II 

113TH CONGRESS 

1ST SESSION S. 804 

To streamline and address overlap in the Federal workforce investment system, steer Federal training dollars toward skills needed by industry, 

establish incentives for accountability through a Pay for Performance 

pilot program, and provide new access to the National Directory of 

New Hires, to measure performance and better connect the unemployed 

to jobs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 24, 2013 

Mr. PORTMAN (for himself and Mr. BENNET) introduced the following bill; 

which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To streamline and address overlap in the Federal workforce 

investment system, steer Federal training dollars toward 

skills needed by industry, establish incentives for accountability through a Pay for Performance pilot program, and provide new access to the National Directory 

of New Hires, to measure performance and better connect the unemployed to jobs, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Careers through Re3 sponsive, Efficient, and Effective Retraining Act.’’. 

4 SEC. 2. STEERING FEDERAL TRAINING DOLLARS TOWARD 

5 SKILLS NEEDED BY INDUSTRY. 

6 (a) DEFINITIONS.—Section 101 of the Workforce In7 vestment Act of 1998 (29 U.S.C. 2801) is amended by 

8 adding at the end the following: 

9 ‘‘(54) CREDENTIAL.— 

10 ‘‘(A) INDUSTRY-RECOGNIZED.—The term 

11 ‘industry-recognized’, used with respect to a 

12 credential, means a credential that is sought or 

13 accepted by employers within the industry sec14 tor involved as recognized, preferred, or re15 quired for recruitment, screening, hiring, or ad16 vancement. If a credential is not yet available 

17 for a certain skill that is so sought or accepted, 

18 completion of an industry-recognized training 

19 program shall be considered to be an industry20 recognized credential, for the purposes of this 

21 paragraph. 

22 ‘‘(B) NATIONALLY PORTABLE.—The term 

23 ‘nationally portable’, used with respect to cre24 dential, means a credential that is sought or ac25 cepted as described in subparagraph (A) across 

26 multiple States. 


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1 ‘‘(C) REGIONALLY RELEVANT.—The term 

2 ‘regionally relevant’, used with respect to a cre3 dential, means a credential that is determined 

4 by the Governor and the head of the State 

5 workforce agency to be sought or accepted as 

6 described in subparagraph (A) in that State 

7 and neighboring States. 

8 ‘‘(55) STATE WORKFORCE AGENCY.—The term 

9 ‘State workforce agency’ means the lead State agen10 cy with responsibility for workforce investment ac11 tivities carried out under subtitle B.’’. 

12 (b) YOUTH ACTIVITIES.—Section 129(c)(1)(C) of the 

13 Workforce Investment Act of 1998 (29 U.S.C. 

14 2854(c)(1)(C)) is amended— 

15 (1) by redesignating clauses (ii) through (iv) as 

16 clauses (iii) through (v), respectively; and 

17 (2) by inserting after clause (i) the following: 

18 ‘‘(ii) training, with priority consider19 ation given, after consultation with the 

20 Governor and the head of the State work21 force agency and beginning not later than 

22 6 months after the date of enactment of 

23 the Careers through Responsive, Efficient, 

24 and Effective Retraining Act, to programs 

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1 ally portable, and regionally relevant cre2 dential, if the local board determines that 

3 such programs are available and appro4 priate;’’. 

5 (c) GENERAL EMPLOYMENT AND TRAINING ACTIVI6 TIES.—Section 134(d)(4)(F) of the Workforce Investment 

7 Act of 1998 (29 U.S.C. 2864(d)(4)(F)) is amended by 

8 adding at the end the following: 

9 ‘‘(iv) PRIORITY FOR PROGRAMS THAT

10 PROVIDE AN INDUSTRY-RECOGNIZED, NA11 TIONALLY PORTABLE, AND REGIONALLY

12 RELEVANT CREDENTIAL.—In selecting and 

13 approving programs of training services 

14 under this section, a one-stop operator and 

15 employees of a one-stop center referred to 

16 in subsection (c) shall, after consultation 

17 with the Governor and the head of the 

18 State workforce agency and beginning not 

19 later than 6 months after the date of en20 actment of the Careers through Respon21 sive, Efficient, and Effective Retraining 

22 Act, give priority consideration to pro23 grams (approved by the appropriate State 

24 agency and local board in conjunction with 

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1 ognized, nationally portable, and regionally 

2 relevant credential. 

