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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 180 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                 S. 180

  To streamline and reform Federal job training programs to create a 
world-class workforce development system for the 21st century, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 9, 1995

   Mr. Kennedy (for himself, Mr. Simon, and Mr. Dodd) introduced the 
 following bill; which was read twice and referred to the Committee on 
                       Labor and Human Resources

_______________________________________________________________________

                                 A BILL

 
  To streamline and reform Federal job training programs to create a 
world-class workforce development system for the 21st century, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Authorization of appropriations.
Sec. 4. Definitions.
                TITLE I--STREAMLINING AND CONSOLIDATION

Sec. 101. Purpose; findings; sense of the Congress.
Sec. 102. Elimination of certain programs.
Sec. 103. Streamlining and integration of adult training programs.
Sec. 104. Process for establishing 21st century workforce development 
                            system.
Sec. 105. Centralized waivers.
                  TITLE II--MARKET BUILDING ACTIVITIES

                  Subtitle A--Federal Level Activities

Sec. 201. Purpose.
Sec. 202. National Workforce Development Board.
Sec. 203. Mechanisms for building high quality integrated workforce 
                            development systems.
Sec. 204. Quality assurance system.
                   Subtitle B--State Level Activities

Sec. 211. State Workforce Development Councils.
Sec. 212. Membership.
Sec. 213. Chairperson.
Sec. 214. Duties and responsibilities.
Sec. 215. Development of quality assurance systems and consumer 
                            reports.
Sec. 216. Administration.
Sec. 217. Establishment of unified service delivery areas.
Sec. 218. Financial and management information systems.
Sec. 219. Capacity building grants.
Sec. 220. Performance standards for unified service delivery areas.
                   Subtitle C--Local Level Activities

Sec. 231. Workforce development boards.
Sec. 232. Workforce development board policy blueprint.
Sec. 233. Report card.
Sec. 234. One-stop career centers.
Sec. 235. Capacity building.
    TITLE III--ENHANCING INDIVIDUAL CHOICE THROUGH TRAINING ACCOUNTS

Sec. 301. Purpose.
Sec. 302. Establishment.
Sec. 303. Participation of workforce development programs.
Sec. 304. Administration.
Sec. 305. Eligibility requirements for providers of education and 
                            training services.
Sec. 306. Evaluation and recommendations.
Sec. 307. Report relating to income support.
                   TITLE IV--PRIVATE-PUBLIC LINKAGES

Sec. 401. Purpose.
Sec. 402. Incentives to encourage worker training.
Sec. 403. Labor Day report on private-public training practices.
Sec. 404. Matching grants to encourage incumbent worker training.
          TITLE V--INTEGRATED LABOR MARKET INFORMATION SYSTEM

Sec. 501. Integrated labor market information.
Sec. 502. Responsibilities of the National Board.
Sec. 503. Responsibilities of the Secretary.
Sec. 504. Responsibilities of Governors.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) increasing international competition, technological 
        advances, and structural changes in the United States economy 
        present new challenges to private firms and public policymakers 
        in creating a skilled workforce with the ability to adapt to 
        change and technological progress;
            (2) the Federal Government should work with the private 
        sector to create a streamlined, high-performance workforce 
        development system that is driven by the needs of its customers 
        rather than bureaucratic requirements;
            (3) such a system should actively encourage collaboration 
        among private sector firms and publicly funded education and 
        training efforts in order to assist jobseekers and workers to 
        adjust to structural economic changes;
            (4) although it is necessary for the Federal Government to 
        consolidate or eliminate unnecessary programs, the primary goal 
        of Federal workforce development policy should be to help 
        facilitate transactions taking place between jobseekers, 
        workers, and business in local labor markets;
            (5) while the Federal Government must maintain its 
        commitment to provide economically and educationally 
        disadvantaged individuals with skills and support services 
        necessary to succeed in the labor market, Federal workforce 
        development policy must also begin to provide incentives to 
        assist firms to help upgrade the skills of their front-line 
        workers;
            (6) in order for labor markets to function more 
        effectively, there must be--
                    (A) timely, accurate information about the supply, 
                demand, price, and quality of services available in the 
                job training marketplace; and
                    (B) trained brokers available to assist customers 
                to choose the most suitable service;
            (7) accordingly, the United States needs a comprehensive 
        integrated labor market information system to ensure that 
        workforce development programs are related to the demand for 
        particular skills in local labor markets, and a mechanism for 
        providing brokerage services to ensure that information about 
        the employment and earnings of the local workforce, and the 
        performance of education and training institutions, will be 
        available to jobseekers, workers, and firms;
            (8) in order to bring more coherence to Federal workforce 
        development policy, there should be a single entity at the 
        Federal, State, and local level vested with the necessary 
        authority to strategically plan ways to transform the separate 
        training and employment programs into an integrated and 
        accountable workforce development system;
            (9) these Federal, State, and local strategic planning 
        bodies should be structured in such a way to give businesses 
        and workers a meaningful role in shaping policy and overseeing 
        the quality of workforce development programs;
            (10) in recent years, many States and communities have made 
        progress in developing new approaches to better integrate 
        Federal employment and training programs;
            (11) the Federal Government should take more systematic 
        measures to encourage experimentation and flexibility, and to 
        disseminate best practices in the design and implementation of 
        a comprehensive workforce development system throughout the 
        country; and
            (12) the Federal Government should address the findings of 
        this subsection through the implementation of immediate and 
        long-term improvements that result in the establishment of a 
        high-quality workforce development system needed for the 
        economy of the 21st century.
    (b) Purpose.--It is the purpose of this Act--
            (1) to take certain immediate actions, and to establish a 
        process for bringing about longer term improvements, that are 
        needed to begin the transformation of federally funded 
        education and job training efforts from a collection of 
        fragmented programs into a coherent, integrated, accountable 
        workforce development system that--
                    (A) is based on the needs of jobseekers, workers, 
                and employers, rather than bureaucratic requirements;
                    (B) is accessible to any jobseeker, worker, or 
                employer;
                    (C) focuses on accountability, performance, and 
                accurate information;
                    (D) provides flexibility and responsibility to the 
                States, and in turn to local communities, for design 
                and implementation of workforce development systems;
                    (E) requires the active involvement of firms and 
                workers in the governance, design, and implementation 
                of such system;
                    (F) is linked directly to employment and training 
                opportunities in the private sector; and
                    (G) adopts best practices of quality administration 
                and management that have been successful in the private 
                sector; and
            (2) to authorize appropriations under this Act for fiscal 
        year 1996 at the same level as appropriations are authorized 
        for fiscal year 1995 for the programs repealed under section 
        102(a).

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Subject to subsection (b), there are authorized to 
be appropriated to carry out titles II, III, and IV--
            (1) $160,000,000 for fiscal year 1996; and
            (2) such sums as may be necessary for each of fiscal years 
        1997 through 1999.
    (b) Limitations.--
            (1) Fiscal year 1996.--Of the funds made available pursuant 
        to subsection (a) for fiscal year 1996--
                    (A) not more than 5 percent shall be used for the 
                activities of the National Board;
                    (B) not more than 10 percent shall be used for 
                matching grants pursuant to section 404;
                    (C) not more than 15 percent shall be used for 
                development grants pursuant to section 203(a); and
                    (D) not less than 70 percent shall be used for 
                implementation grants pursuant to section 203(b).
            (2) Fiscal years 1997 through 1999.--Of the funds made 
        available pursuant to subsection (a) for each of fiscal years 
        1997 through 1999--
                    (A) not more than 5 percent shall be used for the 
                activities of the National Board;
                    (B) not more than 10 percent shall be used for 
                matching grants pursuant to section 404; and
                    (C) not less than 85 percent shall be used for 
                implementation grants pursuant to section 203(b).
    (c) Integrated Labor Market Information System.--To carry out title 
V, there are authorized to be appropriated--
            (1) $90,000,000 for fiscal year 1996; and
            (2) such sums as may be necessary for each succeeding 
        fiscal year.

SEC. 4. DEFINITIONS.

    As used in this Act--
            (1) Development grant.--The term ``development grant'' 
        means a grant provided to each State under section 203(a).
            (2) Implementation grant.--The term ``implementation 
        grant'' means a grant provided under section 203(b).
            (3) Leading edge state.--The term ``leading edge State'' 
        means a State that has been awarded an implementation grant 
        under section 203(b).
            (4) Workforce development program.--The term ``workforce 
        development program'' means any federally-funded or State-
        funded program that provides job training assistance to 
        individuals or assists employers to identify or train workers.
            (5) Integrated workforce development system; integrated 
        system.--The terms ``integrated workforce development system'' 
        and ``integrated system'' mean the system of employment, 
        training, and employment-related education programs, including 
        the programs described in section 103(a) and any additional 
        Federal or State programs designated by the Governor of a 
        State, comprising the system described in section 203(b).
            (6) National board.--The term ``National Board'' means the 
        National Workforce Development Board established under section 
        202(b).
            (7) National report card.--The term ``National Report 
        Card'' means the Nation's Workforce Development Report Card 
        prepared pursuant to section 202(c)(1).
            (8) State council.--The term ``State Council'' means a 
        State Workforce Development Council established pursuant to 
        section 211.
            (9) State blueprint.--The term ``State Blueprint'' means 
        the State Workforce Development Policy Blueprint prepared 
        pursuant to section 214(a);
            (10) State report card.--The term ``State Report Card'' 
        means the State Workforce Development Report Card issued 
        pursuant to section 214(b).
            (11) Workforce development board.--The term ``workforce 
        development board'' means a local board established pursuant to 
        section 202.
            (12) Unified service delivery area.--The term ``unified 
        service delivery area'' means the common geographic service 
        area boundaries established pursuant to section 217 and 
        overseen by a workforce development board.
            (13) One-stop career center.--The term ``one-stop career 
        center'' means an access point for intake, assessment, 
        referral, and placement services, including services provided 
        electronically, that is part of the network established 
        pursuant to section 234.
            (14) Hard-to-serve.--The term ``hard-to-serve'' means an 
        individual meeting the requirements of section 203(b) of the 
        Job Training Partnership Act (29 U.S.C. 1603(b)).
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor, unless otherwise specified.

                TITLE I--STREAMLINING AND CONSOLIDATION

SEC. 101. PURPOSE; FINDINGS; SENSE OF THE CONGRESS.

    (a) Purpose.--The purpose of this title is to streamline the system 
of federally funded employment training services available to 
jobseekers, workers, and businesses.
    (b) Findings.--The Congress finds that--
            (1) the process of streamlining the current collection of 
        federally funded employment training programs begins with 
        eliminating and consolidating separate employment training 
        programs; and
            (2) as such programs are eliminated, the funding for such 
        programs should be utilized to support the creation of a 
        market-driven workforce development system, as described in 
        section 2(b).
    (c) Sense of the Congress.--It is the sense of the Congress that--
            (1) any budget savings realized as a result of the repeal 
        of programs pursuant to section 102 or through the 
        consolidation of programs pursuant to sections 103 and 104 
        should be reinvested in the Nation's job training system; and
            (2) as programs are eliminated and merged, it is imperative 
        that such elimination and merging be done without in any way 
        reducing the commitment or level of effort of the Federal 
        Government to improving the education, employment, and earnings 
        of all workers and jobseekers particularly hard-to-serve 
        individuals.

SEC. 102. ELIMINATION OF CERTAIN PROGRAMS.

