IIA

104TH CONGRESS

1ST SESSION H. R. 1617

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 21 (legislative day, SEPTEMBER 5), 1995

Received; read twice and referred to the Committee on Labor and Human

Resources

AN ACT

To consolidate and reform workforce development and

literacy programs, and for other purposes.

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

2 This Act may be cited as the—

3 (1) ‘‘Consolidated and Reformed Education,

4 Employment, and Rehabilitation Systems Act’’; or

5 (2) ‘‘CAREERS Act’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Purpose.

Sec. 4. Authorization of appropriations.

Sec. 5. Definitions.

Sec. 6. Transition.

TITLE I—WORKFORCE DEVELOPMENT INFRASTRUCTURE

Sec. 101. Purpose of title.

Subtitle A—State and Local Responsibilities

Sec. 102. State requirements.

Sec. 103. Collaborative process regarding State system.

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

Sec. 105. Establishment of workforce development areas.

Sec. 106. Provisions regarding local workforce development boards.

Sec. 107. Establishment of integrated career center systems.

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

Sec. 109. Management information systems.

Sec. 110. Performance accountability system.

Sec. 111. Limitation on Federal regulations.

Sec. 112. General provision.

Sec. 113. Liability.

Subtitle B—Amendments to Wagner-Peyser Act

Sec. 131. General program requirements.

Sec. 132. Labor market information.

Subtitle C—General Provisions

Sec. 141. Worker rights.

Sec. 142. Transferability.

TITLE II—YOUTH DEVELOPMENT AND CAREER PREPARATION

CONSOLIDATION GRANT

Sec. 201. Purposes.

Sec. 202. Definitions.
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Subtitle A—State Funding

Sec. 211. National and State funding.

Sec. 212. Within State allocation.

Subtitle B—State Organizational, Planning, and Reporting Responsibilities

Sec. 221. State plan.

Sec. 222. State programs and State activities.

Sec. 223. Incentive awards.

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

Sec. 231. Partnership agreements.

Sec. 232. Distribution of funds.

CHAPTER 1—IN-SCHOOL YOUTH

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

CHAPTER 2—AT-RISK YOUTH

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

Sec. 246. At-risk youth providers.

Subtitle D—National Programs

Sec. 251. Research activities.

Sec. 252. Assessment and data collection of youth development and career

preparation programs.

Sec. 253. National center or centers for research.

Sec. 254. Purchase of American-made equipment and products.

TITLE III—ADULT EMPLOYMENT AND TRAINING CONSOLIDATION

GRANT

Sec. 301. Purpose.

Subtitle A—Adult Employment and Training Consolidation Grant

Sec. 311. Authorization.

Sec. 312. Allotment among States.

Sec. 313. Allocation within States.

Sec. 314. Additional State plan requirements.

Sec. 315. Use of amounts.

Subtitle B—Federal Programs

Sec. 321. National discretionary grants.

Sec. 322. Disaster relief employment assistance.

Sec. 323. Research, demonstration, evaluation, and capacity building.

Sec. 324. Workforce skills and development loans.

Sec. 325. Employment, training, and education assistance for Native Americans.

Sec. 326. Employment, training, and education assistance for migrant and seasonal farmworkers.
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TITLE IV—ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND LIBRARY SERVICES AND TECHNOLOGY

CONSOLIDATION GRANT

Sec. 401. Findings.

Sec. 402. Definitions.

Subtitle A—Adult Education and Family Literacy Consolidation Grant

Sec. 411. Purposes.

CHAPTER 1—FUNDING

Sec. 421. Reservations from amounts appropriated.

Sec. 422. Allotment.

CHAPTER 2—GRANTS TO STATES

Sec. 431. Requirement to make grants.

Sec. 432. Uses of funds.

Sec. 433. Additional grant requirements.

CHAPTER 3—NATIONAL PROGRAMS

Sec. 441. National Institute for Literacy.

Sec. 442. National leadership activities.

Subtitle B—Library Services and Technology Consolidation Grant

Sec. 451. Purposes.

Sec. 452. Authorization of appropriations.

Sec. 453. Allotments.

Sec. 454. Grants to States.

Sec. 455. Uses of funds.

Sec. 456. Annual applications.

TITLE V—MISCELLANEOUS PROVISIONS

Sec. 501. Effect on Rehabilitation Act of 1973.

TITLE VI—HIGHER EDUCATION PRIVATIZATION

Sec. 601. Reorganization of the Student Loan Marketing Association through

the formation of a holding company.

Sec. 602. Privatization of College Construction Loan Insurance Association.

TITLE VII—REPEALERS AND OTHER AMENDMENTS

Sec. 701. Higher education provisions.

Sec. 702. Eligible institution.

Sec. 703. Carl D. Perkins Vocational and Applied Technology Education Act.

Sec. 704. Smith-Hughes Act.

Sec. 705. School-to-Work Opportunities Act of 1994.

Sec. 706. School Dropout Assistance Act.

Sec. 707. Adult Education Act.

Sec. 708. National Literacy Act.

Sec. 709. Library Services and Construction Act.

Sec. 710. Technology for Education Act of 1994.

Sec. 711. Job Training Partnership Act.
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Sec. 712. Stewart B. McKinney Homeless Assistance Act.

Sec. 713. Effective date.

1 SEC. 3. PURPOSE.

2 The purpose of this Act is to transform the vast array

3 of Federal workforce development and literacy programs

4 from a collection of fragmented and duplicative categorical

5 programs into a streamlined, comprehensive, coherent,

6 high-quality, cost-effective, market-based, and accountable

7 workforce development and literacy system that is de8 signed to meet the education, economic, employment, and

9 training needs of the workforce and the competitiveness

10 needs of employers of the United States, both today and

11 in the future.

12 SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

13 (a) IN GENERAL.—There are authorized to be appro14 priated—

15 (1) for title II, $2,324,600,000 for fiscal year

16 1997 and such sums as may be necessary for each

17 of the fiscal years 1998 through 2002 to carry out

18 the programs under such title;

19 (2) for title III, $2,183,000,000 for fiscal year

20 1997 and such sums as may be necessary for each

21 of the fiscal years 1998 through 2002 to carry out

22 the programs under such title; and

23 (3) for subtitle A of title IV, $280,000,000 for

24 fiscal year 1997 and such sums as may be necessary
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1 for each of the fiscal years 1998 through 2002 to

2 carry out the programs under such subtitle.

3 (b) PROGRAM YEAR.—

4 (1) IN GENERAL.—Beginning in fiscal year

5 1997, and each year thereafter, appropriations for

6 any fiscal year for programs and activities under ti7 tles II, III, and IV of this Act shall be available for

8 obligation only on the basis of a program year. The

9 program year shall begin on July 1 in the fiscal year

10 for which the appropriation is made.

11 (2) OBLIGATION.—Funds obligated for any pro12 gram year under titles II, III, and IV, may be ex13 pended by each recipient during that program year

14 and the two succeeding program years, except that

15 the Secretary shall, in accordance with paragraph

16 (3), reallot to eligible States the funds allotted to

17 States from funds appropriated for reallotments.

18 (3) AMOUNTS AVAILABLE FOR REALLOT19 MENT.—The amount available for reallotment is

20 equal to—

21 (A) the amount by which the unobligated

22 balance of the State allotment at the end of the

23 program year prior to the program year for

24 which the determination under this section is
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1 made exceeds 20 percent of such allotment for

2 the prior program year; plus

3 (B) the unexpended balance of the State

4 allotment from any program year prior to the

5 program year in which there is such excess.

6 SEC. 5. DEFINITIONS.

7 For purposes of this Act, except as otherwise pro8 vided:

9 (1) ADULT.—The term ‘‘adult’’ means an indi10 vidual who is 16 years of age, or beyond the age of

11 compulsory school attendance under State law

12 (whichever age is higher), and who is not enrolled or

13 required to be enrolled in secondary school.

14 (2) ADULT EDUCATION.—The term ‘‘adult edu15 cation’’ means services or instruction below the post16 secondary level for adults—

17 (A) who are not enrolled in secondary

18 school;

19 (B) who lack sufficient mastery of basic

20 educational skills to enable them to function ef21 fectively in society or who do not have a certifi22 cate of graduation from a school providing sec23 ondary education and who have not achieved an

24 equivalent level of education;
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1 (C) who are not currently required to be

2 enrolled in school; and

3 (D) whose lack of mastery of basic skills

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

5 the English language which constitutes a sub6 stantial impairment of their ability to get or re7 tain employment commensurate with their real

8 ability, and thus are in need of programs to

9 help eliminate such inability and raise the level

10 of education of such individuals with a view to

11 making them less likely to become dependent on

12 others.

13 (3) AREA VOCATIONAL EDUCATION SCHOOL.—

14 The term ‘‘area vocational education school’’

15 means—

16 (A) a specialized high school used exclu17 sively or principally for the provision of voca18 tional education to individuals who are available

19 for study in preparation for entering the labor

20 market;

21 (B) the department of a high school exclu22 sively or principally used for providing voca23 tional education in not less than 5 different oc24 cupational fields to individuals who are avail-
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1 able for study in preparation for entering the

2 labor market;

3 (C) a technical institute or vocational

4 school used exclusively or principally for the

5 provision of vocational education to individuals

6 who have completed or left high school and who

7 are available for study in preparation for enter8 ing the labor market; or

9 (D) the department or division of a junior

10 college, community college or university operat11 ing under the policies of the State board and

12 which provides vocational education in not less

13 than 5 different occupational fields leading to

14 immediate employment but not necessarily lead15 ing to a baccalaureate degree, if, in the case of

16 a school, department, or division described in

17 subparagraph (C) or this subparagraph, it ad18 mits as regular students both individuals who

19 have completed high school and individuals who

20 have left high school.

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

22 means—

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

24 an individual age 24 or younger and who is not

25 enrolled in a secondary or postsecondary edu-
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1 cation program, has not received a high school

2 diploma or its equivalent and must overcome

3 barriers to employment such as lack of suffi4 cient education or vocational skills, economic

5 disadvantages, disability, or limited English

6 proficiency; or

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

8 individual age 24 or younger who is enrolled in

9 an accredited secondary or postsecondary edu10 cation program but is at risk of dropping out

11 of school or must overcome barriers to complete

12 an education program, such as economic dis13 advantages, disability, or limited English pro14 ficiency.

15 (5) COMPREHENSIVE CAREER GUIDANCE AND

16 COUNSELING.—The term ‘‘comprehensive career

17 guidance and counseling’’ means a program—

18 (A) which pertains to the body of subject

19 matter and related techniques and methods or20 ganized for the development in individuals of

21 career awareness, career planning, career deci22 sionmaking, placement skills, and knowledge

23 and understanding of local, State, and national

24 occupational, educational, and labor market

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

3 occupational choices; and

4 (C) which is comprehensive in nature.

5 (6) CAREER GRANT.—The term ‘‘career grant’’

6 means a voucher or a credit issued to a participant

7 under title III of this Act, or title I of the Rehabili8 tation Act of 1973, for the purchase of education or

9 training services from certified providers of such

10 services, in accordance with the provisions of this

11 Act, and with guidelines issued by the State.

12 (7) CASE MANAGEMENT.—The term ‘‘case man13 agement’’ means the provision of a client-centered

14 approach in the delivery of services designed to—

15 (A) empower individuals to make informed

16 career choices;

17 (B) prepare and coordinate comprehensive

18 employment plans, based upon such individual

19 choices, such as service strategies for partici20 pants, to ensure access to necessary training

21 and supportive services, using, where feasible,

22 computer-based technologies; and

23 (C) provide job and career counseling dur24 ing program participation and after job place25 ment.
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1 (8) CHIEF ELECTED OFFICIAL.—The term

2 ‘‘chief elected official’’ means the chief elected execu3 tive officer of a unit of general local government in

4 a workforce development area.

5 (9) COMMUNITY-BASED ORGANIZATION.—The

6 term ‘‘community-based organization’’ means a pri7 vate nonprofit organization that is representative of

8 a community or significant segments of a community

9 that provides or facilitates education, vocational re10 habilitation, job training, supportive services, or in11 ternship services and programs.

12 (10) DEMOGRAPHIC CHARACTERISTICS.—The

13 term ‘‘demographic characteristics’’ means informa14 tion on population, especially with reference to size,

15 density, distribution, and vital statistics including,

16 age, race, sex, ethnic origin, and income status.

17 (11) DISLOCATED WORKER.—The term ‘‘dis18 located worker’’ means an individual who—

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

20 has received a notice of termination or layoff

21 from employment, is eligible for or has ex22 hausted entitlement to unemployment com23 pensation, and is unlikely to return to a pre24 vious industry or occupation;
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1 (B) has been terminated, or has received a

2 notice of termination of employment, as a result

3 of any permanent closure of, or any substantial

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

5 (C) has been unemployed long-term and

6 has limited opportunities for employment or re7 employment in the same or a similar occupation

8 in the area in which such individual resides, in9 cluding an older individual who may have sub10 stantial barriers to employment by reason of

11 age; or

12 (D) was self-employed (including farmers

13 and ranchers) but is unemployed as a result of

14 general economic conditions in the community

15 in which they reside or because of natural dis16 asters.

17 (12) DISPLACED HOMEMAKER.—The term ‘‘dis18 placed homemaker’’ means an individual who—

19 (A) is an adult; and

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

21 without remuneration to care for the home and

22 family, and for that reason has diminished mar23 ketable skills;
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1 (ii) has been dependent on public assist2 ance or on the income of a relative but is no

3 longer supported by such income; or

4 (iii) is a parent whose youngest dependent

5 child will become ineligible to receive assistance

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

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

10 this Act.

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

12 gross hourly wages before any deduction, plus the

13 estimated hourly value of bonuses, tips, gratuities,

14 commissions, and overtime pay either expected or re15 ceived. In the case of individuals in subsidized em16 ployment, total hourly earnings include any wage

17 subsidy paid to the individual.

18 (14) ECONOMIC DEVELOPMENT AGENCIES.—

19 The term ‘‘economic development agencies’’ means

20 State and local planning and zoning commissions or

21 boards, community development agencies, and other

22 State and local agencies and institutions responsible

23 for regulating, promoting, or assisting in State and

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

2 term ‘‘economically disadvantaged’’ means an indi3 vidual who—

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

5 which receives, cash welfare payments under a

6 Federal, State, or local welfare program;

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

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

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

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

13 not in excess of the higher of—

14 (i) the official poverty line (as defined

15 by the Office of Management and Budget,

16 and revised annually in accordance with

17 section 673(2) of the Omnibus Budget

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

19 9902(2)), or

20 (ii) 70 percent of the lower living

21 standard income level;

22 (C) is receiving (or has been determined

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

2 Stamp Act of 1977;

3 (D) qualifies as a homeless individual

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

5 the Stewart B. McKinney Homeless Assistance

6 Act;

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

8 State or local government payments are made;

9 (F) in cases permitted by regulations of

10 the Secretary, is an individual with a disability

11 whose own income meets the requirements of

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

13 of a family whose income does not meet such

14 requirements; or

15 (G) is an individual meeting appropriate

16 criteria approved by a State.

17 (16) EDUCATIONAL SERVICE AGENCY.—The

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

19 public multiservice agency authorized by State stat20 ute to develop, manage, and provide services or pro21 grams to local educational agencies, and is recog22 nized as an administrative agency for such State’s

23 vocational or technical education schools or for voca24 tional programs within its public elementary or sec25 ondary schools. Such term includes any other public
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1 institution or agency having administrative control

2 and direction over a public elementary or secondary

3 school.

4 (17) EMPLOYED.—The term ‘‘employed’’ means

5 an individual who is currently—

6 (A) a paid employee;

7 (B) works in his or her own business, pro8 fession, or farm;

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

10 an unpaid worker in an enterprise operated by

11 a family member or is one who is not working,

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

13 is temporarily absent due to illness, bad weath14 er, vacation, labor-management dispute, or per15 sonal reasons; or

16 (D) on active military duty.

17 (18) ENGLISH LITERACY PROGRAM.—The term

18 ‘‘English literacy program’’ means a program of in19 struction designed to help limited English proficient

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

21 competence in the English language.

22 (19) EXCESS NUMBER.—The term ‘‘excess

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

24 of unemployed individuals within a State, the num25 ber that represents the number of unemployed indi-
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1 viduals in excess of 4.5 percent of the civilian labor

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

3 number of unemployed individuals in excess of 4.5

4 percent of the civilian labor force in areas of sub5 stantial unemployment in such State.

6 (20) FAMILY AND CONSUMER SCIENCES.—The

7 term ‘‘family and consumer sciences’’ means instruc8 tional programs, services, and activities which pre9 pare students for personal, family, community, and

10 career roles.

11 (21) GOVERNOR.—The term ‘‘Governor’’ means

12 the chief executive of a State.

13 (22) INDIVIDUAL OF LIMITED ENGLISH PRO14 FICIENCY.—The term ‘‘individual of limited English

15 proficiency’’ means an adult or youth who has lim16 ited ability in speaking, reading, writing, or under17 standing the English language and—

18 (A) whose native language is a language

19 other than English; or

20 (B) who lives in a family or community en21 vironment where a language other than English

22 is the dominant language.

23 (23) INDIVIDUALS WITH DISABILITIES.—The

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

25 given such term in the Rehabilitation Act of 1973.
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1 (24) INSTITUTION OF HIGHER EDUCATION.—

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

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

5 (25) JOB SEARCH ASSISTANCE.—The term ‘‘job

6 search assistance’’ means a service that helps a job7 ready individual seek, locate, apply for, and obtain

8 employment. Such services may include, job-finding

9 skills, orientation to the labor market, resume prepa10 ration assistance, job finding clubs, job search work11 shops, vocational exploration, and other employ12 ability services.

13 (26) LABOR MARKET AREA.—The term ‘‘labor

14 market area’’ means an economically integrated geo15 graphic area within which individuals can reside and

16 find employment within a reasonable distance or can

17 readily change employment without changing their

18 place of residence. Such areas shall be identified in

19 accordance with criteria used by the Bureau of

20 Labor Statistics of the Department of Labor in de21 fining such areas or similar criteria established by a

22 Governor.

23 (27) LIBRARY.—The term ‘‘library’’ includes—

24 (A) a public library;
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1 (B) a public elementary or secondary

2 school library;

3 (C) an academic library;

4 (D) a research library; and

5 (E) a private library, but only if the State

6 in which such private library is located deter7 mines that the library should be considered a li8 brary for purposes of this Act.

9 (28) LITERACY.—The term ‘‘literacy’’ means an

10 individual’s ability to read, write, and speak in Eng11 lish, and compute and solve problems, at levels of

12 proficiency necessary—

13 (A) to function on the job, in the individ14 ual’s family and in society;

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

16 (C) to develop the individual’s knowledge

17 potential.

18 (29) LOCAL EDUCATIONAL AGENCY.—The term

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

20 given such term in section 14101 of the Elementary

21 and Secondary Education Act of 1965.

22 (30) MIGRANT FARMWORKER.—The term ‘‘mi23 grant farmworker’’ means a seasonal farmworker

24 whose farm work requires travel such that the work-
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1 er is unable to return to a permanent place of resi2 dence within the same day.

3 (31) NATIVE AMERICAN.—The term ‘‘native

4 American’’ means Indians, Alaskan natives, and Ha5 waiian natives.

6 (32) NONTRADITIONAL EMPLOYMENT.—The

7 term ‘‘nontraditional employment’’ as applied to

8 women refers to occupations or fields of work where

9 women comprise less than 25 percent of the individ10 uals employed in such occupation or field of work.

11 (33) ON-THE-JOB TRAINING.—The term ‘‘on12 the-job training’’ means training in the public or pri13 vate sector that is provided to a paid employee while

14 engaged in productive work that—

15 (A) provides knowledge or skills essential

16 to the full and adequate performance of the job;

17 (B) provides reimbursement to employers,

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

19 for the extraordinary costs of providing training

20 and additional supervision; and

21 (C) is based on the Occupational Employ22 ment Statistics Program Dictionary.

23 (34) POSTSECONDARY EDUCATIONAL INSTITU24 TION.—The term ‘‘postsecondary educational institu25 tion’’ means an institution of higher education (as
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1 such term is defined in section 481 of the Higher

2 Education Act of 1965) which continues to meet the

3 eligibility and certification requirements under title

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

5 (35) PREEMPLOYMENT SKILLS TRAINING; JOB

6 READINESS SKILLS TRAINING.—The terms

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

8 skills training’’ mean training that builds on family

9 efforts to help prepare individuals for work by assur10 ing that they are familiar with general workplace ex11 pectations and exhibit work behavior and attitudes

12 necessary to compete successfully in the job market.

13 (36) PUBLIC ASSISTANCE.—The term ‘‘public

14 assistance’’ means Federal, State, or local govern15 ment cash payments for which eligibility is deter16 mined by a needs or income test.

17 (37) RAPID RESPONSE.—The term ‘‘rapid re18 sponse’’ means assistance that is directly provided

19 by the State, or by local grantees with funds pro20 vided by the State, in the case of mass layoffs or

21 plant closures, and that establishes on-site contact

22 with employer and employee representatives within a

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

24 after becoming aware of a current or projected per25 manent closure or substantial layoff in order to—
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1 (A) provide information on, and facilitate

2 access to, available public programs and serv3 ices for workers losing jobs as a result of such

4 layoff or closure;

5 (B) provide emergency assistance adapted

6 to the particular closure or layoff;

7 (C) promote the formation of labor-man8 agement committees, where appropriate;

9 (D) collect information related to economic

10 dislocation and available resources within the

11 State for dislocated workers;

12 (E) provide or obtain appropriate financial

13 and technical advice and liaison with economic

14 development agencies and other organizations

15 to assist in efforts to avert worker dislocation;

16 and

17 (F) assist the local community in develop18 ing its own coordinated response and in obtain19 ing access to State economic development as20 sistance.

21 (38) REGISTERED APPRENTICESHIP.—The term

22 ‘‘registered apprenticeship’’ means a program reg23 istered by the Bureau of Apprenticeship and Train24 ing in the United States Department of Labor, or a

25 State Apprenticeship Agency recognized and ap-
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1 proved by the Bureau of Apprenticeship and Train2 ing as the appropriate body for State registration or

3 approval of local apprenticeship programs and agree4 ments.

5 (39) SCHOOL DROPOUT.—The term ‘‘school

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

7 any school and who has not received a secondary

8 school diploma or a certificate from a program of

9 equivalency for such a diploma.

10 (40) SEASONAL FARMWORKER.—The term

11 ‘‘seasonal farmworker’’ means a person who during

12 the eligibility determination period (12 consecutive

13 months out of 24 months prior to application) has

14 been primarily employed in farm work that is char15 acterized by chronic unemployment or under employ16 ment.

17 (41) SKILL CERTIFICATE.—The term ‘‘skill cer18 tificate’’ means a portable, industry-recognized cre19 dential achieved through programs authorized under

20 this Act, that certifies that an individual has mas21 tered occupational skills at levels that are at least as

22 challenging as skill standards endorsed by the Na23 tional Skill Standards Board, except that until such

24 skill standards are developed, the term ‘‘skill certifi25 cate’’ means a credential issued under a process en-
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1 dorsed by the State, based upon established industry

2 standards and benchmarks.

3 (42) STATE.—The term ‘‘State’’ means any of

4 the several States, the District of Columbia, the

5 Commonwealth of Puerto Rico, the Virgin Islands,

6 American Samoa, Guam, and the Commonwealth of

7 the Northern Mariana Islands.

8 (43) STATE EDUCATIONAL AGENCY.—The term

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

10 such term in section 14101 of the Elementary and

11 Secondary Education Act of 1965.

12 (44) STATE LIBRARY ADMINISTRATIVE AGEN13 CY.—The term ‘‘State library administrative agen14 cy’’ means the official agency of a State charged by

15 the law of the State with the extension and develop16 ment of public library services throughout the State.

17 (45) SUPPORTIVE SERVICES.—The term ‘‘sup18 portive services’’ means services which are necessary

19 to enable an individual eligible for training under

20 this Act, but who cannot afford to pay for such serv21 ices, to participate in a training or vocational reha22 bilitation program or job search activities funded

23 under this Act. Such supportive services may include

24 transportation, individual and family counseling,

25 child care and dependent care, meals, temporary
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1 shelter, financial counseling, needs-based payments,

2 and other reasonable expenses required for partici3 pation in a training, job preparation, or job place4 ment program. Such services may be provided in5 kind or through cash assistance, except that such

6 services will be provided with funds provided under

7 this Act only after alternative funding sources spe8 cifically designated for such services have been ex9 hausted.

10 (46) UNEMPLOYED.—The term ‘‘unemployed’’

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

12 available for work, and who has made specific efforts

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

14 unemployed are individuals who are not working, are

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

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

17 (47) UNIT OF GENERAL LOCAL GOVERN18 MENT.—The term ‘‘unit of general local govern19 ment’’ means any general purpose political subdivi20 sion of a State which has the power to levy taxes

21 and spend funds, as well as general corporate and

22 police powers.

23 (48) VETERAN.—The term ‘‘veteran’’ has the

24 meaning given such term in section 101(2) of title

25 38, United States Code.
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1 (49) WORK EXPERIENCE.—The term ‘‘work ex2 perience’’ means a time-limited work activity that

3 provides an individual with the opportunity to ac4 quire the general skills and knowledge necessary to

5 obtain employment.

6 (50) WORKPLACE MENTOR.—The term ‘‘work7 place mentor’’ means an employee or other individ8 ual, approved by the employer at a workplace, who

9 possesses the skills and knowledge to be mastered by

10 a student or program participant, and who instructs,

11 critiques the performance, and challenges the stu12 dent or program participant to perform well, and

13 works in consultation with classroom teachers, train14 ing providers, parents, and the employer of the stu15 dent or program participant.

16 (51) YOUTH.—The term ‘‘youth’’ means an in17 dividual under the age of 24.

18 SEC. 6. TRANSITION.

19 The Secretary of Education and the Secretary of

20 Labor shall take such steps as they determine to be appro21 priate to provide for the orderly transition from any au22 thority under provisions of statutes amended or repealed

23 by this Act or any related authority under provisions of

24 this Act.
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1 TITLE I—WORKFORCE DEVELOP2 MENT INFRASTRUCTURE

3 SEC. 101. PURPOSE OF TITLE.

4 The purpose of this title is to provide for the estab5 lishment of an infrastructure within States on which to

6 build a comprehensive system of workforce development

7 and literacy.

8 Subtitle A—State and Local

9 Responsibilities

10 SEC. 102. STATE REQUIREMENTS.

11 (a) IN GENERAL.—For fiscal year 1997 and subse12 quent fiscal years, a State that desires to receive a grant

13 under one or more of the programs specified in subsection

14 (b) shall—

15 (1) establish a collaborative process, pursuant

16 to section 103;

17 (2) develop a State workforce development and

18 literacy plan, pursuant to section 104; and

19 (3) otherwise comply with the requirements of

20 this Act.

21 (b) WORKFORCE DEVELOPMENT AND LITERACY

22 PROGRAMS.—

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

24 subsection (a) are the following:
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1 (A) The program under title II, the Youth

2 Development and Career Preparation Consoli3 dation Grant.

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

5 Employment and Training Consolidation Grant.

6 (C) The program under subtitle A of title

7 IV, the Adult Education and Family Literacy

8 Consolidation Grant.

9 (D) The program amended by subtitle A of

10 title V (relating to title I of the Rehabilitation

11 Act of 1973).

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

13 term ‘‘Workforce Development and Literacy pro14 grams’’ means the programs specified in paragraph

15 (1).

