the same effect as if this section

12 had not been enacted.

13 (k) TRANSITION.—The Director of the Institute of Mu14 seum and Library Services may utilize—

15 (1) the services of such officers, employees, and

16 other personnel of the Institute of Museum Services

17 with respect to functions transferred to the Institute

18 of Museum and Library Services by this section; and

19 (2) funds appropriated to such functions for such

20 period of time as may reasonably be needed to facili21 tate the orderly implementation of this section.

22 (l) REFERENCES.—A reference in any other Federal

23 law, Executive order, rule, regulation, or delegation of au24 thority, or any document of or relating to—
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1 (1) the Director of the Institute of Museum Serv2 ices with regard to functions transferred under sub3 section (b), shall be deemed to refer to the Director of

4 the Institute of Museum and Library Services; and

5 (2) the Institute of Museum Services with regard

6 to functions transferred under subsection (b), shall be

7 deemed to refer to the Institute of Museum and Li8 brary Services.

9 (m) ADDITIONAL CONFORMING AMENDMENTS.—

10 (1) RECOMMENDED LEGISLATION.—After con11 sultation with the appropriate committees of Congress

12 and the Director of the Office of Management and

13 Budget, the Director of the Institute of Museum and

14 Library Services shall prepare and submit to the ap15 propriate committees of Congress recommended legis16 lation containing technical and conforming amend17 ments to reflect the changes made by this section.

18 (2) SUBMISSION TO CONGRESS.—Not later than

19 6 months after the effective date of this section, the

20 Director of the Institute of Museum and Library

21 Services shall submit to the appropriate committees of

22 Congress the recommended legislation referred to

23 under paragraph (1).
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1 SEC. 304. SERVICE OF INDIVIDUALS SERVING ON DATE OF

2 ENACTMENT.

3 Notwithstanding section 204 of the Museum and Li4 brary Services Act, the individual who was appointed to

5 the position of Director of the Institute of Museum Services

6 under section 205 of the Museum Services Act (as such sec7 tion was in effect on the day before the date of enactment

8 of this Act) and who is serving in such position on the day

9 before the date of enactment of this Act shall serve as the

10 first Director of the Institute of Museum and Library Serv11 ices under section 204 of the Museum and Library Services

12 Act (as added by section 301 of this title), and shall serve

13 at the pleasure of the President.

14 SEC. 305. CONSIDERATION.

15 Consistent with title 5, United States Code, in ap16 pointing employees of the Office of Library Services, the Di17 rector of the Institute of Museum and Library Services shall

18 give strong consideration to individuals with experience in

19 administering State-based and national library and infor20 mation services programs.

21 SEC. 306. REPEALS AND TECHNICAL AND CONFORMING

22 AMENDMENTS.

23 (a) REPEALS.—

24 (1) LIBRARY SERVICES AND CONSTRUCTION

25 ACT.—The Library Services and Construction Act (20

26 U.S.C. 351 et seq.) is repealed.
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1 (2) HIGHER EDUCATION ACT OF 1965.—Title II

2 of the Higher Education Act of 1965 (20 U.S.C. 1021

3 et seq.) is repealed.

4 (b) REFERENCES TO LIBRARY SERVICES AND CON5 STRUCTION ACT.—

6 (1) OMNIBUS EDUCATION RECONCILIATION ACT

7 OF 1981.—Section 528 of the Omnibus Education Rec8 onciliation Act of 1981 (20 U.S.C. 3489) is amend9 ed—

10 (A) by striking paragraph (12); and

11 (B) by redesignating paragraphs (13)

12 through (15) as paragraphs (12) through (14),

13 respectively.

14 (2) ELEMENTARY AND SECONDARY EDUCATION

15 ACT OF 1965.—Section 3113(10) of the Elementary

16 and Secondary Education Act of 1965 (20 U.S.C.

17 6813(10)) is amended by striking ‘‘section 3 of the Li18 brary Services and Construction Act’’ and inserting

19 ‘‘section 213(7) of the Library Services and Tech20 nology Act’’.

