Calendar No. 406

103D CONGRESS

2D SESSION S. 1964

A BILL

To establish a comprehensive system of reemploytem, and for other purposes. effective national labor market information sys- training information and services, to develop an point of access to employment, education and one-stop career centers to serve as a common off workers, to facilitate the establishment of ment services and retraining for permanently laid

APRIL 11, 1994

Read the second time and placed on the calendar
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Calendar No. 406

103D CONGRESS

2D SESSION S. 1964

To establish a comprehensive system of reemployment services and retraining

for permanently laid off workers, to facilitate the establishment of onestop career centers to serve as a common point of access to employment,

education and training information and services, to develop an effective

national labor market information system, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 24 (legislative day, FEBRUARY 22), 1994

Mr. METZENBAUM (for himself, Mr. KENNEDY, Mr. SIMON, Mr. PELL, Mr.

DODD, Mr. WOFFORD, Mr. MITCHELL, Mr. FORD, Mr. DASCHLE, Mrs.

BOXER, Ms. MOSELEY-BRAUN, and Ms. MIKULSKI) introduced the following bill; which was read the first time

APRIL 11, 1994

Read the second time and placed on the calendar

A BILL

To establish a comprehensive system of reemployment services and retraining for permanently laid off workers,

to facilitate the establishment of one-stop career centers

to serve as a common point of access to employment,

education and training information and services, to develop an effective national labor market information system, and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

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

5 Retraining Act of 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

7 The table of contents is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Findings and purpose.

Sec. 4. Authorization of appropriations.

Sec. 5. Definitions.

TITLE I—COMPREHENSIVE PROGRAM FOR WORKER

REEMPLOYMENT

Sec. 101. Allotment of funds.

Sec. 102. Recapture and use of unexpended funds.

Sec. 103. Eligibility for services.

PART A—STATE AND SUBSTATE DELIVERY SYSTEM

Sec. 111. State administration and oversight.

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

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

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

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

Sec. 116. State grants for job retention projects.

Sec. 117. Designation of substate administrative structure.

Sec. 118. Establishment of career centers.

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

Sec. 120. Certificates of continuing eligibility.

PART B—FEDERAL DELIVERY OF SERVICES

Sec. 131. National discretionary grant program.

Sec. 132. Disaster relief employment assistance.

Sec. 133. Evaluation, research, and demonstrations.

Sec. 134. Capacity building and technical assistance.

Sec. 135. Federal bypass authority.

PART C—PERFORMANCE STANDARDS AND QUALITY ASSURANCE SYSTEMS

Sec. 151. Customer service compact.

Sec. 152. Performance standards.

Sec. 153. Customer feedback.

Sec. 154. Eligibility requirements for service providers.
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PART D—GENERAL REQUIREMENTS

Sec. 161. General requirements.

Sec. 162. Benefits.

Sec. 163. Labor standards.

Sec. 164. Grievance procedure.

PART E—FISCAL ADMINISTRATIVE PROVISIONS

Sec. 171. Program year.

Sec. 172. Prompt allocation of funds.

Sec. 173. Monitoring.

Sec. 174. Fiscal controls; sanctions.

Sec. 175. Reports, recordkeeping and investigations.

Sec. 176. Administrative adjudication.

Sec. 177. Nondiscrimination.

Sec. 178. Judicial review.

Sec. 179. Administrative provisions.

Sec. 180. Obligational authority.

Sec. 181. Criminal provisions.

Sec. 182. References.

PART F—MISCELLANEOUS PROVISIONS

Sec. 191. Effective date.

Sec. 192. Repealers.

Sec. 193. Transition.

TITLE II—ONE-STOP CAREER CENTER SYSTEM

Sec. 201. Purpose.

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

Sec. 211. General requirements.

Sec. 212. Workforce investment boards.

Sec. 213. Establishment of one-stop career centers.

Sec. 214. Services to be provided through one-stop career centers.

Sec. 215. Participating programs.

Sec. 216. Operating agreements.

Sec. 217. Quality assurance systems.

Sec. 218. State Human Resource Investment Council.

PART B—GRANTS AND WAIVERS TO PROMOTE THE DEVELOPMENT AND

IMPLEMENTATION OF ONE-STOP CAREER CENTER SYSTEM

Sec. 231. State planning and development grants.

Sec. 232. State implementation grants.

Sec. 233. Waiver of Federal statutory and regulatory requirements.

Sec. 234. Pooling of administrative resources.

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

CENTER SYSTEMS

Sec. 251. Customer service compact.

Sec. 252. Additional State responsibilities.

Sec. 253. Additional Federal responsibilities.
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PART D—EFFECTIVE DATE

Sec. 271. Effective date.

TITLE III—NATIONAL LABOR MARKET INFORMATION SYSTEM

Sec. 301. Purpose.

Sec. 302. National strategy.

Sec. 303. Components of system.

Sec. 304. Coordination.

Sec. 305. Effective date.

TITLE IV—REINVENTION LABS FOR JOB TRAINING FOR THE

ECONOMICALLY DISADVANTAGED

Sec. 401. Establishment of labs.

Sec. 402. Modification of tuition definition.

Sec. 403. Effective date.

1 SEC. 3. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—Congress finds that—

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

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

7 (2) a substantial number of Americans lose jobs

8 because of structural changes in the economy rather

9 than cyclical downturns, with more than two million

10 full-time workers permanently displaced annually

11 due to plant closures, production cutbacks, and

12 layoffs;

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

15 with tax revenues and economic output declining

16 when workers are idle and demands on Government

17 support rise;
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1 (4) all Americans—whether seeking first jobs,

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

3 continuous transition and must have access to new

4 skills and better job and career information in order

5 to harness this change for increased economic secu6 rity and a rising standard of living;

7 (5) our current worker adjustment policies were

8 designed for an earlier economy and often do not

9 equip Americans to prosper in the current and

10 emerging atmosphere of constant change;

11 (6) the primary governmental response to job

12 loss—the unemployment insurance system—is effec13 tive in providing income support to persons on tem14 porary lay-offs, but was not designed to build reem15 ployment security, and is ill-equipped by itself to en16 sure that those people who are permanently laid off

17 will receive needed reemployment services;

18 (7) the current government response to disloca19 tion is a patchwork of categorical programs, with

20 varying eligibility requirements and different sets of

21 services and benefits;

22 (8) job search assistance and retraining are not

23 available to all who need them;

24 (9) a lack of comprehensive labor market infor25 mation—
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1 (A) means that job seekers, training pro2 viders, and employers must make hiring and

3 training decisions based on fragmented and in4 complete data;

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

7 (C) hinders the ability of rapidly growing

8 firms to recruit and screen new employees; and

9 (10) administrative and regulatory obstacles

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

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

13 jobs.

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

15 (1) promote equity and efficiency by consolidat16 ing the array of specific programs for dislocated

17 workers into a single comprehensive program for all

18 workers who have been permanently laid off, regard19 less of the cause of dislocation;

20 (2) facilitate effective, quality training for per21 manently laid-off workers who want and need it;

22 (3) provide customer-centered, high-quality em23 ployment and training services that give dislocated

24 workers the tools to make informed career and train25 ing choices;
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1 (4) provide universal access to basic reemploy2 ment services, including assessment of skill levels

3 and service needs, labor market information, and job

4 search assistance;

5 (5) begin to transform the fragmented employ6 ment and training system through a network of

7 streamlined, one-stop career centers providing uni8 versal access to all Americans who want and need

9 new jobs, better jobs, and first jobs;

10 (6) replicate and expand the innovative efforts

11 of States and localities to provide comprehensive,

12 high-quality reemployment and training systems;

13 and

14 (7) create a National Labor Market Informa15 tion System that gives employers, training providers,

16 students, job seekers, and employees high-quality

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

18 and other occupational information.

19 SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

20 (a) TITLE I.—There are authorized to be appro21 priated to carry out title I—

22 (1) $1,465,000,000 for fiscal year 1995; and

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

24 succeeding fiscal year.
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1 (b) TITLES II AND III.—There are authorized to be

2 appropriated to carry out titles II and III—

3 (1) $250,000,000 for each of fiscal year 1995

4 through 1999; and

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

6 fiscal years 2000 through 2003.

7 SEC. 5. DEFINITIONS.

8 For the purposes of this Act, the following definitions

9 apply:

10 (1) The term ‘‘career center’’ means such cen11 ter established pursuant to section 118.

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

13 means private nonprofit organizations which are rep14 resentative of communities or significant segments

15 of communities and which provide education, train16 ing and related services.

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

18 includes State and local planning and zoning com19 missions or boards, community development agen20 cies, and other State and local agencies and institu21 tions responsible for regulating, promoting, or assist22 ing in State and local economic development.

23 (4) The term ‘‘Governor’’ means the chief exec24 utive of any State.
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1 (5) The term ‘‘labor market area’’ means an

2 economically integrated geographic area within

3 which individuals can reside and find employment

4 within a reasonable commuting distance or can

5 change employment without changing their place of

6 residence. Such areas shall be identified by the Sec7 retary in accordance with criteria used by the Bu8 reau of Labor Statistics of the Department of Labor

9 or the Bureau of the Census of the Department of

10 Commerce in defining such areas.

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

12 chief elected executive officer of a unit of general

13 local government in a substate area.

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

15 applied to women refers to occupations or fields of

16 work where women comprise less than 25 percent of

17 the individuals employed in such occupation or field

18 of work.

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

20 such center established pursuant to section 313.

21 (9) The term ‘‘private industry council’’ means

22 the private industry council established under sec23 tion 102 of the Job Training Partnership Act.

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

25 means representatives from labor organizations (in-
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1 cluding local, State, or national bodies, as appro2 priate) where such organization represents a sub3 stantial number of employees.

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

5 of Labor.

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

7 such an area as established in section 101 of the

8 Job Training Partnership Act.

9 (13) The term ‘‘service provider’’ means a pub10 lic agency, private nonprofit organization, or private11 for-profit entity that delivers basic reemployment,

12 intensive reemployment, educational, training, or

13 supportive services.

14 (14) The term ‘‘State’’ means any of the sev15 eral States, the District of Columbia, and the Com16 monwealth of Puerto Rico.

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

18 job training coordinating council established under

19 section 122 of the Job Training Partnership Act.

20 (16) The term ‘‘State Human Resource Invest21 ment Council’’ means the council established under

22 section 701 of the Job Training Partnership Act.

23 (17) The term ‘‘substate area’’ means that geo24 graphic area in a State established pursuant to sec25 tion 117.
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1 (18) The term ‘‘substate grantee’’ means that

2 agency, organization, or consortium thereof selected

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

4 (19) The term ‘‘unit of general local govern5 ment’’ means any general purpose political subdivi6 sion of a State which has the power to levy taxes

7 and spend funds, as well as general corporate and

8 police powers.

9 TITLE I—COMPREHENSIVE PROGRAM FOR

10 WORKER REEMPLOYMENT

11 SEC. 101. ALLOTMENT OF FUNDS.

12 (a) IN GENERAL.—Of the funds appropriated pursu13 ant to section 4(a) for any fiscal year, the Secretary

14 shall—

15 (1) allot 75 percent among the States in ac16 cordance with subsection (b); and

17 (2) reserve 25 percent to carry out part B, sub18 ject to the reservation required by subsection (e).

19 (b) ALLOTMENT AMONG STATES.—(1) Subject to the

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

21 allot the amount available in each fiscal year under sub22 section (a)(1) on the basis of the following factors:

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

24 among the States on the basis of the relative num25 ber of unemployed individuals who reside in each
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1 State as compared to the total number of unem2 ployed individuals in all the States.

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

4 among the States on the basis of the relative excess

5 number of unemployed individuals who reside in

6 each State as compared to the total excess number

7 of unemployed individuals in all the States. For pur8 poses of this paragraph, the term ‘‘excess number’’

9 means the number which represents unemployed in10 dividuals in excess of 4.5 percent of the civilian labor

11 force in the State.

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

13 among the States on the basis of the relative num14 ber of individuals who have been unemployed for

15 more than twenty-six weeks and who reside in each

16 State as compared to the total number of such indi17 viduals in all the States.

18 (2) As soon as satisfactory data are available under

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

20 available in each fiscal year under subsection (a)(1) as

21 follows:

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

23 on the basis of each of the factors described in sub24 paragraphs (A), (B), and (C) of paragraph (1), re-
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1 spectively, for a total of 75 percent of the amount

2 allotted.

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

4 on the basis of the relative number of dislocated

5 workers who reside in each State as compared to the

6 total number of dislocated workers in all States.

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

8 of its allotment percentage for the fiscal year preceding

9 the fiscal year for which the determination is made.

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

11 of its allotment percentage for the fiscal year preceding

12 the fiscal year for which the determination is made.

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

14 of this paragraph the allotment percentage of a State for

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

16 the State under this subsection.

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

18 percentage for fiscal year 1994 shall be the percentage of

19 funds allotted to the State under section 302 of the Job

20 Training Partnership Act.

21 (c) RESERVATIONS FOR STATE ACTIVITIES.—

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

23 of the amount allotted to the State under subsection

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

25 this title.
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1 (2) Of the amount reserved by the Governor

2 pursuant to paragraph (1)—

3 (A) not more than 15 percent shall be

4 available for the costs of administration of pro5 grams authorized under this title;

6 (B) not more than 20 percent shall be

7 available for the costs of administration of pro8 grams authorized under this title and the costs

9 of technical assistance; and

10 (C) not more than 5 percent shall be avail11 able to carry out the job retention projects au12 thorized under section 116.

13 (d) WITHIN STATE DISTRIBUTION.—

14 (1) The Governor shall allocate the remainder

15 of the amount allotted to the State under subsection

16 (b) to substate areas to carry out activities author17 ized under this title based on an allocation formula

18 prescribed by the Governor. Such formula may be

19 amended by the Governor not more than once for

20 each program year. Such formula shall include the

21 factors described in subsection (b) and such addi22 tional objective and measurable factors as the Gov23 ernor determines are appropriate.

24 (2) Of the amount allocated to each substate

25 area pursuant to paragraph (1) for each program
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1 year, not more than 15 percent shall be available for

2 the costs of administration.

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

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

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

6 allocated among Guam, the Virgin Islands, American

7 Samoa, the Commonwealth of the Northern Mariana Is8 lands, the Federated States of Micronesia, the Republic

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

10 authorized under this title.

11 (f) RESERVATIONS FOR NATIONAL ACTIVITIES.—Of

12 the remainder reserved by the Secretary under subsection

13 (a)(2):

14 (1) For each of fiscal years 1995 through

15 1999—

16 (A) not less than 80 percent shall be avail17 able for national discretionary grants under sec18 tions 131 and 132; and

19 (B) not more than 20 percent shall be

20 available for—

21 (i) evaluation of program perform22 ance, research, and pilot and demonstra23 tion projects described in section 133; and
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1 (ii) capacity building, staff develop2 ment and training, and technical assist3 ance described under section 134.

4 (2) For fiscal year 2000 and each succeeding

5 fiscal year—

6 (A) not less than 85 percent shall be avail7 able for national discretionary grants under sec8 tions 131 and 132; and

9 (B) not more than 15 percent shall be

10 available for—

11 (i) evaluation of program perform12 ance, research, and pilot and demonstra13 tion projects described in section 133; and

14 (ii) capacity building, staff develop15 ment and training, and technical assist16 ance described under section 134.

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

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

19 July 1, 1996 and thereafter, the Secretary shall, in ac20 cordance with this section—

21 (1) recapture funds appropriated for such pro22 gram years that are available for recapture, and

23 (2) use the funds recaptured under paragraph

24 (1) to carry out the national discretionary grant pro25 gram under section 131.
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1 (b) AMOUNTS AVAILABLE FOR RECAPTURE.—The

2 amount available for recapture is equal to—

3 (1) the amount by which the unexpended bal4 ance of the State allotment (under section 101(b))

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

6 year for which the determination under this section

7 is made exceeds 20 percent of such allotment for

8 that prior program year, plus

9 (2) the unexpended balance of the State allot10 ment from any program year prior to the program

11 year in which there is such excess.

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

13 awarded to the State from the discretionary funds of the

14 Secretary pursuant to sections 131 and 132 shall not be

15 included in calculating the amounts available for recap16 ture.

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

18 as a method of recapturing funds for the purpose of sub19 section (a)(1), reduce the allotment to the State under sec20 tion 101(b) for the program year subsequent to the pro21 gram year for which the determination is made by an

22 amount equal to the amount available for recapture.

23 SEC. 103. ELIGIBILITY FOR SERVICES.

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

25 receive services under this title if such individual—
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1 (1) has been permanently laid off from full2 time, part-time, or seasonal (including farmworkers

3 and fishermen) employment within the preceding

4 twelve-month period; and

5 (A) such individual is unlikely to obtain

6 employment in the same or similar occupation

7 due to obsolete skills or a lack of employment

8 opportunities; or

9 (B) such layoff resulted from any perma10 nent closure or any substantial layoff at a

11 plant, facility or enterprise;

12 (2) has received a notice that such individual

13 will be permanently laid off; and

14 (A) such individual is unlikely to obtain

15 employment in the same or similar occupation

16 due to obsolete skills or a lack of employment

17 opportunities; or

18 (B) such layoff will result from any perma19 nent closure or substantial layoff at a plant, fa20 cility, or enterprise;

21 (3) is employed at a facility where the employer

22 has publicly announced that such facility will be

23 closed within one year and such individual is un24 likely to—
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1 (A) remain employed with such employer

2 at another location; or

3 (B) retire permanently from the labor

4 force on or before such closure;

5 (4) is long-term unemployed and has limited op6 portunities for employment in the same or similar

7 occupation in which such individual was previously

8 employed;

9 (5) was self-employed (including farmers, fish10 ermen and ranchers) and is unemployed as a result

11 of general economic conditions in the community in

12 which such individual resides or because of natural

13 disasters;

14 (6) is certified as eligible under the transitional

15 certification of trade impacted workers program au16 thorized under title II of the Reemployment Act of

17 1994; or

18 (7) was identified and referred to the program

19 under this title, in accordance with regulations is20 sued by the Secretary, by a State worker profiling

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

22 Security Act.

23 (b) DISPLACED HOMEMAKERS.—An individual who is

24 a displaced homemaker shall be eligible to receive services

25 described in section 119(b) and such other services au-
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1 thorized under this title as the Governor determines are

2 appropriate to provide to such individuals if—

3 (1) the displacement occurred within the pre4 ceding twelve-month period,

5 (2) such individual is unemployed, and

6 (3) such individual meets the requirements re7 lating to services provided under this title, other

8 than the requirements of subsection (a).

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

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

11 layoff under which a recall is not expected within

12 twenty-six weeks.

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

14 period of unemployment defined by the Governor,

15 except that such period shall not be less than twen16 ty-seven weeks.

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

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

19 the Job Training Partnership Act.

20 PART A—STATE AND SUBSTATE DELIVERY

21 SYSTEM

22 SEC. 111. STATE ADMINISTRATION AND OVERSIGHT.

23 The State shall be responsible for developing and op24 erating administrative and management systems which en25 sure proper control and accountability for the use of
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1 funds, in accordance with the requirements of part E of

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

3 title.

4 SEC. 112. DESIGNATION AND FUNCTIONS OF STATE DIS5 LOCATED WORKER UNIT.

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

7 establish a dislocated worker unit at the State level (here8 after referred to as the ‘‘State dislocated worker unit’’)

9 to carry out the functions described in this section.

10 (b) FUNCTIONS OF UNIT.—

11 (1) RAPID RESPONSE.—The State dislocated

12 worker unit shall carry out the following rapid re13 sponse activities:

14 (A) Receive notices provided pursuant to

15 the Worker Adjustment and Retraining Notifi16 cation Act and collect information identifying

17 the site of other permanent closures and layoffs

18 affecting fifty or more workers.

19 (B) Establish contact with representatives

20 of the employer, affected workers and affected

21 unions, and affected substate grantees within

22 forty-eight hours of being informed of or other23 wise identifying such closure or layoff.

24 (C) Provide assistance on site within five

25 working days of being informed of or otherwise
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1 identifying such closure or layoff (unless rep2 resentatives of the affected workers agree to

3 defer the commencement of assistance), includ4 ing—

5 (i) the provision of information relat6 ing to, and assistance in obtaining access

7 to, available programs and services;

8 (ii) the provision of appropriate reem9 ployment services on an emergency basis;

10 and

11 (iii) the provision of basic reemploy12 ment services in a group setting.

13 (D) Promote the formation of worker-man14 agement transition assistance committees,

15 which meet the requirements of subsection (d),

16 by—

17 (i) providing immediate assistance in

18 the establishment of such committees, in19 cluding—

20 (I) providing immediate financial

21 assistance to cover start-up costs of

22 the committee;

23 (II) providing a list of individuals

24 from which the chairperson of the

25 committee may be selected; and
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1 (III) requesting the list of com2 mittee members from the employer

3 and union, or providing assistance in

4 the selection of worker representatives

5 in the event no union is present; and

6 (ii) providing technical assistance in

7 the development by such committees of a

8 strategy for assessing the employment and

9 training needs of each affected worker and

10 for obtaining the services and assistance

11 necessary to meet those needs, which may

12 include—

13 (I) providing technical advice as

14 well as information on sources of as15 sistance, and

16 (II) serving as liaison with other

17 public and private services and pro18 grams.