16 SEC. 103. COLLABORATIVE PROCESS REGARDING STATE

17 SYSTEM.

18 (a) IN GENERAL.—The Governor of a State that de19 sires to receive a grant under one or more of the programs

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

21 of Education and the Secretary of Labor that a collabo22 rative process, as described in subsection (b) or (c), has

23 been used in complying with the applicable provisions of

24 this Act.
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1 (b) COLLABORATIVE PROCESS.—The collaborative

2 process referred to in subsection (a) is a process for mak3 ing decisions which includes as participants, at a mini4 mum, the Governor and—

5 (1) representatives of (which representatives are

6 appointed by the Governor)—

7 (A) business and industry;

8 (B) local chief elected officials (represent9 ing both cities and counties);

10 (C) local educational agencies (including

11 vocational educators);

12 (D) postsecondary institutions (including

13 community and technical colleges);

14 (E) the State rehabilitation advisory coun15 cil;

16 (F) organizations representing individuals

17 served by programs established under this Act

18 (including community-based organizations);

19 (G) employees;

20 (H) parents; and

21 (I) providers of workforce development

22 services (including private-for-profit sector pro23 viders);

24 (2) the lead State agency and entity official or

25 officials for—
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1 (A) the State educational agency or agen2 cies (including the lead official or officials for

3 vocational education, adult education and lit4 eracy, and libraries);

5 (B) the State agency responsible for eco6 nomic development;

7 (C) the State agency or agencies respon8 sible for employment security and for job train9 ing;

10 (D) the State agency responsible for post11 secondary education;

12 (E) the State agency responsible for voca13 tional rehabilitation, and where applicable, the

14 State agency providing vocational rehabilitation

15 services for the blind;

16 (F) the State agency responsible for ad17 ministering welfare benefits;

18 (G) the representative of the Veterans’

19 Service assigned to the State under section

20 4103 of title 38, United States Code; and

21 (H) the State entity responsible for setting

22 education policies, consistent with State law, on

23 the date preceding the date of the enactment of

24 this Act; and

25 (3) representatives of the State legislature.
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1 (c) RULE OF CONSTRUCTION.—With respect to com2 pliance with subsection (b)—

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

4 (including any council or similar entity) that sub5 stantially meets the purposes of such subsection; or

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

7 a State has developed a one-stop career center sys8 tem or a school-to-work system through a collabo9 rative process substantially similar to the process de10 scribed in subsection (b), the State may use such

11 process.

12 (d) AUTHORITY OF GOVERNOR.—

13 (1) FINAL AUTHORITY.—If, after a reasonable

14 effort, a Governor is unable to obtain agreement

15 through the collaborative process described in sub16 section (b) or (c), the Governor shall have final au17 thority to make decisions and to submit the State

18 plan as described under section 104.

19 (2) EXCEPTION.—Nothing in this Act shall be

20 construed to negate or supersede the legal authority,

21 under State law of any State agency, State entity,

22 or State public official over programs that are under

23 the jurisdiction of the agency, entity, or official.

24 Nothing in this Act shall be construed to interfere
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1 with the authority of such agency, entity, or official

2 to enter into a contract under any provision of law.

3 (3) DISAGREEMENT.—The Governor shall ac4 cept and include with the State plan submitted

5 under section 104, any disagreeing views submitted

6 by a participant of the collaborative process if such

7 views represent disagreement in the area in which

8 such participant was selected for representation.

9 SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOP10 MENT AND LITERACY PLAN.

11 (a) IN GENERAL.—The Governor of a State that de12 sires to receive a grant under one or more of the programs

13 specified in section 102(b) shall submit a strategic State

14 workforce development and literacy plan that provides pol15 icy guidance with respect to workforce development pro16 grams operated in the State, and that meets the require17 ments of this section to the Secretary of Education and

18 the Secretary of Labor.

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

20 literacy plan shall include the following:

21 (1) A description of the collaborative process

22 under section 103 used in developing the plan.

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

24 workforce development and literacy system, that in25 cludes—
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1 (A) a description of how the State will

2 progress toward achieving the goals and pur3 pose of this Act as established in sections

4 3(a)(5) and 3(b);

5 (B) an assessment of the needs of the

6 State with regard to current and projected de7 mands for workers by occupation, the skills and

8 education levels of the workforce, the vocational

9 rehabilitation needs of individuals with severe

10 disabilities residing in the State, the skill and

11 economic development needs of the State, and

12 an assessment of the type and availability of

13 youth development and career preparation,

14 workforce development, adult education, voca15 tional rehabilitation, and literacy programs and

16 services in the State; and

17 (C) the identification of progress indica18 tors, based on the core indicators of perform19 ance described in section 110(f), built upon a

20 model of continuous improvement, that the

21 State will use to measure progress made by the

22 State, local workforce development boards, and

23 other applicable local entities who are recipients

24 of financial assistance under this Act in meet25 ing such goals;
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1 (3) A description of how the State has com2 plied, or will comply, with the provisions of sections

3 105 through 108.

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

5 in the national labor market information system

6 under title II of the Wagner-Peyser Act, as added by

7 section 132 of this Act.

8 (5) Any information required to be included in

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

10 I of the Rehabilitation Act of 1973 (in the case of

11 a State that desires to receive a grant under any

12 such title).

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

14 taken by the State to ensure coordination and con15 sistency and avoid duplication among programs re16 ceiving assistance under this Act, including a de17 scription of common data collection and reporting

18 processes.

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

20 State to provide an opportunity for public comment,

21 and input into the development of the plan, prior to

22 submission of the plan.

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

24 State to consult with representatives of business and

25 industry with respect to the requirements of sub-
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1 paragraphs (A), (B), and (C) of paragraph (2) of

2 this subsection.

3 (9) Assurances that the State will provide for

4 fiscal control and fund accounting procedures that

5 may be necessary to ensure the proper disbursement

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

7 under this Act.

8 (10) A description of the sanctions which the

9 State may impose (including restrictions from future

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

12 to achieve agreed upon expected performance levels,

13 fail to adhere to State mandated fiscal control and

14 funds accounting procedures, or take or fail to take

15 other actions required under the State plan, con16 tracts, or other agreements.

17 (c) MODIFICATIONS TO PLAN.—A plan submitted by

18 a State in accordance with this section remains in effect

19 until the State submits to the Secretary such modifica20 tions as the State determines necessary. This section ap21 plies to the modifications to the same extent and in the

22 same manner as this section applies to the original plan.
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1 SEC. 105. ESTABLISHMENT OF WORKFORCE DEVELOPMENT

2 AREAS.

3 The Governor of a State that desires to receive a

4 grant under one or more of the programs specified in sec5 tion 102(b) shall, through the collaborative process estab6 lished under section 103 and after consultation with local

7 chief elected officials, and after consideration of comments

8 received through the public participation process as de9 scribed in the State plan, designate local workforce devel10 opment areas within the State taking into consideration

11 the following:

12 (1) Existing labor market areas.

13 (2) Units of general local government.

14 (3) Geographic areas served by local edu15 cational agencies and intermediate educational agen16 cies.

17 (4) Geographic areas served by postsecondary

18 institutions and area vocational education schools.

19 (5) Service delivery areas established under sec20 tion 101 of the Job Training Partnership Act (29

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

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

23 (6) The distance that individuals will need to

24 travel to receive services from integrated career cen25 ters.
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1 SEC. 106. PROVISIONS REGARDING LOCAL WORKFORCE DE2 VELOPMENT BOARDS.

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

5 specified in section 102(b) shall ensure the establishment

6 of a local workforce development board in each local

7 workforce development area within the State.

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

9 collaborative process described under section 103, is au10 thorized to establish criteria for use by local chief elected

11 officials in the workforce development area, in the selec12 tion of members of local workforce development boards,

13 in accordance with requirements prescribed under sub14 sections (c) and (d).

15 (c) REPRESENTATION REQUIREMENT.—Such criteria

16 shall require, at a minimum, that a local workforce devel17 opment board consist of—

18 (1) a majority of members who are representa19 tives of business and industry, including individuals

20 who are owners of businesses, chief executives or

21 chief operating officers of private business, and

22 other business executives with optimum policy23 making authority in local businesses, selected from

24 among nominees submitted by local business organi25 zations and trade associations;
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1 (2) an individual or individuals with disabilities,

2 who have special knowledge or expertise in the area

3 of vocational rehabilitation;

4 (3) representatives of education and training,

5 including academic and vocational administrators,

6 members of local school boards, principals, teachers,

7 postsecondary and other adult education administra8 tors and instructors, including community colleges,

9 local educational agencies, postsecondary education

10 institutions, and providers of job training and

11 workforce development services, selected from among

12 individuals nominated by regional or local edu13 cational agencies, vocational education institutions,

14 institutions of postsecondary education (including

15 community colleges), providers of job training and

16 workforce development services (including private17 for-profit providers), within the workforce develop18 ment area; and

19 (4) representatives of community-based organi20 zations, employees, and veterans as nominated or

21 recommended to the board through a process estab22 lished by the Governors through the collaborative

23 process.

24 (d) ESTABLISHMENT OF BOARD.—

25 (1) SELECTION OF BOARD MEMBERS.—
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1 (A) SINGLE UNIT OF LOCAL GOVERNMENT

2 IN AREA.—In the case of a workforce develop3 ment area that is comprised of only one unit of

4 general local government, the chief elected offi5 cial of such unit is authorized to select the

6 members of the local workforce development

7 board for such area, in accordance with the

8 State criteria developed pursuant to subsection

9 (b).

10 (B) MULTIPLE UNITS IN AREA.—In the

11 case of a workforce development area that is

12 comprised of more than one unit of general

13 local government, the chief elected officials of

14 such units are authorized to select the members

15 of the local workforce development board from

16 the individuals so nominated or recommended

17 for such area in accordance with an agreement

18 entered into by such officials and with the State

19 criteria developed under subsection (b). In the

20 absence of such an agreement, the appoint21 ments are authorized to be made by the Gov22 ernor, through the collaborative process, from

23 the individuals so nominated or recommended.
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1 (2) CERTIFICATION.—The Governor is author2 ized to biennially certify one local workforce develop3 ment board for each workforce development area.

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

5 workforce development area is a State, the individ6 uals comprising the Governor’s collaborative process

7 as described in section 103, may be reconstituted to

8 meet the requirements of this section.

9 (e) DUTIES OF LOCAL WORKFORCE DEVELOPMENT

10 BOARD.—

11 (1) LOCAL WORKFORCE DEVELOPMENT

12 PLAN.—Each local workforce development board

13 shall develop a biennial strategic plan and provide

14 policy guidance with respect to workforce develop15 ment programs operated within their respective

16 workforce development areas. Such strategic plan

17 shall be consistent with the State’s collaborative

18 workforce development and literacy plan, be ap19 proved by the appropriate chief elected official or of20 ficials, and be submitted to the Governor for ap21 proval. If after a reasonable effort, a local workforce

22 development board is unable to obtain the approval

23 of the chief elected official or officials, the Board has

24 the authority to forward the plan, with the com25 ments of the chief elected official or officials, to the
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1 Governor for final approval or disapproval. Such

2 local plan shall include the following:

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

4 and related strategies, to ensure that workforce

5 preparation and development programs, includ6 ing programs established pursuant to this Act,

7 title I of the Rehabilitation Act of 1973, and

8 the Wagner-Peyser Act, contribute to a coher9 ent workforce development system in the

10 workforce development area.

11 (B) A description of the performance

12 measures to be used by the local workforce de13 velopment board for measuring the performance

14 of local service providers under chapter 2 of

15 title II, title III, and title I of the Rehabilita16 tion Act of 1973, and the performance of inte17 grated career center system operators, with

18 whom the Board contracts.

19 (C) A description of the local integrated

20 career center system to be established in the

21 workforce development area, including—

22 (i) a description of the process the

23 local workforce development board will use

24 to designate or establish a career center

25 system which ensures that the most effec-
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1 tive and efficient service providers are cho2 sen;

3 (ii) an identification of the roles of in4 dividual workforce development programs

5 and programs authorized by the Wagner6 Peyser Act; and

7 (iii) a description of the funding

8 sources to be used in the operation of the

9 career center system.

10 (D) A description of strategies the local

11 workforce development board will undertake to

12 fully involve local employers, local educational

13 agencies, postsecondary education institutions,

14 adult education and literacy providers, local

15 service providers, parents and other consumers,

16 including individuals with disabilities, and older

17 workers in the development of the workforce de18 velopment system.

19 (E) Such other information as requested

20 by the State.

21 (2) IDENTIFICATION OF OCCUPATIONS IN DE22 MAND AND TRAINING NEEDS.—The local workforce

23 development board shall use available labor market

24 information and other appropriate methods in order
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1 to identify and assess the needs of the workforce de2 velopment area.

3 (3) BUDGET AND PROGRAM OVERSIGHT.—

4 (A) BUDGETING.—

5 (i) The local workforce development

6 board, working through the State adminis7 trative agent, shall develop a budget for

8 the purpose of carrying out local programs

9 established under chapter 2 of title II, title

10 III, and title I of the Rehabilitation Act of

11 1973, and for integrated career center sys12 tems established or designated under sec13 tion 107 with the exception of funds made

14 available under the Wagner-Peyser Act.

15 (ii) Such budget shall be subject to

16 the approval of the appropriate chief elect17 ed official or officials in the workforce de18 velopment area.

19 (B) PROGRAM OVERSIGHT.—The local

20 workforce development board, in partnership

21 with the chief elected official or officials in the

22 workforce development area, shall conduct over23 sight of the workforce development programs

24 listed in subparagraph (A), and of the inte-
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1 grated career center system established under

2 this title.

3 (4) ADMINISTRATION.—

4 (A) FISCAL AGENT.—

5 (i) The local workforce development

6 board may receive and disburse funds

7 made available for carrying out programs

8 authorized under chapter 2 of title II, title

9 III, and title I of the Rehabilitation Act of

10 1973 of this Act, or the local workforce de11 velopment board may designate a fiscal

12 agent (which may include the State

13 through a mutual agreement between the

14 local board and the State), for the purpose

15 of disbursement of funds to career centers

16 and other service providers, as designated

17 by the local workforce development board.

18 (ii) The Board may employ its own

19 staff, independent of local programs and

20 service providers, and may solicit or accept

21 grants and contributions from sources

22 other than from this Act.

23 (B) LIMITATION.—The workforce develop24 ment board, or employees of such board, may

25 not operate programs established under this
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1 Act. The Governor is authorized to prohibit the

2 employees of agencies providing staff support to

3 such local workforce development boards from

4 providing workforce development services to in5 dividuals served through the use of funds au6 thorized under this Act, and under title I of the

7 Rehabilitation Act of 1973.

8 (C) CONFLICT OF INTEREST.—A member

9 of a workforce development board may not—

10 (i) discuss or participate in board con11 sideration; or

12 (ii) cast a vote;

13 regarding the provision of services by such

14 member (or by an organization that such mem15 ber represents) or regarding any matter that

16 would provide direct financial benefit to such

17 member. The Governor may enforce more rigor18 ous conflict of interest standards, as determined

19 appropriate.

20 (D) INDEPENDENT AUTHORITY.—

21 (i) The Board shall elect its own

22 chairperson from among the members of

23 the board.

24 (ii) The board may adopt bylaws and

25 other operating procedures as consistent
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1 with the purposes of this Act, and with the

2 policies established in the State workforce

3 development and literacy plan.

4 (5) OTHER.—The Governor may require local

5 workforce development boards to carry out such

6 other duties as determined to be appropriate by the

7 Governor and the individuals and entities described

8 in section 103, through the collaborative process de9 scribed in the State plan.

10 SEC. 107. ESTABLISHMENT OF INTEGRATED CAREER CEN11 TER SYSTEMS.

12 (a) IN GENERAL.—The Governor of a State that de13 sires to receive a grant under one or more of the programs

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

15 workforce development board establish or designate an in16 tegrated career center system in the workforce develop17 ment area of such board, consistent with criteria estab18 lished under subsection (b).

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

20 collaborative process described under section 103, is au21 thorized to establish statewide criteria for use by local

22 workforce development boards in the designation or estab23 lishment of integrated career center systems to ensure

24 that the most effective and efficient service providers are
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1 chosen, consistent with the requirements prescribed under

2 subsection (c).

3 (c) INTEGRATED CAREER CENTER SYSTEM RE4 QUIREMENTS.—At a minimum, integrated career center

5 systems shall include—

6 (1) common intake;

7 (2) preliminary assessment;

8 (3) integrated job search assistance;

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

10 the Governor, unified and linked computer systems,

11 including the availability of labor market informa12 tion as described under title II of the Wagner-Peyser

13 Act, as added by section 132 of this Act, and link14 ages through uniform management information sys15 tems; and

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

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

18 which provides comprehensive and fully integrated

19 workforce development services to any individual

20 seeking such services.

21 Local workforce development areas are encouraged to es22 tablish a network of comprehensive and fully-integrated

23 co-located career centers to provide the services described

24 in subsection (f), supplemented with multiple affiliated

25 sites or satellites that provide one or more of such services
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1 and are linked through electronic and technological access

2 points. Such affiliated sites may include entities des3 ignated as having a specialization in addressing special

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

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

6 labor market which is compiled pursuant to title II of the

7 Wagner-Peyser Act, as added by section 132 of this Act,

8 shall be available, to the extent practicable, through inte9 grated electronic networks, at all integrated career centers

10 and affiliated sites.

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

12 consortium of entities located in the workforce develop13 ment area may be designated by the local workforce devel14 opment board to operate an integrated career center or

15 to participate in an integrated career center system. Such

16 entities may include the following:

17 (1) Institutions of higher education.

18 (2) Area vocational education schools.

19 (3) Local employment service offices, estab20 lished under the Wagner-Peyser Act.

21 (4) Private nonprofit organizations, (including

22 community-based organizations).

23 (5) Private for-profit entities.

24 (6) Agencies of local governments.
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1 (7) Other interested organizations and entities

2 of demonstrated effectiveness, including local cham3 bers of commerce and other business organizations,

4 consistent with State criteria established pursuant to

5 subsection (b).

6 (f) DUTIES.—Each integrated career center system

7 shall, to the extent practicable as determined by the Gov8 ernor, carry out the following duties:

9 (1) PROVISION OF CORE SERVICES.—An inte10 grated career center system shall make available the

11 following information and core services to individuals

12 on a universal and nondiscriminatory basis, with

13 reasonable accommodations to address the needs of

14 individuals with disabilities, in the workforce devel15 opment area in which such center is located:

16 (A) Outreach and intake for services pro17 vided under chapter 2 of title II, title III, sub18 title A of title IV, and title I of the Rehabilita19 tion Act of 1973.

20 (B) A preliminary assessment of the skill

21 levels and the need for services of the individual

22 for programs under chapter 2 of title II, title

23 III, subtitle A of title IV, and title I of the Re24 habilitation Act of 1973 of individuals, which

25 may include such factors as basic skills, occupa-
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1 tional skills, career development skills, prior

2 work experience, employability, interests, apti3 tudes, vocational rehabilitation needs, and sup4 portive service needs.

5 (C) Labor market information relating to

6 local and State, and if appropriate, to regional

7 or national, occupations in demand and skill re8 quirements for such occupations, including job

9 listings for the local labor market.

10 (D) Information relating to youth services,

11 including information on at-risk youth develop12 ment and career preparation programs author13 ized under title II, on vocational education and

14 school-to-work opportunities, and on youth ap15 prenticeship opportunities.

16 (E) Career counseling and career planning

17 based on a preliminary assessment of the indi18 vidual.

19 (F) Job search assistance.

20 (G) Information related to vocational reha21 bilitation services, as provided for in title I of

22 the Rehabilitation Act of 1973.

23 (H) Information relating to federally fund24 ed education and job training programs (includ25 ing registered apprenticeships), and student aid
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1 programs, including the eligibility requirements

2 of and services provided by such programs.

3 (I) Information on, and assistance in

4 accessing referral to additional services through

5 programs providing adult education and literacy

6 services, vocational rehabilitation, youth and

7 adult workforce preparation and development,

8 and supportive services, including those pro9 grams authorized in titles II through IV, title

10 I of the Rehabilitation Act of 1973, available in

11 the workforce development area.

12 (J) Information on the extent to which the

13 services provided under titles II and III, sub14 title A of title IV, and title I of the Rehabilita15 tion Act of 1973, meet or exceed the expected

16 levels of performance described in the State and

17 local plans, and the performance-based informa18 tion provided by the State to local workforce de19 velopment boards on certified providers of edu20 cation and training, as required under section

21 108(d)(3).

22 (K) Acceptance of applications for unem23 ployment compensation.

24 (L) Other appropriate activities to assist

25 individuals into employment.
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1 (2) DISTRIBUTION OF CAREER GRANTS.—A

2 center or an affiliated site may serve as the point of

3 distribution of career grants for education, training,

4 and vocational rehabilitation services to eligible indi5 viduals in accordance with section 108.

6 (3) SPECIAL ARRANGEMENTS.—For the pur7 pose of providing core services to individuals with se8 vere disabilities in the most effective and efficient

9 manner possible, the integrated career center system

10 may arrange to have such core services provided to

11 an individual by a certified provider or the State ei12 ther on a contract basis or through the use of career

13 grants.

14 (g) ADDITIONAL SERVICES.—Integrated career cen15 ter systems, may provide customized workforce develop16 ment services to employers on a fee-for-service basis, as

17 determined by the local workforce development board.

18 (h) ALTERNATIVE STATE STRATEGY.—Through the

19 collaborative process described in section 103, the Gov20 ernor has the authority to develop alternative strategies

21 to the integrated career center system, which are designed

22 to accomplish the full integration of workforce develop23 ment programs. These alternative strategies shall be de24 scribed in a proposal to the Secretaries of Education and

25 Labor for joint review and approval or disapproval not
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1 later than 60 days after the date of receipt of such pro2 posal.

3 SEC. 108. IDENTIFICATION OF ELIGIBLE EDUCATION,

4 TRAINING, AND VOCATIONAL REHABILITA5 TION SERVICE PROVIDERS.

6 (a) ELIGIBILITY REQUIREMENTS.—A program of7 fered by a provider of education and training services shall

8 be eligible to receive funds under title III, and title I of

9 the Rehabilitation Act of 1973 through the receipt of ca10 reer grants, or through contract, if such program and pro11 vider—

12 (1) is either—

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

14 Higher Education Act of 1965, or

15 (B) determined to be eligible under the

16 procedures described in subsection (b); and

17 (2) provides the performance-based information

18 required pursuant to subsection (c), except that pro19 viders eligible under subparagraph (A) only have to

20 provide information for programs other than pro21 grams leading to a degree.

22 (b) ALTERNATIVE ELIGIBILITY PROCEDURE.—

23 (1) IN GENERAL.—The Governor shall establish

24 an alternative eligibility procedure for providers of

25 education, training, and vocational rehabilitation
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1 services (which may include private sector, for profit

2 and nonprofit providers of such services) in any

3 State desiring to receive funds under title III of this

4 Act and title I of the Rehabilitation Act of 1973, but

5 that are not eligible to participate in title IV of the

6 Higher Education Act of 1965. Such procedure shall

7 establish minimum acceptable levels of performance

8 for such providers, and be based on guidelines devel9 oped by the Secretaries of Labor and Education.

10 The Governor may utilize such criteria to certify

11 service providers as having the ability to meet occu12 pational skill standards promoted by the National

13 Skill Standards Board, or to meet, high, industry14 recognized standards that result in a portable skill

15 certificate in the subject, occupation, or industry for

16 which training is provided, except where such stand17 ards are not appropriate for the services rendered.

18 The Governor shall utilize the local workforce devel19 opment boards, for the identification of eligible

20 qualified providers of education, training, and voca21 tional rehabilitation services. During a transition pe22 riod, not to exceed 2 years, identification of eligible

23 programs and providers under this subsection may

24 be based on the performance of such programs and

25 providers under the Job Training Partnership Act,
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1 the Rehabilitation Act of 1973, or other objective

2 measures of previous performance, such as employer

3 evaluations.

4 (2) Notwithstanding paragraph (1), if the par5 ticipation of an institution of higher education in

6 any of the programs under such title of such Act is

7 terminated, such institution shall not be eligible to

8 receive funds under this Act for a period of not less

9 than two years.

10 (c) PERFORMANCE-BASED INFORMATION.—The

11 State shall identify performance-based information that is

12 to be submitted by providers of services for programs to

13 be eligible under this section. Such information may in14 clude information, relating to—

15 (1) the percentage of students completing the

16 programs conducted by the provider;

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

18 programs conducted by the provider;

19 (3) the percentage of graduates of the programs

20 meeting industry-recognized skill standards and cer21 tification requirements that are at least as challeng22 ing as skill standards endorsed by the National Skill

23 Standards Board, once such standards are available;

24 (4) measures of program effectiveness such as

25 the rates of placement and retention in employment,
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1 and the earnings of graduates of programs con2 ducted by the provider, employer evaluations of pro3 vider services, and adherence to accepted industry

4 quality standards (where available) by such provid5 ers;

6 (5) the percentage of students who obtained

7 employment in an occupation related to the program

8 conducted by the provider;

9 (6) the warranties or guarantees provided by

10 such provider relating to the skill levels or employ11 ment to be attained by students;

12 (7) other information for providers of services

13 under title I of the Rehabilitation Act of 1973 that

14 reflects the priority of serving individuals with severe

15 disabilities; and

16 (8) the percentage of students who, as a result

17 of participation in the program demonstrate signifi18 cant gains in literacy and basic skills.

19 (d) ADMINISTRATION.—

20 (1) STATE AGENCY.—The Governor is author21 ized to designate a State agency to collect, verify,

22 and disseminate the performance-based information

23 submitted pursuant to subsection (c).

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

25 training services that desires to be eligible to receive
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1 funds under this title shall submit the information

2 required under subsection (c) to the State agency

3 designated under paragraph (1) of this subsection at

4 such time and in such form as such State agency

5 may require.

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

7 agency shall compile a list of eligible programs and

8 providers, accompanied by the performance-based in9 formation submitted, and disseminate such list and

10 information to the local workforce development

11 boards and integrated career center systems within

12 the State.

13 (4) ACCURACY OF INFORMATION.—

14 (A) IN GENERAL.—If the State agency de15 termines that information concerning a provider

16 is inaccurate, such provider shall be disqualified

17 from receiving funds under this title for a pe18 riod of not less than two years, unless such pro19 vider can demonstrate to the satisfaction of the

20 Governor or his or her designee, that the infor21 mation was provided in good faith.

22 (B) APPEAL.—The Governor shall estab23 lish a procedure for a service provider to appeal

24 a determination by a State agency that results

25 in a disqualification under subparagraph (A).
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1 Such procedure shall provide an opportunity for

2 a hearing and prescribe appropriate time limits

3 to ensure prompt resolution of the appeal.

4 (5) ASSISTANCE IN DEVELOPING INFORMA5 TION.—The State agency established pursuant to

6 paragraph (1) may provide technical assistance to

7 education, training, and vocational rehabilitation

8 providers in developing the information required

9 under subsection (b). Such assistance may include

10 facilitating the utilization of State administrative

11 records, such as unemployment compensation wage

12 records, and other appropriate coordination activi13 ties.

14 (e) ON-THE-JOB TRAINING EXCEPTION.—

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

16 training are not subject to the requirements of sub17 sections (a), (b), (c), and (d).

18 (2) COLLECTION AND DISSEMINATION OF IN19 FORMATION.—The Workforce Development Board

20 shall collect such performance-based information

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

22 may require, and disseminate such information to

23 the local integrated career center systems.

24 (f) RULE OF CONSTRUCTION REGARDING STATE AS

25 PROVIDER OF SERVICES.—This section does not prohibit
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1 a State from being a provider of education and training

2 services under title III, or under title I of the Rehabilita3 tion Act of 1973, subject to the State meeting the require4 ments of this section for serving as such a provider.

5 SEC. 109. MANAGEMENT INFORMATION SYSTEMS.

6 (a) IN GENERAL.—Each State is authorized to use

7 a portion of the funds it receives under this Act to design

8 a unified management information system that is in ac9 cordance with guidelines established jointly by the Sec10 retaries in consultation with the Governors.

11 (b) REQUIREMENTS.—Each unified management in12 formation system shall, to the extent practicable as deter13 mined by the Governor—

14 (1) be utilized for federally required fiscal re15 porting and monitoring for each of the programs au16 thorized under this Act;

17 (2) be used by all agencies involved in

18 workforce development activities, including inte19 grated career center systems which shall have the

20 capability to track the overall public investments

21 within the State and workforce development areas,

22 and to inform policymakers as to the results being

23 achieved and the demographic characteristics of the

24 individuals served through that investment;
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1 (3) contain a common structure of financial re2 porting requirements, fiscal systems and monitoring

3 for all workforce development expenditures included

4 in the workforce development system that shall uti5 lize common data elements and the definitions in6 cluded in section 5;

7 (4) support local efforts to establish workforce

8 development systems, including intake and eligibility

9 determination for all services; and

10 (5) contain data on the demographic character11 istics on the participants served by programs author12 ized under this Act, which shall be collected, pro13 duced, and published by the Secretaries.

14 (c) PRIVACY.—Nothing in this Act shall violate the

15 provisions of the Family Education Rights and Privacy

16 Act under section 444 of the General Education Provi17 sions Act and the privacy and confidentiality provisions

18 under section 22(b) of title II of the Wagner Peyser Act

19 as amended by this Act.