21 (3) COMMUNITY IMPROVEMENT VOLUNTEER ACT

22 OF 1994.—Section 7305 of the Community Improve23 ment Volunteer Act of 1994 (40 U.S.C. 276d–3) is

24 amended—

25 (A) by striking paragraph (1); and
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1 (B) by redesignating paragraphs (2)

2 through (6) as paragraphs (1) through (5), re3 spectively.

4 (4) APPALACHIAN REGIONAL DEVELOPMENT ACT

5 OF 1965.—Section 214(c) of the Appalachian Regional

6 Development Act of 1965 (40 U.S.C. App. 214(c)) is

7 amended by striking ‘‘Library Services and Construc8 tion Act;’’.

9 (5) DEMONSTRATION CITIES AND METROPOLITAN

10 DEVELOPMENT ACT OF 1966.—Section 208(2) of the

11 Demonstration Cities and Metropolitan Development

12 Act of 1966 (42 U.S.C. 3338(2)) is amended by strik13 ing ‘‘title II of the Library Services and Construction

14 Act;’’.

15 (6) PUBLIC LAW 87–688.—Subsection (c) of the

16 first section of the Act entitled ‘‘An Act to extend the

17 application of certain laws to American Samoa’’, ap18 proved September 25, 1962 (48 U.S.C. 1666(c)) is

19 amended by striking ‘‘the Library Services Act (70

20 Stat. 293; 20 U.S.C. 351 et seq.),’’.

21 (c) REFERENCES TO INSTITUTE OF MUSEUM SERV22 ICES.—

23 (1) TITLE 5, UNITED STATES CODE.—Section

24 5315 of title 5, United States Code, is amended by

25 striking the following:
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1 ‘‘Director of the Institute of Museum Services.’’

2 and inserting the following:

3 ‘‘Director of the Institute of Museum and Li4 brary Services.’’.

5 (2) DEPARTMENT OF EDUCATION ORGANIZATION

6 ACT.—Section 301 of the Department of Education

7 Organization Act (20 U.S.C. 3441) is amended—

8 (A) in subsection (a)—

9 (i) by striking paragraph (5); and

10 (ii) by redesignating paragraphs (6)

11 and (7) as paragraphs (5) and (6), respec12 tively; and

13 (B) in subsection (b)—

14 (i) by striking paragraph (4); and

15 (ii) by redesignating paragraphs (5)

16 through (7) as paragraphs (4) through (6),

17 respectively.

18 (3) ELEMENTARY AND SECONDARY EDUCATION

19 ACT OF 1965.—

20 (A) Sections 2101(b), 2205(c)(1)(D),

21 2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and

22 subsections (d)(6) and (e)(2) of section 10401 of

23 the Elementary and Secondary Education Act of

24 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D),

25 6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and 8091
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1 (d)(6) and (e)(2)) are amended by striking ‘‘the

2 Institute of Museum Services’’ and inserting ‘‘the

3 Institute of Museum and Library Services’’.

4 (B) Section 10412(b) of such Act (20 U.S.C.

5 8102(b)) is amended—

6 (i) in paragraph (2), by striking ‘‘the

7 Director of the Institute of Museum Serv8 ices,’’ and inserting ‘‘the Director of the In9 stitute of Museum and Library Services,’’;

10 and

11 (ii) in paragraph (7), by striking ‘‘the

12 Director of the Institute of Museum Serv13 ices,’’ and inserting ‘‘the Director of the In14 stitute of Museum and Library Services,’’.

15 (C) Section 10414(a)(2)(B) of such Act (20

16 U.S.C. 8104(a)(2)(B)) is amended by striking

17 clause (iii) and inserting the following new

18 clause:

19 ‘‘(iii) the Institute of Museum and Li20 brary Services.’’.

21 (d) REFERENCES TO HIGHER EDUCATION ACT OF

22 1965.—

23 (1) HIGHER EDUCATION ACT OF 1965.—Para24 graph (2) of section 356(b) of the Higher Education
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1 Act of 1965 (20 U.S.C. 1069b(b)) is amended by strik2 ing ‘‘II,’’.