    (a) In General.--The following provisions are repealed:
            (1) Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
        2015(d)(4)).
            (2) Section 211 of the Appalachian Regional Development Act 
        of 1965 (40 U.S.C. App. 211).
            (3) Section 204 of the Immigration Reform and Control Act 
        of 1986 (8 U.S.C. 1255a note).
            (4) Section 20 of the Federal Transit Act (49 U.S.C. App. 
        1616).
            (5) The Displaced Homemaker Self-Sufficiency Assistance Act 
        (29 U.S.C. 2301 et seq.).
            (6) Section 43 of the Airline Deregulation Act of 1978 (49 
        U.S.C. App. 1552).
            (7) Title II of Public Law 95-250 (92 Stat. 172).
            (8) Section 413 of the Carl D. Perkins Vocational and 
        Applied Technology Education Act (21 U.S.C. 2413).
            (9) Title V of the Job Training Partnership Act (29 U.S.C. 
        1791 et seq.).
            (10) Part J of title IV such Act (29 U.S.C. 1784 et seq.).
            (11) Section 325 of such Act (29 U.S.C. 1662d).
            (12) Section 325A of such Act (29 U.S.C. 1662d-1).
            (13) Section 326 of such Act (29 U.S.C. 1662e).
            (14) Sections 1141 through 1144 of title 10, United States 
        Code.
            (15) Subtitle C of title VII of the Stewart B. McKinney 
        Homeless Assistance Act (42 U.S.C. 11441 et seq.).
    (b) Repeals of Employment Training Programs.--The repeals made by 
subsection (a) shall take effect on the date of enactment of this Act.
    (c) Technical and Conforming Amendments.--The National Board shall 
include in the draft joint resolution submitted under section 104(b), 
technical and conforming amendments regarding the provisions repealed 
under subsection (a). Such proposed amendments should be consistent 
with the purposes of this Act.

SEC. 103. STREAMLINING AND INTEGRATION OF ADULT TRAINING PROGRAMS.

    (a) Requirements.--
            (1) In general.--A State that receives an implementation 
        grant to develop an integrated workforce development system--
                    (A) shall include in such system the components of 
                the program and activities carried out on the date of 
                enactment of this Act under the provisions described in 
                subsection (b)(1); and
                    (B) may include any other Federal or State 
                workforce development program identified by the 
                Governor under paragraph (2).
            (2) Additional programs.--Any other Federal or State 
        workforce development program identified by the Governor 
        pursuant to section 203(b), subject to a two-thirds vote of the 
        National Board, may be included in the integrated system of a 
        State described in paragraph (1).
    (b) Repeals of Job Training Programs.--
            (1) In general.--The following provisions are repealed:
                    (A) Part A of title II of the Job Training 
                Partnership Act (29 U.S.C. 1601 et seq.).
                    (B) Title III of such Act (29 U.S.C. 1651 et seq.).
                    (C) Part C of title IV of such Act (29 U.S.C. 
                1721).
                    (D) The Wagner-Peyser Act (29 U.S.C. 40 et seq.).
                    (E) Sections 235 and 236 of the Trade Act of 1974 
                (19 U.S.C. 2295 and 2296), and paragraphs (1) and (2) 
                of section 250(d) of such Act (19 U.S.C. 2331(d)(1) 
                and(2)).
                    (F) The Refugee Education Assistance Act of 1980 (8 
                U.S.C. 1522 note).
                    (G) Title V of the Older Americans Act of 1965 (42 
                U.S.C. 3056 et seq.).
            (2) Effective date.--The repeals made by paragraph (1) 
        shall take effect on September 30, 1999.
            (3) Technical and conforming amendments.--The National 
        Board shall include in the draft joint resolution submitted 
        under section 104(b), technical and conforming amendments 
        regarding the provisions repealed under subsection (a). Such 
        proposed amendments should be consistent with the purposes of 
        this Act.

SEC. 104. PROCESS FOR ESTABLISHING 21ST CENTURY WORKFORCE DEVELOPMENT 
              SYSTEM.

    (a) Annual Recommendations.--Not later than 180 days after the date 
of enactment of this Act, and each June 1 thereafter, the National 
Board shall make recommendations to the President and Congress for the 
elimination of Federal workforce development programs, or programs 
whose functions should be subsumed under other Federal programs.
    (b) Report and Joint Resoluntion.--
            (1) Report.--Not later than June 1, 1999, the National 
        Board, based on such board's analysis of the experience of 
        leading edge States and the progress made toward establishing 
        an integrated, market-driven workforce development system, 
        shall prepare and submit to the Committee on Economic and 
        Educational Opportunities of the House of Representatives and 
        the Committee on Labor and Human Resources of the Senate a 
        report containing the findings of such board, and 
        recommendations for proposed reforms.
            (2) Joint resolution.--Not later than June 1, 1999, the 
        National Board shall submit to the Congress a draft of a joint 
        resolution containing provisions to develop a streamlined, 
        integrated, market-driven workforce development system, from 
        the programs described in section 103(b) and any other Federal 
        workforce development program determined by the National Board 
        as appropriate to be included that is consistent with this Act, 
        pursuant to section 2(b). The joint resolution shall include 
        recommendations for standard outcome measures as described in 
        section 204(a)(2) and shall describe how the new system will 
        maintain services to hard-to-serve populations.

SEC. 105. CENTRALIZED WAIVERS.

    (a) Expedited Process.--Not later than 180 days after the date of 
enactment of this Act, the President shall establish an expedited 
process to consider and act on waiver requests submitted by the States 
under this section.
    (b) States Not Receiving Implementation Grants.--
            (1) In general.--Any State may apply, in accordance with 
        this section, for a waiver of statutory or regulatory 
        requirements under one or more of the programs described in 
        section 103(b)(1), for a period of 2 years to facilitate the 
        provision of assistance for workforce development.
            (2) Waiver authority.--A waiver may be granted under this 
        subsection only if--
                    (A) the requirement sought to be waived impedes the 
                ability of the State, or a local entity in the States, 
                to carry out the State or local workforce development 
                plan;
                    (B) the State has waived, or agrees to waive, 
                similar requirements of State law; and
                    (C) in the case of a statewide waiver, the State--
                            (i) provides all State and local agencies 
                        and appropriate organizations in the State, 
                        including labor organizations, with notice and 
                        an opportunity to comment on the State's 
                        proposal to seek a waiver; and
                            (ii) submits the affected agency's comments 
                        with the waiver application.
            (3) Application.--Each application submitted under this 
        subsection shall--
                    (A) identify the statutory or regulatory 
                requirements that are requested to be waived and the 
                goals that the State or local agency intends to 
                achieve;
                    (B) describe the action that the State has 
                undertaken to remove State statutory or regulatory 
                barriers identified in the application;
                    (C) describe the purpose of the waiver and the 
                expected programmatic outcomes if the request is 
                granted;
                    (D) describe the numbers and types of people to be 
                affected by such waiver;
                    (E) describe a timetable for implementing the 
                waiver;
                    (F) describe the process the State will use to 
                monitor, on a biannual basis, the progress in 
                implementing the waiver; and
                    (G) describe how the goals of the program or 
                programs for which a waiver is granted will continue to 
                be met.
    (c) States Receiving Implementation Grants.--Subject to subsection 
(d), each State receiving an implementation grant under section 203(b) 
shall have the statutory or regulatory requirement, described in its 
grant application or State Blueprint of such State waived for the 
duration of the implementation grant.
    (d) Limitations.--
            (1) In general.--A waiver shall not be granted under a 
        workforce development program if such waiver would alter--
                    (A) the purposes or goals of such program;
                    (B) the allocation of funds under such program;
                    (C) any statutory or regulatory requirement under 
                such program relating to public health or safety, civil 
                rights, protections granted under title I and sections 
                503 and 504 of the Rehabilitation Act of 1973 (29 
                U.S.C. 701 et seq.), occupational safety and health, 
                environmental protection, displacement of current 
                employees, or fraud and abuse; or
                    (D) eligibility requirements under such program, 
                except that a waiver may be granted with respect to an 
                eligibility requirement if such waiver would provide 
                for increased flexibility in developing common 
                definitions for individuals eligible for such program.
            (2) Circulars and related regulations.--The following 
        circulars promulgated by the Office of Management and Budget 
        shall be subject to the waiver authority of this subsection:
                    (A) A-87, relating to cost principles for State and 
                local governments.
                    (B) A-102, relating to grants and cooperative 
                agreements with State and local governments.
                    (C) A-122, relating to nonprofit organizations.
                    (D) A-110, relating to administrative requirements 
                for grants and cooperative agreements with nonprofit 
                organizations and institutions of higher education.
                    (E) A-21, relating to cost principles for 
                institutions of higher education.
            (3) Effective date.--A waiver granted under this section 
        shall take effect on the date such waiver is granted.
            (4) Review of application.--Each application submitted by a 
        State pursuant to subsection (b)(3) shall be reviewed by the 
        Secretary or agency head who has jurisdiction over the 
        workforce development program or programs to which such waiver 
        request relates.
            (5) Approval or disapproval of application.--
                    (A) Timing.--Each application submitted by a State 
                in accordance with subsection (b)(3) shall be reviewed 
                promptly upon receipt, and shall be approved or 
                disapproved not later than the end of the 60-day period 
                beginning on the date such application is received.
                    (B) Approval.--A waiver or waivers proposed in an 
                application may be approved for the 2-year period 
                beginning on the date such application is approved, if 
                the State demonstrates in the application that such 
                waiver or waivers will achieve coordination, expansion, 
                and improvement in the quality of services under its 
                workforce development system.
                    (C) Disapproval and resubmission.--If an 
                application is incomplete or unsatisfactory, the 
                appropriate Federal official shall, before the end of 
                the period referred to in subparagraph (A)--
                            (i) notify the State of the reasons for the 
                        failure to approve the application;
                            (ii) notify the State that the application 
                        may be resubmitted during the period referred 
                        to in clause (iii); and
                            (iii) permit the State to resubmit a 
                        corrected or amended application during the 60-
                        day period beginning on the date of 
                        notification under this subparagraph.
                    (D) Review of resubmitted application.--Any 
                application resubmitted under subparagraph (C) shall be 
                approved or disapproved before the expiration of the 
                60-day period beginning on the date of the 
                resubmission.
            (6) Revocation of waiver.--If, after the approval of an 
        application under this subsection, the Secretary determines 
        that the waiver or waivers do not achieve coordination, 
        expansion, and improvement in the quality of services under the 
        workforce development programs to which such waiver or waivers 
        relate, the waiver or waivers may be revoked in whole or in 
        part.

                  TITLE II--MARKET BUILDING ACTIVITIES

                  Subtitle A--Federal Level Activities

SEC. 201. PURPOSE.

    The purpose of this title is to establish a framework at the 
Federal, State, and local levels for key stakeholders to work 
cooperatively to build the infrastructure, brokerage, and 
accountability systems needed to transform current Federally funded job 
training programs into a market-driven workforce development system.

SEC. 202. NATIONAL WORKFORCE DEVELOPMENT BOARD.