20 SEC. 110. PERFORMANCE ACCOUNTABILITY SYSTEM.

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

22 of performance and to ensure an appropriate return on

23 the Nation’s investment in the workforce development and

24 literacy system, each State receiving funds under this Act

25 shall develop, or have developed, a statewide performance
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1 accountability system in accordance with the provisions of

2 this section.

3 (b) INDICATORS OF PERFORMANCE.—

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

5 under this Act shall identify indicators of perform6 ance for each of the programs established under ti7 tles II through IV of this Act and title I of the Re8 habilitation Act of 1973, consistent with State goals

9 as described in the State plan in accordance with

10 section 104. Such indicators shall, at a minimum,

11 include the core indicators described in subsection

12 (f), and be expressed in an objective, quantifiable,

13 and measurable form. Such indicators may also in14 clude post-program surveys measuring the satisfac15 tion of both employers and program participants.

16 (2) TECHNICAL DEFINITIONS OF CORE INDICA17 TORS.—In order to ensure nationwide comparability

18 of performance data, the Secretary of Labor and the

19 Secretary of Education, in collaboration with the

20 States and with representatives of business and in21 dustry, employees, educational agencies, service pro22 viders, participants, parents and other interested

23 parties, shall promulgate technical definitions of

24 each of the core indicators described in subsection
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1 (f), to be used under this Act in measuring perform2 ance.

3 (c) EXPECTED LEVELS OF PERFORMANCE.—

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

5 the level of performance, consistent with State goals

6 described under section 104, that is expected for

7 local workforce development areas and other applica8 ble local administrative entities under this Act. In

9 determining such levels, the State shall take into ac10 count the challenging levels identified under para11 graph (2), and initially develop baseline levels of per12 formance upon which the State must demonstrate

13 continuous improvement.

14 (B) The Governor, through the collaborative

15 process, may adjust the expected level of perform16 ance with respect to each local area taking into ac17 count specific economic, demographic, and geo18 graphic factors, and the characteristics of the popu19 lation to be served.

20 (2) CHALLENGING LEVELS OF PERFORM21 ANCE.—In order to encourage high levels of per22 formance and advance the Nation’s competitiveness

23 in the global economy, the Secretary of Labor and

24 the Secretary of Education, in collaboration with the

25 States and with representatives of business and in-
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1 dustry, employees, educational agencies, service pro2 viders, participants, parents and other interested

3 parties, shall identify challenging levels of perform4 ance with respect to the core indicators described in

5 subsection (f). Where applicable, such challenging

6 levels of performance shall reflect industry-recog7 nized skill standards.

8 (d) REPORT ON PERFORMANCE.—

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

10 Secretary of Labor and the Secretary of Education,

11 the levels of performance achieved by local workforce

12 development areas and other applicable local admin13 istrative entities with respect to the indicators iden14 tified pursuant to subsection (b)(1) for each pro15 gram year. The Secretaries shall make such infor16 mation available to the general public through publi17 cation and other appropriate methods, and shall dis18 seminate State-by-State comparisons, and compari19 sons with other industrialized nations (where appro20 priate).

21 (2) REPORTING OPTIONS.—In the collection

22 and reporting of such data, States are encouraged to

23 utilize administrative reporting data on quarterly

24 earnings, establishment and industry affiliation, and
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1 geographic location of employment, such as unem2 ployment insurance wage-data records.

3 (e) CONSEQUENCES FOR POOR PERFORMANCE.—

4 (1) CRITERIA.—The Governor, through the col5 laborative process, is authorized to establish criteria

6 for determining whether local workforce development

7 areas and other applicable local administrative enti8 ties have failed to meet expected levels of perform9 ance with respect to programs under this Act.

10 (2) CONSEQUENCES FOR POOR PERFORM11 ANCE.—

12 (A) STATE CONSEQUENCES.—If a State

13 fails to meet expected levels of performance for

14 a program for any program year as established

15 pursuant to subsection (a), the Secretary of

16 Education or the Secretary of Labor, as appro17 priate to the particular program, may provide

18 technical assistance, including assistance in the

19 development of a performance improvement

20 plan. If such failure continues for a second con21 secutive year, the appropriate Secretary may re22 duce by not more than 5 percent, the amount

23 of the grant that would (in the absence of this

24 paragraph) be payable to the State under such

25 program for the immediately succeeding pro-
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1 gram year. Such penalty shall be based on the

2 degree of failure to meet expected levels of per3 formance.

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

5 workforce development area, or other applicable

6 local administrative entity, fails to meet ex7 pected levels of performance for a program for

8 any program year under the criteria established

9 in paragraph (1), the Governor, through the

10 collaborative process, may provide technical as11 sistance, including the development of a per12 formance improvement plan.

13 (ii) If such failure continues for a second

14 consecutive year, the Governor may take correc15 tive actions, such as the withholding of funds,

16 the redesignation of a local administrative en17 tity, or such other actions as the Governor,

18 through the collaborative process, determines

19 are appropriate, consistent with State law, sec20 tion 104(c)(3) of this Act, and the requirements

21 of this Act.

22 (f) CORE INDICATORS OF PERFORMANCE.—

23 (1) COMMON CORE INDICATORS FOR ADULTS.—

24 In addition to the core indicators of performance de25 scribed in paragraph (2), common core indicators of
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1 performance for programs conducted under titles III

2 and IV of this Act, and under title I of the Voca3 tional Rehabilitation Act of 1973 shall be weighted

4 and applied to each of the individual programs, ac5 cording to the purposes of such titles, and include

6 measures of—

7 (A) placement in unsubsidized employ8 ment;

9 (B) retention in unsubsidized employment

10 for not less than 6 months and for not less than

11 12 months, respectively;

12 (C) increases in earnings, or in earnings in

13 combination with employer-assisted benefits;

14 (D) attainment of industry-recognized oc15 cupational skills, including basic workplace

16 competencies and industry-recognized skill

17 standards, which may include the acquisition of

18 a skill certificate in the occupation for which

19 the individual has been prepared;

20 (E) attainment of a high school diploma, a

21 general equivalency diploma, or a certificate of

22 completion of a program authorized under the

23 Rehabilitation Act of 1973; and

24 (F) such other measures of performance

25 that the State may wish to collect.
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1 (2) ADDITIONAL CORE INDICATORS FOR

2 ADULTS.—

3 (A) ADULT EMPLOYMENT AND TRAINING

4 PROGRAMS.—In addition to the common core

5 indicators described in paragraph (1), the core

6 indicators of performance for programs con7 ducted under title III shall include measures of

8 the success of individuals with barriers to em9 ployment, including dislocated workers, eco10 nomically disadvantaged individuals, older

11 workers, individuals with disabilities, displaced

12 homemakers, veterans, and individuals who are

13 basic skills deficient, in achieving performance

14 goals established pursuant to this Act.

15 (B) ADULT EDUCATION AND FAMILY LIT16 ERACY PROGRAMS.—In addition to the common

17 core indicators described in paragraph (1), the

18 core indicators of performance for programs

19 conducted under title IV shall include measures

20 of—

21 (i) the number of individuals who, as

22 a result of participation in programs fund23 ed under this Act, demonstrate significant

24 gains in literacy skills; and
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1 (ii) such other measures of perform2 ance that the State may wish to collect, in3 cluding measures of the success of family

4 literacy programs, increased English lan5 guage skills, and increased community in6 volvement.

7 (C) PROGRAMS ESTABLISHED UNDER

8 TITLE I OF THE REHABILITATION ACT OF

9 1973.—In addition to the common core indica10 tors described in paragraph (1), the core indica11 tors of performance for programs conducted

12 under title I of the Rehabilitation Act of 1973

13 shall include measures of the success of individ14 uals with severe disabilities, including those in15 dividuals determined to have a disability under

16 title II or title XVI of the Social Security Act,

17 in achieving performance goals established pur18 suant to this Act.

19 (3) CORE INDICATORS FOR YOUTH DEVELOP20 MENT AND CAREER PREPARATION PROGRAMS.—The

21 core indicators of performance for programs con22 ducted under title II shall include measures of—

23 (A) attainment of challenging State aca24 demic standards;
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1 (B) attainment of a high school diploma or

2 a general equivalency diploma;

3 (C) attainment of industry-recognized oc4 cupational skills, including basic workplace

5 competencies and industry-recognized skill

6 standards, which may include the acquisition of

7 a skill certificate in the occupation for which

8 the individual has been prepared; if such skill

9 certificate is acquired in addition to or in com10 bination with a high school diploma or general

11 equivalency diploma;

12 (D) reduction in school dropout rates;

13 (E) positive results such as placement in

14 postsecondary education or advanced training,

15 military service, employment, or registered ap16 prenticeships;

17 (F) the success of individuals described

18 under section 201(12) in achieving performance

19 goals established pursuant to this Act, including

20 placement in nontraditional training and em21 ployment; and

22 (G) such other measures of performance

23 that the State may wish to collect.
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1 SEC. 111. LIMITATION ON FEDERAL REGULATIONS.

2 The Secretary of the Department of Labor and the

3 Secretary of the Department of Education shall issue reg4 ulations under this Act only to the extent that such regula5 tions are necessary to ensure that there is compliance with

6 the specific requirements of this Act.

7 SEC. 112. GENERAL PROVISION.

8 Nothing in this Act shall mandate that any individ9 ual, particularly youth served under title II of this Act,

10 be required to choose a specific career path or major or

11 to meet federally funded or endorsed industry-recognized

12 skill standards or attain federally funded or endorsed skill

13 certificates.

14 SEC. 113. LIABILITY.

15 Expenditures that are disallowed by the Secretary of

16 Labor or the Secretary of Education, as the case may be

17 (except in the case of fraud, embezzlement, or other crimi18 nal activities), under chapter 2 of title II, title III, or

19 under title I of the Rehabilitation Act of 1973, may be

20 repaid from funds allocated under such chapter or title

21 for which such disallowance occurs, in subsequent pro22 gram years or fiscal years, as appropriate, after the year

23 in which such disallowance occurred. The amount of funds

24 repaid should be equal to the amount of funds disallowed.
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1 Subtitle B—Amendments to

2 Wagner-Peyser Act

3 SEC. 131. GENERAL PROGRAM REQUIREMENTS.

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

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

6 U.S.C. 49a) is amended—

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

8 Partnership Act’’ and inserting ‘‘Consolidated and

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

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

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

13 board’ means a local workforce development board

14 established under title I of the Consolidated and Re15 formed Education, Employment, and Rehabilitation

16 Systems Act;’’;

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

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

19 area’ means a local workforce development area es20 tablished under title I of the Consolidated and Re21 formed Education, Employment, and Rehabilitation

22 Systems Act;’’;

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

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

2 paragraphs:

3 ‘‘(6) the term ‘public employment office’ means

4 an office which provides employment services to the

5 general public as part of an integrated career center

6 system; and

7 ‘‘(7) the term ‘integrated career center system’

8 means an integrated career center system estab9 lished under title I of the Consolidated and Re10 formed Education, Employment, and Rehabilitation

11 Systems Act.’’.

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

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

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

15 II of this Act—

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

17 of a nationwide system of labor exchange services for

18 the general public, which, to the extent practicable,

19 shall be done through the private sector;

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

21 standards, benchmarks, and continuous improve22 ment models for such nationwide system which en23 sures private sector satisfaction and meets the de24 mands of jobseekers; and
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1 ‘‘(3) ensure the continued services for individ2 uals receiving unemployment compensation.’’.

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

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

6 Governor of a State shall, through the collaborative proc7 ess described in title I of the Consolidated and Reformed

8 Education, Employment, and Rehabilitation Systems

9 Act’’.

10 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

11 5 of such Act (29 U.S.C. 49d) is amended by inserting

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

13 less than 25 percent shall be for carrying out both section

14 14 and title II of this Act’’.

15 (e) USE OF FUNDS UNDER THIS ACT.—Section

16 7(c)(2) of such Act (29 U.S.C. 49f(c)(2)) is amended by

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

18 that follows and inserting ‘‘the Consolidated and Re19 formed Education, Employment, and Rehabilitation Sys20 tems Act.’’.

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

22 49g) is amended—

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

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

25 this Act shall submit to the Secretary, as part of the State
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1 workforce development and literacy plan authorized under

2 title I of the Consolidated and Reformed Education, Em3 ployment, and Rehabilitation Systems Act, detailed plans

4 for carrying out the provisions of this Act within such

5 State.’’;

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

7 (3) by redesignating subsection (d) as sub8 section (b).

9 (g) ELIMINATION OF FEDERAL ADVISORY COUN10 CIL.—Section 11 of such Act (29 U.S.C. 49j) is hereby

11 repealed.

12 (h) CONFORMING AMENDMENTS.—

13 (1) Such Act is amended by inserting after sec14 tion 2 the following new heading:

15 ‘‘TITLE I—GENERAL PROGRAM

16 REQUIREMENTS’’.

17 (2) Section 4 of such Act is amended by strik18 ing ‘‘United States Employment Service’’ and insert19 ing ‘‘Secretary of Labor’’.

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

21 striking ‘‘private industry council’’ and inserting

22 ‘‘local workforce development board’’.

23 (4) Section 7(d) of such Act is amended—
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1 (A) by striking ‘‘United States Employ2 ment Service’’ and inserting ‘‘Secretary of

3 Labor’’; and

4 (B) by striking ‘‘Job Training Partnership

5 Act’’ and inserting ‘‘Consolidated and Reformed

6 Education, Employment, and Rehabilitation

7 Systems Act’’.

8 (5) Section 12 of such Act is amended by strik9 ing ‘‘The Director, with the approval of the Sec10 retary of Labor,’’ and inserting ‘‘The Secretary of

11 Labor’’.

12 SEC. 132. LABOR MARKET INFORMATION.

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

14 ‘‘Wagner-Peyser Act’’; 29 U.S.C. 49), as amended by sec15 tion 131, is further amended by adding at the end the

16 following new title:

17 ‘‘TITLE II—LABOR MARKET

18 INFORMATION

19 ‘‘SEC. 21. PURPOSE.

20 ‘‘The purpose of this title is to ensure a comprehen21 sive and coordinated system of labor market information

22 which will provide locally based, accurate, up-to-date, eas23 ily accessible, and user friendly labor market information

24 through a cooperative Federal, State, and local governance
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1 structure which includes partnerships with the private sec2 tor at all levels.

3 ‘‘SEC. 22. SYSTEM CONTENT.

4 ‘‘(a) IN GENERAL.—The Secretary of Labor, in ac5 cordance with the provisions of this title, shall oversee the

6 development, maintenance, and continuous improvement

7 of a nationwide system of labor market information using

8 statistically valid data, which include—

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

10 programs and data from administrative reporting

11 systems, which, taken together, enumerate, estimate,

12 and project the supply and demand for labor at Fed13 eral, State, and local levels in a timely manner, in14 cluding data, which may be aggregated by demo15 graphic characteristics, on—

16 ‘‘(A) the socioeconomic characteristics, and

17 current employment status of the population,

18 including self-employed, part-time, and seasonal

19 workers, and individuals with severe disabilities,

20 as such data are available from the Bureau of

21 Census and other sources;

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

23 requirements, skills, wages, benefits, working

24 conditions, and industrial distribution of occu25 pations, as well as current and projected em-
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1 ployment opportunities and trends by industry

2 and occupation;

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

4 skills, skill levels, and occupations of the popu5 lation aggregates, as such data area are avail6 able from the Bureau of Census and other

7 sources;

8 ‘‘(D) information (such as unemployment

9 insurance wage data records) maintained in a

10 longitudinal manner on the quarterly earnings,

11 establishment and industry affiliation, and geo12 graphic location of employment; and

13 ‘‘(E) the incidence, industrial and geo14 graphical location, and number of workers dis15 placed by permanent layoffs and plant closings;

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

17 information on—

18 ‘‘(A) job openings, locations, hiring re19 quirements, and application procedures, as well

20 as profiles of employers in the local labor mar21 ket describing the nature of work performed,

22 employment requirements, wages, benefits, and

23 hiring patterns as such information is volun24 teered by employers;
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1 ‘‘(B) aggregate data on job seekers, includ2 ing their education and training, skills, skill lev3 els, employment experience, and employment

4 goals; and

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

6 job placement programs, and vocational reha7 bilitation programs (where appropriate), includ8 ing—

9 ‘‘(i) program performance information

10 as required by this Act, such as summary

11 data on program completion, acquisition of

12 industry-recognized skill standards, job

13 placement, earnings, and the level of satis14 faction of the participants and their em15 ployers; and

16 ‘‘(ii) descriptive information on pro17 grams, such as eligibility requirements,

18 costs, financial support, or other support19 ive services, and other appropriate infor20 mation which may be available with these

21 courses and programs;

22 ‘‘(3) technical standards for data and informa23 tion that will—

24 ‘‘(A) as a minimum guarantor of data use25 fulness and quality, ensure compatibility and
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1 additivity of data and information to enable

2 comparisons among localities and States;

3 ‘‘(B) support standardization and aggrega4 tion of data and information from the adminis5 trative reporting systems of employment-related

6 programs; and

7 ‘‘(C) include—

8 ‘‘(i) classification and coding systems

9 for industries, occupations, skills, pro10 grams, and courses;

11 ‘‘(ii) nationally standardized defini12 tions of terms;

13 ‘‘(iii) a common system for designat14 ing geographic areas;

15 ‘‘(iv) quality control mechanisms for

16 data collection and analysis; and

17 ‘‘(v) common schedules for data col18 lection and dissemination;

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

20 including—

21 ‘‘(A) Federal, State, and local economic

22 policymaking;

23 ‘‘(B) the implementation of Federal poli24 cies, including the allocation of Federal funds
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1 to States and localities and the facilitation of

2 job search and hiring in local labor markets;

3 ‘‘(C) Federal, State, and local program

4 planning and evaluation; and

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

6 ‘‘(5) dissemination mechanisms for data and

7 analysis, including mechanisms which may be stand8 ardized among the States and technical standards in

9 the design of automated databases, and the design

10 of user interfaces and communications protocols;

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

12 and localities in the development, maintenance, and

13 utilization of data, analysis, and dissemination

14 mechanisms, including assistance in adopting and

15 utilizing automated systems and improving the ac16 cess, through electronic and other means, of youth,

17 adults, and employers to labor market information

18 for localities, States, and the Nation;

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

20 which may be carried out by States and other public

21 or private entities, on ways to improve the products

22 and processes authorized in this title; and

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

24 allow for the continuous monitoring of the progress
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1 of the labor market information system at national,

2 State, and local levels.

3 ‘‘(b) INFORMATION TO BE CONFIDENTIAL.—

4 ‘‘(1) IN GENERAL.—No officer or employee of

5 the Federal Government or agent of the Federal

6 Government may—

7 ‘‘(A) use the information furnished under

8 the provisions of this title for any purpose other

9 than the statistical purposes for which it is sup10 plied;

11 ‘‘(B) make any publication whereby the

12 data contained in the information so furnished

13 under this title can be used to identify any indi14 vidual; or

15 ‘‘(C) permit anyone other than the sworn

16 officers and employees of any Federal depart17 ment or agency to examine the individual re18 ports.

19 ‘‘(2) IMMUNITY FROM LEGAL PROCESS.—Any

20 information which is collected and retained for pur21 poses under this title shall be immune from the legal

22 process and shall not, without the consent of the in23 dividual concerned, be admitted as evidence or used

24 for any purpose in any action, suit, or other judicial

25 or administrative proceeding.
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1 ‘‘SEC. 23. FEDERAL RESPONSIBILITIES.

2 ‘‘(a) IN GENERAL.—The Nation’s labor market infor3 mation system shall be planned, administered, overseen,

4 and evaluated by a cooperative governance structure in5 volving the Federal Government, States, and local entities.

6 ‘‘(b) DUTIES.—The Secretary, with respect to data

7 collection, analysis, and dissemination of labor market in8 formation, shall carry out the following duties:

9 ‘‘(1) Ensure that all statistical and administra10 tive data collection activities within the Department

11 of Labor, including the Employment and Training

12 Administration, Veterans’ Employment and Training

13 Service, Employment Standards Administration, and

14 the Occupational Health and Safety Administration,

15 are consistent with those of the Bureau of Labor

16 Statistics.

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

18 agencies such as the Employment and Training Ad19 ministration to work with the Bureau of Labor Sta20 tistics in the collection, analysis and, particularly, in

21 the dissemination of labor market information, and

22 in the provision of training and technical assistance

23 to users of information, including the States, em24 ployers, youth, and adults.

25 ‘‘(3) In cooperation with other Federal agen26 cies, including the Department of Commerce, De-
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1 partment of Defense, Department of the Treasury,

2 Department of Education, Department of Health

3 and Human Services, Department of Agriculture,

4 Department of Veterans’ Affairs, and the Office of

5 Management and Budget, establish and maintain

6 mechanisms for ensuring complementarity and non7 duplication in the development and operation of sta8 tistical and administrative data collection activities,

9 in order to ensure a comprehensive labor market in10 formation system.

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

12 Federal agencies, particularly the National Center

13 for Education Statistics and the Division of Adult

14 and Vocational Education, and the Rehabilitation

15 Services Administration of the Department of Edu16 cation, the Veterans’ Employment and Training

17 Service of the Department of Labor and the Depart18 ment of Veterans’ Affairs with respect to vocational

19 rehabilitation programs in the design and provision

20 of standardized information to the States to support

21 section 22(2), and in the dissemination of labor mar22 ket information.

23 ‘‘(5) Establish confidentiality standards for the

24 labor market information system at Federal, State,

25 and local levels, including such provisions as may be
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1 necessary, to be taken in coordination with the

2 States, to ensure that privacy and confidentiality

3 protections are guaranteed with respect to individ4 uals and firm data.

5 ‘‘(c) ADDITIONAL DUTIES.—The Secretary, in col6 laboration with the Bureau of Labor Statistics, with the

7 assistance of other agencies of the Department where ap8 propriate, shall—

9 ‘‘(1) establish and maintain, with the coopera10 tion of the States, elements of the system described

11 in sections 22(a)(1) and 22(a)(3);

12 ‘‘(2) develop and promulgate standards, defini13 tions, formats, collection methodologies, and other

14 necessary system elements for the use of the States

15 in their assembling and presentation of the employ16 ment information specified in section 22(a)(2);

17 ‘‘(3) eliminate gaps and duplication in statis18 tical undertakings, with the systemization of wage

19 surveys as an early priority;

20 ‘‘(4) recommend any needed improvements in

21 administrative reporting systems to support the de22 velopment of labor market information from their

23 data; and

24 ‘‘(5) ensure that—
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1 ‘‘(A) data are sufficiently timely relevant

2 to employers and other users, and locally de3 tailed for uses including those specified in sec4 tion 22(a)(4);

5 ‘‘(B) administrative records are standard6 ized to facilitate the aggregation of data from

7 local to State and national levels and to support

8 the creation of new statistical series from pro9 gram records; and

10 ‘‘(C) paperwork and reporting require11 ments on employers and individuals are re12 duced.

13 ‘‘SEC. 24. ANNUAL PLAN.

14 ‘‘(a) IN GENERAL.—The Secretary of Labor, in col15 laboration with the Bureau of Labor Statistics, and with

16 assistance of other appropriate Federal agencies, shall

17 prepare an annual plan to be the operational mechanism

18 for achieving a cooperative Federal/State governance

19 structure for labor market information and provide the

20 written justification for the Department of Labor’s budget

21 request to Congress by describing the activities and prior22 ities of the Bureau of Labor Statistics, other offices within

23 the Department of Labor, and other Federal agencies with

24 regard to data collection, analysis, and dissemination of

25 labor market information for fiscal years succeeding the
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1 fiscal year in which the plan is developed and shall in2 clude—

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

4 needs and priorities, including the identification of

5 new employment issues and the attendant emergence

6 of new needs, on the part of Congress, the States,

7 employers, youth, and adults, for data, analysis, and

8 dissemination;

9 ‘‘(2) an evaluation, including the results of ob10 jective measures, of the performance of the labor

11 market information system in meeting these needs

12 and the steps to be taken to overcome deficiencies;

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

14 activities under section 22 and a description of the

15 development of new data programs, analytical tech16 niques, definitions and standards, dissemination

17 mechanisms, training and technical assistance, gov18 ernance mechanisms, and funding processes to meet

19 new needs; and

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

21 to the States of meeting contract requirements for

22 data production under this title, including a descrip23 tion of how the Secretary’s requested budget will

24 cover these costs.
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1 ‘‘(b) COOPERATION WITH THE STATES.—The Sec2 retary and the Bureau of Labor Statistics, in cooperation

3 with the States, shall develop the plan by—

4 ‘‘(1) establishing procedures and mechanisms

5 for holding formal and periodic consultations on

6 products and administration of the system, at least

7 once each quarter, with representatives of employers

8 as well as with representatives of the States from

9 each of the 10 Federal regions of the Department of

10 Labor, elected by and from among the State direc11 tors of labor market information, according to a

12 process set forth by the Secretary; and

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

14 submission to Congress, the results of these con15 sultations, including any supplementary or dissent16 ing views from representatives of the States.

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

18 FEDERAL EMPLOYEES.—For purposes of the development

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

20 of Management and Budget Circular A–11, the represent21 atives of the States, in accordance with subsection (b)(1),

22 shall be considered to be employees of the Department of

23 Labor.
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1 ‘‘SEC. 25. GOVERNOR’S RESPONSIBILITIES.

2 ‘‘(a) DESIGNATION OF STATE AGENCY.—The Gov3 ernor of each State shall designate a single State agency

4 to be the agency responsible for the management and over5 sight of a statewide comprehensive labor market informa6 tion system and for the State’s participation in the cooper7 ative Federal/State governance structure for the nation8 wide labor market information system.

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

10 assistance under this Act, the State agency shall—

11 ‘‘(1) develop, maintain, and continuously im12 prove a comprehensive labor market information sys13 tem, which shall—

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

15 section 22; and

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

17 State and its localities for planning and evalua18 tive data, including employment and economic

19 analyses and projections, as required by this

20 Act, the Consolidated and Reformed Education,

21 Employment, and Rehabilitation Systems Act,

22 the Social Security Act, and other provisions of

23 law which require the use of labor market infor24 mation;
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1 ‘‘(2) ensure the performance of contract and

2 grant responsibilities for data collection, analysis,

3 and dissemination;

4 ‘‘(3) conduct such other data collection, analy5 sis, and dissemination activities as will ensure com6 prehensive State and local labor market information;

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

8 State and local agencies, with particular attention to

9 State education, economic development, human serv10 ices, and welfare agencies, in data collection, analy11 sis, and dissemination activities in order to ensure

12 complementarity and compatibility among data; and

13 ‘‘(5) participate in the development of the na14 tional annual plan.’’.

15 Subtitle C—General Provisions

16 SEC. 141. WORKER RIGHTS.

17 The following requirements shall apply to programs

18 under titles II and III of this Act:

19 (1) PROHIBITION ON DISPLACEMENT.—A par20 ticipant in a program under titles II or III shall not

21 displace any currently employed worker (including a

22 partial displacement, such as a reduction in the

23 hours of non-overtime work, wages, or employment

24 benefits).
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1 (2) PROHIBITION ON IMPAIRMENT OF CON2 TRACTS.—A program under title II or III shall not

3 impair existing contracts for services or collective

4 bargaining agreements, and no such program that

5 would be inconsistent with the terms of a collective

6 bargaining agreement shall be undertaken without

7 the written concurrence of the labor organization

8 and employer concerned.

9 (3) PROHIBITION ON REPLACEMENT.—A partic10 ipant in a program under title II or III shall not be

11 employed—

12 (A) when any other individual is on tem13 porary layoff, with the clear possibility of recall,

14 from the same or any substantially equivalent

15 job with the participating employer; or

16 (B) when the employer has terminated the

17 employment of any regular employee or other18 wise reduced the workforce of the employer with

19 the intention of filling the vacancy so created

20 with the student.

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

22 under title II or III shall be provided with adequate

23 and safe equipment and safe and healthful work24 places in conformity with all health and safety re25 quirements of Federal, State, and local law.
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1 (5) EFFECT ON OTHER LAWS.—Nothing in this

2 Act shall be construed to modify or affect any Fed3 eral or State law prohibiting discrimination on the

4 basis of race, religion, color, ethnicity, national ori5 gin, gender, age, or disability, or to modify or affect

6 any right to enforcement of this Act that may exist

7 under other Federal laws, except as expressly pro8 vided by this Act.