3 ‘‘(v) RULE OF CONSTRUCTION.— 

4 Nothing in clause (iv) or section 

5 129(c)(1)(C) shall be construed to require 

6 an entity with responsibility for selecting 

7 or approving a workforce investment activi8 ties program to select a program that leads 

9 to a credential specified in clause (iv).’’. 

10 (d) STATE ADMINISTRATION.— 

11 (1) GENERAL EMPLOYMENT AND TRAINING AC12 TIVITIES.—Section 122(b)(2)(D) of the Workforce 

13 Investment Act of 1998 (29 U.S.C. 2842(b)(2)(D)) 

14 is amended— 

15 (A) in clause (ii), by striking ‘‘and’’ at the 

16 end; 

17 (B) in clause (iii), by striking the period 

18 and inserting ‘‘; and’’; and 

19 (C) by adding at the end the following: 

20 ‘‘(iv) in the case of a provider of a 

21 program of training services that leads to 

22 an industry-recognized, nationally portable, 

23 and regionally relevant credential, that the 

24 program leading to the credential meets 

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1 itation by a State-recognized, third party 

2 accrediting agency) as the Governor (in 

3 consultation with representatives of the rel4 evant industry sectors and labor groups) 

5 shall establish not later than 6 months 

6 after the date of enactment of the Careers 

7 through Responsive, Efficient, and Effec8 tive Retraining Act.’’. 

9 (2) YOUTH ACTIVITIES.—Section 123 of the 

10 Workforce Investment Act of 1998 (29 U.S.C. 2843) 

11 is amended by inserting ‘‘(including such quality cri12 teria (which may be accreditation by a State-recog13 nized, third party accrediting agency) as the Gov14 ernor (in consultation with representatives of the rel15 evant industry sectors and labor groups) shall estab16 lish not later than 6 months after the date of enact17 ment of the Careers through Responsive, Efficient, 

18 and Effective Retraining Act for a training program 

19 that leads to an industry-recognized, nationally port20 able, and regionally relevant credential)’’ after 

21 ‘‘plan’’. 

22 (e) REPORT ON INDUSTRY-RECOGNIZED CREDEN23 TIALS.—Section 122 of the Workforce Investment Act of 

24 1998 (29 U.S.C. 2842) is amended by adding at the end 

25 the following: 


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1 ‘‘(j) REPORT ON INDUSTRY-RECOGNIZED CREDEN2 TIALS.— 

3 ‘‘(1) DATA COLLECTION.—Each State shall 

4 submit to the Secretary data on programs deter5 mined, under section 129(c)(1)(C) or 

6 134(d)(4)(F)(iv), to lead to industry-recognized and 

7 regionally relevant credentials, and on the need of 

8 that State for such credentials. 

9 ‘‘(2) REPORT.—Based on data provided by the 

10 States under paragraph (1), the Secretary shall an11 nually compile the data and prepare a report identi12 fying industry-recognized credentials that are region13 ally relevant or nationally portable. The report shall 

14 include information on the needs of each State and 

15 of the Nation for such credentials. 

16 ‘‘(3) AVAILABILITY.—The Secretary shall make 

17 the report available and easily searchable on a 

18 website. 

19 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

20 this subsection shall be construed as an official en21 dorsement of a credential by the Department of 

22 Labor.’’. 


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1 SEC. 3. ESTABLISHING INCENTIVES FOR ACCOUNTABILITY. 