    (a) Findings.--The Congress finds that a national workforce 
development board is necessary to ensure--
            (1) the establishment and continuous improvement of the 
        national workforce development system;
            (2) that integrated strategic planning takes place among 
        the Federal agencies currently responsible for administering 
        job training programs;
            (3) incorporation of private sector expertise to the 
        governance of the national workforce development system; and
            (4) that unnecessary legislative and regulatory barriers to 
        service integration are removed as a market-driven workforce 
        development system is established.
    (b) Establishment.--
            (1) In general.--There is established the National 
        Workforce Development Board (referred to in this Act as the 
        ``National Board'').
            (2) Composition.--The National Board shall be comprised of 
        16 members, of whom--
                    (A) one member shall be the Secretary of Labor;
                    (B) one member shall be the Secretary of Education;
                    (C) one member shall be the Secretary of Health and 
                Human Services;
                    (D) one member shall be the Secretary of Commerce;
                    (E) three members shall be representatives of 
                business (including representatives of small businesses 
                and large employers);
                    (F) three members shall be representatives of 
                organized labor;
                    (G) three members shall be State and local elected 
                officials of whom two shall be Governors of a State and 
                one shall be a local elected official; and
                    (H)(i) one member shall be selected from 
                representatives of community-based organizations;
                    (ii) one member shall be selected from 
                representatives of secondary schools or postsecondary 
                educational institutions; and
                    (iii) one member shall be selected from 
                representatives of nongovernmental organizations that 
                have a history of successfully protecting the rights of 
                individuals with disabilities or older persons.
            (3) Additional requirements.--The members described in 
        subparagraphs (E) and (F) of paragraph (2) shall--
                    (A) in the aggregate, represent a broad cross-
                section of occupations and industries;
                    (B) to the extent feasible, be geographically 
                representative of the United States, and reflect the 
                racial, ethnic, and gender diversity of the United 
                States; and
                    (C) shall include at least one member of the 
                National Skill Standards Board established pursuant to 
                section 503 the National Skill Standards Act of 1994.
            (4) Expertise.--The National Board and the staff shall have 
        sufficient expertise to effectively carry out the duties and 
        functions of the National Board.
            (5) Appointment.--The members described in subparagraphs 
        (E), (F), (G), and (H) of paragraph (2) shall be appointed by 
        the President, by and with the advice and consent of the 
        Senate.
            (6) Ex officio nonvoting members.--The Director of the 
        Office of Management and Budget and the chairpersons and 
        ranking minority members of the Committee on Labor and Human 
        Resources of the Senate and the Committee on Economic and 
        Educational Opportunities of the House of Representatives shall 
        be ex officio, nonvoting members of the National Board.
            (7) Terms.--Each member of the National Board appointed 
        under subparagraph (E), (F), (G), and (H) of paragraph (2) 
        shall be appointed for a term of 4 years, except that of the 
        initial members of the National Board appointed under such 
        subparagraphs--
                    (A) four members shall be appointed for a term of 2 
                years;
                    (B) four members shall be appointed for a term of 3 
                years; and
                    (C) four members shall be appointed for a term of 4 
                years.
            (8) Vacancies.--Any vacancy on the National Board shall not 
        affect the powers of the National Board, but shall be filled in 
        the same manner as the original appointments.
            (9) Chairpersons.--The President, by and with the advice 
        and consent of the Senate, shall select one cochairperson of 
        the National Board from among the members of the National Board 
        appointed under paragraph (2)(E) and one cochairperson from 
        among the members appointed pursuant to paragraph (2)(F).
            (10) Compensation and expenses.--
                    (A) Compensation.--Each member of the National 
                Board who is not a full-time employee or officer of the 
                Federal Government shall serve without compensation. 
                Each member of the National Board who is an officer or 
                employee of the Federal Government shall serve without 
                compensation in addition to that received for the 
                services of such member as an officer or employee of 
                the Federal Government.
                    (B) Expenses.--The members of the National Board 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for employees 
                of agencies under subchapter I of chapter 57 of title 
                5, United States Code, while away from their homes or 
                regular places of business in the performance of 
                services for the National Board.
            (11) Executive director and staff.--
                    (A) Executive director.--The cochairpersons of the 
                National Board shall appoint an Executive Director who 
                shall be compensated at a rate determined by the 
                National Board, not to exceed the rate payable for 
                level V of the Executive Schedule under section 5316 of 
                title 5, United States Code.
                    (B) Staff.--The Executive Director may--
                            (i) appoint and compensate such additional 
                        staff as may be necessary to enable the 
                        National Board to perform its duties; and
                            (ii) fix the compensation of the staff 
                        without regard to the provisions of chapter 51 
                        and subchapter III of chapter 53 of title 5, 
                        United States Code, relating to classifications 
                        of positions and General Schedule pay rates, 
                        except that the rate of pay for the staff may 
                        not exceed the rate payable for level V of the 
                        Executive Schedule under section 5316 of such 
                        title.
            (12) Agency support.--
                    (A) Use of facilities.--The National Board may use 
                the research, equipment, services, and facilities of 
                any agency or instrumentality of the United States with 
                the consent of such agency or instrumentality.
                    (B) Staff of federal agencies.--Upon the request of 
                the National Board, the head of any Federal agency may 
                detail to the National Board, on a reimbursable basis, 
                any of the personnel of such Federal agency to assist 
                the National Board in carrying out this Act. Such 
                detail shall be without interruption or loss of civil 
                service status or privilege.
            (13) Procurement of temporary and intermittent services.--
        The co-chairpersons of the National Board may procure temporary 
        and intermittent services of experts and consultants under 
        section 3109(b) of title 5, United States Code.
    (c) Duties.--
            (1) National report card.--
                    (A) In general.--Not later than July 1, 1996, and 
                each July 1 thereafter, the National Board shall 
                prepare a report to be known as the Nation's Workforce 
                Development Report Card (referred to in this Act as the 
                ``National Report Card'').
                    (B) Requirements.--The National Report Card shall 
                assess the performance of the workforce development 
                system of the United States, based on the earnings and 
                employment gains and other nonemployment-related 
                outcomes of individuals assisted by the programs 
                comprising such system. The National Report Card shall 
                evaluate all workforce development programs that 
                receive Federal funding, and shall--
                            (i) assess the performance of each program;
                            (ii) assess performance based on the type 
                        of assistance provided, including the 
                        categories of services identified in section 
                        204(b)(1)(C);
                            (iii) assess year-to-year changes in 
                        performance;
                            (iv) report on the extent to which hard-to-
                        serve populations are receiving services and 
                        the related outcomes in relation to services 
                        received in the preceding three years;
                            (v) determine the annual Federal investment 
                        in workforce development in each State;
                            (vi) assess the lessons learned from the 
                        experience of leading-edge States, and States 
                        that waive certain program requirements to 
                        experiment with alternative workforce 
                        development strategies; and
                            (vii) assess the performance of the 
                        workforce development system in each State.
            (2) Congressional testimony.--The cochairpersons of the 
        National Board shall, at least annually, provide testimony, 
        during a joint hearing before the Committee on Labor and Human 
        Resources of the Senate and the Committee on Economic 
and Educational Opportunities of the House of Representatives on the 
progress being made in--
                    (A) developing a more streamlined integrated and 
                accountable public and private workforce development 
                system in the United States; and
                    (B) carrying out the purposes described in section 
                2(b).
            (3) Review of grant proposals.--The National Board shall 
        review the development grant proposals pursuant section 203(a), 
        the implementation grant proposals pursuant to section 203(b), 
        and the matching grant proposals submitted pursuant to section 
        404, and make recommendations to the Secretary regarding such 
        proposals.
            (4) Final recommendations.--Not later than June 1, 1999, 
        the National Board shall submit recommendations in the form of 
        a joint resolution to the President and Congress, pursuant to 
        section 104(b).
    (d) Termination.--The National Board shall terminate on the date on 
which the National Board submits the joint resolution to President and 
Congress under section 104(b).
    (e) National for Employment Policy.--
            (1) In general.--Part F of title IV of the Job Training 
        Partnership Act (29 U.S.C. 1771 et seq.) is repealed.
            (2) Conforming amendment.--Subsection (i) of section 106 of 
        such Act (29 U.S.C. 1516(i)) is amended by striking ``(i) 
        Functions of NCEP.--The National Commission for Employment 
        Policy'' and inserting ``(i) Functions of National Workforce 
        Development Board.--The National Workforce Development Board 
        established under section 202 of the Workforce Development 
        Act''.

SEC. 203. MECHANISMS FOR BUILDING HIGH QUALITY INTEGRATED WORKFORCE 
              DEVELOPMENT SYSTEMS.

    (a) State Development Grants.--
            (1) Purpose.--The purpose of this subsection is to assist 
        States and communities in strategic planning for integrated 
        workforce development systems, including the development of a 
        financial and management information system, a quality 
        assurance system, and an integrated labor market information 
        system.
            (2) Grants to states.--The Secretary may provide a 
        development grant to a State in such amount as the Secretary, 
        in consultation with the National Board, determines to be 
        necessary to enable such State to develop a strategic plan, as 
        described in paragraph (1), for the development of a 
        comprehensive statewide integrated workforce development 
        system.
            (3) Application.--To be eligible to receive a development 
        grant under this subsection, the Governor of a State, on behalf 
        of the State, shall submit to the National Board and the 
        Secretary an application, at such time, in such form, and 
        containing such information as the Secretary may require.
    (b) Implementation Grants to Leading-Edge States.--
            (1) Purpose.--The purpose of this subsection is to assist 
        States in implementing statewide high-quality integrated 
        workforce development systems that are accountable for 
        achieving results.
            (2) Grants to states.--The Secretary, in consultation with 
        the National Board, may provide an implementation grant to the 
        State in such amount as the Secretary determines to be 
        necessary to enable such State to implement an integrated 
        workforce development system.
            (3) Period of grant.--The provision of payments under a 
        grant under this subsection shall not exceed 4 fiscal years, 
        and shall be subject to the annual approval of the Secretary, 
        in consultation with the National Board, and the availability 
        of appropriations for the fiscal year involved.
            (4) Allocation requirements.--
                    (A) First year.--For the first fiscal year for 
                which a State receives amounts from an implementation 
                grant under this subsection, the State shall use not 
                less than 75 percent of such amount to provide 
                subgrants to local workforce development boards.
                    (B) Second year.--For the second fiscal year for 
                which a State receives amounts from an implementation 
                grant under this subsection, the State shall use not 
                less than 80 percent of such amount to provide 
                subgrants to local workforce development boards.
                    (C) Third and succeeding years.--For the third, and 
                each succeeding, fiscal year for which a State receives 
                amounts from an implementation grant under this 
                subsection, the State shall use not less than 85 
                percent of such amount to provide subgrants to local 
                workforce development boards.
            (5) Limitation.--A State shall be eligible to receive not 
        more than 1 implementation grant under this subsection.
            (6) Application.--To be eligible to receive an 
        implementation grant under this subsection, the Governor of a 
        State, on behalf of the State, shall submit to the National 
        Board and the Secretary an application that shall include a 
        copy of the State Blueprint and such other information as the 
        Secretary, with the advice of the National Board, may require.
    (c) Dissemination of Information on Best Practices.--The Secretary, 
in consultation with the National Board, shall--
            (1) collect and disseminate information that will assist 
        State and local communities undertaking activities to 
        streamline and reform their job training systems, including 
        information on--
                    (A) the successful experiences of States and 
                localities that--
                            (i) have received development or 
                        implementation grants;
                            (ii) have been granted waivers; or
                            (iii) are experimenting with training 
                        account systems established under title III of 
                        this Act; and
                    (B) research concerning the restructuring of 
                workforce development systems; and
            (2) facilitate the exchange of information and ideas among 
        States and local entities that are building market-based 
        workforce development systems.
    (d) Workforce Development Impact Reports.--
            (1) Submission.--For each bill or resolution concerning 
        workforce development reported by any committee of the Senate 
        or the House of Representatives, the National Board shall 
        determine whether proposed Federal job training legislation 
        complies with the data reporting, common definitions, and 
        common funding cycles described in subsections (b) and (e) of 
        section 204. A determination of compliance by the National 
        Board under this subsection shall be included in the committee 
        report accompanying such legislation, if timely submitted to 
        such committee before such report is filed.
            (2) Procedure.--It shall not be in order in the Senate or 
        the House of Representatives to consider any bill or resolution 
        concerning workforce development that would not comply with the 
        national workforce development system, as determined by the 
        National Board under paragraph (1).
            (3) Waiver.--This subsection may be waived or suspended in 
        the Senate or the House of Representatives only by the 
        affirmative vote of three-fifths of the members of such House.

SEC. 204. QUALITY ASSURANCE SYSTEM.