3 (2) HIGHER EDUCATION AMENDMENTS OF

4 1986.—Part D of title XIII of the Higher Education

5 Amendments of 1986 (20 U.S.C. 1029 note) is re6 pealed.

7 (e) REFERENCES TO OFFICE OF LIBRARIES AND

8 LEARNING RESOURCES.—

9 (1) EDUCATION AMENDMENTS OF 1974.—Section

10 519 of the Education Amendments of 1974 (20 U.S.C.

11 1221i) is repealed.

12 (2) DEPARTMENT OF EDUCATION ORGANIZATION

13 ACT.—Section 413(b)(1) of the Department of Edu14 cation Organization Act (20 U.S.C. 3473(b)(1)) is

15 amended—

16 (A) by striking subparagraph (H); and

17 (B) by redesignating subparagraphs (I)

18 through (M) as subparagraphs (H) through (L),

19 respectively.

20 SEC. 307. ARTS AND ARTIFACTS.

21 The Arts and Artifacts Indemnity Act (20 U.S.C. 971

22 et seq.) is amended to read as follows:

23 ‘‘SECTION 1. SHORT TITLE.

24 ‘‘This Act may be cited as the ‘Arts and Artifacts In25 demnity Act’.
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1 ‘‘SEC. 2. INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTI2 FACTS.

3 ‘‘The Director of the Institute of Museums and Library

4 Services may enter into agreements to indemnify against

5 loss or damage such items as may be eligible for such in6 demnity agreements under section 3—

7 ‘‘(1) in accordance with the provisions of this

8 Act; and

9 ‘‘(2) on such terms and conditions as the Direc10 tor shall prescribe, by regulation, in order to achieve

11 the objectives of this Act and, consistent with such ob12 jectives, to protect the financial interest of the United

13 States.

14 ‘‘SEC. 3. ELIGIBLE ITEMS.

15 ‘‘(a) TYPES OF ITEMS.—The Director may enter into

16 an indemnity agreement under section 2 with respect to

17 items—

18 ‘‘(1) that are—

19 ‘‘(A) works of art, including tapestries,

20 paintings, sculpture, folk art, and graphics and

21 craft arts;

22 ‘‘(B) manuscripts, rare documents, books, or

23 other printed or published materials;

24 ‘‘(C) other artifacts or objects; or

25 ‘‘(D) photographs, motion pictures, or audio

26 and video tape;
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1 ‘‘(2) that are of educational, cultural, historical,

2 or scientific value; and

3 ‘‘(3) the exhibition of which is certified (where

4 appropriate) by the Secretary of State or the designee

5 of the Secretary of State as being in the national in6 terest.

7 ‘‘(b) ITEMS ON EXHIBITION.—

8 ‘‘(1) SCOPE.—An indemnity agreement made

9 under this Act shall cover eligible items while on exhi10 bition, generally when the items are part of an ex11 change of exhibitions. An item described in subsection

12 (a) that is part of an exhibition that originates either

13 in the United States or outside the United States and

14 that is touring the United States shall be considered

15 to be an eligible item.

16 ‘‘(2) DEFINITION.—For purposes of this sub17 section, the term ‘on exhibition’ includes the period of

18 time beginning on the date the eligible items leave the

19 premises of the lender or place designated by the lend20 er and ending on the date such items are returned to

21 the premises of the lender or place designated by the

22 lender.

23 ‘‘SEC. 4. APPLICATIONS.

24 ‘‘(a) IN GENERAL.—Any person, nonprofit agency, in25 stitution, or government desiring to enter into an indem-
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1 nity agreement for eligible items under this Act shall submit

2 an application to the Director at such time, in such manner

3 and in accordance with such procedures, as the Director

4 shall, by regulation, prescribe.

5 ‘‘(b) CONTENTS.—An application submitted under

6 subsection (a) shall—

7 ‘‘(1) describe each item to be covered by the

8 agreement (including an estimated value of such

9 item);

10 ‘‘(2) show evidence that the item is an item de11 scribed in section 3(a); and

12 ‘‘(3) set forth policies, procedures, techniques,

13 and methods with respect to preparation for, and con14 duct of, exhibition of the item, and any transpor15 tation related to such item.