9 SEC. 142. TRANSFERABILITY.

10 The Governor, through the collaborative process, has

11 the authority to transfer not more than 10 percent of the

12 total allotment to a State under title II or title III of this

13 Act, between such titles. Funds transferred under this au14 thority must be distributed to local providers in accord15 ance with the provisions of title II and III of this Act.

16 TITLE II—YOUTH DEVELOPMENT

17 AND CAREER PREPARATION

18 CONSOLIDATION GRANT

19 SEC. 201. PURPOSES.

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

21 local communities maximum flexibility in designing youth

22 development and career preparation programs that—

23 (1) help youth attain the academic foundation

24 and occupational skills needed to be successful in a
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1 competitive economy and to complete a high school

2 diploma or general equivalency diploma;

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

4 youth in their communities;

5 (3) promote strong connections between in6 school and at-risk programs, to ensure that youth

7 are prepared for further education opportunities and

8 good jobs, and promote youth development and ca9 reer preparation programs that provide opportunities

10 for youth to receive postsecondary education and oc11 cupational training;

12 (4) promote the formation of education and

13 business partnerships that are dedicated to linking

14 the worlds of school and work; and

15 (5) promote high academic and occupational

16 standards and quality vocational-technical education,

17 including improved secondary and postsecondary

18 programs, by focusing resources on program im19 provement initiatives that help prepare youth for

20 further education, training, and high-wage jobs in

21 high-performance workplaces.

22 SEC. 202. DEFINITIONS.

23 For purposes of this title:

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

25 of a State necessary for the proper and efficient per-
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1 formance of its duties under this title, including su2 pervision, but does not include curriculum develop3 ment activities, personnel development, or research

4 activities.

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

6 means strong experience in, and understanding of,

7 all aspects of the industry that youth are preparing

8 to enter, including planning, management, finances,

9 technical and production skills, underlying principles

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

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

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

14 coursework in secondary and postsecondary edu15 cation.

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

17 method of instruction of education for youth who,

18 through written cooperative arrangements between

19 the school and employers, receive instruction, includ20 ing required academic courses and related instruc21 tion by alternation of study in school with a job in

22 any occupational field. Such alternation shall be

23 planned and supervised by the school and employers

24 so that each contributes to the youth’s education

25 and employability. Work periods and school attend-
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1 ance may be on alternate half days, full days, weeks,

2 or other periods of time in fulfilling the cooperative

3 program.

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

5 means programs administered by the State to assist

6 juvenile and adult criminal offenders in correctional

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

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

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

13 academic foundation and prepare youth for employ14 ment at the entry level or to upgrade occupational

15 competencies of those previously or presently em16 ployed in any occupational field, and appropriate

17 counseling and guidance material.

18 (7) Except as otherwise provided, the term ‘‘eli19 gible institution’’ means a local educational agency,

20 an area vocational education school, an intermediate

21 educational agency, an institution of higher edu22 cation (as such term is defined in section 1201(a) of

23 the Higher Education Act of 1965), a State correc24 tions educational agency, or consortia of such enti25 ties.
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1 (8) The term ‘‘partnership’’ means a local en2 tity that is responsible for local youth development

3 and career preparation programs and may consist of

4 parents, employers, representatives of local edu5 cational agencies and local postsecondary edu6 cational institutions (including representatives of

7 area vocational education schools, where applicable),

8 local educators (such as teachers, counselors, or ad9 ministrators), representative employee organizations,

10 students, and may include other entities.

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

12 of Education.

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

14 means an integrated series of courses which are di15 rectly related to the educational and occupational

16 skill preparation of youth for jobs, or preparation for

17 postsecondary education.

18 (11) The term ‘‘single parent’’ means an indi19 vidual who—

20 (A) is unmarried or legally separated from

21 a spouse; and

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

23 whom the parent has either custody or joint

24 custody; or

25 (ii) is pregnant.
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1 (12) The term ‘‘special populations’’ includes

2 individuals with disabilities, economically disadvan3 taged individuals, individuals of limited English pro4 ficiency, and individuals who are eligible for non5 traditional training and employment.

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

7 means a program of study which—

8 (A) combines at least 2 years of secondary

9 and 2 years of postsecondary education in a

10 nonduplicative sequential course of study;

11 (B) integrates academic and vocational in12 struction;

13 (C) provides technical preparation in at

14 least 1 field of engineering technology, applied

15 science, mechanical, industrial, or practical arts

16 or trade, or agriculture, health occupations, or

17 business;

18 (D) builds student competence in mathe19 matics, science, communications, and workplace

20 skills, through applied academics and integrated

21 instruction in a coherent sequence of courses;

22 (E) leads to an associate degree or certifi23 cate in a specific career field;

24 (F) leads to placement in appropriate em25 ployment or further education; and
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1 (G) enables a student to fulfill a career re2 lating to labor market needs.

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

4 organized educational programs offering a sequence

5 of courses which are directly related to the prepara6 tion of youth in paid or unpaid employment in cur7 rent or emerging occupations, including

8 nonbaccalaureate certificate and degree programs

9 and baccalaureate vocational degree programs. Such

10 programs include competency-based applied learning

11 which contributes to a youth’s academic knowledge,

12 higher-order reasoning, and problem-solving skills,

13 work attitudes, general employability skills, and the

14 occupational-specific skills necessary for economic

15 independence as a productive and contributing mem16 ber of society. Such term also includes applied tech17 nology education.

18 (15) The term ‘‘vocational student organiza19 tions’’ means those organizations for individuals en20 rolled in vocational education programs which en21 gage in activities as an integral part of the instruc22 tional program. Such organizations may have State

23 and national units which aggregate the work and

24 purposes of instruction in vocational education at

25 the local level.
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1 Subtitle A—State Funding

2 SEC. 211. NATIONAL AND STATE FUNDING.

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

4 the amounts made available under section 4, the Secretary

5 is authorized to reserve 20 percent or $25,000,000, which6 ever is less, to carry out the provisions of subtitle D.

7 (b) STATE ALLOTMENT.—

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

9 the reservation under subsection (a), the Secretary

10 shall allot to each State for each fiscal year an

11 amount based on that State’s allotment percentage.

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

13 provided in subparagraph (B), the allotment per14 centage of a State for a fiscal year shall be the same

15 percentage of funds allotted to the State under this

16 section in the preceding fiscal year.

17 (B) The allotment percentage of a State for fis18 cal year 1996 shall be the percentage of funds allot19 ted to the State in fiscal year 1995 under—

20 (i) section 101, 101A, or 343(b), of the

21 Carl D. Perkins Vocational and Applied Tech22 nology Education Act as such Act was in effect

23 on the day before the date of the enactment of

24 this Act; and
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1 (ii) the funding allotted in fiscal year 1995

2 under section 252 and 262 of the Job Training

3 Partnership Act as such Act was in effect on

4 the day before the date of the enactment of this

5 Act.

6 (3) STATE MINIMUM.—Notwithstanding any

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

8 any fiscal year for which the amounts appropriated

9 for programs authorized by this title exceed the

10 amounts available under subparagraph (B) for fiscal

11 year 1995, a State shall receive not less than one12 quarter of one percent of the amount available for

13 each such program for that fiscal year under this

14 subsection. Amounts necessary for increasing such

15 payments to States to comply with the preceding

16 sentence shall be obtained by ratably reducing the

17 amounts to be paid to other States.

18 (4) FEDERAL FUNDS TO SUPPLEMENT, NOT

19 SUPPLANT, NON-FEDERAL FUNDS.—Funds received

20 under this title shall be used only to supplement the

21 amount of funds that would, in the absence of such

22 Federal funds, be made available from non-Federal

23 sources for the education of youth participating in

24 programs assisted under this title, and not to sup25 plant such funds.
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1 (5) DEFINITION.—For the purposes of this sub2 section the term ‘‘State’’ means, in addition to the

3 several States, the District of Columbia, the Com4 monwealth of Puerto Rico, the Virgin Islands,

5 Guam, American Samoa, and the Northern Mariana

6 Islands.

7 (c) FUNDING FOR STATE PROGRAMS.—Of the funds

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

9 year, the Governor, through the collaborative process,

10 shall—

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

12 local providers;

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

14 State programs described in section 222; and

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

16 administrative purposes at the State level.

17 (d) PROVISO.—None of the funds made available

18 under this title shall be used to compel any youth to pur19 sue a specific career or to attain a federally funded or en20 dorsed skill certificate. Youth participating in programs

21 under this title shall be eligible to change their course of

22 study and training.

23 SEC. 212. WITHIN STATE ALLOCATION.

24 (a) IN GENERAL.—
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1 (1) ALLOCATION OF FUNDS.—From the

2 amounts made available pursuant to section

3 211(c)(1), the Governor, through the collaborative

4 process, shall—

5 (A) allocate to eligible institutions an

6 amount equal to not less than 40 percent of

7 such amount for in-school youth programs de8 scribed in section 241; and

9 (B) allocate to local workforce development

10 boards an amount equal to not less than 40

11 percent of such amount for at-risk youth pro12 grams described in section 245.

13 (2) DISCRETIONARY FUNDS.—From the

14 amounts made available pursuant to section

15 211(c)(1), the Governor, through the collaborative

16 process, is authorized to provide 10 percent of such

17 amounts for discretionary purposes, as determined

18 by the Governor, to eligible institutions or local

19 workforce development boards for in-school and at20 risk youth.

21 (3) REMAINDER OF FUNDS.—From the remain22 der of amounts made available pursuant to section

23 211(c)(1) and distributed pursuant to paragraphs

24 (1) and (2) of this subsection, the Governor, through

25 the collaborative process, shall allocate the remain-
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1 der of any such amounts to carry out the purposes

2 of subparagraphs (A) or (B) of paragraph (1).

3 (b) WITHIN STATE FORMULA.—

4 (1) ESTABLISHMENT.—The Governor, through

5 the collaborative process, and after consultation with

6 local chief elected officials in the local workforce de7 velopment area and, where appropriate, local edu8 cators in such area, shall develop a formula for the

9 allocation of funds in accordance with paragraph (1)

10 of subsection (a). Such formula shall take into ac11 count—

12 (A) poverty rates within each local commu13 nity, as determined by the State;

14 (B) the proportion of the State’s youth

15 population residing within each local commu16 nity; and

17 (C) such other factors as considered appro18 priate.

19 (2) ADDITIONAL FACTORS.—In establishing

20 such formula, the Governor shall ensure that funds

21 are distributed equitably throughout the State, and

22 that the factors described in paragraph (1) do not

23 receive disproportionate weighting.

24 (c) MINIMUM GRANT AMOUNTS.—
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1 (1) LOCAL EDUCATIONAL AGENCIES.—A local

2 educational agency or consortium of such agencies

3 that receives a subgrant from a State under para4 graph (1) of subsection (a) for any fiscal year shall

5 receive not less than $15,000.

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

9 paragraph (1) of subsection (a) for any fiscal year

10 shall receive not less than $50,000.

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

13 State under paragraph (1) of subsection (a) for any

14 fiscal year shall receive not less than $15,000.

15 (4) SECONDARY-POSTSECONDARY CONSOR16 TIA.—One or more local educational agencies and

17 one or more eligible institutions may enter into a

18 consortium agreement. A consortium formed pursu19 ant to this paragraph that receives a subgrant from

20 a State under this subtitle shall receive not less than

21 $50,000 in any fiscal year.

22 (d) FUNDS TO CONSORTIUM.—Funds allocated to a

23 consortium formed to meet the requirements of subsection

24 (c) shall be used only for purposes and activities that are

25 mutually beneficial to all members of the consortium. Such
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1 funds may not be reallocated to individual members of the

2 consortium for purposes or activities benefiting only one

3 member of the consortium.

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

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

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

7 area; and

8 (2) demonstrates an inability to enter into a

9 consortium for purposes of providing services under

10 this title.

11 Subtitle B—State Organizational,

12 Planning, and Reporting Re13 sponsibilities

14 SEC. 221. STATE PLAN.

15 In addition to the requirements described in title I,

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

17 under this title shall, as part of the State Workforce De18 velopment and Literacy Plan under title I, submit to the

19 Secretary of Education information that includes—

20 (1) a description of the State’s plan to develop

21 the academic and occupational skills of youth and

22 provide the attainment of challenging vocational23 technical education standards, including industry-ap24 proved skill standards and workplace competencies;
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1 (2) a description of how the State will improve

2 comprehensive career guidance and counseling which

3 may include linkages to career exploration and guid4 ance counseling outside of the school system and

5 shall describe how the State will effectively dem6 onstrate the system of career preparation for youth,

7 which includes elements such as professional devel8 opment, and secondary-postsecondary collaborations;

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

10 integrating academic, vocational, and work-based

11 learning, including a description of how the State

12 will promote collaboration between secondary and

13 postsecondary occupational and academic programs

14 and institutions and incorporating learning in all as15 pects of the industry;

16 (4) a description of how the State will promote

17 the active involvement of parents and business (in18 cluding small- and medium-sized businesses) in the

19 planning, development, and implementation of youth

20 development and career preparation programs au21 thorized under this title; and

22 (5) a description of how the State will serve sin23 gle parents, displaced homemakers, and single preg24 nant women and promote the elimination of sex bias.
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1 Nothing in this Act shall be construed to mandate

2 an amount be set-aside for these purposes.

3 SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.

4 (a) GENERAL AUTHORITY.—From amounts made

5 available to a State under section 211(c)(2), each State

6 shall, consistent with State law, conduct State programs

7 and activities.

8 (b) USES OF FUNDS.—The programs and activities

9 described in subsection (a) may include—

10 (1) an assessment of programs conducted with

11 assistance under this title, including the development

12 of—

13 (A) performance indicators and measures

14 for such programs; and

15 (B) program improvement and accountabil16 ity with respect to such programs;

17 (2) the support for tech-prep education;

18 (3) support for workforce preparation programs

19 for single parents, displaced homemakers, and single

20 pregnant women;

21 (4) support for corrections vocational education;

22 (5) professional development activities for voca23 tional teachers, academic teachers, school adminis24 trators, counselors, workplace mentors, and local
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1 providers regarding integration of vocational, aca2 demic, and work-based curricula, including—

3 (A) inservice and preservice training of

4 teachers and faculty in state-of-the-art pro5 grams and techniques and nontraditional train6 ing and employment; and

7 (B) support of public teacher-education

8 programs to ensure vocational teachers stay

9 current with the needs, expectations, and meth10 ods of industry to meet employer standards;

11 (6) development, dissemination, and field test12 ing of curricula, especially—

13 (A) curricula that integrate vocational,

14 academic, and work-based methodologies;

15 (B) curricula that provide a coherent se16 quence of courses through which academic and

17 occupational skills may be measured; and

18 (C) curricula for work-based learning;

19 (7) leadership and instructional programs in

20 technology education;

21 (8) support for cooperative education;

22 (9) support for family and consumer science

23 programs;

24 (10) creative use of technologies, including pro25 fessional development in the use of such technologies
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1 for instructional purposes and to increase coun2 selor’s and youth’s knowledge of, and use of, addi3 tional information resources;

4 (11) support for vocational student organiza5 tions; and

6 (12) improving comprehensive career guidance

7 and counseling.

8 SEC. 223. INCENTIVE AWARDS.

9 The State, may, from the amount made available

10 under section 211(c)(2) for any fiscal year make perform11 ance awards to 1 or more eligible institutions or local pro12 viders that have—

13 (1) exceeded in the performance goals described

14 in section 110(f)(3);

15 (2) implemented exemplary youth development

16 and career preparation programs at the local level in

17 accordance with the purposes described in section

18 201; or

19 (3) provided exemplary education services and

20 activities for at-risk youth.

21 Subtitle C—Subgrants for In22 School and At-Risk Youth

23 SEC. 231. PARTNERSHIP AGREEMENTS.

24 (a) PARTNERSHIP.—A local workforce development

25 board and eligible institutions that desire to receive a
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1 subgrant from a State under this subtitle in any fiscal

2 year shall form a partnership for the purposes of collabo3 rative planning, coordination of in-school and at-risk pro4 grams, and effective public participation.

5 (b) PLAN.—

6 (1) IN GENERAL.—The partnership referred to

7 in subsection (a) shall, in collaboration, develop and

8 submit for approval to the Governor through the

9 State collaborative process a comprehensive youth

10 development and career preparation plan for in11 school and at-risk youth. Such plan shall describe

12 how the youth development and career preparation

13 system meets the requirements of sections 241 and

14 245 and shall address comments received through

15 the collaborative process.

16 (2) COLLABORATIVE PROCESS.—The partner17 ship shall assure the involvement of parents, teach18 ers, and the community in the collaborative planning

19 process which involves design of the indicators,

20 strategies, articulation, and cooperative agreements,

21 assessments, and evaluation of program activities.

22 (3) DISPUTES.—(A) In the event a partnership

23 cannot come to agreement on the content of local

24 plans, the Governor, through the collaborative proc-
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1 ess, is authorized to develop procedures for the reso2 lution of issues in dispute.

3 (B) If procedures are not in place for the reso4 lution of disputes an eligible institution of such part5 nership may apply directly to the State for a grant

6 to carry out in-school youth programs described in

7 section 241.

8 SEC. 232. DISTRIBUTION OF FUNDS.

9 (a) IN-SCHOOL PROGRAMS.—Based upon an applica10 tion submitted according to the requirements described in

11 section 231, a State shall distribute funds made available

12 in a fiscal year as provided in section 212(a)(1)(A) to eligi13 ble institutions to carry out in-school youth programs de14 scribed in section 241.

15 (b) AT-RISK YOUTH PROGRAMS.—A State shall dis16 tribute funds made available in any fiscal year as provided

17 in section 212(a)(1)(B) to local workforce development

18 boards to carry out at-risk youth programs described in

19 section 245.

20 CHAPTER 1—IN-SCHOOL YOUTH

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

22 (a) GENERAL AUTHORITY.—Each eligible institution

23 that receives a subgrant under this chapter shall use funds

24 provided under such grant to improve youth development

25 and career preparation programs.
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1 (b) REQUIREMENTS FOR USES OF FUNDS.—Funds

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

3 be used to provide in-school youth development and career

4 preparation programs that—

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

6 effective;

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

9 learning, through a coherent sequence of courses so

10 that youth achieve both academic and occupational

11 competencies and have strong experience in, and un12 derstanding of, all aspects of the industry;

13 (3) involve employers and parents in the design

14 and implementation of programs;

15 (4) establish effective linkages with at-risk

16 youth programs, secondary and postsecondary edu17 cation;

18 (5) provide work-based learning experiences

19 with adult mentoring where appropriate; and

20 (6) provide comprehensive career guidance and

21 counseling, including exploration in the practical

22 arts or trade.

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

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

25 eligible institution for in-school youth activities such as—
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1 (1) purchasing, leasing, or upgrading of equip2 ment, including instructional aids and material;

3 (2) inservice training of vocational instructors,

4 academic instructors, employers, and workplace

5 mentors, to integrate academic and vocational edu6 cation, and provide high-quality school-based and

7 work-based learning experiences;

8 (3) tech-prep education programs;

9 (4) supplementary services designed to meet the

10 needs of special populations;

11 (5) adaptation of equipment;

12 (6) apprenticeship programs;

13 (7) comprehensive mentoring programs in insti14 tutions of higher education offering comprehensive

15 programs in teacher preparation which seek to fully

16 use the skills and work experiences of individuals

17 currently or formerly employed in business and in18 dustry, who are interested in becoming classroom in19 structors, and to meet the need of vocational edu20 cators who wish to upgrade their teaching com21 petencies;

22 (8) local education and business partnerships

23 for developing and implementing school-based youth

24 development and career preparation systems;
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1 (9) support for vocational student organiza2 tions;

3 (10) establishing effective activities and proce4 dures to enable program participants and their par5 ents to participate directly in decisions that influ6 ence the character of programs, including providing

7 information and assistance needed for informed and

8 effective participation; and

9 (11) support for programs which prepare youth

10 with skills for personal and family life management,

11 work, and leadership in the community and the Na12 tion.

13 CHAPTER 2—AT-RISK YOUTH

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

15 (a) GENERAL AUTHORITY.—Each local workforce de16 velopment board that receives a subgrant under this chap17 ter shall use funds provided under such grant to improve

18 youth development and career preparation programs.

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

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

21 be used to provide youth development and career prepara22 tion programs for at-risk youth that—

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

24 effective;
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1 (2) integrate academic, vocational, and work2 based learning, stressing applied and contextual

3 learning, through a coherent sequence of courses so

4 that in-school and at-risk youth achieve both aca5 demic and occupational competencies;

6 (3) involve employers and parents in the design

7 and implementation of programs;

8 (4) establish effective linkages with in-school

9 youth programs, and secondary and postsecondary

10 education;

11 (5) provide work-based learning experiences, in12 cluding experiences in the practical arts or trade, if

13 applicable;

14 (6) provide adult mentoring as a core compo15 nent of the program;

16 (7) provide an objective assessment of the aca17 demic level, skill level, and service needs of each par18 ticipant; and

19 (8) provide comprehensive career guidance and

20 counseling.

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

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

23 programs, as selected by the local workforce development

24 board, may provide activities such as—
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1 (1) tutoring, study skills training and instruc2 tion leading to completion of high school;

3 (2) alternative high school services;

4 (3) training or education that is combined with

5 community service, and service learning opportuni6 ties;

7 (4) paid and unpaid work experience, including

8 limited internships, entry-employment experience

9 programs, and summer employment opportunities,

10 that are integrated with year-round, school-based, or

11 alternative school-based programs;

12 (5) dropout prevention strategies, strategies to

13 encourage at-risk youth to reenter high school or al14 ternative high school programs, and programs that

15 encourage pregnant and parenting youth to stay in

16 school;

17 (6) preemployment and work maturity skills

18 training;

19 (7) peer-centered activities encouraging respon20 sibility and other positive social behaviors during

21 non-school hours; and

22 (8) training-related supportive services.

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

24 than 10 percent of the funds provided under this chapter
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1 to a local workforce development board may be used for

2 administrative purposes.

3 SEC. 246. AT-RISK YOUTH PROVIDERS.

4 (a) ROLE OF LOCAL WORKFORCE DEVELOPMENT

5 BOARD.—A local workforce development board that re6 ceives funds under this chapter shall not operate pro7 grams, but shall contract with eligible providers of dem8 onstrated effectiveness, or with eligible providers utilizing

9 service methodologies with demonstrated effectiveness in

10 serving the youth development and career preparation

11 needs of at-risk youth, for the purpose of providing serv12 ices under this chapter.

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

14 chapter, eligible providers may include—

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

16 section 202(7);

17 (2) a unit of local government;

18 (3) a private, nonprofit organization (including

19 community-based organizations);

20 (4) a private, for profit entity; or

21 (5) other organizations or entities of dem22 onstrated effectiveness and approved by the local

23 workforce development board.
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1 Subtitle D—National Programs

2 SEC. 251. RESEARCH ACTIVITIES.

3 (a) GENERAL AUTHORITY.—

4 (1) IN GENERAL.—In order to carry out the

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

6 through grants, contracts, or cooperative agree7 ments, carry out research, development, dissemina8 tion, replication of model programs, demonstration

9 programs, evaluation, capacity-building, and tech10 nical assistance activities with regard to the services

11 and activities carried out under this title.

12 (2) INFORMATION SYSTEMS.—Activities carried

13 out under this section may include support for occu14 pational and career information systems.

15 (b) DISSEMINATION.—The Secretary shall establish

16 a system for disseminating information resulting from re17 search and development activities carried out under this

18 title.

19 SEC. 252. ASSESSMENT AND DATA COLLECTION OF YOUTH

20 DEVELOPMENT AND CAREER PREPARATION

21 PROGRAMS.

22 (a) IN GENERAL.—The Secretary, through the Office

23 of Educational Research and Improvement, shall conduct

24 a biennial assessment of services and activities assisted
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1 under this title, through studies and analyses conducted

2 independently through competitive awards.

3 (b) CONTENTS.—The assessment required under sub4 section (a) shall examine the extent to which services and

5 activities assisted under this title have achieved their in6 tended purposes and results, including the extent to

7 which—

8 (1) State and local services and activities have

9 developed, implemented, or improved youth develop10 ment and career preparation systems established

11 under this title;

12 (2) services and activities assisted under this

13 title succeed in preparing youth, including youth

14 who are members of special populations, for post15 secondary education, further learning, or entry into

16 high-skill, high-wage careers;

17 (3) youth who participate in services and activi18 ties supported under this title succeed in meeting

19 challenging State academic and industry-based skill

20 standards; and

21 (4) the system improvement, participation, local

22 and State assessment, and accountability provisions

23 of this title, including the performance goals and in24 dicators established under section 110(f)(3), are ef25 fective.
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1 SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.

2 (a) GENERAL AUTHORITY.—

3 (1) NATIONAL CENTER.—The Secretary may,

4 through a grant or contract, establish one or more

5 national centers for conducting applied research, de6 velopment, dissemination, and technical assistance

7 activities which would focus on improving the devel8 opment and career preparation of youth. The Sec9 retary shall consult with States prior to establishing

10 one or more such centers.

11 (2) ELIGIBILITY.—Entities eligible to receive

12 funds under this section are institutions of higher

13 education, other public or private nonprofit organi14 zations or agencies, and consortia of such institu15 tions, organizations, or agencies.

16 (3) PREVIOUS CENTER.—The national center in

17 existence on the day before the date of the enact18 ment of the this Act shall continue to receive assist19 ance under this section in accordance with the terms

20 of its current award.

21 (b) ACTIVITIES.—

22 (1) IN GENERAL.—The applied research, devel23 opment, dissemination, and technical assistance ac24 tivities carried out by the national center or centers

25 shall include—
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1 (A) activities that assist recipients of funds

2 under this title to meet the requirements of sec3 tion 110(f)(3);

4 (B) research and development of activities

5 that combine academic, vocational-technical

6 education, and work-based learning;

7 (C) developing new models for remediation

8 of basic academic skills which incorporate ap9 propriate instructional methods;

10 (D) identifying ways to establish effective

11 linkages among educational and job training ac12 tivities at the State and local levels;

13 (E) new models for comprehensive career

14 guidance and counseling;

15 (F) studies providing longitudinal informa16 tion or formative evaluation on programs fund17 ed under this title, including an analysis of the

18 effectiveness of youth development and career

19 preparation programs in serving at-risk youth;

20 and

21 (G) such other activities as the Secretary

22 determines to be appropriate to achieve the pur23 poses of this Act.

24 (2) DUTIES.—The center or centers shall—
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1 (A) provide assistance to States and local

2 recipients in developing and using systems of

3 performance measures and indicators for im4 provement of youth development and career

5 preparation programs and services; and

6 (B) provide technical assistance and out7 reach.

8 (3) SUMMARY.—The center or centers conduct9 ing the activities described in paragraph (1) shall

10 annually prepare a summary of key research find11 ings of such center or centers and shall submit cop12 ies of the summary to the Secretaries of Education

13 and Labor. The Secretary shall submit that sum14 mary to the Committee on Labor and Human Re15 sources of the Senate, and the Committee on Eco16 nomic and Educational Opportunities of the House

17 of Representatives.

18 (c) CLEARINGHOUSE.—The center or centers shall

19 maintain a clearinghouse that will provide data and infor20 mation to Federal, State, and local organizations and

21 agencies about the condition of youth development and ca22 reer preparation systems and programs funded under this

23 title.
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1 SEC. 254. PURCHASE OF AMERICAN-MADE EQUIPMENT AND

2 PRODUCTS.

3 (a) SENSE OF THE CONGRESS.—It is the sense of the

4 Congress that, to the greatest extent practicable, all equip5 ment and products purchased with funds made available

6 under this Act should be American-made.

7 (b) NOTICE REQUIREMENT.—In providing financial

8 assistance to, or entering into any contract with, any en9 tity using funds made available under this Act, the head

10 of each Federal agency, to the greatest extent practicable,

11 shall provide to such entity a notice describing the state12 ment made in subsection (a) by the Congress.

13 TITLE III—ADULT EMPLOYMENT

14 AND TRAINING CONSOLIDA15 TION GRANT

16 SEC. 301. PURPOSE.

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

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

19 training, and related assistance designed to facilitate the

20 transition of adults into productive, high skills, private

21 sector employment.

22 Subtitle A—Adult Employment and

23 Training Consolidation Grant

24 SEC. 311. AUTHORIZATION.

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

26 accordance with the requirements of section 102 submits
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1 to the Secretary of Labor (hereinafter in this title referred

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

3 literacy plan under section 104, the Secretary shall pro4 vide a grant to the State for the purpose of providing em5 ployment, job training, and related assistance for adults

6 in the State.

