I

103D CONGRESS

2D SESSION H. R. 4040

To establish a comprehensive system of reemployment services, training and

income support for permanently laid off workers, to facilitate the establishment of one-stop career centers to serve as a common point of

access to employment, education and training information and services,

to develop an effective national labor market information system, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 16, 1994

Mr. ROSTENKOWSKI (by request) (for himself and Mr. FORD of Michigan) introduced the following bill; which was referred jointly to the Committees

on Education and Labor and Ways and Means

MAY 27, 1994

Additional sponsors: Mr. HOCHBRUECKNER, Mr. BRYANT, Ms. DELAURO, Mr.

FAZIO, Mr. FORD of Tennessee, Mr. GEJDENSON, Mr. GEPHARDT, Mr.

HINCHEY, Mr. JOHNSTON of Florida, Mr. MATSUI, Mr. MILLER of California, Mr. MURTHA, Mr. SABO, Mr. SAWYER, Mr. MCCURDY, Mr.

WHEAT, Mr. KOPETSKI, Mr. LEVIN, Mr. MARTINEZ, Mr. WILLIAMS, Mr.

GIBBONS, Mr. FRANK of Massachusetts, Mr. RAHALL, Mr. MCDERMOTT,

Ms. ESHOO, Mr. BERMAN, Ms. ROYBAL-ALLARD, Mr. FARR, Mr. EDWARDS of California, Mr. HAMBURG, Mr. DELLUMS, Mr. MINETA, Mr.

BEILENSON, Mr. ACKERMAN, Mr. SWETT, Mr. MAZZOLI, Mr. LAFALCE,

Mr. RICHARDSON, Mr. DEFAZIO, Mrs. LOWEY, Mr. SERRANO, Mr.

STARK, Mr. MANTON, Ms. PELOSI, Mr. CARDIN, Ms. HARMAN, Mr.

GENE GREEN of Texas, Mr. SYNAR, Mr. ROMERO-BARCELO ́, Mr. ANDREWS of New Jersey, Mr. ANDREWS of Texas, and Mr. COYNE

A BILL

To establish a comprehensive system of reemployment services, training and income support for permanently laid

off workers, to facilitate the establishment of one-stop
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career centers to serve as a common point of access

to employment, education and training information and

services, to develop an effective national labor market

information system, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Reemployment Act of

5 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings and purpose.

Sec. 4. Authorization of appropriations.

Sec. 5. Definitions.

TITLE I—COMPREHENSIVE PROGRAM FOR WORKER

REEMPLOYMENT

Sec. 101. Allotment of funds.

Sec. 102. Recapture and use of unexpended funds.

Sec. 103. Eligibility for services.

PART A—STATE AND SUBSTATE DELIVERY SYSTEM

Sec. 111. State administration and oversight.

Sec. 112. Designation and functions of State dislocated worker unit.

Sec. 113. Development and maintenance of State and local labor market information system.

Sec. 114. State coordination with worker profiling and retraining income support programs.

Sec. 115. State supplementary grants for areas of special need.

Sec. 116. State grants for job retention projects.

Sec. 117. Designation of substate administrative structure.

Sec. 118. Establishment of career centers.

Sec. 119. Services to be provided to eligible individuals.

Sec. 120. Certificates of continuing eligibility.

PART B—FEDERAL DELIVERY OF SERVICES

Sec. 131. National discretionary grant program.

Sec. 132. Disaster relief employment assistance.

Sec. 133. Evaluation, research, and demonstrations.

Sec. 134. Capacity building and technical assistance.
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Sec. 135. Federal by-pass authority.

PART C—PERFORMANCE STANDARDS AND QUALITY ASSURANCE SYSTEMS

Sec. 151. Customer service compact.

Sec. 152. Performance standards.

Sec. 153. Customer feedback.

Sec. 154. Eligibility requirements for service providers.

PART D—GENERAL REQUIREMENTS

Sec. 161. General requirements.

Sec. 162. Benefits.

Sec. 163. Labor standards.

Sec. 164. Grievance procedure.

PART E—FISCAL ADMINISTRATIVE PROVISIONS

Sec. 171. Program year.

Sec. 172. Prompt allocation of funds.

Sec. 173. Monitoring.

Sec. 174. Fiscal controls; sanctions.

Sec. 175. Reports, recordkeeping and investigations.

Sec. 176. Administrative adjudication.

Sec. 177. Nondiscrimination.

Sec. 178. Judicial review.

Sec. 179. Administrative provisions.

Sec. 180. Obligational authority.

Sec. 181. Criminal provisions.

Sec. 182. References.

PART F—MISCELLANEOUS PROVISIONS

Sec. 191. Effective date.

Sec. 192. Repealers.

Sec. 193. Transition.

TITLE II—RETRAINING INCOME SUPPORT AND FLEXIBILITY IN

UNEMPLOYMENT COMPENSATION

PART A—RETRAINING INCOME SUPPORT

Sec. 201. Establishment.

Sec. 202. Eligibility requirements.

Sec. 203. Weekly amounts.

Sec. 204. Limitations on retraining income support.

Sec. 205. Agreements with States.

Sec. 206. Administration absent State agreement.

Sec. 207. Liabilities of certifying and disbursing officers.

Sec. 208. Fraud and recovery of overpayments.

Sec. 209. Penalties.

Sec. 210. Definitions.

Sec. 211. Regulations.

Sec. 212. Effective date.

PART B—RETRAINING INCOME SUPPORT ACCOUNT

Sec. 221. Establishment of retraining income support account.
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Sec. 222. Funds for administration.

Sec. 223. Conforming amendments.

Sec. 224. Effective date.

PART C—FINANCING PROVISIONS

Sec. 231. Modifications to Federal unemployment tax.

Sec. 232. Voluntary withholding of Federal individual income tax.

PART D—INTEGRATION OF TRADE-IMPACTED WORKERS INTO THE

COMPREHENSIVE REEMPLOYMENT SYSTEM

Sec. 241. Phaseout of trade adjustment assistance program.

Sec. 242. Temporary program for the certification of trade-impacted workers.

PART E—UNEMPLOYMENT COMPENSATION FLEXIBILITY

Sec. 251. Treatment of short-time compensation programs.

Sec. 252. Treatment of reemployment bonus programs.

Sec. 253. Extension of self-employment assistance program.

Sec. 254. Effective date.

TITLE III—ONE-STOP CAREER CENTER SYSTEM

Sec. 301. Purpose.

PART A—COMPONENTS OF VOLUNTARY ONE-STOP CAREER CENTER SYSTEM

Sec. 311. General requirements.

Sec. 312. Workforce investment boards.

Sec. 313. Establishment of one-stop career centers.

Sec. 314. Services to be provided through one-stop career centers.

Sec. 315. Participating programs.

Sec. 316. Operating agreements.

Sec. 317. Quality assurance systems.

Sec. 318. State human resource investment council.

PART B—GRANTS AND WAIVERS TO PROMOTE THE DEVELOPMENT AND

IMPLEMENTATION OF ONE-STOP CAREER CENTER SYSTEM

Sec. 331. State planning and development grants.

Sec. 332. State implementation grants.

Sec. 333. Waiver of federal statutory and regulatory requirements.

Sec. 334. Pooling of administrative resources.

PART C—ADDITIONAL ACTIVITIES IN SUPPORT OF ONE-STOP CAREER

CENTER SYSTEMS

Sec. 351. Customer service compact.

Sec. 352. Additional State responsibilities.

Sec. 353. Additional Federal responsibilities.

PART D—EFFECTIVE DATE

Sec. 371. Effective date.

TITLE IV—NATIONAL LABOR MARKET INFORMATION SYSTEM

Sec. 401. Purpose.
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Sec. 402. National strategy.

Sec. 403. Components of system.

Sec. 404. Coordination.

Sec. 405. Effective date.

TITLE V—REINVENTION LABS FOR JOB TRAINING FOR THE

ECONOMICALLY DISADVANTAGED

Sec. 501. Establishment of labs.

Sec. 502. Modification of tuition definition.

Sec. 503. Effective date.

1 SEC. 3. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—Congress finds that—

3 (1) in recent years, both the nature of job un4 certainty and job loss has changed due to such

5 forces as evolving technologies, corporate restructur6 ing, and intensifying global competition;

7 (2) a substantial number of Americans lose jobs

8 because of structural changes in the economy rather

9 than cyclical downturns, with more than 2 million

10 full-time workers permanently displaced annually

11 due to plant closures, production cutbacks, and lay12 offs;

13 (3) job uncertainty and dislocation carry sub14 stantial emotional and financial costs to the Nation,

15 with tax revenues and economic output declining

16 when workers are idle and demands on government

17 support rise;

18 (4) all Americans—whether seeking first jobs,

19 new jobs, or better jobs—confront an economy in

20 continuous transition and must have access to new
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1 skills and better job and career information in order

2 to harness this change for increased economic secu3 rity and a rising standard of living;

4 (5) our current worker adjustment policies were

5 designed for an earlier economy and often do not

6 equip Americans to prosper in the current and

7 emerging atmosphere of constant change;

8 (6) the primary governmental response to job

9 loss—the unemployment insurance system—is effec10 tive in providing income support to persons on tem11 porary layoffs, but was not designed to build reem12 ployment security, and is ill-equipped by itself to en13 sure that those people who are permanently laid off

14 will receive needed reemployment services;

15 (7) the current government response to disloca16 tion is a patchwork of categorical programs, with

17 varying eligibility requirements and different sets of

18 services and benefits;

19 (8) job search assistance and retraining are not

20 available to all who need them and income support

21 is typically not available to facilitate long-term train22 ing;

23 (9) a lack of comprehensive labor market infor24 mation—
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1 (A) means that job seekers, training pro2 viders, and employers must make hiring and

3 training decisions based on fragmented and in4 complete data;

5 (B) adds time and costs to employers’ re6 cruitment efforts; and

7 (C) hinders the ability of rapidly-growing

8 firms to recruit and screen new employees;

9 (10) administrative and regulatory obstacles

10 hamper the efforts of States and localities to estab11 lish comprehensive reemployment systems for all

12 their citizens seeking first jobs, new jobs, and better

13 jobs.

14 (b) PURPOSE.—It is the purpose of this Act to—

15 (1) better integrate the existing unemployment

16 system into a comprehensive, universal, high-quality

17 system for reemployment, so that it can serve effec18 tively the structurally unemployed as well as those

19 on temporary layoffs;

20 (2) promote equity and efficiency by consolidat21 ing the array of specific programs for dislocated

22 workers into a single comprehensive program for all

23 workers who have been permanently laid off, regard24 less of the cause of dislocation;
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1 (3) facilitate effective, quality training for per2 manently laid-off workers who want and need it;

3 (4) provide customer-centered, high-quality em4 ployment and training services that give dislocated

5 workers the tools to make informed career and train6 ing choices;

7 (5) provide universal access to basic reemploy8 ment services, including assessment of skill levels

9 and service needs, labor market information, and job

10 search assistance;

11 (6) begin to transform the fragmented employ12 ment and training system through a network of

13 streamlined, one-stop career centers providing uni14 versal access to all Americans who want and need

15 new jobs, better jobs, and first jobs;

16 (7) replicate and expand the innovative efforts

17 of States and localities to provide comprehensive,

18 high-quality reemployment and training systems;

19 and

20 (8) create a National Labor Market Informa21 tion System that gives employers, training providers,

22 students, job seekers, and employees high-quality

23 and timely data on the local economy, labor market,

24 and other occupational information.
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1 SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

2 (a) TITLE I.—There are authorized to be appro3 priated to carry out title I—

4 (1) $1,465,000,000 for fiscal year 1995; and

5 (2) such sums as may be necessary for each

6 succeeding fiscal year.

7 (b) TITLES III AND IV.—There are authorized to be

8 appropriated to carry out titles III and IV—

9 (1) $250,000,000 for each of fiscal years 1995

10 through 1999; and

11 (2) such sums as may be necessary for each of

12 fiscal years 2000 through 2003.

13 SEC. 5. DEFINITIONS.

14 For the purposes of this Act, the following definitions

15 apply:

16 (1) The term ‘‘career center’’ means such cen17 ter established pursuant to section 118.

18 (2) The term ‘‘community-based organizations’’

19 means private nonprofit organizations which are rep20 resentative of communities or significant segments

21 of communities and which provide education, train22 ing and related services.

23 (3) The term ‘‘economic development agencies’’

24 includes State and local planning and zoning com25 missions or boards, community development agen26 cies, and other State and local agencies and institu-
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1 tions responsible for regulating, promoting, or assist2 ing in State and local economic development.

3 (4) The term ‘‘Governor’’ means the chief exec4 utive of any State.

5 (5) The term ‘‘labor market area’’ means an

6 economically integrated geographic area within

7 which individuals can reside and find employment

8 within a reasonable commuting distance or can

9 change employment without changing their place of

10 residence. Such areas shall be identified by the Sec11 retary in accordance with criteria used by the Bu12 reau of Labor Statistics of the Department of Labor

13 or the Bureau of the Census of the Department of

14 Commerce in defining such areas.

15 (6) The term ‘‘local elected official’’ means the

16 chief elected executive officer of a unit of general

17 local government in a substate area.

18 (7) The term ‘‘nontraditional employment’’ as

19 applied to women refers to occupations or fields of

20 work where women comprise less than 25 percent of

21 the individuals employed in such occupation or field

22 of work.

23 (8) The term ‘‘one-stop career center’’ means

24 such center established pursuant to section 313.
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1 (9) The term ‘‘private industry council’’ means

2 the private industry council established under sec3 tion 102 of the Job Training Partnership Act.

4 (10) The term ‘‘representatives of employees’’

5 means representatives from labor organizations (in6 cluding local, State, or national bodies, as appro7 priate) where such organization represents a sub8 stantial number of employees.

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

10 of Labor.

11 (12) The term ‘‘service delivery area’’ means

12 such an area as established in section 101 of the

13 Job Training Partnership Act.

14 (13) The term ‘‘service provider’’ means a pub15 lic agency, private nonprofit organization, or private16 for-profit entity that delivers basic reemployment,

17 intensive reemployment, educational, training, or

18 supportive services.

19 (14) The term ‘‘State’’ means any of the sev20 eral States, the District of Columbia, and the Com21 monwealth of Puerto Rico.

22 (15) The term ‘‘State council’’ means the State

23 job training coordinating council established under

24 section 122 of the Job Training Partnership Act.
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1 (16) The term ‘‘State Human Resource Invest2 ment Council’’ means the council established under

3 section 701 of the Job Training Partnership Act.

4 (17) The term ‘‘substate area’’ means that geo5 graphic area in a State established pursuant to

6 section 117.

7 (18) The term ‘‘substate grantee’’ means that

8 agency, organization, or consortium thereof selected

9 to administer programs pursuant to section 117(b).

10 (19) The term ‘‘unit of general local govern11 ment’’ means any general purpose political subdivi12 sion of a State which has the power to levy taxes

13 and spend funds, as well as general corporate and

14 police powers.

15 TITLE I—COMPREHENSIVE PROGRAM FOR

16 WORKER REEMPLOYMENT

17 SEC. 101. ALLOTMENT OF FUNDS.

18 (a) IN GENERAL.—Of the funds appropriated pursu19 ant to section 4(a) for any fiscal year, the Secretary

20 shall—

21 (1) allot 75 percent among the States in ac22 cordance with subsection (b); and

23 (2) reserve 25 percent to carry out part B, sub24 ject to the reservation required by subsection (e).
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1 (b) ALLOTMENT AMONG STATES.—(1) Subject to the

2 provisions of paragraphs (2) and (3), the Secretary shall

3 allot the amount available in each fiscal year under sub4 section (a)(1) on the basis of the following factors:

5 (A) One-third of such amount shall be allotted

6 among the States on the basis of the relative num7 ber of unemployed individuals who reside in each

8 State as compared to the total number of unem9 ployed individuals in all the States.

10 (B) One-third of such amount shall be allotted

11 among the States on the basis of the relative excess

12 number of unemployed individuals who reside in

13 each State as compared to the total excess number

14 of unemployed individuals in all the States. For pur15 poses of this paragraph, the term ‘‘excess number’’

16 means the number which represents unemployed in17 dividuals in excess of 4.5 percent of the civilian labor

18 force in the State.

19 (C) One-third of such amount shall be allotted

20 among the States on the basis of the relative num21 ber of individuals who have been unemployed for

22 more than 26 weeks and who reside in each State

23 as compared to the total number of such individuals

24 in all the States.
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1 (2) As soon as satisfactory data are available under

2 section 133(b)(2), the Secretary shall allot the amount

3 available in each fiscal year under subsection (a)(1) as fol4 lows:

5 (A) 25 percent of such amount shall be allotted

6 on the basis of each of the factors described in sub7 paragraphs (A), (B), and (C) of paragraph (1), re8 spectively, for a total of 75 percent of the amount

9 allotted; and

10 (B) 25 percent of such amount shall be allotted

11 on the basis of the relative number of dislocated

12 workers who reside in each State as compared to the

13 total number of dislocated workers in all States.

14 (3)(A) No State shall be allotted less than 90 percent

15 of its allotment percentage for the fiscal year preceding

16 the fiscal year for which the determination is made.

17 (B) No State shall be allotted more than 130 percent

18 of its allotment percentage for the fiscal year preceding

19 the fiscal year for which the determination is made.

20 (C)(i) Except as provided in clause (ii), for purposes

21 of this paragraph the allotment percentage of a State for

22 a fiscal year shall be the percentage of funds allotted to

23 the State under this subsection.

24 (ii) For the purposes of this paragraph, the allotment

25 percentage for fiscal year 1994 shall be the percentage of
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1 funds allotted to the State under section 302 of the Job

2 Training Partnership Act.

3 (c) RESERVATIONS FOR STATE ACTIVITIES.—

4 (1) The Governor may reserve up to 30 percent

5 of the amount allotted to the State under subsection

6 (b) to carry out State activities in accordance with

7 this title.

8 (2) Of the amount reserved by the Governor

9 pursuant to paragraph (1)—

10 (A) not more than 15 percent shall be

11 available for the costs of administration of pro12 grams authorized under this title;

13 (B) not more than 20 percent shall be

14 available for the costs of administration of pro15 grams authorized under this title and the costs

16 of technical assistance; and

17 (C) not more than 5 percent shall be avail18 able to carry out the job retention projects au19 thorized under section 116.

20 (d) WITHIN STATE DISTRIBUTION.—

21 (1) The Governor shall allocate the remainder

22 of the amount allotted to the State under subsection

23 (b) to substate areas to carry out activities author24 ized under this title based on an allocation formula

25 prescribed by the Governor. Such formula may be
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1 amended by the Governor not more than once for

2 each program year. Such formula shall include the

3 factors described in subsection (b) and such addi4 tional objective and measurable factors as the Gov5 ernor determines are appropriate.

6 (2) Of the amount allocated to each substate

7 area pursuant to paragraph (1) for each program

8 year, not more than 15 percent shall be available for

9 the costs of administration.

10 (e) RESERVATION FOR THE TERRITORIES.—Of the

11 amount reserved by the Secretary under subsection (a)(2)

12 for any fiscal year, not more than 0.3 percent shall be

13 allocated among Guam, the Virgin Islands, American

14 Samoa, the Commonwealth of the Northern Mariana Is15 lands, the Federated States of Micronesia, the Republic

16 of the Marshall Islands, and Palau to carry out activities

17 authorized under this title.

18 (f) RESERVATIONS FOR NATIONAL ACTIVITIES.—Of

19 the remainder reserved by the Secretary under subsection

20 (a)(2):

21 (1) For each of fiscal years 1995 through

22 1999—

23 (A) not less than 80 percent shall be avail24 able for national discretionary grants under sec25 tions 131 and 132; and
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1 (B) not more than 20 percent shall be

2 available for—

3 (i) evaluation of program perform4 ance, research, and pilot and demonstra5 tion projects described in section 133; and

6 (ii) capacity building, staff develop7 ment and training, and technical assist8 ance described under section 134.

9 (2) For fiscal year 2000 and each succeeding

10 fiscal year—

11 (A) not less than 85 percent shall be avail12 able for national discretionary grants under sec13 tions 131 and 132; and

14 (B) not more than 15 percent shall be

15 available for—

16 (i) evaluation of program perform17 ance, research, and pilot and demonstra18 tion projects described in section 133; and

19 (ii) capacity building, staff develop20 ment and training, and technical assist21 ance described under section 134.

22 SEC. 102. RECAPTURE AND USE OF UNEXPENDED FUNDS.

23 (a) IN GENERAL.—For program years beginning

24 July 1, 1996 and thereafter, the Secretary shall, in ac25 cordance with this section—
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1 (1) recapture funds appropriated for such pro2 gram years that are available for recapture, and

3 (2) use the funds recaptured under paragraph

4 (1) to carry out the national discretionary grant pro5 gram under section 131.

6 (b) AMOUNTS AVAILABLE FOR RECAPTURE.—The

7 amount available for recapture is equal to—

8 (1) the amount by which the unexpended bal9 ance of the State allotment (under section 101(b))

10 at the end of the program year prior to the program

11 year for which the determination under this section

12 is made exceeds 20 percent of such allotment for

13 that prior program year, plus

14 (2) the unexpended balance of the State allot15 ment from any program year prior to the program

16 year in which there is such excess.

17 (c) EXCLUSION.—For purposes of this section, funds

18 awarded to the State from the discretionary funds of the

19 Secretary pursuant to sections 131 and 132 shall not be

20 included in calculating the amounts available for recap21 ture.

22 (d) METHOD OF RECAPTURE.—The Secretary may,

23 as a method of recapturing funds for the purposes of sub24 section (a)(1), reduce the allotment to the State under sec25 tion 101(b) for the program year subsequent to the pro-
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1 gram year for which the determination is made by an

2 amount equal to the amount available for recapture.

3 SEC. 103. ELIGIBILITY FOR SERVICES.

4 (a) IN GENERAL.—An individual shall be eligible to

5 receive services under this title if such individual—

6 (1) has been permanently laid off from full7 time, part-time, or seasonal (including farmworkers

8 and fishermen) employment within the preceding 12-

9 month period, and

10 (A) such individual is unlikely to obtain

11 employment in the same or similar occupation

12 due to obsolete skills or a lack of employment

13 opportunities; or

14 (B) such layoff resulted from any perma15 nent closure or any substantial layoff at a

16 plant, facility or enterprise;

17 (2) has received a notice that such individual

18 will be permanently laid off, and

19 (A) such individual is unlikely to obtain

20 employment in the same or similar occupation

21 due to obsolete skills or a lack of employment

22 opportunities; or

23 (B) such layoff will result from any perma24 nent closure or substantial layoff at a plant, fa25 cility, or enterprise;
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1 (3) is employed at a facility where the employer

2 has publicly announced that such facility will be

3 closed within one year and such individual is un4 likely to—

5 (A) remain employed with such employer

6 at another location; or

7 (B) retire permanently from the labor

8 force on or before such closure;

9 (4) is long-term unemployed and has limited op10 portunities for employment in the same or similar

11 occupation in which such individual was previously

12 employed;

13 (5) was self-employed (including farmers, fish14 ermen and ranchers) and is unemployed as a result

15 of general economic conditions in the community in

16 which such individual resides or because of natural

17 disasters;

18 (6) is certified as eligible under the transitional

19 certification of trade impacted workers program au20 thorized under part D of title II of this Act; or

21 (7) was identified and referred to the program

22 under this title, in accordance with regulations is23 sued by the Secretary, by a State worker profiling

24 system established under section 303(j) of the Social

25 Security Act.
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1 (b) DISPLACED HOMEMAKERS.—An individual who is

2 a displaced homemaker shall be eligible to receive services

3 described in section 119(b) and such other services au4 thorized under this title as the Governor determines are

5 appropriate to provide to such individuals if—

6 (1) the displacement occurred within the pre7 ceding 12-month period,

8 (2) such individual is unemployed, and

9 (3) such individual meets the requirements re10 lating to services provided under this title, other

11 than the requirements of subsection (a).

12 (c) DEFINITIONS.—For purposes of this section:

13 (1) The term ‘‘permanently laid off’’ means a

14 layoff under which a recall is not expected within 26

15 weeks.

16 (2) The term ‘‘long-term unemployed’’ means a

17 period of unemployment defined by the Governor,

18 except that such period shall not be less than 27

19 weeks.

20 (3) The term ‘‘displaced homemakers’’ has the

21 same meaning given such term in section 4(29) of

22 the Job Training Partnership Act.
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1 PART A—STATE AND SUBSTATE DELIVERY

2 SYSTEM

3 SEC. 111. STATE ADMINISTRATION AND OVERSIGHT.

4 The State shall be responsible for developing and op5 erating administrative and management systems which en6 sure proper control and accountability for the use of

7 funds, in accordance with the requirements of part E of

8 this title, and the accomplishment of the objectives of this

9 title.

10 SEC. 112. DESIGNATION AND FUNCTIONS OF STATE DIS11 LOCATED WORKER UNIT.

12 (a) IN GENERAL.—The Governor shall designate or

13 establish a dislocated worker unit at the State level (here14 after referred to as the ‘‘State dislocated worker unit’’)

15 to carry out the functions described in this section.

16 (b) FUNCTIONS OF UNIT.—

17 (1) RAPID RESPONSE.—The State dislocated

18 worker unit shall carry out the following rapid re19 sponse activities:

20 (A) receive notices provided pursuant to

21 the Worker Adjustment and Retraining Notifi22 cation Act and collect information identifying

23 the site of other permanent closures and layoffs

24 affecting 50 or more workers;

25 (B) establish contact with representatives

26 of the employer, affected workers and affected
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1 unions, and affected substate grantees within

2 48 hours of being informed of or otherwise

3 identifying such closure or layoff;

4 (C) provide assistance on site within five

5 working days of being informed of or otherwise

6 identifying such closure or layoff (unless rep7 resentatives of the affected workers agree to

8 defer the commencement of assistance), includ9 ing—

10 (i) the provision of information relat11 ing to, and assistance in obtaining access

12 to, available programs and services;

13 (ii) the provision of appropriate reem14 ployment services on an emergency basis;

15 and

16 (iii) the provision of basic reemploy17 ment services in a group setting;

18 (D) promote the formation of worker-man19 agement transition assistance committees,

20 which meet the requirements of subsection (d),

21 by—

22 (i) providing immediate assistance in

23 the establishment of such committees, in24 cluding—
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1 (I) providing immediate financial

2 assistance to cover start-up costs of

3 the committee;

4 (II) providing a list of individuals

5 from which the chairperson of the

6 committee may be selected; and

7 (III) requesting the list of com8 mittee members from the employer

9 and union, or providing assistance in

10 the selection of worker representatives

11 in the event no union is present; and

12 (ii) providing technical assistance in

13 the development by such committees of a

14 strategy for assessing the employment and

15 training needs of each affected worker and

16 for obtaining the services and assistance

17 necessary to meet those needs, which may

18 include—

19 (I) providing technical advice as

20 well as information on sources of as21 sistance, and

22 (II) serving as liaison with other

23 public and private services and pro24 grams;
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1 (E) prepare an action plan for the provi2 sion of reemployment and training services to

3 eligible individuals, including group counseling,

4 preliminary assessments, and labor market in5 formation, which may include assistance in

6 planning for the establishment of an on-site

7 transition center described in section 115(c).

8 (2) INFORMATION COLLECTION AND DISSEMI9 NATION.—The State dislocated worker unit shall

10 carry out the following information collection and

11 dissemination activities:

12 (A) provide to employers and employees

13 throughout the State information relating to

14 the Worker Adjustment and Retraining Notifi15 cation Act, including the requirements of such

16 Act, and information relating to the eligibility

17 requirements and services and benefits available

18 under this title;

19 (B) collect information relating to—

20 (i) economic dislocation, including po21 tential closings and layoffs and the impact

22 of closures and layoffs to which such unit

23 has responded, and

24 (ii) available programs and resources

25 within the State to serve affected workers;
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1 (C) disseminate the information collected

2 pursuant to subparagraph (B) to the Governor

3 to assist in providing an adequate information

4 base for effective program management, review,

5 and evaluation; and

6 (D) disseminate information throughout

7 the State on the services and activities carried

8 out by the State dislocated worker unit.

9 (3) PROGRAM SUPPORT.—The State dislocated

10 unit shall carry out the following program support

11 activities:

12 (A) provide technical assistance and advice

13 to substate grantees;

14 (B) work with employers and representa15 tives of employees in promoting labor-manage16 ment cooperation to achieve the objectives of

17 this title; and

18 (C) assist each local community affected by

19 a mass layoff or plant closing in developing and

20 implementing an adjustment plan, including as21 sistance in obtaining access to State economic

22 development assistance.

23 (4) COORDINATION.—The State dislocated

24 worker unit shall exchange information and coordi25 nate programs with:
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1 (A) the appropriate economic development

2 agency and job retention projects authorized

3 under section 116, for the purpose of identify4 ing potential layoffs and for the purpose of de5 veloping strategies to avert plant closings or

6 mass layoffs and to accelerate the reemploy7 ment of dislocated workers;

8 (B) State education, training and social

9 services programs;

10 (C) State labor federations;

11 (D) State-level general purpose business

12 organizations; and

13 (E) all other programs available to assist

14 dislocated workers, including the Employment

15 Service, the unemployment insurance system,

16 one-stop career centers established under title

17 III of this Act, and student financial aid pro18 grams.

19 (c) COORDINATION WITH CAREER CENTERS.—In

20 carrying out this section, the State dislocated worker unit

21 shall coordinate its actions with the affected substate

22 grantees and career centers.

23 (d) WORKER-MANAGEMENT TRANSITION ASSIST24 ANCE COMMITTEES.—The worker-management transition

25 assistance committees promoted by the State dislocated
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1 worker unit pursuant to subsection (b)(1)(D) shall ordi2 narily include (but not be limited to) the following:

3 (1) shared and equal participation by workers

4 (and their representatives) and management, and

5 which may include participation from community

6 representatives as appropriate;

7 (2) shared financial participation between the

8 employer and the State, using funds provided under

9 this title in paying for the operating expenses of the

10 committee;

11 (3) a chairperson, to oversee and guide the ac12 tivities of the committee, who shall—

13 (A) be jointly selected by the worker and

14 management representatives of the committee,

15 (B) not be employed or under contract

16 with or members of the immediate family of

17 labor or management at the site, and

18 (C) provide advice and leadership to the

19 committee and prepare a report on its activities;

20 and

21 (4) operations pursuant to a formal agree22 ment, terminated at will by the workers or

23 management, and terminated for cause by the

24 Governor.
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1 (e) COVERAGE OF LAYOFFS.—The Governor may au2 thorize the provision of the rapid response activities de3 scribed in subsection (b)(1) to layoffs of less than 50

4 workers if such layoffs are determined by the Governor

5 to have a significant adverse economic impact on a local

6 community.