    (a) Purpose.--The purpose of this section is to improve the quality 
of all Federal programs directed at improving the knowledge, skills, 
and abilities of members of the workforce by strengthening 
accountability and encouraging the adoption of quality improvement 
processes at all levels of the workforce development system. In order 
to accomplish this purpose, this Act--
            (1) directs the Secretaries of Labor, Education, and Health 
        and Human Services to jointly, in consultation with the 
        National Board--
                    (A) develop common terms and definitions as 
                described in subsection (b);
                    (B) develop a placement accountability system as 
                described in subsection (c); and
                    (C) adjust existing program performance standards 
                as described in section 220(c); and
            (2) directs the National Board to recommend a system of 
        performance standards in its joint resolution submitted to 
        Congress pursuant to section 104(b) that includes standard 
        outcome measures relating to--
                    (A) employment;
                    (B) job retention;
                    (C) earnings; and
                    (D) nonemployment outcome measures, such as 
                learning and competency gains.
    (b) Common Terms and Definitions.--
            (1) In general.--Each workforce development program that 
        receives Federal funds shall collect and report to the Governor 
        and the State Council, if applicable, for each participant to 
        whom assistance is provided, the following information:
                    (A) The quarterly employment status and earnings 
                for 1 year after the participant no longer receives 
                assistance under such program.
                    (B) Economic and demographic characteristics, 
                including the participant's--
                            (i) social security number;
                            (ii) date of birth;
                            (iii) gender;
                            (iv) race or ethnicity;
                            (v) disability status;
                            (vi) education (highest formal grade level 
                        achieved at commencement of participation in 
                        program);
                            (vii) academic degrees and credentials at 
                        time of entry into the program; and
                            (viii) employment status at the time of 
                        entry into the program.
                    (C) Services received, the extent, when 
                appropriate, and spending for such services, 
                including--
                            (i) assessments;
                            (ii) testing;
                            (iii) counseling;
                            (iv) job development or job search 
                        assistance;
                            (v) occupational skills training;
                            (vi) work experience;
                            (vii) job readiness training;
                            (viii) basic skills education;
                            (ix) postsecondary academic education 
                        (nonoccupational);
                            (x) supportive and supplementary services; 
                        and
                            (xi) on-the-job training.
                    (D) Program outcomes, as specified by the State, 
                such as--
                            (i) advancement to higher level education 
                        or training;
                            (ii) attainment of additional degrees or 
                        credentials (including skill standards as such 
                        standards become available);
                            (iii) assessment of learning gain in basic 
                        skills programs;
                            (iv) attainment and retention of subsidized 
                        or unsubsidized employment;
                            (v) quarterly earnings; and
                            (vi) reduction in welfare dependency.
            (2) Replacement of existing requirements.--Program 
        monitoring under this section shall supplant existing 
        monitoring and reporting requirements for program participants.
            (3) Adoption of common terms and definitions.--
                    (A) Report.--Not later than 180 days after the date 
                of enactment of this Act, each Federal department and 
                agency with responsibility for a workforce development 
                program shall report to the National Board on its 
                progress in adopting the common terms and definitions 
                for program participants, service activities, and 
                outcomes by program operators and grant recipients.
                    (B) Implementation.--Not later than 1 year after 
                the date of enactment of this Act, each workforce 
                development program receiving Federal funds shall use 
                the common terms and definitions.
                    (C) Use.--Upon adoption by the appropriate Federal 
                agencies, the common definitions for terminology 
                developed and reported pursuant to section 455 of the 
                Job Training Partnership Act (29 U.S.C. 1735(b)) shall 
                be utilized in interpreting and compiling the core data 
                elements. Notwithstanding any other provision of 
                Federal law, such common definitions shall be utilized 
                in lieu of existing program definitions for similar 
                data elements.
            (4) Recommendations.--Not later than 180 days after the 
        date all of the Members of the National Board are appointed, 
        the National Board shall make recommendations to the 
        Secretaries of Labor, Education, and Health and Human Services, 
        and the heads of other agencies operating workforce development 
        programs, on common definitions for other terms, including 
        terms relating to--
                    (A) program status, including--
                            (i) applicant;
                            (ii) participant;
                            (iii) terminee; and
                            (iv) training-related placement;
                    (B) program eligibility, including--
                            (i) family income; and
                            (ii) economically disadvantaged 
                        individuals; and
                    (C) other terms considered appropriate by the 
                National Board, such as common cost categories.
            (5) Amendments.--If any of the proposed common definitions 
        require amendment to existing laws, the National Board shall 
        submit to Congress recommendations for legislative action not 
        later than 9 months after the date all of the members of the 
        National Board are appointed.
    (c) Placement Accountability.--
            (1) In general.--The purpose of this subsection is to 
        establish a placement accountability system using a cost-
        effective data source with information on job placement, 
        earnings, and job retention, to foster accountability by all 
        federally funded workforce development programs.
            (2) Performance monitoring.--Each workforce development 
        program that receives Federal funds shall--
                    (A) engage in continuous performance self-
                monitoring by measuring, at a minimum, the quarterly 
                employment status and earnings of each recipient of 
                assistance under such program; and
                    (B) monitor each recipient of assistance for a 
                period of not less than 1 year, beginning on the date 
                on which the recipient no longer receives assistance 
                under such program.
            (3) Information matching.--
                    (A) Core data.--Each workforce development program 
                that receives Federal funds shall provide the 
                information described in subsection (b) regarding 
                program participants to the State agency responsible 
                for labor market information designated in title V.
                    (B) Matching.--The State agency responsible for 
                labor market information designated in title V shall, 
                in conjunction with the Bureau of Labor Statistics, 
                match the information provided pursuant to subparagraph 
                (A) with quarterly employment and earnings records.
            (4) Reimbursement.--Requesting programs shall reimburse the 
        State agency responsible for wage record data for the cost of 
        matching such information. Notwithstanding any other provision 
        of Federal law, requesting programs may use Federal funds for 
        such reimbursement.
            (5) Confidentiality.--Requesting pro- grams--
                    (A) shall protect the confidentiality of wage 
                record data through the use of recognized security 
                procedures; and
                    (B) may not retain such data for more than 10 
                years.
            (6) Submission to state council.--The State agency 
        responsible for labor market information shall submit the 
        results of the matching to the State Council, in accordance 
        with procedures and schedules specified by the National Board 
        and the Secretary.
            (7) Responsibility of governors.--The Governor of each 
        State shall ensure the submission of the matched data to the 
        State Council, the National Board, the Secretary, and other 
        Federal entities, as required by the National Board.
    (d) Dissemination of Quality Assurance.--The information obtained 
under subsection (c) shall be made available to--
            (1) the State Council of the State in which the program is 
        located;
            (2) the local workforce development boards in the State in 
        which the program is located; and
            (3) consumers of labor market information to judge 
        individual program performance in an easily accessible format.
    (e) Consistent Funding Cycles.--
            (1) In general.--All federally funded workforce development 
        training activities shall, to the extent practicable, be funded 
        on a consistent funding cycle basis.
            (2) Recommendations for funding cycle.--Not later than 180 
        days after the date on which all of the members of the National 
        Board are appointed, the National Board shall make 
        recommendations to Congress on the appropriate funding cycle to 
        be used for all workforce development programs and activities.

                   Subtitle B--State Level Activities

SEC. 211. STATE WORKFORCE DEVELOPMENT COUNCILS.

    (a) Establishment.--Each State desiring to participate in the 
development of an integrated and accountable workforce development 
system under the procedures specified in section 203(b) shall establish 
a State Workforce Development Council (referred to in this Act as a 
``State Council'') or have located within such State an existing entity 
that is similar to a State Council and that includes members who are 
representatives of employers and workers.
    (b) Purpose.--Each State Council shall serve as the principal 
advisory board for the Governor of such State for all programs included 
in the integrated workforce development system of such State.
    (c) Functions.--Each State Council shall assume the functions and 
responsibilities of councils and commissions required under Federal law 
that are part of the integrated workforce development system of such 
State.

SEC. 212. MEMBERSHIP.

    (a) In General.--
            (1) Representatives of business and industry and organized 
        labor.--Each State Council shall be comprised of individuals 
        who are appointed by the Governor for a term of not less than 2 
        years from among--
                    (A) representatives of business and industry, who 
                shall constitute not less than 33 percent of the 
                membership of the State Council, including individuals 
                who are members of local workforce development boards;
                    (B) representatives of organized labor who shall 
                constitute not less than 25 percent of the membership 
                of the State Council and shall be selected from among 
                individuals nominated by recognized State labor 
                federations; and
                    (C) representatives of secondary and postsecondary 
                academic or vocational education institutions.
            (2) Additional members.--Each State Council may include one 
        or more qualified members who are appointed by the Governor 
        from among representatives of the following:
                    (A) Community-based organizations.
                    (B) Nongovernmental organizations that have a 
                history of successfully protecting the rights of 
                individuals with disabilities or older persons.
                    (C) Units of general local government or consortia 
                of such units.
                    (D) State officials responsible for administering 
                programs described in sections 103 and 104 and included 
                in the integrated system.
                    (E) The State legislature.
                    (F) Any local program that receives Federal funding 
                from any program included in the integrated workforce 
                development system of the State.
    (b) Ex Officio.--
            (1) Nonvoting members.--The Governor may appoint ex officio 
        additional nonvoting members to the State Council.
            (2) Expertise.--The Governor of the State shall ensure that 
        the State Council and the staff of the State Council have 
        sufficient expertise to effectively carry out the duties and 
        functions of the State Council described under the laws 
        relating to the applicable program.

SEC. 213. CHAIRPERSON.

    The Governor of the State shall appoint a chairperson of the State 
Council who shall be a representative of the business community.

SEC. 214. DUTIES AND RESPONSIBILITIES.

    (a) State Workforce Development Policy Blueprint.--The State 
Council shall assist the Governor to prepare and submit to the National 
Board a biennial report to be known as the State Workforce Development 
Policy Blueprint (referred to in this Act as the ``State Blueprint''). 
The State Blueprint shall--
            (1) serve as a strategic plan for integrating federally 
        funded workforce development programs included in an integrated 
        system of the State, established pursuant to section 203(b), 
        with State-funded job training, employment, employment-related 
        education, and economic development activities;
            (2) summarize and analyze information about training needs 
        of critical industries in the State contained in the local 
        workforce development policy blueprints developed by the 
        workforce development boards;
            (3) establish State goals for the integrated workforce 
        development system and a common core set of performance 
        measures and standards for programs included in the system, to 
        be used in lieu of existing performance measures and standards 
        for each of the included programs;
            (4) analyze how the businesses and labor organizations of 
        the State are--
                    (A) progressing in the restructuring of the work 
                place to provide continuous learning;
                    (B) improving the skills and abilities of front-
                line workers of such businesses; and
                    (C) participating in State and local efforts to 
                transform federally funded education and job training 
                programs into a coherent and accountable workforce 
                development system;
            (5) utilize information available from the State Report 
        Card and other sources to analyze the relative effectiveness of 
        individual workforce development programs within the State and 
        of the State's workforce development system as a whole;
            (6) evaluate the progress being made within the State in 
        streamlining, consolidating, and reforming the workforce 
        development system of the State in accordance with the purposes 
        contained in section 2(b) and the framework for State 
        implementation contained in the implementation grant proposal 
        of the State;
            (7) describe how service to special hard-to-serve 
        populations is to be maintained;
            (8) identify how any funds that a State may be receiving 
        under section 203(b) are to be utilized in conjunction with 
        existing resources to continuously improve the effectiveness of 
        the workforce development system of the State;
            (9) describe the method to be used to allocate funds 
        received under section 203(b) in a fair and equitable manner 
        among unified service delivery areas;
            (10) specify the additional elements, if any, to be 
        included in operating agreements between local workforce 
        development boards and one-stop career centers;
            (11) specify additional criteria, if any, for selection of 
        one-stop career centers;
            (12) specify the nonemployment-related outcome measures 
        that will be used for the workforce development system;
            (13) specify the nature and scope of the budget authority 
        for local workforce development boards in the State; and
            (14) supplant federally required planning reports for 
        programs under the integrated workforce development system of 
        the State.
    (b) State Workforce Development Report Card.--The State Council 
shall assist the Governor of the State to issue an annual report to be 
known as the State Workforce Development Report Card (referred to in 
this Act as the ``State Report Card''). The State Report Card shall 
describe the performance of all workforce development programs 
operating in the State that receive Federal funding and any additional 
State-funded programs that the Governor may choose to include. The 
State Report Card shall--
            (1) include an integrated budget that documents the annual 
        spending, number of clients served, and types of services 
        provided for workforce development programs for the State as a 
        whole and for each unified service delivery area within the 
        State;
            (2) assess the level of services to hard-to-serve 
        populations in relation to the number served and outcomes for 
        those populations during the preceding 3 years;
            (3) utilize information available from the quality 
        assurance system established under section 204 to assess--
                    (A) employment and earnings experiences of 
                individuals who have received assistance from each 
                workforce development program operated in the State; 
                and
                    (B) relative employment and earnings experiences of 
                participants receiving services from each one-stop 
                career center in the State;
            (4) include an analysis of other nonemployment-related 
        results for each workforce development program operating within 
        the State; and
            (5) include a report of annual employment trends and 
        earnings (by industry and occupation) in the State and each 
        unified service delivery area, to assist State and local 
        policymakers, training providers, and users of the system to 
        link the training provided to the skill and labor force needs 
        of local employers.
    (c) Workforce Development Board Certification and Effectiveness 
Criteria.--Each State Council shall--
            (1) assist the Governor to certify each local workforce 
        development board; and
            (2) make recommendations to the Governor for criteria that 
        will be used to judge the effectiveness of each of the 
        workforce development boards of the State.