7 (b) AMOUNT.—The grant shall consist of the allot8 ment determined for the State under section 312.

9 SEC. 312. ALLOTMENT AMONG STATES.

10 (a) IN GENERAL.—Of the amount appropriated pur11 suant to section 4(a)(2) to carry out this title for a fiscal

12 year, the Secretary shall—

13 (1) allot 85 percent of such amounts in accord14 ance with subsection (b); and

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

16 (b) ALLOTMENT AMONG STATES.—

17 (1) RESERVATION FOR THE TERRITORIES.—Of

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

19 Secretary shall allot not more than one quarter of

20 one percent among the Commonwealth of the North21 ern Mariana Islands, American Samoa, Guam, and

22 the Virgin Islands.

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

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

25 allot the remaining amount to the remaining States
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1 so that each State receives an amount that bears the

2 same proportion to such remaining amount as—

3 (A) the amount allotted to each such State

4 from allotments under sections 202 and 302 of

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

6 1602 and 1652) (as in effect before the date of

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

8 bears to

9 (B) the aggregate of the amounts allotted

10 to all such States from allotments under such

11 sections for such fiscal year.

12 (c) MINIMUM ALLOTMENT.—No State shall receive

13 less than one-quarter of one percent of the amount avail14 able under this title for a fiscal year. Amounts necessary

15 for increasing such payments to States to comply with the

16 preceding sentence shall be obtained by ratably reducing

17 the amounts to be paid to other States.

18 SEC. 313. ALLOCATION WITHIN STATES.

19 (a) RESERVATIONS FOR STATE ACTIVITIES.—

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

21 shall reserve not more than 20 percent of the

22 amount allotted to the State under section 312(b)

23 for a fiscal year for statewide activities for employ24 ment, job training, and related assistance for adults.
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1 (2) MANDATORY ACTIVITIES.—Such activities

2 shall include—

3 (A) rapid response activities; and

4 (B) additional assistance to areas that ex5 perience disasters, mass layoffs or plant clos6 ings, or other events which precipitate substan7 tial increases in the number of unemployed

8 workers, to be expended in accordance with the

9 local plan of the relevant workforce development

10 area.

11 (3) DISCRETIONARY ACTIVITIES.—

12 (A) IN GENERAL.—Such activities may in13 clude—

14 (i) subject to subparagraph (B), ad15 ministration by the State of programs

16 under this subtitle;

17 (ii) capacity building and technical as18 sistance to local workforce development

19 areas, integrated career center systems,

20 and service providers, including the devel21 opment and training of staff and the devel22 opment of exemplary program activities;

23 (iii) incentives for program coordina24 tion, performance awards, and research

25 and demonstrations;
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1 (iv) implementation of innovative in2 cumbent worker training programs, which

3 may include the establishment and imple4 mentation of an employer loan program to

5 assist in skills upgrading (in accordance

6 with the requirements of section 324);

7 (v) implementation of experimen8 tation, model activities, pilot projects, and

9 demonstration projects which further the

10 goals and purposes of this Act;

11 (vi) additional assistance for the de12 velopment and implementation of the inte13 grated career center system of the State

14 established in accordance with title I;

15 (vii) support for a common manage16 ment information system as described in

17 section 109; and

18 (viii) implementation of innovative

19 programs to increase the number of indi20 viduals trained and placed in nontradi21 tional employment.

22 (B) LIMITATION.—Not more than 25 per23 cent of the amount reserved by the Governor

24 under paragraph (1) may be used for adminis-
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1 tration by the State of programs under this

2 subtitle.

3 (b) WITHIN STATE ALLOCATION.—

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

5 shall allocate the remainder of the amount allotted

6 to the State under section 312(b) to workforce devel7 opment areas designated under title I of this Act, in

8 accordance with paragraphs (1) and (2) of such sec9 tion, for the purpose of providing employment, job

10 training, and related services for adults in accord11 ance with section 315.

12 (2) WITHIN STATE FORMULA.—

13 (A) ESTABLISHMENT.—The Governor,

14 through the collaborative process under section

15 103 of this Act, and after consultation with

16 local chief elected officials in the local workforce

17 development area, shall develop a formula for

18 the allocation of 90 percent of the remainder of

19 funds described in paragraph (1), to workforce

20 development areas, taking into account—

21 (i) poverty rates within each local

22 workforce development area, as determined

23 by the State;

24 (ii) unemployment rates within each

25 local workforce development area;
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1 (iii) the proportion of the State’s

2 adult population residing within each local

3 workforce development area; and

4 (iv) such other factors as considered

5 appropriate.

6 (B) ADDITIONAL FACTORS.—In establish7 ing such formula, the Governor shall ensure

8 that funds are distributed equitably throughout

9 the State, and that the factors described in sub10 paragraph (A) do not receive disproportionate

11 weighting.

12 (3) WITHIN STATE DISCRETIONARY ALLOCA13 TION.—In addition, the Governor is authorized to al14 locate 10 percent of the remainder of funds de15 scribed in paragraph (1) to workforce development

16 areas designated under title I of this Act. Amounts

17 may be allocated to such areas as determined by the

18 Governor.

19 SEC. 314. ADDITIONAL STATE PLAN REQUIREMENTS.

20 The State shall, as part of the State workforce devel21 opment and literacy plan under title I of this Act, submit

22 to the Secretary the following additional information:

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

24 employment and training needs of dislocated work25 ers, economically disadvantaged individuals, older
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1 workers, individuals with disabilities, displaced

2 homemakers, veterans, and individuals with multiple

3 barriers to employment (as determined by the

4 State), including individuals who are basic skills de5 ficient and individuals seeking to enter nontradi6 tional employment.

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

8 rapid response assistance to workers experiencing

9 dislocation as a result of mass layoffs and plant clos10 ings, either through the direct provision of services

11 or through the transfer of funds to local workforce

12 development areas for the provision of such services.

13 SEC. 315. USE OF AMOUNTS.

14 (a) CORE SERVICES.—Amounts allocated under sec15 tion 313(b) shall be used to provide core services to adults

16 through integrated career center systems in accordance

17 with title I of this Act.

18 (b) INTENSIVE SERVICES.—

19 (1) IN GENERAL.—Amounts allocated under

20 section 313(b) shall be used to provide intensive

21 services to adults—

22 (A) who are unable to obtain employment

23 through core services under subsection (a); and
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1 (B) who have been determined to be in

2 need of more intensive services in order to gain

3 employment.

4 (2) DELIVERY OF SERVICES.—Such intensive

5 services shall be provided—

6 (A) directly through integrated career cen7 ter systems in accordance with title I of this

8 Act; or

9 (B) through contracts through such sys10 tems with service providers approved by the

11 local workforce development board, which may

12 include private, for-profit providers.

13 (3) TYPES OF SERVICES.—Such intensive serv14 ices may include the following:

15 (A) Comprehensive and specialized assess16 ments of the skill levels and service needs of

17 adults, which may include—

18 (i) diagnostic testing and other assess19 ment tools; and

20 (ii) in-depth interviewing and evalua21 tion to identify employment barriers and

22 appropriate employment goals.

23 (B) Development of an individual employ24 ment plan, to identify the employment goals,

25 appropriate achievement objectives, and the ap-
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1 propriate combination of services for the adult

2 to achieve the employment goal.

3 (C) Group counseling.

4 (D) Individual counseling and career plan5 ning.

6 (E) Case management for adults receiving

7 education and training services under sub8 section (c) or supportive services under sub9 section (d).

10 (F) Follow-up counseling for adults placed

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

12 (c) EDUCATION AND TRAINING SERVICES.—

13 (1) IN GENERAL.—Amounts allocated under

14 section 313(b) shall be used to provide education

15 and training services to adults—

16 (A) who are unable to obtain employment

17 through core services under subsection (a);

18 (B) who are in need of education and

19 training services in order to gain employment

20 as a result of determinations made through—

21 (i) preliminary assessments under sec22 tion 107(f)(1)(B) of this Act; or

23 (ii) comprehensive and specialized as24 sessments under subsection (b)(3)(A); and
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1 (C) who are unable to obtain other grant

2 assistance for such services, such as through

3 Federal Pell Grants established under title IV

4 of the Higher Education Act of 1965.

5 (2) DELIVERY OF SERVICES.—Such education

6 and training services shall be provided through edu7 cation and training providers certified in accordance

8 with title I of this Act.

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

10 training services may include the following:

11 (A) Basic skills training, including reme12 dial education, literacy training, and English

13 literacy program instruction.

14 (B) Occupational skills training, including

15 training for nontraditional employment.

16 (C) On-the-job training.

17 (D) Programs that combine workplace

18 training with related instruction.

19 (E) Training programs operated by the

20 private sector.

21 (F) Skill upgrading and retraining.

22 (G) Entrepreneurial training.

23 (H) Employability training to enhance

24 basic workplace competencies.
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1 (I) Customized training conducted with a

2 commitment by an employer or group of em3 ployers to employ an individual upon successful

4 completion of the training.

5 (4) ADDITIONAL REQUIREMENTS.—

6 (A) USE OF CAREER GRANTS.—

7 (i) IN GENERAL.—Except as provided

8 in clause (ii) and clause (iii), education

9 and training services under this section

10 shall be provided through the use of career

11 grants in accordance with this subsection,

12 and shall be distributed to eligible individ13 uals through integrated career centers or

14 affiliated sites as described in section 107,

15 and in accordance with section 108 regard16 ing the identification of eligible education

17 and training providers.

18 (ii) EXCEPTIONS.—Education and

19 training services authorized under this title

20 may be provided pursuant to a contract for

21 services in lieu of a career grant if—

22 (I) such services are on-the-job

23 training provided by an employer;

24 (II) the local workforce develop25 ment board determines there are an
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1 insufficient number of certified pro2 viders of education and training serv3 ices in the workforce development

4 area to accomplish the purposes of a

5 career grant system;

6 (III) the local workforce develop7 ment board determines that the cer8 tified providers of education and

9 training in the workforce development

10 area are unable to provide effective

11 services to special participant popu12 lations; or

13 (IV) the local workforce develop14 ment board decides to enter into a di15 rect training contract with a commu16 nity based organization serving special

17 participant populations.

18 (iii) TRANSITION.—States shall within

19 three years from the date of enactment of

20 this Act fully implement the requirements

21 of clause (i), but nothing shall prohibit

22 States from beginning such implementa23 tion at an earlier date.

24 (B) LINKAGE TO OCCUPATIONS IN DE25 MAND.—Education and training services under
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1 this subsection shall be directly linked to occu2 pations for which there is a demand in the local

3 workforce development area, or in another area

4 to which an adult receiving such services is will5 ing to relocate.

6 (d) ADDITIONAL SERVICES.—

7 (1) SUPPORTIVE SERVICES.—Supportive serv8 ices may be provided for individuals—

9 (A) who are receiving assistance under any

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

11 (B) who are unable to receive such services

12 through other programs providing such services.

13 (2) NEEDS-RELATED PAYMENTS.—

14 (A) IN GENERAL.—Amounts allocated

15 under section 313(b) may be used to provide

16 needs-related payments to adults who are un17 employed and do not qualify for (or have ceased

18 to qualify for) unemployment compensation for

19 the purpose of enabling such adults to partici20 pate in education and training programs under

21 subsection (c).

22 (B) ADDITIONAL ELIGIBILITY REQUIRE23 MENTS.—In addition to the requirements con24 tained in subparagraph (A), a dislocated worker

25 who has exhausted unemployment insurance
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1 benefits may be eligible to receive needs-related

2 payments under this paragraph only if such

3 worker was enrolled in education or training by

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

5 unemployment compensation benefit period, or,

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

7 worker is informed that a short-term layoff will

8 in fact exceed 6 months.

9 (e) PRIORITY.—Local workforce development boards

10 shall establish a process through which priority is given

11 to dislocated workers and economically disadvantaged in12 dividuals, for receipt of services provided under sub13 sections (b) and (c), in the event that funds are limited

14 within the workforce development area.

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

16 Nothing in this section may be construed to establish a

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

18 under a program established under this section.

19 (g) LIMITATIONS ON USE OF FUNDS.—Not more

20 than 10 percent of the funds provided under this title to

21 a local workforce development board may be used for ad22 ministrative purposes.

23 Subtitle B—Federal Programs

24 SEC. 321. NATIONAL DISCRETIONARY GRANTS.

25 (a) GRANTS FOR DISLOCATED WORKERS.—
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1 (1) IN GENERAL.—From amounts reserved

2 under section 312(a)(2) for any fiscal year, the Sec3 retary is authorized to award national discretionary

4 grants to address major economic dislocations that

5 result from plant closures, base closures, or mass

6 layoffs.

7 (2) APPLICATION.—To receive a grant under

8 this section, an eligible entity shall submit an appli9 cation to the Secretary at such time, in such man10 ner, and accompanied by such information as the

11 Secretary determines is appropriate.

12 (3) ELIGIBLE ENTITIES.—Grants under this

13 section may be awarded to—

14 (A) the State;

15 (B) a local workforce development board

16 administering assistance under this Act;

17 (C) employers and employer associations;

18 (D) worker-management transition assist19 ance committees and other employer-employee

20 entities;

21 (E) representatives of employees;

22 (F) community development corporations

23 and community-based organizations; and

24 (G) industry consortia.
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1 (b) INCENTIVE GRANTS.—From amounts reserved

2 under section 312(a)(2) for any fiscal year, the Secretary

3 may provide awards to States—

4 (1) to assist in the implementation of exemplary

5 statewide workforce development system designs;

6 and

7 (2) for the achievement of exceptional perform8 ance in the statewide workforce development system.

9 SEC. 322. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

10 (a) IN GENERAL.—From amounts reserved under

11 section 312(a)(2) for any fiscal year, the Secretary may

12 provide assistance to the Governor of any State within

13 which is located an area that has suffered an emergency

14 or a major disaster as defined in paragraphs (1) and (2),

15 respectively, of section 102 of the Robert T. Stafford Dis16 aster Relief and Emergency Assistance Act (referred to

17 in this section as the ‘‘disaster area’’).

18 (b) USE OF FUNDS.—

19 (1) PROJECTS RESTRICTED TO DISASTER

20 AREAS.—Funds made available under this section—

21 (A) shall be used exclusively to provide em22 ployment on projects to provide food, clothing,

23 shelter, and other humanitarian assistance for

24 disaster victims and on projects regarding dem25 olition, cleanup, repair, renovation, and recon-
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1 struction of damaged and destroyed structures,

2 facilities, and lands located within the disaster

3 area; and

4 (B) may be expended through public and

5 private agencies and organizations engaged in

6 such projects.

7 (2) ELIGIBILITY REQUIREMENTS.—An individ8 ual shall be eligible to be offered disaster employ9 ment under this section if such individual is a dis10 located worker or is temporarily or permanently laid

11 off as a consequence of the disaster.

12 (3) LIMITATIONS ON DISASTER RELIEF EM13 PLOYMENT.—No individual shall be employed under

14 this part for more than 6 months for work related

15 to recovery from a single natural disaster.

16 SEC. 323. RESEARCH, DEMONSTRATION, EVALUATION, AND

17 CAPACITY BUILDING.

18 (a) IN GENERAL.—From amounts reserved under

19 section 312(a)(2) for any fiscal year, the Secretary is au20 thorized to establish and carry out research, demonstra21 tion, and capacity building activities in accordance with

22 this section.

23 (b) ACTIVITIES.—The Secretary is authorized to

24 carry out the following activities under this section:
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1 (1) RESEARCH.—The Secretary is authorized to

2 conduct continuing research, which may include

3 studies and other methods and techniques, that will

4 aid in the solution of the employment and training

5 problems of the United States. Such studies may in6 clude the extent to which individuals who participate

7 in programs established under this title achieve self8 sufficiency as a result of such participation, includ9 ing the identification by State and locality, to the ex10 tent practicable, of indicators measuring such self11 sufficiency.

12 (2) DEMONSTRATIONS.—The Secretary is au13 thorized to conduct pilot and demonstration projects

14 for the purpose of developing and improving meth15 ods and techniques for addressing employment and

16 training needs which may include—

17 (A) projects conducted jointly with the De18 partment of Defense to develop training pro19 grams utilizing computer-based and other inno20 vative learning technologies. The Secretary may

21 award grants and enter into contracts with ap22 propriate entities to carry out such projects;

23 and

24 (B) Projects which promote the use of dis25 tance learning, enabling students to take
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1 courses through the use of media technology

2 such as videos, teleconferencing, computers, and

3 the Internet.

4 (3) EVALUATION.—

5 (A) ACTIVITIES.—

6 (i) JOB TRAINING ACTIVITIES.—The

7 Secretary shall provide for the continuing

8 evaluation of activities conducted under

9 this Act, including the use of controlled ex10 periments using experimental and control

11 groups chosen by scientific random assign12 ment, and at a minimum, determine

13 whether job training and job placement

14 programs effectively raise the hourly wage

15 rates of individuals receiving training

16 through such programs.

17 (ii) OTHER PROGRAMS.—The Sec18 retary may conduct evaluations of other

19 federally funded employment-related activi20 ties including programs administered

21 under—

22 (I) the Wagner-Peyser Act (29

23 U.S.C. 49 et seq.);

24 (II) the National Apprenticeship

25 Act (29 U.S.C. 50 et seq.);
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1 (III) the Older Americans Act of

2 1965 (42 U.S.C. 3001 et seq.); and

3 (IV) the Federal unemployment

4 insurance program under titles III,

5 IX, and XII of the Social Security Act

6 (42 U.S.C. 501 et seq., 1101 et seq.,

7 and 1321 et seq.).

8 (B) EFFECTIVENESS.—The Secretary shall

9 evaluate the effectiveness of programs author10 ized under this Act with respect to—

11 (i) the statutory goals; and

12 (ii) the extent to which such programs

13 enhance the employment and earnings of

14 participants, reduce income support costs,

15 improve the employment competencies of

16 participants in comparison to comparable

17 persons who did not participate in such

18 programs, and to the extent feasible, in19 crease the level of total employment over

20 the level that would have existed in the ab21 sence of such programs.

22 (4) NATIONAL PARTNERSHIP AND SPECIAL

23 TRAINING.—The Secretary may award special grants

24 to eligible entities to carry out activities that are
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1 most appropriately administered at the national

2 level. Such activities may include—

3 (A) partnerships with national organiza4 tions with special expertise in developing, orga5 nizing, and administering employment and

6 training services at the national, State, and

7 local levels, such as industry and labor associa8 tions, public interests groups, community-based

9 organizations representative of groups that en10 counter special difficulties in the labor market,

11 in education and training; and

12 (B) activities that—

13 (i) address industry-wide skill short14 ages;

15 (ii) meet training needs that are best

16 addressed on a multistate basis;

17 (iii) further the goals of increasing the

18 competitiveness of the United States labor

19 force;

20 (iv) require technical expertise avail21 able at the national level to serve the needs

22 of particular client groups that encounter

23 significant barriers to employment and who

24 the Secretary determines require special

25 assistance; and
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1 (v) promote and experiment with

2 model activities, pilot projects, and dem3 onstration projects which further the goals

4 and purposes of this Act.

5 (5) CAPACITY BUILDING AND TECHNICAL AS6 SISTANCE.—

7 (A) IN GENERAL.—The Secretary shall

8 provide, through grants, contracts, or other ar9 rangements, staff training and technical assist10 ance to States, local workforce development

11 boards, career centers, communities, business

12 and labor organizations, service providers, in13 dustry consortia, and other entities, to enhance

14 their capacity to develop and deliver effective

15 employment and training services.

16 (B) ACTIVITIES.—The staff training and

17 technical assistance authorized under subpara18 graph (A) may include—

19 (i) development of management infor20 mation systems;

21 (ii) development and maintenance of a

22 national capacity building, information and

23 dissemination network; and
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1 (iii) grants for the replication of suc2 cessful employment and training models

3 and activities.

4 SEC. 324. WORKFORCE SKILLS AND DEVELOPMENT LOANS.

5 (a) AUTHORIZATION.—

6 (1) IN GENERAL.—From amounts reserved

7 under section 312(a)(2) for any fiscal year, the Sec8 retary of Labor may use a portion of such amounts

9 to provide grants to States to provide loans to eligi10 ble entities described in paragraph (2) to assist such

11 entities in providing skills upgrading.

12 (2) ELIGIBLE ENTITIES.—An eligible entity de13 scribed in this paragraph is—

14 (A) an employer;

15 (B) a representative of employees;

16 (C) a business association;

17 (D) a trade organization; or

18 (E) a consortium consisting of—

19 (i) more than 1 of the entities de20 scribed in subparagraphs (A) through (D);

21 or

22 (ii) an institution of higher education

23 (as such term is defined in section 481 of

24 the Higher Education Act of 1965 (20

25 U.S.C. 1088) which continues to meet the
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1 eligibility and certification requirements

2 under section 498 of such Act) and 1 or

3 more of the entities described in subpara4 graphs (A) through (D).

5 (b) APPLICATION.—The Secretary may provide a

6 grant to a State under subsection (a) only if such State

7 submits to the Secretary an application which contains

8 such information as the Secretary may reasonably require.

9 (c) USE OF AMOUNTS.—A State shall use amounts

10 received from a grant under subsection (a) to establish

11 a loan guarantee program to assist eligible entities de12 scribed in paragraph (2) of such subsection to provide

13 skills upgrading. In carrying out such program, the State

14 shall meet the following requirements:

15 (1) ESTABLISHMENT OF RESERVE FUND FOR

16 LOAN GUARANTEES.—The State shall establish a re17 serve fund from amounts received from such grant

18 for the purpose of making commitments to guaran19 tee the payment of principal and interest on loans

20 made by financial institutions to such eligible enti21 ties to provide skills upgrading.

22 (2) CRITERIA FOR LOAN GUARANTEES.—The

23 State, in conjunction with appropriate financial in24 stitutions, shall establish and publish criteria for

25 providing loan guarantees to eligible entities under
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1 the program, including criteria that provides for the

2 following:

3 (A) A loan guarantee may be issued under

4 the program only if, at the time such guarantee

5 is issued the eligible entity agrees to pay as an

6 insurance premium an amount equal to 1 per7 cent of the principal received by such entity

8 under the loan to the State’s reserve fund.

9 (B)(i) Subject to clause (ii), the eligible en10 tity will use amounts received from the loan to

11 provide skills upgrading for mid- and lower-level

12 employees, which may include—

13 (I) training in total quality manage14 ment, statistical process control, produc15 tion techniques, office automation, mate16 rials resource planning; and

17 (II) training to improve basic skills,

18 including reading, writing, and arithmetic.

19 (ii) In providing such skills upgrading, the

20 eligible entity shall give priority to employees

21 who—

22 (I) directly produce or deliver goods

23 or services; or

24 (II) are in danger of being terminated

25 or laid off as a result of modernization in
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1 the workplace, corporate downsizing, for2 eign or domestic competition, or Federal

3 policies adversely affecting 1 or more in4 dustries.

5 (C) Amounts from a loan shall not be used

6 to pay the wages or other benefits of any em7 ployee receiving assistance under the program.

8 (3) PAYMENT BY STATE TO FINANCIAL INSTI9 TUTIONS IN CASES OF DEFAULT.—

10 (A) IN GENERAL.—In accordance with cri11 teria developed by the Secretary, the State shall

12 make payments from the State’s reserve fund to

13 financial institutions that have provided loans

14 to eligible entities that have defaulted on such

15 loans for the purpose of reimbursing such insti16 tutions for the amount of principal and interest

17 remaining unpaid to the institutions by reason

18 of such default.

19 (B) NO FULL FAITH AND CREDIT OF THE

20 UNITED STATES.—Loans provided by financial

21 institutions to eligible entities under loan guar22 antee programs under this section shall not be

23 obligations of, or guaranteed in any respect by,

24 the United States.
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1 (4) INTEREST FROM AMOUNTS IN RESERVE

2 FUND.—Any interest earned from amounts in the

3 State’s reserve fund shall be credited to such fund.

4 (d) FEDERAL AND STATE SHARE.—

5 (1) FEDERAL SHARE.—The Federal share

6 under this section may not exceed 50 percent of the

7 total cost of the program established under sub8 section (c) for any fiscal year.

9 (2) STATE SHARE.—The State share shall be

10 provided from non-Federal sources and may be in

11 cash or in-kind, fairly evaluated.

12 SEC. 325. EMPLOYMENT, TRAINING, AND EDUCATION AS13 SISTANCE FOR NATIVE AMERICANS.

14 (a) AUTHORIZATION.—From amounts reserved under

15 section 4(a)(2) for any fiscal year, there shall be reserved

16 4 percent, or $85,000,000, whichever is less, to provide

17 grants to, or enter into contracts or cooperative agree18 ments with, Indian tribes and tribal organizations, trib19 ally-controlled colleges, tribally-controlled postsecondary

20 vocational institutions, Indian-controlled organizations

21 serving off-reservation areas, Alaska Native village and re22 gional entities serving areas as described in the Alaska

23 Native Claims Settlement Act and Hawaiian Native-con24 trolled organizations to provide employment, training, vo-
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1 cational rehabilitation, library services, and education as2 sistance for Native Americans.

3 (b) TRANSFER OF AUTHORITY FOR VOCATIONAL

4 EDUCATION ACTIVITIES.—In carrying out subsection (a),

5 the Secretary of Labor may enter into an agreement with

6 the Secretary of Education to carry out any portion of

7 assistance under such subsection devoted to vocational

8 educational activities, including support for the United

9 Tribes Technical College and Crownpoint Institute of

10 Technology.

11 (c) CONSOLIDATION OF FUNDS.—Entities receiving

12 assistance under subsection (a) may consolidate such as13 sistance with assistance received from related programs in

14 accordance with the provisions of the Indian Employment,

15 Training and Related Services Demonstration Act (Public

16 Law 102–477).

17 (d) REGULATIONS.—The Secretary shall consult with

18 Indian, Alaska Native and Hawaiian Native groups in es19 tablishing regulations to carry out this section, including

20 performance standards for entities receiving assistance

21 under subsection (a), taking into account the economic cir22 cumstances of such groups.
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1 SEC. 326. EMPLOYMENT, TRAINING, AND EDUCATION AS2 SISTANCE FOR MIGRANT AND SEASONAL

3 FARMWORKERS.

4 (a) AUTHORIZATION.—

5 (1) IN GENERAL.—From amounts reserved

6 under section 4(a)(2) for any fiscal year, there shall

7 be reserved 4 percent, or $85,000,000, whichever is

8 less, to provide grants to, or enter into contracts or

9 cooperative agreements with, entities described in

10 paragraph (2) to provide employment, training, and

11 education assistance for migrant and seasonal farm12 workers.

13 (2) ENTITIES DESCRIBED.—An entity described

14 in this paragraph is an entity the Secretary deter15 mines to have the capacity to administer effectively

16 a diversified workforce development program for mi17 grant and seasonal farmworkers.

18 (b) USE OF AMOUNTS.—An entity shall use amounts

19 received under subsection (a) to provide employment,

20 training, educational development, high school equiva21 lency, postsecondary education assistance, vocational reha22 bilitation, literacy, English as a second language, work23 based education and development, worker safety training,

24 employability enhancements, emergency or other disaster

25 relief, housing, technical assistance, outreach, intake, as26 sessment, follow-up, stipend support, supportive services,
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1 other needs-based assistance, self-employment and related

2 business enterprise development education, and the man3 agement of a database on participating migrant and sea4 sonal farmworkers.

5 (c) REGULATIONS.—The Secretary shall consult with

6 seasonal and migrant farmworker groups in establishing

7 regulations to carry out this section, including perform8 ance standards for entities receiving assistance under sub9 section (a)(2), taking into account the economic cir10 cumstances of such groups.

11 TITLE IV—ADULT EDUCATION

12 AND FAMILY LITERACY CON13 SOLIDATION GRANT AND LI14 BRARY SERVICES AND TECH15 NOLOGY CONSOLIDATION

16 GRANT

17 SEC. 401. FINDINGS.

18 The Congress finds as follows:

19 (1) According to the 1990 census, 21 percent of

20 our Nation’s adults (more than 38 million persons)

21 lack a high school credential or are limited English

22 proficient.

23 (2) The National Adult Literacy Survey, con24 ducted under the Adult Education Act, found that

25 20 percent of all adults in the United States, or
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1 about 40 million people, have minimal levels of lit2 eracy skills and that the lack of such skills is related

3 to unemployment, low wages, and fewer weeks

4 worked.