2 (a) PROGRAM.—Subtitle B of title I of the Workforce 

3 Investment Act of 1998 is amended by inserting after sec4 tion 112 (29 U.S.C. 2822) the following: 

5 ‘‘SEC. 112A. PAY FOR PERFORMANCE PILOT PROGRAM. 

6 ‘‘(a) ESTABLISHMENT.— 

7 ‘‘(1) IN GENERAL.—Not later than 1 year after 

8 the date of enactment of the Careers through Re9 sponsive, Efficient, and Effective Retraining Act, the 

10 Secretary of Labor shall establish a Pay for Per11 formance pilot program. The Secretary shall select 

12 not fewer than 5 States, including at least 1 rural 

13 State and at least 1 non-rural State, to participate 

14 in the pilot program by carrying out a Pay for Per15 formance State program. 

16 ‘‘(2) VOLUNTARY NATURE OF PROGRAM.— 

17 Nothing in this subtitle shall be construed to require 

18 a State to participate in the pilot program without 

19 the State’s consent. 

20 ‘‘(3) DEFINITION.—In this subsection, the term 

21 ‘rural State’ means a State that has a population 

22 density of 52 or fewer persons per square mile, or 

23 a State in which the largest county has fewer than 

24 150,000 people, as determined on the basis of the 

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1 ducted pursuant to section 141 of title 13, United 

2 States Code. 

3 ‘‘(b) SUBMISSION OF PLANS.—To be eligible to par4 ticipate in the pilot program, a State shall submit to the 

5 Secretary and obtain approval of a Pay for Performance 

6 plan described in section 112(e) as a supplement to the 

7 State plan described in section 112. The State shall sub8 mit the supplement in accordance with such process as 

9 the Secretary may specify after consultation with States. 

10 ‘‘(c) IMPLEMENTATION.— 

11 ‘‘(1) IN GENERAL.—In a State that carries out 

12 a Pay for Performance State program, the State 

13 shall reserve and the local areas shall use the 

14 amount described in paragraph (2) to provide a por15 tion of the training services authorized under section 

16 134(d)(4) (referred to in this section as ‘training 

17 services’) under the State’s Pay for Performance 

18 plan, in addition to the other requirements of this 

19 Act. 

20 ‘‘(2) AMOUNT.—The amount reserved under 

21 paragraph (1) shall be— 

22 ‘‘(A) a portion of not more than 25 per23 cent, as determined by the State, of the funds 

24 available to be allocated under section 133(b) 

25 within the State, and estimated by the State to 


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1 be available for training services, for the fiscal 

2 year involved; and 

3 ‘‘(B) a portion of not more than 17.5 per4 cent, as determined by the State, of the grant 

5 funds awarded under section 211(b) for the 

6 State (which portion shall be taken from the 

7 funds described in paragraphs (2) and (3) of 

8 section 222(a)) for the fiscal year involved. 

9 ‘‘(d) TRAINING AND TECHNICAL ASSISTANCE.—The 

10 Secretary shall provide, by grant or contract, training and 

11 technical assistance to States, and local areas in States, 

12 carrying out a Pay for Performance State program. 

13 ‘‘(e) STATE REPORTS.—Each State carrying out a 

14 Pay for Performance State program shall annually pre15 pare and submit to the Secretary a report regarding the 

16 performance of the State on the outcome measures de17 scribed in section 112(e)(2)(C). 

18 ‘‘(f) EVALUATIONS.— 

19 ‘‘(1) IN GENERAL.—Not later than 1 year after 

20 the conclusion of the transition period described in 

21 section 112(e)(2)(H), the Secretary shall enter into 

22 an arrangement for an entity to carry out an inde23 pendent evaluation of Pay for Performance State 

24 programs carried out under this subtitle. 


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1 ‘‘(2) CONTENTS.—For each Pay for Perform2 ance State program, the entity shall evaluate the 

3 program design and performance on the outcome 

4 measures, evaluate (wherever possible) the level of 

5 satisfaction with the program among employers and 

6 employees benefiting from the program, and esti7 mate public returns on investment, including such 

8 returns as reduced dependence on public assistance, 

9 reduced unemployment, and increased tax revenue 

10 paid by participants exiting the program for employ11 ment. 