19 (E) Prepare an action plan for the provi20 sion of reemployment and training services to

21 eligible individuals, including group counseling,

22 preliminary assessments, and labor market in23 formation, which may include assistance in

24 planning for the establishment of an on-site

25 transition center described in section 115(c).
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1 (2) INFORMATION COLLECTION AND DISSEMI2 NATION.—The State dislocated worker unit shall

3 carry out the following information collection and

4 dissemination activities:

5 (A) Provide to employers and employees

6 throughout the State information relating to

7 the Worker Adjustment and Retraining Notifi8 cation Act, including the requirements of such

9 Act, and information relating to the eligibility

10 requirements and services and benefits available

11 under this title.

12 (B) Collect information relating to—

13 (i) economic dislocation, including po14 tential closings and layoffs and the impact

15 of closures and layoffs to which such unit

16 has responded, and

17 (ii) available programs and resources

18 within the State to serve affected workers.

19 (C) Disseminate the information collected

20 pursuant to subparagraph (B) to the Governor

21 to assist in providing an adequate information

22 base for effective program management, review,

23 and evaluation.
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1 (D) Disseminate information throughout

2 the State on the services and activities carried

3 out by the State dislocated worker unit.

4 (3) PROGRAM SUPPORT.—The State dislocated

5 unit shall carry out the following program support

6 activities:

7 (A) Provide technical assistance and advice

8 to substate grantees.

9 (B) Work with employers and representa10 tives of employees in promoting labor-manage11 ment cooperation to achieve the objectives of

12 this title.

13 (C) Assist each local community affected

14 by a mass layoff or plant closing in developing

15 and implementing an adjustment plan, includ16 ing assistance in obtaining access to State eco17 nomic development assistance.

18 (4) COORDINATION.—The State dislocated

19 worker unit shall exchange information and coordi20 nate programs with—

21 (A) the appropriate economic development

22 agency and job retention projects authorized

23 under section 116, for the purpose of identify24 ing potential layoffs and for the purpose of de25 veloping strategies to avert plant closings or
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1 mass layoffs and to accelerate the reemploy2 ment of dislocated workers;

3 (B) State education, training and social

4 services programs;

5 (C) State labor federations;

6 (D) State-level general purpose business

7 organizations; and

8 (E) all other programs available to assist

9 dislocated workers, including the Employment

10 Service, the unemployment insurance system,

11 one-stop career centers established under title

12 II of this Act, and student financial aid pro13 grams.

14 (c) COORDINATION WITH CAREER CENTERS.—In

15 carrying out this section, the State dislocated worker unit

16 shall coordinate its actions with the affected substate

17 grantees and career centers.

18 (d) WORKER-MANAGEMENT TRANSITION ASSISTANCE

19 COMMITTEES.—The worker-management transition as20 sistance committees promoted by the State dislocated

21 worker unit pursuant to subsection (b)(1)(D) shall ordi22 narily include (but not be limited to) the following:

23 (1) Shared and equal participation by workers

24 (and their representatives) and management, and
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1 which may include participation from community

2 representatives as appropriate.

3 (2) Shared financial participation between the

4 employer and the State, using funds provided under

5 this title in paying for the operating expenses of the

6 committee.

7 (3) A chairperson, to oversee and guide the ac8 tivities of the committee, who shall—

9 (A) be jointly selected by the worker and

10 management representatives of the committee,

11 (B) not be employed or under contract

12 with or members of the immediate family of

13 labor or management at the site, and

14 (C) provide advice and leadership to the

15 committee and prepare a report on its activities.

16 (4) Operations pursuant to a formal agreement,

17 terminated at will by the workers or management,

18 and terminated for cause by the Governor.

19 (e) COVERAGE OF LAYOFFS.—The Governor may au20 thorize the provision of the rapid response activities de21 scribed in subsection (b)(1) to layoffs of less than fifty

22 workers if such layoffs are determined by the Governor

23 to have a significant adverse economic impact on a local

24 community.
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1 (f) PLANT BUYOUT STUDY.—In a situation involving

2 an impending permanent closure or substantial layoff, a

3 State may provide funds, where other public or private re4 sources are not expeditiously available, for a preliminary

5 assessment of the advisability of having a company or

6 group, including the workers, purchase the plant and con7 tinue it in operation. Such assessment shall not include

8 a feasibility study relating to such purchase.

9 (g) PROHIBITION ON TRANSFER OF RESPONSIBIL10 ITY.—The State shall not transfer the responsibility for

11 the rapid response assistance functions of the State unit

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

13 carry out such functions through agreement, grant, con14 tract, or other arrangement with another entity, such as

15 a substate grantee or a career center.

16 (h) FEDERAL OVERSIGHT OF RAPID RESPONSE.—

17 The Secretary shall oversee the administration by each

18 State of the rapid response assistance services provided

19 in such State and evaluate the effectiveness, efficiency,

20 and timeliness of the delivery of such services. The Sec21 retary may establish performance standards relating to

22 the provision of such services by the State. If the Sec23 retary determines that such services are not being per24 formed adequately, the Secretary shall implement appro25 priate corrective action.
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1 SEC. 113. DEVELOPMENT AND MAINTENANCE OF STATE

2 AND LOCAL LABOR MARKET INFORMATION

3 SYSTEMS.

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

5 strategy described in section 302 of this Act to establish

6 a nationwide system of effective labor market information,

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

8 comprehensive labor market information system in the

9 State that—

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

11 dissemination of quality labor market information

12 that will enhance the employment opportunities

13 available to permanently laid off workers and other

14 individuals seeking employment, and

15 (2) provides support for needed improvements

16 or adjustments in current labor market information

17 systems and integrates such systems to meet local

18 and State labor market needs.

19 (b) CONTENT.—The labor market information de20 scribed in subsection (a)(1) shall include the information

21 specified in section 303(a) of this Act relating to the na22 tional labor market information system.

23 (c) STANDARDS FOR INFORMATION COLLECTION AND

24 DISSEMINATION.—The Governor shall ensure that data

25 collection and dissemination systems are developed in ac26 cordance with the technical standards specified in section
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1 303(b) of this Act relating to the national labor market

2 information system.

3 (d) COORDINATION OF DATA COLLECTION AND SUR4 VEY CONSOLIDATION.—Consistent with the technical

5 standards specified in section 303(b), the Governor shall

6 ensure, to the extent feasible that—

7 (1) automated technology will be used in data

8 collection and dissemination;

9 (2) the State dislocated worker unit, the sub10 state grantees, and the career centers under this

11 title have timely access to and exchange information

12 relating to quality labor market information;

13 (3) administrative records are designed to re14 duce paperwork; and

15 (4) available administrative data and multiple

16 surveys are shared or consolidated to reduce duplica17 tion of recordkeeping of State and local agencies.

18 (e) DESIGN OF STATE SYSTEM.—The Governor shall

19 designate an agent within the State to be responsible for

20 oversight and management of a statewide comprehensive

21 labor market and occupational information system that—

22 (1) meets the requirements of this section;

23 (2) provides such training and technical assist24 ance necessary to facilitate the collection of data and
31

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1 the dissemination of information through the pro2 grams assisted under this title;

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

4 cooperative agreements authorized in section 302;

5 and

6 (4) funds research, evaluation, and demonstra7 tion projects designed to make improvements in the

8 statewide labor market information system.

9 (f) COORDINATION OF RESOURCES.—The Governor

10 shall coordinate the activities carried out under this title

11 with the labor market information activities carried out

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

13 national labor market information program described in

14 title III of this Act. In maintaining the system described

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

16 otherwise available to the Governor for such purposes

17 under other Federal laws, such as the Job Training Part18 nership Act and the Wagner-Peyser Act.

19 (g) METHODS OF COLLECTION AND DISSEMINA20 TION.—In order to facilitate the collection and dissemina21 tion of the data described in subsection (b), the Governor

22 shall—

23 (1) identify and utilize cost-effective methods

24 for obtaining such data as are necessary to carry out

25 this section which, notwithstanding any other provi-
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1 sion of law, may include access to earnings records,

2 State employment security records, State aid to fam3 ilies with dependent children records, secondary and

4 post-secondary education records, and similar

5 records or measures, with appropriate safeguards to

6 protect the confidentiality of the information ob7 tained; and

8 (2) publish and make available labor market

9 and occupational supply and demand information

10 and career information to State agencies, public

11 agencies, libraries, employers, and individuals who

12 are in the process of making career choices.

13 SEC. 114. COORDINATION WITH WORKER PROFILING AND

14 RETRAINING INCOME SUPPORT PROGRAMS.

15 (a) WORKER PROFILING.—The Governor shall co16 ordinate programs under this title with the worker

17 profiling system authorized under title III of the Social

18 Security Act. Such coordination shall include methods for

19 ensuring the prompt referral, in accordance with regula20 tions issued by the Secretary, of the claimants identified

21 under such profiling system to career centers authorized

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

23 (b) RETRAINING INCOME SUPPORT.—The Governor

24 shall coordinate programs under this title with the retrain-
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1 ing income support program authorized under part A of

2 title II of the Reemployment Act of 1994.

3 SEC. 115. STATE SUPPLEMENTARY GRANTS FOR AREAS OF

4 SPECIAL NEED.

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

6 to provide the services authorized under section 119 to eli7 gible individuals in areas of the State experiencing sub8 stantial increases in the number of eligible individuals due

9 to plant closures, base closures and mass layoffs.

10 (b) ELIGIBLE ENTITIES.—The grants authorized

11 under subsection (a) may be awarded to—

12 (1) the substate grantees in the areas affected

13 by such closures and mass layoffs;

14 (2) employers and employer associations;

15 (3) transition assistance committees and other

16 employer-employee entities;

17 (4) representatives of employees;

18 (5) industry consortia; and

19 (6) State agencies.

20 (c) ESTABLISHMENT OF ADDITIONAL SERVICE CEN21 TERS.—

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

23 grant funds available under this section to establish

24 a center, including an on-site transition center de25 scribed in paragraph (2), at the site of a plant clo-
34

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1 sure, base closure or mass layoff to provide the serv2 ices described in section 119. Such center shall be

3 established after formal consultation with the sub4 state grantee for the affected area and shall be oper5 ated in coordination with the career centers in the

6 affected area.

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

8 available under this section may be used to establish

9 a transition center that—

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

11 base closure, or mass layoff for the purpose of

12 providing reemployment services to eligible indi13 viduals affected by such layoff or closure,

14 (B) includes substantial funding from

15 sources other than public funds,

16 (C) is operated with the concurrence and

17 participation of affected workers and their rep18 resentatives and the affected employer, includ19 ing the worker-management transition assist20 ance committee established in accordance with

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

22 (D) provides the reemployment services de23 scribed in sections 119 (b) and (c) directly or

24 through contracts with other entities, such as

25 outplacement agencies, and
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1 (E) is administered in coordination with

2 the career centers in the substate area, includ3 ing arrangements to ensure that the affected

4 workers have the opportunity to receive services

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

6 receiving such services at the transition center.

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

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

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

10 award grants to assist projects that—

11 (1) provide services to upgrade the skills of em12 ployed workers who are at risk of being permanently

13 laid off; and

14 (2) assist in retraining employed workers in

15 new technologies and work processes that will facili16 tate the conversion or restructuring of businesses

17 into high performance work organizations and avert

18 plant closings or substantial layoffs.

19 (b) STATE AND EMPLOYER CONTRIBUTION RE20 QUIRED.—In order for a project to be eligible for assist21 ance under subsection (a), the amount of the grant to be

22 awarded shall be matched by an equal amount provided

23 by a combination of—

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

25 other than federal funds; and
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1 (2) funds provided by the affected employers or

2 businesses.

3 (c) CONSULTATIONS.—Prior to awarding grants

4 under this section, the Governor shall consult with unions

5 representing affected workers regarding the proposed

6 projects.

7 SEC. 117. ESTABLISHMENT OF SUBSTATE ADMINISTRA8 TIVE STRUCTURE.

9 (a) DESIGNATION OF SUBSTATE AREAS.—

10 (1) The Governor of each State shall, after con11 sultation with the State council and local elected of12 ficials, designate substate areas for the State.

13 (2) Each service delivery area within a State

14 shall be included within a substate area and no serv15 ice delivery area shall be divided among two or more

16 substate areas.

17 (3) In making designations of substate areas,

18 the Governor shall consider—

19 (A) the availability of services throughout

20 the State;

21 (B) the capability to coordinate the deliv22 ery of services with other job training, human

23 services and economic development programs;

24 and
37

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1 (C) the geographic boundaries of labor

2 market areas within the State.

3 (4) Subject to paragraphs (2) and (3), the Gov4 ernor—

5 (A) shall designate as a substate area any

6 single service delivery area that—

7 (i) has a population of two hundred

8 thousand or more, and

9 (ii) requests such designation;

10 (B) shall designate as a substate area any

11 two or more contiguous service delivery areas—

12 (i) that in the aggregate have a popu13 lation of two hundred thousand or more,

14 and

15 (ii) that request such designation; and

16 (C) shall designate as a substate area any

17 concentrated employment program grantee for

18 a rural area described in section

19 101(a)(4)(A)(iii) of the Job Training Partner20 ship Act.

21 (5) The Governor may deny a request for des22 ignation under paragraph (4)(B) if the Governor de23 termines that such designation would not be consist24 ent with the effective delivery of services to eligible

25 dislocated workers in various labor market areas (in-
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1 cluding urban and rural areas) within the State, or

2 would not otherwise be appropriate to carry out the

3 purposes of this title.

4 (6) The Governor shall not designate as a sub5 state area any area with a population of less than

6 to hundred thousand unless such area meets the re7 quirements of paragraph (4)(C).

8 (7) From the funds reserved under section

9 101(c)(1), the Governor may award grants to en10 courage the formation of substate areas that are

11 based on labor market areas.

12 (8) The Governor may designate as substate

13 areas under this title areas designated as substate

14 areas under title III of the Job Training Partnership

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

16 meet the requirements of this subsection.

17 (9) The designations made under this sub18 section may not be revised more than once every

19 four years.

20 (b) DESIGNATION OF SUBSTATE GRANTEES.—

21 (1) AGREEMENT.—A substate grantee shall be

22 designated, on a quadrennial basis, for each substate

23 area. Such substate grantee shall be designated in

24 accordance with an agreement among the Governor,

25 the local elected official or officials of such area, and
39

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1 the private industry council or councils of such area.

2 Whenever a substate area is represented by more

3 than one such official or council, the respective offi4 cials and councils shall each designate representa5 tives, in accordance with procedures established by

6 the Governor (after consultation with the State

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

8 agreement cannot be reached on the selection of a

9 substate grantee, the Governor shall select the sub10 state grantee.

11 (2) ELIGIBILITY.—Entities eligible for designa12 tion as substate grantees include—

13 (A) private industry councils in the sub14 state area;

15 (B) service delivery area grant recipients

16 or administrative entities under the Job Train17 ing Partnership Act;

18 (C) private nonprofit organizations;

19 (D) units of general local government in

20 the substate area, or agencies thereof;

21 (E) local offices of State agencies;

22 (F) other public agencies, such as commu23 nity colleges and area vocational schools; and

24 (G) consortia of the entities described in

25 subparagraphs (A) through (F).
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1 (c) FUNCTIONS OF SUBSTATE GRANTEES.—

2 (1) IN GENERAL.—Except as provided in para3 graph (2), the substate grantees designated pursu4 ant to this subsection shall—

5 (A) receive and administer funds allocated

6 to the substate area, including the administra7 tion of payments to service providers in accord8 ance with section 119(d)(2);

9 (B) administer the process for the selection

10 of career center operators established pursuant

11 to section 118;

12 (C) conduct oversight and monitoring of

13 the program carried out within the substate

14 area and coordinate the operation of the career

15 centers established within the substate area;

16 and

17 (D) prepare and make publicly available a

18 biennial written plan describing the objectives

19 to be accomplished and the activities to be un20 dertaken in the substate area under this title.

21 (2) SPECIAL RULE.—

22 (A) SELECTION PROCESS FOR CAREER

23 CENTER OPERATORS.—If a substate grantee de24 sires to be selected to operate a career center,

25 the process for the selection of career center op-
41

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1 erators in the substate area shall be adminis2 tered by the private industry council or councils

3 established in such substate area. If such sub4 state grantee is such private industry council,

5 the process for the selection of career center op6 erators in the substate area shall be adminis7 tered by the Governor.

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

9 selected to operate a career center, the over10 sight of the career centers in the substate area

11 shall be carried out by the Governor.

12 SEC. 118. ESTABLISHMENT OF CAREER CENTERS.

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

14 pursuant to section 117 shall, in accordance with the re15 quirements of this section, establish one or more career

16 centers in each substate area.

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

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

19 services provided pursuant to section 119.

20 (c) SELECTION OF CENTERS.—

21 (1) SELECTION PROCESS.—The substate grant22 ee shall select the career center operators in accord23 ance with the requirements of this subsection.

24 (2) ELIGIBLE ENTITIES.—Any entity or consor25 tium of entities located in the substate area may
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1 apply, in accordance with the procedures described

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

3 operator. Such entities may include—

4 (A) Employment Service offices,

5 (B) service delivery area grant recipients

6 or administrative entities under the Job Train7 ing Partnership Act,

8 (C) substate grantees under this title,

9 (D) community colleges and area voca10 tional schools,

11 (E) community-based and other private,

12 nonprofit organizations, and

13 (F) other interested private for-profit and

14 public organizations and entities.

15 (3) PUBLICATION OF PROCEDURES.—The sub16 state grantee, after consultation with the Governor

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

18 that is generally available, information to notify or19 ganizations and individuals in the substate area of—

20 (A) the estimated number of career centers

21 to be established in the substate area;

22 (B) the application procedure for any en23 tity or consortium of entities desiring to be se24 lected to operate such centers, including when

25 and where such application is to be submitted
43

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1 and what information such application is to

2 contain;

3 (C) the criteria for selection that will be

4 used, consistent with paragraph (4); and

5 (D) other information the substate grantee

6 considers relevant to the selection of operators

7 and administration of such centers.

8 (4) SELECTION CRITERIA.—

9 (A) OBJECTIVE FACTORS.—The substate

10 grantee, consistent with guidelines issued by the

11 Secretary, shall use objective criteria and per12 formance measures in assessing applications

13 submitted for selection as a career center opera14 tor.

15 (B) CONTENTS.—An applicant may not be

16 selected as a career center operator under this

17 title unless such applicant demonstrates to the

18 satisfaction of the substate grantee the ability

19 to operate a career center that would—

20 (i) provide the services described in

21 section 119;

22 (ii) utilize automated information sys23 tems to facilitate the exchange of informa24 tion among career centers;
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1 (iii) meet the performance standards

2 prescribed pursuant to section 152;

3 (iv) meet the fiscal control require4 ments provided in part E;

5 (v) administer the process of referring

6 participants to education and training

7 services in an objective and equitable man8 ner; and

9 (vi) meet such other requirements as

10 the substate grantee determines is appro11 priate.

12 (C) LEVEL OF WAGES AND BENEFITS.—

13 The level of wages and benefits paid to non14 managerial employees by an applicant may not

15 be considered as a factor in the selection of a

16 career center operator. Other cost factors may

17 be taken into account in such selection.

18 (5) PERIOD OF SELECTION.—The substate

19 grantee shall select career center operators pursuant

20 to the requirements of this subsection once every

21 four years.

22 (6) ENFORCEMENT OF HONEST BROKER FUNC23 TIONS.—The substate grantee shall review, at least

24 once each program year, the education and training

25 referral practices of any career center that is oper-
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1 ated by an entity that concurrently provides edu2 cation and training services to participants under

3 this title. If the substate grantee determines that

4 such center has engaged in a pattern of inappropri5 ate referrals to the education and training services

6 provided by the operator of such center, the substate

7 grantee may terminate the agreement to operate

8 such center or may require such operator to cease

9 providing education and training services to partici10 pants under this title as a condition for continuing

11 to operate such center.

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

13 the career centers established under this section, a sub14 state grantee may use funds allocated to the substate area

15 to establish temporary, on-site transition centers that

16 meet the requirements described in section 115(c)(2).

17 Such centers may be established pursuant to grants, con18 tracts, or other arrangements with the entities described

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

20 SEC. 119. SERVICES TO BE PROVIDED TO ELIGIBLE INDI21 VIDUALS.

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

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

24 (1) basic reemployment services in accordance

25 with subsection (b);
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1 (2) intensive reemployment services in accord2 ance with subsection (c);

3 (3) education and training services in accord4 ance with subsection (d);

5 (4) retraining income support in accordance

6 with subsection (e);

7 (5) supportive services in accordance with sub8 section (f); and

9 (6) supplemental wage allowances for older

10 workers in accordance with subsection (g).

11 (b) BASIC REEMPLOYMENT SERVICES.—Each career

12 center established pursuant to this title shall make avail13 able to eligible individuals the following services:

14 (1) Outreach and provision of information to

15 make individuals aware of, and encourage the use of,

16 reemployment and training services, including efforts

17 to expand awareness of training and placement op18 portunities for hard-to-serve individuals such as

19 those with limited English proficiency and those with

20 disabilities.

21 (2) Intake and determination of eligibility for

22 assistance under this title.

23 (3) Orientation to the information and services

24 available through such center.
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1 (4) Assistance in filing an initial claim for un2 employment compensation.

3 (5) A preliminary assessment of the skill levels

4 (including appropriate testing) and service needs of

5 such individuals, which may include such factors as

6 basic skills, occupational skills, prior work experi7 ence, employability, interests, aptitudes, and sup8 portive service needs.

9 (6) Information relating to local, regional and

10 national labor markets, including—

11 (A) job vacancy listings in such markets,

12 and

13 (B) information relating to local occupa14 tions in demand and the earnings and skill re15 quirements for such occupations.

16 (7) Job search assistance, including resume and

17 interview preparation, and workshops.

18 (8) Job referral and job placement assistance.