7 (f) PLANT BUYOUT STUDY.—In a situation involving

8 an impending permanent closure or substantial layoff, a

9 State may provide funds, where other public or private re10 sources are not expeditiously available, for a preliminary

11 assessment of the advisability of having a company or

12 group, including the workers, purchase the plant and con13 tinue it in operation. Such assessment shall not include

14 a feasibility study relating to such purchase.

15 (g) PROHIBITION ON TRANSFER OF RESPONSIBIL16 ITY.—The State shall not transfer the responsibility for

17 the rapid response assistance functions of the State unit

18 under this section to another entity, but the State may

19 carry out such functions through agreement, grant, con20 tract, or other arrangement with another entity, such as

21 a substate grantee or a career center.

22 (h) FEDERAL OVERSIGHT OF RAPID RESPONSE.—

23 The Secretary shall oversee the administration by each

24 State of the rapid response assistance services provided

25 in such State and evaluate the effectiveness, efficiency,
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1 and timeliness of the delivery of such services. The Sec2 retary may establish performance standards relating to

3 the provision of such services by the State. If the Sec4 retary determines that such services are not being per5 formed adequately, the Secretary shall implement appro6 priate corrective action.

7 SEC. 113. DEVELOPMENT AND MAINTENANCE OF STATE

8 AND LOCAL LABOR MARKET INFORMATION

9 SYSTEMS.

10 (a) IN GENERAL.— In furtherance of the national

11 strategy described in section 402 of this Act to establish

12 a nationwide system of effective labor market information,

13 the Governor shall identify, or develop, and maintain a

14 comprehensive labor market information system in the

15 State that—

16 (1) promotes the collection, use, exchange, and

17 dissemination of quality labor market information

18 that will enhance the employment opportunities

19 available to permanently laid off workers and other

20 individuals seeking employment, and

21 (2) provides support for needed improvements

22 or adjustments in current labor market information

23 systems and integrates such systems to meet local

24 and State labor market needs.
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1 (b) CONTENT.—The labor market information de2 scribed in subsection (a)(1) shall include the information

3 specified in section 403(a) of this Act relating to the na4 tional labor market information system.

5 (c) STANDARDS FOR INFORMATION COLLECTION AND

6 DISSEMINATION.—The Governor shall ensure that data

7 collection and dissemination systems are developed in ac8 cordance with the technical standards specified in section

9 403(b) of this Act relating to the national labor market

10 information system.

11 (d) COORDINATION OF DATA COLLECTION AND SUR12 VEY CONSOLIDATION.—Consistent with the technical

13 standards specified in section 403(b), the Governor shall

14 ensure, to the extent feasible that—

15 (1) automated technology will be used in data

16 collection and dissemination;

17 (2) the State dislocated worker unit, the sub18 state grantees, and the career centers under this

19 title have timely access to and exchange information

20 relating to quality labor market information;

21 (3) administrative records are designed to re22 duce paperwork; and

23 (4) available administrative data and multiple

24 surveys are shared or consolidated to reduce duplica25 tion of record-keeping of State and local agencies.
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1 (e) DESIGN OF STATE SYSTEM.—The Governor shall

2 designate an agent within the State to be responsible for

3 oversight and management of a statewide comprehensive

4 labor market and occupational information system that—

5 (1) meets the requirements of this section;

6 (2) provides such training and technical assist7 ance necessary to facilitate the collection of data and

8 the dissemination of information through the pro9 grams assisted under this title;

10 (3) provides funding for the State share of the

11 cooperative agreements authorized in section 402;

12 and

13 (4) funds research, evaluation, and demonstra14 tion projects designed to make improvements in the

15 statewide labor market information system.

16 (f) COORDINATION OF RESOURCES.—The Governor

17 shall coordinate the activities carried out under this title

18 with the labor market information activities carried out

19 in the State pursuant to other Federal laws and with the

20 national labor market information program described in

21 title IV of this Act. In maintaining the system described

22 under this section, the Governor may use funds that are

23 otherwise available to the Governor for such purposes

24 under other Federal laws, such as the Job Training Part25 nership Act and the Wagner-Peyser Act.
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1 (g) METHODS OF COLLECTION AND DISSEMINA2 TION.—In order to facilitate the collection and dissemina3 tion of the data described in subsection (b), the Governor

4 shall:

5 (1) Identify and utilize cost-effective methods

6 for obtaining such data as are necessary to carry out

7 this section which, notwithstanding any other provi8 sion of law, may include access to earnings records,

9 State employment security records, records collected

10 under the Federal Insurance Contributions Act

11 (chapter 21 of the Internal Revenue Code of 1986),

12 State aid to families with dependent children

13 records, secondary and post-secondary education

14 records, and similar records or measures, with ap15 propriate safeguards to protect the confidentiality of

16 the information obtained; and

17 (2) Publish and make available labor market

18 and occupational supply and demand information

19 and career information to State agencies, public

20 agencies, libraries, employers, and individuals who

21 are in the process of making career choices.

22 SEC. 114. COORDINATION WITH WORKER PROFILING AND

23 RETRAINING INCOME SUPPORT PROGRAMS.

24 (a) WORKER PROFILING.—The Governor shall co25 ordinate programs under this title with the worker
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1 profiling system authorized under title III of the Social

2 Security Act. Such coordination shall include methods for

3 ensuring the prompt referral, in accordance with regula4 tions issued by the Secretary, of the claimants identified

5 under such profiling system to career centers authorized

6 under this title, and the sharing of relevant information.

7 (b) RETRAINING INCOME SUPPORT.—The Governor

8 shall coordinate programs under this title with the retrain9 ing income support program authorized under part A of

10 title II of this Act.

11 SEC. 115. STATE SUPPLEMENTARY GRANTS FOR AREAS OF

12 SPECIAL NEED.

13 (a) IN GENERAL.—The Governor may award grants

14 to provide the services authorized under section 119 to eli15 gible individuals in areas of the State experiencing sub16 stantial increases in the number of eligible individuals due

17 to plant closures, base closures and mass layoffs.

18 (b) ELIGIBLE ENTITIES.—The grants authorized

19 under subsection (a) may be awarded to—

20 (1) the substate grantees in the areas affected

21 by such closures and mass layoffs;

22 (2) employers and employer associations;

23 (3) transition assistance committees and other

24 employer-employee entities;

25 (4) representatives of employees;
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1 (5) industry consortia; and

2 (6) State agencies.

3 (c) ESTABLISHMENT OF ADDITIONAL SERVICE CEN4 TERS.—

5 (1) IN GENERAL.—The Governor may use the

6 grant funds available under this section to establish

7 a center, including an on-site transition center de8 scribed in paragraph (2), at the site of a plant clo9 sure, base closure or mass layoff to provide the serv10 ices described in section 119. Such center shall be

11 established after formal consultation with the sub12 state grantee for the affected area and shall be oper13 ated in coordination with the career centers in the

14 affected area.

15 (2) ON-SITE TRANSITION CENTERS.—Funds

16 available under this section may be used to establish

17 a transition center that—

18 (A) is located at the site of a plant closure,

19 base closure, or mass layoff for the purpose of

20 providing reemployment services to eligible indi21 viduals affected by such layoff or closure,

22 (B) includes substantial funding from

23 sources other than public funds,

24 (C) is operated with the concurrence and

25 participation of affected workers and their rep-
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•HR 4040 SC

1 resentatives and the affected employer, includ2 ing the worker-management transition assist3 ance committee established in accordance with

4 section 112(d) if such committee is established,

5 (D) provides the reemployment services de6 scribed in sections 119 (b) and (c) directly or

7 through contracts with other entities, such as

8 outplacement agencies, and

9 (E) is administered in coordination with

10 the career centers in the substate area, includ11 ing arrangements to ensure that the affected

12 workers have the opportunity to receive services

13 at the career centers in addition to or in lieu of

14 receiving such services at the transition center.

15 SEC. 116. STATE GRANTS FOR JOB RETENTION PROJECTS.

16 (a) IN GENERAL.—The Governor may, consistent

17 with the limitation contained in section 101(c)(2)(B),

18 award grants to assist projects that—

19 (1) provide services to upgrade the skills of em20 ployed workers who are at risk of being permanently

21 laid off; and

22 (2) assist in retraining employed workers in

23 new technologies and work processes that will facili24 tate the conversion or restructuring of businesses
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1 into high performance work organizations and avert

2 plant closings or substantial layoffs.

3 (b) STATE AND EMPLOYER CONTRIBUTION RE4 QUIRED.—In order for a project to be eligible for assist5 ance under subsection (a), the amount of the grant to be

6 awarded shall be matched by an equal amount provided

7 by a combination of—

8 (1) funds provided by the State, from funds

9 other than federal funds; and

10 (2) funds provided by the affected employers or

11 businesses.

12 (c) CONSULTATIONS.—Prior to awarding grants

13 under this section, the Governor shall consult with unions

14 representing affected workers regarding the proposed

15 projects.

16 SEC. 117. ESTABLISHMENT OF SUBSTATE ADMINISTRATIVE

17 STRUCTURE.

18 (a) DESIGNATION OF SUBSTATE AREAS.—

19 (1) The Governor of each State shall, after con20 sultation with the State council and local elected of21 ficials, designate substate areas for the State.

22 (2) Each service delivery area within a State

23 shall be included within a substate area and no serv24 ice delivery area shall be divided among two or more

25 substate areas.
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1 (3) In making designations of substate areas,

2 the Governor shall consider—

3 (A) the availability of services throughout

4 the State;

5 (B) the capability to coordinate the deliv6 ery of services with other job training, human

7 services and economic development programs;

8 and

9 (C) the geographic boundaries of labor

10 market areas within the State.

11 (4) Subject to paragraphs (2) and (3), the Gov12 ernor—

13 (A) shall designate as a substate area any

14 single service delivery area that—

15 (i) has a population of 200,000 or

16 more, and

17 (ii) requests such designation;

18 (B) shall designate as a substate area any

19 two or more contiguous service delivery areas—

20 (i) that in the aggregate have a popu21 lation of 200,000 or more, and

22 (ii) that request such designation; and

23 (C) shall designate as a substate area any

24 concentrated employment program grantee for

25 a rural area described in section
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1 101(a)(4)(A)(iii) of the Job Training Partner2 ship Act.

3 (5) The Governor may deny a request for des4 ignation under paragraph (4)(B) if the Governor de5 termines that such designation would not be consist6 ent with the effective delivery of services to eligible

7 dislocated workers in various labor market areas (in8 cluding urban and rural areas) within the State, or

9 would not otherwise be appropriate to carry out the

10 purposes of this title.

11 (6) The Governor shall not designate as a sub12 state area any area with a population of less than

13 200,000 unless such area meets the requirements of

14 paragraph (4)(C).

15 (7) From the funds reserved under section

16 101(c)(1), the Governor may award grants to en17 courage the formation of substate areas that are

18 based on labor market areas.

19 (8) The Governor may designate as substate

20 areas under this title areas designated as substate

21 areas under title III of the Job Training Partnership

22 Act prior to the enactment of this Act if such areas

23 meet the requirements of this subsection.
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1 (9) The designations made under this sub2 section may not be revised more than once every

3 four years.

4 (b) DESIGNATION OF SUBSTATE GRANTEES.—

5 (1) AGREEMENT—A substate grantee shall be

6 designated, on a quadrennial basis, for each substate

7 area. Such substate grantee shall be designated in

8 accordance with an agreement among the Governor,

9 the local elected official or officials of such area, and

10 the private industry council or councils of such area.

11 Whenever a substate area is represented by more

12 than one such official or council, the respective offi13 cials and councils shall each designate representa14 tives, in accordance with procedures established by

15 the Governor (after consultation with the State

16 council), to negotiate such agreement. In the event

17 agreement cannot be reached on the selection of a

18 substate grantee, the Governor shall select the sub19 state grantee.

20 (2) ELIGIBILITY.—Entities eligible for designa21 tion as substate grantees include—

22 (A) private industry councils in the sub23 state area;
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1 (B) service delivery area grant recipients

2 or administrative entities under the Job Train3 ing Partnership Act;

4 (C) private nonprofit organizations;

5 (D) units of general local government in

6 the substate area, or agencies thereof;

7 (E) local offices of State agencies;

8 (F) other public agencies, such as commu9 nity colleges and area vocational schools; and

10 (G) consortia of the entities described in

11 subparagraphs (A) through (F).

12 (c) FUNCTIONS OF SUBSTATE GRANTEES.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the substate grantees designated pursu15 ant to this subsection shall—

16 (A) receive and administer funds allocated

17 to the substate area, including the administra18 tion of payments to service providers in accord19 ance with section 119(d)(2);

20 (B) administer the process for the selection

21 of career center operators established pursuant

22 to section 118;

23 (C) conduct oversight and monitoring of

24 the program carried out within the substate

25 area and coordinate the operation of the career
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1 centers established within the substate area;

2 and

3 (D) prepare and make publically available

4 a biennial written plan describing the objectives

5 to be accomplished and the activities to be un6 dertaken in the substate area under this title.

7 (2) SPECIAL RULE.—

8 (A) SELECTION PROCESS FOR CAREER

9 CENTER OPERATORS.—If a substate grantee de10 sires to be selected to operate a career center,

11 the process for the selection of career center op12 erators in the substate area shall be adminis13 tered by the private industry council or councils

14 established in such substate area. If such sub15 state grantee is such private industry council,

16 the process for the selection of career center op17 erators in the substate area shall be adminis18 tered by the Governor.

19 (B) OVERSIGHT.—If a substate grantee is

20 selected to operate a career center, the over21 sight of the career centers in the substate area

22 shall be carried out by the Governor.

23 SEC. 118. ESTABLISHMENT OF CAREER CENTERS.

24 (a) IN GENERAL.—The substate grantee designated

25 pursuant to section 117 shall, in accordance with the re-
43

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1 quirements of this section, establish one or more career

2 centers in each substate area.

3 (b) FUNCTIONS OF CENTERS.—Each career center

4 shall be the point of access for eligible individuals to the

5 services provided pursuant to section 119.

6 (c) SELECTION OF CENTERS.—

7 (1) SELECTION PROCESS.—The substate grant8 ee shall select the career center operators in accord9 ance with the requirements of this subsection.

10 (2) ELIGIBLE ENTITIES.—Any entity or consor11 tium of entities located in the substate area may

12 apply, in accordance with the procedures described

13 in paragraph (3), to be selected as a career center

14 operator. Such entities may include—

15 (A) Employment Service offices,

16 (B) service delivery area grant recipients

17 or administrative entities under the Job Train18 ing Partnership Act,

19 (C) substate grantees under this title,

20 (D) community colleges and area voca21 tional schools,

22 (E) community-based and other private,

23 nonprofit organizations, and

24 (F) other interested private for-profit and

25 public organizations and entities.
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1 (3) PUBLICATION OF PROCEDURES.—The sub2 state grantee, after consultation with the Governor

3 and local elected officials, shall publish, in a manner

4 that is generally available, information to notify or5 ganizations and individuals in the substate area of—

6 (A) the estimated number of career centers

7 to be established in the substate area;

8 (B) the application procedure for any en9 tity or consortium of entities desiring to be se10 lected to operate such centers, including when

11 and where such application is to be submitted

12 and what information such application is to

13 contain;

14 (C) the criteria for selection that will be

15 used, consistent with paragraph (4); and

16 (D) other information the substate grantee

17 considers relevant to the selection of operators

18 and administration of such centers.

19 (4) SELECTION CRITERIA.—

20 (A) OBJECTIVE FACTORS.—The substate

21 grantee, consistent with guidelines issued by the

22 Secretary, shall use objective criteria and per23 formance measures in assessing applications

24 submitted for selection as a career center opera25 tor.
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1 (B) CONTENTS.—An applicant may not be

2 selected as a career center operator under this

3 title unless such applicant demonstrates to the

4 satisfaction of the substate grantee the ability

5 to operate a career center that would—

6 (i) provide the services described in

7 section 119;

8 (ii) utilize automated information sys9 tems to facilitate the exchange of informa10 tion among career centers;

11 (iii) meet the performance standards

12 prescribed pursuant to section 152;

13 (iv) meet the fiscal control require14 ments provided in part E;

15 (v) administer the process of referring

16 participants to education and training

17 services in an objective and equitable man18 ner; and

19 (vi) meet such other requirements as

20 the substate grantee determines is appro21 priate.

22 (C) LEVEL OF WAGES AND BENEFITS.—

23 The level of wages and benefits paid to non24 managerial employees by an applicant may not

25 be considered as a factor in the selection of a
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1 career center operator. Other cost factors may

2 be taken into account in such selection.

3 (5) PERIOD OF SELECTION.—The substate

4 grantee shall select career center operators pursuant

5 to the requirements of this subsection once every

6 four years.

7 (6) ENFORCEMENT OF HONEST BROKER FUNC8 TIONS.—The substate grantee shall review, at least

9 once each program year, the education and training

10 referral practices of any career center that is oper11 ated by an entity that concurrently provides edu12 cation and training services to participants under

13 this title. If the substate grantee determines that

14 such center has engaged in a pattern of inappropri15 ate referrals to the education and training services

16 provided by the operator of such center, the substate

17 grantee may terminate the agreement to operate

18 such center or may require such operator to cease

19 providing education and training services to partici20 pants under this title as a condition for continuing

21 to operate such center.

22 (d) ON-SITE TRANSITION CENTERS.—In addition to

23 the career centers established under this section, a sub24 state grantee may use funds allocated to the substate area

25 to establish temporary, on-site transition centers that
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1 meet the requirements described in section 115(c)(2).

2 Such centers may be established pursuant to grants, con3 tracts, or other arrangements with the entities described

4 in subsection (c)(2) of this section.

5 SEC. 119. SERVICES TO BE PROVIDED TO ELIGIBLE INDI6 VIDUALS.

7 (a) IN GENERAL.—Funds allocated to substate areas

8 pursuant to section 101(d) may be used to provide—

9 (1) basic reemployment services in accordance

10 with subsection (b);

11 (2) intensive reemployment services in accord12 ance with subsection (c);

13 (3) education and training services in accord14 ance with subsection (d);

15 (4) retraining income support in accordance

16 with subsection (e);

17 (5) supportive services in accordance with sub18 section (f); and

19 (6) supplemental wage allowances for older

20 workers in accordance with subsection (g).

21 (b) BASIC REEMPLOYMENT SERVICES.—Each career

22 center established pursuant to this title shall make avail23 able to eligible individuals the following services:

24 (1) outreach and provision of information to

25 make individuals aware of, and encourage the use of,
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1 reemployment and training services, including efforts

2 to expand awareness of training and placement op3 portunities for hard-to-serve individuals such as

4 those with limited English proficiency and those with

5 disabilities;

6 (2) intake and determination of eligibility for

7 assistance under this title;

8 (3) orientation to the information and services

9 available through such center;

10 (4) assistance in filing an initial claim for un11 employment compensation;

12 (5) a preliminary assessment of the skill levels

13 (including appropriate testing) and service needs of

14 such individuals, which may include such factors as

15 basic skills, occupational skills, prior work experi16 ence, employability, interests, aptitudes, and sup17 portive service needs;

18 (6) information relating to local, regional and

19 national labor markets, including—

20 (A) job vacancy listings in such markets,

21 and

22 (B) information relating to local occupa23 tions in demand and the earnings and skill re24 quirements for such occupations;
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1 (7) job search assistance, including resume and

2 interview preparation, and workshops;

3 (8) job referral and job placement assistance;

4 (9) information relating to education and job

5 training programs, including the eligibility require6 ments of and services provided by such programs,

7 the availability and quality of such programs, and

8 student financial assistance available for such pro9 grams;

10 (10) assistance in evaluating whether such indi11 viduals are likely to be eligible for any employment

12 and training programs administered by the Sec13 retary other than this title;

14 (11) information collected pursuant to the per15 formance standards and quality assurance require16 ments of part C of this title;

17 (12) information relating to programs and pro18 viders of dependent care and other supportive serv19 ices available in the local area;

20 (13) group counseling, which may include peer

21 counseling, and which shall be available to such indi22 viduals jointly with their immediate families, includ23 ing group counseling relating to stress management

24 and financial management; and
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1 (14) soliciting and accepting job orders submit2 ted by employers in the substate area, and referring

3 individuals in accordance with such orders.

4 (c) INTENSIVE REEMPLOYMENT SERVICES.—

5 (1) IN GENERAL.—Each career center estab6 lished pursuant to this title shall make available, to

7 eligible individuals who have received basic reemploy8 ment services under subsection (b) and have been

9 unable to obtain employment through such services,

10 the following services:

11 (A) comprehensive and specialized assess12 ments of the skill levels and service needs of in13 dividuals, which may include—

14 (i) diagnostic testing and other assess15 ment tools; and

16 (ii) in-depth interviewing and evalua17 tion to identify employment barriers and

18 appropriate employment goals;

19 (B) the development of an individual reem20 ployment plan, which shall identify the employ21 ment goal (including, in appropriate cir22 cumstances, nontraditional employment), appro23 priate achievement objectives, and the appro24 priate combination of services for a participant

25 to achieve the employment goal;
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1 (C) individualized counseling and career

2 planning, including peer counseling and coun3 seling and planning relating to nontraditional

4 employment opportunities;

5 (D) case management for individuals re6 ceiving education, training and supportive serv7 ices;

8 (E) job development;

9 (F) out-of-area job search allowances;

10 (G) relocation allowances;

11 (H) assistance in the selection of education

12 and training providers;

13 (I) assistance in obtaining income support

14 for which the individual is eligible, including

15 student financial assistance, to enable such in16 dividual to participate in training; and

17 (J) follow-up counseling for individuals

18 placed in training or employment.

19 (2) ADDITIONAL CONDITIONS.—

20 (A) REEMPLOYMENT PLAN.—

21 (i) JOINT DEVELOPMENT.—The indi22 vidual reemployment plan described in

23 paragraph (1)(B) shall be developed jointly

24 by the eligible individual and a career

25 counselor. Both parties shall sign the plan
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1 and periodically review the progress of the

2 individual in achieving the objectives set

3 forth in the plan. In the event of a dis4 agreement over the content of the plan, the

5 eligible individual shall be provided an op6 portunity to appeal the career counselor’s

7 recommendation pursuant to section 164.

8 (ii) EMPLOYMENT GOAL.—The em9 ployment goal identified under an individ10 ual reemployment plan described under

11 paragraph (1)(B) shall relate to employ12 ment in an occupation for which there is a

13 demand in the local area, or in another

14 area to which the individual is willing to

15 relocate.

16 (iii) PROHIBITION ON PRIVATE AC17 TIONS.— Nothing in this section shall be

18 construed to establish a right for an indi19 vidual to bring a private action to obtain

20 the services described in the reemployment

21 plan.

22 (B) OUT-OF-AREA JOB SEARCH ALLOW23 ANCE.—

24 (i) IN GENERAL.—Out-of-area job

25 search allowances provided under para-
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1 graph (1)(F) shall provide reimbursement

2 to the individual of not more than 90 per3 cent of the cost of necessary job search ex4 penses, up to a maximum payment speci5 fied by the Secretary in regulations.

6 (ii) CRITERIA FOR GRANTING JOB

7 SEARCH ALLOWANCES.—A job search al8 lowance may be granted only—

9 (I) to assist an eligible individual

10 in securing a job within the United

11 States; and

12 (II) where the career center de13 termines that such employee cannot

14 reasonably be expected to secure suit15 able employment in the commuting

16 area in which the worker resides.

17 (C) RELOCATION ALLOWANCE.—

18 (i) IN GENERAL.—Relocation allow19 ances provided under paragraph (1)(G)

20 may only be granted to assist an eligible

21 individual in relocating within the United

22 States and only if the career center deter23 mines that such employee—

24 (I) cannot reasonably be expected

25 to secure suitable employment in the
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1 commuting area in which the em2 ployee resides;

3 (II) has obtained suitable em4 ployment affording a reasonable ex5 pectation of long-term duration in the

6 area in which the employee wishes to

7 relocate, or has obtained a bona fide

8 offer of such employment, and

9 (III) is totally separated from

10 employment at the time relocation

11 commences.

12 (ii) AMOUNT OF RELOCATION ALLOW13 ANCE.—The amount of any relocation al14 lowance for any eligible individual may not

15 exceed an amount which is equal to the

16 sum of—

17 (I) 90 percent of the reasonable

18 and necessary expenses, specified in

19 regulations prescribed by the Sec20 retary, incurred in transporting an in21 dividual and the individual’s family, if

22 any, and household effects, and

23 (II) a lump sum equivalent to 3

24 times the employee’s average weekly

25 wage in the previous job, up to a max-
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1 imum payment specified by the Sec2 retary in regulations.

3 (d) EDUCATION AND TRAINING.—

4 (1) AVAILABLE SERVICES.—Each career center

5 shall make available a list of eligible providers of—

6 (A) basic skills training, including remedial

7 education, literacy training, and English-as-a8 second language instruction;

9 (B) occupational skills training, provided

10 either in a classroom or on-the-job; and

11 (C) other skills-based education and train12 ing that such center considers appropriate,

13 which may include entrepreneurial training and

14 training in skills required for high performance

15 work organizations, such as problem solving

16 and skills related to the use of new tech17 nologies.

18 (2) REFERRALS.—An eligible individual who

19 has an individual reemployment plan developed pur20 suant to subsection (c)(1)(B) that specifies edu21 cation and training services as are necessary to the

22 reemployment of such individual shall, in consulta23 tion with a career counselor, select a service provider

24 for such services from the list described in para25 graph (1). The career centers shall refer such indi-
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1 viduals to such service providers and arrange with

2 the substate grantee for payment to the provider for

3 the services provided consistent with the limitation

4 contained in paragraph (5).

5 (3) ELIGIBLE PROVIDERS.—For the purposes of

6 this title, an eligible provider of education and train7 ing services is a provider that meets the require8 ments of section 154.

9 (4) CONTRACT EXCEPTIONS.—Education and

10 training services authorized under this title may be

11 provided pursuant to a contract for services between

12 the substate grantee and an eligible service provider

13 in lieu of the referral procedures described in para14 graph (2) if such services—

15 (A) are customized by a provider to meet

16 the particular needs of a specific group of eligi17 ble individuals in the substate area; or

18 (B) are on-the-job training provided by an

19 employer.

20 (5) CAP ON TRAINING.—

21 (A) LIMITATION.—The program under this

22 title shall not pay an amount in excess of

23 $4750 for the provision of education and train24 ing to any individual under this subsection over

25 any 12-month period.
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1 (B) RELATIONSHIP TO STUDENT FINAN2 CIAL ASSISTANCE.—

3 (i) For purposes of determining a stu4 dent’s need for grant, loan, or work assist5 ance under title IV of the Higher Edu6 cation Act of 1965, the funds provided to

7 a participant for education and training

8 under this subsection shall be considered to

9 be estimated financial assistance not re10 ceived under such title IV for the purpose

11 of section 471(3) of such Act.

12 (ii) Notwithstanding section 401(b) of

13 such Act, the funds provided to a partici14 pant for education and training under this

15 subsection shall be applied to reduce the

16 student’s cost of attendance (as defined in

17 section 472 of such Act) prior to determin18 ing the amount of a student’s Federal Pell

19 Grant award under subpart 1 of part A of

20 title IV of such Act, except that such re21 duction shall not result in a negative num22 ber.

23 (iii) Nothing in this Act shall be con24 strued to modify the eligibility require25 ments applicable to students, programs of
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1 study, or institutions of higher education

2 under title IV of such Act.

3 (6) LIMIT ON LENGTH OF TRAINING.—No par4 ticipant may receive assistance from funds under

5 this title for education or training for more than 104

6 weeks in a five-year period.

7 (7) APPROVED TRAINING.—

8 (A) RELATIONSHIP TO INCOME SUPPORT

9 PROGRAM UNDER TITLE II.—For the purposes

10 of the program authorized under part A of title

11 II, the career centers shall be considered an

12 agency certified by the Secretary to develop a

13 reemployment plan.

14 (B) RELATIONSHIP TO UNEMPLOYMENT

15 COMPENSATION.—An eligible individual partici16 pating in education and training services under

17 this title shall be deemed to be in training with

18 the approval of the State agency for the pur19 poses of section 3304(a)(8) of the Internal Rev20 enue Code of 1986.

21 (8) ON-THE-JOB TRAINING.—The provisions of

22 paragraphs (5), (6), and (7) shall not apply to on23 the-job training provided under this title. Such on24 the-job training shall be provided consistent with the

25 limitations described in section 161(d).
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1 (e) RETRAINING INCOME SUPPORT.—

2 (1) IN GENERAL.—Eligible individuals receiving

3 education and training services pursuant to sub4 section (d) who meet the requirements for receiving

5 retraining income support under part A of title II of

6 this Act shall be referred to such program for such

7 support. For program years 1995 through 1999, in8 dividuals who do not meet the requirements of such

9 program but who do meet the requirements of para10 graph (2) shall, to the extent appropriated funds are

11 available, be provided retraining income support in

12 accordance with this subsection.

13 (2) ELIGIBILITY.—An eligible individual shall,

14 to the extent appropriated funds are available, be

15 provided retraining income support in accordance

16 with this subsection if such individual—

17 (A) has been permanently laid off;

18 (B) either—

19 (i) had been continuously employed at

20 the time of such permanent layoff for a pe21 riod of one year or more, but less than

22 three years, by the employer from whom

23 such individual has been permanently laid

24 off; or
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1 (ii) was continuously employed in the

2 same occupation and industry by an em3 ployer for a period of one year or more and

4 was, within the preceding 12-month pe5 riod—

6 (I) separated from such em7 ployer, and

8 (II) employed in the same occu9 pation and industry by the subsequent

10 employer from whom such individual

11 has been permanently laid off;

12 (C)(i) was entitled, as a result of the layoff

13 described in subparagraph (A), to (or would

14 have been entitled to if such individual had ap15 plied therefor) unemployment compensation

16 under any Federal or State law for a week

17 within the benefit period—

18 (I) in which the layoff took place,

19 or

20 (II) which began (or would have

21 begun) by reason of the filing of a

22 claim for unemployment compensation

23 by such individual after such layoff;

24 (ii) has exhausted all rights to any unem25 ployment compensation to which such individual
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1 was entitled (or would have been entitled if

2 such individual had applied therefor); and

3 (iii) does not have an unexpired waiting

4 period applicable to such individual for such un5 employment compensation;

6 (D) has been enrolled in education or

7 training pursuant to subsection (d) by—

8 (i) the end of the 16th week after the

9 permanent layoff described in subpara10 graph (A), or, if later, the end of the 14th

11 week after such individual was informed

12 that the layoff will exceed 6 months; or

13 (ii) a period that is not in excess of

14 30 days after the periods described in

15 clause (i), in cases where the substate

16 grantee determines, in accordance with

17 guidelines issued by the Secretary, that

18 there are extenuating circumstances that

19 justify such extension, such as a cancella20 tion of a course, a first available enroll21 ment date that is after the periods de22 scribed in subparagraph (A), or the com23 mencement of negotiations for reopening a

24 plant or facility from which an individual

25 has been laid off; and
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1 (E) is participating, and making satisfac2 tory progress, in education or training provided

3 pursuant to subsection (d).