5 (3) The success of State efforts to reform and

6 improve public education are dependent on the abil7 ity of the United States to break intergenerational

8 cycles of illiteracy and inadequate education by en9 suring that parents possess a strong educational

10 foundation and, as the first and most continuous

11 teachers of their children, model for, and instill in,

12 their children a commitment to family literacy and

13 life-long learning.

14 (4) Generations of immigrants have contributed

15 to our communities and our economy, but for them

16 to continue to do so given recent technologies and

17 the competitive global economy, they must master

18 English as rapidly as possible.

19 (5) Studies have found that incarcerated adults

20 are twice as likely as nonincarcerated adults to lack

21 a good education and that such lack is a significant

22 statistical indicator of recidivism.

23 (6) Certain short-term and long-term goals of

24 the Nation may not be met unless the United States
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1 improves its current system of adult education and

2 life-long learning through Federal leadership.

3 SEC. 402. DEFINITIONS.

4 As used in this title:

5 (1) CORRECTIONAL EDUCATION AGENCY.—The

6 term ‘‘correctional education agency’’ means an en7 tity that provides programs for criminal offenders in

8 corrections institutions and for other institutional9 ized individuals which include academic programs

10 for basic education, special education, bilingual or

11 English language instruction, vocational training, li12 brary development, corrections education programs,

13 guidance and counseling, and other supportive serv14 ices for criminal offenders which may emphasize co15 ordination of educational services with educational

16 institutions, community-based organizations of de17 monstrative effectiveness, and the private sector, de18 signed to provide education and training.

19 (2) EDUCATIONALLY DISADVANTAGED

20 ADULT.—The term ‘‘educationally disadvantaged

21 adult’’ means an adult who—

22 (A) demonstrates basic skills equivalent to

23 or below that of students at the fifth grade

24 level; or
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1 (B) has been placed in the lowest or begin2 ning level of an adult education program when

3 that program does not use grade level equiva4 lencies as a measure of students’ basic skills.

5 (3) FAMILY LITERACY SERVICES.—The term

6 ‘‘family literacy services’’ means services that are of

7 sufficient intensity in terms of hours, and of suffi8 cient duration, to make sustainable changes in a

9 family and that integrate all of the following activi10 ties:

11 (A) Interactive literacy activities between

12 parents and their children.

13 (B) Training for parents on how to be

14 their children’s primary teacher and full part15 ners in the education of their children.

16 (C) Parent literacy training.

17 (D) An age-appropriate education program

18 for children.

19 (4) SECRETARY.—The term ‘‘Secretary’’ means

20 the Secretary of Education.
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1 Subtitle A—Adult Education and

2 Family Literacy Consolidation

3 Grant

4 SEC. 411. PURPOSES.

5 The purposes of this subtitle are to assist States to

6 provide—

7 (1) to adults, the basic educational skills nec8 essary for employment and self-sufficiency;

9 (2) to adults who are parents, the educational

10 skills necessary to be full partners in the educational

11 development of their children;

12 (3) to adults, the basic English language skills

13 necessary to participate in the civic, social, and eco14 nomic life of the United States; and

15 (4) to adults, the opportunity to attain a high

16 school degree or its equivalent in order to permit

17 them to pursue further education and training or

18 improve their family and work situations.

19 CHAPTER 1—FUNDING

20 SEC. 421. RESERVATIONS FROM AMOUNTS APPROPRIATED.

21 (a) NATIONAL INSTITUTE FOR LITERACY.—For any

22 fiscal year, the Secretary shall reserve $4,500,000 of the

23 amount appropriated under section 4(a)(3) to carry out

24 the activities of the National Institute for Literacy de25 scribed in section 441.
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1 (b) NATIONAL LEADERSHIP ACTIVITIES.—For any

2 fiscal year, the Secretary shall reserve $4,500,000 of the

3 amount appropriated under section 4(a)(3) to establish

4 and carry out the program of national leadership and eval5 uation activities described in section 442.

6 SEC. 422. ALLOTMENT.

7 (a) INITIAL ALLOTMENT.—From the sums available

8 for the purpose of making grants under chapter 2 for any

9 fiscal year, the Secretary shall allot—

10 (1) $100,000 each to Guam, American Samoa,

11 the Commonwealth of the Northern Mariana Is12 lands, and the Virgin Islands; and

13 (2) $250,000 to each of the other States.

14 (b) ADDITIONAL ALLOTMENT.—

15 (1) IN GENERAL.—From the remainder of the

16 sums described in subsection (a) after the applica17 tion of the subsection, the Secretary shall allot to

18 each State an amount which bears the same ratio to

19 such remainder as the number of qualifying adults

20 in the State bears to the number of such adults in

21 all States.

22 (2) QUALIFYING ADULT.—For purposes of this

23 subsection, the term ‘‘qualifying adult’’ means an

24 adult who—
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1 (A) is at least 16 years of age, but less

2 than 61 years of age;

3 (B) is beyond the age of compulsory school

4 attendance under State law;

5 (C) does not have a certificate of gradua6 tion from a school providing secondary edu7 cation (or its equivalent); and

8 (D) is not currently enrolled in elementary

9 or secondary school.

10 CHAPTER 2—GRANTS TO STATES

11 SEC. 431. REQUIREMENT TO MAKE GRANTS.

12 For fiscal year 1997 and subsequent fiscal years, the

13 Secretary shall make a grant to a State in an amount

14 equal to the initial and additional allotments of the State

15 for the year if the State—

16 (1) has satisfied the requirements of title I and

17 section 433(a)(1);

18 (2) agrees not to expend the grant for any pur19 pose other than in accordance with section 432;

20 (3) agrees to satisfy the grant requirements in

21 section 433(a)(2) and 433(b); and

22 (4) agrees not to expend the grant for the pur23 pose of supporting or providing programs, services,

24 or activities for individuals who are not adults, ex-
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1 cept if such programs, services, or activities are re2 lated to family literacy services.

3 SEC. 432. USES OF FUNDS.

4 (a) STATE USES OF FUNDS.—

5 (1) GRANTS TO SERVE TARGET POPU6 LATIONS.—

7 (A) IN GENERAL.—Of the funds paid to a

8 State under this title for fiscal year 1998 and

9 subsequent fiscal years, 3 percent shall be dis10 tributed as performance grants made by the

11 State on a competitive basis, and consistent

12 with subsection (b) and section 433(b)(2), to

13 local service providers that have provided, dur14 ing the immediately preceding fiscal year, adult

15 education or family literacy services to the tar16 get populations described in subparagraph (C).

17 (B) LOCAL SERVICE PROVIDERS.—The

18 local service providers referred to in subpara19 graph (A) may include the following:

20 (i) Local educational agencies.

21 (ii) Correctional educational agencies.

22 (iii) Community-based organizations.

23 (iv) Public or private nonprofit agen24 cies.

25 (v) Institutions of higher education.
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1 (vi) Libraries.

2 (vii) Other institutions that the State

3 determines to have the ability to provide

4 literacy services to adults and families.

5 (C) TARGET POPULATIONS.—The target

6 populations referred to in subparagraph (A) are

7 the following:

8 (i) Adults with more than one barrier

9 to self-sufficiency, such as being unem10 ployed or an educationally disadvantaged

11 adult.

12 (ii) Families on public assistance (as

13 determined by the State).

14 (iii) Parents who are educationally

15 disadvantaged adults and who have a child

16 who is less than 8 years of age.

17 (iv) Adults who are individuals with

18 disabilities or who have similar special

19 needs.

20 (2) GRANTS TO LOCAL SERVICE PROVIDERS.—

21 Of the funds paid to a State under this subtitle for

22 any fiscal year that remain after the application of

23 paragraph (1), at least 85 percent shall be distrib24 uted as grants made by the State on a competitive

25 basis, and consistent with subsection (b) and section
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1 433(b)(2), to local service providers to establish,

2 conduct, or expand programs, services, or activities

3 to achieve a purpose of this subtitle. Such local serv4 ice providers may include the local service providers

5 described in paragraph (1)(B).

6 (3) OTHER STATE ACTIVITIES.—A State may

7 use not more than 12 percent of the funds paid to

8 the State under this subtitle for any fiscal year that

9 remain after the application of paragraph (1) for

10 one or more of the following purposes:

11 (A) The establishment or operation of pro12 fessional development programs to improve the

13 quality of instruction provided in local adult

14 education and literacy programs, including in15 struction provided by volunteers.

16 (B) The provision of technical assistance

17 to local service providers.

18 (C) The provision of technology assistance

19 to local service providers to enable them to im20 prove the quality of their programs, services,

21 and activities that achieve a purpose of this

22 subtitle, including—

23 (i) providing hardware and software;
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1 (ii) paying for service connection fees

2 associated with gaining access to comput3 erized databases; and

4 (iii) upgrading the technological capa5 bilities of local service providers to improve

6 the quality of their services and to assist

7 them in providing services on a flexible

8 schedule that meets the needs of diverse

9 populations.

10 (D) The support of State or regional net11 works of literacy resource centers that—

12 (i) enhance the coordination of lit13 eracy services across public and private

14 programs and State agencies;

15 (ii) enhance the capacity of the State

16 and local service providers to provide lit17 eracy services through the diffusion and

18 adoption of state-of-the-art teaching meth19 ods and technologies;

20 (iii) provide linkages between the Na21 tional Institute for Literacy established

22 under section 441 and local service provid23 ers for the sharing of literacy information,

24 research, and resources;
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1 (iv) encourage government and indus2 try partnerships; and

3 (v) provide training and technical as4 sistance to literacy instructors in reading

5 instruction, the use of state-of-the-art

6 methodologies, instructional materials, and

7 technologies, and professional development.

8 (E) Monitoring and evaluating the quality

9 of, and the improvement in, services and activi10 ties conducted with Federal financial assistance

11 under this subtitle, including carrying out sec12 tion 433(a)(2).

13 (F) The support of a common management

14 information system as described in section 109.

15 (G) Carrying out other activities of state16 wide significance that promote the purposes of

17 this Act.

18 (4) ADMINISTRATIVE EXPENSES.—For any fis19 cal year, a State may use not more than 3 percent

20 of the funds paid to the State under this subtitle

21 that remain after the application of paragraph (1) or

22 $50,000, whichever is greater, for—

23 (A) planning, administration, and inter24 agency coordination associated with a grant

25 under this subtitle; and
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1 (B) support for integrated career center

2 systems described in section 107.

3 (b) LOCAL USES OF FUNDS.—A State shall require

4 that a local service provider that receives a grant from

5 the State under paragraph (1) or (2) of subsection (a)

6 use the grant to establish or operate one or more programs

7 that provide instruction or services within one or more of

8 the following categories:

9 (1) Adult basic education that is designed for

10 an adult who—

11 (A) has minimal competence in reading,

12 writing, or computation;

13 (B) is not sufficiently competent in read14 ing, writing, or computation to meet the re15 quirements of adult life in the United States; or

16 (C) is not sufficiently competent in speak17 ing, reading, or writing the English language to

18 obtain employment commensurate with the

19 adult’s intellectual abilities.

20 (2) Adult secondary education that is designed

21 for an adult who is literate and can function in ev22 eryday life, but who—

23 (A) has not acquired basic educational

24 skills, including reading, writing, and computa25 tion; or
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1 (B) does not have a certificate of gradua2 tion from a school providing education to stu3 dents in grade 12, or its equivalent.

4 (3) English literacy instruction that is designed

5 for an adult—

6 (A) who—

7 (i) has limited ability in speaking,

8 reading, writing, or understanding the

9 English language and whose native lan10 guage is a language other than English; or

11 (ii) lives in a family or community en12 vironment where a language other than

13 English is the dominant language; and

14 (B) who, by reason of a condition de15 scribed in subparagraph (A), has sufficient dif16 ficulty reading, writing, or understanding the

17 English language that the adult is unable—

18 (i) to learn successfully in a classroom

19 where the language of instruction is Eng20 lish; or

21 (ii) to participate fully in the society

22 of the United States.

23 (4) Family literacy services.

24 (c) AUTHORIZATION TO RECEIVE PAYMENTS FROM

25 OTHER PROGRAMS.—A local service provider that receives
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1 a grant from a State under paragraph (1) or (2) of sub2 section (a), and that provides adult education and literacy

3 services to an adult who was referred to the provider by

4 a program supported under title II or III, may receive pay5 ment for the services from the program, either in the form

6 of a career grant or by some other means.

7 SEC. 433. ADDITIONAL GRANT REQUIREMENTS.

8 (a) GOALS, PROGRESS INDICATORS, PERFORMANCE

9 MEASURES.—

10 (1) PLANNING REQUIREMENTS.—A State that

11 desires to receive a grant under this subtitle shall

12 accomplish the following:

13 (A) Establish, through the collaborative

14 process described in section 103, measurable

15 goals for improving literacy levels, retention in

16 literacy programs, and long-term learning gains

17 of individuals in the State.

18 (B) Based on such goals and the perform19 ance measures described in section 110(f), es20 tablish, through such collaborative process,

21 progress indicators to be used to evaluate the

22 performance of local service providers receiving

23 a grant under paragraph (1) or (2) of section

24 432(a).
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1 (C) Describe such goals and progress indi2 cators in the State workforce development and

3 literacy plan submitted to the Secretary under

4 section 104.

5 (2) IMPLEMENTATION REQUIREMENTS.—A

6 State that receives a grant under this subtitle shall

7 accomplish the following:

8 (A) With respect to each local service pro9 vider receiving a grant under paragraph (1) or

10 (2) of section 432(a), based on the goals and

11 progress indicators established under paragraph

12 (1), measure the performance measures de13 scribed in section 110(f) and use the data pro14 duced by such measurement to improve the

15 quality of services provided to program partici16 pants or service recipients.

17 (B) Beginning on the date that is 2 years

18 after the first date that a local service provider

19 receives a grant under paragraph (1) or (2) of

20 section 432(a), annually assess the degree to

21 which the provider is meeting or exceeding the

22 progress indicators applicable to the provider.

23 (C) Annually report to the Secretary on

24 the performance measures described in section

25 434 for each category described in such section.
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1 (b) OTHER REQUIREMENTS.—A State that receives

2 a grant under this subtitle shall ensure the following:

3 (1) EXPENDITURES OF NON-FEDERAL

4 FUNDS.—For any fiscal year for which a grant is

5 made to the State under this subtitle, the State shall

6 expend, on programs and activities relating to adult

7 education and family literacy services, an amount,

8 derived from sources other than the Federal Govern9 ment, equal to 25 percent of the State’s initial and

10 additional allotments for the year.

11 (2) PRIORITY FOR PLANNING WITH BOARDS

12 AND SYSTEMS.—In awarding grants to local service

13 providers under paragraph (1) or (2) of section

14 432(a), the State shall give priority to providers that

15 demonstrate joint planning with local workforce de16 velopment boards and integrated career center sys17 tems.

18 (3) EQUITABLE ACCESS.—Local educational

19 agencies, public or private nonprofit agencies, com20 munity-based organizations, correctional education

21 agencies, institutions of higher education, libraries,

22 and institutions which serve educationally disadvan23 taged adults shall be provided direct and equitable

24 access to Federal funds provided under this subtitle

25 in accordance with this subtitle.
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1 (4) PAYMENTS BY LOCAL WORKFORCE DEVEL2 OPMENT BOARDS TO LOCAL SERVICE PROVIDERS.—

3 A local service provider that receives a grant from

4 a State under paragraph (1) or (2) of section 432(a)

5 may negotiate with a local workforce development

6 board with respect to receipt of payments for adult

7 education and literacy services provided by the pro8 vider to adults referred to the provider by a program

9 supported under title II or III.

10 CHAPTER 3—NATIONAL PROGRAMS

11 SEC. 441. NATIONAL INSTITUTE FOR LITERACY.

12 (a) ESTABLISHMENT.—

13 (1) IN GENERAL.—There shall be established a

14 National Institute for Literacy (in this section re15 ferred to as the ‘‘Institute’’). The Institute shall be

16 administered under the terms of an interagency

17 agreement entered into by the Secretary of Edu18 cation with the Secretary of Labor and the Secretary

19 of Health and Human Services (in this section re20 ferred to as the ‘‘Interagency Group’’). The Sec21 retary may include in the Institute any research and

22 development center, institute, or clearinghouse estab23 lished within the Department of Education whose

24 purpose is determined by the Secretary to be related

25 to the purpose of the Institute.
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1 (2) BOARD RECOMMENDATIONS.—The Inter2 agency Group shall consider the recommendations of

3 the National Institute for Literacy Advisory Board

4 (in this section referred to as the ‘‘Board’’) estab5 lished under subsection (d) in planning the goals of

6 the Institute and in the implementation of any pro7 grams to achieve such goals.

8 (3) DAILY OPERATIONS.—The daily operations

9 of the Institute shall be carried out by the Director

10 of the Institute appointed under subsection (g).

11 (b) DUTIES.—

12 (1) IN GENERAL.—The Institute shall—

13 (A) provide national leadership for the im14 provement and expansion of the system for de15 livery of literacy services;

16 (B) coordinate the delivery of such serv17 ices;

18 (C) support the creation of new methods of

19 offering improved services;

20 (D) serve as a national resource for adult

21 education and family literacy services by provid22 ing to the public the best and most current in23 formation available on the subjects; and

24 (E) assist States in developing levels of

25 performance.
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1 (2) AUTHORIZED ACTIVITIES.—In order to

2 carry out the duties described in paragraph (1), the

3 Institute may—

4 (A) establish a national electronic database

5 of information that includes—

6 (i) information on—

7 (I) effective practices in the pro8 vision of literacy and basic skills in9 struction;

10 (II) public and private literacy

11 and basic skills programs and Fed12 eral, State, and local policies affecting

13 the provision of literacy services at the

14 national, State, and local levels; and

15 (III) technical assistance, meet16 ings, conferences, and other opportu17 nities that lead to the improvement of

18 literacy and basic skills services; and

19 (ii) a communication network for lit20 eracy programs, providers, and students;

21 (B) coordinate support for the provision of

22 literacy and basic skills services across Federal

23 agencies and at the State and local level;

24 (C) coordinate the support of research and

25 development on literacy and basic skills in fami-
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1 lies and adults across Federal agencies and

2 carry out basic and applied research and devel3 opment on topics that are not being inves4 tigated by other organizations or agencies;

5 (D) collect and disseminate information on

6 methods of advancing literacy that show prom7 ise of success; and

8 (E) assist in the development of policy

9 with respect to literacy and basic skills.

10 (3) GRANTS, CONTRACTS, AND AGREEMENTS.—

11 The Institute may enter into contracts or coopera12 tive agreements with, or make grants to, individuals,

13 public or private institutions, agencies, organiza14 tions, or consortia of such institutions, agencies, or

15 organizations to carry out the activities of the Insti16 tute. Such grants, contracts, or agreements shall be

17 subject to the laws and regulations that generally

18 apply to grants, contracts, or agreements entered

19 into by Federal agencies.

20 (c) LITERACY LEADERSHIP.—

21 (1) FELLOWSHIPS.—The Institute, in consulta22 tion with the Board, may award fellowships, with

23 such stipends and allowances as the Director consid24 ers necessary, to outstanding individuals pursuing
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1 careers in adult education or literacy in the areas of

2 instruction, management, research, or innovation.

3 (2) USE OF FELLOWSHIPS.—Fellowships

4 awarded under this subsection shall be used, under

5 the auspices of the Institute, to engage in research,

6 education, training, technical assistance, or other ac7 tivities to advance the field of adult education or lit8 eracy, including the training of volunteer literacy

9 providers at the national, State, or local level.

10 (3) INTERNS AND VOLUNTEERS.—The Insti11 tute, in consultation with the Board, may award

12 paid and unpaid internships to individuals seeking to

13 assist the Institute in carrying out its mission. Not14 withstanding section 1342 of title 31, United States

15 Code, the Institute may accept and use voluntary

16 and uncompensated services as the Institute deter17 mines necessary.

18 (d) NATIONAL INSTITUTE FOR LITERACY ADVISORY

19 BOARD.—

20 (1) ESTABLISHMENT.—

21 (A) IN GENERAL.—There shall be a Na22 tional Institute for Literacy Advisory Board.

23 The Board shall consist of 10 individuals ap24 pointed by the President with the advice and

25 consent of the Senate from individuals who—
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1 (i) are not otherwise officers or em2 ployees of the Federal Government; and

3 (ii) are representative of entities or

4 groups described in subparagraph (B).

5 (B) ENTITIES OR GROUPS DESCRIBED.—

6 The entities or groups referred to in subpara7 graph (A) are—

8 (i) literacy organizations and provid9 ers of literacy services, including—

10 (I) nonprofit providers of literacy

11 services;

12 (II) providers of programs and

13 services involving English language in14 struction; and

15 (III) providers of services receiv16 ing assistance under this subtitle;

17 (ii) businesses that have demonstrated

18 interest in literacy programs;

19 (iii) literacy students;

20 (iv) experts in the area of literacy re21 search;

22 (v) State and local governments; and

23 (vi) representatives of employees.

24 (2) DUTIES.—The Board shall—
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1 (A) make recommendations concerning the

2 appointment of the Director and staff of the In3 stitute;

4 (B) provide independent advice on the op5 eration of the Institute; and

6 (C) receive reports from the Interagency

7 Group and the Director.

8 (3) TERMS.—

9 (A) IN GENERAL.—Each member of the

10 Board shall be appointed for a term of 3 years,

11 except that the initial terms for members may

12 be 1, 2, or 3 years in order to establish a rotation in which 1 13 ⁄3 of the members are selected

14 each year.

15 (B) VACANCY APPOINTMENTS.—Any mem16 ber appointed to fill a vacancy occurring before

17 the expiration of the term for which the mem18 ber’s predecessor was appointed shall be ap19 pointed only for the remainder of that term. A

20 member may serve after the expiration of that

21 members’ term until a successor has taken of22 fice. A vacancy in the Board shall be filled in

23 the manner in which the original appointment

24 was made. A vacancy in the Board shall not af25 fect the powers of the Board.
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1 (4) QUORUM.—A majority of the members of

2 the Board shall constitute a quorum but a lesser

3 number may hold hearings. Any recommendation

4 may be passed only by a majority of its members

5 present.

6 (5) CHAIRPERSON AND VICE CHAIRPERSON.—

7 The chairperson and vice chairperson of the Board

8 shall be elected by the members. The term of office

9 of the chairperson and vice chairperson shall be 1

10 year.

11 (6) MEETINGS.—The Board shall meet at the

12 call of the chairperson or a majority of its members.

13 (e) GIFTS, BEQUESTS, AND DEVISES.—The Institute

14 may accept, administer, and use gifts or donations of serv15 ices, money, or property, both real and personal.

16 (f) MAILS.—The Board and the Institute may use the

17 United States mails in the same manner and under the

18 same conditions as other departments and agencies of the

19 United States.

20 (g) STAFF.—The Interagency Group, after consider21 ing recommendations made by the Board, shall appoint

22 and fix the pay of a Director.

23 (h) APPLICABILITY OF CERTAIN CIVIL SERVICE

24 LAWS.—The Director and staff of the Institute may be

25 appointed without regard to the provisions of title 5,
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1 United States Code, governing appointments in the com2 petitive service, and may be paid without regard to the

3 provisions of chapter 51 and subchapter III of chapter 53

4 of that title relating to classification and General Schedule

5 pay rates, except that an individual so appointed may not

6 receive pay in excess of the maximum rate payable under

7 section 5376 of title 5, United States Code.

8 (i) EXPERTS AND CONSULTANTS.—The Board and

9 the Institute may procure temporary and intermittent

10 services under section 3109(b) of title 5, United States

11 Code.

12 (j) REPORT.—The Institute shall submit a biennial

13 report to the Interagency Group and the Congress.

14 SEC. 442. NATIONAL LEADERSHIP ACTIVITIES.

15 (a) IN GENERAL.—The Secretary shall establish and

16 carry out a program of national leadership and evaluation

17 activities to enhance the quality of adult education and

18 family literacy programs nationwide.

19 (b) REQUIRED ACTIVITY.—

20 (1) IN GENERAL.—The program of national

21 leadership and evaluation activities under subsection

22 (a) shall include a national evaluation, conducted by

23 the Secretary, of the programs and activities carried

24 out by States and local service providers with Fed-
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1 eral funds received under this subtitle. Such evalua2 tion shall include information on the following:

3 (A) The manner in which States and local

4 service providers use Federal funds, including

5 the manner in which States allocate such funds

6 among such providers.

7 (B) The manner in which States establish

8 goals and performance standards and use such

9 goals and standards to manage and improve

10 programs.

11 (C) The effectiveness of the funds used

12 under subparagraphs (B) and (C) of section

13 432(a)(3).

14 (D) The manner in which economically dis15 advantaged individuals and educationally dis16 advantaged adults are being served by States

17 and local service providers.

18 (E) The coordination between programs

19 and activities carried out with Federal funds re20 ceived under titles II and III and programs and

21 activities carried out with Federal funds re22 ceived under this subtitle.

23 (F) The percentage of individuals receiving

24 a service from an integrated career center sys25 tem who are referred by such system to a local
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1 service provider providing adult education or lit2 eracy services.

3 (2) REPORT.—Not later than September 30,

4 2001, the Secretary shall provide to the Congress

5 and publicly publish the results of the evaluation

6 conducted under paragraph (1).

7 (c) AUTHORIZED ACTIVITIES.—

8 (1) IN GENERAL.—The program of national

9 leadership and evaluation activities under subsection

10 (a) may include the following:

11 (A) Assisting States in developing levels of

12 performance.

13 (B) Research and development.

14 (C) Demonstration of model and innovative

15 programs.

16 (D) Evaluations, including independent

17 evaluations of adult education and family lit18 eracy programs carried out with financial as19 sistance received pursuant to this subtitle.

20 (E) Data collection.

21 (F) Professional development.

22 (G) Technical assistance to States and

23 local service providers receiving Federal finan24 cial assistance pursuant to this subtitle.
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1 (H) Making grants to State or regional

2 networks of literacy resource centers described

3 in section 432(a)(3)(D).

4 (I) Other activities to enhance the quality

5 of adult education and family literacy programs

6 nationwide.

7 (2) GRANTS, CONTRACTS, AND COOPERATIVE

8 AGREEMENTS.—The Secretary may carry out the ac9 tivities described in paragraph (1) directly or

10 through grants, contracts, and cooperative agree11 ments.

12 Subtitle B—Library Services and

13 Technology Consolidation Grant

14 SEC. 451. PURPOSES.

15 The purposes of this subtitle are—

16 (1) to consolidate Federal library service pro17 grams;

18 (2) to improve public access to information

19 through electronic networks; and

20 (3) to provide linkages among and between li21 braries and integrated career center systems.

22 SEC. 452. AUTHORIZATION OF APPROPRIATIONS.

23 (a) IN GENERAL.—There are authorized to be appro24 priated to carry out this subtitle $110,000,000 for each

25 of the fiscal years 1997 through 2002.
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1 (b) ADVANCE NOTICE OF FUNDING.—For the pur2 pose of affording adequate notice of funding available

3 under this subtitle, an appropriation to carry out this sub4 title is authorized to be included in an appropriation Act

5 for the fiscal year preceding the fiscal year for which such

6 appropriation is first available for obligation.

7 SEC. 453. ALLOTMENTS.

8 (a) INITIAL ALLOTMENTS.—

9 (1) IN GENERAL.—From the sums appropriated

10 under section 452 for any fiscal year, the Secretary

11 shall allot—

12 (A) $40,000 each to Guam, American

13 Samoa, the Commonwealth of the Northern

14 Mariana Islands, and the Virgin Islands; and

15 (B) $200,000 to each of the other States.

16 (2) RATABLE REDUCTION.—If the sums appro17 priated under section 452 for any fiscal year are in18 sufficient to pay all of the allotments under para19 graph (1), each such allotment shall be ratably re20 duced.