19 (9) Information relating to education and job

20 training programs, including the eligibility require21 ments of and services provided by such programs,

22 the availability and quality of such programs, and

23 student financial assistance available for such pro24 grams.
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1 (10) Assistance in evaluating whether such indi2 viduals are likely to be eligible for any employment

3 and training programs administered by the Sec4 retary other than this title.

5 (11) Information collected pursuant to the per6 formance standards and quality assurance require7 ments of part C of this title.

8 (12) Information relating to programs and pro9 viders of dependent care and other supportive serv10 ices available in the local area.

11 (13) Group counseling, which may include peer

12 counseling, and which shall be available to such indi13 viduals jointly with their immediate families, includ14 ing group counseling relating to stress management

15 and financial management.

16 (14) Soliciting and accepting job orders submit17 ted by employers in the substate area, and referring

18 individuals in accordance with such orders.

19 (c) INTENSIVE REEMPLOYMENT SERVICES.—

20 (1) IN GENERAL.—Each career center estab21 lished pursuant to this title shall make available, to

22 eligible individuals who have received basic reemploy23 ment services under subsection (b) and have been

24 unable to obtain employment through such services,

25 the following services:
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1 (A) Comprehensive and specialized assess2 ments of the skill levels and service needs of in3 dividuals, which may include—

4 (i) diagnostic testing and other assess5 ment tools; and

6 (ii) in-depth interviewing and evalua7 tion to identify employment barriers and

8 appropriate employment goals.

9 (B) The development of an individual re10 employment plan, which shall identify the em11 ployment goal (including, in appropriate cir12 cumstances, nontraditional employment), appro13 priate achievement objectives, and the appro14 priate combination of services for a participant

15 to achieve the employment goal.

16 (C) Individualized counseling and career

17 planning, including peer counseling and coun18 seling and planning relating to nontraditional

19 employment opportunities.

20 (D) Case management for individuals re21 ceiving education, training and supportive serv22 ices.

23 (E) Job development.

24 (F) Out-of-area job search allowances.

25 (G) Relocation allowances.
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1 (H) Assistance in the selection of edu2 cation and training providers.

3 (I) Assistance in obtaining income support

4 for which the individual is eligible, including

5 student financial assistance, to enable such in6 dividual to participate in training.

7 (J) Follow-up counseling for individuals

8 placed in training or employment.

9 (2) ADDITIONAL CONDITIONS.—

10 (A) REEMPLOYMENT PLAN.—

11 (i) JOINT DEVELOPMENT.—The indi12 vidual reemployment plan described in

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

14 by the eligible individual and a career

15 counselor. Both parties shall sign the plan

16 and periodically review the progress of the

17 individual in achieving the objectives set

18 forth in the plan. In the event of a dis19 agreement over the content of the plan, the

20 eligible individual shall be provided an op21 portunity to appeal the career counselor’s

22 recommendation pursuant to section 164.

23 (ii) EMPLOYMENT GOAL.—The em24 ployment goal identified under an individ25 ual reemployment plan described under
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1 paragraph (1)(B) shall relate to employ2 ment in an occupation for which there is a

3 demand in the local area, or in another

4 area to which the individual is willing to

5 relocate.

6 (iii) PROHIBITION ON PRIVATE AC7 TIONS.—Nothing in this section shall be

8 construed to establish a right for an indi9 vidual to bring a private action to obtain

10 the services described in the reemployment

11 plan.

12 (B) OUT-OF-AREA JOB SEARCH ALLOW13 ANCE.—

14 (i) IN GENERAL.—Out-of-area job

15 search allowances provided under para16 graph (1)(F) shall provide reimbursement

17 to the individual of not more than 90 per18 cent of the cost of necessary job search ex19 penses, up to a maximum payment speci20 fied by the Secretary in regulations.

21 (ii) CRITERIA FOR GRANTING JOB

22 SEARCH ALLOWANCES.—A job search al23 lowance may be granted only—
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1 (I) to assist an eligible individual

2 in securing a job within the United

3 States; and

4 (II) where the career center de5 termines that such employee cannot

6 reasonably be expected to secure suit7 able employment in the commuting

8 area in which the worker resides.

9 (C) RELOCATION ALLOWANCE.—

10 (i) IN GENERAL.—Relocation allow11 ances provided under paragraph (1)(G)

12 may only be granted to assist an eligible

13 individual in relocating within the United

14 States and only if the career center deter15 mines that such employee—

16 (I) cannot reasonably be expected

17 to secure suitable employment in the

18 commuting area in which the em19 ployee resides;

20 (II) has obtained suitable em21 ployment affording a reasonable ex22 pectation of long-term duration in the

23 area in which the employee wishes to

24 relocate, or has obtained a bona fide

25 offer of such employment, and
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1 (III) is totally separated from

2 employment at the time relocation

3 commences.

4 (ii) AMOUNT OF RELOCATION ALLOW5 ANCE.—The amount of any relocation al6 lowance for any eligible individual may not

7 exceed an amount which is equal to the

8 sum of—

9 (I) 90 percent of the reasonable

10 and necessary expenses, specified in

11 regulations prescribed by the Sec12 retary, incurred in transporting an in13 dividual and the individual’s family, if

14 any, and household effects, and

15 (II) a lump sum equivalent to 3

16 times the employee’s average weekly

17 wage in the previous job, up to a max18 imum payment specified by the Sec19 retary in regulations.

20 (d) EDUCATION AND TRAINING.—

21 (1) AVAILABLE SERVICES.—Each career center

22 shall make available a list of eligible providers of—

23 (A) basic skills training, including remedial

24 education, literacy training, and English-as-a25 second language instruction;
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1 (B) occupational skills training, provided

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

3 (C) other skills-based education and train4 ing that such center considers appropriate,

5 which may include entrepreneurial training and

6 training in skills required for high performance

7 work organizations, such as problem solving

8 and skills related to the use of new tech9 nologies.

10 (2) REFERRALS.—An eligible individual who

11 has an individual reemployment plan developed pur12 suant to subsection (c)(1)(B) that specifies edu13 cation and training services as are necessary to the

14 reemployment of such individual shall, in consulta15 tion with a career counselor, select a service provider

16 for such services from the list described in para17 graph (1). The career centers shall refer such indi18 viduals to such service providers and arrange with

19 the substate grantee for payment to the provider for

20 the services provided consistent with the limitation

21 contained in paragraph (5).

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

23 this title, an eligible provider of education and train24 ing services is a provider that meets the require25 ments of section 154.
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1 (4) CONTRACT EXCEPTIONS.—Education and

2 training services authorized under this title may be

3 provided pursuant to a contract for services between

4 the substate grantee and an eligible service provider

5 in lieu of the referral procedures described in para6 graph (2) if such services—

7 (A) are customized by a provider to meet

8 the particular needs of a specific group of eligi9 ble individuals in the substate area; or

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

11 employer.

12 (5) CAP ON TRAINING.—

13 (A) LIMITATION.—The program under this

14 title shall not pay an amount in excess of

15 $4,750 for the provision of education and train16 ing to any individual under this subsection over

17 any twelve-month period.

18 (B) RELATIONSHIP TO STUDENT FINAN19 CIAL ASSISTANCE.—

20 (i) For purposes of determining a stu21 dent’s need for grant, loan, or work assist22 ance under title IV of the Higher Edu23 cation Act of 1965, the funds provided to

24 a participant for education and training

25 under this subsection shall be considered to
56

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1 be estimated financial assistance not re2 ceived under such title IV for the purpose

3 of section 471(3) of such Act.

4 (ii) Notwithstanding section 401(b) of

5 such Act, the funds provided to a partici6 pant for education and training under this

7 subsection shall be applied to reduce the

8 student’s cost of attendance (as defined in

9 section 472 of such Act) prior to determin10 ing the amount of a student’s Federal Pell

11 Grant award under subpart 1 of part A of

12 title IV of such Act, except that such re13 duction shall not result in a negative num14 ber.

15 (iii) Nothing in this Act shall be con16 strued to modify the eligibility require17 ments applicable to students, programs of

18 study, or institutions of higher education

19 under title IV of such Act.

20 (6) LIMIT ON LENGTH OF TRAINING.—No par21 ticipant may receive assistance from funds under

22 this title for education or training for more than 104

23 weeks in a five-year period.

24 (7) ON-THE-JOB TRAINING.—The provisions of

25 paragraphs (5) and (6) shall not apply to on-the-job
57

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1 training provided under this title. Such on-the-job

2 training shall be provided consistent with the limita3 tions described in section 161(d).

4 (e) RETRAINING INCOME SUPPORT.—

5 (1) IN GENERAL.—For program years 1995

6 through 1999, eligible individuals receiving edu7 cation and training services pursuant to subsection

8 (d) who meet the requirements of paragraph (2)

9 shall, to the extent appropriated funds are available,

10 be provided retraining income support in accordance

11 with this subsection.

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

13 to the extent appropriated funds are available, be

14 provided retraining income support in accordance

15 with this subsection if such individual—

16 (A) has been permanently laid off;

17 (B) either—

18 (i) had been continuously employed at

19 the time of such permanent layoff for a pe20 riod of one year or more, but less than

21 three years, by the employer from whom

22 such individual has been permanently laid

23 off; or

24 (ii) was continuously employed in the

25 same occupation and industry by an em-
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1 ployer for a period of one year or more and

2 was, within the preceding twelve-month pe3 riod—

4 (I) separated from such em5 ployer, and

6 (II) employed in the same occu7 pation and industry by the subsequent

8 employer from whom such individual

9 has been permanently laid off;

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

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

12 have been entitled to if such individual had ap13 plied therefor) unemployment compensation

14 under any Federal or State law for a week

15 within the benefit period—

16 (I) in which the layoff took place, or

17 (II) which began (or would have

18 begun) by reason of the filing of a claim

19 for unemployment compensation by such

20 individual after such layoff;

21 (ii) has exhausted all rights to any unem22 ployment compensation to which such individual

23 was entitled (or would have been entitled if

24 such individual had applied therefor); and
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1 (iii) does not have an unexpired waiting

2 period applicable to such individual for such un3 employment compensation;

4 (D) has been enrolled in education or

5 training pursuant to subsection (d) by—

6 (i) the end of the sixteenth week after

7 the permanent layoff described in subpara8 graph (A), or, if later, the end of the four9 teenth week after such individual was in10 formed that the layoff will exceed six

11 months; or

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

13 thirty days after the periods described in

14 clause (i), in cases where the substate

15 grantee determines, in accordance with

16 guidelines issued by the Secretary, that

17 there are extenuating circumstances that

18 justify such extension, such as a cancella19 tion of a course, a first available enroll20 ment date that is after the periods de21 scribed in subparagraph (A), or the com22 mencement of negotiations for reopening a

23 plant or facility from which an individual

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

3 pursuant to subsection (d).

4 (3) SPECIAL RULES.—

5 (A) CONTINUOUS EMPLOYMENT.—

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

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

11 (I) was on employer-authorized

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

14 duty military service for training,

15 (II) was on employer-authorized

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

18 Family and Medical Leave Act of

19 1993,

20 (III) did not work because of a

21 disability that is compensable under a

22 worker’s compensation law or plan of

23 a State or the United States,

24 (IV) had his, or her, employment

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

3 (V) was on call-up for purposes

4 of active duty in a reserve status in

5 the Armed Forces of the United

6 States, provided such active duty is

7 ‘‘Federal service’’ as defined in 5

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

9 (VI) was on temporary layoff.

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

11 more than the following number of weeks

12 within a one-year period may be treated as

13 weeks of employment—

14 (I) seven weeks in the case of

15 weeks described in subclauses (I) or

16 (IV) of clause (i), or both;

17 (II) twelve weeks in the case of

18 weeks described in subclause (II) of

19 clause (i); and

20 (III) twenty-six weeks in the case

21 of weeks described in subclauses (III)

22 and (V) of clause (i).

23 (B) SAME EMPLOYER.—

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

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

2 include—

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

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

6 Retirement Income Security Act of

7 1974,

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

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

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

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

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

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

20 clause (i), an employer from whom the in21 dividual was laid-off (hereinafter referred

22 to as successor employer) if—

23 (I) the successor employer ac24 quired substantially all the property

25 used in a trade or business, or used in
63

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1 a separate unit of a trade or business,

2 from such employer; and

3 (II) the individual who was laid

4 off was employed by such employer in

5 such trade or business, or in a sepa6 rate unit of such trade or business,

7 immediately before the acquisition and

8 was employed by the successor em9 ployer immediately after the acquisi10 tion.

11 (C) INDIVIDUAL TREATED AS PARTICIPAT12 ING IN EDUCATION OR TRAINING PROGRAM.—

13 For purposes of subparagraph (E) of paragraph

14 (2), an individual shall be treated as participat15 ing, and making satisfactory progress, in an

16 education or training program during any week

17 which is part of a break from training that does

18 not exceed twenty-eight days if the break is pro19 vided under such program.

20 (4) WEEKLY AMOUNT OF PAYMENTS.—The re21 training income support payment payable to an indi22 vidual under this subsection shall be an amount

23 equal to the most recent benefit amount of the un24 employment compensation payable to such individual

25 for a week of total unemployment preceding such in-
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1 dividual’s first exhaustion of unemployment com2 pensation related to the permanent layoff reduced

3 (but not below zero) by—

4 (A) any training income support provided

5 for such week to such individual under another

6 Federal program; and

7 (B) income that is earned from employ8 ment that exceeds one-half the amount equal to

9 the most recent weekly benefit amount of the

10 unemployment compensation payable to such

11 individual for a week of total unemployment.

12 (5) TOTAL AMOUNT OF PAYMENTS.—The maxi13 mum amount of retraining income support payable

14 to an individual under this subsection shall be the

15 amount which is the product of 26 multiplied by the

16 retraining income support payable to the individual

17 for a week of total unemployment (as determined

18 under paragraph (4)), but such product shall be re19 duced by the total sum of extended and additional

20 compensation to which the individual was entitled in

21 the worker’s first benefit period as described in

22 paragraph (2)(C).

23 (6) ADMINISTRATION.—The substate grantee

24 shall enter into an agreement with the State agency

25 charged with the administration of the State unem-
65

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1 ployment compensation law under which such agency

2 will administer, on a cost-reimbursable basis, the re3 training income support payments authorized under

4 this subsection.

5 (7) CAREER CENTER ROLE.—Each career cen6 ter shall assist an individual receiving education or

7 training pursuant to subsection (d) in applying for

8 retraining income support under either part A of

9 title II of the Reemployment Act of 1994 or this

10 subsection depending on the program for which such

11 individual is eligible. If such individual is not eligible

12 for either program and such individual believes in13 come support is necessary to enable participation in

14 training, the career center shall assist such individ15 ual in applying for other appropriate sources of such

16 income support, including student financial aid.

17 (8) INFORMATION DISSEMINATION.—The career

18 centers shall provide individuals determined eligible

19 under this title with information relating to the

20 availability of retraining income support and the re21 quirements relating to eligibility for such support.

22 Such information shall include the provision, as soon

23 as is practicable, of information to such individuals

24 describing the time periods by which enrollment in

25 education and training must occur in order to be eli-
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1 gible for retraining income support pursuant to

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

3 of the Reemployment Act of 1994. In addition, the

4 substate grantee shall make arrangements with the

5 State agency charged with the administration of the

6 State unemployment compensation law to make such

7 information generally available to claimants along

8 with other information describing the services avail9 able under this title.

10 (f) SUPPORTIVE SERVICES.—

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

12 make available to an eligible individual, either

13 through direct payment, payment to a service pro14 vider, or arrangements through appropriate agen15 cies, such supportive services as are identified in

16 such individual’s reemployment plan as necessary to

17 enable such individual to participate in intensive re18 employment services or education and training serv19 ices.

20 (2) OPTIONAL SERVICES.—Each career center

21 may make available to an eligible individual such

22 supportive services as such center determines is ap23 propriate to enable such individual to participate in

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

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

5 needs-related payments, drug and alcohol abuse

6 counseling and referral, family counseling, and other

7 similar services.

8 (g) SUPPLEMENTAL WAGE ALLOWANCE FOR OLDER

9 WORKERS.—

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

11 receive a supplemental wage allowance in the

12 amount specified in paragraph (2) if—

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

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

16 such individual’s preceding wage,

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

19 and was unable to obtain employment with a

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

22 (D) such individual and a career center

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

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

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

8 (i) the weekly wage received for such

9 week and

10 (ii) an amount equal to 80 percent of

11 the individual’s average weekly wage in the

12 preceding employment; but

13 (B) does not exceed 50 percent of the

14 weekly benefit amount of regular compensation

15 under the State unemployment compensation

16 law payable to such individual for a week of

17 total unemployment.

18 (3) DURATION OF ALLOWANCES.—An eligible

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

21 to fifty-two weeks.

22 (4) ADMINISTRATION.—The substate grantee

23 shall enter into an agreement with the State agency

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

2 supplemental wage allowances authorized under this

3 subsection.

4 SEC. 120. CERTIFICATES OF CONTINUING ELIGIBILITY.

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

7 if such career center determines that—

8 (1) such individual is eligible for services under

9 section 103; and

10 (2) such individual is accepting employment

11 and such employment is—

12 (A) at a wage significantly less than such

13 individual’s previous wage; or

14 (B) in an occupation significantly different

15 from such individual’s previous occupation.

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

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

18 of time not to exceed one hundred and four weeks that

19 such individual shall remain eligible, notwithstanding the

20 requirements of section 103, for services under this title

21 and for retraining income support payments under section

22 119(e) of this Act.

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

3 (1) the requirements relating to eligibility for

4 income support under section 119(e)(2)(C) of this

5 Act and to the weekly amount of such support under

6 section 119(e)(4) of this Act shall apply to such in7 dividual’s status at the time such individual receives

8 a certificate under this section and shall not apply

9 to such individual’s status at the time of separation

10 from subsequent employment described in subsection

11 (a)(2); and

12 (2) the requirements relating to enrollment in

13 training in order to qualify for such income support

14 shall remain applicable except that the 16-week and

15 14-week periods described in section 119(e)(2) of

16 this Act shall commence with such individual’s sepa17 ration from the subsequent employment described in

18 subsection (a)(2).

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

20 wage supplement authorized under section 119(g) after re21 ceiving a certificate of continuing eligibility under this sec22 tion.
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1 PART B—FEDERAL SERVICE DELIVERY SYSTEM

2 SEC. 131. NATIONAL DISCRETIONARY GRANT PROGRAM.

3 (a) ESTABLISHMENT.—The Secretary shall establish

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

6 closures, or mass layoffs.

7 (b) PROJECTS AND SERVICES.—

8 (1) IN GENERAL.—The programs assisted

9 under this section shall be used to provide services

10 of the type described in section 119 in projects that

11 relate to—

12 (A) industry-wide dislocations;

13 (B) multistate dislocations;

14 (C) dislocations resulting from reductions

15 in defense expenditures;

16 (D) dislocations resulting from inter17 national trade;

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

20 Clean Air Act and the Endangered Species Act;

21 (F) dislocations affecting Native American

22 tribal entities; and

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

2 may award grants under this section for projects

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

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

8 projects that establish on-site transition centers

9 meeting the requirements described in section

10 115(c)(2).

11 (c) ADMINISTRATION.—

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

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

16 Secretary determines is appropriate.

17 (2) ELIGIBLE ENTITIES.—Grants under this

18 section may be awarded to—

19 (A) the State;

20 (B) the substate grantee;

21 (C) employers and employer associations;

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

24 entities;

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

2 and community-based organizations; and

3 (G) industry consortia.

4 SEC. 132. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

5 (a) GENERAL AUTHORITY.—

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

8 available in a timely manner by the secretary to the

9 Governor of any State within which is located an

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

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

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

16 percent of the funds made available to any Governor

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

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

20 remainder of such funds may be reserved by the

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

22 cleanup, rescue, repair, renovation, and rebuilding

23 activities associated with such major disaster.

24 (3) COORDINATION.—Funds made available

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

2 with—

3 (A) agencies administering programs for

4 disaster relief provided under the Robert T.

5 Stafford Disaster Relief and Emergency Assist6 ance Act; and

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

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

11 (b) USE OF FUNDS.—

12 (1) PROJECTS RESTRICTED TO DISASTER

13 AREAS.—Funds made available under this section to

14 any unit of general local government in a disaster

15 area—

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

18 shelter, and other humanitarian assistance for

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

22 facilities, and lands located within the disaster

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

2 private agencies and organizations engaged in

3 such projects.

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

6 to be offered disaster employment under this section

7 if such individual is temporarily or permanently laid

8 off as a consequence of the disaster.

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

11 this part for more than six months for work related

12 to recovery from a single natural disaster.

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

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

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

16 project in an Indian reservation or Alaska Native

17 village, the grantee designated under subsection (c)

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

20 the State; and

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

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

24 the Job Training Partnership Act, or a consortium

25 of such grantees and the State.
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1 SEC. 133. EVALUATION, RESEARCH, AND DEMONSTRA2 TIONS.

3 (a) EVALUATION.—

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

5 for the continuing evaluation of programs conducted

6 under this title, including the cost-effectiveness of

7 programs in achieving the purposes of this title.

8 (2) TECHNIQUES.—

9 (A) METHODS.—Evaluations conducted

10 under paragraph (1) shall utilize recognized

11 statistical methods and techniques of the behav12 ioral and social sciences, including methodolo13 gies that control for self-selection, where fea14 sible.

15 (B) ANALYSIS.—Such evaluations may in16 clude cost benefit analyses of programs, and

17 analyses of the impact of the programs on par18 ticipants and the community, the extent to

19 which programs meet the needs of various de20 mographic groups, and the effectiveness of the

21 delivery systems used by the various programs.