16 ‘‘(c) APPROVAL.—On receipt of an application under

17 this section, the Director shall review the application as de18 scribed in section 5 and, if the Director agrees with the esti19 mated value described in the application and if such appli20 cation conforms with the requirements of this Act, approve

21 the application and enter into an indemnity agreement

22 with the applicant under section 2. On such approval, the

23 agreement shall constitute a contract between the Director

24 and the applicant pledging the full faith and credit of the

25 United States to pay any amount for which the Director
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1 becomes liable under such agreement. The Director, for such

2 purpose, is authorized to pledge the full faith and credit

3 of the United States.

4 ‘‘SEC. 5. INDEMNITY AGREEMENT.

5 ‘‘(a) REVIEW.—On receipt of an application meeting

6 the requirements of subsections (a) and (b) of section 4, the

7 Director shall review the estimated value of the items for

8 which coverage by an indemnity agreement is sought.

9 ‘‘(b) AGGREGATE AMOUNT OF LOSS OR DAMAGE.—The

10 aggregate amount of loss or damage covered by indemnity

11 agreements made under this Act shall not exceed

12 $3,000,000,000, at any one time.

13 ‘‘(c) INDIVIDUAL AMOUNT OF LOSS OR DAMAGE.—No

14 indemnity agreement for a single exhibition shall cover loss

15 or damage in excess of $300,000,000.

16 ‘‘(d) EXTENT OF COVERAGE.—If the estimated value

17 of the items covered by an indemnity agreement for a single

18 exhibition is—

19 ‘‘(1) $2,000,000 or less, then coverage under this

20 Act shall extend only to loss or damage in excess of

21 the first $15,000 of loss or damage to the items cov22 ered;

23 ‘‘(2) more than $2,000,000 but less than

24 $10,000,000, then coverage under this Act shall extend
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1 only to loss or damage in excess of the first $25,000

2 of loss or damage to the items covered;

3 ‘‘(3) not less than $10,000,000 but less than

4 $125,000,000, then coverage under this Act shall ex5 tend only to loss or damage in excess of the first

6 $50,000 of loss or damage to the items covered;

7 ‘‘(4) not less than $125,000,000 but less than

8 $200,000,000, then coverage under this Act shall ex9 tend only to loss or damage in excess of the first

10 $100,000 of loss or damage to the items covered; or

11 ‘‘(5) $200,000,000 or more, then coverage under

12 this Act shall extend only to loss or damage in excess

13 of the first $200,000 of loss or damage to the items

14 covered.

15 ‘‘SEC. 6. REGULATIONS AND CERTIFICATION.

16 ‘‘(a) REGULATIONS.—The Director shall prescribe reg17 ulations providing for prompt adjustment of valid claims

18 for loss or damage to items that are covered by an agree19 ment entered into pursuant to section 2, including provi20 sion for arbitration of issues relating to the dollar value

21 of damages involving less than total loss or destruction of

22 such covered items.

23 ‘‘(b) CERTIFICATION.—In the case of a claim of loss

24 or damage with respect to an item that is covered by an

25 agreement entered into pursuant to section 2, the Director
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1 shall certify the validity of the claim and the amount of

2 the loss to the Speaker of the House of Representatives and

3 the President pro tempore of the Senate.

4 ‘‘SEC. 7. REPORT.

5 ‘‘The Director shall prepare, and submit at the end

6 of each fiscal year to the appropriate committees of Con7 gress, a report containing information on—

8 ‘‘(1) all claims paid pursuant to this Act during

9 such year;

10 ‘‘(2) pending claims against the Director under

11 this Act as of the end of such year; and

12 ‘‘(3) the aggregate face value of contracts entered

13 into by the Director that are outstanding at the end

14 of such year.

15 ‘‘SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘There are authorized to be appropriated such sums

17 as may be necessary—

18 ‘‘(1) to enable the Director to carry out the func19 tions of the Director under this Act; and

20 ‘‘(2) to pay claims certified pursuant to section

21 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
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statewide workforce development systems, and for other

purposes.’’.

Attest:

Secretary.
104TH CONGRESS

1ST SESSION H. R. 1617

AMENDMENTS
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