21 (b) ADDITIONAL ALLOTMENTS.—

22 (1) IN GENERAL.—From the remainder of the

23 sums appropriated under section 452 for any fiscal

24 year after the application of subsection (a), the Sec25 retary shall allot to each State an amount which
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1 bears the same ratio to such remainder as the popu2 lation of the State bears to the population of all

3 States.

4 (2) DETERMINATION OF POPULATION OF

5 STATES.—For the purpose of this subsection, the

6 population of each State, and the total population of

7 all States, shall be determined by the Secretary on

8 the basis of the most recent census data available to

9 the Secretary, and the Secretary shall use for such

10 purpose, if available, the annual interim current cen11 sus data produced by the Secretary of Commerce

12 pursuant to section 181 of title 13, United States

13 Code.

14 SEC. 454. GRANTS TO STATES.

15 (a) IN GENERAL.—The Secretary shall make a grant

16 for a fiscal year to a State if the State—

17 (1) has submitted to the Secretary for the year

18 an annual application that has been approved by the

19 Secretary under section 456; and

20 (2) has entered into a written agreement with

21 the Secretary that—

22 (A) the State will provide 100 percent of

23 the funds paid to the State under this subtitle

24 for the year to the State library administrative

25 agency for the State;
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1 (B) such agency will be required to use

2 such funds to carry out activities that—

3 (i) are described in such annual appli4 cation;

5 (ii) achieve the purposes of this sub6 title; and

7 (iii) satisfy the requirements of sec8 tion 455;

9 (C) there will be available from State and

10 local sources for expenditure by such agency to

11 carry out such activities an amount that equals

12 or exceeds 25 percent of the total cost (as de13 termined by the Secretary) of carrying out such

14 activities for the year; and

15 (D) such agency has the fiscal and legal

16 authority and capability to administer all as17 pects of such activities.

18 (b) AMOUNT OF GRANTS.—The amount of a grant

19 to a State under subsection (a) for a fiscal year shall equal

20 the lesser of the following:

21 (1) The sum of the initial and additional allot22 ments of the State for the year.

23 (2) 75 percent of the total cost (as determined

24 by the Secretary) of carrying out the activities de25 scribed in subsection (a)(2)(B) for the year.
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1 SEC. 455. USES OF FUNDS.

2 (a) IN GENERAL.—Of the funds provided to a State

3 library administrative agency under section 454(a)(2)(A),

4 the agency shall expend (either directly or through

5 subgrants or cooperative agreements) at least 97 percent

6 for one or more of the following purposes:

7 (1) Electronically connecting libraries with inte8 grated career center systems designated or estab9 lished under section 107 and local service providers

10 receiving grants under paragraph (1) or (2) of sec11 tion 432(a).

12 (2) Establishing or enhancing linkages among

13 libraries.

14 (3) Assisting libraries in accessing information

15 through electronic networks.

16 (4) Encouraging libraries in different Federal,

17 State, and local jurisdictions, and different types of

18 libraries, to establish consortia and share resources.

19 (5) Paying costs for libraries to acquire or

20 share computer systems and telecommunications

21 technologies.

22 (6) Improving library and information services

23 for individuals who have difficulty using a library or

24 who need special library materials or services, in25 cluding individuals under the age of 18.
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1 (b) ADMINISTRATIVE EXPENSES.—In any fiscal year,

2 a State library administrative agency may use not more

3 than 3 percent of the funds provided to the agency under

4 section 454(a)(2)(A) for planning, administration, evalua5 tions, and interagency coordination associated with a

6 grant under this subtitle.

7 SEC. 456. ANNUAL APPLICATIONS.

8 (a) SUBMISSION.—A State that desires to receive a

9 grant under this subtitle for a fiscal year shall submit to

10 the Secretary, in such form and manner and before such

11 deadline as the Secretary shall specify in regulations, an

12 application for such year. Such application shall—

13 (1) establish goals, and specify priorities, for

14 the State consistent with the purposes of this sub15 title;

16 (2) describe activities that are consistent with

17 such goals and priorities, the purposes of this sub18 title, and the requirements of section 455 that the

19 State library administrative agency will carry out

20 during such year using such grant;

21 (3) describe the procedures that such agency

22 will use to carry out such activities;

23 (4) describe the methodology that such agency

24 will use to evaluate the success of such activities in

25 achieving such goals and meeting such priorities;
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1 (5) describe procedures that such agency will

2 use to involve libraries and library users throughout

3 the State in policy decisions regarding implementa4 tion of this subtitle; and

5 (6) provide assurances satisfactory to the Sec6 retary that such agency will make such reports, in

7 such form and containing such information, as the

8 Secretary may reasonably require to carry out this

9 subtitle and to determine the extent to which funds

10 provided under this subtitle have been effective in

11 carrying out its purposes.

12 (b) APPROVAL.—

13 (1) IN GENERAL.—The Secretary shall approve

14 each application submitted under subsection (a) that

15 satisfies the requirements of the subsection.

16 (2) RIGHTS OF STATES UPON DISAPPROVAL.—

17 If the Secretary determines that an application sub18 mitted by a State under subsection (a) does not sat19 isfy the requirements of such subsection, the Sec20 retary shall—

21 (A) immediately notify the State of such

22 determination and the reasons for such deter23 mination; and

24 (B) offer the State an opportunity to re25 vise its application to correct any deficiencies.
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1 TITLE V—MISCELLANEOUS

2 PROVISIONS

3 SEC. 501. EFFECT ON REHABILITATION ACT OF 1973.

4 Notwithstanding any other provision of this Act, this

5 Act does not have any legal effect on any program under

6 the Rehabilitation Act of 1973.

7 TITLE VI—HIGHER EDUCATION

8 PRIVATIZATION

9 SEC. 601. REORGANIZATION OF THE STUDENT LOAN MAR10 KETING ASSOCIATION THROUGH THE FOR11 MATION OF A HOLDING COMPANY.

12 (a) AMENDMENT.—Part B of title IV of the Higher

13 Education Act of 1965 (20 U.S.C. 1071 et seq.) is amend14 ed by inserting after section 439 (20 U.S.C. 1087–2) the

15 following new section:

16 ‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MAR17 KETING ASSOCIATION THROUGH THE FOR18 MATION OF A HOLDING COMPANY.

19 ‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DI20 RECTORS.—The Board of Directors of the Association

21 shall take or cause to be taken all such action as it deems

22 necessary or appropriate to effect, upon the shareholder

23 approval described in subsection (b), a restructuring of the

24 common stock ownership of the Association, as set forth

25 in a plan of reorganization adopted by the Board of Direc-
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1 tors (the terms of which shall be consistent with this Act)

2 so that all of the outstanding common shares shall be di3 rectly owned by an ordinary business corporation char4 tered under State or District of Columbia law (the ‘Hold5 ing Company’), as the Board of Directors may determine.

6 Such actions may include, in the Board’s discretion, a

7 merger of a wholly owned subsidiary of the Holding Com8 pany with and into the Association, which would have the

9 effect provided in the plan of reorganization and the law

10 of the jurisdiction in which such subsidiary is incor11 porated. As part of the restructuring, the Board of Direc12 tors may cause (1) the common shares of the Association

13 to be converted, at the reorganization effective date, to

14 common shares of the Holding Company on a one for one

15 basis, consistent with applicable State or District of Co16 lumbia law, and (2) Holding Company common shares to

17 be registered with the Securities and Exchange Commis18 sion.

19 ‘‘(b) SHAREHOLDER APPROVAL.—The plan of reor20 ganization adopted by the Board of Directors pursuant to

21 subsection (a) shall be submitted to common stockholders

22 of the Association for their approval. The reorganization

23 shall occur at the reorganization effective date, provided

24 that the plan of reorganization has been approved by the

25 affirmative votes, cast in person or by proxy, of the holders
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1 of a majority of the issued and outstanding shares of the

2 Association common stock.

3 ‘‘(c) TRANSITION.—

4 ‘‘(1) IN GENERAL.—Except as specifically pro5 vided in this section, until the dissolution date the

6 Association shall continue to have all of the rights,

7 privileges and obligations set forth in, and shall be

8 subject to all of the limitations and restrictions of,

9 section 439 of this Act as in effect on the effective

10 date of this section, and the Association shall con11 tinue to carry out the purposes of such section. The

12 Holding Company and its affiliates other than the

13 Association shall not be entitled to any of the rights,

14 privileges and obligations, and shall not be subject to

15 the limitations and restrictions, applicable to the As16 sociation under section 439 of this Act as in effect

17 on the effective date of this section, except as spe18 cifically provided in this section. The Holding Com19 pany and its subsidiaries (other than the Associa20 tion) shall not purchase loans insured under this Act

21 until such time as the Association ceases acquiring

22 such loans, except that the Association shall con23 tinue to acquire loans as a lender of last resort pur24 suant to section 439(q) of this Act or under an
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1 agreement with the Secretary described in section

2 440(c)(6).

3 ‘‘(2) TRANSFER OF CERTAIN PROPERTY.—Ex4 cept as specifically provided in this section, at the

5 reorganization effective date or as soon as prac6 ticable thereafter, the Association shall use its best

7 efforts to transfer to the Holding Company or its

8 subsidiaries (or both), in each case, as directed by

9 the Holding Company, all real and personal property

10 of the Association (both tangible and intangible)

11 other than the remaining property. Without limiting

12 the preceding sentence, such transferred property

13 shall include all right, title and interest in (A) direct

14 or indirect subsidiaries of the Association (excluding

15 any interest in any government sponsored enter16 prise), (B) contracts, leases, and other agreements,

17 (C) licenses and other intellectual property, and (D)

18 any other property of the Association. Notwithstand19 ing the preceding provisions of this paragraph, noth20 ing in this paragraph shall be construed to prohibit

21 the Association from transferring remaining prop22 erty from time to time to the Holding Company or

23 its subsidiaries, subject to the provisions of para24 graph (4).
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1 ‘‘(3) TRANSFER OF PERSONNEL.—At the reor2 ganization effective date, employees of the Associa3 tion shall become employees of the Holding Com4 pany (or of the subsidiaries), and the Holding Com5 pany (or the subsidiaries or both) shall provide all

6 necessary and appropriate management and oper7 ational support (including loan servicing) to the As8 sociation, as requested by the Association. The Asso9 ciation may, however, obtain such management and

10 operational support from other persons or entities.

11 ‘‘(4) DIVIDENDS.—The Association may pay

12 dividends in the form of cash or noncash distribu13 tions so long as at the time of the declaration of

14 such dividends, after giving effect to the payment of

15 such dividends as of the date of such declaration by

16 the Board of Directors of the Association, the Asso17 ciation’s capital would be in compliance with the

18 capital standards set forth in section 439(r) of this

19 Act. If, at any time after the reorganization effective

20 date, the Association fails to comply with such cap21 ital standards, the Holding Company shall be obli22 gated to transfer to the Association additional cap23 ital in such amounts as are necessary to ensure that

24 the Association again complies with the capital

25 standards.
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1 ‘‘(5) VALUATION OF NONCASH DISTRIBU2 TIONS.—After the reorganization effective date, any

3 distribution of noncash assets by the Association to

4 the Holding Company shall be valued at book value

5 on the date the Association’s Board of Directors ap6 proved such distribution for purposes of calculating

7 compliance with section 439(r) of this Act.

8 ‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIV9 ITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—

10 After the reorganization effective date, the Associa11 tion shall not engage in any new business activities

12 or acquire any additional program assets described

13 in section 439(d) of the Act other than—

14 ‘‘(A) in connection with (i) student loan

15 purchases through September 30, 2005, and (ii)

16 contractual commitments for future

17 warehousing advances or pursuant to letters of

18 credit or standby bond purchase agreements

19 which are outstanding as of the reorganization

20 effective date;

21 ‘‘(B) in connection with its serving as a

22 lender-of-last-resort pursuant to section 439 of

23 this Act; and

24 ‘‘(C) in connection with its purchase of

25 loans insured under this part, if the Secretary,
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1 with the approval of the Secretary of the Treas2 ury, enters into an agreement with the Associa3 tion for the continuation or resumption of its

4 secondary market purchase program because

5 the Secretary determines there is inadequate li6 quidity for loans made under this part.

7 The Secretary is authorized to enter into an agree8 ment described in subparagraph (C) with the Asso9 ciation covering such secondary market activities.

10 Any agreement entered into under subparagraph (C)

11 shall cover a period of 12 months, but may be re12 newed if the Secretary determines that liquidity re13 mains inadequate. The fee provided under section

14 439(h)(7) shall not apply to loans acquired under

15 any such agreement with the Secretary.

16 ‘‘(7) ISSUANCE OF DEBT OBLIGATIONS DURING

17 THE TRANSITION PERIOD; ATTRIBUTES OF DEBT OB18 LIGATIONS.—After the reorganization effective date,

19 the Association shall not issue debt obligations which

20 mature later than September 30, 2009, except in

21 connection with serving as a lender-of-last-resort

22 pursuant to section 439 of this Act or with purchas23 ing loans under an agreement with the Secretary as

24 described in paragraph (6) of this subsection. Noth25 ing in this subsection shall modify the attributes ac-
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1 corded the debt obligations of the Association by sec2 tion 439, regardless of whether such debt obligations

3 are incurred prior to, or at any time following, the

4 reorganization effective date or are transferred to a

5 trust in accordance with subsection (d).

6 ‘‘(8) MONITORING OF SAFETY AND SOUND7 NESS.—

8 ‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN,

9 AND REPORT INFORMATION.—The Association

10 shall obtain such information and make and

11 keep such records as the Secretary of the

12 Treasury may from time to time prescribe con13 cerning (i) the financial risk to the Association

14 resulting from the activities of any of its associ15 ated persons, to the extent such activities are

16 reasonably likely to have a material impact on

17 the financial condition of the Association, in18 cluding its capital ratio, its liquidity, or its abil19 ity to conduct and finance its operations, and

20 (ii) the Association’s policies, procedures, and

21 systems for monitoring and controlling any

22 such financial risk. The Association’s obliga23 tions under this subsection with respect to any

24 associated person which is a third party servicer

25 (as defined in 34 C.F.R. 682.200(b)) shall be
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1 limited to providing to the Secretary of the

2 Treasury copies of any reports or other infor3 mation provided to the Secretary of Education

4 pursuant to 34 C.F.R. 682.200 et seq. The Sec5 retary of the Treasury may require summary

6 reports of such information to be filed no more

7 frequently than quarterly. For purposes of this

8 paragraph, the term ‘associated person’ shall

9 mean any person, other than a natural person,

10 directly or indirectly controlling, controlled by,

11 or under common control with the Association.

12 ‘‘(B) SEPARATE OPERATION OF CORPORA13 TIONS.—

14 ‘‘(i) The funds and assets of the Asso15 ciation shall at all times be maintained

16 separately from the funds and assets of the

17 Holding Company or any of its other sub18 sidiaries and may be used solely by the As19 sociation to carry out its purposes and to

20 fulfill its obligations.

21 ‘‘(ii) The Association shall maintain

22 books and records that clearly reflect the

23 assets and liabilities of the Association,

24 separate from the assets and liabilities of
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1 the Holding Company or any of its other

2 subsidiaries.

3 ‘‘(iii) The Association shall maintain a

4 corporate office that is physically separate

5 from any office of the Holding Company or

6 any of its subsidiaries.

7 ‘‘(iv) No director of the Association

8 that is appointed by the President pursu9 ant to section 439(c)(1)(A) may serve as a

10 director of the Holding Company.

11 ‘‘(v) At least one officer of the Asso12 ciation shall remain an officer solely of the

13 Association.

14 ‘‘(vi) Transactions between the Asso15 ciation and the Holding Company or its

16 other subsidiaries, including any loan serv17 icing arrangements, shall be on terms no

18 less favorable to the Association than the

19 Association could obtain from an unrelated

20 third party offering comparable services.

21 ‘‘(vii) The Association shall not extend

22 credit to the Holding Company or any of

23 its affiliates, nor guarantee or provide any

24 credit enhancement to any debt obligations
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1 of the Holding Company or any of its af2 filiates.

3 ‘‘(viii) Any amounts collected on be4 half of the Association by the Holding

5 Company or any of its other subsidiaries

6 with respect to the assets of the Associa7 tion, pursuant to a servicing contract or

8 other arrangement between the Association

9 and the Holding Company or any of its

10 other direct or indirect subsidiaries, shall

11 be collected solely for the benefit of the As12 sociation and shall be immediately depos13 ited by the Holding Company or such

14 other subsidiary to an account under the

15 sole control of the Association.

16 ‘‘(C) ENCUMBRANCE OF ASSETS.—Not17 withstanding any otherwise applicable Federal

18 or State law, rule, or regulation, or legal or eq19 uitable principle, doctrine, or theory to the con20 trary, under no circumstances shall the assets

21 of the Association be available or used to pay

22 claims or debts of or incurred by the Holding

23 Company. Nothing in this subparagraph shall

24 limit the right of the Association to pay divi25 dends not otherwise prohibited hereunder or
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1 limit any liability of the Holding Company ex2 plicitly provided for in this part.

3 ‘‘(D) HOLDING COMPANY ACTIVITIES.—

4 After the reorganization effective date and prior

5 to the dissolution of the Association in accord6 ance with section 440(d), Holding Company ac7 tivities shall be limited to ownership of the As8 sociation and any other subsidiaries. All busi9 ness activities shall be conducted through sub10 sidiaries.

11 ‘‘(9) ASSOCIATION BOARD OF DIRECTORS.—

12 Notwithstanding any other provision of part B of

13 this title, after the reorganization effective date, the

14 14 directors of the Association elected by the Asso15 ciation’s stockholders (which immediately after the

16 reorganization effective date shall be the Holding

17 Company) shall no longer be required to meet the

18 eligibility requirements set forth in section 439(c).

19 ‘‘(10) ISSUANCE OF STOCK WARRANTS.—At the

20 reorganization effective date, the Holding Company

21 shall issue to the Secretary of the Treasury 200,000

22 stock warrants, each entitling the holder of the stock

23 warrant to purchase from the Holding Company one

24 share of the registered common stock of the Holding

25 Company at any time on or before September 30,
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1 2009. The exercise price for such warrants shall be

2 an amount equal to the average closing price of the

3 common stock of the Association for the 20 business

4 days prior to and including the date of enactment of

5 this section on the exchange or market which is then

6 the primary exchange or market for the common

7 stock of the Association, subject to any adjustments

8 necessary to reflect the conversion of Association

9 common stock into Holding Company common stock

10 as part of the plan of reorganization approved by

11 the Association’s shareholders.

12 ‘‘(11) RESTRICTIONS ON TRANSFER OF ASSO13 CIATION SHARES AND BANKRUPTCY OF ASSOCIA14 TION.—After the reorganization effective date, the

15 Holding Company shall not sell, pledge, or otherwise

16 transfer the outstanding shares of the Association,

17 or agree to or cause the liquidation of the Associa18 tion or cause the Association to file a petition for

19 bankruptcy under title 11, United States Code, with20 out prior approval of the Secretary of the Treasury

21 and the Secretary of Education.

22 ‘‘(d) TERMINATION OF THE ASSOCIATION.—The As23 sociation shall dissolve, and its separate existence shall

24 terminate on September 30, 2009, after discharge of all

25 outstanding debt obligations and liquidation pursuant to
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1 this subsection. The Association may dissolve pursuant to

2 this subsection prior to such date by notifying the Sec3 retary of Education and the Secretary of the Treasury of

4 its intention to dissolve, unless within 60 days of receipt

5 of such notice the Secretary of Education notifies the As6 sociation that it continues to be needed to serve as a lend7 er of last resort pursuant to section 439(q) of this Act

8 or continues to be needed to purchase loans under an

9 agreement with the Secretary described in subsection

10 (c)(6) of this section. On the dissolution date, the Associa11 tion shall take the following actions:

12 ‘‘(1) ESTABLISHMENT OF A TRUST.—The Asso13 ciation shall, under the terms of an irrevocable trust

14 agreement in form and substance satisfactory to the

15 Secretary of the Treasury, the Association and the

16 appointed trustee, irrevocably transfer all remaining

17 obligations of the Association to the trust and irrev18 ocably deposit or cause to be deposited into such

19 trust, to be held as trust funds solely for the benefit

20 of holders of the remaining obligations, money or di21 rect noncallable obligations of the United States of

22 America or any agency thereof for which payment

23 the full faith and credit of the United States is

24 pledged, maturing as to principal and interest in

25 such amounts and at such times as are determined
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1 by the Secretary of the Treasury to be sufficient,

2 without consideration of any significant reinvestment

3 of such interest, to pay the principal of, and interest

4 on, the remaining obligations in accordance with

5 their terms. To the extent the Association cannot

6 provide money or qualifying obligations in the

7 amount required, the Holding Company shall be re8 quired to transfer money or qualifying obligations to

9 the trust in the amount necessary to prevent any de10 ficiency.

11 ‘‘(2) USE OF TRUST ASSETS.—All money, obli12 gations, or financial assets deposited into the trust

13 pursuant to this subsection shall be applied by the

14 trustee to the payment of the remaining obligations

15 assumed by the trust. Upon the fulfillment of the

16 trustee’s duties under the trust, any remaining as17 sets of the trust shall be transferred to the Holding

18 Company or its subsidiaries, or both, as directed by

19 the Holding Company.

20 ‘‘(3) OBLIGATIONS NOT TRANSFERRED TO THE

21 TRUST.—The Association shall make proper provi22 sion for all other obligations of the Association, in23 cluding the repurchase or redemption, or the making

24 of proper provision for the repurchase or redemp25 tion, of any preferred stock of the Association then
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1 outstanding. Any obligations of the Association

2 which cannot be fully satisfied shall become liabil3 ities of the Holding Company as of the date of dis4 solution.

5 ‘‘(4) TRANSFER OF REMAINING ASSETS.—After

6 compliance with paragraphs (1), and (3), the Asso7 ciation shall transfer to the Holding Company any

8 remaining assets of the Association.

9 ‘‘(e) OPERATION OF THE HOLDING COMPANY.—

10 ‘‘(1) HOLDING COMPANY BOARD OF DIREC11 TORS.—The number and composition of the Board

12 of Directors of the Holding Company shall be deter13 mined as set forth in the Holding Company’s charter

14 or like instrument (as amended from time to time)

15 or bylaws (as amended from time to time) and as

16 permissible under the laws of the jurisdiction of its

17 incorporation.

18 ‘‘(2) HOLDING COMPANY NAME.—The names of

19 the Holding Company and any subsidiary of the

20 Holding Company other than the Association—

21 ‘‘(A) may not contain the name ‘Student

22 Loan Marketing Association’; and

23 ‘‘(B) may contain, to the extent permitted

24 by applicable State or District of Columbia law,

25 ‘Sallie Mae’, or variations thereof or such other
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1 names as the Board of Directors of the Associa2 tion of the Holding Company shall deem appro3 priate.

4 ‘‘(3) USE OF SALLIE MAE NAME.—Without lim5 iting paragraph (2), the Association may assign to

6 the Holding Company, or any other subsidiary of the

7 Holding Company, the ‘Sallie Mae’ name as a trade8 mark and service mark, except that neither the

9 Holding Company nor any subsidiary of the Holding

10 Company other than the Association or a subsidiary

11 of the Association may use the ‘Sallie Mae’ name on,

12 or to identify the issuer of, any debt obligation or

13 other security offered or sold by the Holding Com14 pany or any such subsidiary. The Association shall

15 remit to the Secretary of Treasury $5,000,000 dur16 ing fiscal year 1996 as compensation for the right

17 to assign such trademark or service mark.

18 ‘‘(4) DISCLOSURE REQUIRED.—Until 3 years

19 after the dissolution date, the Holding Company,

20 and any subsidiary of the Holding Company other

21 than the Association, shall prominently display—

22 ‘‘(A) in any document offering its securi23 ties, that the obligations of the Holding Com24 pany and any such subsidiary are not guaran-
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1 teed by the full faith and credit of the United

2 States; and

3 ‘‘(B) in any advertisement or promotional

4 materials which use the ‘Sallie Mae’ name or

5 mark, a statement that neither the Holding

6 Company nor any such subsidiary is a Govern7 ment-sponsored enterprise or instrumentality of

8 the United States.

9 ‘‘(f) STRICT CONSTRUCTION.—Except as specifically

10 set forth in this section, nothing contained in this section

11 shall be construed to limit the authority of the Association

12 as a federally chartered corporation, or of the Holding

13 Company as a State or District of Columbia chartered cor14 poration.

15 ‘‘(g) RIGHT TO ENFORCE.—The Secretary of Edu16 cation or the Secretary of the Treasury, as appropriate,

17 may request the Attorney General of the United States

18 to bring an action in the United States District Court for

19 the District of Columbia for the enforcement of any provi20 sions of this section, or may, under the direction or control

21 of the Attorney General, bring such an action. Such court

22 shall have jurisdiction and power to order and require

23 compliance with this section.

24 ‘‘(h) DEADLINE FOR REORGANIZATION EFFECTIVE

25 DATE.—This section shall be of no further force and effect
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1 in the event that the reorganization effective date does not

2 occur on or before 18 months after the date of enactment

3 of this section.

4 ‘‘(i) DEFINITIONS.—For purposes of this section:

5 ‘‘(1) The term ‘Association’ means the Student

6 Loan Marketing Association.

7 ‘‘(2) The term ‘dissolution date’ shall mean

8 September 30, 2009, or such earlier date as the Sec9 retary of Education permits the transfer of remain10 ing obligations in accordance with subsection (d) of

11 this section.

12 ‘‘(3) The term ‘reorganization effective date’

13 means the effective date of the reorganization as de14 termined by the Board of Directors of the Associa15 tion, which shall not be earlier than the date that

16 stockholder approval is obtained pursuant to sub17 section (b) of this section and shall not be later than

18 the date that is 18 months after the date of enact19 ment of this section.

20 ‘‘(4) The term ‘Holding Company’ means the

21 new business corporation formed pursuant to this

22 section by the Association under the laws of any

23 State of the United States or the District of Colum24 bia.
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1 ‘‘(5) The term ‘remaining obligations’ shall

2 mean the debt obligations of the Association out3 standing as of the dissolution date.

4 ‘‘(6) The term ‘remaining property’ shall mean

5 the following assets and liabilities of the Association

6 which are outstanding as of the reorganization effec7 tive date: (A) debt obligations issued by the Associa8 tion, (B) contracts relating to interest rate, cur9 rency, or commodity positions or protections, (C) in10 vestment securities owned by the Association, (D)

11 any instruments, assets, or agreements described in

12 section 439(d) of this Act (including without limita13 tion all student loans, forward purchase and lending

14 commitments, warehousing advances, academic fa15 cilities obligations, letters of credit, standby bond

16 purchase agreements, liquidity agreements, and stu17 dent loan revenue bonds or other loans), and (E) ex18 cept as specifically prohibited by this Act, any other

19 nonmaterial assets or liabilities of the Association

20 which the Association’s Board of Directors deter21 mines to be necessary or appropriate to its oper22 ations.

23 ‘‘(7) The term ‘reorganization’ means the re24 structuring event or events (including any merger
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1 event) giving effect to the holding company structure

2 described in subsection (a) of this section.

3 ‘‘(8) The term ‘subsidiary’ or ‘subsidiaries’ shall

4 mean one or more direct or indirect subsidiaries of

5 the Holding Company.’’.

6 (b) TECHNICAL AMENDMENTS.—

7 (1) AMENDMENTS TO THE HIGHER EDUCATION

8 ACT.—Effective on the reorganization effective date

9 (as defined in section 440(h)(3) of the Higher Edu10 cation Act of 1965, as added by subsection (a))—

11 (A) section 435(d)(1)(F) of such Act (20

12 U.S.C. 1085(d)(1)(F)) is amended by inserting

13 after ‘‘Student Loan Marketing Association’’

14 the following: ‘‘or the Holding Company of the

15 Student Loan Marketing Association, including

16 all subsidiaries of such Holding Company, cre17 ated pursuant to section 440 of this Act,’’; and

18 (B) sections 435(d)(1)(G) and

19 428C(a)(1)(A) of such Act (20 U.S.C.

20 1085(d)(1)(G); 1078–3(a)(1)(A)) are each

21 amended by inserting after ‘‘Student Loan

22 Marketing Association’’ the following: ‘‘or the

23 Holding Company of the Student Loan Market24 ing Association, including all subsidiaries of
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1 such Holding Company, created pursuant to

2 section 440 of this Act’’.

3 (2) ENFORCEMENT OF SAFETY AND SOUND4 NESS REQUIREMENTS.—Section 439(r) of the High5 er Education Act of 1965 (20 U.S.C. 1087–2(r)) is

6 amended—

7 (A) by redesignating paragraph (13) as

8 paragraph (15); and

9 (B) by inserting after paragraph (12) the

10 following new paragraph:

11 ‘‘(13) ENFORCEMENT OF SAFETY AND SOUND12 NESS REQUIREMENTS.—The Secretary of Education

13 or the Secretary of the Treasury, as appropriate,

14 may request the Attorney General of the United

15 States to bring an action in the United States Dis16 trict Court for the District of Columbia for the en17 forcement of any provisions of this subsection, or

18 may, under the direction or control of the Attorney

19 General, bring such an action. Such court shall have

20 jurisdiction and power to order and require compli21 ance with this subsection.’’.