22 (C) EFFECTIVENESS.—The Secretary shall

23 evaluate the effectiveness of programs author24 ized under this title with respect to—

25 (i) the statutory goals;
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1 (ii) the performance standards estab2 lished by the Secretary; and

3 (iii) the extent to which such pro4 grams enhance the employment and earn5 ings of participants, reduce income support

6 costs, improve the employment com7 petencies of participants in comparison to

8 comparable persons who did not partici9 pate in such programs, and, to the extent

10 feasible, increase the level of total employ11 ment over the level that would have existed

12 in the absence of such programs.

13 (b) RESEARCH.—

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

15 a program of research relating to addressing eco16 nomic dislocation, facilitating the transition of per17 manently laid-off workers to reemployment, and up18 grading the skills of employed workers.

19 (2) MASS LAYOFF REPORT.—The Secretary

20 shall develop and maintain statistical data relating

21 to permanent layoffs and plant closings. The Sec22 retary shall publish a report based upon such data,

23 as soon as practicable, after the end of each cal24 endar year. Among the data to be included are—

25 (A) the number of such closings;
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1 (B) the number of workers displaced;

2 (C) the location of the affected facilities;

3 and

4 (D) the types of industries involved.

5 (c) DEMONSTRATIONS.—

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

7 a program of demonstration projects to develop and

8 improve the methods for addressing economic dis9 location and promoting worker adjustment. Such

10 program may include projects that—

11 (A) provide services to upgrade the skills

12 of employed workers who are at risk of being

13 permanently laid off; and

14 (B) assist in retraining employed workers

15 in new technologies and work processes that

16 will facilitate the conversion or restructuring of

17 businesses into high performance work organi18 zations and avert plant closings or substantial

19 layoffs.

20 (2) LIMITATION.—Each demonstration project

21 conducted under this subsection shall not exceed

22 three years in duration.

23 (3) EVALUATION COMPONENT.—The Secretary

24 shall conduct or provide for an evaluation of each of

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

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

4 through grants, contracts, or other arrangements, staff

5 training and technical assistance to States, substate

6 grantees, career centers, communities, business and labor

7 organizations, service providers, industry consortia, and

8 other entities, to enhance their capacity to develop and

9 deliver effective adjustment assistance services to workers

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

13 dissemination of computer-accessed learning systems.

14 (b) COORDINATION.—The Secretary shall integrate

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

16 the activities of the Capacity Building and Information

17 and Dissemination Network established under section 453

18 of the Job Training Partnership Act.

19 SEC. 135. FEDERAL BYPASS AUTHORITY.

20 In the event that any State chooses not to participate

21 in the program authorized under this title, the Secretary

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

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

24 State of the programs, activities, and services authorized

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

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

2 QUALITY ASSURANCE SYSTEMS

3 SEC. 151. CUSTOMER SERVICE COMPACT.

4 The Secretary shall establish a process within each

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

6 the development of a customer service compact among the

7 parties administering the programs under this title. Such

8 compact shall include an informal agreement between the

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

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

12 the administration of the program;

13 (2) the respective roles and responsibilities of

14 each party in enhancing the provision of services to

15 participants, including ensuring that such services

16 are tailored to the particular needs of participants in

17 each local area;

18 (3) methods for ensuring that the satisfaction

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

22 (4) such other matters as the parties determine

23 are appropriate.

24 SEC. 152. PERFORMANCE STANDARDS.

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

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

2 standards relating separately to the substate grantees and

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

5 are appropriate, which may include—

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

8 (A) earnings at six months or more after

9 termination from the program, and

10 (B) comparability of wages at a specified

11 period after termination from the program with

12 wages prior to participation in the program;

13 (2) acquisition of skills pursuant to a skill

14 standards and skill certification system endorsed by

15 the National Skill Standards Board established

16 under the Goals 2000: Educate America Act;

17 (3) satisfaction of participants and employers

18 with services provided and employment outcomes;

19 and

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

22 and older workers.

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

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

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

6 within the State; and

7 (2) the characteristics of the population to be

8 served, including the demonstrated difficulties in

9 serving special populations.

10 (c) FAILURE TO MEET STANDARDS.—

11 (1) UNIFORM CRITERIA.—The Secretary shall

12 establish uniform criteria for determining whether a

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

15 may not be modified more than once every two

16 years.

17 (2) TECHNICAL ASSISTANCE.—The Governor

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

20 standards under the uniform criteria established

21 under paragraph (1).

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

2 planned and provided as required under paragraph

3 (2).

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

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

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

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

13 with the procedures described in section

14 117(b)(2); and

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

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

19 with the requirements of section 118.

20 (5) APPEAL.—A substate grantee or career cen21 ter that is the subject of a redesignation under para22 graph (4) may, within thirty days after receiving no23 tice thereof, appeal to the Secretary of Labor to re24 scind such action. The Secretary of Labor shall issue
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1 a decision on the appeal within thirty days of its re2 ceipt.

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

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

5 shall award incentive grants to the substate grantees and

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

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

10 SEC. 153. CUSTOMER FEEDBACK.

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

13 from eligible individuals and employers who have received

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

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

17 and focus groups.

18 (b) ANALYSIS AND DISSEMINATION.—Each substate

19 grantee shall analyze the information obtained pursuant

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

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

2 EDUCATION AND TRAINING SERVICES.

3 (a) ELIGIBILITY REQUIREMENTS.—A provider of

4 education and training services shall be eligible to receive

5 funds under this title if such provider—

6 (1) is either—

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

8 Higher Education Act of 1965, or

9 (B) determined to be eligible under the

10 procedures described in subsection (b); and

11 (2) provides the performance-based information

12 required pursuant to subsection (c).

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

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

16 such State desiring to receive funds under this title but

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

18 Education Act of 1965. Such procedure shall establish

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

22 Such factors shall be comparable in rigor and scope to

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

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

25 eligibility to participate in programs under such title as

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

2 training services to be provided.

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

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

6 institution shall not be eligible to receive funds under this

7 Act for a period of two years.

8 (c) PERFORMANCE-BASED INFORMATION.—

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

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

12 by providers of services desiring to be eligible under

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

15 (A) the percentage of students completing

16 the programs conducted by the provider,

17 (B) the rates of licensure of graduates of

18 the programs conducted by the provider,

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

21 requirements endorsed by the National Skill

22 Standards Board established under the Goals

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

2 employment, and earnings of the graduates of

3 the programs conducted by the provider,

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

6 the program conducted by the provider, and

7 (F) the warranties or guarantees provided

8 by such provider relating to the skill levels or

9 employment to be attained by students.

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

11 to the approval of the Secretary, prescribe additional

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

14 (d) ADMINISTRATION.—

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

18 pursuant to paragraph (1).

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

20 training services that desires to be eligible to receive

21 funds under this title shall submit the information

22 required under subsection (b) to the State agency

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

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

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

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

7 (4) ACCURACY OF INFORMATION.—

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

10 is inaccurate, such provider shall be disqualified

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

13 demonstrate to the satisfaction of the Governor

14 or his or her designee, that the information was

15 provided in good faith.

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

18 a determination by a State agency that results

19 in a disqualification under subparagraph (A).

20 Such procedure shall provide an opportunity for

21 a hearing and prescribe appropriate time limits

22 to ensure prompt resolution of the appeal.

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

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

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

4 State administrative records, such as unemployment

5 compensation wage records, and other appropriate

6 coordination activities.

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

9 eligibility of institutions of higher education or other

10 providers of education and training to participate in

11 programs under this Act or under title IV of the

12 Higher Education Act of 1965.

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

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

15 training shall not be subject to the requirements of

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

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

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

20 training providers as the Secretary may require, and

21 shall disseminate such information to the career

22 centers.
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1 PART D—GENERAL REQUIREMENTS

2 SEC. 161. GENERAL REQUIREMENTS.

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

5 (a) PROHIBITION ON INDUCING RELOCATION OF ES6 TABLISHMENTS.—

7 (1) No funds provided under this title shall be

8 used or proposed for use to encourage or induce the

9 relocation, of an establishment or part thereof, that

10 results in a loss of employment for any employee of

11 such establishment at the original location.

12 (2) No funds provided under this title shall be

13 used for customized or skill training, on-the-job

14 training, or company specific assessments of job ap15 plicants or employees, for any establishment or part

16 thereof, that has relocated, until one hundred and

17 twenty days after the date on which such establish18 ment commences operations at the new location, if

19 the relocation of such establishment or part thereof,

20 results in a loss of employment for any employee of

21 such establishment at the original location.

22 (3) If a violation of paragraph (1) or (2) is al23 leged, the Secretary shall conduct an investigation to

24 determine whether a violation has occurred.

25 (4) If the Secretary determines that a violation

26 of paragraph (1) or (2) has occurred, the Secretary
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1 shall require the State, substate area, or substate

2 grantee that has violated paragraph (1) or (2) to—

3 (A) repay to the United States an amount

4 equal to the amount expended in violation of

5 paragraph (1) or (2), in accordance with sub6 sections (d) or (e) of section 174; and

7 (B) pay an additional amount equal to the

8 amount required to be repaid under subpara9 graph (A), unless the State or substate grantee

10 demonstrates to the Secretary that it neither

11 knew nor reasonably could have known (after

12 an inquiry undertaken with due diligence) pro13 vided funds in violation of paragraph (1) or (2).

14 (5) Amounts received under paragraph (4)(B)

15 shall be deposited in a special account in the Treas16 ury for use by the Secretary for carrying out this

17 title.

18 (b) SPECIAL PROGRAMS.—Efforts shall be made to

19 develop programs under this title which contribute to oc20 cupational development, upward mobility, development of

21 new careers, and overcoming sex-stereotyping in occupa22 tions traditional for the other sex.

23 (c) JOINT SUBSTATE AGREEMENTS.—Any substate

24 grantee may enter into an agreement or contract with an25 other substate grantee to pay or share the cost of educat-
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1 ing, training, or placing individuals participating in pro2 grams assisted under this Act, including the provision of

3 supportive services.

4 (d) ON-THE-JOB TRAINING.—(1) Payments to em5 ployers for on-the-job training under this title shall not,

6 during the period of such training, average more than 50

7 percent of the wages paid by the employer to such partici8 pants, and payments in such amount shall be deemed to

9 be in compensation for the extraordinary costs associated

10 with training participants under this title and in com11 pensation for the costs associated with the lower produc12 tivity of such participants.

13 (2) On-the-job training authorized under this title for

14 a participant shall be limited in duration to a period not

15 in excess of that generally required for acquisition of skills

16 needed for the position within a particular occupation, but

17 in no event shall exceed six months, unless the total num18 ber of hours of such training is less than five hundred

19 hours. In determining the period generally required for ac20 quisition of the skills, consideration shall be given to rec21 ognized reference material (such as the Dictionary of Oc22 cupational Titles), the content of the training of the par23 ticipant, the prior work experience of the participant, and

24 the reemployment plan of the participant.

25 (3)(A) Each on-the-job training contract shall—
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1 (i) specify the types and duration of on-the-job

2 training and the other services to be provided in suf3 ficient detail to allow for a fair analysis of the rea4 sonableness of proposed costs; and

5 (ii) comply with the applicable requirements of

6 section 174.

7 (B) Each on-the-job training contract that is not di8 rectly contracted by a substate grantee with an employer

9 (but instead is contracted through an intermediary

10 brokering contractor) shall, in addition to meeting the re11 quirements of subparagraph (A), specify the outreach, re12 cruitment, participant training, counseling, placement,

13 monitoring, followup, and other services to be provided di14 rectly by the brokering contractor within its own organiza15 tion, the services to be provided by the employers conduct16 ing the on-the-job training, and the services to be pro17 vided, with or without cost, by other agencies and sub18 contractors.

19 (C) If a brokering contractor enters into a contract

20 with a subcontractor to provide training or other services,

21 the brokering contractor shall ensure, through on-site

22 monitoring, compliance with the subcontract terms prior

23 to making payment to the subcontractor.

24 (4) In accordance with regulations issued by the Sec25 retary, on-the-job training contracts under this title shall
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1 not be entered into with employers who have received pay2 ments under previous contracts and have exhibited a pat3 tern of failing to provide on-the-job training participants

4 with continued long-term employment as regular employ5 ees with wages and employment benefits (including health

6 benefits) and working conditions at the same level and to

7 the same extent as other employees working a similar

8 length of time and doing the same type of work.

9 (e) PROHIBITION ON FEES.—No person or organiza10 tion may charge an individual a fee for the placement or

11 referral of such individual in or to a training program

12 under this title.

13 (f) PROHIBITION ON SUBSIDIZED EMPLOYMENT.—

14 No funds may be provided under this Act for any sub15 sidized employment with any private for-profit employer.

16 (g) RETENTION OF PROGRAM INCOME.—

17 (1) Income under any program under this title

18 administered by a public or private nonprofit entity

19 may be retained by such entity only if used to con20 tinue to carry out the program.

21 (2) Income subject to the requirements of para22 graph (1) shall include—

23 (A) receipts from goods or services (includ24 ing conferences) provided as a result of activi25 ties funded under the title;
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1 (B) funds provided to a service provider

2 under the title that are in excess of the costs

3 associated with the services provided; and

4 (C) interest income earned on funds re5 ceived under this title.

6 (3) For the purposes of this subsection, each

7 entity receiving financial assistance under this title

8 shall maintain records sufficient to determine the

9 amount of income received and the purposes for

10 which such income is expended.

11 (h) NOTIFICATION AND CONSULTATION REQUIRE12 MENTS.—The Secretary shall notify the Governor and the

13 appropriate chief elected officials of, and consult with the

14 Governor and such officials concerning, any activity to be

15 funded by the Secretary under this title within the State

16 or substate area; and the Governor shall notify the appro17 priate chief elected officials of, and consult with such con18 cerning, any activity to be funded by the Governor under

19 this title within the substate area.

20 (i) COOPERATIVE AGREEMENTS BETWEEN

21 STATES.—In the event that compliance with provisions of

22 this title would be enhanced by cooperative agreements be23 tween States, the consent of Cognress is hereby given to

24 such States to enter into such compacts and agreements
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1 to facilitate such compliance, subject to the approval of

2 the Secretary.

3 (j) PUBLIC SERVICE EMPLOYMENT PROHIBITION.—

4 Except as provided in section 132, no funds available

5 under this title may be used for public service employment.

6 (k) PROHIBITION ON EMPLOYMENT GENERATING

7 AND RELATED ACTIVITIES.—Except for funds available to

8 the Secretary to carry out section 132, no funds available

9 under this Act shall be used for employment generating

10 activities, economic development activities, investment in

11 revolving loan funds, capitalization of businesses, invest12 ment in contract bidding resource centers, and similar ac13 tivities, or for foreign travel.

14 (l) PROPERTY.—The Federal requirements governing

15 the title, use, and disposition of real property, equipment,

16 and supplies purchased with funds provided under this Act

17 shall be the Federal requirements generally applicable to

18 Federal grants to States and local governments.

19 SEC. 162. BENEFITS.

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

21 this title, the following provisions shall apply to all activi22 ties financed under this title:

23 (1) A participant under this title shall receive

24 no payments for training activities in which the par25 ticipant fails to participate without good cause.
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1 (2) Individuals in on-the-job training shall be

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

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

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

8 minimum wage law.

9 (3) Individuals employed in activities authorized

10 under this title shall be paid wages which shall not

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

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

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

15 prevailing rates of pay for individuals employed in

16 similar occupations by the same employer.

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

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

19 1938 (29 U.S.C. 206(a)(1))—

20 (A) shall be deemed to be references to

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

22 Commonwealth of Puerto Rico;

23 (B) shall be deemed to be references to

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

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

2 in other territorial jurisdictions in which section

3 6 of the Fair Labor Standards Act of 1938

4 does not apply.

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

6 payments to individuals participating in programs under

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

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

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

12 under the Social Security Act.

13 SEC. 163. LABOR STANDARDS.

14 (a) IN GENERAL.—

15 (1) Conditions of employment and training shall

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

18 proficiency of the participant.

19 (2) Health and safety standards established

20 under State and Federal law, otherwise applicable to

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

23 respect to any participant in a program conducted

24 under this title who is engaged in activities which

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

2 1970, the Secretary shall prescribe, by regulation,

3 such standards as may be necessary to protect the

4 health and safety of such participants.

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

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

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

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

13 the Secretary.

14 (4) All individuals employed in subsidized jobs

15 shall be provided benefits and working conditions at

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

18 the same type of work.

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

20 used for contributions on behalf of any participant

21 to retirement systems or plans.

22 (b) DISPLACEMENT.—

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

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

4 (A) existing contracts for services; or

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

8 elements of the proposed activities which affect

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

12 (3) No participant shall be employed or job

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

14 layoff from the same or any substantially equivalent

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

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

18 vacancy so created by hiring a participant whose

19 wages are subsidized under this title.

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

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

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

2 provide to the Secretary assurances that none of

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

4 union organizing.

5 (2) Any program conducted with funds made

6 available under this title which will provide services

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

10 (3) Where a labor organization represents a

11 substantial number of employees who are engaged in

12 similar work or training in the same area as that

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

15 submit comments with respect to such proposal.

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

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

21 not less than those prevailing on similar construction in

22 the locality as determined by the Secretary in accordance

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

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

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

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

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

8 SEC. 164. GRIEVANCE PROCEDURE.

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

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

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

14 persons. Hearings on any grievance shall be conducted

15 within thirty days of filing of a grievance and decisions

16 shall be made not later than sixty days after the filing

17 of a grievance. Except for complaints alleging fraud or

18 criminal activity, complaints shall be made within one year

19 of the alleged occurrence.

20 (b) GRIEVANCE PROCEDURE FOR EMPLOYERS OF

21 PARTICIPANTS.—Each recipient of financial assistance

22 under this title which is an employer of participants under

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

2 Upon exhaustion of the recipient’s grievance procedure

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

6 allegation or belief and determine within one hundred and

7 twenty days after receiving the complaint whether such al8 legation or complaint is true.

9 (d) INVESTIGATION BY SECRETARY.—

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

11 and such person exhausts the recipient’s grievance

12 procedure or the sixty-day time period described in

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

14 party to such procedure may submit the grievance to

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

18 has occurred.

19 (2) If the results of the investigation conducted

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

22 the recipient’s grievance procedure is warranted, or

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

24 has elapsed without a decision, the Secretary may

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

2 after an opportunity for a hearing in accordance

3 with the procedures under section 176.

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

8 (e) BINDING GRIEVANCE PROCEDURE.—

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

10 may, as an alternative to the procedures described in

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

13 bargaining agreement covering the parties to the

14 grievance so provides.

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

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

18 (f) REMEDIES AVAILABLE TO GRIEVANTS.—

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

21 violations of section 163 shall be limited to—

22 (A) suspension or termination of payments

23 under this Act;

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

2 has violated section 163, as determined under

3 subsection (d) or (e); and

4 (C) appropriate equitable relief (other than

5 back pay).

6 (2) In addition to the remedies available under

7 paragraph (1), remedies available under this section

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

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

11 (A) reinstatement of the grievant to the

12 position held by such grievant prior to displace13 ment;

14 (B) payment of lost wages and benefits;

15 and

16 (C) reestablishment of other relevant

17 terms, conditions, and privileges of employment.

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

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

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

22 PART E—FISCAL ADMINISTRATIVE PROVISIONS

23 SEC. 171. PROGRAM YEAR.

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

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

2 available for obligation only on the basis of a program

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

4 year for which the appropriation is made.

5 (b) EXPENDITURE OF OBLIGATED FUNDS.—Funds

6 obligated for any program year may be expended by each

7 recipient during that program year and the two succeeding

8 program years.

9 SEC. 172. PROMPT ALLOCATION OF FUNDS.

10 (a) PUBLICATION OF FORMULA ALLOCATIONS AND

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

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

14 fashion in the Federal Register the proposed amount to

15 be distributed to each recipient.

16 (b) PUBLICATION OF DISCRETIONARY ALLOCATION

17 FORMULA.—Whenever the Secretary utilizes a formula to

18 allot or allocate funds made available for distribution at

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

20 shall, not later than thirty days prior to such allotment

21 or allocation, publish such formula in the Federal Register

22 for comments along with the rationale for the formula and

23 the proposed amounts to be distributed to each State and

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

2 the Federal Register.

3 SEC. 173. MONITORING.

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

5 monitor all recipients of financial assistance under this

6 title to determine whether they are complying with the

7 provisions of this title and the regulations issued under

8 this title.

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

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

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

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

17 the records of the recipient are kept.

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

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

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

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

23 made applicable to the Secretary.

24 SEC. 174. FISCAL CONTROLS; SANCTIONS.

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

5 under this title. Such procedures shall ensure that

6 all financial transactions are conducted and records

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

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

11 equivalent to such principles generally applicable to

12 recipients of Federal grants funds. At a minimum,

13 such standards shall provide that, to be allowable,

14 costs must—

15 (A) be necessary and reasonable for proper

16 and efficient administration of the program

17 under this title;

18 (B) be allocable to the program under this

19 title; and

20 (C) not be a general expense required to

21 carry out the overall responsibilities of State or

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

24 (3) The Governor, in accordance with minimum

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

2 standards to ensure fiscal accountability and prevent

3 fraud and abuse in programs administered under

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

6 General of the Department of Labor and take into

7 consideration relevant aspects of the circulars issued

8 by the Director of the Office of Management and

9 Budget. Such minimum requirements shall include

10 provisions to ensure that for States, substate areas,

11 and career centers—

12 (A) procurements shall be conducted in a

13 manner providing full and open competition;

14 (B) the use of sole source procurements

15 shall be minimized to the extent practicable, but

16 in every case shall be justified;

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

19 and prices;

20 (D) procurements shall not provide excess

21 program income (for nonprofit and government

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

23 entities), and that appropriate factors shall be

24 utilized in determining whether such income or

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

2 performed;

3 (ii) the risk borne by the contractor;

4 and

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

7 (E) procurements shall clearly specify

8 deliverables and the basis for payment;

9 (F) written procedures shall be established

10 for procurement transactions;

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

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

14 award, or administration of a contract or grant

15 under this title;

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

19 (I) procurement transactions between units

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

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

23 monitoring of each substate grantee within the State

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

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

4 (3), the Governor shall—

5 (A) require corrective action to secure

6 prompt compliance; and

7 (B) impose the sanctions provided under

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

9 required corrective action.