4 (3) SPECIAL RULES.—

5 (A) CONTINUOUS EMPLOYMENT.—

6 (i) For purposes of clause (ii) of para7 graph (2)(B) and subject to the limitations

8 of clause (ii) of this subparagraph, contin9 uous employment shall be deemed to in10 clude any week in which an individual—

11 (I) was on employer-authorized

12 leave for purposes of vacation, sick13 ness, injury or inactive duty or active

14 duty military service for training,

15 (II) was on employer-authorized

16 leave because of circumstances de17 scribed in subsection 102(a) of the

18 Family and Medical Leave Act of

19 1993,

20 (III) did not work because of a

21 disability that is compensable under a

22 worker’s compensation law or plan of

23 a State or the United States,

24 (IV) had his, or her, employment

25 interrupted in order to serve as a full-
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1 time representative of a labor organi2 zation in such firm or subdivision,

3 (V) was on call-up for purposes

4 of active duty in a reserve status in

5 the Armed Forces of the United

6 States, provided such active duty is

7 ‘‘Federal service’’ as defined in 5

8 U.S.C. 8521(a)(1), or

9 (VI) was on temporary layoff.

10 (ii) For the purposes of clause (i), no

11 more than the following number of weeks

12 within a one year period may be treated as

13 weeks of employment—

14 (I) 7 weeks in the case of weeks

15 described in subclauses (I) or (IV) of

16 clause (i), or both;

17 (II) 12 weeks in the case of

18 weeks described in subclause (II) of

19 clause (i); and

20 (III) 26 weeks in the case of

21 weeks described in subclauses (III)

22 and (V) of clause (i).

23 (B) SAME EMPLOYER.—

24 (i) For the purposes of clause (ii) of

25 paragraph (2)(B), employment deemed to
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1 be employment for a single employer shall

2 include—

3 (I) all employment that was cov4 ered by a multiemployer plan defined

5 by section 4001(a)(3) of the Employee

6 Retirement Income Security Act of

7 1974;

8 (II) all employment that was ob9 tained through a single hiring hall,

10 (III) all employment for the em11 ployer from whom the individual was

12 laid-off or the predecessor of such em13 ployer, and

14 (IV) all employment for employ15 ers in a joint employment relation16 ship, as described in section 791.2(b)

17 of title 29 of the Code of Federal Reg18 ulations, with the individual.

19 (ii) For purposes of subclause (III) of

20 clause (i), an employer shall be considered

21 a predecessor of the employer from whom

22 the individual was laid-off (hereinafter re23 ferred to as successor employer) if—

24 (I) the successor employer ac25 quired substantially all the property
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•HR 4040 SC

1 used in a trade or business, or used in

2 a separate unit of a trade or business,

3 from such employer; and

4 (II) the individual who was laid

5 off was employed by such employer in

6 such trade or business, or in a sepa7 rate unit of such trade or business,

8 immediately before the acquisition and

9 was employed by the successor em10 ployer immediately after the acquisi11 tion.

12 (C) INDIVIDUAL TREATED AS PARTICIPAT13 ING IN EDUCATION OR TRAINING PROGRAM.—

14 For purposes of subparagraph (E) of paragraph

15 (2), an individual shall be treated as participat16 ing, and making satisfactory progress, in an

17 education or training program during any week

18 which is part of a break from training that does

19 not exceed 28 days if the break is provided

20 under such program.

21 (4) WEEKLY AMOUNT OF PAYMENTS.—The re22 training income support payment payable to an indi23 vidual under this subsection shall be an amount

24 equal to the most recent benefit amount of the un25 employment compensation payable to such individual
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1 for a week of total unemployment preceding such in2 dividual’s first exhaustion of unemployment com3 pensation related to the permanent layoff reduced

4 (but not below zero) by—

5 (A) any training income support provided

6 for such week to such individual under another

7 Federal program;

8 (B) income that is earned from employ9 ment that exceeds one-half the amount equal to

10 the most recent weekly benefit amount of the

11 unemployment compensation payable to such

12 individual for a week of total unemployment.

13 (5) TOTAL AMOUNT OF PAYMENTS.—The maxi14 mum amount of retraining income support payable

15 to an individual under this subsection shall be the

16 amount which is the product of 26 multiplied by the

17 retraining income support payable to the individual

18 for a week of total unemployment (as determined

19 under paragraph (4)), but such product shall be re20 duced by the total sum of extended and additional

21 compensation to which the individual was entitled in

22 the worker’s first benefit period as described in

23 paragraph (2)(C).

24 (6) ADMINISTRATION.—The substate grantee

25 shall enter into an agreement with the State agency
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•HR 4040 SC

1 charged with the administration of the State unem2 ployment compensation law under which such agency

3 will administer, on a cost-reimbursable basis, the re4 training income support payments authorized under

5 this subsection.

6 (7) CAREER CENTER ROLE.—Each career cen7 ter shall assist an individual receiving education or

8 training pursuant to subsection (d) in applying for

9 retraining income support under either part A of

10 title II of this Act or this subsection depending on

11 the program for which such individual is eligible. If

12 such individual is not eligible for either program and

13 such individual believes income support is necessary

14 to enable participation in training, the career center

15 shall assist such individual in applying for other ap16 propriate sources of such income support, including

17 student financial aid.

18 (8) INFORMATION DISSEMINATION.—The career

19 centers shall provide individuals determined eligible

20 under this title with information relating to the

21 availability of retraining income support and the re22 quirements relating to eligibility for such support.

23 Such information shall include the provision, as soon

24 as is practicable, of information to such individuals

25 describing the time periods by which enrollment in
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1 education and training must occur in order to be eli2 gible for retraining income support pursuant to

3 paragraph (2)(D) of this subsection and section 202

4 of this Act. In addition, the substate grantee shall

5 make arrangements with the State agency charged

6 with the administration of the State unemployment

7 compensation law to make such information gen8 erally available to claimants along with other infor9 mation describing the services available under this

10 title.

11 (f) SUPPORTIVE SERVICES.—

12 (1) IN GENERAL.—Each career center shall

13 make available to an eligible individual, either

14 through direct payment, payment to a service pro15 vider, or arrangements through appropriate agen16 cies, such supportive services as are identified in

17 such individual’s reemployment plan as necessary to

18 enable such individual to participate in intensive re19 employment services or education and training serv20 ices.

21 (2) OPTIONAL SERVICES.—Each career center

22 may make available to an eligible individual such

23 supportive services as such center determines is ap24 propriate to enable such individual to participate in

25 basic reemployment services.
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1 (3) SERVICES AVAILABLE.—The supportive

2 services provided pursuant to this subsection may in3 clude, but are not limited to, transportation, depend4 ent care, meals, health care, temporary shelter,

5 needs-related payments, drug and alcohol abuse

6 counseling and referral, family counseling, and other

7 similar services.

8 (g) SUPPLEMENTAL WAGE ALLOWANCE FOR OLDER

9 WORKERS.—

10 (1) IN GENERAL.—An eligible individual may

11 receive a supplemental wage allowance in the

12 amount specified in paragraph (2) if—

13 (A) such individual is age 55 or older,

14 (B) such individual accepts full-time em15 ployment at a weekly wage that is less than

16 such individual’s preceding wage,

17 (C) such individual received basic reem18 ployment services provided under subsection (a)

19 and was unable to obtain employment with a

20 higher wage than the employment obtained pur21 suant to subparagraph (B), and

22 (D) such individual and a career center

23 counselor agree that participation in the supple24 mental wage allowance is the most effective ad25 justment option available to such individual.
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1 (2) AMOUNT OF ALLOWANCE.—The supple2 mental wage allowance payable to an eligible individ3 ual under this section with respect to any week in

4 which services are performed in such a reemploy5 ment job shall be an amount that—

6 (A) is equal to three quarters of the dif7 ference between—

8 (i) the weekly wage received for such

9 week and

10 (ii) an amount equal to 80 percent of

11 the individual’s average weekly wage in the

12 preceding employment; but

13 (B) does not exceed 50 percent of the

14 weekly benefit amount of regular compensation

15 under the State unemployment compensation

16 law payable to such individual for a week of

17 total unemployment.

18 (3) DURATION OF ALLOWANCES.—An eligible

19 individual may receive the supplemental wage allow20 ance authorized under this section for a period of up

21 to 52 weeks.

22 (4) ADMINISTRATION.—The substate grantee

23 shall enter into an agreement with the State agency

24 charged with the administration of the State unem25 ployment compensation law under which such agency
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1 will administer, on a cost-reimbursable basis, the

2 supplemental wage allowances authorized under this

3 subsection.

4 SEC. 120. CERTIFICATES OF CONTINUING ELIGIBILITY.

5 (a) IN GENERAL.—A career center may issue a cer6 tificate of continuing eligibility for services under this title

7 if such career center determines that—

8 (1) such individual is eligible for services under

9 section 103; and

10 (2) such individual is accepting employment

11 and such employment is—

12 (A) at a wage significantly less than such

13 individual’s previous wage; or

14 (B) in an occupation significantly different

15 from such individual’s previous occupation.

16 (b) CONTENTS.—A certificate of continuing eligibility

17 issued pursuant to subsection (a) shall specify a period

18 of time not to exceed 104 weeks that such individual shall

19 remain eligible, notwithstanding the requirements of sec20 tion 103, for services under this title and for retraining

21 income support payments under section 119(e) and part

22 A of title II of this Act.

23 (c) ELIGIBILITY FOR RETRAINING INCOME SUP24 PORT.—With respect to the continuing eligibility of an in-
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1 dividual receiving a certificate under this section for re2 training income support—

3 (1) the requirements relating to eligibility for

4 unemployment compensation under sections

5 119(e)(2)(C) and 202(a)(3) and to the weekly

6 amount of such support under section 119(e)(4) and

7 part A of title II shall apply to such individual’s sta8 tus at the time such individual receives a certificate

9 under this section and shall not apply to such indi10 vidual’s status at the time of separation from subse11 quent employment described in subsection (a)(2);

12 and

13 (2) the requirements relating to enrollment in

14 training in order to qualify for such income support

15 shall remain applicable except that the 16-week and

16 14-week periods described in section 119(e)(2) and

17 section 202(a)(4) shall commence with such individ18 ual’s separation from the subsequent employment

19 described in subsection (a)(2).

20 (d) LIMITATION.—An individual may not receive a

21 wage supplement authorized under section 119(g) after re22 ceiving a certificate of continuing eligibility under this

23 section.
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1 PART B—FEDERAL SERVICE DELIVERY SYSTEM

2 SEC. 131. NATIONAL DISCRETIONARY GRANT PROGRAM.

3 (a) ESTABLISHMENT.—The Secretary shall establish

4 a program of national grants to address large scale eco5 nomic dislocations that result from plant closures, base

6 closures, or mass layoffs.

7 (b) PROJECTS AND SERVICES.—

8 (1) IN GENERAL.—The programs assisted

9 under this section shall be used to provide services

10 of the type described in section 119 in projects that

11 relate to—

12 (A) industry-wide dislocations;

13 (B) multistate dislocations;

14 (C) dislocations resulting from reductions

15 in defense expenditures;

16 (D) dislocations resulting from inter17 national trade;

18 (E) dislocations resulting from environ19 mental laws and regulations, including the

20 Clean Air Act and the Endangered Species Act;

21 (F) dislocations affecting Native American

22 tribal entities; and

23 (G) other dislocations that result from spe24 cial circumstances or that State and local re25 sources are insufficient to address.
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1 (2) COMMUNITY PROJECTS.—The Secretary

2 may award grants under this section for projects

3 that provide comprehensive planning services to as4 sist communities in addressing and reducing the im5 pact of an economic dislocation.

6 (3) ON-SITE TRANSITION CENTERS.—The Sec7 retary may award grants under this section to

8 projects that establish on-site transition centers

9 meeting the requirements described in section

10 115(c)(2).

11 (c) ADMINISTRATION.—

12 (1) APPLICATION.—To receive a grant under

13 this section, an eligible entity shall submit an appli14 cation to the Secretary at such time, in such man15 ner, and accompanied by such information as the

16 Secretary determines is appropriate.

17 (2) ELIGIBLE ENTITIES.—Grants under this

18 section may be awarded to—

19 (A) the State;

20 (B) the substate grantee;

21 (C) employers and employer associations;

22 (D) worker-management transition assist23 ance committees and other employer-employee

24 entities;

25 (E) representatives of employees;
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1 (F) community development corporations

2 and community-based organizations; and

3 (G) industry consortia.

4 SEC. 132. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

5 (a) GENERAL AUTHORITY.—

6 (1) QUALIFICATION FOR FUNDS.—Funds ap7 propriated to carry out this section shall be made

8 available in a timely manner by the Secretary to the

9 Governor of any State within which is located an

10 area that has suffered an emergency or a major dis11 aster as defined in paragraphs (1) and (2), respec12 tively, of section 102 of the Robert T. Stafford Dis13 aster Relief and Emergency Assistance Act (referred

14 to in this section as the ‘‘disaster area’’).

15 (2) SUBSTATE ALLOCATION.—Not less than 80

16 percent of the funds made available to any Governor

17 under paragraph (1) shall be allocated by the Gov18 ernor to units of general local government located,

19 in whole or in part, within such disaster areas. The

20 remainder of such funds may be reserved by the

21 Governor for use, in concert with State agencies, in

22 cleanup, rescue, repair, renovation, and rebuilding

23 activities associated with such major disaster.

24 (3) COORDINATION.—Funds made available

25 under this section to governors and units of general
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1 local government shall be expended in consultation

2 with—

3 (A) agencies administering programs for

4 disaster relief provided under the Robert T.

5 Stafford Disaster Relief and Emergency Assist6 ance Act; and

7 (B) the administrative entity and the pri8 vate industry council in each service delivery

9 area within which disaster employment pro10 grams will be conducted under this part.

11 (b) USE OF FUNDS.—

12 (1) PROJECTS RESTRICTED TO DISASTER

13 AREAS.— Funds made available under this section

14 to any unit of general local government in a disaster

15 area—

16 (A) shall be used exclusively to provide em17 ployment on projects to provide food, clothing,

18 shelter, and other humanitarian assistance for

19 disaster victims and on projects regarding dem20 olition, cleanup, repair, renovation, and recon21 struction of damaged and destroyed structures,

22 facilities, and lands located within the disaster

23 area; and
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1 (B) may be expended through public and

2 private agencies and organizations engaged in

3 such projects.

4 (2) ELIGIBILITY REQUIREMENTS.—Notwith5 standing section 103, an individual shall be eligible

6 to be offered disaster employment under this section

7 if such individual is temporarily or permanently laid

8 off as a consequence of the disaster.

9 (3) LIMITATIONS ON DISASTER RELIEF EM10 PLOYMENT.—No individual shall be employed under

11 this part for more than 6 months for work related

12 to recovery from a single natural disaster.

13 (c) DEFINITIONS.—As used in this section, the term

14 ‘‘unit of general local government’’ includes—

15 (1) in the case of a community conducting a

16 project in an Indian reservation or Alaska Native

17 village, the grantee designated under subsection (c)

18 or (d) or of section 401 of the Job Training Part19 nership Act, or a consortium of such grantees and

20 the State; and

21 (2) in the case of a community conducting a

22 project in a migrant or seasonal farmworker commu23 nity, the grantee designated under section 402(c) of

24 the Job Training Partnership Act, or a consortium

25 of such grantees and the State.
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1 SEC. 133. EVALUATION, RESEARCH, AND DEMONSTRATIONS

2 (a) EVALUATION.—

3 (1) IN GENERAL.—The Secretary shall provide

4 for the continuing evaluation of programs conducted

5 under this title, including the cost-effectiveness of

6 programs in achieving the purposes of this title.

7 (2) TECHNIQUES.—

8 (A) METHODS.—Evaluations conducted

9 under paragraph (1) shall utilize recognized

10 statistical methods and techniques of the behav11 ioral and social sciences, including methodolo12 gies that control for self-selection, where fea13 sible.

14 (B) ANALYSIS.—Such evaluations may in15 clude cost benefit analyses of programs, and

16 analyses of the impact of the programs on par17 ticipants and the community, the extent to

18 which programs meet the needs of various de19 mographic groups, and the effectiveness of the

20 delivery systems used by the various programs.

21 (C) EFFECTIVENESS.—The Secretary shall

22 evaluate the effectiveness of programs author23 ized under this title with respect to—

24 (i) the statutory goals;

25 (ii) the performance standards estab26 lished by the Secretary; and
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1 (iii) the extent to which such pro2 grams enhance the employment and earn3 ings of participants, reduce income support

4 costs, improve the employment com5 petencies of participants in comparison to

6 comparable persons who did not partici7 pate in such programs, and, to the extent

8 feasible, increase the level of total employ9 ment over the level that would have existed

10 in the absence of such programs.

11 (b) RESEARCH.—

12 (1) IN GENERAL.—The Secretary shall establish

13 a program of research relating to addressing eco14 nomic dislocation, facilitating the transition of per15 manently laid off workers to reemployment, and up16 grading the skills of employed workers.

17 (2) MASS LAYOFF REPORT.—The Secretary

18 shall develop and maintain statistical data relating

19 to permanent layoffs and plant closings. The Sec20 retary shall publish a report based upon such data,

21 as soon as practicable, after the end of each cal22 endar year. Among the data to be included are—

23 (A) the number of such closings;

24 (B) the number of workers displaced;
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1 (C) the location of the affected facilities;

2 and

3 (D) the types of industries involved.

4 (c) DEMONSTRATIONS.—

5 (1) IN GENERAL.—The Secretary shall conduct

6 a program of demonstration projects to develop and

7 improve the methods for addressing economic dis8 location and promoting worker adjustment. Such

9 program may include projects that—

10 (A) provide services to upgrade the skills

11 of employed workers who are at risk of being

12 permanently laid off; and

13 (B) assist in retraining employed workers

14 in new technologies and work processes that

15 will facilitate the conversion or restructuring of

16 businesses into high performance work organi17 zations and avert plant closings or substantial

18 layoffs.

19 (2) LIMITATION.—Each demonstration project

20 conducted under this subsection shall not exceed

21 three years in duration.

22 (3) EVALUATION COMPONENT.—The Secretary

23 shall conduct or provide for an evaluation of each of

24 the projects carried out pursuant to this subsection.
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1 SEC. 134. CAPACITY BUILDING AND TECHNICAL ASSIST2 ANCE.

3 (a) IN GENERAL.—The Secretary shall provide,

4 through grants, contracts, or other arrangements, staff

5 training and technical assistance to States, substate

6 grantees, career centers, communities, business and labor

7 organizations, service providers, industry consortia, and

8 other entities, to enhance their capacity to develop and

9 deliver effective adjustment assistance services to workers

10 and to avert plant closings or substantial layoffs. Such as11 sistance may include the development of management in12 formation systems, customized training programs, and the

13 dissemination of computer-accessed learning systems.

14 (b) COORDINATION.—The Secretary shall integrate

15 the activities carried out pursuant to subsection (a) with

16 the activities of the Capacity Building and Information

17 and Dissemination Network established under section 453

18 of the Job Training Partnership Act.

19 SEC. 135. FEDERAL BY-PASS AUTHORITY.

20 In the event that any State chooses not to participate

21 in the program authorized under this title, the Secretary

22 shall use the amount that would be allotted to such State

23 under section 101(b) to provide for the delivery in that

24 State of the programs, activities and services authorized

25 under this title until such time as such State chooses to

26 participate in the program.
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1 PART C—PERFORMANCE STANDARDS AND

2 QUALITY ASSURANCE SYSTEMS

3 SEC. 151. CUSTOMER SERVICE COMPACT.

4 The Secretary shall establish a process within each

5 State, which shall include an annual meeting, to promote

6 the development of a customer service compact among the

7 parties administering the programs under this title. Such

8 compact shall include an informal agreement between the

9 Secretary, Governor, each substate grantee, and each ca10 reer center relating to—

11 (1) the shared goals and values that will govern

12 the administration of the program;

13 (2) the respective roles and responsibilities of

14 each party in enhancing the provision of services to

15 participants, including ensuring that such services

16 are tailored to the particular needs of participants in

17 each local area;

18 (3) methods for ensuring that the satisfaction

19 of participants with the services received is a pri20 mary consideration in the administration of the pro21 gram; and

22 (4) such other matters as the parties determine

23 are appropriate.

24 SEC. 152. PERFORMANCE STANDARDS.

25 (a) IN GENERAL.—The Secretary, after consultation

26 with the Secretary of Education, Governors, substate
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1 grantees, and career centers, shall prescribe performance

2 standards relating separately to the substate grantees and

3 the career centers established under this title. Such stand4 ards shall be based on factors the Secretary determines

5 are appropriate, which may include:

6 (1) placement, retention and earnings of par7 ticipants in unsubsidized employment, including—

8 (A) earnings at six months or more after

9 termination from the program, and

10 (B) comparability of wages at a specified

11 period after termination from the program with

12 wages prior to participation in the program;

13 (2) acquisition of skills pursuant to a skill

14 standards and skill certification system endorsed by

15 the National Skill Standards Board established

16 under the Goals 2000: Educate America Act;

17 (3) satisfaction of participants and employers

18 with services provided and employment outcomes;

19 and

20 (4) the quality of services provided to hard-to21 serve populations, such as low income individuals

22 and older workers.

23 (b) ADJUSTMENTS.—Each Governor shall, within pa24 rameters established by the Secretary and after consulta25 tion with substate grantees and career centers, prescribe
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1 adjustments to the performance standards prescribed

2 under section (a) for the substate grantees and career cen3 ters established in the State based on—

4 (1) specific economic, geographic and demo5 graphic factors in the State and in substate areas

6 within the State; and

7 (2) the characteristics of the population to be

8 served, including the demonstrated difficulties in

9 serving special populations.

10 (c) FAILURE TO MEET STANDARDS.—

11 (1) UNIFORM CRITERIA.—The Secretary shall

12 establish uniform criteria for determining whether a

13 substate grantee or career center fails to meet per14 formance standards under this section. Such criteria

15 may not be modified more than once every two

16 years.

17 (2) TECHNICAL ASSISTANCE.—The Governor

18 shall provide technical assistance to substate grant19 ees and career centers failing to meet performance

20 standards under the uniform criteria established

21 under paragraph (1).

22 (3) REPORT ON PERFORMANCE.—Each Gov23 ernor shall include in an annual report to the Sec24 retary the final performance standards and perform25 ance for each substate grantee and career center
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1 within the State, along with the technical assistance

2 planned and provided as required under paragraph

3 (2).

4 (4) REDESIGNATION.—If a substate grantee or

5 career center continues to fail to meet such perform6 ance standards for two consecutive program years,

7 the Governor shall notify the Secretary and the sub8 state grantee or career center of the continued fail9 ure, and shall—

10 (A) in the case of a substate grantee, ter11 minate the grant agreement and designate an12 other entity as the substate grantee consistent

13 with the procedures described in section

14 117(b)(2); and

15 (B) in the case of a career center, direct

16 the substate grantee to terminate the agree17 ment to operate such center and to select an18 other entity as a career center in accordance

19 with the requirements of section 118.

20 (5) APPEAL.—A substate grantee or career cen21 ter that is the subject of a redesignation under para22 graph (4) may, within thirty days after receiving no23 tice thereof, appeal to the Secretary of Labor to re24 scind such action. The Secretary of Labor shall issue
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1 a decision on the appeal within thirty days of its

2 receipt.

3 (d) INCENTIVE GRANTS.—From the funds reserved

4 pursuant to section 101(c)(1), the Governor of each State

5 shall award incentive grants to the substate grantees and

6 career centers in the State exceeding performance stand7 ards established under this section. Such grants shall be

8 used by the substate grantees and career centers to en9 hance or expand the services provided under this title.

10 SEC. 153. CUSTOMER FEEDBACK.

11 (a) METHODS.—Each substate grantee shall estab12 lish methods for obtaining, on a regular basis, information

13 from eligible individuals and employers who have received

14 services through a career center regarding the effective15 ness and quality of such services and of service providers.

16 Such methods may include the use of surveys, interviews,

17 and focus groups.

18 (b) ANALYSIS AND DISSEMINATION.—Each substate

19 grantee shall analyze the information obtained pursuant

20 to subsection (a) on a regular basis and provide a sum21 mary of such information accompanied by such analysis

22 to the career center for use in improving the administra23 tion of the programs under this title and assisting partici24 pants in choosing from among eligible service providers.
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1 SEC. 154. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF

2 EDUCATION AND TRAINING SERVICES.

3 (a) ELIGIBILITY REQUIREMENTS.—A provider of

4 education and training services shall be eligible to receive

5 funds under this title if such provider—

6 (1) is either—

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

8 Higher Education Act of 1965, or

9 (B) determined to be eligible under the

10 procedures described in subsection (b); and

11 (2) provides the performance-based information

12 required pursuant to subsection (c).

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

14 The Governor shall establish an alternative eligibility pro15 cedure for providers of education and training services in

16 such State desiring to receive funds under this title but

17 that are not eligible to participate in title IV of the Higher

18 Education Act of 1965. Such procedure shall establish

19 minimum acceptable levels of performance for such provid20 ers based on factors and guidelines developed by the Sec21 retary, after consultation with the Secretary of Education.

22 Such factors shall be comparable in rigor and scope to

23 those provisions of part H of such title of such Act that

24 are used to determine an institution of higher education’s

25 eligibility to participate in programs under such title as

26 are appropriate to the type of provider seeking eligibility
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1 under this subsection and the nature of the education and

2 training services to be provided.

3 (2) Notwithstanding paragraph (1), if the participa4 tion of an institution of higher education in any of the

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

6 institution shall not be eligible to receive funds under this

7 Act for a period of two years.

8 (c) PERFORMANCE-BASED INFORMATION.—

9 (1) CONTENTS.—The Secretary, in consultation

10 with the Secretary of Education, shall identify per11 formance-based information that is to be submitted

12 by providers of services desiring to be eligible under

13 this section. Such information may include informa14 tion relating to—

15 (A) the percentage of students completing

16 the programs conducted by the provider,

17 (B) the rates of licensure of graduates of

18 the programs conducted by the provider,

19 (C) the percentage of graduates of the pro20 grams meeting skill standards and certification

21 requirements endorsed by the National Skill

22 Standards Board established under the Goals

23 2000: Educate America Act,
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1 (D) the rates of placement and retention in

2 employment, and earnings of the graduates of

3 the programs conducted by the provider,

4 (E) the percentage of students who ob5 tained employment in an occupation related to

6 the program conducted by the provider, and

7 (F) the warranties or guarantees provided

8 by such provider relating to the skill levels or

9 employment to be attained by students.

10 (2) ADDITIONS.—The Governor may, pursuant

11 to the approval of the Secretary, prescribe additional

12 performance based information that shall be submit13 ted by providers pursuant to this subsection.

14 (d) ADMINISTRATION.—

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

18 pursuant to paragraph (1).

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

20 training services that desires to be eligible to receive

21 funds under this title shall submit the information

22 required under subsection (b) to the State agency

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

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

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

4 submitted, and disseminate such list and informa5 tion to the substate entities and career centers with6 in the State.

7 (4) ACCURACY OF INFORMATION.—

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

10 is inaccurate, such provider shall be disqualified

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

13 demonstrate to the satisfaction of the Governor

14 or his or her designee, that the information was

15 provided in good faith.

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

18 a determination by a State agency that results

19 in a disqualification under subparagraph (A).

20 Such procedure shall provide an opportunity for

21 a hearing and prescribe appropriate time limits

22 to ensure prompt resolution of the appeal.

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

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

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

4 State administrative records, such as unemployment

5 compensation wage records, and other appropriate

6 coordination activities.

7 (6) CONSULTATION.—The Secretary shall con8 sult with the Secretary of Education regarding the

9 eligibility of institutions of higher education or other

10 providers of education and training to participate in

11 programs under this Act or under title IV of the

12 Higher Education Act of 1965.

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

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

15 training shall not be subject to the requirements of

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

17 (2) COLLECTION AND DISSEMINATION OF IN18 FORMATION.—The substate grantee shall collect

19 such performance-based information from on-the-job

20 training providers as the Secretary may require, and

21 shall disseminate such information to the career cen22 ters.
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1 PART D—GENERAL REQUIREMENTS

2 SEC. 161. GENERAL REQUIREMENTS.

3 Except as otherwise provided, the following condi4 tions are applicable to all programs under this title:

5 (a) PROHIBITION ON INDUCING RELOCATION OF

6 ESTABLISHMENTS.—

7 (1) No funds provided under this title shall

8 be used or proposed for use to encourage or in9 duce the relocation, of an establishment or part

10 thereof, that results in a loss of employment for

11 any employee of such establishment at the

12 original location.

13 (2) No funds provided under this title shall

14 be used for customized or skill training, on-the15 job training, or company specific assessments of

16 job applicants or employees, for any establish17 ment or part thereof, that has relocated, until

18 120 days after the date on which such estab19 lishment commences operations at the new loca20 tion, if the relocation of such establishment or

21 part thereof, results in a loss of employment for

22 any employee of such establishment at the

23 original location.

24 (3) If a violation of paragraph (1) or (2)

25 is alleged, the Secretary shall conduct an inves-
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1 tigation to determine whether a violation has

2 occurred.

3 (4) If the Secretary determines that a vio4 lation of paragraph (1) or (2) has occurred, the

5 Secretary shall require the State, substate area,

6 or substate grantee that has violated paragraph

7 (1) or (2) to—

8 (A) repay to the United States an

9 amount equal to the amount expended in

10 violation of paragraph (1) or (2), in ac11 cordance with subsections (d) or (e) of sec12 tion 174; and

13 (B) pay an additional amount equal to

14 the amount required to be repaid under

15 subparagraph (A), unless the State or sub16 state grantee demonstrates to the Sec17 retary that it neither knew nor reasonably

18 could have known (after an inquiry under19 taken with due diligence) provided funds in

20 violation of paragraph (1) or (2).