12 ‘‘(3) REPORT.—The entity shall prepare a re13 port containing the results of the evaluation, and 

14 submit the report to the Secretary, not later than 18 

15 months after the conclusion of the transition period. 

16 ‘‘(g) REPORT TO CONGRESS.—Not later than 3 

17 months after the submission of the report described in 

18 subsection (f)(3), the Secretary shall prepare and submit 

19 to Congress a report that contains the results of the eval20 uations described in subsection (f) and recommendations. 

21 The recommendation shall include the Secretary’s opin22 ions concerning whether the pilot program should be con23 tinued and whether the pay for performance model should 

24 be expanded within this Act, and related considerations. 

25 ‘‘(h) PERFORMANCE.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), section 136 of this Act shall not apply to 

3 a State, or a local area in a State, with respect to 

4 activities carried out through a Pay for Performance 

5 State program. 

6 ‘‘(2) FISCAL AND MANAGEMENT ACCOUNT7 ABILITY INFORMATION SYSTEMS.—Section 136(f)(1) 

8 shall apply with respect to reporting and monitoring 

9 of the use of funds under this section for activities 

10 described in paragraph (1).’’. 

11 (b) PAY FOR PERFORMANCE PLAN.—Section 112 of 

12 the Workforce Investment Act of 1998 (29 U.S.C. 2822) 

13 is amended by adding at the end the following: 

14 ‘‘(e) PAY FOR PERFORMANCE PLANS.— 

15 ‘‘(1) IN GENERAL.—For a State seeking to 

16 carry out a Pay for Performance State program (re17 ferred to in this subsection as a ‘State program’) 

18 under the pilot program described in section 112A, 

19 the State plan shall include a plan supplement, con20 sisting of a Pay for Performance plan developed by 

21 the State and local areas in the State. 

22 ‘‘(2) CONTENTS.—The Pay for Performance 

23 plan shall, with respect to the State program— 

24 ‘‘(A) provide for technical support to local 

25 areas and providers in order to carry out a pay 


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1 for performance model, which shall at a min2 imum provide assistance with data collection 

3 and data entry requirements; 

4 ‘‘(B) specify target populations who are el5 igible to receive training services authorized 

6 under section 134(d)(4) (referred to in this sub7 section as ‘training services’) through the State 

8 program, with appropriate consideration of and 

9 participation targets for special participant pop10 ulations that face multiple barriers to employ11 ment, as defined in section 134(d)(4)(G)(iv); 

12 ‘‘(C) specify employment placement, em13 ployment retention, and earnings outcome 

14 measures and timetables for each target popu15 lation; 

16 ‘‘(D) provide for curricula in terms of com17 petencies required for education and career ad18 vancement that are, where feasible, tied to in19 dustry-recognized credentials and related stand20 ards (where the quality of the program leading 

21 to the credential or standard is recognized by 

22 the State or local area involved), or State li23 censing requirements; 

24 ‘‘(E) describe how the State or local areas 

25 will provide information to participants in the 


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1 State program about appropriate support serv2 ices, where feasible, including career assessment 

3 and counseling, case management, child care, 

4 transportation, financial aid, and job placement 

5 services; 

6 ‘‘(F) specify a fixed amount that, except as 

7 provided in subparagraph (H), local areas in 

8 the State will pay to providers of training serv9 ices in the State program, for each eligible par10 ticipant who achieves the applicable outcome 

11 measures or is an excepted participant de12 scribed in subparagraph (G)(i), according to the 

13 timetables described in subparagraph (C), 

14 which amount— 

15 ‘‘(i) shall represent 115 percent of the 

16 historical cost of providing training serv17 ices to a participant under this subtitle, as 

18 established by the State or local area in19 volved; and 

20 ‘‘(ii) may vary by target population; 