10 (6) The Governor shall biennially certify to the

11 Secretary that—

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

15 (B) the State has monitored substate

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

18 (4); and

19 (C) the State has taken appropriate action

20 to secure compliance pursuant to paragraph

21 (5).

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

2 prompt compliance; and

3 (B) impose the sanctions provided under

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

6 (b) SUBSTANTIAL VIOLATIONS.—

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

8 audits or otherwise, the Governor determines that

9 there is a substantial violation of a specific provision

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

11 corrective action has not been taken, the Governor

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

14 (A) redesignating the substate grantee;

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

17 (C) merging the substate area into one or

18 more other existing substate areas; or

19 (D) other such changes as the Secretary or

20 Governor determines necessary to secure com21 pliance.

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

24 Secretary and shall not become effective until—

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

2 (B) The actions taken by the Governor pursu3 ant to paragraph (1)(B) may be appealed to the

4 Secretary, who shall make a final decision not later

5 than sixty days of the receipt of the appeal.

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

7 actions required under paragraph (1), the Secretary

8 shall take such actions.

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

10 repay to the United States amounts found not to have

11 been expended in accordance with this title. The Secretary

12 may offset such amounts against any other amount to

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

14 unless the Secretary determines that such recipient should

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

16 shall be taken except after notice and opportunity for a

17 hearing have been given to the recipient.

18 (d) LIABILITY FOR REPAYMENT OF FUNDS.—

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

20 amounts, from funds other than funds received

21 under this title, upon a determination that the

22 misexpenditures of funds was due to willful dis23 regard of the requirements of this title, gross neg24 ligence, or failure to observe accepted standards of
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1 administration. No such finding shall be made ex2 cept after notice and opportunity for a fair hearing.

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

5 violations by a subgrantee of such recipient under

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

8 has adequately demonstrated that it has—

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

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

13 (B) entered into a written contract with

14 such subgrantee which established clear goals

15 and obligations in unambiguous terms;

16 (C) acted with due diligence to monitor the

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

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

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

3 the requirements of paragraph (2), the Secretary

4 may waive the imposition of sanctions authorized by

5 this section upon such recipient. The Secretary is

6 authorized to impose any sanction consistent with

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

9 violation of this Act or the regulations under this

10 Act.

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

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

15 Secretary may immediately terminate or suspend financial

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

17 prompt notice and the opportunity for a subsequent hear18 ing within thirty days after such termination or suspen19 sion. The Secretary shall not delegate any of the functions

20 specified in this subsection, other than to an officer whose

21 appointment was required to be made by and with the ad22 vice and consent of the Senate.

23 (f) CORRECTIVE MEASURES.—If the Secretary deter24 mines that any recipient under this title has discharged

25 or in any other manner discriminated against a partici-
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1 pant or against any individual in connection with the ad2 ministration of the program involved, or against any indi3 vidual because such individual has filed any complaint or

4 instituted or caused to be instituted any proceeding under

5 or related to this title, or has testified or is about to testify

6 in any such proceeding or investigation under or related

7 to this title, or otherwise unlawfully denied to any individ8 ual a benefit under the provisions of this title, or the Sec9 retary’s regulations, the Secretary shall, within thirty

10 days, take such action or order such corrective measures,

11 as necessary, with respect to the recipient or the aggrieved

12 individual, or both.

13 (g) REMEDIES NOT EXCLUSIVE.—The remedies

14 under this section shall not be construed to be exclusive

15 remedies.

16 SEC. 175. REPORTS, RECORDKEEPING, AND INVESTIGA17 TIONS.

18 (a) RECORDS.—

19 (1) Recipients shall keep records that are suffi20 cient to permit the preparation of reports required

21 by this title and to permit the tracing of funds to

22 a level of expenditure adequate to insure that the

23 funds have not been spent unlawfully.

24 (2) Every recipient shall maintain such records

25 and submit such reports, in such form and contain-
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1 ing such information, as the Secretary requires re2 garding the performance of its programs. Such

3 records and reports shall be submitted to the Sec4 retary but shall not be required to be submitted

5 more than once each quarter unless specifically re6 quested by the Congress or a committee thereof.

7 (3) In order to allow for the preparation of na8 tional estimates necessary to meet the requirements

9 of subsection (c), recipients shall maintain standard10 ized records for all individual participants and pro11 vide to the Secretary a sufficient number of such

12 records to provide for an adequate analysis.

13 (4)(A) Except as provided in subparagraph (B),

14 records maintained by recipients pursuant to this

15 subsection shall be made available to the public upon

16 request.

17 (B) Subparagraph (A) shall not apply to—

18 (i) information, the disclosure of which

19 would constitute a clearly unwarranted invasion

20 of personal privacy; and

21 (ii) trade secrets, or commercial or finan22 cial information, obtained from a person and

23 privileged or confidential.
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1 (C) Recipients may charge fees sufficient to re2 cover costs applicable to the processing of requests

3 for records under subparagraph (A).

4 (b) INVESTIGATIONS.—

5 (1)(A) In order to evaluate compliance with the

6 provisions of this title, the Secretary shall conduct,

7 in several States, in each fiscal year investigations of

8 the use of funds received by recipients under this

9 title.

10 (B) In order to insure compliance with the pro11 visions of this title, the Comptroller General of the

12 United States may conduct investigations of the use

13 of funds received under this title by any recipient.

14 (2) In conducting any investigation under this

15 title, the Secretary or the Comptroller General of the

16 United States may not request the compilation of

17 any new information not readily available to such re18 cipient.

19 (3)(A) In carrying out any audit under this title

20 (other than any initial audit survey or any audit in21 vestigating possible criminal or fraudulent conduct),

22 either directly or through grant or contract, the Sec23 retary, the Inspector General, or the Comptroller

24 General shall furnish to the State, substate grantee,

25 recipient, or other entity to be audited, advance noti-
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1 fication of the overall objectives and purposes of the

2 audit, and any extensive recordkeeping or data re3 quirements to be met, not fewer than fourteen days

4 (or as soon as practicable), prior to the commence5 ment of the audit.

6 (B) If the scope, objectives, or purposes of the

7 audit change substantially during the course of the

8 audit, the entity being audited shall be notified of

9 the change as soon as practicable.

10 (C) The reports on the results of such audits

11 shall cite the law, regulation, policy, or other criteria

12 applicable to any finding.

13 (D) Nothing contained in this title shall be con14 strued so as to be inconsistent with the Inspector

15 General Act of 1978 (5 U.S.C. App.) or government

16 auditing standards issued by the Comptroller Gen17 eral.

18 (c) RESPONSIBILITIES OF FUND RECIPIENTS.—Each

19 State, each substate grantee, each career center, and each

20 recipient (other than a subrecipient, grantee or contractor

21 of a recipient) receiving funds under this title shall—

22 (1) make readily accessible reports concerning

23 its operations and expenditures as shall be pre24 scribed by the Secretary;
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1 (2) prescribe and maintain comparable manage2 ment information systems, in accordance with guide3 lines that shall be prescribed by the Secretary, de4 signed to facilitate the uniform compilation, cross

5 tabulation, and analysis of programmatic, partici6 pant, and financial data, on statewide and substate

7 area bases, necessary for reporting, monitoring, and

8 evaluating purposes, including data necessary to

9 comply with section 177; and

10 (3) monitor the performance of service provid11 ers in complying with the terms of grants, contracts,

12 or other agreements made pursuant to this Act.

13 (d) RETENTION OF RECORDS.—The Governor shall

14 ensure that requirements are established for retention of

15 all records pertinent to all grants awarded, and contracts

16 and agreements entered into, under this title, including

17 financial, statistical, property and participant records and

18 supporting documentation. For funds allotted to a State

19 for any program year, records shall be retained for two

20 years following the date on which the annual expenditure

21 report containing the final expenditures charged to such

22 program year’s allotment is submitted to the Secretary.

23 Records for nonexpendable property shall be retained for

24 a period of three years after final disposition of the prop25 erty.
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1 (e) FINANCIAL RECORDS.—Each State, substate

2 grantee, and career center shall maintain records with re3 spect to programs under this title that identify—

4 (1) any program income or profits earned, in5 cluding such income or profits earned by

6 subrecipients; and

7 (2) any costs incurred (such as stand-in costs)

8 that are otherwise allowable except for funding limi9 tations.

10 SEC. 176. ADMINISTRATIVE ADJUDICATION.

11 (a) IN GENERAL.—Whenever any applicant for finan12 cial assistance under this title is dissatisfied because the

13 Secretary has made a determination not to award financial

14 assistance in whole or in part to such applicant, the appli15 cant may request a hearing before an administrative law

16 judge of the Department of Labor. A similar hearing may

17 also be requested by any recipient upon whom a corrective

18 action or a sanction has been imposed by the Secretary.

19 Except to the extent provided for in section 161(b), sub20 sections (d) and (e) of section 164, or section 177, all

21 other disputes arising under this title shall be adjudicated

22 under grievance procedures established by the recipient or

23 under applicable law other than this title.

24 (b) FINAL DECISIONS.—The decisions of the admin25 istrative law judge shall constitute final action by the Sec-
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1 retary unless, within twenty days after receipt of the deci2 sion of the administrative law judge, a party dissatisfied

3 with the decision or any part thereof has filed exception

4 with the Secretary specifically identifying the procedure,

5 fact, law, or policy to which exception is taken. Any excep6 tion not specifically urged shall be deemed to have been

7 waived. Thereafter the decision of the administrative law

8 judge shall become the final decision of the Secretary un9 less the Secretary, within thirty days of such filing, has

10 notified the parties that the case has been accepted for

11 review.

12 (c) DEADLINE FOR REVIEW.—Any case accepted for

13 review by the Secretary shall be decided within one hun14 dred and eighty days of such acceptance. If not so decided,

15 the decision of the administrative law judge shall become

16 the final decision of the Secretary.

17 (d) APPLICABLE PROVISIONS.—The provisions of

18 section 178 shall apply to any final action of the Secretary

19 under this section.

20 SEC. 177. NONDISCRIMINATION.

21 (a) IN GENERAL.—

22 (1) For the purpose of applying the prohibitions

23 against discrimination on the basis of age under the

24 Age Discrimination Act of 1975, on the basis of dis25 ability under section 504 of the Rehabilitation Act,
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1 on the basis of sex under title IX of the Education

2 Amendments of 1972, or on the basis of race, color,

3 or national origin under title VI of the Civil Rights

4 Act of 1964, programs and activities funded or oth5 erwise financially assisted in whole or in part under

6 this title are considered to be programs and activi7 ties receiving Federal financial assistance.

8 (2) No individual shall be excluded from partici9 pation in, denied the benefits of, subjected to dis10 crimination under, or denied employment in the ad11 ministration of or in connection with any such pro12 gram because of race, color, religion, sex, national

13 origin, age, political affiliation or belief, or status as

14 a qualified individual with disabilities.

15 (3) Participants shall not be employed on the

16 construction, operation, or maintenance of so much

17 of any facility as is used or to be used for sectarian

18 instruction or as a place for religious worship.

19 (4) With respect to terms and conditions affect20 ing, or rights provided to, individuals who are par21 ticipants in activities supported by funds provided

22 under this title, such individuals shall not be dis23 criminated against solely because of their status as

24 such participants.
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1 (5) Participation in programs and activities fi2 nancially assisted in whole or in part under this title

3 shall be open to citizens and nationals of the United

4 States, lawfully admitted permanent resident aliens,

5 lawfully admitted refugees and parolees, and other

6 individuals authorized by the Attorney General to

7 work in the United States.

8 (b) FAILURE TO COMPLY.—Whenever the Secretary

9 finds that a State or other recipient has failed to comply

10 with a provision of law referred to in subsection (a)(1),

11 with paragraph (2), (3), (4), or (5) of subsection (a), or

12 with an applicable regulation prescribed to carry out such

13 paragraphs, the Secretary shall notify such State or recipi14 ent and shall request it to comply. If within a reasonable

15 period of time, not to exceed sixty days, the State or recip16 ient fails or refuses to comply, the Secretary may—

17 (1) refer the matter to the Attorney General

18 with a recommendation that an appropriate civil ac19 tion be instituted;

20 (2) exercise the powers and functions provided

21 by title VI of the Civil Rights Act of 1964, the Age

22 Discrimination Act of 1975, or section 504 of the

23 Rehabilitation Act, as may be applicable; or

24 (3) take such other action as may be provided

25 by law.
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1 (c) REFERRAL TO ATTORNEY GENERAL.—When a

2 matter is referred to the Attorney General pursuant to

3 subsection (b)(1), or whenever the Attorney General has

4 reason to believe that a State or other recipient is engaged

5 in a pattern or practice in violation of a provision of law

6 referred to in subsection (a)(1) or in violation of para7 graph (2), (3), (4), or (5) of subsection (a), the Attorney

8 General may bring a civil action in any appropriate district

9 court of the United States for such relief as may be appro10 priate, including injunctive relief.

11 SEC. 178. JUDICIAL REVIEW.

12 (a) IN GENERAL.—

13 (1) With respect to any final order by the Sec14 retary under section 176 whereby the Secretary de15 termines to award, to not award, or to only condi16 tionally award, financial assistance, with respect to

17 any final order of the Secretary under section 176,

18 with respect to a corrective action or sanction im19 posed under section 174, any party to a proceeding

20 which resulted in such final order may obtain review

21 of such final order in the United States Court of Ap22 peals having jurisdiction over the applicant or recipi23 ent of funds, by filing a review petition within thirty

24 days of such final order.
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1 (2) The clerk of the court shall transmit a copy

2 of the review petition to the Secretary, who shall file

3 the record upon which the final order was entered as

4 provided in section 2112 of title 28, United States

5 Code. Review petitions, unless ordered by the court,

6 shall not stay the Secretary’s order. Petitions under

7 this title shall be heard expeditiously, if possible

8 within ten days of the filing of a reply brief.

9 (3) No objection to the order of the Secretary

10 shall be considered by the court unless the objection

11 shall have been specifically and timely urged before

12 the Secretary. Review shall be limited to questions

13 of law and the Secretary’s findings of fact shall be

14 conclusive if supported by substantial evidence.

15 (b) JURISDICTION OF THE COURT.—The court shall

16 have jurisdiction to make and enter a decree affirming,

17 modifying, or setting aside the order of the Secretary in

18 whole or in part. The court’s judgment shall be final, sub19 ject to certiorari review by the Supreme Court of the

20 United States as provided in section 1254(1) of title 28,

21 United States Code.

22 SEC. 179. ADMINISTRATIVE PROVISIONS.

23 (a) RULES AND REGULATIONS.—The Secretary may,

24 in accordance with chapter 5 of title 5, United States

25 Code, prescribe such rules and regulations (including per-
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1 formance standards) as the Secretary deems necessary.

2 Such rules and regulations may include adjustments au3 thorized by section 204 of the Intergovernmental Coopera4 tion Act of 1968. All such rules and regulations shall be

5 published in the Federal Register at least thirty days prior

6 to their effective date. Copies of all such rules and regula7 tions shall be transmitted to the appropriate committees

8 of the Congress at the same time and shall contain, with

9 respect to each material provision of such rules and regu10 lations, citations to the particular substantive section of

11 law which is the basis therefor.

12 (b) GIFTS.—The Secretary is authorized, in carrying

13 out this title, to accept, purchase, or lease in the name

14 of the department, and employ or dispose of in furtherance

15 of the purposes of this title, any money or property, real,

16 personal, or mixed, tangible or intangible, received by gift,

17 devise, bequest, or otherwise, and to accept voluntary and

18 uncompensated services notwithstanding the provisions of

19 section 1342 of title 31, United States Code.

20 (c) AUTHORITY TO EXPEND FUNDS.—The Secretary

21 may make such grants, contracts, or agreements, establish

22 such procedures and make such payments, in installments

23 and in advance or by way of reimbursement, or otherwise

24 allocate or expend funds under this title as necessary to

25 carry out this title, including (without regard to the provi-
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1 sions of section 4774(d) of title 10, United States Code)

2 expenditures for construction, repairs, and capital im3 provements, and including necessary adjustments in pay4 ments on account of overpayments or underpayments.

5 (d) USE OF SERVICES AND FACILITIES.—The Sec6 retary is authorized, in carrying out this title, under the

7 same conditions applicable under section 179(c) or to the

8 extent permitted by law other than this title, to accept

9 and use the services and facilities of departments, agen10 cies, and establishments of the United States. The Sec11 retary is also authorized to accept and use the services

12 and facilities of the agencies of any State or political sub13 division of a State, with its consent.

14 (e) POLITICAL ACTIVITIES.—The Secretary shall not

15 provide financial assistance for any program under this

16 title which involves political activities.

17 SEC. 180. OBLIGATIONAL AUTHORITY.

18 Notwithstanding any other provision of this title, no

19 authority to enter into contracts or financial assistance

20 agreements under this title shall be effective except to

21 such extent or in such amount as are provided in advance

22 in appropriation Acts.

23 SEC. 181. CRIMINAL PROVISIONS.

24 Section 665 of title 18, United States Code, is

25 amended by striking ‘‘or the Job Training Partnership
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1 Act’’ each place it appears and inserting ‘‘, the Job Train2 ing Partnership Act, or title I of the Reemployment and

3 Training Act of 1994’’.

4 SEC. 182. REFERENCES.

5 Effective on the date of enactment of this title, all

6 references in any other statute other than this Act, and

7 other than in section 665 of title 18, United States Code,

8 to the Job Training Partnership Act shall be deemed to

9 also refer to title I of the Reemployment and Training Act

10 of 1994.

11 PART F—MISCELLANEOUS PROVISIONS

12 SEC. 191. EFFECTIVE DATE.

13 This title shall take effect on July 1, 1995.

14 SEC. 192. REPEALERS.

15 (a) IN GENERAL.—The following programs shall ter16 minate on July 1, 1995:

17 (1) The program authorized pursuant to sec18 tions 301–324 of the Job Training Partnership Act,

19 commonly referred to as EDWAA.

20 (2) The program authorized under section 325

21 of such Act, commonly referred to as the Defense

22 Conversion Adjustment Program.

23 (3) The program authorized under section

24 325A of such Act, commonly referred to as the De25 fense Diversification Program.
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1 (4) The program authorized under section 326

2 of such Act, commonly referred to as the Clean Air

3 Employment Transition Assistance Program.

4 (b) ADDITIONAL PROGRAM.—Part J of title IV and

5 section 462(e) of the Job Training Partnership Act shall

6 terminate on July 1, 1995.

7 SEC. 193. TRANSITION.

8 The Secretary may establish such rules and proce9 dures as may be necessary to provide for the orderly tran10 sition from the programs described in section 192(a) to

11 the program authorized under this title.

12 TITLE II—ONE-STOP CAREER CENTER

13 SYSTEM

14 SEC. 201. STATEMENT OF PURPOSE.

15 It is the purpose of this title to—

16 (1) establish a national program of grants and

17 waivers of Federal statutory and regulatory require18 ments to provide the States with the opportunity, on

19 a voluntary basis, to develop and implement net20 works of one-stop career centers;

21 (2) provide seed money to encourage the devel22 opment of a flexible, nationwide system of one-stop

23 career centers;

24 (3) promote universal access, by individuals and

25 employers, to a comprehensive menu of quality em-
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1 ployment, education and training information and

2 services;

3 (4) encourage a customer-centered approach to

4 the provision of services, including features to en5 hance customer choice and ensure that the satisfac6 tion of individuals with services received is a primary

7 consideration in the administration of the program;

8 (5) establish a governance structure composed

9 of State, local and Federal partners to ensure com10 mon goals, effective planning, service coordination

11 and oversight of Statewide one-stop career center

12 networks; and

13 (6) provide the States and local areas with in14 creased flexibility in the administration of employ15 ment and training programs in exchange for greater

16 accountability for outcomes.

17 PART A—COMPONENTS OF VOLUNTARY ONE18 STOP CAREER CENTER SYSTEM

19 SEC. 211. GENERAL REQUIREMENTS.

20 For purposes of receiving a grant or waiver under

21 this title (except as provided in section 233(b)(1)(A)), a

22 one-stop career center system shall include—

23 (1) the establishment and operation of a

24 workforce investment board in accordance with sec25 tion 212;
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1 (2) the establishment of one-stop career centers

2 in accordance with the procedures described in sec3 tion 213;

4 (3) the provision of services through the one5 stop career centers in accordance with section 214;

6 (4) the participation of Federal programs in ac7 cordance with section 215;

8 (5) agreements concerning the operation of the

9 one-stop career centers in accordance with section

10 216;

11 (6) quality assurance systems in accordance

12 with section 217; and

13 (7) the establishment and operation of a State

14 Human Resource Investment Council in accordance

15 with section 218.

16 SEC. 212. WORKFORCE INVESTMENT BOARDS.

17 (a) DESIGNATION OF ONE-STOP SERVICE AREAS.—

18 (1) The Governor shall, after consultation with

19 the State Human Resource Investment Council, des20 ignate one-stop service areas within the State.