21 (5) Amounts received under paragraph

22 (4)(B) shall be deposited in a special account in

23 the Treasury for use by the Secretary for carry24 ing out this title.
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1 (b) SPECIAL PROGRAMS.—Efforts shall be made

2 to develop programs under this title which contrib3 ute to occupational development, upward mobility,

4 development of new careers, and overcoming sex5 stereotyping in occupations traditional for the other

6 sex.

7 (c) JOINT SUBSTATE AGREEMENTS.—Any sub8 state grantee may enter into an agreement or con9 tract with another substate grantee to pay or share

10 the cost of educating, training, or placing individuals

11 participating in programs assisted under this Act,

12 including the provision of supportive services.

13 (d) ON-THE-JOB TRAINING.—(1) Payments to

14 employers for on-the-job training under this title

15 shall not, during the period of such training, average

16 more than 50 percent of the wages paid by the em17 ployer to such participants, and payments in such

18 amount shall be deemed to be in compensation for

19 the extraordinary costs associated with training par20 ticipants under this title and in compensation for the

21 costs associated with the lower productivity of such

22 participants.

23 (2) On-the-job training authorized under this

24 title for a participant shall be limited in duration to

25 a period not in excess of that generally required for
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1 acquisition of skills needed for the position within a

2 particular occupation, but in no event shall exceed 6

3 months, unless the total number of hours of such

4 training is less than 500 hours. In determining the

5 period generally required for acquisition of the skills,

6 consideration shall be given to recognized reference

7 material (such as the Dictionary of Occupational

8 Titles), the content of the training of the partici9 pant, the prior work experience of the participant,

10 and the reemployment plan of the participant.

11 (3)(A) Each on-the-job training contract

12 shall—

13 (i) specify the types and duration of on14 the-job training and the other services to be

15 provided in sufficient detail to allow for a fair

16 analysis of the reasonableness of proposed

17 costs; and

18 (ii) comply with the applicable require19 ments of section 174.

20 (B) Each on-the-job training contract that is

21 not directly contracted by a substate grantee with an

22 employer (but instead is contracted through an

23 intermediary brokering contractor) shall, in addition

24 to meeting the requirements of subparagraph (A),

25 specify the outreach, recruitment, participant train-
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1 ing, counseling, placement, monitoring, followup,

2 and other services to be provided directly by the

3 brokering contractor within its own organization, the

4 services to be provided by the employers conducting

5 the on-the-job training, and the services to be pro6 vided, with or without cost, by other agencies and

7 subcontractors.

8 (C) If a brokering contractor enters into a con9 tract with a subcontractor to provide training or

10 other services, the brokering contractor shall ensure,

11 through on-site monitoring, compliance with the sub12 contract terms prior to making payment to the sub13 contractor.

14 (4) In accordance with regulations issued by the

15 Secretary, on-the-job training contracts under this

16 title shall not be entered into with employers who

17 have received payments under previous contracts

18 and have exhibited a pattern of failing to provide on19 the-job training participants with continued long20 term employment as regular employees with wages

21 and employment benefits (including health benefits)

22 and working conditions at the same level and to the

23 same extent as other employees working a similar

24 length of time and doing the same type of work.
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1 (e) PROHIBITION ON FEES.—No person or or2 ganization may charge an individual a fee for the

3 placement or referral of such individual in or to a

4 training program under this title.

5 (f) PROHIBITION ON SUBSIDIZED EMPLOY6 MENT.—No funds may be provided under this Act

7 for any subsidized employment with any private for8 profit employer.

9 (g) RETENTION OF PROGRAM INCOME.—

10 (1) Income under any program under this

11 title administered by a public or private non12 profit entity may be retained by such entity

13 only if used to continue to carry out the pro14 gram.

15 (2) Income subject to the requirements of

16 paragraph (1) shall include—

17 (A) receipts from goods or services

18 (including conferences) provided as a result

19 of activities funded under the title;

20 (B) funds provided to a service pro21 vider under the title that are in excess of

22 the costs associated with the services pro23 vided; and

24 (C) interest income earned on funds

25 received under this title.
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1 (3) For the purposes of this subsection,

2 each entity receiving financial assistance under

3 this title shall maintain records sufficient to de4 termine the amount of income received and the

5 purposes for which such income is expended.

6 (h) NOTIFICATION AND CONSULTATION RE7 QUIREMENTS.—The Secretary shall notify the Gov8 ernor and the appropriate chief elected officials of,

9 and consult with the Governor and such officials

10 concerning, any activity to be funded by the Sec11 retary under this title within the State or substate

12 area; and the Governor shall notify the appropriate

13 chief elected officials of, and consult with such con14 cerning, any activity to be funded by the Governor

15 under this title within the substate area.

16 (i) COOPERATIVE AGREEMENTS BETWEEN

17 STATES.—In the event that compliance with provi18 sions of this title would be enhanced by cooperative

19 agreements between States, the consent of Congress

20 is hereby given to such States to enter into such

21 compacts and agreements to facilitate such compli22 ance, subject to the approval of the Secretary.

23 (j) PUBLIC SERVICE EMPLOYMENT PROHIBI24 TION.—Except as provided in section 132, no funds
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1 available under this title may be used for public

2 service employment.

3 (k) PROHIBITION ON EMPLOYMENT GENERAT4 ING AND RELATED ACTIVITIES.—Except for funds

5 available to the Secretary to carry out section 132,

6 no funds available under this Act shall be used for

7 employment generating activities, economic develop8 ment activities, investment in revolving loan funds,

9 capitalization of businesses, investment in contract

10 bidding resource centers, and similar activities, or

11 for foreign travel.

12 (l) PROPERTY.—The Federal requirements gov13 erning the title, use, and disposition of real property,

14 equipment, and supplies purchased with funds pro15 vided under this Act shall be the Federal require16 ments generally applicable to Federal grants to

17 States and local governments.

18 SEC. 162. BENEFITS.

19 (a) IN GENERAL.—Except as otherwise provided in

20 this title, the following provisions shall apply to all activi21 ties financed under this title:

22 (1) A participant under this title shall receive

23 no payments for training activities in which the par24 ticipant fails to participate without good cause.
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1 (2) Individuals in on-the-job training shall be

2 compensated by the employer at the same rates, in3 cluding periodic increases, as similarly situated em4 ployees or trainees and in accordance with applicable

5 law, but in no event less than the higher of the rate

6 specified in section 6(a)(1) of the Fair Labor Stand7 ards Act of 1938 or the applicable State or local

8 minimum wage law.

9 (3) Individuals employed in activities authorized

10 under this title shall be paid wages which shall not

11 be less than the highest of (A) the minimum wage

12 under section 6(a)(1) of the Fair Labor Standards

13 Act of 1938, (B) the minimum wage under the ap14 plicable State or local minimum wage law, or (C) the

15 prevailing rates of pay for individuals employed in

16 similar occupations by the same employer.

17 (4) References in paragraphs (2) and (3) to

18 section 6(a)(1) of the Fair Labor Standards Act of

19 1938 (29 U.S.C. 206 (a)(1))—

20 (A) shall be deemed to be references to

21 section 6(c) of that Act for individuals in the

22 Commonwealth of Puerto Rico;

23 (B) shall be deemed to be references to

24 6(a)(3) of that Act for individuals in American

25 Samoa; and
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1 (C) shall not be applicable for individuals

2 in other territorial jurisdictions in which section

3 6 of the Fair Labor Standards Act of 1938

4 does not apply.

5 (b) INCOME DISREGARD.—Allowances, earnings and

6 payments to individuals participating in programs under

7 this title, except for payments under section 119(e), shall

8 not be considered as income for the purposes of determin9 ing eligibility for and the amount of income transfer and

10 in-kind aid furnished under any Federal or federally as11 sisted program based on need, other than as provided

12 under the Social Security Act.

13 SEC. 163. LABOR STANDARDS.

14 (a) IN GENERAL.—

15 (1) Conditions of employment and training shall

16 be appropriate and reasonable in light of such fac17 tors as the type of work, geographical region, and

18 proficiency of the participant.

19 (2) Health and safety standards established

20 under State and Federal law, otherwise applicable to

21 working conditions of employees, shall be equally ap22 plicable to working conditions of participants. With

23 respect to any participant in a program conducted

24 under this title who is engaged in activities which

25 are not covered by health and safety standards
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1 under the Occupational Safety and Health Act of

2 1970, the Secretary shall prescribe, by regulation,

3 such standards as may be necessary to protect the

4 health and safety of such participants.

5 (3) To the extent that a State workers’ com6 pensation law is applicable, workers’ compensation

7 benefits in accordance with such law shall be avail8 able with respect to injuries suffered by participants.

9 To the extent that such law is not applicable, each

10 recipient of funds under this Act shall secure insur11 ance coverage for injuries suffered by such partici12 pants, in accordance with regulations prescribed by

13 the Secretary.

14 (4) All individuals employed in subsidized jobs

15 shall be provided benefits and working conditions at

16 the same level and to the same extent as other em17 ployees working a similar length of time and doing

18 the same type of work.

19 (5) No funds available under this title may be

20 used for contributions on behalf of any participant

21 to retirement systems or plans.

22 (b) DISPLACEMENT.—

23 (1) No currently employed worker shall be dis24 placed by any participant (including partial displace-
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1 ment such as a reduction in the hours of non2 overtime work, wages, or employment benefits).

3 (2) No program under this title shall impair—

4 (A) existing contracts for services; or

5 (B) existing collective bargaining agree6 ments, unless the employer and the labor orga7 nization concur in writing with respect to any

8 elements of the proposed activities which affect

9 such agreement, or either such party fails to re10 spond to written notification requesting its con11 currence within 30 days of receipt thereof.

12 (3) No participant shall be employed or job

13 opening filled (A) when any other individual is on

14 layoff from the same or any substantially equivalent

15 job, or (B) when the employer has terminated the

16 employment of any regular employee or otherwise re17 duced its workforce with the intention of filling the

18 vacancy so created by hiring a participant whose

19 wages are subsidized under this title.

20 (4) No jobs shall be created in a promotional

21 line that will infringe in any way upon the pro22 motional opportunities of currently employed individ23 uals.

24 (c) ORGANIZED LABOR.—
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1 (1) Each recipient of funds under this title shall

2 provide to the Secretary assurances that none of

3 such funds will be used to assist, promote, or deter

4 union organizing.

5 (2) Any program conducted with funds made

6 available under this title which will provide services

7 to members of a labor organization will be estab8 lished only after full consultation with such organi9 zation.

10 (3) Where a labor organization represents a

11 substantial number of employees who are engaged in

12 similar work or training in the same area as that

13 proposed to be funded under this title, an oppor14 tunity shall be provided for such organization to

15 submit comments with respect to such proposal.

16 (d) PREVAILING WAGES.—All laborers and mechan17 ics employed by contractors or subcontractors in any con18 struction, alteration, or repair, including painting and

19 decorating, of project, buildings, and works which are fed20 erally assisted under this title shall be paid wages at rates

21 not less than those prevailing on similar construction in

22 the locality as determined by the Secretary in accordance

23 with the Act of March 3, 1921 (40 U.S.C. 276a–276a–

24 5), commonly known as the Davis-Bacon Act. The Sec25 retary shall have, with respect to such labor standards,
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1 the authority and functions set forth in Reorganization

2 Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267)

3 and section 2 of the Act of June 1, 1934, as amended

4 (48 Stat. 948, as amended; 40 U.S.C. 276(c)). The provi5 sions of this subsection shall not apply to a bona fide par6 ticipant in a training program under this title. The provi7 sions of section 177(a)(4) shall apply to such trainees.

8 SEC. 164. GRIEVANCE PROCEDURE.

9 (a) IN GENERAL.—Each substate grantee, career

10 center, contractor, and grantee under this Act shall estab11 lish and maintain a grievance procedure for grievances or

12 complaints about its programs and activities from partici13 pants, subgrantees, subcontractors, and other interested

14 persons. Hearings on any grievance shall be conducted

15 within 30 days of filing of a grievance and decisions shall

16 be made not later than 60 days after the filing of a griev17 ance. Except for complaints alleging fraud or criminal ac18 tivity, complaints shall be made within one year of the al19 leged occurrence.

20 (b) GRIEVANCE PROCEDURE FOR EMPLOYERS OF

21 PARTICIPANTS.—Each recipient of financial assistance

22 under this title which is an employer of participants under

23 this title shall continue to operate or establish and main24 tain a grievance procedure relating to the terms and condi25 tions of employment.
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1 (c) EXHAUSTION OF GRIEVANCE PROCEDURE.—

2 Upon exhaustion of the recipient’s grievance procedure

3 without decision, or where the Secretary has reason to be4 lieve that the recipient is failing to comply with the re5 quirements of this title, the Secretary shall investigate the

6 allegation or belief and determine within 120 days after

7 receiving the complaint whether such allegation or com8 plaint is true.

9 (d) INVESTIGATION BY SECRETARY.—

10 (1) If a person alleges a violation of section 163

11 and such person exhausts the recipient’s grievance

12 procedure or the 60-day time period described in

13 subsection (a) has elapsed without a decision, either

14 party to such procedure may submit the grievance to

15 the Secretary. The Secretary shall investigate the al16 legations contained in the grievance and make a de17 termination as to whether a violation of section 163

18 has occurred.

19 (2) If the results of the investigation conducted

20 pursuant to paragraph (1) indicate that a modifica21 tion or reversal of the decision issued pursuant to

22 the recipient’s grievance procedure is warranted, or

23 the 60-day time period described in subsection (a)

24 has elapsed without a decision, the Secretary may

25 modify or reverse the decision, or issue a decision if
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1 no decision has been issued, as the case may be,

2 after an opportunity for a hearing in accordance

3 with the procedures under section 176.

4 (3) If the Secretary determines that the deci5 sion issued pursuant to the recipient’s grievance pro6 cedure is appropriate, the determination shall be7 come the final decision of the Secretary.

8 (e) BINDING GRIEVANCE PROCEDURE.—

9 (1) A person alleging a violation of section 163

10 may, as an alternative to the procedures described in

11 this section, submit the grievance involving such vio12 lation to a binding grievance procedure if a collective

13 bargaining agreement covering the parties to the

14 grievance so provides.

15 (2) The remedies available under paragraph (1)

16 shall be limited to the remedies available under sub17 section (f)(1)(C) and subsection (f)(2).

18 (f) REMEDIES AVAILABLE TO GRIEVANTS.—

19 (1) Except as provided in paragraph (2), rem20 edies available to grievants under this section for

21 violations of section 163 shall be limited to—

22 (A) suspension or termination of payments

23 under this Act;

24 (B) prohibition of placement of a partici25 pant, for an appropriate period of time, in a
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1 program under this Act with an employer that

2 has violated section 163, as determined under

3 subsection (d) or (e); and

4 (C) appropriate equitable relief (other than

5 back pay).

6 (2) In addition to the remedies available under

7 paragraph (1), remedies available under this section

8 for violations of subsection (a)(4), paragraphs (1)

9 and (3) of subsection (b), and subsection (d) of sec10 tion 163 may include—

11 (A) reinstatement of the grievant to the

12 position held by such grievant prior to displace13 ment;

14 (B) payment of lost wages and benefits;

15 and

16 (C) reestablishment of other relevant

17 terms, conditions, and privileges of employment.

18 (g) REMEDIES UNDER OTHER LAWS.—Nothing in

19 subsection (f) shall be construed to prohibit a grievant

20 from pursuing a remedy authorized under another Fed21 eral, State, or local law for a violation of section 163.

22 PART E—FISCAL ADMINISTRATIVE PROVISIONS

23 SEC. 171. PROGRAM YEAR.

24 (a) OBLIGATION OF FUNDS.—Beginning with fiscal

25 year 1995 and thereafter, appropriations for any fiscal
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1 year for programs and activities under this title shall be

2 available for obligation only on the basis of a program

3 year. The program year shall begin on July 1 in the fiscal

4 year for which the appropriation is made.

5 (b) EXPENDITURE OF OBLIGATED FUNDS.—Funds

6 obligated for any program year may be expended by each

7 recipient during that program year and the two succeeding

8 program years.

9 SEC. 172. PROMPT ALLOCATION OF FUNDS.

10 (a) PUBLICATION OF FORMULA ALLOCATIONS AND

11 ALLOTMENTS.—Whenever the Secretary allots and allo12 cates funds required to be allotted or allocated by formula

13 under this title, the Secretary shall publish in a timely

14 fashion in the Federal Register the proposed amount to

15 be distributed to each recipient.

16 (b) PUBLICATION OF DISCRETIONARY ALLOCATION

17 FORMULA.—Whenever the Secretary utilizes a formula to

18 allot or allocate funds made available for distribution at

19 the Secretary’s discretion under this Act, the Secretary

20 shall, not later than 30 days prior to such allotment or

21 allocation, publish such formula in the Federal Register

22 for comments along with the rationale for the formula and

23 the proposed amounts to be distributed to each State and

24 area. After consideration of any comments received, the
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1 Secretary shall publish final allotments and allocations in

2 the Federal Register.

3 SEC. 173. MONITORING.

4 (a) IN GENERAL.—The Secretary is authorized to

5 monitor all recipients of financial assistance under this

6 title to determine whether they are complying with the

7 provisions of this title and the regulations issued under

8 this title.

9 (b) INVESTIGATIONS.—The Secretary may inves10 tigate any matter the Secretary deems necessary to deter11 mine compliance with this title and regulations issued

12 under this title. The investigations authorized by this sub13 section may include examining records (including making

14 certified copies thereof), questioning employees, and enter15 ing any premises or onto any site in which any part of

16 a program of a recipient is conducted or in which any of

17 the records of the recipient are kept.

18 (c) WITNESSES AND DOCUMENTS.—For the purpose

19 of any investigation or hearing under this Act, the provi20 sions of section 9 of the Federal Trade Commission Act

21 (15 U.S.C. 49) (relating to the attendance of witnesses

22 and the production of books, papers, and documents) are

23 made applicable to the Secretary.

24 SEC. 174. FISCAL CONTROLS; SANCTIONS.

25 (a) IN GENERAL.—
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1 (1) Each State shall establish such fiscal con2 trol and fund accounting procedures as may be nec3 essary to assure the proper disbursal of, and ac4 counting for, Federal funds paid to the recipient

5 under this title. Such procedures shall ensure that

6 all financial transactions are conducted and records

7 maintained in accordance with generally accepted ac8 counting principles applicable in each State.

9 (2) The Secretary shall prescribe regulations es10 tablishing uniform cost principles substantially

11 equivalent to such principles generally applicable to

12 recipients of Federal grants funds. At a minimum,

13 such standards shall provide that, to be allowable,

14 costs must—

15 (A) be necessary and reasonable for proper

16 and efficient administration of the program

17 under this title;

18 (B) be allocable to the program under this

19 title; and

20 (C) not be a general expense required to

21 carry out the overall responsibilities of State or

22 local governments except as specifically pro23 vided by this title.

24 (3) The Governor, in accordance with minimum

25 requirements established by the Secretary in regula-
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1 tions, shall prescribe and implement procurement

2 standards to ensure fiscal accountability and prevent

3 fraud and abuse in programs administered under

4 this title. The Secretary, in establishing such mini5 mum requirements, shall consult with the Inspector

6 General of the Department of Labor and take into

7 consideration relevant aspects of the circulars issued

8 by the Director of the Office of Management and

9 Budget. Such minimum requirements shall include

10 provisions to ensure that for States, substate areas,

11 and career centers—

12 (A) procurements shall be conducted in a

13 manner providing full and open competition;

14 (B) the use of sole source procurements

15 shall be minimized to the extent practicable, but

16 in every case shall be justified;

17 (C) procurements shall include an appro18 priate analysis of the reasonableness of costs

19 and prices;

20 (D) procurements shall not provide excess

21 program income (for nonprofit and government

22 entities) or excess profit (for private for-profit

23 entities), and that appropriate factors shall be

24 utilized in determining whether such income or

25 profit is excessive, such as—
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1 (i) the complexity of the work to be

2 performed;

3 (ii) the risk borne by the contractor;

4 and

5 (iii) market conditions in the sur6 rounding geographical area;

7 (E) procurements shall clearly specify

8 deliverables and the basis for payment;

9 (F) written procedures shall be established

10 for procurement transactions;

11 (G) no grantee, contractor, subgrantee, or

12 subcontractor shall engage in any conflict of in13 terest, actual or apparent, in the selection,

14 award, or administration of a contract or grant

15 under this title;

16 (H) all grantees and subgrantees shall con17 duct oversight to ensure compliance with pro18 curement standards; and

19 (I) procurement transactions between units

20 of State or local governments, shall be con21 ducted on a cost reimbursable basis.

22 (4) The Governor shall annually conduct on-site

23 monitoring of each substate grantee within the State

24 to ensure compliance with the procurement stand25 ards established pursuant to paragraph (3).
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1 (5) If the Governor determines that a substate

2 grantee area is not in compliance with the procure3 ment standards established pursuant to paragraph

4 (3), the Governor shall —

5 (A) require corrective action to secure

6 prompt compliance; and

7 (B) impose the sanctions provided under

8 subsection (b) in the event of failure to take the

9 required corrective action.

10 (6) The Governor shall biennially certify to the

11 Secretary that —

12 (A) the State has implemented the pro13 curement standards established under para14 graph (3);

15 (B) the State has monitored substate

16 grantees to ensure compliance with the procure17 ment standards as required under paragraph

18 (4); and

19 (C) the State has taken appropriate action

20 to secure compliance pursuant to paragraph

21 (5).

22 (7) If the Secretary determines that the Gov23 ernor has not fulfilled the requirements of this sub24 section, the Secretary shall—
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1 (A) require corrective action to secure

2 prompt compliance; and

3 (B) impose the sanctions provided under

4 subsection (f) in the event of failure of the Gov5 ernor to take the required corrective action.

6 (b) SUBSTANTIAL VIOLATIONS.—

7 (1) If, as a result of financial and compliance

8 audits or otherwise, the Governor determines that

9 there is a substantial violation of a specific provision

10 of this title or the regulations under this title, and

11 corrective action has not been taken, the Governor

12 shall impose a reorganization plan, which may in13 clude—

14 (A) redesignating the substate grantee;

15 (B) prohibiting the use of designated serv16 ice providers;

17 (C) merging the substate area into 1 or

18 more other existing substate areas; or

19 (D) other such changes as the Secretary or

20 Governor determines necessary to secure com21 pliance.

22 (2)(A) The actions taken by the Governor pur23 suant to paragraph (1)(A) may be appealed to the

24 Secretary and shall not become effective until—

25 (i) the time for appeal has expired; or
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1 (ii) the Secretary has issued a decision.

2 (B) The actions taken by the Governor

3 pursuant to paragraph (1)(B) may be appealed

4 to the Secretary, who shall make a final deci5 sion not later than 60 days of the receipt of the

6 appeal.

7 (3) If the Governor fails to promptly take the

8 actions required under paragraph (1), the Secretary

9 shall take such actions.

10 (c) REPAYMENT OF FUNDS.—Every recipient shall

11 repay to the United States amounts found not to have

12 been expended in accordance with this title. The Secretary

13 may offset such amounts against any other amount to

14 which the recipient is or may be entitled under this Act

15 unless the Secretary determines that such recipient should

16 be held liable pursuant to subsection (d). No such action

17 shall be taken except after notice and opportunity for a

18 hearing have been given to the recipient.

19 (d) LIABILITY FOR REPAYMENT OF FUNDS.—

20 (1) Each recipient shall be liable to repay such

21 amounts, from funds other than funds received

22 under this title, upon a determination that the

23 misexpenditures of funds was due to willful dis24 regard of the requirements of this title, gross neg25 ligence, or failure to observe accepted standards of
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1 administration. No such finding shall be made ex2 cept after notice and opportunity for a fair hearing.

3 (2) In determining whether to impose any sanc4 tion authorized by this section against a recipient for

5 violations by a subgrantee of such recipient under

6 this title or the regulations under this title, the Sec7 retary shall first determine whether such recipient

8 has adequately demonstrated that it has—

9 (A) established and adhered to an appro10 priate system for the award and monitoring of

11 contracts with subgrantees which contains ac12 ceptable standards for ensuring accountability;

13 (B) entered into a written contract with

14 such subgrantee which established clear goals

15 and obligations in unambiguous terms;

16 (C) acted with due diligence to monitor the

17 implementation of the subgrantee contract, in18 cluding the carrying out of the appropriate

19 monitoring activities (including audits) at rea20 sonable intervals; and

21 (D) taken prompt and appropriate correc22 tive action upon becoming aware of any evi23 dence of a violation of this Act or the regula24 tions under this Act by such subgrantee.
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1 (3) If the Secretary determines that the recipi2 ent has demonstrated substantial compliance with

3 the requirements of paragraph (2), the Secretary

4 may waive the imposition of sanctions authorized by

5 this section upon such recipient. The Secretary is

6 authorized to impose any sanction consistent with

7 the provisions of this title and any applicable Fed8 eral or State law directly against any subgrantee for

9 violation of this Act or the regulations under this

10 Act.

11 (e) EMERGENCY TERMINATION OF FINANCIAL AS12 SISTANCE.—In emergency situations, if the Secretary de13 termines it is necessary to protect the integrity of the

14 funds or ensure the proper operation of the program, the

15 Secretary may immediately terminate or suspend financial

16 assistance, in whole or in part, if the recipient is given

17 prompt notice and the opportunity for a subsequent hear18 ing within 30 days after such termination or suspension.

19 The Secretary shall not delegate any of the functions spec20 ified in this subsection, other than to an officer whose ap21 pointment was required to be made by and with the advice

22 and consent of the Senate.

23 (f) CORRECTIVE MEASURES.—If the Secretary deter24 mines that any recipient under this title has discharged

25 or in any other manner discriminated against a partici-
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1 pant or against any individual in connection with the ad2 ministration of the program involved, or against any indi3 vidual because such individual has filed any complaint or

4 instituted or caused to be instituted any proceeding under

5 or related to this title, or has testified or is about to testify

6 in any such proceeding or investigation under or related

7 to this title, or otherwise unlawfully denied to any individ8 ual a benefit under the provisions of this title, or the Sec9 retary’s regulations, the Secretary shall, within thirty

10 days, take such action or order such corrective measures,

11 as necessary, with respect to the recipient or the aggrieved

12 individuals, or both.

13 (g) REMEDIES NOT EXCLUSIVE.—The remedies

14 under this section shall not be construed to be exclusive

15 remedies.

16 SEC. 175. REPORTS, RECORDKEEPING, AND INVESTIGA17 TIONS.

18 (a) RECORDS.—

19 (1) Recipients shall keep records that are suffi20 cient to permit the preparation of reports required

21 by this title and to permit the tracing of funds to

22 a level of expenditure adequate to insure that the

23 funds have not been spent unlawfully.

24 (2) Every recipient shall maintain such records

25 and submit such reports, in such form and contain-
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1 ing such information, as the Secretary requires re2 garding the performance of its programs. Such

3 records and reports shall be submitted to the Sec4 retary but shall not be required to be submitted

5 more than once each quarter unless specifically re6 quested by the Congress or a committee thereof.

7 (3) In order to allow for the preparation of na8 tional estimates necessary to meet the requirements

9 of subsection (c), recipients shall maintain standard10 ized records for all individual participants and pro11 vide to the Secretary a sufficient number of such

12 records to provide for an adequate analysis.

13 (4)(A) Except as provided in subparagraph (B),

14 records maintained by recipients pursuant to this

15 subsection shall be made available to the public upon

16 request.

17 (B) Subparagraph (A) shall not apply to—

18 (i) information, the disclosure of which

19 would constitute a clearly unwarranted invasion

20 of personal privacy; and

21 (ii) trade secrets, or commercial or finan22 cial information, obtained from a person and

23 privileged or confidential.
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1 (C) Recipients may charge fees sufficient to re2 cover costs applicable to the processing of requests

3 for records under subparagraph (A).

4 (b) INVESTIGATIONS.—

5 (1)(A) In order to evaluate compliance with the

6 provisions of this title, the Secretary shall conduct,

7 in several States, in each fiscal year investigations of

8 the use of funds received by recipients under this

9 title.

10 (B) In order to insure compliance with the pro11 visions of this title, the Comptroller General of the

12 United States may conduct investigations of the use

13 of funds received under this title by any recipient.

14 (2) In conducting any investigation under this

15 title, the Secretary or the Comptroller General of the

16 United States may not request the compilation of

17 any new information not readily available to such re18 cipient.

19 (3)(A) In carrying out any audit under this title

20 (other than any initial audit survey or any audit in21 vestigating possible criminal or fraudulent conduct),

22 either directly or through grant or contract, the Sec23 retary, the Inspector General, or the Comptroller

24 General shall furnish to the State, substate grantee,

25 recipient, or other entity to be audited, advance noti-
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1 fication of the overall objectives and purposes of the

2 audit, and any extensive recordkeeping or data re3 quirements to be met, not fewer than 14 days (or as

4 soon as practicable), prior to the commencement of

5 the audit.

6 (B) If the scope, objectives, or purposes of the

7 audit change substantially during the course of the

8 audit, the entity being audited shall be notified of

9 the change as soon as practicable.

10 (C) The reports on the results of such audits

11 shall cite the law, regulation, policy, or other criteria

12 applicable to any finding.

13 (D) Nothing contained in this title shall be con14 strued so as to be inconsistent with the Inspector

15 General Act of 1978 (5 U.S.C. App.) or government

16 auditing standards issued by the Comptroller Gen17 eral.

18 (c) RESPONSIBILITIES OF FUND RECIPIENTS.—Each

19 State, each substate grantee, each career center, and each

20 recipient (other than a subrecipient, grantee or contractor

21 of a recipient) receiving funds under this title shall—

22 (1) make readily accessible reports concerning

23 its operations and expenditures as shall be pre24 scribed by the Secretary;
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1 (2) prescribe and maintain comparable manage2 ment information systems, in accordance with guide3 lines that shall be prescribed by the Secretary, de4 signed to facilitate the uniform compilation, cross

5 tabulation, and analysis of programmatic, partici6 pant, and financial data, on statewide and substate

7 area bases, necessary for reporting, monitoring, and

8 evaluating purposes, including data necessary to

9 comply with section 177; and

10 (3) monitor the performance of service provid11 ers in complying with the terms of grants, contracts,

12 or other agreements made pursuant to this Act.