21 ‘‘(G) provide assurances that— 

22 ‘‘(i) no funds reserved for the State 

23 program will be paid to a provider for a 

24 participant who does not achieve the out25 come measures according to the timetables, 


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1 except for a participant who does not 

2 achieve the outcome measures through no 

3 fault of the provider, as determined by the 

4 Governor in consultation with the head of 

5 the State board, relevant local boards, and 

6 at least 1 representative of the State’s pro7 viders of training services; and 

8 ‘‘(ii) each local area in the State will 

9 reallocate funds not paid to a provider, be10 cause the achievement described in clause 

11 (i) did not occur, for further activities 

12 under the State program in the local area; 

13 and 

14 ‘‘(H) specify a transition period of not 

15 more than 1 year during which the reserved 

16 funds may be paid to providers of training serv17 ices based on the previous year’s performance 

18 on the core indicators of performance described 

19 in 136(b)(2)(A)(i), in order to enable the pro20 viders to begin to provide services under the 

21 State program and adjust to a pay for perform22 ance model, including adjusting by— 

23 ‘‘(i) developing partnerships with local 

24 employers; and 


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1 ‘‘(ii) seeking financial support and 

2 volunteer services from private sector 

3 sources. 

4 ‘‘(3) APPROVAL.—In determining whether to 

5 approve the plan supplement, the Secretary shall 

6 consider the quality of the data system the State will 

7 use to track performance on outcome measures in 

8 carrying out a Pay for Performance plan.’’. 

9 (c) CONFORMING AMENDMENTS.— 

10 (1) USE OF FUNDS.—Section 211(b)(2) of the 

11 Workforce Investment Act of 1998 (20 U.S.C. 

12 9211(b)(2)) is amended by inserting ‘‘or training 

13 services in accordance with section 112A(c)’’ before 

14 the period at the end. 

15 (2) FUNDING.—Section 223(a) of the Work16 force Investment Act of 1998 (20 U.S.C. 9223(a)) 

17 is amended— 

18 (A) by redesignating paragraph (8) as 

19 paragraph (12), and moving that paragraph to 

20 the end of that section 223(a); and 

21 (B) by inserting after paragraph (7) the 

22 following: 

23 ‘‘(8) Providing training services in accordance 

24 with section 112A(c).’’. 


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1 SEC. 4. PROVIDING A JOB TRAINING REORGANIZATION 

2 PLAN FOR THE FEDERAL WORKFORCE IN3 VESTMENT SYSTEM. 

4 (a) DEFINITIONS.—In this section: 

5 (1) FEDERAL JOB TRAINING PROGRAM.—The 

6 term ‘‘Federal job training program’’ means any 

7 federally funded employment and training program, 

8 including the programs identified in the Government 

9 Accountability Office report. 

10 (2) GOVERNMENT ACCOUNTABILITY OFFICE RE11 PORT.—The term ‘‘Government Accountability Of12 fice report’’ means the January 2011 report of the 

13 Government Accountability Office entitled ‘‘Multiple 

14 Employee and Training Programs: Providing Infor15 mation on Colocating Services and Consolidating Ad16 ministrative Structures Could Promote Efficiencies’’ 

17 (GAO–11–92). 

18 (3) INDIVIDUAL WITH A BARRIER TO EMPLOY19 MENT.—The term ‘‘individual with a barrier to em20 ployment’’ means a job seeker who— 

21 (A) is economically disadvantaged; 

22 (B) has limited English proficiency; 

23 (C) requires remedial education; 

24 (D) is an older worker; 

25 (E) is an individual who has completed a 

26 sentence for a criminal offense; or 


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1 (F) has another barrier to employment, as 

2 defined by the Director of the Office of Man3 agement and Budget. 