21 (2) The one-stop service areas designated pur22 suant to paragraph (1) shall be—

23 (A) the geographic boundaries of the labor

24 market areas within the State, except that no
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1 service delivery area or substate area may be

2 divided among two or more areas;

3 (B) the substate areas or consortium of

4 such areas; or

5 (C) the service delivery areas or consor6 tium of such areas.

7 (3) The Governor may not redesignate one-stop

8 service areas more frequently than once every four

9 years.

10 (b) ESTABLISHMENT OF BOARDS.—

11 (1) IN GENERAL.—For each one-stop service

12 area designated under subsection (a), the local elect13 ed officials from such area shall establish a

14 workforce investment board that meets the require15 ments of this subsection.

16 (2) COMPOSITION.—Each workforce investment

17 board shall consist of—

18 (A) representatives of private sector em19 ployers, who shall constitute a majority of the

20 board and who shall be owners of business con21 cerns, chief executives or chief operating offi22 cers of businesses, or the chief manager of a

23 plant or subdivision of a firm;

24 (B) representatives of organized labor and

25 community-based organizations, who shall con-
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1 stitute not less than 25 percent of the member2 ship of the board and who shall be officers of

3 such organizations;

4 (C) representatives of educational institu5 tions;

6 (D) appropriate community leaders, such

7 as leaders of economic development agencies,

8 human service agencies and institutions, veter9 ans organizations, and entities providing job

10 training; and

11 (E) a local elected official, who shall be a

12 nonvoting member.

13 (3) NOMINATIONS.—

14 (A) EMPLOYER REPRESENTATIVES.—(i)

15 The representatives of employers under para16 graph (2)(A) shall be selected from among indi17 viduals nominated by general purpose business

18 organizations after consulting with, and receiv19 ing recommendations from, other business orga20 nizations in the one-stop service area.

21 (ii) For the purposes of this subparagraph,

22 the term ‘‘general purpose business organiza23 tions’’ means organizations which admit to

24 membership any for-profit business operating

25 within the one-stop service area.
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1 (B) LABOR REPRESENTATIVES.—The rep2 resentatives of organized labor under paragraph

3 (2)(B) shall be selected from individuals rec4 ommended by recognized State and local labor

5 federations. If the State or local labor federa6 tion fails to nominate a sufficient number of in7 dividuals to be appointed for such category, in8 dividual workers may be included on the board

9 as labor representatives.

10 (C) ELECTED OFFICIAL.—In any case in

11 which there are two or more units of general

12 local government in the one-stop service area,

13 the local elected officials of such units shall de14 termine which official shall be appointed to the

15 board.

16 (D) OTHER MEMBERS.—The members of

17 the board appointed to represent community18 based organizations under paragraph (2)(B),

19 educational institutions under paragraph

20 (2)(C), and the community leaders appointed

21 under paragraph (2)(D) shall be selected from

22 individuals recommended by interested organi23 zations.

24 (4) APPOINTMENT PROCESS.—(A)(i) In any

25 case in which there is only one unit of general local
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1 government within the one-stop service area, the

2 chief elected official of that unit shall appoint mem3 bers to the board from the individuals nominated or

4 recommended under paragraph (3).

5 (ii) In any case in which there are two or more

6 such units of general local government in the one

7 stop service area, the chief elected officials of such

8 units shall appoint members to the board from the

9 individuals so nominated or recommended in accord10 ance with an agreement entered into by such units

11 of general local government. In the absence of such

12 an agreement, the appointments shall be made by

13 the Governor from the individuals so nominated or

14 recommended.

15 (B) The number of members of the board shall

16 be initially determined—

17 (i) by the chief elected official in the case

18 described in subparagraph (A)(i),

19 (ii) by the chief elected officials in accord20 ance with the agreement in the case described

21 in subparagraph (A)(ii), or

22 (iii) by the Governor in the absence of such

23 agreement.

24 Thereafter, the number of members of the board

25 shall be determined by the board.
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1 (C) Members shall be appointed for fixed and

2 staggered terms and may serve until their successors

3 are appointed. Any vacancy in the membership of

4 the board shall be filled in the same manner as the

5 original appointment. Any member of the board may

6 be removed for cause in accordance with procedures

7 established by the board.

8 (5) CHAIRPERSON.—Each workforce investment

9 board shall elect a chairperson, by a majority vote

10 of the members of the board, from among members

11 of the Board who are not the local elected official or

12 heads of public agencies. The term of the chair13 person shall be determined by the board.

14 (6) STAFF.—The Chairperson of each

15 workforce investment board shall appoint staff, who

16 are not concurrently on the staff of any participating

17 program, to assist such board in carrying out the

18 functions prescribed in this section. Such staff may

19 include an executive director.

20 (7) CONFLICT OF INTEREST.—No member of a

21 workforce investment board shall cast a vote on the

22 provision of services by that member (or any organi23 zation which that member directly represents) or

24 vote on any matter which would provide direct finan25 cial benefit to that member.
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1 (8) PRIVATE INDUSTRY COUNCILS.—A private

2 industry council may become a workforce investment

3 board if the local elected official or officials deter4 mine such council is appropriate and such council—

5 (A) meets the requirements of this sub6 section, or

7 (B) is reconstituted to meet the require8 ments of this subsection.

9 (9) STATE HUMAN RESOURCE INVESTMENT

10 COUNCIL.—In any case in which the one-stop service

11 area is a State, the State human resource invest12 ment council or a portion of such council may be re13 constituted to meet the requirements of this sub14 section.

15 (10) CERTIFICATION.—The Governor shall cer16 tify a workforce investment board if the Governor

17 determines that its composition and appointments

18 are consistent with the provisions of this subsection.

19 Such certification shall be made or denied within

20 thirty days after the date on which the list of mem21 bers and necessary supporting documentation are

22 submitted to the Governor. When the Governor cer23 tifies the board, it shall be convened within thirty

24 days by the official or officials who made the ap25 pointments under paragraph (4).
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1 (c) FUNCTIONS OF BOARD.—

2 (1) STRATEGIC PLANNING.—Each workforce in3 vestment board shall develop a strategic plan and

4 provide policy guidance with respect to the workforce

5 development programs that are administered in the

6 one-stop service area. Such strategic plan shall be

7 consistent with the statewide strategic plan devel8 oped by the State Human Resource Investment

9 Council pursuant to section 218 and shall include—

10 (A) measureable objectives for improving

11 the quality and effectiveness of workforce prep12 aration, development and training in the one13 stop service area; and

14 (B) methods for coordinating the

15 workforce development programs conducted in

16 the one-stop service area to enhance the deliv17 ery of services, including methods to maximize

18 the coverage of such workforce and appropriate

19 population subgroups, and ensure equitable ac20 cess to services by such subgroups.

21 (2) IDENTIFICATION OF OCCUPATIONS IN DE22 MAND AND TRAINING NEEDS.—In carrying out this

23 subsection, the workforce investment board shall uti24 lize available labor market information and other ap25 propriate methods in order to identify the jobs cur-
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1 rently available, the occupations currently in de2 mand, and the occupations likely to be in demand in

3 the future in the one-stop service area; the skill re4 quirements relating to such jobs and occupations;

5 and education and training services in the one-stop

6 service area that are available to assist individuals in

7 acquiring such skills. Such information shall be used

8 in developing the goals of, and activities to be pro9 vided by, the workforce development programs in the

10 labor market area and disseminated to the public

11 through the one-stop career centers established in

12 such area.

13 (3) BUDGETS.—The workforce investment

14 board shall review and approve the budgets of the

15 participating programs described in subparagraphs

16 (A)–(E) of section 215(a), and the budgets for the

17 one-stop career centers pursuant to section 216(c),

18 and review and provide recommendations regarding

19 the budgets of other participating programs de20 scribed in section 215(b) to encourage coordination

21 and enhance the delivery of services.

22 (4) ASSUMPTION OF FUNCTIONS.—

23 (A) IN GENERAL.—The workforce invest24 ment board shall assume the functions of the

25 private industry council described in section
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1 103 of the Job Training Partnership Act and of

2 the Job Service Employer Committees.

3 (B) LIMITATION.—The workforce invest4 ment board shall not be the administrative en5 tity for programs under title II of the Job

6 Training Partnership Act and shall not operate

7 any other programs.

8 (5) OVERSIGHT.—The workforce investment

9 board shall conduct oversight of the implementation

10 of the strategic plan and the overall performance of

11 the participating programs described in section 215.

12 (6) CHARTERING OF CENTERS.—Each

13 workforce investment board shall administer the pro14 cedures for the chartering of one-stop career centers

15 described in section 214(c).

16 SEC. 213. ESTABLISHMENT OF ONE-STOP CAREER CEN17 TERS.

18 (a) IN GENERAL.—The Governor and local elected of19 ficial or officials shall jointly select either the option de20 scribed in subsection (b) or the option described in sub21 section (c) as the method for establishing one-stop career

22 centers for each one-stop service area.

23 (b) CONSORTIUM OPTION.—
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1 (1) CONSORTIUM MEMBERS.—One-stop career

2 centers in the one-stop service area shall be adminis3 tered by a consortium that consists of—

4 (A) the Employment Service;

5 (B) the substate grantee or grantees for

6 title I of this Act;

7 (C) the administrative entity or entities for

8 title II of the Job Training Partnership Act;

9 (D) the State agency charged with the ad10 ministration of the State unemployment com11 pensation law, unless such agency chooses not

12 to participate; and

13 (E) one or more additional entities that

14 shall be—

15 (i) any unit of government,

16 (ii) any public or private provider of

17 reemployment, education and training or

18 social services, or

19 (iii) a consortium of the entities de20 scribed in clauses (i) and (ii).

21 (2) ESTABLISHMENT CRITERIA.—In order to be

22 designated to operate the one-stop career center sys23 tem, the consortium established in accordance with

24 paragraph (1) shall demonstrate to the satisfaction
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1 of the workforce investment board the ability of such

2 consortium to—

3 (A) meet the criteria described in clauses

4 (i)-(vi) of subsection (c)(6)(B),

5 (B) provide for customer choice in obtain6 ing the basic services described in section

7 214(a) by—

8 (i) operating two or more centers, and

9 (ii) administering budget resources to

10 reflect, at least in part, the extent to which

11 each center is used by the public, and

12 (C) provide equitable access to centers by

13 segments of the population within the one-stop

14 service area.

15 (3) INTEGRATION OF PROGRAM ADMINISTRA16 TION.—Consortia established in accordance with

17 paragraph (1) shall, in addition to meeting the es18 tablishment criteria described in paragraph (2),

19 identify to the workforce investment board proce20 dures that would be used to promote the integration

21 of the administration of the programs conducted by

22 the members of such consortium, such as procedures

23 to provide for the cross-training of staff, promote

24 the collocation of facilities, and encourage the use of

25 common forms and practices.
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1 (4) RENEWAL OF CHARTER.—The Governor

2 and local elected official or officials, in consultation

3 with the workforce investment board, shall review

4 the performance of the consortium and once every

5 four years determine whether to renew the charter

6 of the consortium.

7 (c) MULTIPLE INDEPENDENT OPERATOR OPTION.—

8 (1) MULTIPLE INDEPENDENT OPERATORS.—

9 The workforce investment board shall select, in ac10 cordance with the requirements of this subsection,

11 two or more entities to operate one-stop career cen12 ters in the one-stop service area.

13 (2) ELIGIBLE ENTITIES.—Any entity or consor14 tium of entities located in the one-stop service area

15 may apply, in accordance with the procedures de16 scribed in paragraph (4), to be selected as a one17 stop career center operator. Such entities may in18 clude—

19 (A) Employment Service offices,

20 (B) career center operators under title I of

21 this Act,

22 (C) service delivery area grant recipients or

23 administrative entities under the Job Training

24 Partnership Act,
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1 (D) community colleges and area voca2 tional schools,

3 (E) community-based and other private

4 for-profit and nonprofit organizations, and

5 (F) other interested private and public or6 ganizations and entities.

7 (3) SPECIAL RULE.—If the Employment Serv8 ice, or a consortium including the Employment Serv9 ice, applies to be selected as one-stop career center

10 operator and such Employment Service or consor11 tium meets the selection criteria developed pursuant

12 to paragraph (6), the workforce investment board

13 shall select such Employment Service or consortium

14 to be one of the operators.

15 (4) PUBLICATION OF PROCEDURES.—The

16 workforce investment board, after consultation with

17 the Governor and local elected officials, shall pub18 lish, in a manner that is generally available, infor19 mation to notify organizations and individuals in the

20 one-stop service area of—

21 (A) the estimated number of one-stop ca22 reer centers needed and proposed number of op23 erators to be selected in the one-stop service

24 area, as determined in accordance with para25 graph (5);
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1 (B) the application procedure for any en2 tity or consortium of entities to be selected as

3 such center operator, including when and where

4 such application is to be submitted and what in5 formation such application is to contain;

6 (C) the criteria for selection that will be

7 used, as determined in accordance with para8 graph (6); and

9 (D) other information the workforce in10 vestment board considers relevant to the selec11 tion and administration of such center opera12 tors.

13 (5) NUMBER OF ONE-STOP CENTER OPERA14 TORS.—The workforce investment board shall deter15 mine the number of one-stop career center operators

16 to be selected in the one-stop service area. In deter17 mining the appropriate number of such operators,

18 which shall not be less than two, the workforce in19 vestment board shall take into account—

20 (A) the size of the labor market;

21 (B) the number of customers who will po22 tentially use the one-stop career centers, includ23 ing unemployed and discouraged workers, em24 ployed workers, economically disadvantaged in-
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1 dividuals, students, out-of-school youth, older

2 workers, veterans, and employers;

3 (C) the number and capabilities of poten4 tial operators; and

5 (D) equitable access to centers by seg6 ments of the population within the one-stop

7 service area.

8 (6) SELECTION CRITERIA.—

9 (A) OBJECTIVE FACTORS.—The workforce

10 investment board, consistent with guidelines is11 sued by the Secretary, shall use objective cri12 teria and performance measures in assessing

13 applications submitted for selection as a one14 stop career center operator.

15 (B) CONTENTS.—An applicant may not be

16 selected as a one-stop career center operator

17 under this title unless such applicant dem18 onstrates to the satisfaction of the workforce in19 vestment board the ability to establish a one20 stop career center or centers that would—

21 (i) provide the services described in

22 section 214;

23 (ii) utilize automated information sys24 tems to facilitate the exchange of informa25 tion among career centers;
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1 (iii) meet the performance standards

2 prescribed pursuant to section 217;

3 (iv) ensure effective fiscal and pro4 gram management;

5 (v) administer the process of referring

6 participants to education and training

7 services in an objective and equitable man8 ner; and

9 (vi) provide services on a nondiscrim10 inatory basis to the population in the one11 stop service area.

12 (7) SINGLE OPERATOR EXCEPTION.—Notwith13 standing the number of operators to be selected pur14 suant to paragraph (5), if only one applicant meets

15 the selection criteria developed pursuant to para16 graph (6), the workforce investment board may se17 lect the single applicant to operate the one-stop ca18 reer center system.

19 (8) PERIOD OF SELECTION.—The workforce in20 vestment board shall select one-stop career center

21 operators pursuant to the requirements of this sub22 section once every four years.

23 (d) CHARTERS.—The workforce investment board

24 shall issue a charter to each one-stop career center des25 ignated pursuant to this section. Such charter shall—
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1 (1) identify the number and location of the one2 stop career centers in the one-stop service area;

3 (2) identify the entity or entities operating the

4 one-stop career centers;

5 (3) provide for the display of the one-stop ca6 reer center national logo developed pursuant to sec7 tion 243(c); and

8 (4) include such other conditions as the

9 workforce investment board determines is appro10 priate.

11 (e) ENFORCEMENT OF HONEST BROKER FUNC12 TIONS.—The workforce investment board shall review, not

13 less than once each program year, the education and train14 ing referral practices of any one-stop career center that

15 is operated by an entity that concurrently provides edu16 cation and training services to participants under this

17 title. If the workforce investment board determines that

18 such center has engaged in a pattern of inappropriate re19 ferrals to the education and training services provided by

20 the operator of such center, the Board may terminate the

21 charter to operate such center or may require such opera22 tor to cease providing education and training services to

23 participants under this title as a condition for continuing

24 to operate such center.
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1 SEC. 214. SERVICES TO BE PROVIDED THROUGH ONE-STOP

2 CAREER CENTERS.

3 (a) BASIC SERVICES.—Each one-stop career center

4 established pursuant to this title shall make available to

5 the public free of charge the following basic services:

6 (1) Outreach to make individuals aware of, and

7 encourage the use of, employment and training serv8 ices, including efforts to expand awareness of train9 ing and placement opportunities for limited-English

10 proficient individuals, disadvantaged youth and

11 adults, and individuals with disabilities.

12 (2) Intake and orientation to the information

13 and services available through such center.

14 (3) Assistance in filing an initial claim for un15 employment compensation.

16 (4) Preliminary assessment of the skill levels

17 (including appropriate testing) and service needs of

18 such individuals, which may include such factors as

19 basic skills, occupational skills, prior work experi20 ence, employability, interests, aptitudes, and sup21 portive service needs.

22 (5) Information relating to local, regional and

23 national labor markets, including—

24 (A) job vacancy listings in such markets,

25 and
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1 (B) information relating to local occupa2 tions in demand and the earnings and skill re3 quirements for such occupations.

4 (6) Job search assistance, including resume and

5 interview preparation, and workshops.

6 (7) Job referral and job placement assistance.

7 (8) Information relating to job training and

8 education programs (including student financial as9 sistance), including the eligibility requirements of

10 and services provided by such programs, the avail11 ability and quality of such programs, and referrals

12 to such programs where appropriate.

13 (9) Information collected pursuant to the per14 formance standards and customer feedback require15 ments of section 217.

16 (10) Assistance in evaluating whether such indi17 viduals are likely to be eligible for any program par18 ticipating in the career center.

19 (11) Information relating to programs and pro20 viders of dependent care and other supportive serv21 ices available in the local area.

22 (12) Soliciting and accepting job orders submit23 ted by employers in the one-stop service area, and

24 screening and referring applicants in accordance

25 with such orders.
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1 (b) INTENSIVE SERVICES.—Each one-stop career

2 center established pursuant to this title shall make availble

3 to participants in the program described under title I of

4 this Act who are unable to obtain employment through the

5 basic services described in subsection (a), and may make

6 available to other individuals, in accordance with the writ7 ten agreement developed pursuant to section 216, the fol8 lowing intensive services:

9 (1) Comprehensive and specialized assessments

10 of the skill levels and service needs of individuals,

11 which may include—

12 (A) diagnostic testing and other assess13 ment tools; and

14 (B) in-depth interviewing and evaluation to

15 identify employment barriers and appropriate

16 employment goals.

17 (2) The development of an individual reemploy18 ment plan, which shall identify the employment goal

19 (including in appropriate circumstances, nontradi20 tional employment), appropriate achievement objec21 tives, and the appropriate combination of services

22 for a participant to achieve the employment goal.

23 (3) Group counseling, including peer counseling,

24 which may be available to individuals jointly with

25 their immediate families, and which may include
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1 counseling relating to stress management and finan2 cial management and which shall be a basic service

3 for participants in the program established under

4 title I of this Act.

5 (4) Individualized counseling and career plan6 ning, including peer counseling and counseling and

7 planning relating to nontraditional employment op8 portunities.

9 (5) Case management for individuals receiving

10 education, training and supportive services, includ11 ing periodically reviewing the individual’s progress

12 toward achieving his or her employment goal.

13 (6) Job development.

14 (7) Out-of-area job search allowances.

15 (8) Relocation allowances.

16 (9) Assistance in the selection of education and

17 training providers.

18 (10) Assistance in obtaining income support for

19 which the individual is eligible, to enable such indi20 vidual to participate in training.

21 (11) Supportive services.

22 (12) Follow-up counseling for individuals placed

23 in training or employment.
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1 (c) SPECIALIZED EMPLOYER SERVICES.—Each one2 stop career center established pursuant to this title may

3 provide to employers the following services:

4 (1) Customized screening and referral of indi5 viduals for employment.

6 (2) Customized assessment of skill levels of the

7 employer’s current employees.

8 (3) Analysis of the employer’s workforce skill

9 needs.

10 (4) Other specialized employment and training

11 services.

12 (d) ADDITIONAL SERVICES.—Each one-stop career

13 center established pursuant to this title may make avail14 able such additional services as are specified in the written

15 agreement under section 216.

16 (e) FEES.—

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

18 subparagraph (B), each one-stop career center may

19 charge fees for the services described in subsections

20 (b), (c), and (d) if such fees are approved by the

21 workforce investment board.

22 (B) No fees may be charged to an individual for

23 any service which such individual is eligible to re24 ceive free of charge under any participating program

25 described in section 215 unless there are no funds
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1 available under such program to provide such serv2 ices.

3 (2) PROGRAM INCOME.—All program income re4 ceived by a one-stop career center that is operated

5 by a public or private non-profit entity from the fees

6 collected pursuant to paragraph (1) shall be used to

7 expand or enhance the services provided by such

8 center.

9 SEC. 215. PARTICIPATING PROGRAMS.

10 (a) MANDATORY PROGRAMS.—

11 (1) IN GENERAL.—Subject to the provisions of

12 paragraph (2), the following programs shall make

13 available to participants through the one-stop career

14 centers the services described in section 214(a) that

15 are applicable to such program and shall participate

16 in the operation of such centers as a party to the

17 agreement described in section 216:

18 (A) Programs authorized under title I of

19 this Act.