13 (d) RETENTION OF RECORDS.—The Governor shall

14 ensure that requirements are established for retention of

15 all records pertinent to all grants awarded, and contracts

16 and agreements entered into, under this title, including

17 financial, statistical, property and participant records and

18 supporting documentation. For funds allotted to a State

19 for any program year, records shall be retained for 2 years

20 following the date on which the annual expenditure report

21 containing the final expenditures charged to such program

22 year’s allotment is submitted to the Secretary. Records for

23 nonexpendable property shall be retained for a period of

24 3 years after final disposition of the property.
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1 (e) FINANCIAL RECORDS.—Each State, substate

2 grantee, and career center shall maintain records with re3 spect to programs under this title that identify—

4 (1) any program income or profits earned, in5 cluding such income or profits earned by

6 subrecipients; and

7 (2) any costs incurred (such as stand-in costs)

8 that are otherwise allowable except for funding limi9 tations.

10 SEC. 176. ADMINISTRATIVE ADJUDICATION.

11 (a) IN GENERAL.—Whenever any applicant for finan12 cial assistance under this title is dissatisfied because the

13 Secretary has made a determination not to award financial

14 assistance in whole or in part to such applicant, the appli15 cant may request a hearing before an administrative law

16 judge of the Department of Labor. A similar hearing may

17 also be requested by any recipient upon whom a corrective

18 action or a sanction has been imposed by the Secretary.

19 Except to the extent provided for in section 161(b), sub20 sections (d) and (e) of section 164, or section 177, all

21 other disputes arising under this title shall be adjudicated

22 under grievance procedures established by the recipient or

23 under applicable law other than this title.

24 (b) FINAL DECISIONS.—The decision of the adminis25 trative law judge shall constitute final action by the Sec-
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1 retary unless, within 20 days after receipt of the decision

2 of the administrative law judge, a party dissatisfied with

3 the decision or any part thereof has filed exceptions with

4 the Secretary specifically identifying the procedure, fact,

5 law, or policy to which exception is taken. Any exception

6 not specifically urged shall be deemed to have been waived.

7 Thereafter the decision of the administrative law judge

8 shall become the final decision of the Secretary unless the

9 Secretary, within 30 days of such filing, has notified the

10 parties that the case has been accepted for review.

11 (c) DEADLINE FOR REVIEW.—Any case accepted for

12 review by the Secretary shall be decided within one hun13 dred and eighty days of such acceptance. If not so decided,

14 the decision of the administrative law judge shall become

15 the final decision of the Secretary.

16 (d) APPLICABLE PROVISIONS.—The provisions of

17 section 178 shall apply to any final action of the Secretary

18 under this section.

19 SEC. 177. NONDISCRIMINATION.

20 (a) IN GENERAL.—

21 (1) For the purpose of applying the prohibitions

22 against discrimination on the basis of age under the

23 Age Discrimination Act of 1975, on the basis of dis24 ability under section 504 of the Rehabilitation Act,

25 on the basis of sex under title IX of the Education
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1 Amendments of 1972, or on the basis of race, color,

2 or national origin under title VI of the Civil Rights

3 Act of 1964, programs and activities funded or oth4 erwise financially assisted in whole or in part under

5 this title are considered to be programs and activi6 ties receiving Federal financial assistance.

7 (2) No individual shall be excluded from partici8 pation in, denied the benefits of, subjected to dis9 crimination under, or denied employment in the ad10 ministration of or in connection with any such pro11 gram because of race, color, religion, sex, national

12 origin, age, political affiliation or belief, or status as

13 a qualified individual with disabilities.

14 (3) Participants shall not be employed on the

15 construction, operation, or maintenance of so much

16 of any facility as is used or to be used for sectarian

17 instruction or as a place for religious worship.

18 (4) With respect to terms and conditions affect19 ing, or rights provided to, individuals who are par20 ticipants in activities supported by funds provided

21 under this title, such individuals shall not be dis22 criminated against solely because of their status as

23 such participants.

24 (5) Participation in programs and activities fi25 nancially assisted in whole or in part under this title
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1 shall be open to citizens and nationals of the United

2 States, lawfully admitted permanent resident aliens,

3 lawfully admitted refugees and parolees, and other

4 individuals authorized by the Attorney General to

5 work in the United States.

6 (b) FAILURE TO COMPLY.—Whenever the Secretary

7 finds that a State or other recipient has failed to comply

8 with a provision of law referred to in subsection (a)(1),

9 with paragraph (2), (3), (4), or (5) of subsection (a), or

10 with an applicable regulation prescribed to carry out such

11 paragraphs, the Secretary shall notify such State or recipi12 ent and shall request it to comply. If within a reasonable

13 period of time, not to exceed sixty days, the State or recip14 ient fails or refuses to comply, the Secretary may—

15 (1) refer the matter to the Attorney General

16 with a recommendation that an appropriate civil ac17 tion be instituted;

18 (2) exercise the powers and functions provided

19 by title VI of the Civil Rights Act of 1964, the Age

20 Discrimination Act of 1975, or section 504 of the

21 Rehabilitation Act, as may be applicable; or

22 (3) take such other action as may be provided

23 by law.

24 (c) REFERRAL TO ATTORNEY GENERAL.—When a

25 matter is referred to the Attorney General pursuant to
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1 subsection (b)(1), or whenever the Attorney General has

2 reason to believe that a State or other recipient is engaged

3 in a pattern or practice in violation of a provision of law

4 referred to in subsection (a)(1) or in violation of para5 graph (2), (3), (4), or (5) of subsection (a), the Attorney

6 General may bring a civil action in any appropriate district

7 court of the United States for such relief as may be appro8 priate, including injunctive relief.

9 SEC. 178. JUDICIAL REVIEW.

10 (a) IN GENERAL.—

11 (1) With respect to any final order by the Sec12 retary under section 176 whereby the Secretary de13 termines to award, to not award, or to only condi14 tionally award, financial assistance, with respect to

15 any final order of the Secretary under section 176,

16 with respect to a corrective action or sanction im17 posed under section 174, any party to a proceeding

18 which resulted in such final order may obtain review

19 of such final order in the United States Court of Ap20 peals having jurisdiction over the applicant or recipi21 ent of funds, by filing a review petition within 30

22 days of such final order.

23 (2) The clerk of the court shall transmit a copy

24 of the review petition to the Secretary, who shall file

25 the record upon which the final order was entered as
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1 provided in section 2112 of title 28, United States

2 Code. Review petitions, unless ordered by the court,

3 shall not stay the Secretary’s order. Petitions under

4 this title shall be heard expeditiously, if possible

5 within ten days of the filing of a reply brief.

6 (3) No objection to the order of the Secretary

7 shall be considered by the court unless the objection

8 shall have been specifically and timely urged before

9 the Secretary. Review shall be limited to questions

10 of law and the Secretary’s findings of fact shall be

11 conclusive if supported by substantial evidence.

12 (b) JURISDICTION OF THE COURT.—The court shall

13 have jurisdiction to make and enter a decree affirming,

14 modifying, or setting aside the order of the Secretary in

15 whole or in part. The court’s judgment shall be final, sub16 ject to certiorari review by the Supreme Court of the

17 United States as provided in section 1254(1) of title 28,

18 United States Code.

19 SEC. 179. ADMINISTRATIVE PROVISIONS.

20 (a) RULES AND REGULATIONS.—The Secretary may,

21 in accordance with chapter 5 of title 5, United States

22 Code, prescribe such rules and regulations (including per23 formance standards) as the Secretary deems necessary.

24 Such rules and regulations may include adjustments au25 thorized by section 204 of the Intergovernmental Coopera-
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1 tion Act of 1968. All such rules and regulations shall be

2 published in the Federal Register at least thirty days prior

3 to their effective date. Copies of all such rules and regula4 tions shall be transmitted to the appropriate committees

5 of the Congress at the same time and shall contain, with

6 respect to each material provision of such rules and regu7 lations, citations to the particular substantive section of

8 law which is the basis therefor.

9 (b) GIFTS.—The Secretary is authorized, in carrying

10 out this title, to accept, purchase, or lease in the name

11 of the department, and employ or dispose of in furtherance

12 of the purposes of this title, any money or property, real,

13 personal, or mixed, tangible or intangible, received by gift,

14 devise, bequest, or otherwise, and to accept voluntary and

15 uncompensated services notwithstanding the provisions of

16 section 1342 of title 31, United States Code.

17 (c) AUTHORITY TO EXPEND FUNDS.—The Secretary

18 may make such grants, contracts, or agreements, establish

19 such procedures and make such payments, in installments

20 and in advance or by way of reimbursement, or otherwise

21 allocate or expend funds under this title as necessary to

22 carry out this title, including (without regard to the provi23 sions of section 4774(d) of title 10, United States Code)

24 expenditures for construction, repairs, and capital im-
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1 provements, and including necessary adjustments in pay2 ments on account of overpayments or underpayments.

3 (d) USE OF SERVICES AND FACILITIES.—The Sec4 retary is authorized, in carrying out this title, under the

5 same conditions applicable under section 179(c) or to the

6 extent permitted by law other than this title, to accept

7 and use the services and facilities of departments, agen8 cies, and establishments of the United States. The Sec9 retary is also authorized to accept and use the services

10 and facilities of the agencies of any State or political sub11 division of a State, with its consent.

12 (e) POLITICAL ACTIVITIES.—The Secretary shall not

13 provide financial assistance for any program under this

14 title which involves political activities.

15 SEC. 180. OBLIGATIONAL AUTHORITY.

16 Notwithstanding any other provision of this title, no

17 authority to enter into contracts or financial assistance

18 agreements under this title shall be effective except to

19 such extent or in such amount as are provided in advance

20 in appropriation Acts.

21 SEC. 181. CRIMINAL PROVISIONS.

22 Section 665 of title 18, United States Code, is

23 amended by striking ‘‘or the Job Training Partnership

24 Act’’ each place it appears and inserting ‘‘, the Job Train-
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1 ing Partnership Act, or title I of the Reemployment Act

2 of 1994.’’

3 SEC. 182. REFERENCES.

4 Effective on the date of enactment of this title, all

5 references in any other statute other than this Act, and

6 other than in section 665 of title 18, United States Code,

7 to the Job Training Partnership Act shall be deemed to

8 also refer to title I of the Reemployment Act of 1994.

9 PART F—MISCELLANEOUS PROVISIONS

10 SEC. 191. EFFECTIVE DATE.

11 This title shall take effect on July 1, 1995.

12 SEC. 192. REPEALERS.

13 (a) IN GENERAL.—The following programs shall ter14 minate on July 1, 1995:

15 (1) The program authorized pursuant to sec16 tions 301–324 of the Job Training Partnership Act,

17 commonly referred to as EDWAA;

18 (2) The program authorized under section 325

19 of such Act, commonly referred to as the Defense

20 Conversion Adjustment Program;

21 (3) The program authorized under section

22 325A of such Act, commonly referred to as the De23 fense Diversification Program; and
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1 (4) The program authorized under section 326

2 of such Act, commonly referred to as the Clean Air

3 Employment Transition Assistance Program.

4 (b) ADDITIONAL PROGRAM.—Part J of title IV and

5 section 462(e) of the Job Training Partnership Act shall

6 terminate on July 1, 1995.

7 SEC. 193. TRANSITION.

8 The Secretary may establish such rules and proce9 dures as may be necessary to provide for the orderly tran10 sition from the programs described in section 192(a) to

11 the program authorized under this title.

12 TITLE II—RETRAINING INCOME SUPPORT

13 AND FLEXIBILITY IN UNEMPLOYMENT

14 COMPENSATION

15 PART A—RETRAINING INCOME SUPPORT

16 PROGRAM

17 SEC. 201. ESTABLISHMENT.

18 There is hereby established a retraining income sup19 port program to assist permanently laid-off individuals

20 participating in long-term training programs.

21 SEC. 202. ELIGIBILITY REQUIREMENTS.

22 (a) TENURED WORKERS.—For a week beginning

23 after July 1, 1995, to the extent that funds are available

24 in the account established by section 911 of the Social Se25 curity Act, payment of retraining income support shall be
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1 made to an individual who files an application for such

2 support if the following conditions are met:

3 (1) Such individual has been permanently laid4 off from such individual’s employer.

5 (2) Except as specified in subsections (b) and

6 (c), such individual had been continuously employed

7 at the time of the permanent layoff for a period of

8 three years or more by the employer from whom

9 such individual has been permanently laid-off.

10 (3) Such individual—

11 (A) was entitled, as a result of the layoff

12 described in paragraph (1), to (or would have

13 been entitled to if such individual had applied

14 therefor) unemployment compensation under

15 any Federal or State law for a week within the

16 benefit period in which the layoff took place, or

17 which began (or would have begun) by reason

18 of the filing of a claim for unemployment com19 pensation by such individual after such layoff;

20 (B) has exhausted all rights to any unem21 ployment compensation to which such individual

22 was entitled (or would have been entitled if

23 such individual had applied therefor); and
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1 (C) does not have an unexpired waiting pe2 riod applicable to such individual for such un3 employment compensation.

4 (4) Such individual is participating, and making

5 satisfactory progress, in an education or training

6 program that is part of a reemployment plan devel7 oped for such individual by an agency certified by

8 the Secretary of Labor to develop reemployment

9 plans, and has been enrolled in such program by—

10 (A) the end of the sixteenth week after the

11 permanent layoff, or, if later, the end of the

12 fourteenth week after such individual is aware

13 that the layoff is permanent,

14 (B) a period determined by the Secretary

15 that is not in excess of 30 days after the peri16 ods described in subparagraph (A), in cases

17 where under guidelines issued by the Secretary

18 it is determined that there are extenuating cir19 cumstances that justify such extension, such as

20 a cancellation of a course, a first available en21 rollment date that is after the periods described

22 in subparagraph (A), or the commencement of

23 negotiations for the reopening of the plant or

24 facility from which the individual has been laid25 off, or
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1 (C) the end of the sixteenth week after

2 separation from the subsequent employment de3 scribed in section 120 of this Act in the case of

4 an individual who has been issued a certificate

5 of continuing eligibility under such section.

6 (b) TRADE-IMPACTED WORKERS.—To the extent

7 that funds are available in the account established by sec8 tion 911 of the Social Security Act, payment of retraining

9 income support shall be made to a permanently laid-off

10 individual who has been determined to be an adversely af11 fected worker covered by a certification issued under part

12 D of this title and who files an application for such sup13 port for any week of unemployment which begins more

14 than 60 days after the date on which the petition that

15 resulted in such certification was filed, if the following

16 conditions are met:

17 (1) Such individual’s layoff before his, or her,

18 application under this title occurred—

19 (A) on or after the impact date, as speci20 fied in the certification under which such indi21 vidual is covered,

22 (B) before the expiration of the 2-year pe23 riod beginning on the date on which the deter24 mination under section 242 of this Act was

25 made, and
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1 (C) before the termination date (if any) de2 termined pursuant to paragraph 242(b)(3)(D)

3 of this Act.

4 (2) Such worker had, in the 52-week period

5 ending with the week in which such layoff occurred,

6 at least 26 weeks of employment at wages of $30 or

7 more a week in adversely affected employment with

8 a single firm or subdivision of a firm, or, if data

9 with respect to weeks of employment with a firm are

10 not available, equivalent amounts of employment

11 computed under regulations prescribed by the Sec12 retary. A week that is considered to be a week of

13 employment under subsection (d) shall also be con14 sidered a week of employment for purposes of this

15 paragraph.

16 (3) Such individual meets the conditions de17 scribed in paragraphs (3) and (4) of subsection (a).

18 (c) ADDITIONAL ELIGIBILITY BEGINNING IN FISCAL

19 YEAR 2000.— For a week beginning after September 30,

20 1999, in addition to individuals meeting the requirements

21 of subsection (a), payment of retraining income support

22 shall, to the extent that funds are available in the account

23 established by section 911 of the Social Security Act, be

24 made to an individual who—
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1 (1)(A) has been continuously employed at the

2 time of the permanent layoff for a period of one year

3 or more, but less than three years, by the employer

4 from whom such individual has been permanently

5 laid-off; or

6 (B) was continuously employed in the same oc7 cupation and industry by a single employer for a pe8 riod of one year or more and within the preceding

9 12-month period was—

10 (i) separated from such employer, and

11 (ii) employed in the same occupation and

12 industry by a subsequent employer from whom

13 such individual has been permanently laid off;

14 and

15 (2) meets the conditions described in para16 graphs (1), (3) and (4) of subsection (a).

17 (d) CONTINUOUS EMPLOYMENT.—(1) For purposes

18 of this part and subject to the limitations of paragraph

19 (2) of this subsection, continuous employment shall be

20 deemed to include any week in which an individual—

21 (A) was on employer-authorized leave for pur22 poses of vacation, sickness, injury or inactive duty or

23 active duty military service for training,
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1 (B) was on employer-authorized leave because

2 of circumstances described in subsection 102(a) of

3 the Family and Medical Leave Act of 1993,

4 (C) did not work because of a disability that is

5 compensable under a worker’s compensation law or

6 plan of a State or the United States,

7 (D) had his, or her, employment interrupted in

8 order to serve as a full-time representative of a labor

9 organization in such firm or subdivision,

10 (E) was on call-up for purposes of active duty

11 in a reserve status in the Armed Forces of the

12 United States, provided such active duty is ‘‘Federal

13 service’’ as defined in section 8521(a)(1) of title 5,

14 United States Code, or

15 (F) was on temporary layoff.

16 (2) LIMITATIONS.—For the purpose of paragraph (1)

17 of this subsection, no more than the following number of

18 weeks within a one year period may be treated as weeks

19 of employment—

20 (A) 7 weeks in the case of weeks described in

21 subparagraph (A) or (D) of paragraph (1), or both;

22 (B) 12 weeks in the case of weeks described in

23 paragraph (B) of paragraph (1); and

24 (C) 26 weeks in the case of weeks described in

25 paragraphs (C) and (E) of paragraph (1).
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1 (e) SAME EMPLOYER.—

2 (1) IN GENERAL.—For purposes of this part,

3 employment deemed to be employment for a single

4 employer shall include—

5 (A) all employment on jobs that were cov6 ered by a multiemployer plan defined by section

7 4001(a)(3) of the Employee Retirement Income

8 Security Act of 1974;

9 (B) all employment that was obtained

10 through a single hiring hall,

11 (C) all employment for the employer from

12 whom the individual was laid-off or the prede13 cessor of such employer, and

14 (D) all employment for employers in a

15 joint employment relationship, as described in

16 section 791.2(b) of title 29 of the Code of Fed17 eral Regulations, with the individual.

18 (2) DEFINITION OF PREDECESSOR.—For pur19 poses of paragraph (1)(C), an employer shall be con20 sidered a predecessor of the employer from whom

21 the individual was laid-off (hereinafter referred to as

22 successor employer) if—

23 (A) the successor employer acquired sub24 stantially all the property used in a trade or
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1 business, or used in a separate unit of a trade

2 or business, from such employer; and

3 (B) the individual who was laid-off was

4 employed by such employer in such trade or

5 business, or in a separate unit of such trade or

6 business, immediately before the acquisition and

7 was employed by the successor employer imme8 diately after the acquisition.

9 (f) INDIVIDUAL TREATED AS PARTICIPATING IN

10 EDUCATION OR TRAINING PROGRAM.—For purposes of

11 this part, an individual shall be treated as participating,

12 and making satisfactory progress, in an education or

13 training program during any week which is part of a break

14 from training that does not exceed 28 days if the break

15 is provided under such program.

16 SEC. 203. WEEKLY AMOUNTS.

17 The retraining income support payable to a perma18 nently laid-off individual for a week of training shall be

19 an amount equal to the most recent weekly benefit amount

20 of the unemployment compensation payable to such indi21 vidual for a week of total unemployment preceding such

22 individual’s first exhaustion of unemployment compensa23 tion related to the permanent layoff reduced (but not

24 below zero) by—
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1 (1) any training income support provided for

2 such week to such individual under another Federal

3 program;

4 (2) income that is earned from employment

5 that exceeds one-half the amount equal to the most

6 recent weekly benefit amount of the unemployment

7 compensation payable to such individual for a week

8 of total unemployment.

9 SEC. 204. LIMITATIONS ON RETRAINING INCOME SUPPORT.

10 (a) INDIVIDUALS WITH THREE YEARS OR MORE OF

11 JOB TENURE.—

12 (1) MAXIMUM AMOUNT.—The maximum

13 amount of retraining income support payable to an

14 individual under subsections (a) and (b) of section

15 202 of this Act shall be the amount which is the

16 product of 52 multiplied by the retraining income

17 support payable to the individual for a week of total

18 unemployment (as determined under section 203),

19 but such product shall be reduced by the total sum

20 of extended and additional unemployment compensa21 tion to which the individual was entitled (or would

22 have been entitled had he applied therefor) in the

23 worker’s first benefit period as described in section

24 202(a)(3)(A).

25 (2) PERIOD OF AVAILABILITY.—
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1 (A) Subject to the provisions of paragraph

2 (B) of this subsection, no retraining income

3 support shall be paid for any week occurring

4 after the close of the 104-week period that be5 gins with the first week following the week after

6 the individual was permanently laid-off as de7 scribed in section 202(a)(1) of this Act.

8 (B) For the purpose of determining the

9 104-week period in subparagraph (A) of this

10 subsection, the period of time specified in a cer11 tificate of continuing eligibility issued pursuant

12 under section 120 of this Act during which the

13 individual is employed in a job described by

14 that section shall not be counted.

15 (b) INDIVIDUALS WITH LESS THAN THREE YEARS

16 OF JOB TENURE.—

17 (1) MAXIMUM AMOUNT.—The maximum

18 amount of retraining income support payable to an

19 individual under subsection 202(c) this Act shall be

20 the amount which is the product of 26 multiplied by

21 the retraining income support payable to the individ22 ual for a week of total unemployment (as determined

23 under section 203), but such product shall be re24 duced by the total sum of extended and additional

25 unemployment compensation to which the individual
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1 was entitled (or would have been entitled had he ap2 plied therefor) in the worker’s first benefit period as

3 described in section 202(a)(3)(A).

4 (2) PERIOD OF AVAILABILITY.—

5 (A) Subject to the provisions of paragraph

6 (B) of this subsection, no retraining income

7 support shall be paid for any week occurring

8 after the close of the 78-week period that be9 gins with the first week following the week after

10 the individual was permanently laid-off as de11 scribed in paragraph (1) section 202(a) of this

12 Act.

13 (B) For the purpose of determining the

14 78-week period in paragraph (A) of this sub15 section, the period of time specified in a certifi16 cate of continuing eligibility issued pursuant

17 under section 120 of this Act during which the

18 individual is employed in a job described by

19 that section shall not be counted.

20 (c) WEEKS DURING WHICH INDIVIDUAL RECEIVED

21 ON-THE-JOB TRAINING.—No retraining income support

22 shall be paid to an individual under this part for any week

23 during which the individual is receiving on-the-job train24 ing.
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1 (d) COORDINATION WITH EXTENDED BENEFITS

2 PROGRAM.—Notwithstanding any other provision of this

3 Act or other Federal law, if the benefit year of an individ4 ual ends within an extended benefit period, the number

5 of weeks of extended benefits that such worker would, but

6 for this subsection, be entitled to an extended benefit pe7 riod shall be reduced (but not below zero) by the number

8 of weeks for which the individual was entitled, during such

9 benefit year, to retraining income support under this Act.

10 For purposes of this subsection, the terms ‘‘benefit year’’

11 and ‘‘extended benefit period’’ shall have the same respec12 tive meanings given to them in the Federal-State Ex13 tended Unemployment Compensation Act of 1970.

14 SEC. 205. AGREEMENTS WITH STATES.

15 (a) AGREEMENT REQUIREMENTS.—

16 (1) The Secretary is authorized on behalf of the

17 United States to enter into an agreement with any

18 State, or with any State agency (referred to in this

19 part as ‘‘cooperating States’’ and ‘‘cooperating

20 States agencies’’ respectively). Under such an agree21 ment, the cooperating State agency (A) will receive

22 applications for, and will provide, payments on the

23 basis provided in this part, (B) will provide informa24 tion to each applicant describing the time periods by

25 which enrollment in education must in order to be
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1 eligible for retraining income support pursuant to

2 section 202 of this Act, (C) will provide for a system

3 of voluntary withholding of Federal individual in4 come tax for all individuals receiving retraining in5 come support and (D) will otherwise cooperate with

6 the Secretary and with other Federal agencies in

7 providing payments under this part.

8 (2) Each agreement under this part shall pro9 vide the terms and conditions upon which the agree10 ment may be amended, suspended, or terminated.

11 (b) DETERMINATIONS.—A determination by a co12 operating State agency with respect to eligibility for re13 training income support under this part is subject to re14 view in the same manner and to the same extent as deter15 minations under the applicable State law and only in that

16 manner and to that extent.

17 (c) SURETY BONDS.—Any agreement under this part

18 may require any officer or employee of the State certifying

19 payments or disbursing funds under the agreement or

20 otherwise participating in the performance of the agree21 ment, to give a surety bond to the United States in such

22 amount as the Secretary may deem necessary, and may

23 provide for the cost of such bond from funds for carrying

24 out the purposes of this part.
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1 SEC. 206. ADMINISTRATION ABSENT STATE AGREEMENT.

2 (a) IN GENERAL.—In any State where there is no

3 agreement in force between a State or its agency under

4 section 205 of this Act, the Secretary shall arrange, under

5 prescribed regulations, for performance of all necessary

6 functions under this part, including provisions for a fair

7 hearing for any individual whose application for payments

8 has been denied.

9 (b) JUDICIAL REVIEW.—A final determination under

10 subsection (a) with respect to eligibility for retraining in11 come support under this part is subject to review by the

12 courts in the same manner and to the same extent as is

13 provided by section 205(g) of the Social Security Act.

14 SEC. 207. LIABILITIES OF CERTIFYING AND DISBURSING

15 OFFICERS.

16 (a) CERTIFYING OFFICERS.—No person designated

17 by the Secretary, or designated pursuant to an agreement

18 under this part, as a certifying officer, shall, in the ab19 sence of gross negligence or intent to defraud the United

20 States, be liable with respect to any payment certified by

21 him under this part.

22 (b) DISBURSING OFFICERS.—No disbursing officer

23 shall, in the absence of gross negligence or intent to de24 fraud the United States, be liable with respect to any pay25 ment by him, or her, under this part if it was based upon
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1 a voucher signed by a certifying officer designated as pro2 vided in subsection (a).

3 SEC. 208. FRAUD AND RECOVERY OF OVERPAYMENTS.

4 (a) IN GENERAL.—

5 (1) If a cooperating State agency, the Sec6 retary, or a court of competent jurisdiction deter7 mines that any person has received any payment

8 under this part to which the person was not entitled,

9 including a payment referred to in subsection (b),

10 such person shall be liable to repay such amount to

11 the State agency or the Secretary, as the case may

12 be, except that the State agency or the Secretary

13 may waive such repayment if such agency or the

14 Secretary determines, in accordance with guidelines

15 prescribed by the Secretary, that—

16 (A) the payment was made without fault

17 on the part of such individual, and

18 (B) requiring such repayment would be

19 contrary to equity and good conscience.

20 (2) Unless an overpayment is otherwise recov21 ered, or waived under paragraph (1), the State agen22 cy or the Secretary shall recover the overpayment by

23 deductions from any sum payable to such person

24 under this part, under any Federal unemployment

25 compensation law administered by the State agency
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1 or the Secretary, or under any other Federal law ad2 ministered by the State agency or the Secretary,

3 which provides for the payment of assistance or an

4 allowance with respect to unemployment, and, not5 withstanding any other provision of State law or

6 Federal law to the contrary, the Secretary may re7 quire the State agency to recover any over-payment

8 under this part by deduction from any unemploy9 ment compensation payable to such person under

10 the State law, except that no single deduction under

11 this paragraph shall exceed 50 percent of the

12 amount otherwise payable.

13 (b) DISBARMENT.—If a cooperating State agency,

14 the Secretary, or a court of competent jurisdiction deter15 mines that an individual—

16 (1) knowingly has made, or caused another to

17 make, a false statement or representation of a mate18 rial fact, or

19 (2) knowingly has failed, or caused another to

20 fail, to disclose a material fact, and as a result of

21 such false statement or representation, or of such

22 nondisclosure, such individual has received any pay23 ment under this part to which the individual was not

24 entitled,
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1 such individual shall in addition to any other penalty pro2 vided by law, be ineligible for any further payments under

3 this part.

4 (c) FINAL DETERMINATION.—Except for overpay5 ments determined by a court of competent jurisdiction, no

6 repayment may be required, and no deduction may be

7 made, under this section until a determination under sub8 section (a)(1) by the State agency or the Secretary, as

9 the case may be, has been made, notice of the determina10 tion and an opportunity for a fair hearing thereon has

11 been given to the individual concerned, and the determina12 tion has become final.

13 (d) AMOUNT RECOVERED.—Any amount recovered

14 under this section shall be returned to the Retraining In15 come Support Account established under section 911 of

16 the Social Security Act.

17 SEC. 209. PENALTIES.

18 Whoever makes a false statement of a material fact

19 knowing it to be false, or knowingly fails to disclose a ma20 terial fact, for the purpose of obtaining or increasing any

21 payment authorized to be furnished under this part or

22 pursuant to an agreement under section 105 shall be fined

23 not more $1,000 or imprisoned for not more than one

24 year, or both. Nothing in this section shall supersede any
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1 other applicable provisions of title 18 of the United States

2 Code.

3 SEC. 210. DEFINITIONS.

4 For purpose of this part—

5 (1) the term ‘‘State’’ includes the District of

6 Columbia, the Commonwealth of Puerto Rico, and

7 the Virgin Islands;

8 (2) the term ‘‘State agency’’ means the agency

9 of the State which administers the State law;

10 (3) the term ‘‘State law’’ means the unemploy11 ment compensation law of the State approved by the

12 Secretary of Labor under section 3304 of the Inter13 nal Revenue Code of 1986;

14 (4) the term ‘‘applicable State law’’ means the

15 State law of the State in which the individual filed,

16 and became eligible, for unemployment compensa17 tion;

18 (5) the term ‘‘unemployment compensation’’

19 means the unemployment compensation payable to

20 an individual under any State law or Federal unem21 ployment compensation law, including chapter 85 of

22 title 5, United States Code and the Railroad Unem23 ployment Insurance Act;

24 (6) the term ‘‘week’’ means a week as defined

25 in the applicable State;
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1 (7) the term ‘‘benefit period’’ means, with re2 spect to an individual—

3 (A) the benefit year and any ensuing pe4 riod, as determined under the applicable State

5 law, during which the individual is eligible for

6 regular compensation, additional compensation,

7 or extended compensation; or

8 (B) the equivalent to such a benefit year

9 or ensuing period provided for under the appli10 cable Federal unemployment compensation law;

11 (8) the term ‘‘on-the-job’’ training means train12 ing provided by the employer to an individual who

13 performs services for remuneration for the employer;

14 (9) the term ‘‘Secretary’’ means the Secretary

15 of Labor;

16 (10) the term ‘‘permanently laid-off’’ means a

17 layoff under which a recall is not expected within 26

18 weeks;

19 (11) the term ‘‘extended unemployment com20 pensation’’ means compensation (including com21 pensation payable pursuant to chapter 85 of title 5)

22 payable for weeks of unemployment beginning in an

23 extended benefit period to an individual under those

24 provisions of a State law which satisfy the require25 ments of the Federal-State Extended Unemployment
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1 Compensation Act of 1970 with respect to the pay2 ment of extended compensation; and

3 (12) the term ‘‘additional compensation’’ means

4 compensation payable by reason of conditions of

5 high unemployment or other special factors to indi6 viduals who have exhausted their unemployment

7 compensation.