SEC. 215. DEVELOPMENT OF QUALITY ASSURANCE SYSTEMS AND CONSUMER 
              REPORTS.

    (a) In General.--The State Council shall develop a quality 
assurance system to complement and expand upon the quality assurance 
system established in section 204 in order to provide customers of job 
training services with consumer reports on the supply, demand, price, 
and quality of job training services in each unified service delivery 
area in the State.
    (b) Selection of Tools and Measures.--Each State shall select the 
tools and measures that are appropriate to the needs of such State, 
including--
            (1) collecting and organizing service provider performance 
        data in accordance with information generated from the State 
        Report Card under section 214(b), the financial and management 
        information system designed pursuant to section 218, and the 
        labor market information system of the State described in 
        section 501; and
            (2) conducting surveys as appropriate to ascertain customer 
        satisfaction.
    (c) Collection and Dissemination.--The State Council shall, in 
conjunction with the local workforce development boards, establish 
mechanisms for collecting and disseminating the quality assurance 
information on a regular basis to--
            (1) individuals seeking employment;
            (2) employers;
            (3) policymakers at the Federal, State, and local levels; 
        and
            (4) training and education providers.
    (d) Assurances.--Each public and private education, training, and 
career development service provider receiving Federal funds under a 
program in an integrated system of the State pursuant to section 203(b) 
shall collect and provide the quality assurance information required 
under this section.

SEC. 216. ADMINISTRATION.

    (a) Authorities.--Each State Council shall be independent of other 
State workforce development agencies and have the authority to--
            (1) employ staff; and
            (2) receive and disburse funds.
    (b) Special Projects.--Each State Council may fund and operate 
special pilot or demonstration projects for purposes of research or 
continuous improvement of system performance.
    (c) Limitation on Use of Funds.--Not more than 5 percent of the 
funds received by the State from an implementation grant under section 
203(b) shall be used for the administration of the State Council.

SEC. 217. ESTABLISHMENT OF UNIFIED SERVICE DELIVERY AREAS.

    (a) Recommendations.--Each State Council shall make recommendations 
to the Governor of such State for the establishment of unified service 
delivery areas that may be used as intrastate geographic boundaries, to 
the extent practicable, for all workforce development programs in an 
integrated system of the State pursuant to section 203(b).
    (b) Establishment.--Each State receiving an implementation grant 
under section 203(b) shall, based upon the recommendations of the State 
Council, and in consultation and cooperation with local communities, 
establish unified service delivery areas throughout the State for the 
purpose of providing community-wide workforce development assistance in 
one-stop career centers under section 234.
    (c) Responsibilities.--In establishing unified service delivery 
areas, the Governor, in consultation with the State Council and local 
communities--
            (1) shall take into consideration existing--
                    (A) labor market areas;
                    (B) units of general local government;
                    (C) service delivery areas established under 
                section 101 of the Job Training Partnership Act (29 
                U.S.C. 1511); and
                    (D) the distance traveled by individuals to receive 
                services;
            (2) may merge existing service delivery areas; and
            (3) may not approve a total number of unified service 
        delivery areas that is greater than the total number of service 
        delivery areas in existence in the State on the date of 
        enactment of this Act.

SEC. 218. FINANCIAL AND MANAGEMENT INFORMATION SYSTEMS.

    (a) In General.--Each State shall use a portion of the funds it 
receives under section 203(a) to design a unified financial and 
management information system. Each State that receives an 
implementation grant under section 203(b) shall require that all 
programs designated in the integrated system use the unified financial 
and management information system.
    (b) Requirements.--Each unified financial and management 
information system shall--
            (1) notwithstanding any other provision of Federal law, 
        supplant federally required fiscal reporting and monitoring for 
        each individual program included in the integrated system;
            (2) be used by all agencies involved in workforce 
        development activities, including one-stop career centers which 
        shall have the capability to track the overall public 
        investments within the State and unified service delivery 
        areas, and to inform policymakers as to the results being 
        achieved through that investment;
            (3) contain a common structure of financial reporting 
        requirements, fiscal systems, and monitoring for all workforce 
        development expenditures included in the integrated system that 
        shall utilize the common data elements and definitions included 
        in subsection (b) of section 204; and
            (4) support local efforts to establish unified service 
        systems, including intake and eligibility determination for all 
        financial aid sources.

SEC. 219. CAPACITY BUILDING GRANTS.

    From funds made available to a State for implementation pursuant to 
section 203(b) or development pursuant to section 203(a), the State 
shall develop a strategy to enhance the capacity of the institutions, 
organizations, and staff involved in State and local workforce 
development activities by providing services such as--
            (1) training for members of the local workforce development 
        boards;
            (2) training for front-line staff of any local education or 
        training service provider or one-stop career center;
            (3) technical assistance regarding managing systemic 
        change;
            (4) customer service training;
            (5) organization of peer-to-peer network for training, 
        technical assistance, and information sharing;
            (6) organizing a best practices database covering the 
        various workforce development system components; and
            (7) training for State and local staff on the principles of 
        quality management and decentralizing decisionmaking.

SEC. 220. PERFORMANCE STANDARDS FOR UNIFIED SERVICE DELIVERY AREAS.

    (a) In General.--The Governor of each State that implements an 
integrated workforce development system under section 203(b) may, in 
consultation with the State Council, the local workforce development 
boards in the State, and employees of any of the job training programs 
included in the integrated system or the employee organizations of such 
employees, make adjustments to existing performance standards for 
programs in such system in the unified service delivery area of the 
State.
    (b) Criteria.--Criteria developed pursuant to subsection (a) may 
include such factors as--
            (1) placement, retention, and earnings of participants in 
        unsubsidized employment, including--
                    (A) earnings at 1, 2, and 4 quarters after 
                termination from the program; and
                    (B) comparability of wages 1 year after termination 
                from the program with wages prior to participation in 
                the program;
            (2) acquisition of skills pursuant to a skill standards and 
        skill certification system endorsed by the National Skill 
        Standards Board established pursuant to section 503 of the 
        National Skill Standards Act of 1994;
            (3) the satisfaction of participants and employers with 
        services provided and employment outcomes; and
            (4) the quality of services provided and the level of 
        services provided to hard-to-serve populations, such as low-
        income individuals and older workers.
    (c) Adjustments.--Each Governor of a State that implements an 
integrated workforce development system under section 203(b) shall, 
within parameters established by the National Board, and after 
consultation with the workforce development boards in the State, 
prescribe adjustments to the performance criteria prescribed under 
subsections (a) and (b) for the unified service delivery areas based 
on--
            (1) specific economic, geographic, and demographic factors 
        in the State and in regions within the State; and
            (2) the characteristics of the population to be served, 
        including the demonstrated difficulties in serving special 
        populations.
    (d) Use of Criteria.--The performance criteria developed pursuant 
to this section shall be utilized in lieu of similar criteria for 
programs receiving Federal funding included in the integrated system of 
the State, to the extent determined by the State Council subject to the 
approval of the National Board.

                   Subtitle C--Local Level Activities

SEC. 231. WORKFORCE DEVELOPMENT BOARDS.

    (a) Establishment.--In each State receiving an implementation grant 
under section 203(b), and subject to subsection (b) of this section, 
the local elected officials of each unified service delivery area shall 
establish a workforce development board to administer the workforce 
development assistance provided by all the programs in the integrated 
workforce development system in such area.
    (b) Exception.--States with a single unified delivery area with 
contiguous borders shall not be subject to the requirement of 
subsection (a).
    (c) Membership.--
            (1) In general.--Each workforce development board shall be 
        comprised of--
                    (A) representatives of business and industry, who 
                shall constitute a majority of the board and who shall 
                be business leaders in the unified service delivery 
                area;
                    (B)(i) representatives of State and local organized 
                labor organizations, who shall be selected from among 
                individuals nominated by recognized State labor 
                federations; and
                    (ii) representatives of community-based 
                organizations, who shall be selected from among those 
                individuals nominated by officers of such 
                organizations;
                    (C) representatives of educational institutions;
                    (D) community leaders, such as leaders of--
                            (i) economic development agencies;
                            (ii) human service agencies and 
                        institutions;
                            (iii) veterans organizations; and
                            (iv) entities providing job training;
                    (E) representatives of nongovernmental 
                organizations that have a history of successfully 
                protecting the rights of individuals with disabilities 
                or older persons; and
                    (F) a local elected official, who shall be a 
                nonvoting member.
            (2) Special rule.--The representatives described in 
        paragraph (1)(B) shall comprise not less than 33 percent of the 
        membership of the Board.
    (d) Nominations.--
            (1) Business and industry representatives.--
                    (A) In general.--The representatives of business 
                and industry under paragraph (1) of subsection (c) 
                shall be selected by local elected officials from among 
                individuals nominated by general purpose business 
                organizations after consultation with, and receiving 
                recommendations from, other business organizations in 
                the unified service delivery area.
                    (B) Definition.--For purposes of this paragraph, 
                the term ``general purpose business organization'' 
                means an organization that admits to membership any 
                for-profit business operating within the unified 
                service delivery area.
            (2) Labor representatives.--The representatives of 
        organized labor under subsection (c)(1)(B)(i) shall be selected 
        from among individuals recommended by recognized State and 
        local labor federations.
            (3) Other members.--The members of the workforce 
        development board described in subparagraphs (A), (D), and (E) 
        of subsection (c)(1) shall be selected by chief local elected 
        officials in accordance with subsection (e) from individuals 
        recommended by interested organizations.
            (4) Expertise.--The State Council and Governor of each 
        State shall ensure that the workforce development board and the 
        staff of the State Council have sufficient expertise to 
        effectively carry out the duties and functions of existing 
        local boards described under the laws relating to the 
        applicable program.
    (e) Appointment Process.--In the case of a unified service delivery 
area--
            (1) in which there is one unit of general local government, 
        the chief elected official of such unit shall determine the 
        number of members to serve on the workforce development board 
        and appoint the members to such board from the individuals 
        nominated or recommended under subsection (d); and
            (2) in which there are 2 or more units of general local 
        government, the chief elected officials of such units shall 
        determine the number of members to serve on the workforce 
        development board and appoint the members to such board from 
        the individuals nominated or recommended under subsection (d), 
        in accordance with an agreement entered into by such units of 
        general local government or, in the absence of such an 
        agreement, by the Governor of the State in which the unified 
        service delivery area is located.
    (f) Terms.--Each workforce development board shall establish, in 
its bylaws, terms to be served by its members, who may serve until the 
successors of such members are appointed.
    (g) Vacancies.--Any vacancy on a workforce development board shall 
be filled in the same manner as the original appointment was made.
    (h) Removal for Cause.--Any member of a workforce development board 
may be removed for cause in accordance with procedures established by 
the workforce development board.
    (i) Chairperson.--Each workforce development board shall select a 
chairperson, by a majority vote of the members of the board, from among 
the members of the workforce development board who are from business or 
industry. The term of the chairperson shall be determined by the board.
    (j) Duties.--Each workforce development board--
            (1) shall--
                    (A) prepare a workforce development board policy 
                blueprint in accordance with section 232;
                    (B) issue an annual unified service delivery area 
                report card in accordance with section 233;
                    (C) review and comment on the local plans for all 
                programs included in the integrated workforce 
                development system of the State and operating within 
                the unified service delivery area, prior to the 
                submission of such plans to the appropriate State 
                Council, or the relevant Federal agency, if no State 
                approval is required;
                    (D) oversee the operations of the one-stop career 
                center established in the unified service delivery area 
                under section 234, including the responsibility to--
                            (i) designate one-stop career center 
                        operators within the unified service delivery 
                        area consistent with selection criteria 
                        specified in section 214(a)(11);
                            (ii) develop and approve the budgets and 
                        annual operating plans of the one-stop career 
                        centers;
                            (iii) establish annual performance 
                        standards, customer service quality criteria, 
                        and outcome measures for the one-stop career 
                        centers, consistent with measures developed 
                        pursuant to sections 220;
                            (iv) assess the results of programs and 
                        services;
                            (v) ensure that services and skills 
                        provided through the centers are of high 
                        quality and are relevant to labor market 
                        demands; and
                            (vi) determine priorities for client 
                        services from Federal funding sources in the 
                        system;
                    (E) develop a strategy to disseminate consumer 
                reports produced under section 215 to workers, 
                jobseekers, and employers, and other individuals in the 
                unified service delivery area; and
            (2) may apply to the Secretary for a matching grant 
        pursuant to section 404 in the amount of 50 percent of the cost 
        of establishing innovative models of workplace training and 
        upgrading of incumbent workers.
    (k) Administration.--
            (1) In general.--Each local workforce development board 
        shall have the authority to receive and disburse funds made 
        available for carrying out the provisions of this Act and shall 
        employ its own staff, independent of local programs and service 
        providers.
            (2) Funding.--Each workforce development board shall 
        receive a portion of its funding from the implementation grant 
        of the State, with additional funds made available from 
        participating programs.
    (l) Conflict of Interest.--No member of a workforce development 
board shall cast a vote on the provision of services by that member (or 
any organization which that member directly represents) or vote on any 
matter that would provide direct financial benefit to such member.