20 (B) Programs authorized under the Wag21 ner-Peyser Act.

22 (C) Programs authorized under chapter 41

23 of title 38, United States Code.

24 (D) Programs authorized under title II of

25 the Job Training Partnership Act.
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1 (E) Programs authorized under title V of

2 the Older Americans Act.

3 (2) ADDITIONAL CONDITIONS.—

4 (A) The programs authorized under title I

5 of this Act shall provide the services described

6 in subsections (a) and (b) of section 214

7 through the one-stop career centers, which shall

8 replace the career centers established pursuant

9 to section 118 of this Act.

10 (B) The program authorized under the

11 Wagner-Peyser Act shall provide the applicable

12 services described in subsections (a) and (b) of

13 section 214 only through the one-stop career

14 centers.

15 (C) The program authorized under chapter

16 41 of title 38, United States Code, shall make

17 available through the one-stop career centers

18 the applicable services described in subsections

19 (a) and (b) of section 214, and may, in addi20 tion, provide such services through other loca21 tions.

22 (D) The programs described under sub23 paragraphs (C), (D) and (E), of paragraph (1)

24 may, in addition to providing applicable services

25 under section 214(a) through the one-stop ca-
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1 reer centers, provide such services through

2 other locations and service providers.

3 (E) The programs described in paragraph

4 (1) may provide additional services through the

5 one-stop career centers in accordance with the

6 written agreement described in section 216.

7 (b) VOLUNTARY.—In addition to the programs de8 scribed in subsection (a), other human resource programs

9 may provide services through the one-stop career centers

10 and participate in the operation of such centers as a party

11 to the agreement described in section 216 if the workforce

12 investment board, local elected official or officials, the

13 Governor, and other participating programs approve such

14 participation. Such programs may include programs au15 thorized under—

16 (1) section 6(d)(4) of the Food Stamp Act of

17 1977 (the Food Stamp Employment and Training

18 Program);

19 (2) part B of title IV of the Job Training Part20 nership Act (Job Corps);

21 (3) programs authorized under title IV–C of the

22 Job Training Partnership Act;

23 (4) the Carl D. Perkins Vocational and Applied

24 Technology Education Act;

25 (5) the Adult Education Act;
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1 (6) the Vocational Rehabilitation Act; and

2 (7) the School-to-Work Opportunities Act.

3 SEC. 216. OPERATING AGREEMENTS.

4 (a) IN GENERAL.—The one-stop career center opera5 tors selected pursuant to section 213 shall enter into a

6 written agreement with the workforce investment board

7 and participating programs described in section 215 con8 cerning the operation of the one-stop career centers. Such

9 agreement shall be subject to the approval of the local

10 elected official and the Governor, who shall oversee the

11 development of such agreement, ensure that the agree12 ment meets the requirements of this section, and monitor

13 the implementation of such agreement.

14 (b) CONTENTS.—The written agreement required

15 under subsection (a) shall contain the following:

16 (1) The services to be provided by the centers,

17 consistent with section 214, and the extent to which

18 participating programs will provide services to pro19 gram participants through such centers, consistent

20 with section 215.

21 (2) Methods for referral of individuals by the

22 one-stop career centers to the appropriate services

23 and programs.

24 (3) The financial and nonfinancial contributions

25 to be made to the centers by each participating pro-
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1 gram, which shall be based on factors including the

2 number of participants served by the centers from

3 each participating program and the quality of serv4 ices provided.

5 (4) The financial liability of the respective par6 ties relating to the funds contributed by the partici7 pating programs.

8 (5) The financial contributions to be made for

9 the administration of the workforce investment

10 board by each participating program.

11 (6) Methods of administration, including provi12 sions for monitoring and oversight of the centers

13 and of this agreement.

14 (7) A description of how services are to be pro15 vided by the centers, such as the methods and ap16 propriate test instruments to be used to assess the

17 skill levels of individuals.

18 (8) The procedures to ensure the utilization of

19 a common local job bank.

20 (9) The procedures to be used to ensure compli21 ance with the statutory and regulatory requirements

22 of the participating programs.

23 (10) The duration of the agreement and the

24 procedures for amending the agreement during its

25 term.
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1 (11) Such other provisions, consistent with the

2 requirements of this title, that the parties deem ap3 propriate.

4 (c) ONE-STOP CAREER CENTER AND BOARD BUDG5 ETS.—The parties to the written agreement described

6 under subsection (a) shall supplement the written agree7 ment by developing an annual budget for the one-stop ca8 reer centers and the workforce investment board. The

9 budget for the board shall be subject to the approval of

10 the local elected official. The budget for the career centers

11 shall be subject to approval of the local elected official and

12 the Governor.

13 SEC. 217. QUALITY ASSURANCE SYSTEMS.

14 (a) PERFORMANCE STANDARDS.—

15 (1) IN GENERAL.—The Secretary, after con16 sultation with the Governors, workforce investment

17 boards, and one-stop career center operators, shall

18 prescribe performance standards relating separately

19 to the one-stop career centers and the workforce in20 vestment boards established under this title. Such

21 standards shall be based on factors the Secretary de22 termines are appropriate, which may include—

23 (A) in the case of one-stop career cen24 ters—
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1 (i) placement, retention and earnings

2 of participants in unsubsidized employ3 ment, including—

4 (I) wages and benefits at a speci5 fied period after termination from the

6 program,

7 (II) full-time and part-time em8 ployment, and

9 (III) comparability of wages at a

10 specified period after termination

11 from the program with wages prior to

12 participation in the program;

13 (ii) the provision of services to hard14 to-serve populations, such as individuals

15 who are basic skills deficient, school drop16 outs, individuals with disabilities, older

17 workers with obsolete skills, economically

18 disadvantaged individuals, and others who

19 face serious barriers to employment;

20 (iii) acquisition of skills pursuant to a

21 skill standards and skill certification sys22 tem endorsed by the National Skill Stand23 ards Board established under the Goals

24 2000: Educate America Act;
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1 (iv) satisfaction of participants with

2 services provided and the employment out3 comes;

4 (v) satisfaction of employers with job

5 performance of individuals placed; and

6 (vi) measures of the cost efficiency of

7 the one-stop career centers; and

8 (B) in the case of the workforce invest9 ment boards—

10 (i) job openings received from employ11 ers, including the proportion of employers

12 in the one-stop service area that list jobs

13 with the one-stop career centers;

14 (ii) job openings filled through the

15 one-stop career centers; and

16 (iii) the overall performance of the ca17 reer centers in the one-stop service area.

18 (2) ADJUSTMENTS.—Each Governor shall,

19 within parameters established by the Secretary, pre20 scribe adjustments to the performance standards

21 prescribed under paragraph (1) for the one-stop ca22 reer centers and workforce investment boards estab23 lished in the State based on—
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1 (A) specific economic, geographic and de2 mographic factors in the State and in one-stop

3 service areas within the State; and

4 (B) the characteristics of the population to

5 be served, including the demonstrated difficul6 ties in serving special populations.

7 (3) FAILURE TO MEET STANDARDS.—

8 (A) UNIFORM CRITERIA.—The Secretary

9 shall establish uniform criteria for determining

10 whether a one-stop career center or workforce

11 investment board fails to meet performance

12 standards under this section.

13 (B) TECHNICAL ASSISTANCE.—The Gov14 ernor shall provide technical assistance to one15 stop career centers and workforce investment

16 boards failing to meet performance standards

17 under the uniform criteria established under

18 paragraph (1).

19 (C) REPORT ON PERFORMANCE.—Each

20 Governor shall include in the report to the Sec21 retary the final performance standards and per22 formance for each one-stop career center and

23 workforce investment board within the State,

24 along with the technical assistance planned and

25 provided as required under subparagraph (B).
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1 (D) REVOCATION OF CHARTER.—If a one2 stop career center continues to fail to meet such

3 performance standards for two consecutive pro4 gram years, the Governor shall notify the Sec5 retary and the one-stop career center of the

6 continued failure, and the workforce investment

7 board shall—

8 (i) in the case of a one-stop career

9 center selected pursuant to the multiple

10 independent operator option, terminate the

11 operating agreement and select another en12 tity as the one-stop career center consist13 ent with the procedures described in sec14 tion 213(b); and

15 (ii) in the case of a one-stop career

16 center operated under the consortium op17 tion, terminate the operating agreement to

18 operate such center and to select another

19 entity as a one-stop career center, consist20 ent with the procedures described in sec21 tion 213(b).

22 (E) CORRECTIVE ACTION FOR BOARDS.—If

23 a workforce investment board continues to fail

24 to meet such performance standards for two

25 consecutive program years, the Governor shall
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1 notify the Secretary and the workforce invest2 ment board of the continued failure, and

3 shall—

4 (i) replace the members of such board,

5 (ii) direct the board to replace staff,

6 (iii) direct the board to replace the

7 chairperson, or

8 (iv) take such other action as the Gov9 ernor determines is appropriate.

10 (F) APPEAL.—(i) A one-stop career center

11 operator that is the subject of a revocation

12 under subparagraph (D) or a workforce invest13 ment board that is subject to sanctions under

14 subparagraph (E) may, within thirty days after

15 receiving notice thereof and pursuant to criteria

16 established by the Secretary, appeal to the

17 Golvernor to rescind such action. The Governor

18 shall issue a decision on the appeal within thir19 ty days of its receipt.

20 (ii) A one-stop career center operator or

21 workforce investment board that receives an ad22 verse decision under an appeal filed pursuant to

23 clause (i) may, within thirty days, appeal to the

24 Secretary. The Secretary shall issue a decision

25 on the appeal within thirty days of its receipt.
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1 (b) CUSTOMER FEEDBACK.—

2 (1) METHODS.—Each workforce investment

3 board shall establish methods for obtaining, on a

4 regular basis, information from individuals and em5 ployers who have received services through a one6 stop career center regarding the effectiveness and

7 quality of such services. Such methods may include

8 the use of surveys, interviews, focus groups, and

9 other techniques.

10 (2) ANALYSIS AND DISSEMINATION.—Each

11 workforce investment board shall analyze the infor12 mation obtained pursuant to paragraph (1) on a reg13 ular basis and provide a summary of such informa14 tion accompanied by such analysis to the one-stop

15 career center for use in improving the quality of

16 services provided under this title.

17 SEC. 218. STATE HUMAN RESOURCE INVESTMENT COUNCIL.

18 (a) IN GENERAL.—Each State shall establish a State

19 human resource investment council that meets the require20 ments of title VII of the Job Training Partnership Act.

21 In addition to carrying out the functions required under

22 paragraph (1)–(3) of section 701 of such Act, the Council

23 shall—
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1 (1) identify the human investment needs in the

2 State and recommend to the Governor goals for

3 meeting such needs;

4 (2) recommend to the Governor goals for the

5 development and coordination of the human resource

6 system in the State;

7 (3) prepare and recommend to the Governor a

8 strategic plan to accomplish the goals developed pur9 suant to paragraphs (2) and (3); and

10 (4) monitor the implementation of and evaluate

11 the effectiveness of the strategic plan prepared pur12 suant to paragraph (3).

13 (b) ONE-STOP FUNCTION.—In addition to the func14 tions described in subsection (a), the council shall advise

15 the Governor with respect to all aspects of the develop16 ment and implementation of the one-stop career center

17 system authorized under this title, including—

18 (1) assessing the needs of the State with regard

19 to—

20 (A) current and projected demand for

21 workers by occupation;

22 (B) skill levels of the workforce and the

23 needs of business for a skilled workforce;

24 (C) economic development needs of the

25 State; and
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1 (D) the type and availability of workforce

2 preparation and development programs in the

3 State;

4 (2) providing advice to the Governor on the des5 ignation of one-stop service areas within the State;

6 (3) developing measures of effectiveness for the

7 workforce investment boards;

8 (4) facilitating the provision through appro9 priate State agencies of grants and technical assist10 ance to workforce investment boards;

11 (5) developing a mechanism for waiving State

12 rules and provisions of law with respect to workforce

13 investment programs; and

14 (6) developing a strategy to collect and utilize

15 information on the effectiveness of workforce invest16 ment programs, and that of individual service pro17 viders, and to share such information with cus18 tomers of such programs.

19 PART B—GRANTS AND WAIVERS TO PROMOTE

20 THE DEVELOPMENT AND IMPLEMENTATION

21 OF ONE-STOP CAREER CENTER SYSTEM

22 SEC. 231. STATE PLANNING AND DEVELOPMENT GRANTS.

23 (a) PROGRAM AUTHORIZED.—The Secretary is au24 thorized to establish a program of competitive grants to
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1 States to assist in the planning and development of a com2 prehensive Statewide network of one-stop career centers.

3 (b) APPLICATION.—(1) IN GENERAL.—Any State de4 siring a grant under this section shall submit an applica5 tion to the Secretary at such time, in such manner, and

6 containing such information as the Secretary may reason7 ably require.

8 (2) CONTENTS OF APPLICATION.—The application

9 for a grant submitted pursuant to paragraph (1) shall at

10 a minimum include—

11 (A) a timetable and estimate of the amount of

12 funds needed to complete the planning and develop13 ment necessary to implement a Statewide system of

14 one-stop career centers, which includes the compo15 nents described in part A; and

16 (B) a description of the manner in which the

17 Governor, local elected officials, community and

18 business leaders, representatives of employees, rep19 resentatives of voluntary organizations, representa20 tives of the programs described in section 215, serv21 ice providers and other interested organizations and

22 individuals will work together in the planning and

23 development of a one-stop career center system.

24 (c) USE OF FUNDS.—Funds awarded under this sec25 tion may be used to carry out the following activities:
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1 (1) Identifying and establishing an appropriate

2 State structure to administer the one-stop career

3 center network within the State.

4 (2) Identifying and establishing broad-based

5 partnerships among employers, labor, education,

6 State and local government, and community-based

7 organizations to participate in the design, develop8 ment, and administration of a one-stop career center

9 system.

10 (3) Developing a plan to establish a State

11 Human Resource Investment Council and local

12 workforce investment boards.

13 (4) Developing the process for chartering one14 stop career centers.

15 (5) Supporting local one-stop career center

16 planning and development activities to provide guid17 ance in the development of a one-stop career center

18 system.

19 (6) Initiating pilot programs for testing key

20 components of State program design, such as de21 signing and testing common intake forms for partici22 pating programs.

23 (7) Analyzing State and local labor markets

24 and the operation of the current labor exchange and
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1 labor market intermediaries, to inform the design of

2 the new system.

3 (8) Analyzing current statutory and regulatory

4 impediments to the establishment of a one-stop ca5 reer center system, and preparing requests to waive

6 statutory or regulatory requirements.

7 (9) Preparing the plan required for submission

8 of an application for an Implementation Grant

9 under section 232.

10 (10) Other appropriate activities.

11 SEC. 232. STATE IMPLEMENTATION GRANTS.

12 (a) PROGRAM AUTHORIZED.—The Secretary is au13 thorized to establish a program of competitive grants to

14 States to assist in the implementation of a comprehensive

15 Statewide system of one-stop career centers.

16 (b) APPLICATION.—

17 (1) IN GENERAL.—Any State desiring a grant

18 under this section shall, with the agreement of the

19 local elected officials from the one-stop service areas

20 identified in paragraph (3)(C) that will immediately

21 begin implementation of the one-stop career center

22 system, submit an application to the Secretary at

23 such time, in such manner, and containing such in24 formation as the Secretary may reasonably require.
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1 (2) CONTENTS OF APPLICATION.—The applica2 tion for a grant submitted pursuant to paragraph

3 (1) shall, at a minimum, include—

4 (A) a plan for a comprehensive, Statewide

5 one-stop career center system that includes the

6 components described in part A;

7 (B) a request in accordance with section

8 233, if any, for one or more waivers of statu9 tory or regulatory requirements relating to the

10 programs described in section 233(c); and

11 (C) such other information as the Sec12 retary may require.

13 (3) CONTENTS OF STATE PLAN.—A State plan

14 shall—

15 (A) designate a fiscal agent to receive and

16 be accountable for implementation grant funds

17 awarded under this section and describe how

18 the State intends to manage the funds awarded

19 under this section at the State and local levels;

20 (B) identify the one-stop service areas that

21 have been designated within the State pursuant

22 to section 212(a);

23 (C) identify the one-stop service areas in

24 the State that will immediately begin implemen25 tation of the one-stop career center system, and
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1 the schedule for implementation for the remain2 ing areas of the State;

3 (D) identify the workforce development

4 programs that will participate in the one-stop

5 career centers, consistent with section 215;

6 (E) describe the method by which one-stop

7 career centers will be selected, consistent with

8 section 213;

9 (F) describe the performance standards

10 that the State intends to meet;

11 (G) describe the procedure by which the

12 Governor, local elected officials, officials admin13 istering participating programs, and other ap14 propriate officials, will collaborate in the imple15 mentation of the Statewide one-stop career cen16 ter system;

17 (H) describe the manner in which the

18 State has obtained and will continue to obtain

19 the active and continued involvement, in the

20 Statewide one-stop career center system, of em21 ployers (including small business) and other in22 terested parties such as secondary schools and

23 post-secondary educational institutions (or re24 lated agencies), business associations, employ25 ees, labor organizations or associations of such
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1 organizations, community-based organizations,

2 economic development organizations, rehabilita3 tion agencies and organizations, registered ap4 prenticeship agencies, vocational education

5 agencies, State or regional cooperative edu6 cation associations, human service agencies, and

7 education, employment and training service pro8 viders;

9 (I) describe the manner in which the State

10 will ensure equitable opportunities for job11 seekers, students, and employers in the State to

12 receive services from one-stop career centers;

13 (J) if the State has already undertaken a

14 one-stop service initiative, describe how such

15 initiative will be integrated into the Statewide

16 one-stop career center system under this title;

17 (K) describe the administrative and man18 agement systems that will be used in the State;

19 and

20 (L) describe the resources that the State

21 intends to employ in maintaining the one-stop

22 career center system when funds under this

23 title are no longer available.

24 (c) FACTORS TO BE AWARDED SPECIAL CONSIDER25 ATION.—An applicant shall be awarded special consider-
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1 ation in the evaluation of a grant application under this

2 section with respect to the following factors:

3 (1) The extent to which the one-stop service

4 areas in the State are based on labor market areas.

5 (2) The number of Federal programs that will

6 participate in the one-stop career centers.

7 (3) The extent to which the Job Opportunities

8 and Basic Skills program (commonly referred to as

9 JOBS) authorized under title IV–F of the Social Se10 curity Act and programs authorized under the Carl

11 Perkins Vocational and Applied Technology Edu12 cation Act will participate in the one-stop career

13 centers.

14 (4) The extent to which a State has already im15 plemented the components of the one-stop career

16 center system described in part A.

17 (5) The proportion of population of the State

18 that is covered by the one-stop service areas that

19 have agreed to immediately implement the one-stop

20 career center system.

21 (6) The extent to which a State demonstrates

22 a commitment to ensuring that the one-stop career

23 center operations in the State will enhance access to

24 the services described in section 214(a) through sup25 plementary methods such as kiosks based in shop-
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1 ping centers, libraries, community colleges and other

2 community organizations, and through personal tele3 phones or computer lines.

4 (d) REVIEW OF APPLICATIONS.—The Secretary shall

5 determine whether to approve the State’s plan, and, if

6 such determination is affirmative, further determine

7 whether to take one or a combination of the following ac8 tions:

9 (1) Award an implementation grant.

10 (2) Approve the State’s request, if any, for a

11 waiver in accordance with the procedures in section

12 233 of this Act.

13 (3) Inform the State of the opportunity to

14 apply for further development funds, except that fur15 ther development funds may not be awarded to a

16 State that receives an implementation grant.

17 (e) LIMITATION.—No funds provided pursuant to a

18 grant under this section may be expended to construct new

19 buildings.

20 (f) DURATION OF GRANTS.—Grants awarded under

21 this section shall be for a one year period and shall be

22 renewable for each of the two succeeding fiscal years if

23 the Secretary determines that the State is making satis24 factory progress in the implementation of the Statewide

25 one-stop career center plan.
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1 SEC. 233. WAIVER OF FEDERAL STATUTORY AND REGU2 LATORY REQUIREMENTS.

3 (a) STATE REQUEST FOR WAIVER.—A State may, at

4 any point during the development or implementation of

5 a one-stop career center system, request a waiver of one

6 or more statutory or regulatory provisions from the Sec7 retary in order to carry out the purposes of this title.

8 (b) WAIVER CRITERIA.—(1) Except as provided in

9 subsection (d), the Secretary may waive any requirement

10 of any statute listed in subsection (c)(1) or regulations

11 issued under such statute, or, with the concurrence of the

12 Director of the Office of Management and Budget, any

13 circular listed in subsection (c)(2) or regulations issued

14 under such circular, for any State that requests such a

15 waiver—

16 (A) if such State submits a plan for a com17 prehensive, Statewide one-stop career center system

18 that—

19 (i) either—

20 (I) includes the components described

21 in part A; or

22 (II) while not including all of the com23 ponents described in part A, demonstrates

24 that such one-stop system will substan25 tially achieve the objectives of this title;

26 and
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1 (ii) includes such other information as the

2 Secretary may reasonably require, such as the

3 information required under a State plan pursu4 ant to section 232(b)(3);

5 (B) if, and only to the extent that, the Sec6 retary determines that such requirement impedes the

7 ability of the State to carry out the purposes of this

8 title;

9 (C) if the State waives, or agrees to waive, simi10 lar requirements of State law; and

11 (D) if the State—

12 (i) has provided a notice and an oppor13 tunity for the State council or State Human

14 Resource Investment Council and other inter15 ested entities and individuals to comment on

16 the State’s proposal to seek a waiver; and

17 (ii) has submitted the comments required

18 pursuant to clause (i) to the Secretary.