8 SEC. 211. REGULATIONS.

9 The Secretary shall prescribe such regulations as may

10 be necessary to carry out the provisions of this part.

11 SEC. 212. EFFECTIVE DATE.

12 The provisions of this part shall take effect on July

13 1, 1995.

14 PART B—RETRAINING INCOME SUPPORT

15 ACCOUNT

16 SEC. 221. ESTABLISHMENT OF RETRAINING INCOME SUP17 PORT ACCOUNT.

18 Title IX of the Social Security Act is amended by

19 adding after section 910 the following section:

20 ‘‘SEC. 911. RETRAINING INCOME SUPPORT ACCOUNT.

21 ‘‘(a) ESTABLISHMENT OF ACCOUNT.—There is here22 by established in the Unemployment Trust Fund a Re23 training Income Support Account. For the purposes pro24 vided for in section 904(e), such account shall be main25 tained as a separate book account.
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1 ‘‘(b) TRANSFERS TO ACCOUNT.—

2 ‘‘(1) TRANSFER OF TAX RECEIPTS.—The Sec3 retary of the Treasury shall transfer (as of the close

4 of each month) from the employment security ad5 ministration account to the retraining income sup6 port account established by subsection (a) an

7 amount equal to one fifth of the tax collected under

8 section 3301 of the Internal Revenue Code of 1986,

9 (exclusive of any increased revenue that is the result

10 of a loss of the tax credit permitted under sub11 sections (a) or (b) of section 3302 of the Internal

12 Revenue Code of 1986 or a tax credit reduction

13 under paragraphs (2) or (3) of subsection 3302(c) of

14 such code) and covered into the Treasury.

15 ‘‘(2) LIMITATION ON TRANSFERS.—The amount

16 transferred pursuant to paragraph (1) in the follow17 ing fiscal years shall not exceed the amounts listed

18 in the following table:

‘‘Fiscal year Amount

FY 1996 .................................................................... $350,000,000

FY 1997 .................................................................... $500,000,000

FY 1998 .................................................................... $550,000,000

FY 1999 .................................................................... $580,000,000

FY 2000 .................................................................... $920,000,000.

19 ‘‘(3) APPROPRIATION OF FUNDS.—All funds

20 transferred to the retraining income support account

21 established by subsection (a) are hereby appro-
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1 priated for the purpose of transfer to the States pur2 suant to subsection (c).

3 ‘‘(c) TRANSFERS TO STATES.—

4 ‘‘(1) Amounts in the retraining income support

5 account shall be available for transfer to States

6 which have an agreement described in section 205 of

7 the Reemployment Act of 1994.

8 ‘‘(2) The Secretary of Labor shall from time to

9 time certify to the Secretary of the Treasury for

10 transfer to each State that has an agreement de11 scribed in section 205 of the Reemployment Act of

12 1994 the sums necessary to enable such State to

13 make payments provided by section 202 of such Act.

14 The Secretary of the Treasury, prior to audit or set15 tlement by the General Accounting Office, shall

16 make payment to the State in accordance with such

17 certification.

18 ‘‘(3) Amounts transferred to a State under

19 paragraph (2) shall be used only in the payment of

20 cash benefits to individuals with respect to their re21 training income support provided by section 202 of

22 the Reemployment Act of 1994; and money so re23 ceived by a State which is not used for such pay24 ments shall be returned, at the time specified in the

25 agreement entered into under section 205 of such
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1 Act, to the Secretary of the Treasury for deposit in

2 the Retraining Income Support Account established

3 under subsection (a). Nothing in this paragraph

4 shall be construed to prohibit deducting an amount

5 from retraining income support otherwise payable to

6 an individual and using the amount so deducted to

7 pay for either health insurance or the withholding of

8 Federal individual income tax if the individual elect9 ed to have such deduction made and, in the case of

10 a deduction for health insurance, such deduction was

11 made under a program approved by the Secretary of

12 Labor.

13 ‘‘(d) REPAYMENT.—Whenever the Secretary of the

14 Treasury (after consultation with the Secretary of Labor)

15 determines that the amount transferred to a State under

16 subsection (c) exceeds the amount necessary to meet the

17 anticipated payments for retraining income support from

18 the account, the Secretary of the Treasury shall demand

19 of that State the amount of such excess, which shall be

20 returned to the Retraining Income Support Account estab21 lished under subsection (a).’’.

22 SEC. 222. FUNDS FOR ADMINISTRATION.

23 (a) Subparagraph (A) of section 901(c)(1) of the So24 cial Security Act is amended by—

25 (1) striking ‘‘and’’ at the end of clause (ii);
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1 (2) adding ‘‘and’’ at the end of clause (iii); and

2 (3) adding at the end thereof the following:

3 ‘‘(iv) assisting the States in the adminis4 tration of cash benefits for retraining income

5 support under section 202 of the Reemployment

6 Act of 1994.’’.

7 (b) Subparagraph (B) of section 901(c)(1) of the So8 cial Security Act is amended by—

9 (1) striking ‘‘and’’ at the end of clause (iv);

10 (2) adding ‘‘and’’ at the end of clause (v); and

11 (3) adding at the end thereof the following:

12 ‘‘(vi) title II of the Reemployment Act of

13 1994.’’.

14 (c) Section 901(c)(2) of the Social Security Act is

15 amended by—

16 (1) striking ‘‘and’’ at the end of subparagraph

17 (B);

18 (2) adding ‘‘and’’ at the end of subparagraph

19 (C); and

20 (3) adding at the end thereof the following:

21 ‘‘(D) title II of the Reemployment Act of

22 1994.’’.

23 SEC. 223. CONFORMING AMENDMENTS.

24 (a) Subparagraph (B) of section 905(b)(1) of the So25 cial Security Act is amended to read as follows:
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1 ‘‘(B) the sum of the payments and trans2 fers during such month from the employment

3 security administration account pursuant to

4 section 901 (b) and (d) and section 911(b).’’.

5 (b) Section 3302(c)(3) of the Internal Revenue Code

6 of 1986 is amended by—

7 (1) striking ‘‘or’’ at the end of subparagraph

8 (A);

9 (2) adding at the end of subparagraph (B) the

10 following:

11 ‘‘(C) entered into an agreement described

12 in section 205 of the Reemployment Act of

13 1994, with the Secretary of Labor before July

14 1, 1995, or

15 ‘‘(D) fulfilled it commitments under an

16 agreement described in section 205 of the Re17 employment Act of 1994.’’.

18 SEC. 224. EFFECTIVE DATE.

19 The provisions of this part, and the amendments

20 made by this part, shall take effect on October 1, 1995.
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1 PART C—FINANCING PROVISIONS

2 SEC. 231. MODIFICATIONS TO FEDERAL UNEMPLOYMENT

3 TAX.

4 (a) IN GENERAL.—Section 3301 of the Internal Rev5 enue Code of 1986 (relating to the rate of Federal unem6 ployment tax) is amended to read as follows:

7 ‘‘SEC. 3301. RATE OF TAX.

8 ‘‘There is hereby imposed on every employer (as de9 fined in section 3306(a)) for each calendar year an excise

10 tax, with respect to having individuals in his employ, equal

11 to 6.2 percent of the total wages (as defined in section

12 3306(b)) paid by him during the calendar year with re13 spect to unemployment (as defined in section 3306(c)).’’.

14 (b) EFFECTIVE DATE.—The provisions of this sec15 tion shall take effect on the date of enactment of this Act.

16 SEC. 232. VOLUNTARY WITHHOLDING OF FEDERAL INDI17 VIDUAL INCOME TAX.

18 (a) AUTHORITY FOR WITHHOLDING.—Section 3402

19 of the Internal Revenue Code of 1986 is amended by add20 ing at the end thereof the following new paragraph:

21 ‘‘(t) VOLUNTARY WITHHOLDING ON UNEMPLOY22 MENT AND OTHER BENEFITS.—For purposes of this

23 chapter, amounts subject to tax under section 85(a), and

24 amounts provided as retraining income support under sec25 tion 202 of the Reemployment Act of 1994, shall be treat26 ed as if they were a payment of wages by an employer
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1 to an employee subject to withholding at a rate of 15 per2 cent of the amount paid, if the person to whom the bene3 fits are paid so elects. For purposes of this chapter, these

4 amounts will be treated as wages to the extent paid during

5 the period for which the election remains in effect. The

6 election shall be made in such form and manner as the

7 Secretary may provide.’’.

8 (b) ADDITIONAL REQUIREMENT FOR APPROVAL OF

9 STATE LAW.— Section 3304(a) of the Internal Revenue

10 Code is amended by adding at the end thereof the follow11 ing new paragraph:

12 ‘‘(19) provides for a system for the deduction

13 and withholding of Federal individual income tax

14 from unemployment compensation where an individ15 ual receiving such compensation voluntarily requests

16 such deduction and withholding.’’

17 (c) CONFORMING AMENDMENTS.—

18 (1) Subparagraph (C) of section 3304(a)(4) of

19 the Internal Revenue Code of 1986 is amended by

20 inserting after ‘‘health insurance’’ the following: ‘‘,

21 or the withholding of Federal individual income

22 tax,’’.

23 (2) Paragraph (5) of section 303(a) of the So24 cial Security Act is amended by inserting after
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1 ‘‘health insurance’’ the following: ‘‘, or the withhold2 ing of Federal individual income tax,’’.

3 (d) EFFECTIVE DATE.—The provisions of this sec4 tion and the amendments made by this section shall take

5 effect on January 1, 1996.

6 PART D—INTEGRATION OF TRADE-IMPACTED

7 WORKERS INTO THE COMPREHENSIVE RE8 EMPLOYMENT SYSTEM

9 SEC. 241. PHASEOUT OF TRADE ADJUSTMENT ASSISTANCE

10 PROGRAM.

11 (a) PHASEOUT.—Section 285 of the Trade Act of

12 1974 (19 U.S.C. 2271 preceding note) is amended by

13 striking subsection (c) and inserting the following:

14 ‘‘(c) No technical assistance may be provided under

15 chapter 3, after September 30, 1998.

16 ‘‘(d)(1) Except as provided in paragraph (2), no as17 sistance may be provided under chapter 2 (including sub18 chapter D of such chapter) on or after July 1, 1995.

19 ‘‘(2) Notwithstanding paragraph (1), if, on or before

20 June 30, 1995, an individual—

21 ‘‘(A) is receiving assistance under chapter 2 (in22 cluding subchapter D of such chapter), and

23 ‘‘(B) is otherwise eligible to receive assistance

24 in accordance with the requirements of such chapter,

25 such worker shall continue to be eligible to receive
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1 such assistance for any week for which the worker

2 meets the eligibility requirements of the section

3 under which the initial eligibility was determined.’’.

4 (b) EFFECTIVE DATE.—The provisions of this sec5 tion shall take effect on the date of enactment of this Act.

6 SEC. 242. TEMPORARY PROGRAM FOR THE CERTIFICATION

7 OF TRADE-IMPACTED WORKERS.

8 (a) ESTABLISHMENT OF TRANSITIONAL CERTIFI9 CATION PROGRAM.— In order to promote the effective in10 tegration of trade-impacted workers into the comprehen11 sive system of worker reemployment and retraining income

12 support, there is established within the Department of

13 Labor a temporary, transitional certification program.

14 (b) COMPONENTS OF CERTIFICATION PROGRAM.—

15 (1) GROUP ELIGIBILITY REQUIREMENTS.—The

16 Secretary shall certify a group of workers (including

17 workers in any agricultural firm or subdivision of an

18 agricultural firm) as eligible for services under title

19 I of this Act and eligible to apply for retraining in20 come support in accordance with section 202(b) of

21 this Act if the Secretary determines—

22 (A) that a significant number or propor23 tion of the workers in such workers’ firm or an

24 appropriate subdivision of the firm have been

25 laid-off, or are threatened to become laid-off,
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1 (B) that sales or production, or both, of

2 such firm or subdivision have decreased abso3 lutely, and

4 (C) that increases of imports of articles

5 like or directly competitive with articles pro6 duced by such workers’ firm or an appropriate

7 subdivision thereof contributed importantly to

8 the layoffs, or threat thereof, and to such de9 cline in sales or production.

10 (2) For purposes of subsection (a)(3)—

11 (A) the term ‘‘contributed importantly’’

12 means a cause which is important but not nec13 essarily more important than any other cause;

14 (B) any firm, or appropriate subdivision of

15 a firm, that engages in exploration or drilling

16 for oil or natural gas shall be considered to be

17 a firm producing oil or natural gas; and

18 (C) any firm, or appropriate subdivision of

19 a firm, that engages in exploration or drilling

20 for oil or natural gas, or otherwise produces oil

21 or natural gas, shall be considered to be pro22 ducing articles directly competitive with imports

23 of oil and with imports of natural gas.

24 (2) PETITIONS.—A petition for a certification

25 of eligibility for services under title I of this Act and
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1 eligibility to apply for retraining income support in

2 accordance with section 202(b) of this Act may be

3 filed with the Secretary by a group of workers (in4 cluding workers in any agricultural firm or subdivi5 sion of an agricultural firm) or by their certified or

6 recognized union or other duly authorized represent7 ative. Upon receipt of the petition, the Secretary

8 shall promptly publish notice in the Federal Register

9 that such petition has been received and an inves10 tigation has begun.

11 (3) DETERMINATION BY SECRETARY OF

12 LABOR.—

13 (A) CERTIFICATION OF ELIGIBILITY.—As

14 soon as possible after the date on which a peti15 tion is filed under paragraph (2), but in any

16 event not later than 60 days after that date,

17 the Secretary shall determine whether the peti18 tioning group meets the requirements of para19 graph (1) and shall issue a certification of eligi20 bility for services under title I of this Act and

21 to apply for retraining income support in ac22 cordance with section 202(b) of this Act. Each

23 certification shall specify the date on which the

24 layoffs began or threatened to begin.
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1 (B) WORKERS COVERED BY CERTIFI2 CATION.—A certification under this section

3 shall not apply to any worker whose last layoff

4 from the firm or appropriate subdivision of the

5 firm before his application under paragraph (2)

6 occurred more than one year before the date of

7 the petition on which such certification was

8 granted.

9 (C) PUBLICATION OF DETERMINATION IN

10 FEDERAL REGISTER.—Upon reaching a deter11 mination on a petition, the Secretary shall

12 promptly publish a summary of the determina13 tion in the Federal Register together with the

14 reasons for making such determination.

15 (D) TERMINATION OF CERTIFICATION.—

16 Whenever the Secretary determines, with re17 spect to any certification of eligibility of the

18 workers of a firm or subdivision of the firm,

19 that layoffs from such firm or subdivision are

20 no longer attributable to the conditions speci21 fied in paragraph (1), the Secretary shall termi22 nate such certification and promptly have notice

23 of such termination published in the Federal

24 Register together with the reasons for making

25 such determination. Such termination shall
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1 apply only with respect to layoffs occurring

2 after the termination date specified by the Sec3 retary.

4 (4) SUBPENA POWER.—

5 (A) SUBPOENA BY SECRETARY.—The Sec6 retary may require by subpoena the attendance

7 of witnesses and the production of evidence nec8 essary for him to make a determination under

9 the provisions of this section.

10 (B) COURT ORDER.—If a person refuses to

11 obey a subpoena issued under subparagraph

12 (A), a United States district court within the

13 jurisdiction of which the relevant proceeding

14 under this section conducted may, upon petition

15 by the Secretary, issue an order requiring com16 pliance with such subpoena.

17 (c) EFFECTIVE DATE.—Petitions for certification

18 under this section may be filed on or after July 1, 1995,

19 but not later than July 1, 1999.
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1 PART E—UNEMPLOYMENT COMPENSATION

2 FLEXIBILITY

3 SEC. 251. TREATMENT OF SHORT-TIME COMPENSATION

4 PROGRAMS.

5 (a) GENERAL RULE.—Section 3306 of the Internal

6 Revenue Code of 1986 is amended by adding at the end

7 thereof the following new subsection:

8 ‘‘(u) SHORT-TIME COMPENSATION PROGRAM.—For

9 purposes of this chapter, the term ‘short-time compensa10 tion program’ means a program under which—

11 ‘‘(1) the participation of an employer is vol12 untary;

13 ‘‘(2) an employer reduces the number of hours

14 worked by employees in lieu of temporary layoffs;

15 ‘‘(3) such employees whose workweeks have

16 been reduced by at least 10 percent are eligible for

17 unemployment compensation;

18 ‘‘(4) the amount of unemployment compensa19 tion payable to any such employee is a pro rata por20 tion of the unemployment compensation which would

21 be payable to the employee if such employee were to22 tally unemployed;

23 ‘‘(5) such employees are not required to meet

24 the availability for work or work search test require25 ments while collecting short-time compensation bene-
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1 fits, but are required to be available for their normal

2 workweek;

3 ‘‘(6) eligible employees may participate in an

4 employer-sponsored training program to enhance

5 jobs skills if such program has been approved by the

6 State agency;

7 ‘‘(7) the State agency may require an employer

8 to continue to provide health benefits, and retire9 ment benefits under a defined benefit pension plan

10 (as defined in section 3(35) of the Employee Retire11 ment Income Security Act of 1974)), to any em12 ployee whose workweek is reduced pursuant to the

13 program as though the workweek of such employee

14 had not been reduced;

15 ‘‘(8) the State agency may require an employer

16 (or an employers’ association which is party to a col17 lective bargaining agreement) to submit a written

18 plan describing the manner in which the require19 ments of this subsection will be implemented and

20 containing such other information as the Secretary

21 of Labor determines is appropriate; and

22 ‘‘(9) the program meets such other require23 ments as the Secretary of Labor determines are ap24 propriate.’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) Subparagraph (E) of section 3304(a)(4) of

2 such Code is amended to read as follows:

3 ‘‘(E) amounts may be withdrawn for the

4 payment of short-time compensation under a

5 short-time compensation program (as defined

6 under section 3306(u));’’.

7 (2) Paragraph (4) of section 3306(f) of such

8 Code is amended to read as follows:

9 ‘‘(4) amounts may be withdrawn for the pay10 ment of short-time compensation under a short-time

11 compensation program (as defined under subsection

12 (u));’’.

13 (3) Section 303(a)(5) of the Social Security Act

14 is amended by striking ‘‘the payment of short-time

15 compensation under a plan approved by the Sec16 retary of Labor’’ and inserting ‘‘the payment of

17 short-time compensation under a short-time com18 pensation program (as defined in section 3306(u) of

19 the Internal Revenue Code of 1986).’’.

20 SEC. 252. TREATMENT OF REEMPLOYMENT BONUS PRO21 GRAMS.

22 (a) GENERAL RULE.—Section 3306 of the Internal

23 Revenue Code of 1986 is amended by adding at the end

24 thereof the following new subsection:
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1 ‘‘(v) REEMPLOYMENT BONUS PROGRAM.—For pur2 poses of this chapter, the term ‘reemployment bonus pro3 gram’ means a program under which—

4 ‘‘(1) a reemployment bonus is paid in a lump

5 sum to individuals who meet the requirements of

6 paragraph (4) as an incentive to rapid reemploy7 ment;

8 ‘‘(2) the reemployment bonus payable to indi9 viduals pursuant to paragraph (1) is in an amount

10 not in excess of 4 times the weekly amount of regu11 lar unemployment compensation payable to such in12 dividuals;

13 ‘‘(3) an amount equal to the amount of the re14 employment bonuses paid pursuant to paragraph (1)

15 is charged against the amount that may be paid to

16 such individuals for regular unemployment com17 pensation under State law;

18 ‘‘(4) individuals may receive the reemployment

19 bonus described in paragraph (1) if such individ20 uals—

21 ‘‘(A) were eligible to receive unemployment

22 compensation under the State law for the week

23 preceding the commencement of full-time em24 ployment obtained in accordance with subpara25 graph (C);
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1 ‘‘(B) were identified pursuant to a State

2 profiling system (established in accordance with

3 section 303(j) of the Social Security Act) as in4 dividuals likely to exhaust regular unemploy5 ment compensation;

6 ‘‘(C) obtained full-time employment within

7 a period of time specified under State law, but

8 not in excess of 12 weeks from the date of the

9 filing of the initial claim;

10 ‘‘(D) are employed by employers other

11 than the employers by whom such individuals

12 were employed immediately prior to receiving

13 unemployment compensation under the State

14 law or during the base period;

15 ‘‘(E) retained full-time employment for a

16 period not less than 4 months after obtaining

17 employment in accordance with subparagraph

18 (C);

19 ‘‘(5) the program does not result in any cost to

20 the Unemployment Trust Fund (established by sec21 tion 904(a) of the Social Security Act) in excess of

22 the cost that would be incurred by such State and

23 charged to such Fund if the State had not partici24 pated in such program;
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1 ‘‘(6) a State desiring to conduct such program

2 submits a plan describing the manner in which the

3 requirements of this subsection will be implemented

4 and the Secretary of Labor approves such plan; and

5 ‘‘(7) the program meets such other require6 ments as the Secretary of Labor determines to be

7 appropriate.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) Paragraph (4) of section 3304(a) of such

10 Code is amended by adding at the end thereof the

11 following new subparagraph:

12 ‘‘(G) amounts may be withdrawn for the

13 payment of reemployment bonuses under a re14 employment bonus program (as defined in sec15 tion 3306(v);’’.

16 (2) Subsection (f) of section 3306 of such Code

17 is amended by adding at the end thereof the follow18 ing new paragraph:

19 ‘‘(6) amounts may be withdrawn for the pay20 ment of reemployment bonuses under a reemploy21 ment bonus program (as defined in subsection

22 (v));’’.

23 (3) Section 303(a)(5) of the Social Security Act

24 is amended by adding at the end thereof: ‘‘: Pro25 vided further, That amounts may be withdrawn for
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1 the payment of reemployment bonuses under a reem2 ployment bonus program (as defined in section

3 3306(v) of the Internal Revenue Code of 1986);

4 and’’.

5 SEC. 253. EXTENSION OF SELF-EMPLOYMENT ASSISTANCE

6 PROGRAM.

7 (a) EXTENSION OF PROGRAM.—Paragraph (2) of

8 Section 507(e) of the North American Free Trade Agree9 ment Implementation Act is hereby repealed.

10 (b) CONFORMING AMENDMENTS.—Subsection (e) of

11 section 507 of such Act is further amended by—

12 (1) amending the heading after the subsection

13 designation to read ‘‘EFFECTIVE DATE.—’’, and

14 (2) striking ‘‘(1) EFFECTIVE DATE.—’’.

15 SEC. 254. EFFECTIVE DATE.

16 This part, and the amendments made by this part,

17 shall take effect on the date of enactment of this Act.

18 TITLE III—ONE-STOP CAREER CENTER

19 SYSTEM

20 SEC. 301. STATEMENT OF PURPOSE.

21 It is the purpose of this title to—

22 (1) establish a national program of grants and

23 waivers of Federal statutory and regulatory require24 ments to provide the States with the opportunity, on
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1 a voluntary basis, to develop and implement net2 works of one-stop career centers;

3 (2) provide seed money to encourage the devel4 opment of a flexible, nationwide system of One-Stop

5 Career Centers;

6 (3) promote universal access, by individuals and

7 employers, to a comprehensive menu of quality em8 ployment, education and training information and

9 services;

10 (4) encourage a customer-centered approach to

11 the provision of services, including features to en12 hance customer choice and ensure that the satisfac13 tion of individuals with services received is a primary

14 consideration in the administration of the program;

15 (5) establish a governance structure composed

16 of State, local and Federal partners to ensure com17 mon goals, effective planning, service coordination

18 and oversight of Statewide One-Stop Career Center

19 networks; and

20 (6) provide the States and local areas with in21 creased flexibility in the administration of employ22 ment and training programs in exchange for greater

23 accountability for outcomes.
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1 PART A—COMPONENTS OF VOLUNTARY ONE2 STOP CAREER CENTER SYSTEM

3 SEC. 311. GENERAL REQUIREMENTS.

4 For purposes of receiving a grant or waiver under

5 this title (except as provided in section 333(b)(1)(A)), a

6 one-stop career center system shall include—

7 (1) the establishment and operation of a

8 workforce investment board in accordance with sec9 tion 312;

10 (2) the establishment of one-stop career centers

11 in accordance with the procedures described in sec12 tion 313;

13 (3) the provision of services through the one14 stop career centers in accordance with section 314;

15 (4) the participation of Federal programs in ac16 cordance with section 315;

17 (5) agreements concerning the operation of the

18 one-stop career centers in accordance with section

19 316;

20 (6) quality assurance systems in accordance

21 with section 317; and

22 (7) the establishment and operation of a State

23 Human Resource Investment Council in accordance

24 with section 318.

25 SEC. 312. WORKFORCE INVESTMENT BOARDS.

26 (a) DESIGNATION OF ONE-STOP SERVICE AREAS.—
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1 (1) The Governor shall, after consultation with

2 the State Human Resource Investment Council, des3 ignate one-stop service areas within the State.

4 (2) The one-stop service areas designated pur5 suant to paragraph (1) shall be—

6 (A) the geographic boundaries of the labor

7 market areas within the State, except that no

8 service delivery area or substate area may be

9 divided among two or more areas;

10 (B) the substate areas or consortium of

11 such areas; or

12 (C) the service delivery areas or consor13 tium of such areas.

14 (3) The Governor may not redesignate one-stop

15 service areas more frequently than once every four

16 years.

17 (b) ESTABLISHMENT OF BOARDS.—

18 (1) IN GENERAL.—For each one-stop service

19 area designated under subsection (a), the local elect20 ed officials from such area shall establish a

21 workforce investment board that meets the require22 ments of this subsection.

23 (2) COMPOSITION.—Each workforce investment

24 board shall consist of—
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1 (A) representatives of private sector em2 ployers, who shall constitute a majority of the

3 board and who shall be owners of business con4 cerns, chief executives or chief operating offi5 cers of businesses, or the chief manager of a

6 plant or subdivision of a firm;

7 (B) representatives of organized labor and

8 community-based organizations, who shall con9 stitute not less than 25 percent of the member10 ship of the board and who shall be officers of

11 such organizations;

12 (C) representatives of educational institu13 tions;

14 (D) appropriate community leaders, such

15 as leaders of economic development agencies,

16 human service agencies and institutions, veter17 ans organizations, and entities providing job

18 training; and

19 (E) a local elected official, who shall be a

20 non-voting member.

21 (3) NOMINATIONS.—

22 (A) EMPLOYER REPRESENTATIVES.—(i)

23 The representatives of employers under para24 graph (2)(A) shall be selected from among indi25 viduals nominated by general purpose business
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1 organizations after consulting with, and receiv2 ing recommendations from, other business orga3 nizations in the one-stop service area.

4 (ii) For the purposes of this subparagraph,

5 the term ‘‘general purpose business organiza6 tions’’ means organizations which admit to

7 membership any for-profit business operating

8 within the one-stop service area.

9 (B) LABOR REPRESENTATIVES.—The rep10 resentatives of organized labor under paragraph

11 (2)(B) shall be selected from individuals rec12 ommended by recognized State and local labor

13 federations. If the State or local labor federa14 tion fails to nominate a sufficient number of in15 dividuals to be appointed for such category, in16 dividual workers may be included on the board

17 as labor representatives.

18 (C) ELECTED OFFICIAL.—In any case in

19 which there are two or more units of general

20 local government in the one-stop service area,

21 the local elected officials of such units shall de22 termine which official shall be appointed to the

23 board.

24 (D) OTHER MEMBERS.—The members of

25 the board appointed to represent community-
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1 based organizations under paragraph (2)(B),

2 educational institutions under paragraph

3 (2)(C), and the community leaders appointed

4 under paragraph (2)(D) shall be selected from

5 individuals recommended by interested organi6 zations.

7 (4) APPOINTMENT PROCESS.—(A)(i) In any

8 case in which there is only one unit of general local

9 government within the one-stop service area, the

10 chief elected official of that unit shall appoint mem11 bers to the board from the individuals nominated or

12 recommended under paragraph (3).

13 (ii) In any case in which there are two or more

14 such units of general local government in the one

15 stop service area, the chief elected officials of such

16 units shall appoint members to the board from the

17 individuals so nominated or recommended in accord18 ance with an agreement entered into by such units

19 of general local government. In the absence of such

20 an agreement, the appointments shall be made by

21 the Governor from the individuals so nominated or

22 recommended.

23 (B) The number of members of the board shall

24 be initially determined—
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1 (i) by the chief elected official in the case

2 described in subparagraph (A)(i);

3 (ii) by the chief elected officials in accord4 ance with the agreement in the case described

5 in subparagraph (A)(ii); or

6 (iii) by the Governor in the absence of such

7 agreement.

8 Thereafter, the number of members of the board shall be

9 determined by the board.

10 (C) Members shall be appointed for fixed and

11 staggered terms and may serve until their successors

12 are appointed. Any vacancy in the membership of

13 the board shall be filled in the same manner as the

14 original appointment. Any member of the board may

15 be removed for cause in accordance with procedures

16 established by the board.

17 (5) CHAIRPERSON.—Each workforce investment

18 board shall elect a chairperson, by a majority vote

19 of the members of the board, from among members

20 of the Board who are not the local elected official or

21 heads of public agencies. The term of the chair22 person shall be determined by the board.

23 (6) STAFF.—The Chairperson of each

24 workforce investment board shall appoint staff, who

25 are not concurrently on the staff of any participating
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1 program, to assist such board in carrying out the

2 functions prescribed in this section. Such staff may

3 include an executive director.