22 (3) CAPITAL RATIO AMENDMENTS.—Section

23 439(r) of the Higher Education Act of 1965 is fur24 ther amended—

25 (A) in paragraph (1)—
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1 (i) by striking ‘‘and’’ at the end of

2 subparagraph (A);

3 (ii) by striking the period at the end

4 of subparagraph (B) and inserting ‘‘;

5 and’’; and

6 (iii) by adding at the end the follow7 ing new subparagraph:

8 ‘‘(C) within 45 days of the end of each fis9 cal quarter, (i) financial statements of the Asso10 ciation, and (ii) a report setting forth the cal11 culation of the capital ratio of the Associa12 tion.’’;

13 (B) in paragraph (11), by striking ‘‘para14 graphs (4) and (6)(A)’’ and inserting ‘‘para15 graphs (4), (6)(A), and (14)’’; and

16 (C) by inserting after paragraph (13) (as

17 added by paragraph (2) of this subsection) the

18 following new paragraph:

19 ‘‘(14) ACTIONS BY SECRETARY.—If the share20 holders of the Association shall have approved a re21 organization plan in accordance with section 440(b)

22 and, for any fiscal quarter ended after January 1,

23 2000, the Association shall have a capital ratio of

24 less than 2.25 percent, the Secretary of the Treas25 ury may, until such capital ratio is met, take any
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1 one or more of the actions described in paragraph

2 (7), except that—

3 ‘‘(A) the capital ratio to be restored pursu4 ant to paragraph (7)(D) shall be 2.25 percent;

5 and

6 ‘‘(B) if the relevant capital ratio is in ex7 cess of or equal to 2 percent for such quarter,

8 the Secretary of the Treasury shall defer taking

9 any of the actions set forth in paragraph (7)

10 until the next succeeding quarter and may then

11 proceed with any such action only if the capital

12 ratio of the Association remains below 2.25 per13 cent.

14 Upon approval by the shareholders of the Associa15 tion of a reorganization plan in accordance with sec16 tion 440(b) for any period after January 1, 2000,

17 the provisions of paragraphs (4), (5), (6), (8), (9),

18 and (10) shall be of no further application to the As19 sociation.’’.

20 (4) REPEAL OF THE ASSOCIATION’S CHAR21 TER.—Effective on the dissolution date (as defined

22 in section 440(h)(2) of the Higher Education Act of

23 1965, as added by subsection (a)), section 439 of

24 such Act (20 U.S.C. 1087–2) is repealed.
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1 SEC. 602. PRIVATIZATION OF COLLEGE CONSTRUCTION

2 LOAN INSURANCE ASSOCIATION.

3 (a) REPEAL OF STATUTORY RESTRICTIONS.—Part D

4 of title VII of the Higher Education Act of 1965 (20

5 U.S.C. 1132f et seq.) is repealed.

6 (b) STATUS OF THE CORPORATION.—

7 (1) STATUS OF THE CORPORATION.—The Cor8 poration shall not be an agency, instrumentality, or

9 establishment of the United States Government and

10 shall not be a ‘‘Government corporation’’ nor a

11 ‘‘Government controlled corporation’’ as defined in

12 section 103 of title 5, United States Code. No action

13 under section 1491 of title 28, United States Code

14 (commonly known as the Tucker Act) shall be allow15 able against the United States based on the actions

16 of the Corporation.

17 (2) CORPORATE POWERS.—The Corporation

18 shall have the power to engage in any business or

19 other activities for which corporations may be orga20 nized under the laws of any State of the United

21 States or the District of Columbia. The Corporation

22 shall have the power to enter into contracts, to exe23 cute instruments, to incur liabilities, to provide prod24 ucts and services, and to do all things as are nec25 essary or incidental to the proper management of its
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1 affairs and the efficient operation of a private, for2 profit business.

3 (3) LIMITATION ON OWNERSHIP OF STOCK.—

4 Except as provided in subsection (d)(2) of this sec5 tion, no stock of the Corporation may be sold or is6 sued to an agency, instrumentality, or establishment

7 of the United States Government, to a Government

8 corporation or a Government controlled corporation

9 (as such terms are defined in section 103 of title 5,

10 United States Code), or to a Government sponsored

11 enterprise (as such term is defined in section 622 of

12 title 2, United States Code). The Student Loan

13 Marketing Association shall not own any stock of

14 the Corporation, except that it may retain the stock

15 it owns on the date of enactment. The Student Loan

16 Marketing Association shall not control the oper17 ation of the Corporation, except that the Student

18 Loan Marketing Association may participate in the

19 election of directors as a shareholder, and may con20 tinue to exercise its right to appoint directors under

21 section 754 of the Higher Education Act of 1965 as

22 long as that section is in effect. The Student Loan

23 Marketing Association shall not provide financial

24 support or guarantees to the Corporation. Notwith25 standing the prohibitions in this subsection, the
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1 United States may pursue any remedy against a

2 holder of the Corporation’s stock to which it would

3 otherwise be entitled.

4 (c) RELATED PRIVATIZATION REQUIREMENTS.—

5 (1) NOTICE REQUIREMENTS.—During the 5-

6 year period following the date of the enactment of

7 this Act, the Corporation shall include in any docu8 ment offering the Corporation’s securities, in any

9 contracts for insurance, guarantee, or reinsurance of

10 obligations, and in any advertisement or promotional

11 material, a statement that—

12 (A) the Corporation is not a Government13 sponsored enterprise or instrumentality of the

14 United States; and

15 (B) the Corporation’s obligations are not

16 guaranteed by the full faith and credit of the

17 United States.

18 (2) CORPORATE CHARTER.—The Corporation’s

19 charter shall be amended as necessary and without

20 delay to conform the requirements of this Act.

21 (3) CORPORATE NAME.—The name of the Cor22 poration, or of any direct or indirect subsidiary

23 thereof, may not contain the term ‘‘College Con24 struction Loan Insurance Association’’.
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1 (4) ARTICLES OF INCORPORATION.—The Cor2 poration shall amend its articles of incorporation

3 without delay to reflect that one of the purposes of

4 the Corporation shall be to guarantee, insure and re5 insure bonds, leases, and other evidences of debt of

6 educational institutions, including Historically Black

7 Colleges and Universities and other academic insti8 tutions which are ranked in the lower investment

9 grade category using a nationally recognized credit

10 rating system.

11 (5) TRANSITION REQUIREMENTS.—

12 (A) REQUIREMENTS UNTIL STOCK SALE.—

13 Notwithstanding subsection (a), the require14 ments of section 754 of the Higher Education

15 Act of 1965 (20 U.S.C. 1132f–3), as in exist16 ence as of the day before enactment of this Act,

17 shall continue to be effective until the day im18 mediately following the date of closing of the

19 purchase of the Secretary’s stock (or the date

20 of closing of the final purchase, in the case of

21 multiple transactions) pursuant to subsection

22 (d) of this section.

23 (B) REPORTS AFTER STOCK SALE.—The

24 Corporation shall, not later than March 30 of

25 the first full calendar year immediately follow-
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1 ing the sale pursuant to subsection (d), and

2 each of the 2 succeeding years, submit to the

3 Secretary of Education a report describing the

4 Corporation’s efforts to assist in the financing

5 of education facilities projects, including

6 projects for elementary, secondary, and post7 secondary educational institution infrastructure,

8 and detailing, on a project-by-project basis, the

9 Corporation’s business dealings with edu10 cational institutions that are rated by a nation11 ally recognized statistical rating organization at

12 or below the organization’s third highest rat13 ings.

14 (d) SALE OF FEDERALLY OWNED STOCK.—

15 (1) SALE OF STOCK REQUIRED.—The Secretary

16 of the Treasury shall make every effort to sell, pur17 suant to section 324 of title 31, United States Code,

18 the stock of the Corporation owned by the Secretary

19 of Education not later than 6 months after the date

20 of the enactment of this Act.

21 (2) PURCHASE BY THE CORPORATION.—In the

22 event that the Secretary of the Treasury is unable

23 to sell the stock, or any portion thereof, at a price

24 acceptable to the Secretary of Education and the

25 Secretary of the Treasury, the Corporation shall
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1 purchase, within the period specified in paragraph

2 (1), such stock at a price determined by the Sec3 retary of the Treasury and acceptable to the Cor4 poration based on independent appraisal by one or

5 more nationally recognized financial firms, however,

6 such price shall not exceed the value of the Sec7 retary’s stock as determined by the Congressional

8 Budget Office in House Report 104–153 dated June

9 22, 1995. Such firms shall be selected by the Sec10 retary of the Treasury in consultation with the Sec11 retary of Education and the Corporation.

12 (e) ASSISTANCE BY THE CORPORATION.—The Cor13 poration shall provide such assistance as the Secretary of

14 the Treasury and the Secretary of Education may require

15 to facilitate the sale of the stock under this section.

16 (f) DEFINITION.—As used in this section, the term

17 ‘‘Corporation’’ means the Corporation established pursu18 ant to the provision of law repealed by subsection (a).

19 TITLE VII—REPEALERS AND

20 OTHER AMENDMENTS

21 SEC. 701. HIGHER EDUCATION PROVISIONS.

22 (a) HIGHER EDUCATION ACT OF 1965 PROVI23 SIONS.—The following provisions of the Higher Education

24 Act of 1965 are repealed:
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1 (1) Part B of title I (20 U.S.C. 1011 et seq.),

2 relating to articulation agreements.

3 (2) Part C of title I (20 U.S.C. 1015 et seq.),

4 relating to access and equity to education for all

5 Americans through telecommunications.

6 (3) Title II (20 U.S.C. 1021 et seq.), relating

7 to academic libraries and information services.

8 (4) Chapter 2 of subpart 2 of part A of title IV

9 (20 U.S.C. 1070a–21 et seq.), relating to national

10 early intervention scholarships.

11 (5) Chapter 3 of subpart 2 of part A of title IV

12 (20 U.S.C. 1070a–31 et seq.), relating to presi13 dential access scholarships.

14 (6) Chapter 4 of subpart 2 of part A of title IV

15 (20 U.S.C. 1070a–41 et seq.), relating to model pro16 gram community partnerships and counseling

17 grants.

18 (7) Chapter 5 of subpart 2 of part A of title IV

19 (20 U.S.C. 1070a–52 et seq.), relating to an early

20 awareness information program.

21 (8) Chapter 8 of subpart 2 of part A of title IV

22 (20 U.S.C. 1070a–81), relating to technical assist23 ance for teachers and counselors.
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1 (9) Subpart 8 of part A of title IV (20 U.S.C.

2 1070f), relating to special child care services for dis3 advantaged college students.

4 (10) Section 428J (20 U.S.C. 1078–10), relat5 ing to loan forgiveness for teachers, individuals per6 forming national community service and nurses.

7 (11) Section 486 (20 U.S.C. 1093), relating to

8 training in financial aid services.

9 (12) Subpart 1 of part H of title IV (20 U.S.C.

10 1099a et seq.) relating to State postsecondary re11 view entity programs.

12 (13) Part A of title V (20 U.S.C. 1102 et seq.),

13 relating to State and local programs for teacher ex14 cellence.

15 (14) Part B of title V (20 U.S.C. 1103 et seq.),

16 relating to national teacher academies.

17 (15) Subpart 1 of part C of title V (20 U.S.C.

18 1104 et seq.), relating to Douglas teacher scholar19 ships.

20 (16) Subpart 3 of part C of title V (20 U.S.C.

21 1106 et seq.), relating to the teacher corps.

22 (17) Subpart 3 of part D of title V (20 U.S.C.

23 1109 et seq.), relating to class size demonstration

24 grants.
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1 (18) Subpart 4 of part D of title V (20 U.S.C.

2 1110 et seq.), relating to middle school teaching

3 demonstration programs.

4 (19) Subpart 1 of part E of title V (20 U.S.C.

5 1111 et seq.), relating to new teaching careers.

6 (20) Subpart 1 of part F of title V (20 U.S.C.

7 1113 et seq.), relating to the national mini corps

8 programs.

9 (21) Section 586 (20 U.S.C. 1114), relating to

10 demonstration grants for critical language and area

11 studies.

12 (22) Section 587 (20 U.S.C. 1114a), relating to

13 development of foreign languages and cultures in14 structional materials.

15 (23) Subpart 3 of part F of title V (20 U.S.C.

16 1115), relating to small State teaching initiatives.

17 (24) Subpart 4 of part F of title V (20 U.S.C.

18 1116), relating to faculty development grants.

19 (25) Section 597 and section 599(b) (20 U.S.C.

20 1117a, 1117c(b)), relating to early childhood staff

21 training and professional enhancement.

22 (26) Section 605 (20 U.S.C. 1124a), relating to

23 intensive summer language institutes.

24 (27) Section 607 (20 U.S.C. 1125a), relating to

25 foreign language periodicals.
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1 (28) Part A of title VII (20 U.S.C. 11326 et

2 seq.), relating to academic and library facilities.

3 (29) Title VIII (20 U.S.C. 1133 et seq.), relat4 ing to cooperative education programs.

5 (30) Part A of title IX (20 U.S.C. 1134a et

6 seq.), relating to women and minority participation

7 in graduate education.

8 (31) Part B of title IX (20 U.S.C. 1134d et

9 seq.), relating to Harris fellowships.

10 (32) Part C of title IX (20 U.S.C. 1134h et

11 seq.), relating to Javits fellowships.

12 (33) Part E of title IX (20 U.S.C. 1134r et

13 seq.), relating to the faculty development fellowship

14 program.

15 (34) Part F of title IX (20 U.S.C. 1134s et

16 seq.), relating to legal training for the disadvan17 taged.

18 (35) Part G of title IX (20 U.S.C. 1134u et

19 seq.), relating to law school clinical programs.

20 (36) Section 1011 (20 U.S.C. 1135a–11), relat21 ing to special projects in areas of national need.

22 (37) Subpart 2 of part B of title X (20 U.S.C.

23 1135c et seq.), relating to science and engineering

24 access programs.
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1 (38) Part C of title X (20 U.S.C. 1135e et

2 seq.), relating to women and minorities science and

3 engineering outreach demonstration programs.

4 (39) Part D of title X (20 U.S.C. 1135f), relat5 ing to Eisenhower leadership programs.

6 (40) Title XI (20 U.S.C. 1136 et seq.), relating

7 to community service programs.

8 (b) EDUCATION AMENDMENTS OF 1986 PROVI9 SIONS.—The following provisions of the Higher Education

10 Amendments of 1986 are repealed:

11 (1) Part E of title XIII (20 U.S.C. 1221–1

12 note), relating to a National Academy of Science

13 study.

14 (2) Part B of title XV (20 U.S.C. 4441 et

15 seq.), relating to Native Hawaiian culture and art

16 development.

17 (c) EDUCATION AMENDMENTS OF 1992 PROVI18 SIONS.—The following provisions of the Higher Education

19 Amendments of 1992 are repealed:

20 (1) Part F of title XIII (25 U.S.C. 3351 et

21 seq.), relating to American Indian postsecondary

22 economic development scholarships.

23 (2) Part G of title XIII (25 U.S.C. 3371), re24 lating to American Indian teacher training.
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1 (3) Section 1406 (20 U.S.C. 1221e–1 note), re2 lating to a national survey of factors associated with

3 participation.

4 (4) Section 1409 (20 U.S.C. 1132a note), relat5 ing to a study of environmental hazards in institu6 tions of higher education.

7 (5) Section 1412 (20 U.S.C. 1101 note), relat8 ing to a national job bank for teacher recruitment.

9 (6) Part B of title XV (20 U.S.C. 1452 note),

10 relating to a national clearinghouse for postsecond11 ary education materials.

12 (7) Part C of title XV (20 U.S.C. 1101 note),

13 relating to school-based decisionmakers.

14 (8) Part D of title XV (20 U.S.C. 1145h note),

15 relating to grants for sexual offenses education.

16 (9) Part E of title XV (20 U.S.C. 1070 note),

17 relating to Olympic scholarships.

18 (10) Part G of title XV (20 U.S.C. 1070a–11

19 note), relating to advanced placement fee payment

20 programs.

21 (d) CONFORMING AMENDMENTS.—the Higher Edu22 cation Act of 1965 is amended—

23 (1) in section 453(c)(2)—

24 (A) by striking subparagraph (E); and
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1 (B) by redesignating subparagraphs (F)

2 through (H) as subparagraphs (E) through (G),

3 respectively;

4 (2) in section 487(a)(3), by striking subpara5 graph (B) and redesignating subparagraphs (C) and

6 (D) as subparagraphs (B) and (C), respectively;

7 (3) in section 487(a)(15), by striking ‘‘the Sec8 retary of Veterans Affairs, and State review entities

9 under subpart 1 of part H’’ and inserting ‘‘and the

10 Secretary of Veterans Affairs’’;

11 (4) in section 487(a)(21), by striking ‘‘, State

12 postsecondary review entities,’’;

13 (5) in section 487(c)(1)(A)(i), by striking

14 ‘‘State agencies, and the State review entities re15 ferred to in subpart 1 of part H’’ and inserting ‘‘and

16 State agencies’’;

17 (6) in section 487(c)(4), by striking ‘‘, after

18 consultation with each State review entity designated

19 under subpart 1 of part H,’’;

20 (7) in section 487(c)(5), by striking ‘‘State re21 view entities designated under subpart 1 of part

22 H,’’;

23 (8) in section 496(a)(7), by striking ‘‘and the

24 appropriate State postsecondary review entity’’;
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1 (9) in section 496(a)(8), by striking ‘‘and the

2 State postsecondary review entity of the State in

3 which the institution of higher education is located’’;

4 (10) in section 498(g)(2), by striking everything

5 after the first sentence;

6 (11) in section 498A(a)(2)(D), by striking ‘‘by

7 the appropriate State postsecondary review entity

8 designated under subpart 1 of this part or’’;

9 (12) in section 498A(a)(2)—

10 (A) by inserting ‘‘and’’ after the semicolon

11 at the end of subparagraph (E);

12 (B) by striking subparagraph (F); and

13 (C) by redesignating subparagraph (G) as

14 subparagraph (F); and

15 (13) in section 498A(a)(3)—

16 (A) by inserting ‘‘and’’ after the semicolon

17 at the end of subparagraph (C);

18 (B) by striking ‘‘; and’’ at the end of sub19 paragraph (D) and inserting a period; and

20 (C) by striking subparagraph (E).

21 SEC. 702. ELIGIBLE INSTITUTION.

22 (a) AMENDMENTS.—Section 481(b) of the Higher

23 Education Act of 1965 (20 U.S.C. 1088(b)) is amended—

24 (1) by inserting before the period at the end of

25 the first sentence the following: ‘‘on the basis of a
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1 review by the institution’s independent auditor using

2 generally accepted accounting principles’’; and

3 (2) by inserting after the end of such first sen4 tence the following new sentences: ‘‘For the purposes

5 of clause (6), revenues from sources that are not de6 rived from funds provided under this title include

7 revenues from programs of education or training

8 that do not meet the definition of an eligible pro9 gram in subsection (e), but are provided on a con10 tractual basis under Federal, State, or local training

11 programs, or to business and industry. For the pur12 poses of determining whether an institution meets

13 the requirements of clause (6), the Secretary shall

14 not consider the financial information of any institu15 tion for a fiscal year began on or before April 30,

16 1994.’’.

17 (b) EFFECTIVE DATE.—Notwithstanding section 713

18 of this Act, the amendments made by subsection (a) shall

19 apply to any determination made on or after July 1, 1994,

20 by the Secretary of Education pursuant to section

21 481(b)(6) of the Higher Education Act of 1965.

22 SEC. 703. CARL D. PERKINS VOCATIONAL AND APPLIED

23 TECHNOLOGY EDUCATION ACT.

24 The Carl D. Perkins Vocational and Applied Tech25 nology Education Act (20 U.S.C. 2301 et seq.) is repealed.
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1 SEC. 704. SMITH-HUGHES ACT.

2 (a) REPEAL.—The Smith-Hughes Act (39 Stat. 929

3 as amended (20 U.S.C. 11–15, 16–28)) is repealed.

4 (b) EFFECTIVE DATE.—Notwithstanding section 713

5 of this Act, the repeal in subsection (a) of this section shall

6 take effect on October 1, 1995.

7 SEC. 705. SCHOOL-TO-WORK OPPORTUNITIES ACT OF 1994.

8 The School-to-Work Opportunities Act of 1994 (20

9 U.S.C. 6101 et seq.) is repealed.

10 SEC. 706. SCHOOL DROPOUT ASSISTANCE ACT.

11 The School Dropout Assistance Act, (part C of title

12 V of the Elementary and Secondary Education Act (20

13 U.S.C. 7261)) is repealed.

14 SEC. 707. ADULT EDUCATION ACT.

15 (a) IN GENERAL.—The Adult Education Act (20

16 U.S.C. 1201 et seq.) is repealed.

17 (b) CONFORMING AMENDMENTS.—

18 (1) ESEA.—The Elementary and Secondary

19 Education Act of 1965 (20 U.S.C. 6301 et seq.) is

20 amended—

21 (A) in section 1202(c)(1), by striking ‘‘the

22 Adult Education Act,’’ and inserting ‘‘title IV

23 of the CAREERS Act,’’;

24 (B) in section 1205(8)(B), by striking ‘‘the

25 Adult Education Act,’’ and inserting ‘‘title IV

26 of the CAREERS Act,’’;
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1 (C) in section 1206(a)(1)(A), by striking

2 ‘‘the Adult Education Act;’’ and inserting ‘‘title

3 IV of the CAREERS Act;’’; and

4 (D) in section 9161(2), by striking ‘‘sec5 tion 312(2) of the Adult Education Act.’’ and

6 inserting ‘‘section 5 of the CAREERS Act.’’.

7 (2) TECHNOLOGY FOR EDUCATION ACT.—The

8 Technology for Education Act of 1994 (20 U.S.C.

9 6801 et seq.) is amended in section 3113(1) by

10 striking ‘‘section 312 of the Adult Education Act;’’

11 and inserting ‘‘section 5 of the CAREERS Act;’’;

12 SEC. 708. NATIONAL LITERACY ACT.

13 The National Literacy Act of 1991, except section

14 101 of such Act, is repealed.

15 SEC. 709. LIBRARY SERVICES AND CONSTRUCTION ACT.

16 (a) IN GENERAL.—The Library Services and Con17 struction Act (20 U.S.C. 351 et seq.) is repealed.

18 (b) CONFORMING AMENDMENT.—The Technology for

19 Education Act of 1994 (20 U.S.C. 6801 et seq.) is amend20 ed in section 3113(10) by striking ‘‘section 3 of the Li21 brary Services and Construction Act;’’ and inserting ‘‘sec22 tion 5 of the CAREERS Act;’’.
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1 SEC. 710. TECHNOLOGY FOR EDUCATION ACT OF 1994.

2 Part F of the Technology for Education Act of 1994

3 (contained in title III of the Elementary and Secondary

4 Education Act (20 U.S.C. 7001 et seq.)) is repealed.

5 SEC. 711. JOB TRAINING PARTNERSHIP ACT.

6 (a) IN GENERAL.—The Job Training Partnership

7 Act (29 U.S.C. 1501 et seq.), except section 1, sections

8 421 through 439 (relating to the Job Corps), and section

9 441 of such Act (relating to veterans’ employment pro10 grams), is hereby repealed.

11 (b) CONFORMING AMENDMENTS.—

12 (1) SHORT TITLE.—Section 1 of the Job Train13 ing Partnership Act (29 U.S.C. 1501, note) is

14 amended—

15 (A) in the heading, by striking ‘‘; TABLE

16 OF CONTENTS’’; and

17 (B) by striking all that follows after ‘‘Job

18 Training Partnership Act’’.

19 (2) JOB CORPS.—Such Act (29 U.S.C. 1501 et

20 seq.), as amended by this section, is further amend21 ed—

22 (A) by redesignating sections 421 through

23 439 as sections 2 through 21, respectively;

24 (B) in section 2 (as redesignated), by

25 striking ‘‘part’’ each place it appears and in26 serting ‘‘Act’’;
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1 (C) in section 4(4) (as redesignated), by

2 striking ‘‘sections 424 and 425’’ and inserting

3 ‘‘sections 5 and 6’’;

4 (D) in section 5 (as redesignated)—

5 (i) in subsection (a), by striking ‘‘enti6 ties administering programs under title II

7 of this Act,’’; and

8 (ii) in subsection (b), by striking

9 ‘‘part’’ and inserting ‘‘Act’’;

10 (E) in section 7 (as redesignated)—

11 (i) in subsection (a), by striking ‘‘sec12 tion 428’’ and inserting ‘‘section 9’’; and

13 (ii) by striking subsection (d);

14 (F) in section 8 (as redesignated)—

15 (i) by striking subsection (b); and

16 (ii) by redesignating subsection (c) as

17 subsection (b);

18 (G) in section 14 (as redesignated)—

19 (i) in subsection (a)(4), by striking

20 ‘‘part’’ and inserting ‘‘Act’’;

21 (ii) in subsection (c)(1), by striking

22 ‘‘and activities authorized under sections

23 452 and 453’’; and

24 (iii) in subsection (e), by striking

25 ‘‘section 431’’ and inserting ‘‘section 12’’;
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1 (H) in section 15 (as redesignated)—

2 (i) in subsection (a)—

3 (I) in the matter preceding para4 graph (1), by striking ‘‘section 427’’

5 and inserting ‘‘section 8’’; and

6 (II) in paragraph (4)(A), by

7 striking ‘‘section 428’’ and inserting

8 ‘‘section 9’’;

9 (ii) in subsection (c)(3), by striking

10 ‘‘section 423’’ and inserting ‘‘section 4’’;

11 (iii) in subsection (d), by striking

12 ‘‘sections 424 and 425’’ and inserting

13 ‘‘sections 5 and 6’’; and

14 (iv) in subsection (e), by striking ‘‘,

15 pursuant to section 452(d),’’;

16 (I) in section 17 (as redesignated), by

17 striking ‘‘purpose of this part’’ each place it ap18 pears and inserting ‘‘purpose of this Act’’;

19 (J) in section 20 (as redesignated), by

20 striking ‘‘part’’ each place it appears and in21 serting ‘‘Act’’; and

22 (K) in section 21 (as redesignated), by

23 striking ‘‘part’’ and inserting ‘‘Act’’.
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1 (3) VETERANS’ EMPLOYMENT PROGRAMS.—

2 Such Act (29 U.S.C. 1501 et seq.), as amended by

3 this section, is further amended—

4 (A) by redesignating section 441 as section

5 22;

6 (B) by striking the heading of such section

7 22 (as redesignated), and inserting the follow8 ing:

9 ‘‘VETERANS’ EMPLOYMENT PROGRAMS’’; and

10 (C) in such section 22, by striking ‘‘part’’

11 each place it appears and inserting ‘‘section’’.

12 (4) AUTHORIZATION OF APPROPRIATIONS.—

13 Such Act (29 U.S.C. 1501 et seq.), as amended by

14 this section, is further amended by adding at the

15 end the following new section:

16 ‘‘AUTHORIZATION OF APPROPRIATIONS

17 ‘‘SEC. 23. There are authorized to be appropriated

18 such sums as are necessary to carry out this Act.’’.

19 SEC. 712. STEWART B. MCKINNEY HOMELESS ASSISTANCE

20 ACT.

21 (a) ADULT EDUCATION.—

22 (1) IN GENERAL.—Subtitle A of title VII of the

23 Stewart B. McKinney Homeless Assistance Act (42

24 U.S.C. 11421 et seq.) is repealed.
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1 (2) TABLE OF CONTENTS.—The table of con2 tents of such Act is amended by striking the items

3 relating to subtitle A of title VII of such Act.

4 (b) SUBTITLE C.—

5 (1) IN GENERAL.—Subtitle C of title VII of the

6 Stewart B. McKinney Homeless Assistance Act (42

7 U.S.C. 11441 et seq.), except section 738, is hereby

8 repealed.

9 (2) TABLE OF CONTENTS.—The table of con10 tents of such Act is amended—

11 (A) by striking the item relating to subtitle

12 C of title VII of such Act; and

13 (B) by striking the items relating to sec14 tions 731 through 737 and sections 739

15 through 741.

16 SEC. 713. EFFECTIVE DATE.

17 The repeals and amendments made by this Act shall

18 take effect on July 1, 1997, except for amendments to

19 the Rehabilitation Act of 1973.

Passed the House of Representatives September 19,

1995.

Attest: ROBIN H. CARLE,

Clerk.

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