19 (2) The Secretary shall act promptly on any request

20 submitted pursuant to paragraph (1).

21 (3) Each waiver approved pursuant to this subsection

22 shall be for a period not to exceed four years, except that

23 the Secretary may extend such period if the Secretary de24 termines that the waiver has been effective in enabling the

25 State to carry out the purposes of this title.
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1 (c) INCLUDED PROGRAMS.—

2 (1) STATUTES.—The statutes subject to the

3 waiver authority of this section are as follows:

4 (A) Title I of this Act.

5 (B) The Job Training Partnership Act.

6 (C) The Wagner-Peyser Act.

7 (D) Title V of the Older Americans Act.

8 (E) Chapter 41 of title 38, United States

9 Code.

10 (2) CIRCULARS AND RELATED REGULATIONS.—

11 The following circulars promulgated by the Office of

12 Management and Budget subject to the waiver au13 thority of this section are as follows:

14 (A) A–87, relating to cost principles for

15 State and local governments.

16 (B) A–102, relating to grants and coopera17 tive agreements with State and local govern18 ments.

19 (C) A–122, relating to non-profit organiza20 tions.

21 (D) 29 CFR 97, uniform administrative

22 regulations for grants and cooperative agree23 ments to State and local governments.
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1 (d) WAIVERS NOT AUTHORIZED.—The Secretary of

2 Labor may not waive any statutory or regulatory require3 ment of the programs listed in subsection (b) relating to—

4 (1) the basic purposes or goals of the affected

5 programs;

6 (2) maintenance of effort;

7 (3) the formula allocation of funds under the

8 affected programs;

9 (4) the eligibility of an individual for participa10 tion in the affected programs;

11 (5) public health or safety, labor standards,

12 civil rights, occupational safety and health, or envi13 ronmental protection; and

14 (6) prohibitions or restrictions relating to the

15 construction of buildings or facilities.

16 (e) TERMINATION OF WAIVERS.—The Secretary shall

17 periodically review the performance of any State for which

18 the Secretary has granted a waiver and shall terminate

19 the waiver under this section if the Secretary determines

20 that the performance of the State affected by the waiver

21 has been inadequate to justify a continuation of the waiv22 er, or the State fails to waive similar requirements of State

23 law as required or agreed to in accord with subsection

24 (b)(1)(C).
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1 (f) PLAN FOR GENERAL WAIVER OF CIRCULAR PRO2 VISIONS.—

3 (1) DEVELOPMENT OF PLAN.—If the Secretary

4 determines there is sufficient information available,

5 based on applications received pursuant to this sec6 tion or other information, to identify provisions of

7 the circulars or related regulations listed in sub8 section (c)(2) that would consistently impede the im9 plementation of a one-stop career center system, the

10 Secretary shall submit a plan to the Director of the

11 Office of Management and Budget to authorize the

12 Secretary to grant a general waiver of such provi13 sions for areas implementing one-stop career center

14 systems.

15 (2) APPROVAL OF PLAN.—The Director of the

16 Office of Management and Budget may approve the

17 plan submitted pursuant to paragraph (1) and au18 thorize the Secretary to grant general waivers of the

19 provisions of the circulars and related regulations in

20 accordance with such plan if the Director determines

21 such plan would not jeopardize the integrity of Fed22 eral funds and would be consistent with the objec23 tives of this title.

24 SEC. 234. POOLING OF ADMINISTRATIVE RESOURCES.

25 (a) SUBMISSION OF PLAN.—
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1 (1) IN GENERAL.—At any point in the imple2 mentation of a one-stop career center system, a

3 State may, on behalf of one or more one-stop service

4 areas in the State, submit a plan to the Secretary

5 for the pooling of administrative funds available to

6 such area under two or more of the programs de7 scribed in section 215(a).

8 (2) COMPONENTS OF POOLING.—Under a plan

9 submitted pursuant to paragraph (1), each partici10 pating program described in section 215(a) may pro11 pose to transfer administrative funds to the one-stop

12 career center system and to allocate the amount

13 transferred to the costs of administration under such

14 program at the time of such transfer. Pursuant to

15 such plan, further allocation of the expenditure of

16 such funds to the participating program shall not be

17 required subsequent to the transfer of the funds to

18 the one-stop career center system. Administrative

19 funds that are transferred under such plan shall

20 only be expended for the costs of administering al21 lowable activities under the one-stop career center

22 system.

23 (b) APPROVAL OF PLAN.—Notwithstanding section

24 1301 of title 31, United States Code, or any other provi25 sion of law, the Secretary may approve a plan for the pool-
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1 ing of administrative funds submitted pursuant to sub2 section (a) if the Secretary determines such plan would

3 not jeopardize the administration of the participating pro4 grams transferring such funds and would facilitate the im5 plementation of the one-stop career center system. After

6 approval of such plan, the Secretary shall regularly review

7 the performance of the one-stop service areas operating

8 under such plans and shall rescind such approval if the

9 Secretary determines that the performance of the one-stop

10 service area has been inadequate to justify continuation

11 of the plan or there has been a significant adverse effect

12 on the participating programs.

13 PART C—ADDITIONAL ACTIVITIES IN SUPPORT

14 OF ONE-STOP CAREER CENTER SYSTEMS

15 SEC. 251. CUSTOMER SERVICE COMPACT.

16 The Secretary shall establish a process with each

17 State implementing a one-stop career center system under

18 this title, which shall include an annual meeting, to pro19 mote the development of a customer service compact

20 among the parties administering such system. Such com21 pact shall include an informal agreement between the Sec22 retary, Governor, each workforce investment board, and

23 each one-stop career center relating to—

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

25 the administration of the system;
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1 (2) the respective roles and responsibilities of

2 each party in enhancing the provision of services to

3 participants, including ensuring that such services

4 are tailored to the particular needs of participants in

5 each local area;

6 (3) methods for ensuring that the satisfaction

7 of participants with the services received is a pri8 mary consideration in the administration of the sys9 tem; and

10 (4) such other matters as the parties determine

11 are appropriate.

12 SEC. 252. ADDITIONAL STATE RESPONSIBILITIES.

13 (a) IN GENERAL.—Each State implementing a one14 stop career center system under this title shall be respon15 sible for developing and operating administrative and

16 management systems that promote the effective operation

17 of the one-stop career center system.

18 (b) MONITORING.—Each State implementing a one19 stop career center system under this title shall monitor

20 the compliance of workforce investment boards within the

21 State with the requirements of this title.

22 (c) TECHNICAL ASSISTANCE.—Each State imple23 menting a one-stop career center system under this title

24 shall provide such technical assistance as deemed nec-
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1 essary to assist the workforce investment boards to carry

2 out their responsibilities under this title.

3 SEC. 253. ADDITIONAL FEDERAL RESPONSIBILITIES.

4 (a) OVERSIGHT.—The Secretary is authorized to

5 monitor all recipients of financial assistance under this

6 title to determine whether they are complying with the

7 provisions of this title.

8 (b) CAPACITY BUILDING AND TECHNICAL ASSIST9 ANCE.—The Secretary shall provide staff training and

10 technical assistance to States, workforce investment

11 boards, one-stop career centers, communities, business

12 and labor organizations, service providers, industry con13 sortia, and other entities, to enhance their capacity to de14 velop and implement effective one-stop career center sys15 tems. Such activities shall be integrated with the activities

16 of the Capacity Building and Information Dissemination

17 Network established under section 453 of the Job Train18 ing Partnership Act.

19 (c) NATIONAL LOGO.—The Secretary shall develop a

20 national logo and name for the purposes of identifying all

21 one-stop career centers as part of a nationwide workforce

22 security system. The purpose of this national identification

23 shall be to enable individuals to more readily identify and

24 access one-stop career centers in any State in any location.

25 (d) EVALUATION.—
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1 (1) IN GENERAL.—The Secretary shall provide

2 for the continuing evaluation of programs conducted

3 under this title, including the cost-effectiveness of

4 programs in achieving the purposes of this title.

5 (2) TECHNIQUES.—

6 (A) METHODS.—Evaluations conducted

7 under paragraph (1) shall utilize recognized

8 statistical methods and techniques of the behav9 ioral and social sciences, including methodolo10 gies that control for self-selection, where fea11 sible.

12 (B) ANALYSIS.—Such evaluations may in13 clude cost benefit analyses of programs, and

14 analyses of the impact of the programs on par15 ticipants and the community, the extent to

16 which programs meet the needs of various de17 mographic groups, and the effectiveness of the

18 delivery systems used by the various programs.

19 PART D—EFFECTIVE DATE

20 SEC. 271. EFFECTIVE DATE.

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

22 (b), the provisions of this title shall take effect on July

23 1, 1995.
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1 (b) PERFORMANCE STANDARDS.—The performance

2 standards established pursuant to section 217(a) shall

3 take effect on July 1, 1996.

4 TITLE III—NATIONAL LABOR MARKET

5 INFORMATION SYSTEM

6 SEC. 301. PURPOSE.

7 The purpose of this title is to provide for the develop8 ment of a national labor market information system that

9 will provide locally-based, accurate, up-to-date, easily ac10 cessible, user-friendly labor market information, includ11 ing—

12 (1) comprehensive information on job openings,

13 labor supply, occupational trends, current and pro14 jected wage rates by occupation, skill requirements,

15 and the location of and performance of programs de16 signed to provide requisite skills; and

17 (2) labor market data necessary to assist public

18 officials, economic development planners, education

19 planners, and public and private training entities in

20 the effective allocation of resources.

21 SEC. 302. NATIONAL STRATEGY.

22 (a) IN GENERAL.—The Secretary shall develop, in co23 ordination with other Federal, State and local entities, a

24 strategy to establish a nationwide system of local labor

25 market information that accomplishes the purposes de-
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1 scribed in section 301 and carries out the activities de2 scribed in sections 303 and 304. In addition, such strategy

3 shall be designed to fulfill the labor market information

4 requirements of the Job Training Partnership Act, title

5 I of this Act, the Wagner-Peyser Act, the School-to-Work

6 Opportunities Act, the Carl Perkins Vocational and Ap7 plied Technology Act, and other appropriate Federal pro8 grams.

9 (b) IMPLEMENTATION.—In implementing the strat10 egy described in subsection (a), the Secretary is authorized

11 to enter into contracts and intergovernmental cooperative

12 agreements, award grants, and foster the creation of

13 public-private partnerships, using funds authorized under

14 this title and funds otherwise available for such purposes.

15 In addition, the Secretary may conduct research and dem16 onstration projects to assist in such implementation.

17 SEC. 303. COMPONENTS OF SYSTEM.

18 (a) IN GENERAL.—The Secretary, in cooperation

19 with Federal, State and local entities, and public-private

20 partnerships, shall develop a national labor market infor21 mation system that makes available the following informa22 tion:

23 (1) Information from both public and private

24 sources on the local economy, including current em-
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1 ployment opportunities and trends by industry and

2 occupation.

3 (2) Automated listings of job openings and job

4 candidates in the local, state, and national labor

5 market.

6 (3) Growth projections by industry and growth

7 and replacement need projections by occupation and

8 occupational cluster for national, State and local

9 labor markets.

10 (4) Current supply of labor available with spe11 cific occupational skills and experience including cur12 rent workers, job seekers and training completers.

13 (5) Automated screening systems to permit easy

14 determination of candidate eligibility for funding and

15 other assistance in job training, job search, income

16 support, supportive services and other reemployment

17 services.

18 (6) Consumer reports on local education and

19 training providers including student satisfaction with

20 programs, employer satisfaction with graduates,

21 placement rates, wages at placement, and other ele22 ments of program quality.

23 (7) Results of customer satisfaction measures

24 for the career centers and one-stop career centers

25 and other providers of reemployment services.
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1 (8) National, State and substate profiles of in2 dustries, including skill requirements, general wage

3 and benefit information, and typical distributions of

4 occupations within the industry.

5 (9) Profiles of industries in a local labor market

6 including nature of the work performed, skill and ex7 perience requirements, specific occupations, wage,

8 hour and benefit information, pattern of hiring.

9 (10) Automated occupational and career infor10 mation and exploration systems, which incorporate

11 local labor market information, employer or industry

12 profiles, listings of education, training and other re13 employment service providers including program

14 quality and customer satisfaction data, and available

15 automated listings of current openings.

16 (b) TECHNICAL STANDARDS.—The Secretary shall

17 promulgate standards necessary to promote efficient ex18 change of information between the local, State and na19 tional levels, including such standards as may be required

20 to ensure that data are comparable. Such standards shall

21 be designed to ensure that there is universal access to

22 local, State and national data. In issuing such technical

23 standards, the Secretary shall meet the requirements of

24 chapter 35 of title 44, United States Code, and insure co-
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1 ordination with other appropriate Federal standards es2 tablished by the Bureau of Labor Statistics.

3 (c) CONSUMER REPORTS.—The Secretary, in con4 sultation with the Secretary of Education and other appro5 priate Federal agencies, and State and local governments,

6 shall set standards for the required reports and create a

7 mechanism for collection and dissemination of the

8 consumer reports described in subsection (a)(6).

9 (d) EVALUATION.—The Secretary shall provide for

10 the evaluation of the procedures, products and services

11 under this title, including their cost effectiveness and the

12 level of customer satisfaction. Such evaluations may in13 clude analyses of the precision of estimates produced or

14 collected under this title; examination of the uses of the

15 data by job seekers, employers, educators, career coun16 selors, public and private training providers, economic de17 velopment planners, and public agencies and institutions;

18 the appropriateness of such uses; and the relative costs

19 and benefits of the data.

20 SEC. 304. COORDINATION.

21 To ensure the appropriate coordination and integra22 tion of labor market information services nationwide, the

23 Secretary shall—

24 (1) coordinate the activities of Federal agencies

25 responsible for the collection and dissemination of
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1 labor market information at the national, State and

2 local level; and

3 (2) ensure the appropriate dissemination of re4 sults from research studies and demonstration

5 projects, feedback from surveys of customer satisfac6 tion, education and training provider performance

7 data, and other relevant information that promotes

8 improvement in the quality of labor market informa9 tion.

10 SEC. 305. EFFECTIVE DATE.

11 The provisions of this title shall take effect on July

12 1, 1995.

13 TITLE IV—REINVENTION LABS FOR JOB

14 TRAINING FOR THE ECONOMICALLY

15 DISADVANTAGED

16 SEC. 401. ESTABLISHMENT OF LABS.

17 Title II of the Job Training Partnership Act is

18 amended by adding at the end thereof the following new

19 part:

20 ‘‘PART D—REINVENTION LABS

21 ‘‘SEC. 281. PURPOSE.

22 ‘‘The purpose of this part is to—

23 ‘‘(1) encourage innovative program designs to

24 enhance the provision of services to and improve
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1 labor market outcomes for economically disadvan2 taged youth and adults;

3 ‘‘(2) develop, through the initiative and partici4 pation of service delivery areas and States, knowl5 edge relating to effective approaches to providing

6 employment and training to the economically dis7 advantaged that may be used to benefit the pro8 grams conducted under this title; and

9 ‘‘(3) provide service delivery areas with in10 creased flexibility in the operation of job training

11 programs in exchange for higher levels of account12 ability for results.

13 ‘‘SEC. 282. APPLICATION FOR WAIVER OF FEDERAL RE14 QUIREMENTS.

15 ‘‘(a) IN GENERAL.—Any service delivery area or con16 sortia of service delivery areas desiring to obtain a waiver

17 of Federal statutory or regulatory requirements relating

18 to the programs conducted under parts A, B, or C of this

19 title shall submit, jointly with the Governor, an application

20 for such waiver at such time, in such manner, and contain21 ing such information as the Secretary may reasonably re22 quire.

23 ‘‘(b) CONTENTS OF APPLICATION.—The application

24 for a waiver submitted pursuant to subsection (b) shall

25 include—
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1 ‘‘(1) a plan for conducting a program or pro2 grams authorized under this title incorporating inno3 vative administrative, service delivery, and other pro4 gram design components;

5 ‘‘(2) the measurable goals and outcomes to be

6 achieved by the program;

7 ‘‘(3) a description of the statutory or regulatory

8 requirements under titles I and II of this Act that

9 would be waived and how such requirements would

10 impede the implementation of the plan described in

11 paragraph (1);

12 ‘‘(4) assurances that the service delivery area

13 and the State will participate in a rigorous evalua14 tion to determine whether the goals and outcomes

15 described in paragraph (2) have been achieved; and

16 ‘‘(5) such other components and information as

17 the Secretary determines are appropriate.

18 ‘‘SEC. 283. WAIVERS AUTHORIZED.

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

20 (b), the Secretary may, pursuant to an application submit21 ted in accordance with section 282, waive statutory or reg22 ulatory requirements relating to title I and parts A, B,

23 and C of this title if—

24 ‘‘(1) the Secretary determines that such re25 quirements would impede the ability of the service
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1 delivery area to carry out the plan described in sec2 tion 282(b)(1) and achieving the outcomes described

3 in the plan;

4 ‘‘(2) the service delivery area and the State—

5 ‘‘(A) have provided a notice and oppor6 tunity for interested entities and individuals in

7 the State to comment on the application; and

8 ‘‘(B) have submitted to the Secretary the

9 comments received pursuant to subparagraph

10 (A); and

11 ‘‘(3) the Secretary approves the plan described

12 in the application.

13 ‘‘(b) WAIVERS NOT AUTHORIZED.—The Secretary

14 may not waive any statutory or regulatory requirement re15 lating to title I or parts A, B, or C of this title regarding—

16 ‘‘(1) the basic purposes or goals of the affected

17 programs;

18 ‘‘(2) the formula allocation of funds;

19 ‘‘(3) the eligibility for services as described in

20 sections 203, 254(b) and 263 (except for subsection

21 (f));

22 ‘‘(4) public health or safety, labor standards,

23 civil rights, occupational safety or health, or environ24 mental protection; or
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1 ‘‘(5) prohibitions or restrictions relating to con2 struction of buildings or facilities.

3 ‘‘(c) ADDITIONAL LIMITATIONS.—

4 ‘‘(1) NUMBER OF AREAS PARTICIPATING.—The

5 Secretary may approve not more than seventy-five

6 applications nationwide to conduct the program de7 scribed under this part.

8 ‘‘(2) DURATION OF WAIVERS.—Each waiver

9 provided pursuant to this part shall be for a period

10 of not more than two years, except that the Sec11 retary may extend such period if the Secretary de12 termines that the waiver has been effective in ena13 bling the service delivery area to carry out the pur14 poses of this Act.

15 ‘‘(3) TERMINATION OF WAIVERS.—The Sec16 retary shall periodically review the performance of

17 any service delivery area for which the Secretary has

18 granted a waiver and shall terminate the waiver

19 under this section if the Secretary determines that

20 the performance of the service delivery area affected

21 by the waiver has been inadequate to justify a con22 tinuation of the waiver.

23 ‘‘(4) SUNSET.—No waivers may be approved or

24 remain in effect under this part after the date that
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1 is four years after the date of enactment of the Re2 employment and Training Act of 1994.

3 ‘‘SEC. 284. TECHNICAL ASSISTANCE, EVALUATION AND RE4 PORT.

5 ‘‘(a) TECHNICAL ASSISTANCE.—The Secretary may

6 provide appropriate technical assistance to service delivery

7 areas, States, and service providers in the development

8 and implementation of programs under this part.

9 ‘‘(b) EVALUATION.—

10 ‘‘(1) IN GENERAL.—The Secretary shall provide

11 for the continuing evaluation of programs conducted

12 under this part, including the cost-effectiveness of

13 programs in achieving the purpose of this part.

14 ‘‘(2) TECHNIQUES.—

15 ‘‘(A) METHODS.—Evaluations conducted

16 under paragraph (1) shall utilize recognized

17 statistical methods and techniques of the behav18 ioral and social sciences, including methodolo19 gies that control for self-selection, where

20 indicated.

21 ‘‘(B) ANALYSIS.—Such evaluations may in22 clude cost benefit analyses of programs, and

23 analyses of the impact of the programs on par24 ticipants and the community, the extent to

25 which programs meet the needs of various de-
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1 mographic groups, and the effectiveness of the

2 delivery systems used by the various programs.

3 ‘‘(c) REPORT.—Not later than five years after the

4 date of enactment of the Reemployment and Training Act

5 of 1994, the Secretary shall submit a report to the Con6 gress relating to the evaluation conducted pursuant to

7 subsection (a) and containing such recommendations as

8 the Secretary determines are appropriate.’’.

9 SEC. 402. MODIFICATION OF TUITION DEFINITION.

10 Subparagraph (B) of section 141(d)(3) of the Job

11 Training Partnership Act is amended to read as follows:

12 ‘‘(B) Tuition charges for training or education

13 provided by an educational institution, including an

14 institution of higher education (as defined in section

15 1201(a) of the Higher Education Act of 1965), a

16 proprietary institution of higher education (as de17 fined in section 481(b) of such Act), and a post18 secondary vocational institution (as defined in sec19 tion 481(c) of such Act) that are not more than the

20 charges for such training or education made avail21 able to the general public, do not require a break22 down of cost components.’’.

23 SEC. 403. EFFECTIVE DATE AND SUNSET.

24 (a) REINVENTION LAB.—The provisions of section

25 401, and the amendments made by such section, shall take
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1 effect on the date of enactment of this Act and shall termi2 nate on the date that is five years after the date of enact3 ment of this Act.

4 (b) TUITION DEFINITION.—The provisions of section

5 402 and the amendments made by such section, shall take

6 effect on the date of enactment of this Act.

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