4 (7) CONFLICT OF INTEREST.—No member of a

5 workforce investment board shall cast a vote on the

6 provision of services by that member (or any organi7 zation which that member directly represents) or

8 vote on any matter which would provide direct finan9 cial benefit to that member.

10 (8) PRIVATE INDUSTRY COUNCILS.—A private

11 industry council may become a workforce investment

12 board if the local elected official or officials deter13 mine such council is appropriate and such council—

14 (A) meets the requirements of this sub15 section, or

16 (B) is reconstituted to meet the require17 ments of this subsection.

18 (9) STATE HUMAN RESOURCE INVESTMENT

19 COUNCIL.—In any case in which the one-stop service

20 area is a State, the State human resource invest21 ment council or a portion of such council may be re22 constituted to meet the requirements of this sub23 section.

24 (10) CERTIFICATION.—The Governor shall cer25 tify a workforce investment board if the Governor
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1 determines that its composition and appointments

2 are consistent with the provisions of this subsection.

3 Such certification shall be made or denied within 30

4 days after the date on which the list of members and

5 necessary supporting documentation are submitted

6 to the Governor. When the Governor certifies the

7 board, it shall be convened within 30 days by the of8 ficial or officials who made the appointments under

9 paragraph (4).

10 (c) FUNCTIONS OF BOARD.—

11 (1) STRATEGIC PLANNING.—Each workforce in12 vestment board shall develop a strategic plan and

13 provide policy guidance with respect to the workforce

14 development programs that are administered in the

15 one-stop service area. Such strategic plan shall be

16 consistent with the statewide strategic plan devel17 oped by the State human resource investment coun18 cil pursuant to section 318 and shall include:

19 (A) Measurable objectives for improving

20 the quality and effectiveness of workforce prep21 aration, development, and training in the one22 stop service area; and

23 (B) Methods for coordinating the

24 workforce development programs conducted in

25 the one-stop service area to enhance the deliv-
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1 ery of services, including methods to maximize

2 the coverage of such workforce and appropriate

3 population subgroups, and ensure equitable ac4 cess to services by such subgroups.

5 (2) IDENTIFICATION OF OCCUPATIONS IN DE6 MAND AND TRAINING NEEDS.—In carrying out this

7 subsection, the workforce investment board shall uti8 lize available labor market information and other ap9 propriate methods in order to identify the jobs cur10 rently available, the occupations currently in de11 mand, and the occupations likely to be in demand in

12 the future in the one-stop service area; the skill re13 quirements relating to such jobs and occupations;

14 and education and training services in the one-stop

15 service area that are available to assist individuals in

16 acquiring such skills. Such information shall be used

17 in developing the goals of, and activities to be pro18 vided by, the workforce development programs in the

19 labor market area and disseminated to the public

20 through the one-stop career centers established in

21 such area.

22 (3) BUDGETS.—The workforce investment

23 board shall review and approve the budgets of the

24 participating programs described in subparagraphs

25 (A)–(E) of section 315(a), and the budgets for the
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1 one-stop career centers pursuant to section 316(c),

2 and review and provide recommendations regarding

3 the budgets of other participating programs de4 scribed in section 315(b) to encourage coordination

5 and enhance the delivery of services.

6 (4) ASSUMPTION OF FUNCTIONS.—

7 (A) IN GENERAL.—The workforce invest8 ment board shall assume the functions of the

9 private industry council described in section

10 103 of the Job Training Partnership Act and of

11 the job service employer committees.

12 (B) LIMITATION.—The workforce invest13 ment board shall not be the administrative en14 tity for programs under title II of the Job

15 Training Partnership Act and shall not operate

16 any other programs.

17 (5) OVERSIGHT.—The workforce investment

18 board shall conduct oversight of the implementation

19 of the strategic plan and the overall performance of

20 the participating programs described in section 315.

21 (6) CHARTERING OF CENTERS.—Each

22 workforce investment board shall administer the pro23 cedures for the chartering of one-stop career centers

24 described in section 314(c).
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1 SEC. 313. ESTABLISHMENT OF ONE-STOP CAREER CEN2 TERS.

3 (a) IN GENERAL.—The Governor and local elected of4 ficial or officials shall jointly select either the option de5 scribed in subsection (b) or the option described in sub6 section (c) as the method for establishing one-stop career

7 centers for each one-stop service area.

8 (b) CONSORTIUM OPTION.—

9 (1) CONSORTIUM MEMBERS.—One-stop career

10 centers in the one-stop service area shall be adminis11 tered by a consortium that consists of—

12 (A) the Employment Service;

13 (B) the substate grantee or grantees for

14 title I of this Act;

15 (C) the administrative entity or entities for

16 title II of the Job Training Partnership Act;

17 (D) the State agency charged with the ad18 ministration of the State unemployment com19 pensation law, unless such agency chooses not

20 to participate; and

21 (E) one or more additional entities that

22 shall be—

23 (i) any unit of government,

24 (ii) any public or private provider of

25 reemployment, education and training or

26 social services, or
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1 (iii) a consortium of the entities de2 scribed in clauses (i) and (ii).

3 (2) ESTABLISHMENT CRITERIA.—In order to be

4 designated to operate the one-stop career center sys5 tem, the consortium established in accordance with

6 paragraph (1) shall demonstrate to the satisfaction

7 of the workforce investment board the ability of such

8 consortium to—

9 (A) meet the criteria described in clauses

10 (i)–(vi) of subsection (c)(6)(B),

11 (B) provide for customer choice in obtain12 ing the basic services described in section

13 314(a) by—

14 (i) operating two or more centers, and

15 (ii) administering budget resources to

16 reflect, at least in part, the extent to which

17 each center is used by the public, and

18 (C) provide equitable access to centers by

19 segments of the population within the one-stop

20 service area.

21 (3) INTEGRATION OF PROGRAM ADMINISTRA22 TION.—Consortia established in accordance with

23 paragraph (1) shall, in addition to meeting the es24 tablishment criteria described in paragraph (2),

25 identify to the workforce investment board proce-
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1 dures that would be used to promote the integration

2 of the administration of the programs conducted by

3 the members of such consortium, such as procedures

4 to provide for the cross-training of staff, promote

5 the collocation of facilities, and encourage the use of

6 common forms and practices.

7 (4) RENEWAL OF CHARTER.—The Governor

8 and local elected official or officials, in consultation

9 with the workforce investment board, shall review

10 the performance of the consortium and once every

11 four years determine whether to renew the charter

12 of the consortium.

13 (c) MULTIPLE INDEPENDENT OPERATOR OPTION.—

14 (1) MULTIPLE INDEPENDENT OPERATORS.—

15 The workforce investment board shall select, in ac16 cordance with the requirements of this subsection,

17 two or more entities to operate one-stop career cen18 ters in the one-stop service area.

19 (2) ELIGIBLE ENTITIES.—Any entity or consor20 tium of entities located in the one-stop service area

21 may apply, in accordance with the procedures de22 scribed in paragraph (4), to be selected as a one23 stop career center operator. Such entities may in24 clude—

25 (A) Employment Service offices,
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1 (B) career center operators under title I of

2 this Act,

3 (C) service delivery area grant recipients or

4 administrative entities under the Job Training

5 Partnership Act,

6 (D) community colleges and area voca7 tional schools,

8 (E) community-based and other private

9 for-profit and nonprofit organizations, and

10 (F) other interested private and public or11 ganizations and entities.

12 (3) SPECIAL RULE.—If the Employment Serv13 ice, or a consortium including the Employment Serv14 ice, applies to be selected as one-stop career center

15 operator and such Employment Service or consor16 tium meets the selection criteria developed pursuant

17 to paragraph (6), the workforce investment board

18 shall select such Employment Service or consortium

19 to be one of the operators.

20 (4) PUBLICATION OF PROCEDURES.—The

21 workforce investment board, after consultation with

22 the Governor and local elected officials, shall pub23 lish, in a manner that is generally available, infor24 mation to notify organizations and individuals in the

25 one-stop service area of—
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1 (A) the estimated number of one-stop ca2 reer centers needed and proposed number of op3 erators to be selected in the one-stop service

4 area, as determined in accordance with para5 graph (5);

6 (B) the application procedure for any en7 tity or consortium of entities to be selected as

8 such center operator, including when and where

9 such application is to be submitted and what in10 formation such application is to contain;

11 (C) the criteria for selection that will be

12 used, as determined in accordance with para13 graph (6); and

14 (D) other information the workforce in15 vestment board considers relevant to the selec16 tion and administration of such center opera17 tors.

18 (5) NUMBER OF ONE-STOP CENTER OPERA19 TORS.—The workforce investment board shall deter20 mine the number of one-stop career center operators

21 to be selected in the one-stop service area. In deter22 mining the appropriate number of such operators,

23 which shall not be less than two, the workforce in24 vestment board shall take into account—

25 (A) the size of the labor market;
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1 (B) the number of customers who will po2 tentially use the one-stop career centers, includ3 ing unemployed and discouraged workers, em4 ployed workers, economically disadvantaged in5 dividuals, students, out-of-school youth, older

6 workers, veterans, and employers;

7 (C) the number and capabilities of poten8 tial operators; and

9 (D) equitable access to centers by seg10 ments of the population within the one-stop

11 service area.

12 (6) SELECTION CRITERIA.—

13 (A) OBJECTIVE FACTORS.—The workforce

14 investment board, consistent with guidelines is15 sued by the Secretary, shall use objective cri16 teria and performance measures in assessing

17 applications submitted for selection as a one18 stop career center operator.

19 (B) CONTENTS.—An applicant may not be

20 selected as a one-stop career center operator

21 under this title unless such applicant dem22 onstrates to the satisfaction of the workforce in23 vestment board the ability to establish a one24 stop career center or centers that would—
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1 (i) provide the services described in

2 section 314;

3 (ii) utilize automated information sys4 tems to facilitate the exchange of informa5 tion among career centers;

6 (iii) meet the performance standards

7 prescribed pursuant to section 317;

8 (iv) ensure effective fiscal and pro9 gram management;

10 (v) administer the process of referring

11 participants to education and training

12 services in an objective and equitable man13 ner; and

14 (vi) provide services on a nondiscrim15 inatory basis to the population in the one16 stop service area.

17 (7) SINGLE OPERATOR EXCEPTION.—Notwith18 standing the number of operators to be selected pur19 suant to paragraph (5), if only one applicant meets

20 the selection criteria developed pursuant to para21 graph (6), the workforce investment board may se22 lect the single applicant to operate the one-stop ca23 reer center system.

24 (8) PERIOD OF SELECTION.—The workforce in25 vestment board shall select one-stop career center
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1 operators pursuant to the requirements of this sub2 section once every four years.

3 (d) CHARTERS.—The workforce investment board

4 shall issue a charter to each one-stop career center des5 ignated pursuant to this section. Such charter shall—

6 (1) identify the number and location of the one7 stop career centers in the one-stop service area;

8 (2) identify the entity or entities operating the

9 one-stop career centers;

10 (3) provide for the display of the one-stop ca11 reer center national logo developed pursuant to sec12 tion 343(c); and

13 (4) include such other conditions as the

14 workforce investment board determines is appro15 priate.

16 (e) ENFORCEMENT OF HONEST BROKER FUNC17 TIONS.—The workforce investment board shall review, not

18 less than once each program year, the education and train19 ing referral practices of any one-stop career center that

20 is operated by an entity that concurrently provides edu21 cation and training services to participants under this

22 title. If the workforce investment board determines that

23 such center has engaged in a pattern of inappropriate re24 ferrals to the education and training services provided by

25 the operator of such center, the Board may terminate the
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1 charter to operate such center or may require such opera2 tor to cease providing education and training services to

3 participants under this title as a condition for continuing

4 to operate such center.

5 SEC. 314. SERVICES TO BE PROVIDED THROUGH ONE-STOP

6 CAREER CENTERS.

7 (a) BASIC SERVICES.—Each one-stop career center

8 established pursuant to this title shall make available to

9 the public free of charge the following basic services—

10 (1) outreach to make individuals aware of, and

11 encourage the use of, employment and training serv12 ices, including efforts to expand awareness of train13 ing and placement opportunities for limited-English

14 proficient individuals, disadvantaged youth and

15 adults, and individuals with disabilities;

16 (2) intake and orientation to the information

17 and services available through such center;

18 (3) assistance in filing an initial claim for un19 employment compensation;

20 (4) preliminary assessment of the skill levels

21 (including appropriate testing) and service needs of

22 such individuals, which may include such factors as

23 basic skills, occupational skills, prior work experi24 ence, employability, interests, aptitudes, and sup25 portive service needs; and
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1 (5) information relating to local, regional and

2 national labor markets, including—

3 (A) job vacancy listings in such markets,

4 and

5 (B) information relating to local occupa6 tions in demand and the earnings and skill re7 quirements for such occupations;

8 (6) job search assistance, including resum ́e and

9 interview preparation, and workshops;

10 (7) job referral and job placement assistance;

11 (8) information relating to job training and

12 education programs (including student financial as13 sistance), including the eligibility requirements of

14 and services provided by such programs, the avail15 ability and quality of such programs, and referrals

16 to such programs where appropriate;

17 (9) information collected pursuant to the per18 formance standards and customer feedback require19 ments of section 317;

20 (10) assistance in evaluating whether such indi21 viduals are likely to be eligible for any program par22 ticipating in the career center;

23 (11) information relating to programs and pro24 viders of dependent care and other supportive serv25 ices available in the local area;
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1 (12) soliciting and accepting job orders submit2 ted by employers in the one-stop service area, and

3 screening and referring applicants in accordance

4 with such orders.

5 (b) INTENSIVE SERVICES.—Each one-stop career

6 center established pursuant to this title shall make avail7 able to participants in the program described under title

8 I of this Act who are unable to obtain employment through

9 the basic services described in subsection (a), and may

10 make available to other individuals, in accordance with the

11 written agreement developed pursuant to section 316, the

12 following intensive services:

13 (1) Comprehensive and specialized assessments

14 of the skill levels and service needs of individuals,

15 which may include—

16 (A) diagnostic testing and other assess17 ment tools; and

18 (B) in-depth interviewing and evaluation to

19 identify employment barriers and appropriate

20 employment goals.

21 (2) The development of an individual reemploy22 ment plan, which shall identify the employment goal

23 (including in appropriate circumstances, nontradi24 tional employment), appropriate achievement objec-
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1 tives, and the appropriate combination of services

2 for a participant to achieve the employment goal.

3 (3) Group counseling, including peer counseling,

4 which may be available to individuals jointly with

5 their immediate families, and which may include

6 counseling relating to stress management and finan7 cial management and which shall be a basic service

8 for participants in the program established under

9 title I of this Act.

10 (4) Individualized counseling and career plan11 ning, including peer counseling and counseling and

12 planning relating to nontraditional employment op13 portunities.

14 (5) Case management for individuals receiving

15 education, training and supportive services, includ16 ing periodically reviewing the individual’s progress

17 toward achieving his or her employment goal.

18 (6) Job development.

19 (7) Out-of-area job search allowances.

20 (8) Relocation allowances.

21 (9) Assistance in the selection of education and

22 training providers.

23 (10) Assistance in obtaining income support for

24 which the individual is eligible, to enable such indi25 vidual to participate in training.
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1 (11) Supportive services.

2 (12) Follow-up counseling for individuals placed

3 in training or employment.

4 (c) SPECIALIZED EMPLOYER SERVICES.—Each one5 stop career center established pursuant to this title may

6 provide to employers the following services:

7 (1) Customized screening and referral of indi8 viduals for employment.

9 (2) Customized assessment of skill levels of the

10 employer’s current employees.

11 (3) Analysis of the employer’s workforce skill

12 needs.

13 (4) Other specialized employment and training

14 services.

15 (d) ADDITIONAL SERVICES.—Each one-stop career

16 center established pursuant to this title may make avail17 able such additional services as are specified in the written

18 agreement under section 316.

19 (e) FEES.—

20 (1) IN GENERAL.—(A) Except as provided in

21 subparagraph (B), each one-stop career center may

22 charge fees for the services described in subsections

23 (b), (c), and (d) if such fees are approved by the

24 workforce investment board.
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1 (B) No fees may be charged to an individual for

2 any service which such individual is eligible to re3 ceive free of charge under any participating program

4 described in section 315 unless there are no funds

5 available under such program to provide such serv6 ices.

7 (2) PROGRAM INCOME.—All program income re8 ceived by a one-stop career center that is operated

9 by a public or private non-profit entity from the fees

10 collected pursuant to paragraph (1) shall be used to

11 expand or enhance the services provided by such

12 center.

13 SEC. 315. PARTICIPATING PROGRAMS.

14 (a) MANDATORY PROGRAMS.—

15 (1) IN GENERAL.—Subject to the provisions of

16 paragraph (2), the following programs shall make

17 available to participants through the one-stop career

18 centers the services described in section 314(a) that

19 are applicable to such program and shall participate

20 in the operation of such centers as a party to the

21 agreement described in section 316:

22 (A) Programs authorized under title I of

23 this Act.

24 (B) Programs authorized under the Wag25 ner-Peyser Act.
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1 (C) Programs authorized under chapter 41

2 of title 38, United States Code.

3 (D) Programs authorized under title II of

4 the Job Training Partnership Act.

5 (E) Programs authorized under title V of

6 the Older Americans Act.

7 (F) Programs authorized under Federal

8 and State unemployment compensation laws.

9 (2) ADDITIONAL CONDITIONS.—

10 (A) The programs authorized under title I

11 of this Act shall provide the services described

12 in subsections (a) and (b) of section 314

13 through the one-stop career centers, which shall

14 replace the career centers established pursuant

15 to section 118 of this Act.

16 (B) The program authorized under the

17 Wagner-Peyser Act shall provide the applicable

18 services described in subsections (a) and (b) of

19 section 314 only through the one-stop career

20 centers.

21 (C) The program authorized under chapter

22 41 of title 38, United States Code, shall make

23 available through the one-stop career centers

24 the applicable services described in subsections

25 (a) and (b) of section 314, and may, in addi-
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1 tion, provide such services through other loca2 tions.

3 (D) The programs described under sub4 paragraphs (C), (D), (E), and (F) of paragraph

5 (1) may, in addition to providing applicable

6 services under section 314(a) through the one7 stop career centers, provide such services

8 through other locations and service providers.

9 (E) The programs described in paragraph

10 (1) may provide additional services through the

11 one-stop career centers in accordance with the

12 written agreement described in section 316.

13 (b) VOLUNTARY.—In addition to the programs de14 scribed in subsection (a), other human resource programs

15 may provide services through the one-stop career centers

16 and participate in the operation of such centers as a party

17 to the agreement described in section 316 if the workforce

18 investment board, local elected official or officials, the

19 Governor, and other participating programs approve such

20 participation. Such programs may include programs au21 thorized under.

22 (1) part F of title IV of the Social Security Act

23 (the Job Opportunities and Basic Skills (JOBS)

24 program);
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1 (2) section 6(d)(4) of the Food Stamp Act of

2 1977 (the Food Stamp Employment and Training

3 Program);

4 (3) part B of title IV of the Job Training Part5 nership Act (Job Corps);

6 (4) programs authorized under title IV–C of the

7 Job Training Partnership Act;

8 (5) the Carl D. Perkins Vocational and Applied

9 Technology Education Act;

10 (6) the Adult Education Act;

11 (7) the Vocational Rehabilitation Act; and

12 (8) the School-to-Work Opportunities Act.

13 SEC. 316. OPERATING AGREEMENTS.

14 (a) IN GENERAL.—The one-stop career center opera15 tors selected pursuant to section 313 shall enter into a

16 written agreement with the workforce investment board

17 and participating programs described in section 315 con18 cerning the operation of the one-stop career centers. Such

19 agreement shall be subject to the approval of the local

20 elected official and the Governor, who shall oversee the

21 development of such agreement, ensure that the agree22 ment meets the requirements of this section, and monitor

23 the implementation of such agreement.

24 (b) CONTENTS.—The written agreement required

25 under subsection (a) shall contain the following:
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1 (1) The services to be provided by the centers,

2 consistent with section 314, and the extent to which

3 participating programs will provide services to pro4 gram participants through such centers, consistent

5 with section 315.

6 (2) Methods for referral of individuals by the

7 one-stop career centers to the appropriate services

8 and programs.

9 (3) The financial and nonfinancial contributions

10 to be made to the centers by each participating pro11 gram, which shall be based on factors including the

12 number of participants served by the centers from

13 each participating program and the quality of serv14 ices provided.

15 (4) The financial liability of the respective par16 ties relating to the funds contributed by the partici17 pating programs.

18 (5) The financial contributions to be made for

19 the administration of the workforce investment

20 board by each participating program.

21 (6) Methods of administration, including provi22 sions for monitoring and oversight of the centers

23 and of this agreement.

24 (7) A description of how services are to be pro25 vided by the centers, such as the methods and ap-
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1 propriate test instruments to be used to assess the

2 skill levels of individuals.

3 (8) The procedures to ensure the utilization of

4 a common local job bank.

5 (9) The procedures to be used to ensure compli6 ance with the statutory and regulatory requirements

7 of the participating programs.

8 (10) The duration of the agreement and the

9 procedures for amending the agreement during its

10 term.

11 (11) Such other provisions, consistent with the

12 requirements of this title, that the parties deem ap13 propriate.

14 (c) ONE-STOP CAREER CENTER AND BOARD BUDG15 ETS.—The parties to the written agreement described

16 under subsection (a) shall supplement the written agree17 ment by developing an annual budget for the one-stop ca18 reer centers and the workforce investment board. The

19 budget for the board shall be subject to the approval of

20 the local elected official. The budget for the career centers

21 shall be subject to approval of the local elected official and

22 the Governor.

23 SEC. 317. QUALITY ASSURANCE SYSTEMS.

24 (a) PERFORMANCE STANDARDS.—
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1 (1) IN GENERAL.—The Secretary, after con2 sultation with the Governors, workforce investment

3 boards, and one-stop career center operators, shall

4 prescribe performance standards relating separately

5 to the one-stop career centers and the workforce in6 vestment boards established under this title. Such

7 standards shall be based on factors the Secretary de8 termines are appropriate, which may include:

9 (A) In the case of one-stop career cen10 ters—

11 (i) placement, retention and earnings

12 of participants in unsubsidized employ13 ment, including—

14 (I) wages and benefits at a speci15 fied period after termination from the

16 program,

17 (II) full-time and part-time em18 ployment, and

19 (III) comparability of wages at a

20 specified period after termination

21 from the program with wages prior to

22 participation in the program;

23 (ii) the provision of services to hard24 to-serve populations, such as individuals

25 who are basic skills deficient, school drop-
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1 outs, individuals with disabilities, older

2 workers with obsolete skills, economically

3 disadvantaged individuals, and others who

4 face serious barriers to employment;

5 (iii) acquisition of skills pursuant to a

6 skill standards and skill certification sys7 tem endorsed by the National Skill Stand8 ards Board established under the Goals

9 2000: Educate America Act;

10 (iv) satisfaction of participants with

11 services provided and the employment out12 comes;

13 (v) satisfaction of employers with job

14 performance of individuals placed; and

15 (vi) measures of the cost efficiency of

16 the one-stop career centers.

17 (B) In the case of the workforce invest18 ment boards—

19 (i) job openings received from employ20 ers, including the proportion of employers

21 in the one-stop service area that list jobs

22 with the one-stop career centers;

23 (ii) job openings filled through the

24 one-stop career centers; and
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1 (iii) the overall performance of the ca2 reer centers in the one-stop service area.

3 (2) ADJUSTMENTS.—Each Governor shall,

4 within parameters established by the Secretary, pre5 scribe adjustments to the performance standards

6 prescribed under paragraph (1) for the one-stop ca7 reer centers and workforce investment boards estab8 lished in the State based on—

9 (A) specific economic, geographic and de10 mographic factors in the State and in one-stop

11 service areas within the State; and

12 (B) the characteristics of the population to

13 be served, including the demonstrated difficul14 ties in serving special populations.

15 (3) FAILURE TO MEET STANDARDS.—

16 (A) UNIFORM CRITERIA.—The Secretary

17 shall establish uniform criteria for determining

18 whether a one-stop career center or workforce

19 investment board fails to meet performance

20 standards under this section.

21 (B) TECHNICAL ASSISTANCE.—The Gov22 ernor shall provide technical assistance to one23 stop career centers and workforce investment

24 boards failing to meet performance standards
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1 under the uniform criteria established under

2 paragraph (1).

3 (C) REPORT ON PERFORMANCE.—Each

4 Governor shall include in the report to the Sec5 retary the final performance standards and per6 formance for each one-stop career center and

7 workforce investment board within the State,

8 along with the technical assistance planned and

9 provided as required under subparagraph (B).

10 (D) REVOCATION OF CHARTER.—If a one11 stop career center continues to fail to meet such

12 performance standards for two consecutive pro13 gram years, the Governor shall notify the Sec14 retary and the one-stop career center of the

15 continued failure, and the workforce investment

16 board shall—

17 (i) in the case of a one-stop career

18 center selected pursuant to the multiple

19 independent operator option, terminate the

20 operating agreement and select another en21 tity as the one-stop career center consist22 ent with the procedures described in sec23 tion 313(b); and

24 (ii) in the case of a one-stop career

25 center operated under the consortium op-
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1 tion, terminate the operating agreement to

2 operate such center and to select another

3 entity as a one-stop career center, consist4 ent with the procedures described in sec5 tion 313(b).

6 (E) CORRECTIVE ACTION FOR BOARDS.—If

7 a workforce investment board continues to fail

8 to meet such performance standards for two

9 consecutive program years, the Governor shall

10 notify the Secretary and the workforce invest11 ment board of the continued failure, and

12 shall—

13 (i) replace the members of such board,

14 (ii) direct the board to replace staff,

15 (iii) direct the board to replace the

16 chairperson, or

17 (iv) take such other action as the Gov18 ernor determines is appropriate.

19 (F) APPEAL.—(i) A one-stop career center

20 operator that is the subject of a revocation

21 under subparagraph (D) or a workforce invest22 ment board that is subject to sanctions under

23 subparagraph (E) may, within thirty days after

24 receiving notice thereof and pursuant to criteria

25 established by the Secretary, appeal to the Gov-
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1 ernor to rescind such action. The Governor

2 shall issue a decision on the appeal within thir3 ty days of its receipt.

4 (ii) A one-stop career center operator or

5 workforce investment board that receives an ad6 verse decision under an appeal filed pursuant to

7 clause (i) may, within thirty days, appeal to the

8 Secretary. The Secretary shall issue a decision

9 on the appeal within thirty days of its receipt.

10 (b) CUSTOMER FEEDBACK.—

11 (1) METHODS.—Each workforce investment

12 board shall establish methods for obtaining, on a

13 regular basis, information from individuals and em14 ployers who have received services through a one15 stop career center regarding the effectiveness and

16 quality of such services. Such methods may include

17 the use of surveys, interviews, focus groups, and

18 other techniques.

19 (2) ANALYSIS AND DISSEMINATION.—Each

20 workforce investment board shall analyze the infor21 mation obtained pursuant to paragraph (1) on a reg22 ular basis and provide a summary of such informa23 tion accompanied by such analysis to the one-stop

24 career center for use in improving the quality of

25 services provided under this title.
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1 SEC. 318. STATE HUMAN RESOURCE INVESTMENT COUNCIL.

2 (a) IN GENERAL.—Each State shall establish a State

3 human resource investment council that meets the require4 ments of title VII of the Job Training Partnership Act.

5 In addition to carrying out the functions required under

6 paragraphs (1)–(3) of section 701 of such Act, the Council

7 shall—

8 (1) identify the human investment needs in the

9 State and recommend to the Governor goals for

10 meeting such needs;

11 (2) recommend to the Governor goals for the

12 development and coordination of the human resource

13 system in the State;

14 (3) prepare and recommend to the Governor a

15 strategic plan to accomplish the goals developed pur16 suant to paragraphs (2) and (3); and

17 (4) monitor the implementation of and evaluate

18 the effectiveness of the strategic plan prepared pur19 suant to paragraph (3).

20 (b) ONE-STOP FUNCTION.—In addition to the func21 tions described in subsection (a), the council shall advise

22 the Governor with respect to all aspects of the develop23 ment and implementation of the one-stop career center

24 system authorized under this title, including—

25 (1) assessing the needs of the State with regard

26 to—
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1 (A) current and projected demand for

2 workers by occupation;

3 (B) skill levels of the workforce and the

4 needs of business for a skilled workforce;

5 (C) economic development needs of the

6 State;

7 (D) the type and availability of workforce

8 preparation and development programs in the

9 State;

10 (2) providing advice to the Governor on the des11 ignation of one-stop service areas within the State;

12 (3) developing measures of effectiveness for the

13 workforce investment boards;

14 (4) facilitating the provision through appro15 priate State agencies of grants and technical assist16 ance to workforce investment boards;

17 (5) developing a mechanism for waiving State

18 rules and provisions of law with respect to workforce

19 investment programs; and

20 (6) developing a strategy to collect and utilize

21 information on the effectiveness of workforce invest22 ment programs, and that of individual service pro23 viders, and to share such information with cus24 tomers of such programs.
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1 PART B—GRANTS AND WAIVERS TO PROMOTE

2 THE DEVELOPMENT AND IMPLEMENTATION

3 OF ONE-STOP CAREER CENTER SYSTEM

4 SEC. 331. STATE PLANNING AND DEVELOPMENT GRANTS.

5 (a) PROGRAM AUTHORIZED.—The Secretary is au6 thorized to establish a program of competitive grants to

7 States to assist in the planning and development of a com8 prehensive Statewide network of one-stop career centers.

9 (b) APPLICATION.—(1) IN GENERAL.—Any State de10 siring a grant under this section shall submit an applica11 tion to the Secretary at such time, in such manner, and

12 containing such information as the Secretary may reason13 ably require.

14 (2) CONTENTS OF APPLICATION.—The application

15 for a grant submitted pursuant to paragraph (1) shall at

16 a minimum include—

17 (A) a timetable and estimate of the amount of

18 funds needed to complete the planning and develop19 ment necessary to implement a Statewide system of

20 one-stop career centers, which includes the compo21 nents described in part A; and

22 (B) a description of the manner in which the

23 Governor, local elected officials, community and

24 business leaders, representatives of employees, rep25 resentatives of voluntary organizations, representa26 tives of the programs described in section 315, serv-
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1 ice providers and other interested organizations and

2 individuals will work together in the planning and

3 development of a one-stop career center system.