SEC. 232. WORKFORCE DEVELOPMENT BOARD POLICY BLUEPRINT.

    (a) In General.--Each workforce development board shall prepare and 
submit to the State Council a biennial report, to be known as the 
workforce development board policy blueprint, except that in States 
with a single unified service delivery area, the additional elements 
required in the regional blueprint shall be incorporated into the State 
Blueprint.
    (b) Requirements.--The workforce development board policy blueprint 
shall--
            (1) include a list of the key industries and industry 
        clusters of small- to mid-size firms that are most critical to 
        the current and future economic competitiveness of unified 
        service delivery area;
            (2) identify the workforce development needs of the 
        critical industries and industry clusters;
            (3) summarize the capacity of local education and training 
        providers to respond to the workforce development needs;
            (4) indicate how the local workforce development programs 
        intend to strategically deploy resources available from 
        implementation grants and existing programs operating in the 
        unified service delivery area to better meet the workforce 
        development needs of critical industries and industry clusters 
        in the unified service delivery area and enhance program 
        performance;
            (5) include a plan to develop one-stop career centers, as 
        described in section 234, including an estimate of the costs in 
        personnel and other resources to develop a network adequate to 
        provide universal access to such centers in the local labor 
        market;
            (6) describe how services will be maintained to all groups 
        served by the participating programs in accordance with their 
        legislative intent, including hard-to-serve populations;
            (7) identify actions for building the capacity of the 
        workforce development system in the unified service delivery 
        area; and
            (8) report on the level and recent changes in earned income 
        of workers in the local labor market, in relation to State and 
        national levels, by occupation and industry.
    (c) Use in Other Reports.--The workforce development board policy 
blueprint may be utilized in lieu of local planning reports required by 
any other Federal law for any program included in the integrated 
workforce development system, subject to the approval of the State 
Council.

SEC. 233. REPORT CARD.

    (a) In General.--Each workforce development board shall annually 
prepare and submit to the State Council a unified service delivery area 
report card in accordance with this section. The report card shall 
describe the performance of all workforce development programs and 
service providers, including the one-stop career centers, operating in 
the area that is included in the integrated workforce development 
system. In States with a single unified service delivery area, the 
State Council shall prepare the report card.
    (b) Requirements.--The report card shall--
            (1) report on the relationship between services provided 
        and the local labor market needs as described in the workforce 
        development board policy blueprint;
            (2) using the quality assurance system information 
        established pursuant to section 215, include an analysis of 
        employment-related, and other outcomes achieved by the programs 
        and service providers operating in the area;
            (3) identify the performance of the one-stop career 
        centers;
            (4) detail the economic and demographic characteristics of 
        individuals served compared to the characteristics of the 
        general population of the unified service delivery area, and 
        the jobseekers, workers, and businesses of such area; and
            (5) assess the level of services to hard-to-serve 
        populations in relation to the number served and the outcomes 
        for those during the preceding 3 years.

SEC. 234. ONE-STOP CAREER CENTERS.

    (a) Establishment.--Each workforce development board receiving 
funds under an implementation grant awarded under section 203(b) shall 
develop and implement a network of one-stop career centers in the 
unified service delivery area of the workforce development board. The 
one-stop career centers shall provide jobseekers, workers, and 
businesses universal access to a comprehensive array of quality 
employment, education, and training services.
    (b) Procedures.--Each workforce development board shall, in 
conjunction with local elected official or officials in the unified 
service delivery area, and consistent with criteria specified in 
section 214(a)(11), select a method for establishing one-stop career 
centers.
    (c) Eligible Entities.--Each entity within the unified service 
delivery area that performs the functions specified in subsections (e) 
and (f) for any of the programs in the integrated workforce development 
system shall be eligible to be selected as a one-stop career center.
    (d) Period of Selection.--Each one-stop career center operator 
shall be designated for two-year periods. Every 2 years, one-stop 
career center designations shall be reevaluated by the workforce 
development board based on performance indicated in the unified service 
delivery area report card and other criteria established by the 
workforce development board and the State Council.
    (e) Brokerage Services to Individuals.--Each one-stop career center 
shall make available to the public, at no cost--
            (1) outreach to make individuals aware of, and encourage 
        the use of, services available from workforce development 
        programs operating in the unified service delivery area;
            (2) intake and orientation to the information and services 
        available through the one-stop career center;
            (3) preliminary assessments of the skill levels (including 
        appropriate testing) and service needs of individuals, 
        including--
                    (A) basic skills;
                    (B) occupational skills;
                    (C) prior work experience;
                    (D) employability;
                    (E) interests;
                    (F) aptitude; and
                    (G) supportive service needs;
            (4) job search assistance, including resume and interview 
        preparation and workshops;
            (5) information relating to the supply, demand, price, and 
        quality of job training services available in each unified 
        service delivery area in the State pursuant to section 501(c);
            (6) information relating to eligibility requirements and 
        sources of financial assistance for entering the programs 
        described in 501(c)(2)(C); and
            (7) referral to appropriate job training, employment, and 
        employment-related education or support services in the unified 
        service delivery area.
    (f) Brokerage Services to Employers.--Each one-stop career center 
shall provide to each requesting employer--
            (1) information relating to supply, demand, price, and 
        quality of job training services available in each unified 
        service delivery area in the State, consistent with the 
        consumer reports described in section 215;
            (2) customized screening and referral of individuals for 
        employment;
            (3) customized assessment of skills of the current workers 
        of the employer;
            (4) an analysis of the skill needs of the employer; and
            (5) other specialized employment and training services.
    (g) Conflicts.--Any entity that performs one-stop career center 
functions shall be prohibited from making an education and training 
referral to itself.
    (h) Fees.--
            (1) In general.--Except as provided in paragraph (2), each 
        one-stop career center may charge fees for the services 
        described in subsection (f), subject to approval by the 
        workforce development board.
            (2) Limitation.--No fee may be charged for any service that 
        an individual would be eligible to receive at no cost under a 
        participating program.
            (3) Income.--Income received by a one-stop career center 
        from the fees collected shall be used by the workforce 
        development board to expand or enhance one-stop career centers 
        available within the unified service delivery area.
    (i) Core Data Elements and Common Definitions.--Each one-stop 
career center shall adopt the core data elements and common definitions 
as specified in section 204(b), and updated by the National Board.
    (j) Operating Agreements.--
            (1) In general.--Each one-stop career center operator shall 
        enter into a written agreement with the workforce development 
        board concerning the operation of the center.
            (2) Approval.--The agreement shall--
                    (A) be subject to the approval of--
                            (i) the local chief elected official or 
                        officials;
                            (ii) the State Council; and
                            (iii) the Governor of the State in which 
                        the center is located; and
                    (B) shall address--
                            (i) the services to be provided;
                            (ii) the role that local officials of the 
                        United States Employment Service will play in 
                        the operation of one stop career centers in the 
                        unified service delivery area;
                            (iii) the financial and nonfinancial 
                        contributions to be made to the centers from 
                        funds made available pursuant to section 203(b) 
                        and all participating workforce development 
                        programs;
                            (iv) methods of administration;
                            (v) procedures to be used to ensure 
                        compliance with statutory requirements of the 
                        programs in the integrated workforce 
                        development system; and
                            (vi) other elements, as required by the 
                        workforce development board or the State 
                        Council under section 214(a).

SEC. 235. CAPACITY BUILDING.

    (a) In General.--Each workforce development board shall identify 
actions to be taken for building the capacity of the workforce 
development system in such unified service delivery, except that in 
States with a single unified delivery area, the State Council shall be 
responsible for carrying out the activities under this section.
    (b) Funding.--The State Council shall make funds available to each 
workforce development board for capacity building activities from funds 
made available under section 203(b) and any other funds within the 
integrated workforce development budget of the State. For the 
activities described in subsection (c), the workforce development board 
may also submit requests to the State Council to redirect a portion of 
training and technical assistance resources available from any of the 
workforce development programs included in the integrated system within 
the unified service development area of the workforce development 
board.
    (c) Types of Activities.--Capacity building activities may 
include--
            (1) training of workforce development board members;
            (2) staff training;
            (3) technical assistance regarding managing systemic 
        change;
            (4) customer service training;
            (5) organization of a peer-to-peer network for training, 
        technical assistance, and information sharing;
            (6) organizing a best practices database covering the 
        various system activities; and
            (7) training for local staff on the principles of quality 
        management and decentralized decisionmaking.

    TITLE III--ENHANCING INDIVIDUAL CHOICE THROUGH TRAINING ACCOUNTS

SEC. 301. PURPOSE.

    It is the purpose of this title to promote the establishment of a 
market-driven system for the provision of services that will enhance 
the quality and range of choices available to individuals for obtaining 
appropriate education and training.

SEC. 302. ESTABLISHMENT.

    (a) In General.--Each State receiving an implementation grant 
pursuant to section 203(b) shall establish a training account system 
for the provision of education and training that meets the requirements 
of this title.
    (b) Definition.--For purposes of this title, the term ``education 
and training'' means the services described in clauses (v) and (ix) of 
section 204(b)(1)(C) and such other services as the Secretary, in 
consultation with the Secretary of Education, the Secretary of Health 
and Human Services, and the National Board, determines are appropriate.

SEC. 303. PARTICIPATION OF WORKFORCE DEVELOPMENT PROGRAMS.

    (a) Dislocated Workers.--Notwithstanding the Job Training 
Partnership Act, each State that receives an implementation grant 
pursuant to section 203(b) shall use the funds made available under 
title III of the Job Training Partnership Act and the funds 
appropriated under section 3(a) to provide education and training under 
title III of such Act only through the training account system 
established pursuant to this title. Notwithstanding section 315 of such 
Act, not less than 60 percent of the funds available to the State under 
such title III shall be used to carry out the training account system.
    (b) Additional Programs.--Beginning 1 year or later after a State 
has commenced administration of the training account system described 
in subsection (a), the State may provide education and training through 
the training account system to adults eligible to participate in other 
workforce development programs if--
            (1) the State--
                    (A) identifies the additional workforce development 
                programs in the State blueprint developed pursuant to 
                section 214(a) or in an amendment to such blueprint; 
                and
                    (B) describes how such programs will be integrated 
                into such system; and
            (2) not less than two-thirds of the voting members of the 
        National Workforce Development Board approves the inclusion of 
        the programs identified pursuant to paragraph (1) into the 
        training account system established in the State.