4 (b) REORGANIZATION PLAN.— 

5 (1) PREPARATION.—The Director of the Office 

6 of Management and Budget (referred to in this sec7 tion as the ‘‘Director’’) shall prepare a plan to reor8 ganize Federal job training programs to increase 

9 their efficiency, integration, and alignment. The plan 

10 shall include a proposal to decrease the number of 

11 Federal job training programs without decreasing 

12 services or accessibility to services for eligible job 

13 training participants, including individuals with bar14 riers to employment. In preparing the plan, the Di15 rector shall demonstrate that the Director consid16 ered the findings of the Government Accountability 

17 Office report, and input from the States, heads of 

18 the affected Federal departments and agencies, local 

19 workforce investment boards, businesses, workforce 

20 advocates and community organizations, labor orga21 nizations, and relevant education-related organiza22 tions. 

23 (2) SUBMISSION.—Not later than 12 months 

24 after the date of enactment of this Act, the Director 


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1 shall submit the reorganization plan to the appro2 priate committees of Congress. 

3 SEC. 5. USING THE NATIONAL DIRECTORY OF NEW HIRES 

4 INFORMATION TO ASSIST IN ADMINISTRA5 TION OF WORKFORCE INVESTMENT ACT OF 

6 1998 PROGRAMS. 

7 Section 453(j) of the Social Security Act (42 U.S.C. 

8 653(j)) is amended by adding at the end the following: 

9 ‘‘(12) INFORMATION COMPARISONS AND DIS10 CLOSURE TO ASSIST IN ADMINISTRATION OF WORK11 FORCE INVESTMENT ACT PROGRAMS.— 

12 ‘‘(A) IN GENERAL.—If, for purposes of ad13 ministering a program of workforce investment 

14 activities carried out under subtitle B of title I 

15 of the Workforce Investment Act of 1998, a 

16 State agency responsible for the administration 

17 of such program transmits to the Secretary the 

18 names and social security account numbers of 

19 individuals, the Secretary shall disclose to such 

20 State agency information on such individuals 

21 and their employers maintained in the National 

22 Directory of New Hires, subject to this para23 graph. 

24 ‘‘(B) CONDITION ON DISCLOSURE BY THE

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1 closure under subparagraph (A) only to the ex2 tent that the Secretary determines that the dis3 closure would not interfere with the effective 

4 operation of the program under this part. 

5 ‘‘(C) USE AND DISCLOSURE OF INFORMA6 TION BY STATE AGENCIES.— 

7 ‘‘(i) IN GENERAL.—A State agency 

8 may not use or disclose information pro9 vided under this paragraph except for pur10 poses of administering a program referred 

11 to in subparagraph (A) (including meas12 uring performance under section 136 of 

13 the Workforce Investment Act of 1998 and 

14 preparing reports under subsection (d) of 

15 such section, subject to this paragraph). 

16 ‘‘(ii) INFORMATION SECURITY.—The 

17 State agency shall have in effect data secu18 rity and control policies that the Secretary 

19 finds adequate to ensure the security of in20 formation obtained under this paragraph 

21 and to ensure that access to such informa22 tion is restricted to authorized persons for 

23 purposes of authorized uses and disclo24 sures. 


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1 ‘‘(iii) PENALTY FOR MISUSE OF IN2 FORMATION.—An officer or employee of 

3 the State agency who fails to comply with 

4 this subparagraph shall be subject to the 

5 sanctions under subsection (l)(2) to the 

6 same extent as if such officer or employee 

7 was an officer or employee of the United 

8 States. 

9 ‘‘(D) PROCEDURAL REQUIREMENTS.— 

10 State agencies requesting information under 

11 this paragraph shall adhere to uniform proce12 dures established by the Secretary governing in13 formation requests and data matching under 

14 this paragraph. 

15 ‘‘(E) WAIVER OF REQUIREMENT TO REIM16 BURSE COSTS.—Notwithstanding subsection 

17 (k)(3), a State agency shall not be required to 

18 reimburse the Secretary for the costs incurred 

19 by the Secretary in furnishing information re20 quested under this paragraph to the State 

21 agency.’’. 

Æ 


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