4 (c) USE OF FUNDS.—Funds awarded under this sec5 tion may be used to carry out the following activities:

6 (1) Identifying and establishing an appropriate

7 State structure to administer the one-stop career

8 center network within the State.

9 (2) Identifying and establishing broad-based

10 partnerships among employers, labor, education,

11 State and local government, and community-based

12 organizations to participate in the design, develop13 ment, and administration of a one-stop career center

14 system.

15 (3) Developing a plan to establish a State

16 Human Resource Investment Council and local

17 workforce investment boards.

18 (4) Developing the process for chartering one19 stop career centers.

20 (5) Supporting local one-stop career center

21 planning and development activities to provide guid22 ance in the development of a one-stop career center

23 system.

24 (6) Initiating pilot programs for testing key

25 components of State program design, such as de-
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1 signing and testing common intake forms for partici2 pating programs.

3 (7) Analyzing State and local labor markets

4 and the operation of the current labor exchange and

5 labor market intermediaries, to inform the design of

6 the new system.

7 (8) Analyzing current statutory and regulatory

8 impediments to the establishment of a one-stop ca9 reer center system, and preparing requests to waive

10 statutory or regulatory requirements.

11 (9) Preparing the plan required for submission

12 of an application for an Implementation Grant

13 under section 332.

14 (10) Other appropriate activities.

15 SEC. 332. STATE IMPLEMENTATION GRANTS.

16 (a) PROGRAM AUTHORIZED.—The Secretary is au17 thorized to establish a program of competitive grants to

18 States to assist in the implementation of a comprehensive

19 Statewide system of one-stop career centers.

20 (b) APPLICATION.—

21 (1) IN GENERAL.—Any State desiring a grant

22 under this section shall, with the agreement of the

23 local elected officials from the one-stop service areas

24 identified in paragraph (3)(C) that will immediately

25 begin implementation of the one-stop career center
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1 system, submit an application to the Secretary at

2 such time, in such manner, and containing such in3 formation as the Secretary may reasonably require.

4 (2) CONTENTS OF APPLICATION.—The applica5 tion for a grant submitted pursuant to paragraph

6 (1) shall, at a minimum, include—

7 (A) a plan for a comprehensive, Statewide

8 one-stop career center system that includes the

9 components described in part A;

10 (B) a request in accordance with section

11 333, if any, for one or more waivers of statu12 tory or regulatory requirements relating to the

13 programs described in section 333(c);

14 (C) such other information as the Sec15 retary may require.

16 (3) CONTENTS OF STATE PLAN.—A State plan

17 shall—

18 (A) designate a fiscal agent to receive and

19 be accountable for implementation grant funds

20 awarded under this section and describe how

21 the State intends to manage the funds awarded

22 under this section at the State and local levels;

23 (B) identify the one-stop service areas that

24 have been designated within the State pursuant

25 to section 302(a);
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1 (C) identify the one-stop service areas in

2 the State that will immediately begin implemen3 tation of the one-stop career center system, and

4 the schedule for implementation for the remain5 ing areas of the State;

6 (D) identify the workforce development

7 programs that will participate in the one-stop

8 career centers, consistent with section 315;

9 (E) describe the method by which one-stop

10 career centers will be selected, consistent with

11 section 313;

12 (F) describe the performance standards

13 that the State intends to meet;

14 (G) describe the procedure by which the

15 Governor, local elected officials, officials admin16 istering participating programs, and other ap17 propriate officials, will collaborate in the imple18 mentation of the statewide one-stop career cen19 ter system;

20 (H) describe the manner in which the

21 State has obtained and will continue to obtain

22 the active and continued involvement, in the

23 statewide one-stop career center system, of em24 ployers (including small business) and other in25 terested parties such as secondary schools and
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1 post-secondary educational institutions (or re2 lated agencies), business associations, employ3 ees, labor organizations or associations of such

4 organizations, community-based organizations,

5 economic development organizations, rehabilita6 tion agencies and organizations, registered ap7 prenticeship agencies, vocational education

8 agencies, State or regional cooperative edu9 cation associations, human service agencies, and

10 education, employment and training service pro11 viders;

12 (I) describe the manner in which the State

13 will ensure equitable opportunities for job14 seekers, students, and employers in the State to

15 receive services from one-stop career centers;

16 (J) if the State has already undertaken a

17 one-stop service initiative, describe how such

18 initiative will be integrated into the Statewide

19 one-stop career center system under this title;

20 (K) describe the administrative and man21 agement systems that will be used in the State;

22 and

23 (L) describe the resources that the State

24 intends to employ in maintaining the one-stop
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1 career center system when funds under this

2 title are no longer available.

3 (c) FACTORS TO BE AWARDED SPECIAL CONSIDER4 ATION.—An applicant shall be awarded special consider5 ation in the evaluation of a grant application under this

6 section with respect to the following factors:

7 (1) The extent to which the one-stop service

8 areas in the State are based on labor market areas.

9 (2) The number of Federal programs that will

10 participate in the one-stop career centers.

11 (3) The extent to which the Job Opportunities

12 and Basic Skills program (commonly referred to as

13 JOBS) authorized under title IV–F of the Social Se14 curity Act and programs authorized under the Carl

15 Perkins Vocational and Applied Technology Edu16 cation Act will participate in the one-stop career

17 centers.

18 (4) The extent to which a State has already im19 plemented the components of the one-stop career

20 center system described in part A.

21 (5) The proportion of population of the State

22 that is covered by the one-stop service areas that

23 have agreed to immediately implement the one-stop

24 career center system.
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1 (6) The extent to which a State demonstrates

2 a commitment to ensuring that the one-stop career

3 center operations in the State will enhance access to

4 the services described in section 314(a) through sup5 plementary methods such as kiosks based in shop6 ping centers, libraries, community colleges and other

7 community organizations, and through personal tele8 phones or computer lines.

9 (d) REVIEW OF APPLICATIONS.—The Secretary shall

10 determine whether to approve the State’s plan, and, if

11 such determination is affirmative, further determine

12 whether to take one or a combination of the following ac13 tions—

14 (1) award an implementation grant;

15 (2) approve the State’s request, if any, for a

16 waiver in accordance with the procedures in section

17 333 of this Act; and

18 (3) inform the State of the opportunity to apply

19 for further development funds, except that further

20 development funds may not be awarded to a State

21 that receives an implementation grant.

22 (e) LIMITATION.—No funds provided pursuant to a

23 grant under this section may be expended to construct new

24 buildings.
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1 (f) DURATION OF GRANTS.—Grants awarded under

2 this section shall be for a one year period and shall be

3 renewable for each of the two succeeding fiscal years if

4 the Secretary determines that the State is making satis5 factory progress in the implementation of the statewide

6 one-stop career center plan.

7 SEC. 333. WAIVER OF FEDERAL STATUTORY AND REGU8 LATORY REQUIREMENTS.

9 (a) STATE REQUEST FOR WAIVER.—A State may, at

10 any point during the development or implementation of

11 a one-stop career center system, request a waiver of one

12 or more statutory or regulatory provisions from the Sec13 retary in order to carry out the purposes of this title.

14 (b) WAIVER CRITERIA.—(1) Except as provided in

15 subsection (d), the Secretary may waive any requirement

16 of any statute listed in subsection (c)(1) or regulations

17 issued under such statute, or, with the concurrence of the

18 Director of the Office of Management and Budget, any

19 circular listed in subsection (c)(2) or regulations issued

20 under such circular, for any State that requests such a

21 waiver—

22 (A) if such State submits a plan for a com23 prehensive, statewide one-stop career center system

24 that—

25 (i) either—
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1 (I) includes the components described

2 in part A; or

3 (II) while not including all of the com4 ponents described in part A, demonstrates

5 that such one-stop system will substan6 tially achieve the objectives of this title;

7 and

8 (ii) includes such other information as the

9 Secretary may reasonably require, such as the

10 information required under a State plan pursu11 ant to section 332(b)(3);

12 (B) if, and only to the extent that, the Sec13 retary determines that such requirement impedes the

14 ability of the State to carry out the purposes of this

15 title;

16 (C) if the State waives, or agrees to waive, simi17 lar requirements of State law; and

18 (D) if the State—

19 (i) has provided a notice and an oppor20 tunity for the State council or State Human

21 Resource Investment Council and other inter22 ested entities and individuals to comment on

23 the State’s proposal to seek a waiver; and

24 (ii) has submitted the comments required

25 pursuant to clause (i) to the Secretary.
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1 (2) The Secretary shall act promptly on any request

2 submitted pursuant to paragraph (1).

3 (3) Each waiver approved pursuant to this subsection

4 shall be for a period not to exceed four years, except that

5 the Secretary may extend such period if the Secretary de6 termines that the waiver has been effective in enabling the

7 State to carry out the purposes of this title.

8 (c) INCLUDED PROGRAMS.—

9 (1) STATUTES.—The statutes subject to the

10 waiver authority of this section are as follows—

11 (A) title I of this Act;

12 (B) the Job Training Partnership Act;

13 (C) the Wagner-Peyser Act;

14 (D) title V of the Older Americans Act;

15 (E) title III of the Social Security Act; and

16 (F) chapter 41 of title 38, United States

17 Code.

18 (2) CIRCULARS AND RELATED REGULATIONS.—

19 The following circulars promulgated by the Office of

20 Management and Budget subject to the waiver au21 thority of this section are as follows—

22 (A) A–87, relating to cost principles for

23 State and local governments;
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1 (B) A–102, relating to grants and coopera2 tive agreements with State and local govern3 ments;

4 (C) A–122, relating to non-profit organiza5 tions;

6 (D) 29 CFR 97, uniform administrative

7 regulations for grants and cooperative agree8 ments to State and local governments.

9 (d) WAIVERS NOT AUTHORIZED.—The Secretary of

10 Labor may not waive any statutory or regulatory require11 ment of the programs listed in subsection (b) relating to—

12 (1) the basic purposes or goals of the affected

13 programs;

14 (2) maintenance of effort;

15 (3) the formula allocation of funds under the

16 affected programs;

17 (4) the eligibility of an individual for participa18 tion in the affected programs;

19 (5) public health or safety, labor standards,

20 civil rights, occupational safety and health, or envi21 ronmental protection;

22 (6) prohibitions or restrictions relating to the

23 construction of buildings or facilities.

24 (e) TERMINATION OF WAIVERS.—The Secretary shall

25 periodically review the performance of any State for which
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1 the Secretary has granted a waiver and shall terminate

2 the waiver under this section if the Secretary determines

3 that the performance of the State affected by the waiver

4 has been inadequate to justify a continuation of the waiv5 er, or the State fails to waive similar requirements of State

6 law as required or agreed to in accord with subsection

7 (b)(1)(C).

8 (f) PLAN FOR GENERAL WAIVER OF CIRCULAR PRO9 VISIONS.—

10 (1) DEVELOPMENT OF PLAN.—If the Secretary

11 determines there is sufficient information available,

12 based on applications received pursuant to this sec13 tion or other information, to identify provisions of

14 the circulars or related regulations listed in sub15 section (c)(2) that would consistently impede the im16 plementation of a one-stop career center system, the

17 Secretary shall submit a plan to the Director of the

18 Office of Management and Budget to authorize the

19 Secretary to grant a general waiver of such provi20 sions for areas implementing one-stop career center

21 systems.

22 (2) APPROVAL OF PLAN.—The Director of the

23 Office of Management and Budget may approve the

24 plan submitted pursuant to paragraph (1) and au25 thorize the Secretary to grant general waivers of the
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1 provisions of the circulars and related regulations in

2 accordance with such plan if the Director determines

3 such plan would not jeopardize the integrity of Fed4 eral funds and would be consistent with the objec5 tives of this title.

6 SEC. 334. POOLING OF ADMINISTRATIVE RESOURCES.

7 (a) SUBMISSION OF PLAN.—

8 (1) IN GENERAL.—At any point in the imple9 mentation of a one-stop career center system, a

10 State may, on behalf of one or more one-stop service

11 areas in the State, submit a plan to the Secretary

12 for the pooling of administrative funds available to

13 such area under two or more of the programs de14 scribed in section 315(a).

15 (2) COMPONENTS OF POOLING.—Under a plan

16 submitted pursuant to paragraph (1), each partici17 pating program described in section 315(a) may pro18 pose to transfer administrative funds to the one-stop

19 career center system and to allocate the amount

20 transferred to the costs of administration under such

21 program at the time of such transfer. Pursuant to

22 such plan, further allocation of the expenditure of

23 such funds to the participating program shall not be

24 required subsequent to the transfer of the funds to

25 the one-stop career center system. Administrative
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1 funds that are transferred under such plan shall

2 only be expended for the costs of administering al3 lowable activities under the one-stop career center

4 system.

5 (b) APPROVAL OF PLAN.—Notwithstanding section

6 1301 of title 31, United States Code, or any other provi7 sion of law, the Secretary may approve a plan for the pool8 ing of administrative funds submitted pursuant to sub9 section (a) if the Secretary determines such plan would

10 not jeopardize the administration of the participating pro11 grams transferring such funds and would facilitate the im12 plementation of the one-stop career center system. After

13 approval of such plan, the Secretary shall regularly review

14 the performance of the one-stop service areas operating

15 under such plans and shall rescind such approval if the

16 Secretary determines that the performance of the one-stop

17 service area has been inadequate to justify continuation

18 of the plan or there has been a significant adverse effect

19 on the participating programs.

20 (c) SESA REAL PROPERTY.—

21 (1) IN GENERAL.—Upon the approval of the

22 Governor, real property in which, as of July 1, 1995,

23 equity has resulted from funds provided under title

24 III of the Social Security Act, section 903(c) of the

25 Social Security Act (commonly referred to as the
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1 Reed Act), or the Wagner-Peyser Act, may be used

2 for the purposes of a one-stop career center.

3 (2) LIMITATION.—Unless otherwise provided in

4 a plan approved pursuant to subsection (b), subse5 quent to the commencement of the use of the prop6 erty described in paragraph (1) for the purposes of

7 a one-stop career center, funds provided under the

8 provisions of law described in paragraph (1) may

9 only be used to acquire further equity in such prop10 erty, or to pay operating and maintenance expenses

11 relating to such property, in proportion to the extent

12 of the use of such property attributable to the activi13 ties authorized under such provisions of law.

14 PART C—ADDITIONAL ACTIVITIES IN SUPPORT

15 OF ONE-STOP CAREER CENTER SYSTEMS

16 SEC. 351. CUSTOMER SERVICE COMPACT.

17 The Secretary shall establish a process with each

18 State implementing a one-stop career center system under

19 this title, which shall include an annual meeting, to pro20 mote the development of a customer service compact

21 among the parties administering such system. Such com22 pact shall include an informal agreement between the Sec23 retary, Governor, each workforce investment board, and

24 each one-stop career center relating to—
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1 (1) the shared goals and values that will govern

2 the administration of the system;

3 (2) the respective roles and responsibilities of

4 each party in enhancing the provision of services to

5 participants, including ensuring that such services

6 are tailored to the particular needs of participants in

7 each local area;

8 (3) methods for ensuring that the satisfaction

9 of participants with the services received is a pri10 mary consideration in the administration of the sys11 tem; and

12 (4) such other matters as the parties determine

13 are appropriate.

14 SEC. 352. ADDITIONAL STATE RESPONSIBILITIES.

15 (a) IN GENERAL.—Each State implementing a one16 stop career center system under this title shall be respon17 sible for developing and operating administrative and

18 management systems that promote the effective operation

19 of the one-stop career center system.

20 (b) MONITORING.—Each State implementing a one21 stop career center system under this title shall monitor

22 the compliance of workforce investment boards within the

23 State with the requirements of this title.

24 (c) TECHNICAL ASSISTANCE.—Each State imple25 menting a one-stop career center system under this title
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1 shall provide such technical assistance as deemed nec2 essary to assist the workforce investment boards to carry

3 out their responsibilities under this title.

4 SEC. 353. ADDITIONAL FEDERAL RESPONSIBILITIES.

5 (a) OVERSIGHT.—The Secretary is authorized to

6 monitor all recipients of financial assistance under this

7 title to determine whether they are complying with the

8 provisions of this title.

9 (b) CAPACITY BUILDING AND TECHNICAL ASSIST10 ANCE.—The Secretary shall provide staff training and

11 technical assistance to States, workforce investment

12 boards, one-stop career centers, communities, business

13 and labor organizations, service providers, industry con14 sortia, and other entities, to enhance their capacity to de15 velop and implement effective one-stop career center sys16 tems. Such activities shall be integrated with the activities

17 of the Capacity Building and Information Dissemination

18 Network established under section 453 of the Job Train19 ing Partnership Act.

20 (c) NATIONAL LOGO.—The Secretary shall develop a

21 national logo and name for the purposes of identifying all

22 one-stop career centers as part of a nationwide workforce

23 security system. The purpose of this national identification

24 shall be to enable individuals to more readily identify and

25 access one-stop career centers in any State in any location.
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1 (d) EVALUATION.—

2 (1) IN GENERAL.—The Secretary shall provide

3 for the continuing evaluation of programs conducted

4 under this title, including the cost-effectiveness of

5 programs in achieving the purposes of this title.

6 (2) TECHNIQUES.—

7 (A) METHODS.—Evaluations conducted

8 under paragraph (1) shall utilize recognized

9 statistical methods and techniques of the behav10 ioral and social sciences, including methodolo11 gies that control for self-selection, where fea12 sible.

13 (B) ANALYSIS.—Such evaluations may in14 clude cost benefit analyses of programs, and

15 analyses of the impact of the programs on par16 ticipants and the community, the extent to

17 which programs meet the needs of various de18 mographic groups, and the effectiveness of the

19 delivery systems used by the various programs.

20 PART D—EFFECTIVE DATE

21 SEC. 371. EFFECTIVE DATE.

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

23 (b), the provisions of this title shall take effect on July

24 1, 1995.
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1 (b) PERFORMANCE STANDARDS.—The performance

2 standards established pursuant to section 317(a) shall

3 take effect on July 1, 1996.

4 TITLE IV—NATIONAL LABOR MARKET

5 INFORMATION SYSTEM

6 SEC. 401. PURPOSE.

7 The purpose of this title is to provide for the develop8 ment of a national labor market information system that

9 will provide locally-based, accurate, up-to-date, easily ac10 cessible, user-friendly labor market information, includ11 ing—

12 (1) comprehensive information on job openings,

13 labor supply, occupational trends, current and pro14 jected wage rates by occupation, skill requirements,

15 and the location of and performance of programs de16 signed to provide requisite skills; and

17 (2) labor market data necessary to assist public

18 officials, economic development planners, education

19 planners, and public and private training entities in

20 the effective allocation of resources.

21 SEC. 402. NATIONAL STRATEGY.

22 (a) IN GENERAL.—The Secretary shall develop, in co23 ordination with other Federal, State and local entities, a

24 strategy to establish a nationwide system of local labor

25 market information that accomplishes the purposes de-
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1 scribed in section 401 and carries out the activities de2 scribed in sections 403 and 404. In addition, such strategy

3 shall be designed to fulfill the labor market information

4 requirements of the Job Training Partnership Act, title

5 I of this Act, the Wagner-Peyser Act, the School-to-Work

6 Opportunities Act, the Carl Perkins Vocational and Ap7 plied Technology Act, and other appropriate Federal pro8 grams.

9 (b) IMPLEMENTATION.—In implementing the strat10 egy described in subsection (a), the Secretary is authorized

11 to enter into contracts and intergovernmental cooperative

12 agreements, award grants, and foster the creation of pub13 lic-private partnerships, using funds authorized under this

14 title and funds otherwise available for such purposes. In

15 addition, the Secretary may conduct research and dem16 onstration projects to assist in such implementation.

17 SEC. 403. COMPONENTS OF SYSTEM.

18 (a) IN GENERAL.—The Secretary, in cooperation

19 with Federal, State and local entities, and public-private

20 partnerships, shall develop a national labor market infor21 mation system that makes available the following informa22 tion—

23 (1) information from both public and private

24 sources on the local economy, including current em-
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1 ployment opportunities and trends by industry and

2 occupation;

3 (2) automated listings of job openings and job

4 candidates in the local, State, and national labor

5 market;

6 (3) growth projections by industry and growth

7 and replacement need projections by occupation and

8 occupational cluster for national, State and local

9 labor markets;

10 (4) current supply of labor available with spe11 cific occupational skills and experience including cur12 rent workers, job seekers and training completers;

13 (5) automated screening systems to permit easy

14 determination of candidate eligibility for funding and

15 other assistance in job training, job search, income

16 support, supportive services and other reemployment

17 services;

18 (6) consumer reports on local education and

19 training providers including student satisfaction with

20 programs, employer satisfaction with graduates,

21 placement rates, wages at placement, and other ele22 ments of program quality;

23 (7) results of customer satisfaction measures

24 for the career centers and one-stop career centers

25 and other providers of reemployment services;
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1 (8) national, State and substate profiles of in2 dustries, including skill requirements, general wage

3 and benefit information, and typical distributions of

4 occupations within the industry;

5 (9) profiles of industries in a local labor market

6 including nature of the work performed, skill and ex7 perience requirements, specific occupations, wage,

8 hour and benefit information, pattern of hiring, and

9 (10) automated occupational and career infor10 mation and exploration systems, which incorporate

11 local labor market information, employer or industry

12 profiles, listings of education, training and other re13 employment service providers including program

14 quality and customer satisfaction data, and available

15 automated listings of current openings.

16 (b) TECHNICAL STANDARDS.—The Secretary shall

17 promulgate standards necessary to promote efficient ex18 change of information between the local, State and na19 tional levels, including such standards as may be required

20 to ensure that data are comparable. Such standards shall

21 be designed to ensure that there is universal access to

22 local, State and national data. In issuing such technical

23 standards, the Secretary shall meet the requirements of

24 chapter 35 of title 44, United States Code, and insure co-
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1 ordination with other appropriate Federal standards es2 tablished by the Bureau of Labor Statistics.

3 (c) CONSUMER REPORTS.—The Secretary, in con4 sultation with the Secretary of Education and other appro5 priate Federal agencies, and State and local governments,

6 shall set standards for the required reports and create a

7 mechanism for collection and dissemination of the

8 consumer reports described in subsection (a)(6).

9 (d) EVALUATION.—The Secretary shall provide for

10 the evaluation of the procedures, products and services

11 under this title, including their cost-effectiveness and the

12 level of customer satisfaction. Such evaluations may in13 clude analyses of the precision of estimates produced or

14 collected under this title; examination of the uses of the

15 data by job seekers, employers, educators, career coun16 selors, public and private training providers, economic de17 velopment planners, and public agencies and institutions;

18 the appropriateness of such uses; and the relative costs

19 and benefits of the data.

20 SEC. 404. COORDINATION.

21 To ensure the appropriate coordination and integra22 tion of labor market information services nationwide, the

23 Secretary shall:

24 (1) coordinate the activities of Federal agencies

25 responsible for the collection and dissemination of
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1 labor market information at the national, State and

2 local level; and

3 (2) ensure the appropriate dissemination of re4 sults from research studies and demonstration

5 projects, feedback from surveys of customer satisfac6 tion, education and training provider performance

7 data, and other relevant information that promotes

8 improvement in the quality of labor market informa9 tion.

10 SEC. 405. EFFECTIVE DATE.

11 The provisions of this title shall take effect on July

12 1, 1995.

13 TITLE V—REINVENTION LABS FOR JOB

14 TRAINING FOR THE ECONOMICALLY

15 DISADVANTAGED

16 SEC. 501. ESTABLISHMENT OF LABS.

17 Title II of the Job Training Partnership Act is

18 amended by adding at the end thereof the following new

19 part:

20 ‘‘PART D—REINVENTION LABS

21 ‘‘SEC. 281. PURPOSE.

22 ‘‘The purpose of this part is to—

23 ‘‘(1) encourage innovative program designs to

24 enhance the provision of services to and improve
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1 labor market outcomes for economically disadvan2 taged youth and adults,

3 ‘‘(2) develop, through the initiative and partici4 pation of service delivery areas and States, knowl5 edge relating to effective approaches to providing

6 employment and training to the economically dis7 advantaged that may be used to benefit the pro8 grams conducted under this title; and

9 ‘‘(3) provide service delivery areas with in10 creased flexibility in the operation of job training

11 programs in exchange for higher levels of account12 ability for results.

13 ‘‘SEC. 282. APPLICATION FOR WAIVER OF FEDERAL RE14 QUIREMENTS.

15 ‘‘(a) IN GENERAL.—Any service delivery area or con16 sortia of service delivery areas desiring to obtain a waiver

17 of Federal statutory or regulatory requirements relating

18 to the programs conducted under parts A, B, or C of this

19 title shall submit, jointly with the Governor, an application

20 for such waiver at such time, in such manner, and contain21 ing such information as the Secretary may reasonably

22 require.

23 ‘‘(b) CONTENTS OF APPLICATION.—The application

24 for a waiver submitted pursuant to subsection (b) shall

25 include—
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1 ‘‘(1) a plan for conducting a program or pro2 grams authorized under this title incorporating inno3 vative administrative, service delivery, and other pro4 gram design components;

5 ‘‘(2) the measurable goals and outcomes to be

6 achieved by the program;

7 ‘‘(3) a description of the statutory or regulatory

8 requirements under titles I and II of this Act that

9 would be waived and how such requirements would

10 impede the implementation of the plan described in

11 paragraph (1);

12 ‘‘(4) assurances that the service delivery area

13 and the State will participate in a rigorous evalua14 tion to determine whether the goals and outcomes

15 described in paragraph (2) have been achieved; and

16 ‘‘(5) such other components and information as

17 the Secretary determines are appropriate.

18 ‘‘SEC. 283. WAIVERS AUTHORIZED.

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

20 (b), the Secretary may, pursuant to an application submit21 ted in accordance with section 282, waive statutory or reg22 ulatory requirements relating to title I and parts A, B,

23 and C of this title if—

24 ‘‘(1) the Secretary determines that such re25 quirements would impede the ability of the service
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1 delivery area to carry out the plan described in sec2 tion 282(b)(1) and achieving the outcomes described

3 in the plan,

4 ‘‘(2) the service delivery area and the State—

5 ‘‘(A) have provided a notice and oppor6 tunity for interested entities and individuals in

7 the State to comment on the application; and

8 ‘‘(B) have submitted to the Secretary the

9 comments received pursuant to subparagraph

10 (A); and

11 ‘‘(3) the Secretary approves the plan described

12 in the application.

13 ‘‘(b) WAIVERS NOT AUTHORIZED.—The Secretary

14 may not waive any statutory or regulatory requirement re15 lating to title I or parts A, B, or C of this title regarding—

16 ‘‘(1) the basic purposes or goals of the affected

17 programs;

18 ‘‘(2) the formula allocation of funds;

19 ‘‘(3) the eligibility for services as described in

20 sections 203, 254(b) and 263 (except for subsection

21 (f));

22 ‘‘(4) public health or safety, labor standards,

23 civil rights, occupational safety or health, or environ24 mental protection; or
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1 ‘‘(5) prohibitions or restrictions relating to con2 struction of buildings or facilities.

3 ‘‘(c) ADDITIONAL LIMITATIONS.—

4 ‘‘(1) NUMBER OF AREAS PARTICIPATING.—The

5 Secretary may approve not more than 75 applica6 tions nationwide to conduct the program described

7 under this part.

8 ‘‘(2) DURATION OF WAIVERS.—Each waiver

9 provided pursuant to this part shall be for a period

10 of not more than 2 years, except that the Secretary

11 may extend such period if the Secretary determines

12 that the waiver has been effective in enabling the

13 service delivery area to carry out the purposes of

14 this Act.

15 ‘‘(3) TERMINATION OF WAIVERS.—The Sec16 retary shall periodically review the performance of

17 any service delivery area for which the Secretary has

18 granted a waiver and shall terminate the waiver

19 under this section if the Secretary determines that

20 the performance of the service delivery area affected

21 by the waiver has been inadequate to justify a con22 tinuation of the waiver.

23 ‘‘(4) SUNSET.—No waivers may be approved or

24 remain in effect under this part after the date that
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1 is 4 years after the date of enactment of the Reem2 ployment Act of 1994.

3 ‘‘SEC. 284. TECHNICAL ASSISTANCE, EVALUATION AND

4 REPORT.

5 ‘‘(a) TECHNICAL ASSISTANCE.—The Secretary may

6 provide appropriate technical assistance to service delivery

7 areas, States, and service providers in the development

8 and implementation of programs under this part.

9 ‘‘(b) EVALUATION.—

10 ‘‘(1) IN GENERAL.—The Secretary shall provide

11 for the continuing evaluation of programs conducted

12 under this part, including the cost-effectiveness of

13 programs in achieving the purpose of this part.

14 ‘‘(2) TECHNIQUES.—

15 ‘‘(A) METHODS.—Evaluations conducted

16 under paragraph (1) shall utilize recognized

17 statistical methods and techniques of the behav18 ioral and social sciences, including methodolo19 gies that control for self-selection, where indi20 cated.

21 ‘‘(B) ANALYSIS.—Such evaluations may in22 clude cost benefit analyses of programs, and

23 analyses of the impact of the programs on par24 ticipants and the community, the extent to

25 which programs meet the needs of various de-
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1 mographic groups, and the effectiveness of the

2 delivery systems used by the various programs.

3 ‘‘(c) REPORT.—Not later than 5 years after the date

4 of enactment of the Reemployment Act of 1994, the Sec5 retary shall submit a report to the Congress relating to

6 the evaluation conducted pursuant to subsection (a) and

7 containing such recommendations as the Secretary deter8 mines are appropriate.’’.

9 SEC. 502. MODIFICATION OF TUITION DEFINITION.

10 Subparagraph (B) of section 141(d)(3) of the Job

11 Training Partnership Act is amended to read as follows:

12 ‘‘(B) Tuition charges for training or education

13 provided by an educational institution, including an

14 institution of higher education (as defined in section

15 1201(a) of the Higher Education Act of 1965), a

16 proprietary institution of higher education (as de17 fined in section 481(b) of such Act), and a post18 secondary vocational institution (as defined in sec19 tion 481(c) of such Act) that are not more than the

20 charges for such training or education made avail21 able to the general public, do not require a break22 down of cost components.’’.

23 SEC. 503. EFFECTIVE DATE AND SUNSET.

24 (a) REINVENTION LAB.—The provisions of section

25 501, and the amendments made by such section, shall take
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1 effect on the date of enactment of this Act and shall termi2 nate on the date that is 5 years after the date of enact3 ment of this Act.

4 (b) TUITION DEFINITION.—The provisions of section

5 502 and the amendments made by such section, shall take

6 effect on the date of enactment of this Act.

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