SEC. 304. ADMINISTRATION.

    (a) Application To Establish Account.--
            (1) In general.--An individual who is eligible to receive 
        education and training under a workforce development program 
        participating in the training account system pursuant to this 
        title may apply to establish a training account only at a one-
        stop career center established under section 234.
            (2) Duties of career centers.--The career center shall--
                    (A) assist such individual in completing the 
                application;
                    (B) provide information relating to the operation 
                of the training account system; and
                    (C) ensure that such individual is aware of 
                consumer information available in the center relating 
                to providers of education and training, local 
                occupations in demand, and other appropriate labor 
                market factors.
    (b) Duration; Amount of Account.--
            (1) Duration.--Upon approval of an application submitted 
        pursuant to subsection (a), an individual may be provided a 
        training account for a maximum of 2 years within any 5-year 
        period.
            (2) Amount of account.--The total amount deposited into a 
        training account for an individual for any fiscal year shall be 
        equal to the greater of the maximum amount of a Pell grant 
        established--
                    (A) pursuant to paragraphs (2)(A) and (3)(A) of 
                section 401(b) of the Higher Education Act of 1965 for 
                such year; or
                    (B) by an appropriation Act for such year.
    (c) Use of Funds.--An account established under subsection (b) may 
be used by an individual to pay for education and training provided by 
a service provider meeting the eligibility requirements described in 
section 305.
    (d) Administrative Procedures.--Not later than 180 days after the 
date of enactment of this Act, the Secretary, in consultation with the 
Secretary of Education, and the Secretary of Health and Human Services 
shall issue regulations applicable to the administration of a training 
account under this title that, consistent with the other provisions of 
this title, specify--
            (1) the application requirements relating to a training 
        account;
            (2) the method of payment to providers from a training 
        account, including appropriate payment schedules and 
        appropriate payment for education or training in which an 
        individual enrolled but did not complete;
            (3) the financial and management information systems to be 
        used to administer the training accounts;
            (4) the Federal, State, and local roles with respect to 
        oversight of the training account system and enforcement of the 
        requirements of this title;
            (5) the manner in which the costs of administering the 
        training account system will be determined and apportioned;
            (6) the performance-based information to be submitted by 
        eligible providers of education and training and procedures for 
        verifying the accuracy of such information; and
            (7) such other procedures or conditions the Secretary 
        determines are necessary to ensure the effective implementation 
        of the training account system.
    (e) Description of System in State Blueprint.--The State blueprint 
developed pursuant to section 214(a) shall include a description of how 
the State will administer the training account system and will ensure 
compliance with the requirements of this title.

SEC. 305. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF EDUCATION AND 
              TRAINING SERVICES.

    (a) Eligibility Requirements.--A provider of education and training 
services shall be eligible to receive funds from a training account 
under this title if such provider--
            (1) is either--
                    (A) eligible to participate in programs under title 
                IV of the Higher Education Act of 1965; or
                    (B) determined to be eligible under the procedures 
                described in subsection (b); and
            (2) uses the common definitions and performance-based 
        information described in section 204(b).
    (b) Alternative Eligibility Procedure.--
            (1) In general.--The Governor of each State receiving an 
        implementation grant pursuant to section 203(b) shall establish 
        an alternative eligibility procedure for providers of education 
        and training services in such State that desire to receive 
        funds from a training account under this title, but are not 
        eligible to participate in programs under title IV of the 
        Higher Education Act of 1965. Such procedure shall establish 
        minimum acceptable levels of performance for such providers 
        based on factors and guidelines developed by the Secretary, 
        after consultation with the Secretary of Education. Such 
        factors shall be comparable in rigor and scope to those 
        provisions of part H of such title of such Act that are used to 
determine an institution of higher education's eligibility to 
participate in programs under such title as are appropriate to the type 
of provider seeking eligibility under this subsection and the nature of 
the education and training services to be provided.
            (2) Limitation.--Notwithstanding paragraph (1), if the 
        participation of an institution of higher education in any of 
        the programs under title IV of the Higher Education Act of 1965 
        is terminated, such institution shall not be eligible to 
        receive funds under this Act for a period of 2 years beginning 
        on the date of such termination.
    (c) Administration.--
            (1) State agency.--Upon the recommendation of the State 
        Council, the Governor of each State receiving an implementation 
        grant pursuant to section 203(b) shall designate a State agency 
        or agencies to collect, verify, and disseminate the 
        performance-based information submitted by eligible providers.
            (2) Application.--A provider of education and training 
        services that desires to be eligible to receive funds under 
        this title shall submit to the State agency or agencies the 
        information required under paragraph (1) at such time and in 
        such form as such State agency or agencies may require.
            (3) List of eligible providers.--The State agency or 
        agencies shall compile a list of eligible providers, 
        accompanied by the performance-based information submitted, and 
        disseminate such list and information to the one-stop career 
        centers in the State.

SEC. 306. EVALUATION AND RECOMMENDATIONS.

    The National Workforce Development Board shall evaluate the 
administration and effectiveness of the training account system in 
enhancing individual choice and promoting high-quality education and 
training and shall include the evaluation, accompanied by 
recommendations, in the National Report Card developed pursuant to 
section 202(c)(1) and the joint resolution to the President and the 
Congress pursuant to section 104(b).

SEC. 307. REPORT RELATING TO INCOME SUPPORT.

    (a) Sense of Congress.--It is the sense of the Congress that--
            (1) many dislocated workers and economically disadvantaged 
        adults are unable to enroll in long-term job training because 
        such workers and adults lack income support after unemployment 
        compensation is exhausted;
            (2) evidence suggests that long-term job training is among 
        the most effective adjustment service in assisting dislocated 
        workers and economically disadvantaged adults to obtain 
        employment and enhance wages; and
            (3) there is a need to identify options relating to how 
        income support may be provided to enable dislocated workers and 
        economically disadvantaged adults to participate in long-term 
        job training.
    (b) Report.--Not later than 120 days after the date of enactment of 
this Act, the Secretary of Labor shall submit to the Congress a report 
that--
            (1) examines the need for income support to enable 
        dislocated workers and economically disadvantaged adults to 
        participate in long-term job training;
            (2) identifies options relating to how income support can 
        be provided to such workers and adults; and
            (3) contains such recommendations as the Secretary of Labor 
        determines are appropriate.

                   TITLE IV--PRIVATE-PUBLIC LINKAGES

SEC. 401. PURPOSE.

    The purpose of this title is to begin to more explicitly link 
federally funded workforce development programs with training practices 
and systems utilized by workers and firms in the private sector.

SEC. 402. INCENTIVES TO ENCOURAGE WORKER TRAINING.

    Not later than 180 days after the date of enactment of this Act, 
the National Board shall make recommendations to the appropriate 
committees of Congress and the President on what measures can be taken, 
including changes in the tax codes--
            (1) to encourage employers and workers to invest in 
        training and skills upgrading;
            (2) to encourage employers to hire and train hard-to-serve 
        individuals; and
            (3) to provide income support to enable jobseekers and 
        workers to participate in long-term training programs.

SEC. 403. LABOR DAY REPORT ON PRIVATE-PUBLIC TRAINING PRACTICES.

    Beginning on September 1, 1996, and in each succeeding year 
thereafter, the National Board shall issue a report that--
            (1) analyzes how businesses in the United States are--
                    (A) restructuring the workplace to provide 
                continuous learning for the employees of such 
                businesses;
                    (B) improving the skills and abilities of the 
                front-line workers of such businesses; and
                    (C) integrating public workforce development 
                programs into private sector training systems;
            (2) highlights innovative approaches that other countries 
        are taking to encourage firms to invest in training the front-
        line workers of such firms and to ensure that publicly funded 
        workforce development programs in such countries are relevant 
        to the training needs of workers and firms in the private 
        sector;
            (3) reports on the progress being made by the National 
        Skills Standards Board established pursuant to section 503 of 
        the National Skill Standards Act and the degree to which 
        publicly funded education and training providers throughout the 
        United States are incorporating industry-based skill standards 
        developed by the Board into program offerings of such programs; 
        and
            (4) makes recommendations to Congress and the President on 
        ways to improve linkages between federally funded industrial 
        modernization programs and federally funded workforce 
        development programs.

SEC. 404. MATCHING GRANTS TO ENCOURAGE INCUMBENT WORKER TRAINING.

    (a) Purpose.--The purpose of this section is to establish a program 
to award competitive matching grants to assist local workforce 
development boards respond to the training needs of front-line workers 
in the communities in which such boards are located.
    (b) Application.--Each local workforce development board seeking a 
grant under this section shall submit an application to the State 
Council of the State in which such board is located, at such time, in 
such manner, and containing such information as the Secretary may 
prescribe. Not later than 30 days after receiving an application, the 
State Council shall review and forward the application, with comments, 
to the National Board and the Secretary.
    (c) Selection of Grantees.--
            (1) In general.--The Secretary, with the advice of the 
        National Board, shall award a grant under this section only if 
        the Secretary determines, from the grant application, that the 
        grant will be used to maintain or enhance the competitive 
        position of local industries that are committed to making the 
        investments necessary to develop the skills of their workers.
            (2) Criteria.--In awarding grants under this section, the 
        Secretary shall take into account--
                    (A) the policy priorities and training needs of 
                local industries identified in the local workforce 
                development policy blueprints;
                    (B) whether there is a demonstrated need for skill 
                upgrading to maintain firm or industry competitiveness;
                    (C) whether the application contains proposals for 
                training that will directly lead to increased earnings 
                of front-line workers;
                    (D) whether the labor organizations representing 
                such front-line workers support the grant proposal;
                    (E) initiatives by firms or firm partnerships to 
                develop high performance work organizations;
                    (F) whether the grant proposal meets the training 
                needs of small- and medium-sized firms;
                    (G) whether the grant proposal is focused on 
                workers with substantial firm or industry tenure; and
                    (H) whether the proposed industry activities are 
                integrated with private sector activities under the 
                School-to-Work Opportunities Act of 1994.
    (d) Use of Funds.--Grants awarded under this section shall be used 
for skill enhancement and training activities that may include--
            (1) basic skills;
            (2) occupational skills;
            (3) statistical process control training;
            (4) total quality management techniques;
            (5) team building and problem solving skills; and
            (6) other training or activities that will result in the 
        increased likelihood of job retention, higher wages, or 
        increased firm competitiveness.
    (e) Funding.--
            (1) Cost share.--
                    (A) Federal share.--A grant awarded under this 
                section shall be in an amount equal to 50 percent of 
                the cost of carrying out the grant proposal.
                    (B) Local share.--As a condition to receiving 
                Federal funds under this section, local businesses, 
                industry associations, and worker organizations shall 
                provide funding in an amount equal to 50 percent of the 
                cost of carrying out the grant proposal.
            (2) Limitations.--
                    (A) Use of funds.--Amounts awarded under this 
                section shall not be used to pay the wages of workers 
                during the training of such workers.
                    (B) Additional funding.--Each recipient of funds 
                under this section shall certify that such funds shall 
                supplement and not supplant other public or private 
                funds otherwise spent on worker training.

          TITLE V--INTEGRATED LABOR MARKET INFORMATION SYSTEM

SEC. 501. INTEGRATED LABOR MARKET INFORMATION.

    (a) Findings.--The Congress finds that accurate, timely, and 
relevant data for the Nation, States, and localities are required to 
achieve Federal domestic policy goals, such as--
            (1) economic growth and productivity through--
                    (A) career planning and successful job training and 
                job searching by youth and adults; and
                    (B) efficient hiring, effective worker training, 
                and appropriate location and organization of work by 
                employers;
            (2) accountability, through planning and evaluation, in 
        workforce development and job placement programs funded by the 
        Federal Government or developed by other public or private 
        entities;
            (3) equity and efficiency in the allocation of Federal 
        funds; and
            (4) greater understanding of local labor market dynamics 
        through the support of research.
    (b) Purpose.--The purpose of this title is to provide for the 
development, maintenance, and continuous improvement of a nationwide 
integrated system for the collection, analysis, and dissemination of 
labor market information.
    (c) System.--
            (1) Development.--The Secretary, in cooperation with the 
        National Board, the State Councils, where appropriate, and the 
        Governors, shall oversee and ensure the development, 
        maintenance, and continuous improvement of a nationwide 
        integrated system of labor market information that will--
                    (A) promote comprehensive workforce development 
                planning, evaluation, and service integration;
                    (B) meet and be responsive to the customer needs of 
                jobseekers, employers, and public officials at all 
                government levels who develop economic and social 
                policy, allocate funds, plan and implement workforce 
                development systems, are involved in career planning or 
                exploration, and deliver integrated services;
                    (C) serve as the foundation for automated 
                information delivery systems that provide easy access 
                to labor market, occupational and career information; 
                and
                    (D) meet the Federal domestic policy goals 
                specified in section (a).
            (2) Information to be included.--The integrated system 
        described in paragraph (1) shall include statistical data from 
        survey and projection programs and data from administrative 
        reporting systems which, taken together, shall enumerate, 
        estimate, and project the supply of and demand for labor at 
        national, State, and local levels in a timely manner, including 
        data on--
                    (A) labor market demand, such as--
                            (i) profiles of occupations that describe 
                        job duties, education, and training 
                        requirements, skills, wages, benefits, working 
                        conditions, and the industrial distribution of 
                        occupations;
                            (ii) current and projected employment 
                        opportunities and trends, by industry and 
                        occupation, including growth projections by 
                        industry, and growth and replacement need 
                        projections by occupation;
                            (iii) job openings, job locations, hiring 
                        requirements, and application procedures;
                            (iv) profiles of industries and employers 
                        in the local labor market describing the nature 
                        of the work performed, employment skill and 
                        experience requirements, specific occupations, 
                        wages, hours, and benefits, and hiring 
                        patterns;
                            (v) industries, occupations, and geographic 
                        locations facing significant change or 
                        dislocation; and
                            (vi) information maintained in a 
                        longitudinal manner on the quarterly earnings, 
                        establishment, industry affiliation, and 
                        geographic location of employment for all 
                        individuals for whom such information is 
                        collected by the States;
                    (B) labor supply, such as--
                            (i) educational attainment, training, 
                        skills, skill levels, and occupations of the 
                        population;
                            (ii) demographic, socioeconomic 
                        characteristics, and current employment status 
                        of the population, including self-employed, 
                        part-time, and seasonal workers;
                            (iii) jobseekers, including their education 
                        and training, skills, skill levels, employment 
                        experience, and employment goals;
                            (iv) the number of workers displaced by 
                        permanent layoffs and plant closings by 
                        industry, occupation, and geographic location; 
                        and
                            (v) current and projected training 
                        completers who have acquired specific 
                        occupational or work skills and competencies; 
                        and
                    (C) consumer information, which shall be current, 
                comprehensive, localized, automated, and in a form 
                useful for immediate employment, entry into training 
                and education programs, and career exploration, 
                including--
                            (i) job openings, locations, hiring 
                        requirements, application procedures, and 
                        profiles of employers in the local labor market 
                        describing the nature of the work performed, 
                        employment requirements, wages, benefits, and 
                        hiring patterns;
                            (ii) jobseekers, including their education 
                        and training, skills, skill levels, employment 
                        experience, and employment goals;
                            (iii) the labor market experiences, in 
                        terms of wages and annual earnings, by industry 
                        and occupation, of workers in local labor 
                        markets, by sex and racial or ethnic group, 
                        including information on hard-to-serve 
                        populations;
                            (iv) education courses, training programs, 
                        and job placement programs, including 
                        information derived from statistically based 
                        performance evaluations and their user 
                        satisfaction ratings; and
                            (v) eligibility for funding and other 
                        assistance in job training, job search, income 
                        support, supportive services, and other 
                        employment services.
            (3) Technical standards.--The integrated labor market 
        information system shall use common standards that will 
        include--
                    (A) standard classification and coding systems for 
                industries, occupations, skills, programs, and courses;
                    (B) nationally standardized definitions of terms 
                consistent with subsections (b), (c), and (d) of 
                section 204 and with paragraph (2);
                    (C) a common system for designating geographic 
                areas consistent with the unified service delivery 
                areas;
                    (D) data standards and quality control mechanisms; 
                and
                    (E) common schedules for data collection and 
                dissemination.
            (4) Availability of information.--Data generated by the 
        labor market information system including information on 
        quarterly employment and earnings, together with matched data 
        on individuals who have participated in a federally supported 
        job training activity, shall be made available to the National 
        Board for use in the preparation of the National Report Card. 
        Aggregate level information shall be made available to 
        consumers in automated information delivery systems.
            (5) Dissemination, technical assistance, and research.--The 
        Secretary, in cooperation with the National Board, the 
        Governors, and State Councils, where appropriate, shall oversee 
        the development, maintenance, and continuous improvement of--
                    (A) dissemination mechanisms for data and analysis, 
                including mechanisms that may be standardized among the 
                States;
                    (B) programs of technical assistance and staff 
                development for States and localities, including 
                assistance in adopting and utilizing automated systems 
                and improving the access, through electronic and other 
                means, to labor market information; and
                    (C) programs of research and demonstration, on ways 
                to improve the products and processes authorized by 
                this section.

SEC. 502. RESPONSIBILITIES OF THE NATIONAL BOARD.

    (a) In General.--The National Board shall plan, review, and 
evaluate the Nation's integrated labor market information system.
    (b) Duties.--The National Board shall--
            (1) be responsible for providing policy guidance;
            (2) evaluate the integrated labor market information system 
        and ensure the cooperation of participating agencies; and
            (3) recommend to the Secretary needed improvements in 
        Federal, State, and local information systems to support the 
        development of an integrated labor market information system.

SEC. 503. RESPONSIBILITIES OF THE SECRETARY.

    (a) In General.--The Secretary shall manage the investment in an 
integrated labor market information system by--
            (1) reviewing all requirements for labor market information 
        across all programs within the system;
            (2) developing a comprehensive annual budget, including 
        funds at the Federal level, funds allotted to States by 
        formula, and funds supplied to the States by contracts with 
        departmental entities;
            (3) administering grants allotted to States by formula;
            (4) negotiating and executing contracts with the States;
            (5) coordinating the activities of Federal workforce 
        development agencies responsible for collecting the statistics 
        and program administrative data that comprise the integrated 
        system and disseminating labor market information at the 
        National, State, regional, and local levels; and
            (6) ensuring that standards are designed to meet the 
        requirements of chapter 35 of title 44, United States Code, and 
        are coordinated and consistent with other appropriate Federal 
        standards established by the Bureau of Labor Statistics and 
        other statistical agencies.
    (b) Requirements.--In carrying out the duties of the Secretary 
under this section, the Secretary shall--
            (1) in consultation with the States and the private sector, 
        define a common core set of labor market information data 
        elements as specified in section 501(c)(2) that will be 
        consistently available across States in an integrated labor 
        market information system; and
            (2) ensure that data is sufficiently timely and locally 
        detailed for use, including uses specified in subsections (b) 
        and (c)(2) of section 501.
    (c) Annual Plan.--
            (1) In general.--The Secretary shall annually prepare and 
        submit to the National Board for review, a plan for improving 
        the Nation's integrated labor market information system. The 
        Secretary shall also submit the plan, together with the 
        comments and recommendations of the National Board, to the 
        President and Congress.
            (2) Contents.--The plan shall describe the budgetary needs 
        of the labor market information system, and shall describe the 
        activities of such Federal agencies with respect to data 
        collection, analysis, and dissemination for each fiscal year 
        succeeding the fiscal year in which the plan is developed. The 
        plan shall--
                    (A) establish goals for system development and 
                improvement based on information needs for achieving 
                economic growth and productivity, accountability, fund 
                allocation equity, and an understanding of labor market 
                characteristics and dynamics;
                    (B) specify the common core set of data that shall 
                be included in the integrated labor market information 
                system;
                    (C) describe the current spending on integrated 
                labor market information activities from all sources, 
                assess the adequacy of the funds and identify the 
                specific budget needs of the Federal and State 
                workforce development agencies with respect to 
                implementing and improving an integrated labor market 
                information system and the activities of such agencies 
                with respect to data compilation, analysis, and 
                dissemination for each fiscal year in which the plan is 
                developed;
                    (D) develop a budget for an integrated labor market 
                information system that accounts for all funds in 
                subparagraph (C) and any new funds made available 
                pursuant to this Act, and describes the relative 
                allotments to be made for--
                            (i) the operation of the cooperative 
                        statistical programs under section 501(c)(2);
                            (ii) ensuring that technical standards are 
                        met pursuant to section 501(c)(3); and
                            (iii) consumer information and analysis, 
                        matching data, dissemination, technical 
                        assistance, and research under paragraphs 
                        (2)(C), (4), and (5) of section 501(c);
                    (E) describe the existing system, information 
                needs, and the development of new data programs, 
                analytical techniques, definitions and standards, 
                dissemination mechanisms, governance mechanisms, and 
                funding processes to meet new needs;
                    (F) summarize the results of an annual review of 
                the costs to the States of meeting contract 
                requirements for data production, including a 
                description of how the budget request for an integrated 
                labor market information system will cover such costs;
                    (G) describe how the State Councils will be 
                reimbursed for carrying out the duties for labor market 
                information;
                    (H) recommend methods to simplify and integrate 
                automated client intake and eligibility determination 
                systems across workforce development programs to permit 
                easy determination of eligibility for funding and other 
                assistance in job training, job search, income support, 
                supportive services, and other reemployment services; 
                and
                    (I) provide for the involvement of States in 
                developing the plan by holding formal consultations 
                conducted in cooperation with representatives of the 
                Governor or State Council, where appropriate, pursuant 
                to a process established by the National Board.
    (d) Assistance From Other Agencies.--The Secretary may receive 
assistance from member and other Federal agencies (such as the Bureau 
of Labor Statistics and the Employment and Training Administration of 
the Department of Labor, the Administration on Children and Families of 
the Department of Health and Human Services, and the Office of Adult 
and Vocational Education and the National Center for Education 
Statistics of the Department of Education) to assist in the collection, 
analysis, and dissemination of labor market information, and in the 
provision of training and technical assistance to users of information, 
including States, employers, youth, and adults.

SEC. 504. RESPONSIBILITIES OF GOVERNORS.

    (a) Designation of State Agency.--The Governor of each State and 
the State Council, where appropriate, shall designate one State agency 
to be the agency responsible for--
            (1) the management and oversight of a statewide 
        comprehensive integrated labor market information system; and
            (2) developing a State unified labor market information 
        budget on an annual basis.
    (b) Requirements.--As a condition of receiving Federal financial 
assistance under this title, the Governor or State Council, where 
appropriate, shall--
            (1) develop, maintain, and continuously improve a 
        comprehensive integrated labor market information system, which 
        shall--
                    (A) include the data specified in section 
                501(c)(2);
                    (B) be responsive to the needs of the State and the 
                localities of such State for planning and evaluative 
                data, including employment and economic analyses and 
                projections, and program outcome data on employment and 
                earnings for the quality assurance system under section 
                204; and
                    (C) meet Federal standards under chapter 35 of 
                title 44, United States Code, and other appropriate 
                Federal standards established by the Bureau;
            (2) ensure the performance of contract and grant 
        responsibilities for data compilation, analysis, and 
        dissemination;
            (3) conduct such other data collection, analysis, and 
        dissemination activities as will ensure the availability of 
        comprehensive State and local labor market information;
            (4) coordinate the data collection, analysis, and 
        dissemination activities of other State and local agencies, 
        with particular attention to State education, economic 
        development, human services, and welfare agencies, to ensure 
        complementary and compatibility among data; and
            (5) cooperate with the National Board and the Secretary by 
        making available, as requested, data for the evaluation of 
        programs covered by the labor market information and the 
        quality assurance systems under section 204.
    (c) Noninterference With State Functions.--Nothing in this Act 
shall limit the ability of the State agency designated under this 
section to conduct additional data collection, analysis, and 
dissemination activities with funds derived from sources other than 
this Act.
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